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IN THIS ISSUE: MEAT PRODUCTS INSPECTION ESSENTIALS

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OLAM: Commodity trader

ups food processing in Africa

AFMASS Conference & Expo 2017 Brochure World’s Top 50 Food & Beverage Brands 2016 Brochure

DAIRY BUSINESS AFRICA

Focus on Drinking Yoghurt Basics of Sugar Reduction in Dairy Products

Executive Interview:

Suresh Kanotra CEO, Sheffield Africa

VOLUME 5 • ISSUE 2 • NO. 23 • ISSN 2307-3535

FOOD NUTRITION & HEALTH

The Burden of Diabetes in Africa A FOODWORLD MEDIA PUBLICATION


JOIN US AS WE CELEBRATE THOSE WHO HAVE SHAPED KENYA’S FOOD, BEVERAGE, MILLING AND FEED INDUSTRY

DATE:

APRIL 26, 2017 • 7:00 PM VENUE:

SOUTHERN SUN MAYFAIR HOTEL, NAIROBI, KENYA The inaugural edition of the Food Business Africa Industry Excellence Awards is around the corner. This award is focused on boosting excellence in the food, beverage, milling and feed industry in the region. The Awards ceremony gives the industry the opportunity to celebrate its achievements, network with peers and in the process, inspire the next wave of investors, researchers, managers and other leaders. During this year’s ceremony, set to take place during the AFMASS Conference & Expo that is taking place at Visa Oshwal Centre in Westlands, Nairobi, Kenya on April 25-27, 2017, we shall be celebrating the achievements of some of the industry’s most outstanding leaders in the Industry Champions Awards category. Don’t miss to take your seat at this industry-changing event. Visit the website: www.awards.foodbusinessafrica.com to find how to participate ORGANISED BY

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RESEARCH & DEVELOPMENT MADE IN ITALY


CONTENTS

OLAM: Commodity trader

ups food processing in Africa

EDITORIAL 4

Welcome to AFMASS 2017 – the region’s Market Place of IDEASTM for the food, beverage, milling, feed, hospitality and foodservice industry

EVENT PREVIEW 6

www.foodbusinessafrica.com Volume 5 Issue 2, No.23 • ISSN 2307-3535

FOUNDER & PUBLISHER Francis Juma ADVERTISING & SUBSCRIPTION: Mary Nzioka • Elly Okutoyi DESIGN & LAYOUT Cynthia Odero

FoodWorld Media P.O Box 1874-00621, Village Market, Nairobi Kenya Tel: +254 20 8155022, Cell: +254 725 343932 info@foodworldmedia.net www.foodworldmedia.net

RELATED PUBLICATIONS

Welcome to the 2017 edition of AFMASS Conference & Expo - the Market Place of IdeasTM for the food & beverage, milling & feed and hospitality & foodservice industry in sub-Saharan Africa.

INTERNATIONAL NEWS 10

Coca-Cola names Executive team as Quincey is set to take over in May

13

Sugar heavy brands suffer brand value decline as consumer attitude take toll

14

Consumption of bottled water overtakes soft drinks in the US for the first time

www.foodbusinessafrica.com www.foodbusinessafrica.com

AFRICAN NEWS 16

Nestle Ghana celebrates 60 years in the country

18

Kenya’s leading confectioner sells minority stake to South African, French PE

www.industrybusinessafrica.com

funds 28

Olam expands West African biscuit market capacity

AFMASS 2017 19

A profile of the Sponsors & Exhibitors at AFMASS 2017 Conference & Expo

EXECUTIVE INTERVIEW 32

Suresh Kanotra - CEO, Sheffield Africa

FOOD SAFETY 33

Meat inspection options

COMPANY FOCUS 36

Olam in Africa

COVER PHOTO: Olam’s new milling plant in Port Harcourt, Nigeria 2

MAR/APR 2017 | FOOD BUSINESS AFRICA

SUBSCRIPTION Contact: info@foodworldmedia.net Annual Subscription: Kenya: KSh 2900 (VAT inclusive); Africa: US$ 70; Rest of World: US$ 90 (including postage) TWO YEARS: Kenya: KSh 5600 (VAT inclusive); Africa: US$ 130; Rest of World: US$ 170 (including postage) Food Business Africa (ISSN 2307-3535) is published 6 times a year by FoodWorld Media Ltd. The magazine is distributed for free to food and beverage processing companies in Africa. The magazine is available through subscription for the other stakeholders in the food chain, including suppliers to the sector. Postage is paid at Nairobi, Kenya. Send address changes to FoodWorld Media Ltd by phone or email. Copyright 2015. Reproduction of the whole or any part of the contents without written permission from the editor is prohibited. All information is published in good faith. While care is taken to prevent inaccuracies, the publishers accept no liability for any errors or omissions or for the consequences of any action taken on the basis of information published.

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EDITORIAL

Welcome to AFMASS 2017 – the region’s Market Place of IDEASTM for the food, beverage, milling, feed, hospitality and foodservice industry

A new business friendly venue, two conference streams and award ceremony make the 2017 edition of AFMASS a must attend by all

THE FOOD BUSINESS AFRICA INDUSTRY EXCELLENCE AWARDS IS SET FOR APRIL 26, 2017 AT SOUTHERN SUN HOTEL IN NAIROBI, KENYA.

I

t is another year and another AFMASS!! We are glad to inform you that the preparations for the AFMASS 2017 are done and we look forward to receiving you at Visa Oshwal Centre in Westlands, Nairobi, Kenya on April 25-27, 2017. AFMASS has gone through a huge transformation from the 2015 version that was held at Strathmore University – when the focus was on food safety - to one of the region’s most promising conferences and exhibitions for the industry covering processing, packaging and food safety. The name AFMASS has become synonymous with the food and beverage sector – and this year, we have expanded the scope to include the very vital milling and feed and hospitality and food service sectors – expanding the scope and coverage of this premium industry event. Perhaps you could be wondering if AFMASS is the event for you and what makes AFMASS a unique event for the industry. What really makes AFMASS unique and which draws in the industry players in droves are the absorbing, industry-focused and industry-led conference sessions that bring out the key regulatory, investment, technology, management and systems trends that are vital for every key decision maker in the industry. And then of course, with a growing list of international and regional suppliers of equipment, packaging, ingredients and chemicals, food safety and post-harvest systems and industry services, AFMASS is an important event to trade and source for the latest industry solutions. Want to know the latest processing, packaging and food safety technology trends? Seeking innovative ways to reduce formulation costs? Looking for partners who can help you grow your market in sub-Saharan Africa? Stuck with your marketing strategy? AFMASS could be the place to unlock your options. Awards ceremony joins AFMASS 2017 This year’s AFMASS has a number of changes and improvements, chief of which is addition of the African Grains, Milling & Feed (AFGRAINS) Conference on

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MAR/APR 2017 | FOOD BUSINESS AFRICA

Day two of the event. AFGRAINS is the first standalone conference for the grains industry in Africa, and is set to be a key part of the industry going forward. Covering such vital topics as commodity markets, processing and formulations, nutrition and food security, AFGRAINS has already found a strong following from the milling and feed sector, and will be a revelation at AFMASS 2017. The other addition this year is the launch of an awards ceremony at AFMASS. The Food Business Africa Industry Excellence Awards is a key part of the drive to infuse excellence in the sector, and to encourage the next level of innovators and industry leaders in the region’s industry. Taking place at the star-studded dinner function on Day two of AFMASS, this year we shall be giving out life-time achievement awards to a number of industry leaders, academicians and researchers, NGO leaders and industry managers from the scope of he food and feed industry.

Industry players get free access to conference In order to encourage the attendance by a wider scope of the industries, the organisers of AFMASS 2017 have worked with a number of sponsors and exhibitors to enable the attendance of the conference and expo for free by the key decision makers from the industry. With unrestricted access to the conference, meals and other functions, we believe that this will make AFMASS the ultimate learning, trading and networking event for the industry if barriers to access the event are removed. We have therefore provided each company with a number of free slots for the event, which they can use to provide exposure to a number of their key decision makers into the event. If you have nit received your delegate nomination forms, please don’t hesitate to contact us We wish you a good read and a welcome to AFMASS 2017. FOODBUSINESSAFRICA.COM


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NEW VENUE, EXPANDED PROGRAMME Welcome to the 2017 edition of AFMASS Conference & Expo - the Market Place of IdeasTM for the food & beverage, milling & feed and hospitality & foodservice industry in sub-Saharan Africa.

W

ith a new venue, expanded programme and a host of activities during the 3 days of the event, AFMASS Conference & Expo 2017 is set to break the records – and continue to change the nature of industry focused events in the region. AFMASS Conference & Expo is attended by the key decision makers from the industry in the sub-Saharan Africa region; regional and international suppliers; Government regulatory officials; and NGOs involved in food and feed industry supply chain from sub-Saharan Africa and beyond. Trade, network and learn AFMASS Conference & Expo is the regional trade event that brings together stakeholders in the industry in sub-Saharan Africa to trade, network and learn the latest processing, packaging and food safety technologies and practices. AFMASS Conference & Expo is well appreciated by past attendees for its blend of industry-defining conference sessions that give delegates the opportunity to be exposed to the latest trends and technologies, and critically, to grab ideas that they can implement when they get back to their businesses. The event is also appreciated for its leading array of technologies on display for the food & beverage, milling & feed and hospitality & foodservice industry – enabling attendees to experience first hand solutions that can

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MAR/APR 2017 | FOOD BUSINESS AFRICA

improve their processing, packaging and food safety operations back at their factories and facilities. Finally, AFMASS Conference & Expo is the place where former workmates and schoolmates meet. No event in the region’s food & beverage, milling & feed and hospitality & foodservice industry brings together colleagues and industry leaders like AFMASS Conference & Expo. These networking opportunities are cherished long after the event ends, rekindling and forming new partnerships.

a host restaurants, be they high end options or local delicacy themed ones, are available within walking distance of the conference and expo venue. Further, a number of shopping malls and shops are available to cater for you, including Westgate, Sarit Centre and The Mall. In terms of business, Oshwal Centre is ideal for its cool ambience, cleanliness and charm. At the conference and expo, the organisers assure all of parking and security that cannot be matched by any other venue in the region.

New venue, excellent services After two year’s of hosting the event at premier academic and Government institutions, AFMASS Conference & Expo 2017 is set to make its debut at Visa Oshwal Centre, deep within the commercial suburb of Westlands in Nairobi, Kenya. With such a prime location, AFMASS Conference & Expo 2017 has broken new ground as far as the food & beverage, milling & feed and hospitality and foodservice industry is concerned due to the mindblowing options available for the event’s sponsor, exhibitor, delegate and visitor as concerns the choice of accommodation, food, travel, shopping and fun activities due to Westland’s ‘centre of business and shopping’ credentials. A host of international and local hotels call Westlands ‘home’, including Southern Sun, Sankara, Park Inn and Kempinski; and

Nairobi - the gateway into sub-Saharan Africa Driven by its location in Nairobi, Kenya, the gateway to sub-Saharan Africa’s fast growing and changing food, feed and hospitality industry, AFMASS Conference & Expo provides a one-stop shop to learn, experience and take advantage of Africa’s rising agro and food and hospitality economy in one venue and event. Region’s first grains-focused conference stream For the first time, the African Grains, Milling & Feed (AFGRAINS) Conference stream has been added to meet the specific needs of the grains, milling, baking and feed industry in Africa. AFGRAINS becomes the first regular grains-focused conference that covers the vital and growing grains industry - covering FOODBUSINESSAFRICA.COM


Welcome to AFMASS 2017 - The Market Place of IDEASTM # I N V E S T M E N T S I D E A S # I N N O VAT I O N S I D E A S # P R O C E S S I N G I D E A S #PACKAGINGIDEAS #FOODSAFETYIDEAS the entire cereals, oilseeds and other grains. The AFGRAINS conference stream is in addition to the AFMASS Conference that focuses on the dairy, beverages, fruit and veg, meat, sugar and candy, and other processed food products, plus the foodservice sector. At the AFMASS and AFGRAINS Conferences, leading opinion leaders shall discuss the latest technologies, practices, trends and regulations in Africa’s food, feed and hospitality industry, with topics ranging from nutrition, processing, packaging, food and feed safety, sustainability, post-harvest management and commodity markets, among others. Industry-focused Exhibition Hall The Exhibition Hall, which is in close proximity to the conference halls, provides sponsors and exhibitors with the right platform to interact with delegates, visitors and other stakeholders at the event, enabling

trade to thrive as the event rolls on. Delegates at the conferences have at least 4 hours per day to spend time at the Expo Hall, including during breakfast, health breaks and lunch breaks - ensuring that they do not miss on going through the Expo Hall to meet suppliers of key inputs, equipment, packaging and other industry solutions. At the exhibition floor, visitors and delegates will have a unique opportunity to meet local, regional and international suppliers of the latest: • Post-harvest, processing and packaging solutions; • Laboratory equipment and solutions; • Ingredients and chemicals; • Packaging materials and supplies; • Food and beverage products; • Essential services that meet the unique needs of the food, feed and hospitality industry in Africa.

Industry leaders get recognized and rewarded The 2017 edition will have an extra addition to it, ensuring that AFMASS continues to build its profile as the ultimate industry trade show and conference. The Food Business Africa Industry Excellence Awards will be held during the event, with the 2017 edition, the first of these annual awards, celebrating those who have made critical contributions to the food, beverages, milling, foodservice and feed industry in the region in the Industry Champions awards category, before expanding the award ceremony from the 2018 version of AFMASS Conference & Exhibition. The invite/paid only evening ceremony, takes place at the Southern Sun Hotel in Westlands, Nairobi on April 26, 2017 from 7.00 pm

KEY FIGURES AT AFMASS 2017

2

NUMBER OF CONFERENCE STREAMS

2,000+ FOODBUSINESSAFRICA.COM

TRADE VISITORS AT THE EXPO OVER 3 DAYS

3

AREAS OF FOCUS: PROCESSING, PACKAGING & FOOD SAFETY

400+

NUMBER OF DELEGATES EXPECTED AT THE CONFERENCE PER DAY FOOD BUSINESS AFRICA | MAR/APR 2017

7


KENYA, NUTRITION, HEALTH & WELLNESS EXHIBITION NAIROBI EDITION NOVEMBER 4-5, 2017 THE HUB MALL, KAREN, NAIROBI, KENYA www.wellness.foodworldmedia.net


Why the Kenya Nutrition, Health & Wellness Exhibitions? The Kenya Nutrition, Health & Wellness Exhibitions are a range of weekend consumer expos and seminars that are targeted at creating and improving the consumer awareness on healthy living and general well being. The expos are held over the weekend to ensure the attendance of the entire family. The goals of the Kenya Nutrition, Health & Wellness Exhibitions are: • Provide a forum for food and beverage processors, distributors and importers to interact directly with consumers, with a goal of informing the consumers of the unique features and benefits of their products in relation to healthy eating and living; • Provide a forum for providers of health, personal and home hygiene products to interact directly with consumers • Bring together medical, nutritional, healthcare and wellness experts and practitioners face to face with consumers to discuss disease management, lifestyle choices, diet management, wellness goals and practices with a view to imparting the right knowledge to the consumers; • Provide a platform for a number of industry associations and corporates to interact with consumers and the community, with a view to reaching out to them with their services

Exhibition plus seminar focused on nutrition, health and wellness The venues for the expos are family-friendly, with facilities to cater for the young and the older generations, with some fun mixed in, to enable networking and learning in an interesting atmosphere. These expos provide manufacturers, retailers and distributors of food and beverage products, healthcare and wellness products and service providers with a great opportunity to showcase, demonstrate and discuss with consumers the unique features and benefits of their products and services. FoodWorld Media Ltd P.O. Box 1874-00621 Village Market, Nairobi, Kenya Tel: +254 20 8155022; +254 725 343932 info@foodworldmedia.net Please log onto the event website for more information: www.wellness.foodworldmedia.net


NEWS | INTERNATIONAL INNOVATIONS

Coca-Cola names Executive team as Quincey is set to take over in May USA – Coca-Cola’s current President and COO, James Quincey, who takes over on May 1 as CEO of the beverage giant has announced major changes at the top levels of the beverage giant, with a ‘clear mandate for change.’ The appointments, aimed at driving the Atlanta-based bottler’s ongoing transformation into a ‘growth-oriented, consumer-centered, total beverage company’, has seen the elevation of the Innovation and IT departments to report directly to the CEO, to focus the company’s attention on innovation and growing importance of digital. “Today’s organizational announcement is another building block in our company’s transformational journey. We are moving quickly to structure our organization for faster growth and to ensure we can respond to the fast-changing needs of our consumers, customers, system and associates around the world. Each of the leaders named today is highly capable and understands our clear mandate for change, and I look forward to partnering with them as we transform our business for the future,” Quincey said in a press statement. Among the key changes, the company has combined Global Marketing, Customer and Commercial Leadership, and Strategy into one combined function under the leadership of a new Chief Growth Officer to drive growth across the bottler’s five key strategic beverage categories: sparkling, juice/dairy/plant-based, tea and coffee, water and enhanced waters and energy.

Francisco Crespo, who currently serves as President of the Mexico business unit, will take this newly created role. Quincey has also appointed a Chief Innovation Officer, that elevates Global Research & Development into a stand alone innovation function reporting directly to the CEO, due to ‘the increased importance of innovation to the company’s growth plans.’ To drive the company’s digital agenda, ‘given the importance of digitization as a growth enabler for the company’s business’, the Information Technology function will now report directly to the CEO. Robert Long, currently Vice President, Research and Development, will take this role. Current Senior Vice President and Chief Information Officer Barry Simpson will remain in his role but his role will be elevated to report to the CEO to ‘increase

visibility and focus on efforts to digitize all aspects of the company’s business.’ According to the company, the changes support work already under way to create a leaner, more agile corporate organization that is focused on strategy, governance and vital strategic initiatives, such as innovation and portfolio growth through leading brands and categories. They also follow changes made by Quincey to the company’s international operations leadership team last year. This comes as Coke shifts its focus on accelerating the growth of its brand portfolio with hundreds of new products and continued innovation in beverages, packaging, ingredients and other areas of the business around the world.

NUTRITION

India’s edible oil industry to adopt voluntary national fortification program INDIA – India’s major edible oil manufacturing and processing sector players have committed to commence national fortification of edible oil with vitamin A and D by July this year, providing a critical tool to fight the country’s huge vitamin deficiency. According to the Food Safety and Standards Authority of India (FSSAI), industry partners, resolved during a meeting to adopt fortification of all their edible oil variants as an “industry norm”. The industry players in the meeting included industry associations, academia and the development sector; attended this meeting, with 85% of all attendees from the edible oil industry and its associations. During the meeting, technical issues and challenges with respect to edible oil 10

MAR/APR 2017 | FOOD BUSINESS AFRICA

fortification were discussed. The industry was advised to adopt small packaging of edible oil to make the fortified oil affordable for most consumers, with the industry moving away from selling oil in bulk packaging, away from selling loose oil. The stakeholders also agreed to jointly promote consumer awareness of fortified oil products, including promotion of the national logo for fortified foods, symbolizing better nutrition. With almost 50-90% of the Indian population, across all socio-economic groups, suffering from vitamin A and D deficiencies, according to the National Institute of Nutrition, fortification of edible oils with vitamin A and D, offers the most feasible and cost-effective intervention, notes the FSSAI. This is given credence also

due to the fairly high consumption rate of edible oils in the country, ranging from 12-18 kg per annum per person. If fully implemented, the action by oil millers will extend fortification beyond the two states of Rajasthan and Gujarat, which have enforced fortification of edible oils in these states.

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NEWS | INTERNATIONAL

The World’s top 50 Food & Beverage brands in 2016 2017 RANK

2016 RANK

BRAND NAME

PARENT COMPANY

COUNTRY OF OPERATION

2017 BRAND VALUE (USDM)

2017 ENTERPRISE VALUE

1

1

Nestle

Nestle SA

Switzerland

19,416

75,118

2

2

Danone

Danone

France

7,894

26,171

3

3

Kellogg’s

Kellogg Company

United States

7,068

22,867

4

4

Kraft

The Kraft Heinz

United States

5,631

25,210

5

7

Heinz

The Kraft Heinz

United States

5,292

24,403

6

5

Tyson

Tyson Foods Inc.

United States

4,925

29,888

7

9

Yili

Inner Mongolia Yili industry

China

4,294

14,565

144,550

8

8

Unilever

Unilever PLC

United Kingdom

4,290

9

11

Wrigley’s

Mars Inc.

United States

4,150

15,763

10

6

Lay’s

Pepsico Inc

United States

3,874

11,891

11

10

Arla

Arla Foods

Denmark

3,728

9,673

12

13

Uni-President

Uni-President Enterprises Co

Taiwan

3,008

11,750

13

New

Oscar Mayer

The Kraft Heinz Co.

United States

2,938

20,444

14

15

Amul

Gujarat Co-operative Milk Marketing Federation Ltd

India

2,870

5,502

15

12

McCain

McCain

Canada

2,855

7,834

16

New

Wilmar

Wilmar International Ltd

Singapore

2,833

16,258

17

18

Almarai

Almarai Co

Saudi Arabia

2,593

14,180

18

20

Mengniu

China Mengniu Dairy Co

Hong Kong

2,376

8,206

19

23

Quaker

Pepsico Inc

United States

2,360

10,028

20

22

Campbell's

Campbell Soup Co

United States

2,265

6,363

21

16

Bimbo

Grupo Bimbo

Mexico

2,199

5,041

22

26

Kinder

Ferrero SPA

Italy

2,178

6,186

23

14

Want Want

Want Want China Holdings

China

2,128

7,698

24

17

Hershey’s

The Hershey Co.

United States

2,087

5,788

25

21

Mars

Mars Inc

United States

1,952

54,138

26

25

Yakult

Yakult Honsha Co Ltd

Japan

1,922

8,954

27

New

Arawana

Wilmar International Ltd

Singapore

1,914

7,738

28

19

Yoplait

General Mills Inc

United States

1,904

9,504

29

24

Ajinomoto

Ajinomoto Co Inc

Japan

1,828

6,004

30

31

Ferrero

Ferrero SPA

Italy

1,805

3,264

31

New

Yinlu

Nestle SA

China

1,760

7,653

32

30

Knorr

Unilever PLC

UnitedKingdom

1,695

5,959

33

39

Cadbury

Mondelez International Inc.

United States

1,602

9,081

34

36

Lindt

Chocoladefabriken Lindt

Switzerland

1,595

6,236

35

32

Master Kong

Tingyi (Cayman Isln) Hldg Co

China

1,588

3,234

36

46

Kikkoman

Kikkoman corp

Japan

1,580

5,201

37

38

Devondale

Murray Goulburn Co-operative Co Ltd

Australia

1,500

5,352

38

29

Trident

Mondelez International

United States

1,497

7,711

39

43

S-26

Nestle SA

Switzerland

1,488

7,696

40

28

Tate & Lyle

Tate & Lyle PLC

UnitedKingdom

1,394

4,532

41

44

Philadelphia

Kraft Heinz Co.

United States

1,393

8,534

42

45

Nissin

Nissin Foods Holdings Co

Japan

1,383

4,672

43

37

Enfamil

Mead Johnson nutrition co

Switzerland

1,366

7,331

44

New

Stouffer’s

Nestle SA

Switzerland

1,359

5,220

45

42

Barry Callebaut

Barry Callebaut AG

Switzerland

1,330

8,195

46

New

Nature Valley

General Mills Inc

United States

1,320

6,674

47

48

SandersonFram

Sanderson Farms Inc

United States

1,314

1,705

48

New

Président

Lactalis

France

1,240

3,897

49

New

Reese’s

The Hershey Co.

United States

1,239

4,512

50

47

Ferrero SPA

Italy

1,237

3,529

12

Nutella

MAR/APR 2017 | FOOD BUSINESS AFRICA

FOODBUSINESSAFRICA.COM


RESEARCH

Sugar heavy brands suffer brand value decline as consumer attitude take toll WORLD – The value of brands with a significant exposure to the sugar controversy have been hit by a decline in their brand values as a wave of regulationand changing consumer attitudes sweep the industry, as the general food industry weathered a challenging year. Mars, Coca-Cola, Pepsi, Kellogg’s, Nestle and a host of confectionery beverage giants have seen a significant fall in their brand values according to the recently released report of the 50 most valuable food brands, produced by leading valuation and strategy consultancy Brand Finance. “In general, the last year has proved challenging for food brands. Brands with significant confectionary lines have had the most difficulty as concerns around health eat into revenues. Kraft, Hershey’s, Mars and Nestle have lost 4%, 10%, 14% and 17% of their brand value this year respectively. This trend is global, with Chinese snack food manufacturers Want Want and Master Kong dropping significantly too. Kellogg’s brand value has dropped 3%. Demand for cereal is faltering as consumers explore a wider variety of breakfast options,” said the

report. The beverage giants were not spared either. “In the last year, Coca-Cola’s brand value dropped 7% to US$31.9 billion. Pepsi, the second most valuable non-alcoholic drink brand, is suffering from the same trend, falling 4% to US$18.3 billion. Similarly, 7-Up and Fanta have been fallen 10% and 12% in value, respectively,” it added. The dairy segment has faired much better than the general food sector during the last year. “Within the broader food category, dairy is the most significant subsector in terms of brand value. Amongst the multi-category giants in the top 20, there are six brands focused entirely on dairy, with a further six across the rest of the Brand Finance Food 50,” notes the report. However, dairy brands are struggling with constraints to supply, a stagnation of demand in western markets and a new diversity of value drivers, beyond the traditional factors of price and taste. In the dairy space, “increasing numbers of consumers are now acutely conscious of production safety, nutritional content and Corporate Social Responsibility,” it adds.

According to the report, 2016’s fastest growing food brand is Australia’s largest dairy brand, Devondale, with its brand value up 35% year on year to US$1.5 billion due to changing consumer tastes and growing demand in South East Asia. Chinese domestic dairy brand, Yili, is now the world’s second most valuable (and the strongest) dairy brand after Danone. The report notes that ten years after the formula milk scandals, the Chinese dairy market is growing rapidly and trust in domestic producers rebounding. It adds that with the Asia Pacific region predicted to account for 63% of dairy growth in volume terms between 2016 and 2021, Yili has significant scope for brand and business value growth. Nestle continues to be the world’s most valuable food brand, even as its brand value fell 17% year on year to US$19.4 billion, weighed down by concerns on sugar, for which the company is a leading confectionery producer, such as leading brands KitKat, Butterfinger and Munch. Its brand strength is also down, leading to a brand rating downgrade to AAA-.

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NEWS | INTERNATIONAL MARKET TRENDS

Consumption of bottled water overtakes soft drinks in the US for the first time USA – The volume of bottled water hit a major milestone in 2016 by surpassing that of carbonated soft drinks to become the largest beverage category by volume in the United States, capping a remarkable, decades-long streak of vigorous growth driven by changing consumer attitudes, according to figures released by the Beverage Marketing Corporation. According to the report, total bottled water volume grew from 11.8 billion gallons (44.7 billion litres) in 2015 to 12.8 billion gallons (48.5 billion litres) in 2016, an increase of about 9%, marking the third year in a row of accelerating growth. “Bottled water effectively reshaped the beverage marketplace,” said Michael C. Bellas, Chairman and CEO, Beverage Marketing Corporation. “When Perrier (brand of bottled water) first entered the country in the 1970s, few would have predicted the heights to which bottled water would eventually climb. Where once it would have been unimaginable to see Americans walking down the street carrying plastic bottles of water, or driving around with them in their cars’ cup holders, now that’s the norm,” he added. Bottled water has continued to grow aggressively in the US – as other beverage volumes declined – with volume growth every year from 1977 to 2016, with the exception of small declines in 2008 and 2009, and has been especially strong from 2010, with more than 4% per annum growth recorded till 2016 year. Growth in 2015 touched the 10% mark, increasing the quantity of bottled water consumed in the country to a record 12.8 billion litres, worth almost

US$16 billion. However, as bottled water volumes have risen, with per capita consumption passing 39 gallons (147.7 litres) in 2016, average intake of carbonated soft drinks slipped to about 38.5 gallons (145.7 litres), from a high of 50.4 gallons (190.8 litres) per person just 10 years ago. Beverage Marketing expects bottled water to reach the 190.8 litres level by the middle of the next decade. “Bottled water’s ascent coincided with and encouraged seismic shifts in consumer preferences for healthier refreshment and rehydration. As the ultimate portable and affordable beverage, bottled water spawned new usage occasions and habits. Suitable for consumption at any and all times of day, and not necessarily in need of being kept ice cold, or carbonated, bottled water simply became the preferred beverage not only for consumers aiming to cut back on calories or artificial sweeteners but also for consumers of all kinds wanting to consume a healthy all–natural refreshment beverages,” said the report. However, even as soft drinks sales fall, the major beverage processors still have the bulk of the US water market, with Dasani (Coca-Cola), Aquafina (Pepsi), Nestle Pure Life and Glaceau Smart Water (Coca-Cola) the top selling bottled water brands in the country – giving credence of their strategy to diversify into the water segment earlier on to take advantage of increasing demand.

NUTRITION

Natural products offer opportunities for soft drinks to remain relevant, grow USA - As global consumers’ attitudes towards soft drinks grow increasingly negative due to their high levels of sugar, calories, and ‘artificial’ ingredients, new opportunities are arising for companies to diversify their portfolios, according to research and consulting firm GlobalData. The company’s report states that healthy, ‘clean’ and functional soft drinks are in demand, with 89% of global consumers finding general health and wellbeing claims appealing in food and drink products. These consumers are seeking convenient ways to improve their personal wellbeing and live a more holistic lifestyle, without cutting soft drinks completely out of their diet. In this way, manufacturers must reduce sugar and calorie content, use plant-based sugar alternatives, and enrich products with essential vitamins and minerals to appeal to modern consumers. “The sugar backlash, concerns around artificial ingredients, and a desire for a ’cleaner’ lifestyle are driving demand for beverages that are deemed ’better for you’ than regular soft drinks. Consequently, manufacturers must reduce sugar content and offer products with functional benefits, such as promoting gut and digestive health, to appeal to consumers seeking healthier products that are still similar to traditional soft drinks,” Melanie Felgate, Senior Consumer Analyst for GlobalData, explains. Additionally, on-pack credentials such as logos and certificates, and popular health claims like ‘pure’ and ‘clean’ will further appeal to the 66% of global consumers interested in food and drink products with ‘natural claims’, which should be supported by the inclusion of health-enhancing natural ingredients and flavorings such as ginger, turmeric and cinnamon, the report added.

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MAR/APR 2017 | FOOD BUSINESS AFRICA

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15


NEWS | AFRICAN MILESTONE

Nestle Ghana celebrates 60 years in the country GHANA - Nestle Ghana Limited has launched a year-long series of activities to commemorate its 60th anniversary and present it contribution to Ghana’s development over the years to the public, driven by the company’s purpose of enhancing quality of life and contributing to a healthier future. Speaking at the launch of the celebrations, Freda Duplan, the Managing Director of the company, said that building a strong brand starts with building a

sustainable business and creating shared valued for both business and the society. “At Nestle, we analysed our value chain and determine that the areas of focus of greatest potential for joint value optimisation with society are nutrition development, water, environmental sustainability and people development. The management and staff of Nestle Ghana Limited wish to express our appreciation to all individuals, families, customers, government and communities for being a part of this 60 years milestone,”

she said. Fread said the anniversary was a reflection on Nestle’s significant contribution to nutrition, health and wellness of individuals and families as well other relevant sectors such as education, youth and sports and agriculture to create shared value for the society. Nestle’s celebration coincides with that of Ghana, which has also been commemorating its 60th year since independence.

AfDB approves “Feed Africa” a strategy for Africa’s agricultural transformation IVORY COAST - The Board of Directors of the African Development Bank Group (AfDB) has approved an agricultural transformation strategy that aims for a competitive and inclusive agribusiness sector that creates wealth, improves lives and secures the environment in the continent. “Feed Africa: Strategy for Agricultural Transformation in Africa, 2016-2025,” focused on transformation, scaling up agriculture as a business through value addition, and using innovative financing mechanisms, the strategy aims to end hunger and rural poverty in Africa in the next decade. It is the second of the Bank’s High 5 priorities a blueprint for the implementation of its Ten Year Strategy 2013-2022. According to the Bank, to realize the objectives of the strategy would involve increased productivity; value addition;

investment in infrastructure; creating an enabling agribusiness environment; catalyzing capital flows; and ensuring inclusivity, sustainability and effective nutrition within the continent. The strategy will seek to drive transformation through 15 priority commodity value chains in given agroecological zones to achieve self-sufficiency in key commodities such as rice, wheat, fish, palm oil, horticulture and cassava. It will also seek to move up the value chain in key export-oriented commodities including cocoa, coffee, cotton, cashew nuts – key crops that Africa has relied on for foreign exchange over the years, and which require increased local value addition. The strategy also aims to create a food-secure Sahel region in sorghum, millet and livestock; and realize the potential of the Guinea savannah in maize, soybean and livestock production.

IN FOCUS THE FEED AFRICA STRATEGY IS FOCUSED AT BOOSTING SELF-SUFFICIENCY IN: RICE, WHEAT, FISH, PALM OIL, HORTICULTURE & CASSAVA The Feed Africa Strategy makes a strong case for reversing the situation of a continent that spends US $35.4 billion on food imports annually despite being home to 65% of the world’s undeveloped arable land, but which is projected to rise 12% per year to US$110 billion by 2025. The total investment for the realization of the transformation agenda over 10 years is estimated at US$315-400 billion with annual returns of US $85 billion, when fully funded.

M&A

Nigeria-based PE funds invest in upcoming cassava starch producer NIGERIA - Sahel Capital, fund managers for the Fund for Agricultural Finance in Nigeria (FAFIN) and CardinalStone Capital Advisers (CCA), a Nigerian private equity fund manager, have announced definitive agreements to invest in Crest Agro Products Limited (Crest Agro), an integrated cassava processor based in Kogi State, Nigeria. Crest Agro, founded in 2013 by Dele Ogunlade, was set up to harness opportunities in the cassava starch subsector with a vision to become the leading producer of food grade cassava starch for industrial users in Nigeria and the broader West Africa sub-region. The company has 13,000 hectares of land for farming and an out-grower scheme that covers over 400 smallholder farmers in the state, with a starch processing facility currently under construction. FAFIN and CCA have partnered to 16

MAR/APR 2017 | FOOD BUSINESS AFRICA

invest in the cassava processor to boost its capacity into the future. “Crest Agro has consciously set out to address the structural challenges limiting players in the sector, and we were particularly happy with the quality of the team and the level of execution ability that they bring to the table,” said Mezuo Nwuneli, Managing Partner at Sahel Capital. “We believe that Crest Agro is on its way to successfully capturing the industrialization opportunity presented by Nigeria’s cassava value chain, and will play an important import substitution role for the economy,” commented Yomi Jemibewon, the Managing Director of CCA. “There is strong demand for starch in the food, brewing and pharmaceutical sectors, and as the Nigerian middle class grows and more companies look to enhance their ability to source raw materials locally, this demand-supply gap is expected to

grow substantially. Crest Agro is located in the number one cassava growing region in Nigeria (North Central) and with its starch processing plant coming on stream by the end of the year, the company is uniquely positioned to grow significantly and become a market leader within the next few years. FAFIN and CCA’s investment in Crest Agro will be geared towards facilitating the setup of the company’s starch processing facility, as well as helping to expand farming activities,” said the companies in a statement. Crest Agro has a partnership with a leading native starch producer in Thailand, Chokyeunyong to boost its capacity in processing cassava. It also has a partnership with the leading agricultural research organisation, IITA and the federal government of Nigeria through the ministry of agriculture and rural development. FOODBUSINESSAFRICA.COM


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NEWS | AFRICAN INTERNATIONAL BRIEFS INVESTMENTS

Nigerian Breweries commissions upgraded Ota brewery

NIGERIA - Nigerian Breweries Plc has commissioned an ultra-modern upgraded plant in Ota, Ogun State in Nigeria in its strategic plan to consolidate its leadership position in the industry, reports ThisDay. The new addition to NB Plc factories scattered across Nigeria was part of the company’s Part of the brewery infrastructure commissioned included a new PET line, a water treatment plant and a wastewater treatment plant, among other improvements and projects. “These investments, totaling over N11 billion, stands out as a testimony to our corporate philosophy of Winning with Nigeria and they reflect our company’s bold confidence in Ogun State and Nigeria as an investment destination,” said Chief Kola Jamodu, Chairman of the company at the commissioning ceremony. Nigerian Breweries Plc acquired Ota brewery in 2011 and has invested significantly to upgrade the facilities at the brewery to uplift its standards. INVESTMENTS

Choppies Supermarkets to spend US$55 million on African expansion BOTSWANA - Botswana budget retailer Choppies Enterprises plans to spend US$55 million to open more stores in Africa in the next 15 months, according to its Chief Executive, reports CNBC. Choppies, a no-frills retailer, which has 202 stores in towns often too small to attract larger competitors such as South Africa’s Shoprite, reported a 47 percent drop in half-year profit for the six months to end-December. Chief Executive Ramachandran Ottapathu has said his firm would expand in the seven countries it already operates in. The capital expenditure in Botswana, South Africa, Zimbabwe, Zambia, Kenya, Tanzania and Mozambique will be funded mostly from internal cash flows, he said. Choppies, which makes around half of its sales in Botswana, plans to open 36 new stores in 2017, Ottapathu said. 18

M&A

Kenya’s leading confectioner sells minority stake to South African, French PE funds

Kenafric Industries directors Mikul Shah, Nilesh Shah, Mayur Shah, Kirtan Shah, Bharat Shah and Chehar Shah. The Shah family has sold a 40% stake in Kenafric Industries’ food business. Photo courtesy: Kenafric Industries

KENYA – The Shah family, the owners of Kenafric Industries, the leading confectionery products and food processor in the Eastern and Central Africa, has sold a minority stake in the foods business to two private equity funds. The transaction, between Amethis Finance and Metier have given the two private equity funds (PE) a significant minority stake in Kenafric Industries Limited, stated to be 40%, making this deal the family owned business has welcomed outside investors since it started out in 1987. The deal, which ushers the company in a “new phase of its history,” will enable Kenafric Industries to grow further its ambitions within Kenya and the region. “Kenafric has reached a critical size and now intends to expand into a regional packaged food platform, leveraging on its existing strengths of an excellent route to market to broaden its product range and basket offering,” the companies said in a statement.

The three parties to the deal have been working together on a promising acquisitions pipeline, which have not been revealed. “We are excited about the partnership with Amethis and Metier. Through this investment, we will seek to leverage the deep relationships that they enjoy in the region, operational support and a strong capital base to accelerate future growth’”, commented Bharat Shah, Chairman at Kenafric. Known for its range of confectionery products, where it’s a dominant player in Kenya and regional markets in Africa, Kenafric has recently ventured into the chewing gum business where it seeks to grab market share from Mars-owned Wrigleys through its Fresh brand. It has also introduced a range of chocolate products to leverage on rising incomes and urbanization in the region. The company’s culinary line, through its flagship OYO brand was acquired from Spanish company CGB Foods in 2009.

M&A

Varun Beverages increases stake in its Zambian unit ZAMBIA - PepsiCo’s bottler Varun Beverages has hiked its stake in its subsidiary, Varun Beverages (Zambia) Ltd, to 90 per cent, reports the Daily Mail. “Varun Beverages has increased its stake in its Zambia subsidiary, Varun Beverages (Zambia) Ltd, to 90 per cent from 60 per cent. VBL has been successfully running the Zambia operations since its acquisition in 2016. The increase in stake reflects the company’s confidence in the future growth prospects of the subsidiary and will be an effective catalyst to drive further business growth in a fast-growing emerging market,” the company said in a statement. The company did not give details on the financial transaction and valuation.

MAR/APR 2017 | FOOD NUTRITION & HEALTH

According to the company’s Chairman Ravi Jaipuria the increase in the stake in the subsidiary is in line with the company’s philosophy of consolidating its presence in fast growing emerging markets beyond India. Jaipuria said Zambia continues to be an under-penetrated market and offers significant upside potential. The company recorded sales volumes of 10.7 million cases in 2016 in the country. “The operations are highly profitable and reported an EBITDA of US$6.99m in calendar year 2016. Given the growth prospects and promising earnings potential, the acquisition comes at a very reasonable valuation with an attractive payback,” the statement added. FOODBUSINESSAFRICA.COM


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Joachim Westerweld Managing Director, Bio Food Products Ltd

Lesault Fabrice Regional Business Manager, bioMerieux Industry

Devan Shah Business Development Executive, Broadways Group

Diana Wairimu Account Manager, Human Nutrition, East Africa, BASF

Margaret R. Kibogy Managing Director, Kenya Dairy Board

Emily Waita Macharia Head of Public Affairs, Coca-Cola Central, East and West Africa

Erick Ogumo Supplier Relationship Manager, East & West Africa, Tesco Supermarkets UK

Dr. Sufian Kyarua Secretary General, Tanzania Animal Feed Manufacturers Association

Prof. Ruth Oniang’o Professor of Food & Nutritional Sciences & Founder CEO, Rural Outreach

Vaishali Malde Sales & Marketing Manager, Packaging Industries Ltd

Robert Kilonzo Head of Food Safety, Ministry of Health

Craig Robertson Business Development Manager, Fossilcote

Mercy Chatyoka Group QSHE Manager, National Foods, Zimbabwe

Joyce Mutua Technical Director, USAiD KAVES Project

Emmanuel Rurema - CEO Pentair Kenya Ltd

Amir Parpia - Finance Director, Alpha Fine Foods & Chair, Food & Beverage Section at KAM

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AFMASS 2017 | SPONSORS PROFILE

SILVER SPONSOR

Company Name: Buhler Ltd Type of Business: Manufacturer Products: Milling, Seed Processing, Baking, Grain handling & Feed Processing Equipment for milling and feed industry Location: Sukari Industrial estate, Ruiru, Kenya Postal Address: P.O. BOX 44553 – 00100 Nairobi, Kenya Tel: +254 720 180 011 Contact Person: Morris Kiangi Website: www.buhlergroup.com

SILVER SPONSOR

Company Name: Coca-Cola Central, East & West Africa Type of Business: Beverages Manufacturer Products: Beverages for consumer market Location: The Coca-Cola Plaza, Kilimanjaro Road, Upperhill Postal Address: P.O. Box 30134 – 00100, Nairobi, Kenya. Tel: +254 20 3253 225 Contact Person: Julia Otaya Website: www.coca-cola.com

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AFMASS 2017 | SPONSORS PROFILE

DINNER SPONSOR

Company Name: Nestlé Equatorial African Region Ltd Type of Business: Food & Beverage Manufacturer Products:Food & Beverages for consumer market

SESSION SPONSOR

Company Name: DSM Nutritional Products South Africa (Pty) Ltd Type of Business: Manufacturer

Location: The Atrium, Chaka Road, Hurlingham.

Products: Ingredients Solutions for food, beverage, milling and feed industry

Postal Address: P.O. Box 50813 – 00200. Nairobi, Kenya

Location: 16 Brewery Street, 1600 Isando, South Africa

Tel: +254 20 49 84 000

Tel: +27 11 966 9172

Contact Person: Titus Kieni

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Website: www.nestle-ea.com

Website: www.dsm.com

SESSION SPONSOR

SESSION SPONSOR

Company Name: BASF East Africa Ltd Company Name: Tetra Pak Limited Type of Business: Manufacturer Type of Business: Manufacturer Products: Processing & Packaging Equipment and Solutions for food and beverage industry

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Products: Ingredients Solutions for food, beverage, milling and feed industry

Location: ICEA Lion Centre, Chiromo Road, Westlands

Location: 14 Riverside, Hanover Suite 1A, Riverside Drive

Postal Address: P.O. BOX 78340 – 00507, Nairobi, Kenya.

Postal Address: P.O. Box 24271 – 00100, Nairobi, Kenya

Tel: +254 20 427 8546

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Website: www.tetrapak.com

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AFMASS 2017 | SPONSORS PROFILE

SESSION SPONSOR

CONFERENCE BAG SPONSOR

Company Name: DNV GL Kenya Limited

Company Name: Texplast Industries Ltd

Type of Business: Service provider

Type of Business: Manufacturer

Products: Inspection Services, Environmental Services, Certification Services for the industry

Products: Packaging Solutions for the food, beverage, milling and feed industry

Location: West End Towers, 6th Floor, Waiyaki Way, Westlands, Nairobi, Kenya.

Location: Magana Rd, Kikuyu, Kenya Tel: +254 20 2017 683/4/5

Tel: +254 724 418 978 Contact Person: Mihir Shah Contact Person: Erick Nkanata Website: www.texplast.co.ke Website: www.africa.dnvgl.com

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SESSION SPONSOR

Company Name: Gold Crown Beverages (K) Ltd Type of Business: Beverages Manufacturer Products: Tea Beverages for consumer market Location: Alpha Centre, No 25, Mombasa Road Postal Address: P.O. BOX Nairobi, Kenya Tel: +254 20 820 887/9 Contact Person: Nyawira Maina Website: www.goldcrown.co.ke

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AFMASS 2017 | EXHIBITORS PROFILE

Company Name: Ingredion Holding LLC

Company Name: SGS Kenya Ltd

Company Name: Allwin Packaging International Ltd

Type of Business: Service provider Type of Business: Manufacturer Products: Ingredients Solutions for the food, beverage and bakery industry Location: Tulip House, 5th Floor, Mombasa Road Tel: +254 20 36 28 000 Contact Person: Lawrence Mbithi Website: www.ingredion.com

Type of Business: Distributor Products: Laboratory Testing, Inspection Services, Environmental Services, Food Safety Certification for the industry Location: Victoria Towers, Kilimanjaro Avenue, Upperhill, Nairobi, Kenya Tel: +254 20 273 3690

Products: Packaging & Manufacturing Equipment and Solutions for food and beverage industry Location: Enterprise Road-Likoni Road Junction, Industrial Area Postal Address: P.O. BOX 7038100400, Nairobi, Kenya

Contact Person: Cyprian Kabbis Tel: +254 20 2017207 / 2406800 Website: www.sgs.com Contact Person: Saji Kuriakhose Website: www.allwin.co.ke

Company Name: Packaging Industries Ltd

Company Name: Alpes Industries Services International Ltd

Company Name: Bakex Millers Ltd

Type of Business: Manufacturer

Type of Business: Manufacturer

Type of Business: Manufacturer

Products: Packaging Solutions for food, beverage, milling and feed industry

Products: Processing & Packaging Equipment for food and beverage industry

Products: Baking Flours for consumer and industrial market

Location: Nadume Road, off Sekondi/Lunga Lunga Road, Industrial Area, Nairobi, Kenya

Location: 140, LOB-16, Jebel Ali, Dubai, UAE

Location: Off Garissa Road, Thika Postal Address: P.O. BOX 25 01000, Thika, Kenya

Contact Person: Benard Duchatel Postal Address: P.O. BOX Nairobi, Kenya

Website: alpes-is.com

Tel: +254 717 080 024/ +254 731 459 868

Tel: +254 722 20 69 66

Contact Person: Devan Shah

Contact Person: Vaishali Malde

Website: www.bakex.com

Website: www.pil.co.ke 24

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AFMASS 2017 | EXHIBITORS PROFILE

Company Name: Central Glass Industries Ltd

Company Name: Forbes Marshall Pvt. Ltd.

Company Name: MĂźhlenchemie GmbH & Co. KG

Type of Business: Manufacturer

Type of Business: Manufacturer

Type of Business: Manufacturer

Products: Glass Packaging Solutions for food and beverage industry

Products: Process Efficiency & Energy Conservation for the processing industry

Products: Fortification Ingredients Solutions for milling and baking industry

Location: Off Thika Highway, opp. Kasarani Stadium

Location: A-34/35, MIDC, Industrial Estate, H Block, Pimpri, Pune-411018, India.

Location: Hamburg, Germany.

Tel: +91 20 27442020

Contact Person: Binoy Zachariah

Contact Person: Sarang Sirdeshpande

Website: www.muehlenchemie.de

Postal Address: P.O. Box 49835 Nairobi 00100 Tel: + 254 20 513 1245

Tel: +254 733 747 168

Contact Person: David Munyua Website: www.forbesmarshall.com Website: www.consol.co.za

Company Name: Tanis Machinery

Company Name: PAL International

Type of Business: Manufacturer

Type of Business: Manufacturer

Products: Milling, Seed Processing, Grain handling & Feed Processing Equipment for milling and feed industry

Products: Food Safety Products & Solutions for food, beverage, hospitality and foodservice industry

Company Name: Diversey Eastern & Central Africa Ltd Type of Business: Manufacturer Products: Food Safety & Hygiene Solutions for the food, beverage, hospitality and foodservice industry

Location: The Prism Business Bay (Nr Business Bay Metro), Dubai, UAE

Location: Ruaraka, off Baba Dogo Road, Nairobi, Kenya

Tel: +971 4 3638815

Tel: +254 703 040 000

Contact Person: Murale Chemmarasseri

Contact Person: Sammy Lamba

Contact Person: Emre Tan Website: www.tanis.com.tr

Website: www.palinternational.com

Location: 1 Organize Sanayi Bolgesi, Baspinar, Gaziantep, Turkey Tel: +90 342 337 22 22

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Website: www.sealedair.com

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AFMASS 2017 | EXHIBITORS PROFILE

Company Name: Broadway Bakery Ltd Type of Business: Manufacturer for consumer market Products: Bakery Products for consumer market Location: Factory Road, Off Kenyatta Avenue, Thika Postal Address: P.O. BOX 25 - 01000, Thika, Kenya Tel: +254 720 504 309 Contact Person: Devan Shah Website: www.broadway.co.ke

Company Name: Papyrus Africa Ltd Type of Business: Distributor Products: Ingredients, Processing and Weighing Solutions for food, beverage, hospitality and foodservice industry Location: Off Enterprise Road Postal Address: P.O. Box 42134, 00100, Nairobi, Kenya.

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Company Name: Capwell Industries Ltd

Type of Business: Manufacturer Type of Business: Food Manufacturer for consumer market Products: Cereal Food Products for consumer market Location: Off Garissa Road, Thika, Kenya

Products: Flooring Systems & Niche Wall Paints for the industry Location: DulDul Enterprises, Unit J3, Sabaki, along Mombasa Road Tel: +254 797 36 77 45

Tel: +254 736 237 000 Contact Person: Margaret Kamaru

Contact Person: Craig Robertson Website: www.fossilcote.com

Website: www.capwell.co.ke

Company Name: F&S Scientific Ltd

Company Name: Kemin Industries

Type of Business: Distributor

Type of Business: Manufacturer

Products: Laboratory Equipment & Solutions for food, beverage, milling and feed industry

Products: Ingredients Solutions for food, beverage, milling and feed industry

Location: Shamneel Court, 2 Muthithi Road, Westlands

Location: 5 Purlin Street North, Sterkfontein ext 11, South Africa

Postal Address: 39081-00623, Nairobi, Kenya

Tel: +27 11 206 8004

Tel: +254 20 2525 773/82

Tel: +254 727 800 800 / 788 800 800

Contact Person: Hanif Kurji

Contact Person: Rushabh Shah

Website: www.papyrus.co.ke

Website: www.fnscientific.com

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Company Name: Fossilcote Limited

Contact Person: Joseph Kiplagat Website: www.kemin.com

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NEWS | AFRICAN FOOD SAFETY

Health ministry orders bottlers to include warnings as additives case takes new turn

NIGERIA - The Federal Government has ordered all bottling companies in the country to insert advisory warnings on all products to safeguard the health of all citizens and consumers following a court ruling against the country’s largest Coke bottler Nigerian Bottling Company. The court case filed by Fijabi Holdings against the Nigeria Bottling Company and NAFDAC, the industry regulator, follows the rejection of Fijabi Holdings’ soda by the authorities in the UK that had been exported from Nigeria by the company because of high levels of additives in the drinks.

guidelines relating to foods, food production and food safety. In the case of benzoic acid, the standard set by Codex was 600mg/kg until recently reviewed to 250mg/kg and adopted in 2016,” he said in a statement. “With reference to the Codex standard and other relevant documents, Standards Organisation of Nigeria (SON) in consultation with and relevant stakeholders elaborated the standard of benzoic acid in soft drinks to be at 250mg/kg based on the national climatic and storage conditions. This standard has been in existence since 1997 and revised in 2008,” he added. The minister explained that both were

ingredients approved by international food safety regulators and used in many food and beverage products around the world. “With reference to the Codex standards, each country or region is permitted to adopt a standard and limit based on country-specific scientific evidence such as environmental, storage and distribution conditions,” he explained. He said that due to the different environmental conditions obtainable in the UK, the standard for benzoic acid was set at a lower limit of 150mg/kg, while in Nigeria it was set at 250mg/kg even below that of Codex.

“Codex Standards permit each country to adopt and set limit based on countryspecific scientific evidence such as environmental, storage and distribution conditions” Prof. Adewole - Min of Health

Two additives, benzoic acid and ascorbic acid (Vitamin C), which are commonly added to soft drinks, were found to be above the specifications for the temperate climate UK market by the authorities in the country. However, despite the court ruling, NBC and NAFDAC have disputed the claims, arguing that the drinks actually met the requirements of both the Nigerian and the Codex Alimentarius standards, and have appealed the ruling in court. The Ministry of Health, through the Minister of Health, Prof. Isaac Adewole, has supported the two organizations’ view. “Codex Alimentarius Commission (CAC) is the organisation established by Food and Agriculture Organisation of the United Nations (FAO) and World Health Organisation (WHO) to set internationally recognised standards, codes of practice, FOODBUSINESSAFRICA.COM

FOOD BUSINESS AFRICA | MAR/APR 2017

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NEWS | AFRICAN INVESTMENT

Olam expands West African biscuit market capacity

GHANA – Olam International’s Nutrifoods Ghana Limited has invested US$8.25 million to double the capacity of its biscuit production facility in Tema, Ghana, with a focus on meeting increasing domestic and export demand.

Jointly owned by Olam International (75%) and Sanyo Foods of Japan (25%), the Nutrifoods facility is currently the leading biscuit factory in Ghana, with a 30% market share. The expansion project included the upgrading of the capacity of the facility with

new production equipment and technology including an additional third production line. The company will now look to enter almost all segments of biscuit production, including sandwich cream biscuits. The investment adds extra 150 employees, raising the number to 600. “With this expansion, we have doubled our existing production capacity, developed a new capability to make more varieties of biscuits, enhanced food safety and security through automation of our production line, and increased employment in other areas of operation,” said Chitwan Singh, Business Head, Nutrifoods Biscuits. Olam’s Country Head Amit Agrawal reiterated that the investment underlined the company’s ongoing commitment to producing high quality goods with local talent, in a supportive operating environment. Nutrifoods Biscuits became the first biscuit factory in West Africa to be awarded the globally acknowledged FSSC (Food System Certification Scheme) accreditation, affirming the factory’s strong focus on food safety initiatives and its ability to identify and control potential food safety hazards, notes Olam.

LABORATORY

EAGC, Soy Afric partner to launch grains laboratory Grain Council (EAGC) have formed a joint venture company that runs a laboratory to test grains and related produce in Nairobi, Kenya. The new company, Interfield Food Testing Laboratories Ltd situated in Ruiru, Kenya offers specialized testing of grains, pulses, oilseeds and their derivatives. The laboratory is fully outsourced and managed by SGS, the world’s leading inspection, verification, testing and certification company. The Laboratory is currently operated in accordance with the principles of ISO 17025 and is equipped to provide complete analysis for grading of grains and pulses, chemical analysis for contaminants and microbiological analysis of various harmful microorganism/pathogens often associated with handling and processing of agricultural human food/animal feeds products at different stages within the supply chain. In order to provide comparability in test results, the lab employs both international and regional test methods such as ISO, 28

MAR/APR 2017 | FOOD BUSINESS AFRICA

Cornelius Muthuri, CEO, Soy Afric; Gerald Masila, CEO, EAGC; and SGS Kenya CEO Albert Stockell sign the partnership agreement for the laboratory

AOAC, AOCS and EAS methods. EAGC is a regional not-for-profit organization with a focus on the grain value chain actors and stakeholders with

a mandate spanning 10 countries in the Eastern Africa region while Soy Afric specialises in relief food products in the Horn of Africa and the Great Lakes region. FOODBUSINESSAFRICA.COM


M&A

Bob Geldof’s 8 Miles boosts African investments, invests in Africa’s leading fresh fruit producer AFRICA - 8 Miles LLP, the pan-African Private Equity firm, has announced a significant minority stake in Blue Skies, a UK business with operations in a number of African countries. Blue Skies, the leader in the production of fresh-cut tropical fruit for UK and Western European supermarkets, was founded in 1997, and has since grown its operations into Ghana, South Africa, Egypt, Brazil and the UK, employing more than

4,000 people. It reported revenues of £89.6 million (US$111 million) for the year 2016. The investment gives 8 Miles a significant minority stake alongside the founder investors and management team. Financial details of the transaction have not been disclosed. With the investment, the company plans to expand its core fresh cut fruit business, increase production capacity in South Africa, launch a fresh juice operation

in Egypt and develop new product lines for some of its markets in Africa. Chaired by Irish musician Sir Bob Geldof, 8 Miles is a private equity fund with a focus on Africa’s industry. The company has sealed a number of significant stakes in Beloxxi Biscuits, a leading processor f biscuits in Nigeria last year; Verde Beef Processing in Ethiopia and in Uganda’s Biyinzima Poultry. It also has a majority stake in Ethiopia’s Awash Winery.

M&A

Norwegian fund invests in Ethiopian beef exporter ETHIOPIA – The Norwegian The Norwegian Investment Fund for Developing Countries (Norfund) has announced an investment of US$7.4 million in Verde Beef Processing PLC, an Ethiopian beef producer. Verde Beef Processing PLC (VBP), Adami Tulu district of the Oromia regional state, Ziway Ethiopia, is an integrated beef producer that undertakes feed production and feed lotting activities. The company produces premium beef and aims to become the largest cattle processing operation in Eastern Africa with a target output of more than 130,000 carcasses per year. The capital provided by Norfund

will help VBP become the largest cattle processing operation in Eastern Africa by enabling the construction of a state of the art abattoir and meat processing facility currently underway - and also fund working capital for the business. Norfund will work alongside 8 Miles - a UK based pan-African private equity fund - which made an initial investment into VBP in November 2015. According to Norfund, VBP has a significant cost advantage over its international competition, and is expanding its feedlot operation in Ethiopia to capitalize on this; producing high-quality beef for export and local markets. “Ethiopia’s

geographical positioning combined with its livestock population, the largest in Africa and the fifth largest in the world, position the country perfectly as a potential provider of meat to the rapidly expanding markets of the Middle East and Northern Africa (MENA),” it says in a statement. With the investment, VBP plans to generate US$18 million of revenues in 2018 and reach an export value of US$100 million annually by 2021, further developing the important meat sector in Ethiopia and increasing employment to over 2,000 employees.

M&A

Distell takes majority stake in KWAL

KENYA – South African leading wine and spirits group Distell continues to ramp up its investment on the African continent with the acquisition of a further 26.43% in KWA Holding East Africa (KWAL) - Kenya’s foremost spirits, wine and ready-to-drink manufacturer and distributor - from Centum Investment Company, reports the Business

IN FIGURES

52.43%

DISTELL’S STAKE IN KWAL AFTER CURRENT DEAL FOODBUSINESSAFRICA.COM

Daily. The deal gives Distell a majority shareholding of 52.43% in KWAL after having previously acquired a 26% stake from Industrial and Commercial Development Corporation (ICDC) in 2014 through a Kenya government privatisation process. “With a population of over 47 million people, Kenya is expected to be one of the fastest growing economies in Africa, driven by rapid urbanisation and strong income per capita growth across major cities over the next decade. Spirits has been the fastest growing segment of Kenya’s alcoholic beverage industry and growth is anticipated to remain robust going forward,” said Donovan Hegland, Distell Africa, managing director. Distell said the deal increases its exposure to Kenya’s highly attractive economy and alcoholic beverage industry. The company sold more than 8 million litres of alcoholic beverages in 2016 and owns a portfolio of leading local brands such as Kibao, Kingfisher and Caprice which have shown strong growth in recent years.

“Distell’s strategy is to expand geographically through acquisitions of and/ or partnerships with regional scale players who have leading brands, rich heritage, and strong platforms in their core markets. We believe the strength of KWAL’s platform and key brands align with Distell’s strategic intent,” Carlos Gomes, KWAL’s managing director, welcomed the transaction, saying KWAL and Distell management will continue to work closely together, as they have done since 2014, to identify and unlock further opportunities for collaboration and synergies. This will provide the platform for sustained growth and further cement KWAL’s position as Kenya’s national champion.

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29


NEWS | AFRICAN INVESTMENTS

Coffee and pastry chain Krispy Kreme Doughnuts to open in Nigeria

NIGERIA – Leading American coffee and pastry retailer Krispy Kreme has announced that it is entering Nigeria, the most populous country in Africa, even as the country faces challenges with macro economic issues. Through a partnership with Quality Foods Africa (QFA) quick service restaurant business focused on providing a dining experience in accordance with top global standards and service

quality to Africa’s rapidly growing consumer markets - the company plans to open up to 20 Krispy Kreme retail shops in the country by 2022. “We are thrilled to be expanding into Nigeria, and we are fortunate to be working with an exceptional group,” said Michael McGill, Vice President of International at Krispy Kreme Doughnuts. “The joy of a Krispy Kreme doughnut and coffee is beloved all over the world, and we cannot wait to introduce that joy to the people of Nigeria over the next several years.” “We are delighted to be able to bring the Krispy Kreme brand to Nigeria,” said Edmond Sassine, CEO of QFA. “Nigeria is a huge market and we are truly excited about bringing the world’s best doughnuts to one of Africa’s biggest economies.” This development agreement makes Nigeria the second African nation to open Krispy Kreme shops after the American brand made its African debut in South Africa in 2015. Driven by a growing middle class and changing consumer tastes driven by a young population, Africa offers a prime future growth opportunity for the likes of Krispy Kreme. Its competitor Dunkin’ Donuts also entered the South African market a few years ago, with ambitions of expanding into Africa.

PARTNERSHIP

Statpack launches German Minebea inspection machines at Propak 2017 will all be available immediately from Statpack. Minebea Intec has production centres and aftersales services in 20 countries within Europe, Asia-Pacific, Africa and Northern and Latin America. The machines are used mainly in the food and pharmaceutical industry to screen finished products for foreign objects before dispatch to retail chains. This safeguards consumers from harmful elements that could have bypassed the human eye during production. They also stop costly damage to machinery by eliminating metallic objects from finding their way into production equipment for chemical, plastics, recycling, rubber, wood, power plants, mining, tobacco and clay. Bernard Palm Global Application Specialist from Minebea Intec demonstrates how the metal detector works

KENYA – Regional provider of packaging solutions Statpack has unveiled its partnership with leading German technology provider Minebea Intec to provide and service the company’s machines in the Eastern Africa region. Statpack has signed a partnership agreement with leading the German technology firm that will expand Statpack’s range of products beyond packaging tapes, coding, strapping and stretch wrap machines, printed laminates and shrink packaging solutions. The partnership was unveiled at the recently ended Propack event in Nairobi, Kenya, where Statpack showcased its latest range of products in packaging, printing and plastics. The exhibition also allowed visitors to engage the Statpack team and learn more about the available technology relevant to their requirements, and meet the Global Application Specialist from Minebea, Bernard Palm. The scales offer accurate weight management system through clear display and transmission. One of the main attractions at the Statpack stand was the launch of Minebea check weigher machine barely 2 weeks after the partnership agreement with the German technology firm. The Minebea Intec product range include check weighers, X-ray machines, metal detectors, truck scales, bench and floor scales and 30

MAR/APR 2017 | FOOD BUSINESS AFRICA

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M&A

Heineken buys South African craft brewer Stellenbrau

Norwegian dairy products hygienically packaged Innovative cup filling machine from Ampack increases productivity and flexibility for TINE SA

SOUTH AFRICA - Heineken South Africa, a subsidiary of leading brewer Heineken International, has ventured into the growing craft beer market in South Africa by acquiring the Stellenbosch-based brewery, Stellenbrau. Stellenbrau, a five-year old brewer with four main beer brands: Craven Craft lager, Jonker’s Weiss, Alumni Ale and Governor’s Red rooibos lager has become part of the Dutch brewer. “Stellenbrau was a natural fit with us from day one. To us, Stellenbrau is what Heineken was 150 years ago, because they share the same essential values: – a love of, and pride in producing great beer and a courageous entrepreneurial spirit,” said Ruud van den Eijnden, Heineken South Africa’s managing director. With concerns that by buying such craft beer producers meant to dilute their focus on quality Van der Eijnden has promised that Heineken wants Stellenbrau to ‘keep doing what it does best,’ and have no plans to ‘corporatise’ the brewery. “If we combine forces, we can do so much more together. The best thing you can do for us is to keep your identity. We can learn as much from you as you can from us.” Deon Engelbrecht, the founder of Stellenbrau, who says the deal signing was a ‘momentous day for him and his staff,’ believes that the ‘landmark collaboration is testimony to what we have attempted to achieve locally, creating a distinct range of premium beers with character and accessibility. The fact that an international contender of Heineken’s reputation recognizes this vision and supports it, is a source of immense pride for all of us here at the brewery.’ The acquisition will add to Heineken’s company’s growing influence and focus on South Africa’s beer industry, which the company expects to grow to 35 million hectoliters (3.5 billion litres) per annum by 2024, driven by a growing middle class and strong GDP, according to the company. Last year, the company took over most of the stake that Diageo owned in the joint venture brandhouse, to increase its shareholding to 75% in DHN Drinks (Pty) Ltd the company that owns the entire portfolio of beer, ready to drink and cider in South Africa. It also owns 75% in Sedibeng brewery, a fairly new brewery that was opened in 2009, with capacity of 4.5 million hectoliters (450 million litres) per annum. The South African craft beer industry has witnessed an explosive growth, with the number of breweries growing from just below 20 in 2008 to about 180 by the end of 2016, with growth in 2014-15 and 2015-16 recording 50% growth, according to Brewmistress, a website that tracks the industry.

In the past, dairy products were produced on farms in different types of wooden containers – mainly vats, to store butter and cheese. In the far north of Europe – in Norway – the vats are still in use. Carved from wood they are called ‘tine’. So iconic are the storage tanks that TINE SA, Norway’s biggest producer of dairy products, has adopted and trademarked the ‘tine’ as its company logo. Established over 135 years ago as a cooperative of 15 000 Norwegian milk farmers, who are as members also shareholders, TINE SA processes 1.4 billion liters of cow’s milk and around 19 million liters of goat’s milk every year. Strict controls and state-of-the-art technology are fundamental for the company to guarantee the highest quality. The portfolio encompasses around 200 different products, such as yoghurt, sour cream, and various types of cheeses, which are sold worldwide. In 2013, after taking over the production of another dairy factory, the company needed to increase the production volumes, improve hygienic standards and have a fast, simple integration. In order to implement this ambitious plan, TINE turned to Ampack, part of Bosch Packaging Technology since 2012, which proved to be a reliable partner since 1999. The result was a customized cup filling machine with eight inline lanes and equipped with cup placing, sterilizer, dosing device, lid station, sealing station, snap-on lid station, packer and tray transport for filling pre-formed cups with various products. The system was designed to handle 18 000 cups per hour (a 50 percent increase in comparison to the previous model) with several different cup formats and different packaging materials on the same machine. TINE SA saw an immediate increase in its production margins, while the effort required by operators remained about the same, with the compartment only having to be re-filled every 12–18 minutes. The new machine layout replicates the previous one and control and operation are almost unchanged, meaning the operators could adapt easily to the new technology. The high-performance system solution runs a two-shift operation for five days a week, with machine stoppages kept to a minimum, resulting in very little downtime. As a result TINE SA was able to increase production in line with its objectives – without significant production losses during the installation phase. Ampack GmbH

Robert Bosch East Africa Ltd.

A Bosch Packaging Technology Company

Marta Rutynowska

Lechfeldgraben 7

Mpaka Road, Fedha Plaza, 4th Floor

86343 Königsbrunn

Nairobi 856

GERMANY

KENYA

Phone: +49 8231 6005 0

Phone: +254 790 206622

E-mail: ampack@bosch.com

E-mail: Marta.rutynowska@bosch.com


EXECUTIVE INTERVIEW | SURESH KANOTRA CEO, SHEFFIELD AFRICA locals and also channel some of our profits to support various corporate social responsibility initiatives. We also have some of our competitors from abroad having an edge over us because of incentives extended to them.

Please describe Sheffield Africa, its products and services and markets briefly I set up Sheffield in 2003 to address the huge service gap issue that operators in the food and beverage industry were facing. Sheffield started with only five employees at that time offering services. Over the years Sheffield Africa has grown to become a powerhouse in its industry offering end-to-end solutions for the hospitality industry. We are a Kenyan company producing quality products and services, which are at par with the best in the world. We offer customized solutions for various budgets and our clients benefit from the advanced technological solutions and state of the art training that we offer. The outlook of Sheffield Africa has changed since inception and we are now serving the entire African market having installed over 7,000 kitchens in Africa with some as far as Nigeria and Zambia. What have been some of the key building blocks to the success of your business over the years? Strong and consistent growth in our products and services from the good will we have generated from our customers has been the major factor that has fueled the growth of Sheffield Africa. The company also has a strong and robust management team and a young workforce that is open to new ideas and come up with new and innovative solutions for the food and beverage industry. What are some of the challenges still stand in the way of your company meeting its goals and aspirations in Kenya and the region? Undeveloped infrastructure, high cost of doing business in Kenya, high cost of borrowing and energy, lack of incentives for local manufacturers compared to foreign investors are some of the challenges that the company faces. This has made Sheffield not realize the full potential for growth, we also face other challenges like abrupt changes in 32

MAR/APR 2017 | FOOD BUSINESS AFRICA

the taxation system for our imported products that are done without consultations, the fluctuation of the Kenyan currency has posed a great problem since we buy all our imported products and raw materials using foreign currency. Another challenge is lack of skilled labor to meet our industry’s requirements; Sheffield Africa has had to invest heavily to train graduates to acquire the necessary on the job skills.

How much has your company gained from regional integration of the five East African economies? The regional integration has increased the size of the market we serve and this has resulted to more growth for our company. We now have offices in Kigali, Rwanda and Kampala, Uganda and we aim at opening more offices in Tanzania and Burundi to increase our physical presence in the region. There has been an increasing entry of new international hotel chains into the region. What do you think this portends for suppliers of hospitality solutions like yourself? The entry of new international hotel chains has opened up new doors for us in terms of customer base. Their entry has significantly raised the bar in the hospitality industry in the region by making locals appreciate quality products and brands that we provide. What challenges (new requirements etc.) does the entry of these international chains place on businesses like yours? Most of these international brands are extended tax holidays by the government and hence prefer to import items. On one hand the government is attracting foreign direct investment but on the other hand the government is not creating a level playing field for local businesses in our industries to grow and thrive yet we contribute to the economy by paying taxes, invest in training our employees, provide employment for

An increasing retail presence and rise in fast foods show a rising need for convenience in the food retail sector. How has your business changed to meet this rising need for convenience? In the last few years we have seen some big international brands in the fast food industry like KFC and Burger King venturing into Kenya through franchise agreements. This has opened a new window of opportunity for us. We have increased our production capacity, introduced other quality management systems and new product segments to benefit from their entry into the African market. We have also developed new and innovative products and turnkey solutions to promote the development of local facilities. What are the key trends you are seeing emerging in the hospitality and food service industry in the region? The food and beverage industry in Africa is evolving and growing very fast. According to a research done by McKinsey, this industry will be the leading industry in Africa in the next 10 years. I can say Sheffield is well placed to provide solutions and products to this lucrative industry. We now have a concept based showroom showcasing some of the best concepts that are taking on the developed world by storm which are cost effective and easy to relocate so they do not tie our customers to one location. These concepts include mobile kitchens, food carts, juice bars, and patisserie and gelato shops. These concepts offer value for money and have a shorter period on return on investment compared to other investment opportunities available

ABOUT EXECUTIVE INTERVIEWS Executive Interviews provide the readers of the Food Business Africa magazine with the opportunity to hear first hand from business leaders from the region’s food & beverage, milling & feed and hospitality & food service industry; suppliers to the sector; Government officials and other C-suite executives about their perspectives on the Africa’s business environment, challenges, opportunities and future trends. Want to share your views with the industry? Please contact us on info@foodworldmedia.net FOODBUSINESSAFRICA.COM


FOOD SAFETY

Meat Inspection: Leaving No Room for Error Product inspection and advanced inspection systems can offer meat and poultry manufacturers improvements in productivity, protection, safety and quality.

T

he meat and poultry industry in Europe, Asia and Africa is expected to see steady increases in terms of production turnover in the years to come. The meat processing industry is a typically harsh environment, and there are many elements to consider when putting together a product inspection programme. Food safety is of paramount importance of course, and meat processors will be subject to compliance with Hazard Analysis and Critical Control Point (HACCP) regulations. An audit will be carried out to identify critical control points, at which product inspection systems are invariably placed in order to mitigate the risks outlined. For meat processors, X-ray and metal detection systems are the most likely systems to be deployed.

 Contaminant detection needs do not slow you down 
 Once a manufacturer has identified the need for a product inspection system the next challenge is to ensure that executing

these inspection checks do not interfere with production. Downtime is the enemy in any manufacturing environment, but when margins are slim it is even more important that lines are able to run unhindered. This is where in-line inspection systems come into their own, as 100% of product can be inspected for contaminants without having to stop or decrease line speeds. 
 Where metal is identified as the main contamination risk, metal detectors are often positioned strategically on the line. As meat is considered to be a wet product, the high moisture content can cause what is known as product effect - a phenomenon whereby the characteristics of the product itself can inhibit the equipment’s ability to identify specific contaminants.This can lead to a higher wastage level due to false rejects, particularly in products that are challenging to inspect – such as meat, poultry and seafood, for example. Modern metal detectors available on the market today have been specifically designed to overcome product effect in challenging applications, ensuring wastage is kept to minimum and that profit margins are protected. The ability to not only overcome product effect, but to also find smaller real life contaminants safeguards consumers and enhances brand protection.
 X-ray systems are also often deployed on meat processing lines as they are capable of detecting a wide variety of contaminants in-line, such as calcified bone, glass, mineral stone, high density plastics and rubber and, of course, metal. X-ray can be used in all

applications for contaminant detection and is capable of highly accurate results at high speeds. Systems can often be found in bulk flow applications, pipeline systems and in the inspection of processed unpackaged and packaged products regardless of frozen, fresh or dried.

 A wide range of benefits
 Many may assume that product inspection systems have only one purpose – to detect contaminants - but there are many tasks that can be carried out simultaneously that can add value, improve productivity and improve product quality. Checkweighers are often used to monitor completeness in packaged products. They are also able to interact directly with fillers, for example, to ensure regulatory compliance in areas such as weights and measures without wasting valuable product – either through giveaway or the need to rework. This additional quality assurance element adds value to manufacturers and their customers alike in terms of consistency.
 X-ray systems are able to fulfil a wide range of tasks, such as checking packages for missing components or product defects such as holes or shape and edge defects. Packs of sausages are a good example of how these additional quality checks can be used to maximum effect. X-ray systems can also be used for mass measurement purposes, which is critical in applications such as fresh minced meat, for example. 
Other quality checks can be performed simultaneously, such as fill level

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Providing WorldͲClass Solutions for Beverage,  Food and Feed Applications 

Vision Scientific & Engineering brings to the region an array of solutions for food, beverage, animal feed and packaging industry. With a wide portfolio that includes some of the biggest brands from across the globe such as Bruker (Germany), Analytik Jena (Germany), Malvern (UK), XRite (USA), VWR (UK), Vision Scientific has offices in Kenya, Uganda, Ethiopia, Nigeria and Ghana.  In collaboration with our suppliers, we provide cutting edge solutions for: 

Food Safety & Quality Analysis

Molecular Analysis

Mass Spectrometry & Separations

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For more information please contact Subash Ambidy on +254 731 538240 or Samuel David on +254 776 007 259

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ADVERTORIAL inspection and the identification of trapped product within the seal of a package to ensure safety and freshness of the product. This last check is an important health and safety benefit that should be conveyed to buyers of frozen burger patties. 
Reject systems used in conjunction with product inspection systems can also be custom designed to suit a wide variety of applications. These provide a further level of protection against wastage as less good product is removed once a contaminant is identified on the line. Conveyers will also be scrutinised ahead of installation to ensure there are no points in the inspection process where good product could potentially be lost and wasted.

 Hygienic design is a must for meat Given the environment in which meat is processed and packaged, food safety regulations require very strict and often harsh wash-down to be carried out on all production line equipment. Compliance with food safety and quality standards such as BRC, IFS, FSSC 22000 or SQF is vital. The systems should also be designed to meet European Hygienic Engineering & Design Group (EHEDG) and National Sanitation Foundation (NSF) hygienic design guidelines. 
 This means that systems are easy to clean and are of full stainless steel construction. Surfaces are designed to be smooth, with no sharp angles, therefore reducing the risk of harbourage of unwanted matter that could cause bacteria to build up. Where appropriate, systems should also be complaint with IP69 ingress protection ratings, meaning they can be washed down using high-pressure washers and chemicals with no risk of damage to the electronics. 
By installing a system that has been designed for use in a harsh environment, such as a meat processing plant, manufacturers can be assured that biological and chemical contamination risks are reduced, regulatory requirements are satisfied, and that the systems will stand the test of time due to the rugged design and construction. 
 
 Identifying the correct system will pay dividends 
 There are many different applications in the meat and poultry industry and it is vital to select the correct inspection systems based on both production and regulatory requirements. By working with an expert supplier of product inspection systems, manufacturers can be assured that the best possible solution can be found without exception Neil Giles - Marketing Communications Manager, Mettler-Toledo Product Inspection Division FOODBUSINESSAFRICA.COM

Neogen Develops Line of Aqueous Lateral Flow Mycotoxin Tests Neogen recently developed a new line of lateral flow mycotoxin tests featuring an aqueous extraction. Tests will be available for six mycotoxins and a common extraction process will enable testing for six toxins using just one sample. On-Site Mycotoxin Testing Within the cereal, pet food, milling and grain industries, on-site mycotoxin testing plays an important role in preventing mycotoxin contaminated grains being stored or processed for food and feed. Tests are often carried out soon after the harvest to allow batches to be separated according to their mycotoxin levels. Depending on the level, these batches will go on to be processed for food, animal feed or industrial use. Since samples for these initial tests are not analysed in a lab but at every day locations such as on farms, at mills or at silos, easy-to-use, rapid onsite tests are essential to incorporate the testing procedure smoothly into the processes onsite. Traditional Lateral Flow Tests Lateral flow tests are user-friendly, require very little training and provide quick results, which is why they have become an established method in the cereal, pet food, milling and grain industries to conduct on-site mycotoxin tests. The lateral flow tests that are currently most widely used have, however, one distinct disadvantage: they require ethanol or methanol to be used in the sample extraction process. Both substances are harsh chemicals that can cause health problems for the person handling them and therefore require safety procedures to be followed during the extraction process and a proper disposal, suitable for hazardous waste. Water-Based Extraction To eliminate the need to use either methanol or ethanol during the sample extraction process, research and development efforts recently have focused on developing tests that use water-based extraction methods. These aqueous tests require distilled or deionised water instead as part of the process to extract the sample, which means that protective clothing and proper waste disposal become obsolete, simplifying the use of lateral flow tests even further. Additionally, using distilled or deionised water reduces the overall costs of carrying out the test, as it is significantly less expensive than ethanol and methanol. Neogen’s Reveal® Q+ MAX Line of Aqueous Lateral Flow Tests Neogen recognises the advantages when using aqueous tests and has therefore developed a new line of lateral flow assays. This new line of Reveal Q+ MAX tests for mycotoxins use a water-based extraction offering all the benefits of an aqueous extraction described above. This line will include tests for six major mycotoxins with the tests for aflatoxin, ochratoxin, T-2/HT-2 and zearalenone already available and the tests for fumonisin and DON coming soon. All tests will use a common water-based extraction method, allowing users to test for all six mycotoxins from only one extracted sample. Traditional tests require the extraction of different samples for every mycotoxin to be tested for. Because the sample extraction is the most time-consuming aspect of the overall testing process, Neogen has reduced the time spent on this step by developing a common water extraction. If a batch of cereals is supposed to be tested for all six mycotoxins, this can now be done by simply using one sample instead of six. Additionally, all test kits can be stored and carried out at room temperature. This facilitates storage and saves time when conducting the test compared to assays that need to be stored in the fridge and require an incubation step during the testing procedure. In addition to the benefits mentioned above, every test has individual advantages that distinguish it from the rest. Reveal Q+ MAX for Aflatoxin This test offers unrivalled cross-reactivity for the four major aflatoxins, B1, B2, G1 and G2. Reveal Q+ MAX for Ochratoxin This is the first lateral flow test with an aqueous extraction for ochratoxin and the first lateral flow test that has been validated on green coffee. It is also validated on other commodities including wheat, rice, sorghum, barley, oats, corn and wheat bran. Reveal Q+ MAX for T-2/HT-2 The test kit for T-2/HT-2 offers an unmatched testing scope, as it has been validated on corn, wheat and oats. Reveal Q+ MAX for Zearalenone This kit provides the fastest overall testing time using a lateral flow test with an aqueous extraction for Zearalenone. Reading the Results Alongside lateral flow tests, Neogen also offers a reader for accurate and objective interpretation of Neogen’s lateral flow devices. The portable AccuScan® Gold reader can be used on-site where the lateral flow tests are carried out and provides consistent results. Conclusion The new Reveal Q+ MAX kits from Neogen will simplify on-site mycotoxin testing. The aqueous extraction eliminates hazardous chemicals from the testing procedure, creating a more user and environmentally friendly test. The same sample can be tested for six mycotoxins which reduces the total testing time. Overall this new range provides an easy-to-use, environmentally friendly, rapid test option for anyone looking for on-site mycotoxin tests. FOOD BUSINESS AFRICA | MAR/APR 2017 35


COMPANY FOCUS: OLAM

Olam in Africa – Grain Trader Zeroes in on Africa’s Packaged Food Market

Olam

With its origins in Africa, Olam International is a well-known commodity trading company. The company’s recent aggressive foray into food, milling and feed processing in Africa points to a company that will be a major player in the Continent’s packaged food industry going forward

O

lam International’s announcement of its acquisition of Archer Daniels Midlands (ADM), an American conglomerate’s, cocoa business in late 2014 for US$1.2 billion, Olam’s largest ever acquisition, must have caught many observers by surprise. For a company that started its operations in Nigeria in 1989, originally to export cashew nuts from Nigeria to India, the ascendance of Olam to the top of the cocoa origination and processing line with the buying out of ADM’s stake in the lucrative cocoa business seemed extraordinary. Not many African-based

businesses in the agro, food and beverage industry have managed such a feat. With operations in all the continents of the World, from Brazil, Russia, Nigeria, Tanzania, India and Australia more than 60 other countries from its base in Singapore, and with global leadership positions in a number of food commodities such as nuts, cocoa, spices and vegetable ingredients, coffee and rice, Olam has spread its tentacles from its early days as a grains trader into the food processing business in Africa over the last few years that provides a glimpse into the

Table 1: Key metrics attract Olam to Western Africa’s packaged foods industry Attribute

Nigeria

Ghana

Senegal

Cameroon

Population (million)

160

26

14

21

Wheat imports (‘000 MT)

4200

520

540

500

Urbanisation rate (%)

Wheat flour consumption per capita (Kg)

Growth rate of flour consumption per year (%)

Source: Olam 36

MAR/APR 2017 | FOOD BUSINESS AFRICA

52

16.9 3.9

53

11.4 5.5

43

19.2 5.8

61

18.6 5.4

company’s strategic plans for the future. Changing the face of milling sector in Western Africa With its acquisition strategy executed through a buy-streamline-grow process, Olam focused on Western Africa to begin its foray into Africa, with Nigeria, Africa’s most populous and number two economy, being the first port of call to lay down its strategy. The company has identified the grains sector as one of the six prioritised platforms for investment and accelerated growth. “We have in the recent past outlined our strategy to build a configuration of port-based wheat milling facilities in Africa. Nigeria, being one of the largest wheat importing countries in the world, is our priority anchor market for executing this strategy,” KC Suresh, the current Managing Director and CEO of Olam Grains business, said during the acquisition of Crown Flour Mills (CFM), which Olam acquired in 2010, making its first foray into the flour milling business in FOODBUSINESSAFRICA.COM


A test baker scores bread loaves in an Olam milling facility | Olam

sub-Saharan Africa. According to Suresh, Nigeria is a high growth milling market with volumes expected to reach five million metric tonnes in 2020 due to population growth and urbanisation that will increase the demand for wheat-based products. The size of the Nigerian flour market is over US$2 billion, growing at 3.5% per year and the pasta market is expected to grow at 8.0% per year according to Olam. It is this market that Olam is investing in, with a focus on the future. The acquisition of CFM was significant in the company’s quest to expand its scope into the packaged food industry. The US$107.6

Olam’s grain silos in Port Tema, Ghana | Olam FOODBUSINESSAFRICA.COM

million deal for the number three miller and processor of bread flour, noodle flour, semolina and noodles in Nigeria gave Olam access to two port-based wheat milling facilities in Lagos and Warri with total installed capacity of 1,550 metric tonnes per day (TPD). “With more than 40 countries in SubSaharan Africa to choose from, we prioritised locations for wheat milling based on a wide range of market factors. These include market structure and size of the market, population, demographics, level of urbanisation, government policies, and the level of development of the food sector, including downstream business. Nigeria, as the most populous country in Africa and the largest wheat importer in Sub-Saharan Africa, was a natural place to begin our milling journey,” says Saurabh Mehra, Senior Vice President & Global Head, Milling, Olam Grains. The company has since the 2010 deal built the business to become the second largest miller in Nigeria, expanding the capacity of the CFM facilities further in 2013, increasing its Nigerian milling capacity from the original 480,000 MT per annum by 50% to 720,000 MT per annum. To consolidate its position in the country, Olam announced another significant acquisition in the milling sector. The US$275 million acquisition of the milling and pasta manufacturing assets of the BUA Group in late 2015 through the purchase of Amber Foods Limited, more than doubled Olam’s milling capacity in West Africa from just 1m tonnes to over 2.15 million tonnes per annum, increasing the miller’s total capacity in Africa to 7640 TPD. Amber Foods, one of the top five millers in the country, had an installed capacity of 3,760 and 700 metric TPD, respectively for wheat milling and pasta processing at the time of acquisition by Olam, increasing the company’s wheat milling capacity to 6140 TPD from 2380 TPD. The company acquired

“We prioritised locations for wheat milling based on a wide range of market factors. Nigeria, the largest wheat importer in subSaharan Africa, was a natural place to begin our milling journey” Saurabh Mehra, Senior VP & Global Head, Milling, Olam

a number of assets during this deal: two wheat mills and a pasta manufacturing facility in Lagos, a non-operating mill in Kano in the Northern part of Nigeria, and a wheat mill and a pasta manufacturing plant which was under construction during the acquisition in Port Harcourt, southeast Nigeria. This deal also consolidated Olam’s position as a leading pasta manufacturer in Nigeria. “Wheat-based products, such as pasta, have grown in popularity among Nigerians due to changing tastes, the gradual rise of convenience and, for many, as an affordable option to meet carbohydrate requirements,” said Anurag Shukla, managing director of Crown Flour Mills. Investing beyond Nigeria With a plan to grow and consolidate its investments near major ports in the region, Olam has since invested beyond Nigeria, with the miller getting into green field milling operations in Ghana in 2012, Senegal in 2014 and in Cameroon in 2015, with each of the mills having an annual capacity of 150,000 MT. The three countries, major economies in their own right in West Africa, are critical in Olam’s future plans for the region, as it also expands beyond its grain trading business into FOOD BUSINESS AFRICA | MAR/APR 2017

37


COMPANY FOCUS: OLAM Table 2: Olam has upped its investments in the region to tap growing demand

milling and into other value added products. “These three countries have similar market characteristics – 500,000 MT of wheat imports, oligopolistic structure and surrounded by countries that do not have a robust milling industry. We view each of these operations as a regional milling hub, focused not only on supplying the incountry consumers, but also the neighbouring countries like Benin and Togo (from Ghana), Chad and Central African Republic (from Cameroon) and Mali and Guinea Conakry (from Senegal). Such a market cluster approach allows us to play with significantly better economies of scale and achieve full utilisation at a faster pace,” explains Suresh. Olam’s goal of grabbing the wheat milling industry in the four countries is driven by a number of key considerations: vibrant and fast growing demand, rapid rise in urbanization and population and rising incomes. Nigeria, the continent’s most populated country offers mouth watering prospects with its over 160 million people and low wheat flour consumption of just 16.9 kg per capita, compared with say, South Africa which consumers over 60 kg per capita, offering not just more mouths to feed into the future, but also vast opportunities to increase the consumption of wheat flour at every household. The other countries’ per capita consumption of wheat is still also low, with Ghana (11.4 kg per capita), Senegal (19.2 kg per capita) and Cameroon (18.6 per capita) according to Olam. The four target countries with a total population of 221 million, and rising urbanization, which currently hovers about 50%, except for Cameroon, which has 61% of its population already living in urban areas, indicate that Olam’s focus on the region will not be in vain. With a projected growth in wheat flour demand over the 2013-18 period of 3.9% in Nigeria, 5.5% in Ghana, 5.8% in Senegal and 5.4% in Cameroon, the region offers a high growth prospect for Olam.

Year

Country

Added milling Milling Capacity capacity (metric per year (metric tonnes per year) tonnes)

2010

Nigeria (entry)

-

480,000

2013

Nigeria (expansion), Ghana

240,000

870,000

2012

2014

2015

2016 2017

Nigeria, Ghana (entry)

150,000

Nigeria, Ghana, Senegal (entry)

Nigeria, Ghana, Senegal, Cameron (entry) Nigeria (post Amber Foods’ acquisition), Ghana, Senegal, Cameroon Nigeria, Ghana (expansion), Senegal, Cameroon

630,000

150,000

1,020,000

150,000

1,170,000

980,000

2,150,000

150,000

2,300,000

Source: Olam

Since entering the wheat milling industry through the Crown Flour Mills acquisition in 2010, Olam has continued to add extra capacity, with each year the miller adding a minimum of an extra 150,000 MT per annum through the above green field investments, acquisitions and also critically expansion projects in Nigeria in 2013 which added an extra 150,000 MT per annum. According to Olam, it’s set to double its Ghana capacity to 300,000 MT per annum through an expansion project. The Olam advantage To succeed in West Africa, Olam has leveraged on its origination and global wheat sourcing and freight management capabilities, relying on its strong footprint in the distribution of food staples such as rice, sugar, dairy and packaged foods to extract synergies from customer, channel and cost sharing. Challenges in operating in the region still exist, with access to foreign exchange and poor port infrastructure standing in the way of Olam to deliver its promise. Its global scale and access to forex, working capital, efficient ocean transportation and port land to build mills and storage has been critical to the miller’s operational success. With

“Running and building better, more efficient plants has been our key differentiator. Our mills are world-class and produce quality products at a lower cost than the rest of the industry” Managing Director & CEO, Olam Grains

massive scale of the operations, with the miller targeting to process 2.3 million MT per annum in 2017, and most of the wheat imported into the countries of operation, Olam has its work cut out. “Our global Grains franchise has addressed and overcome these barriers to entry. Our wheat milling strategy is differentiated by the fact that we source and export wheat from major producing regions such as North and South America, Europe and Australia into importing countries in Africa and the Middle East, as well as managing all the risks across the entire supply chain. Through our global network we source wheat from different

OLAM IN NUMBERS

$275M

VALUE OF OLAM’S BUY OF AMBER FOODS IN 2015

600,000

800,000

OLAM’S RICE PROCESSING CAPACITY IN NIGERIA IN TONS

CAPACITY OF NEW FISH & POULTRY FEED PLANTS IN NIGERIA 38

MAR/APR 2017 | FOOD BUSINESS AFRICA

2010

YEAR OLAM ENTERED MILLING INDUSTRY IN AFRICA

2.3

MILLION

OLAM’S INSTALLED MILLING CAPACITY PER YEAR IN WEST AFRICA BY END OF 2017 FOODBUSINESSAFRICA.COM


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origins and generate efficient blends for producing flour. Within that supply chain we have also optimised our cost of carry by developing new capabilities in chartering bulk vessels. Our ability to manage larger vessels supports our growing volumes and helps reduce our overall cost of freight,” says Suresh. At the operational level strong execution on the ground has been crucial to Olam’s success in the region. “Running and building better, more efficient plants has been Olam’s key differentiator. Our mills, including our oldest mill which is 30 years’ old, are worldclass and produce quality products at a lower cost compared to the rest of the industry,” adds Suresh. The company has overhauled and boosted the performance of the Crown Flour Mills and the Amber plants ‘to improve downtime, capacity and quality of output’, with the installation of standard processes including SAP to standardize operations in the four countries. Growing footprint in other food and feed businesses To take advantage of its sourcing and trading operations around the World, Olam has extended its packaged foods manufacturing operations into the tomato, dairy, edible oils, rice and biscuits in the region. In the tomato paste business, a US$500 million business potential in Nigeria, the company launched Tasty Tom, De Rica and Festin brands of tomato sauce that are also available in several west African countries. In the biscuits segment, the company has recently commissioned an expanded factory with the addition of a third production line at its Nutrifoods Ghana plant, jointly owned by Olam (75%) and Sanyo Foods of Japan (25%). With a market share of 30% in the important Ghanaian market, the company could use the experience in the country to grow its influence in the segment beyond Ghana. In the edible oil sector, Olam sells its Tasty Tom and Festin brands in several countries. As one of the top five biggest dairy ingredients suppliers in the world, in West Africa, Olam is not only a supplier but has also has branded consumer products in several countries in the region. In the rice segment, Olam is a major grower and processor of rice in Nigeria, with capacity of 800,000 MT per year. It is developing a 10,000-hectare rice farm and mill in Nasarawa state, Nigeria. In the animal feed sector, Olam is taking advantage of a rising demand for animal feed, announcing an investment of US$150 million in two feed mills, poultry farms and a hatchery in two states – Kaduna and Kwara. The two integrated poultry and fish feed plants have a combined capacity of 600,000 according to Olam

ABOUT OLAM INTERNATIONAL With its origin in Africa, originally to source and supply cashew nuts in Nigeria for sale in India, Olam has grown to be one of the biggest agribusinesses. Olam was co-founded by current CEO, Sunny Verghese, Olam operates in five key business lines: Edible Nuts, Spices & Vegetable Ingredients; Confectionery & Beverage ingredients; Food Staples & Packaged Foods; Industrial Raw Materials and Commodity Financial Services. Based in Singapore and listed at its stock exchange, Olam has over 200 processing plants and is owned by owned by Temasek Holdings (52.3%), a wealth fund owned by the Government of Singapore, and by the Mitsubishi Corporation (20.3%). The company is the world’s biggest supplier of key commodities: dehydrated onions and garlic, and cashew nuts. It is the second largest supplier of coffee and rice. FOODBUSINESSAFRICA.COM

Company description Pembe Group has over the years grown to be one of the leading grain milling and animal feeds manufacturers with plants spread across Eastern Africa. Pembe Feeds is a strategic business unit established by Pembe Group and is recognized for its consistent quality and performance. They began manufacturing feeds within Nairobi’s Industrial Area in 1997. The company kicked off with a small mill and in 2006 a new feed mill was installed with a capacity of 10 tonnes per hour (t/h). In 2015 Pembe Feeds commissioned a new automated and state of the art 360 tons per day feed mill from Buhler. This expansion was key to serve the growing demand of Pembe Feeds. Buhler is proud to be associated with the biggest key player in the dairy, poultry and horse feed industry in the region. Pembe Feeds designs, formulates, manufactures and distributes high quality animal feeds to its customers. The importance of quality is captured in its mission statement, which states, “To manufacture the highest quality of animal feeds and achieve the utmost level of customer satisfaction that meets world class standards.” Pembe Feeds recognizes the key role farmers play in the agricultural sector and thus include this aspect in their vision statement which states “Being the region’s leading animal feeds manufacturer that efficiently produces quality animal feeds and to help farmers maximize their returns.”

Features and benefits of the new feed mill The 360 tons per day feed mill produces mash and pellets. The features and benefits of the new feed mill are: Cleaning process - The new feed mill is equipped with a cleaning process, improving the quality of processed feeds. Proportioning system - Multiple proportioning bins of various sizes and a high precision scale fed by accurate dosing elements guarantee a high level of efficiency and dosing accuracy. With a fully automatic Buhler micro-dosing system, Pembe Feeds is able to dose the premixes and vitamins accurately, eliminating human error. The plant is able to produce consistent quality feeds. Post-grinding process - Two vertical hammer mills from Buhler enable the plant to achieve grinding capacity and uniform particle size distribution. No aspiration is required with this grinding system, reducing energy requirements. Beaters and screen can be changed in under 5 minutes. An oscillating sieve above the hammer mills allows fine products to bypass the hammer mills, reducing the energy requirement. Mixing system - The plant achieves a homogeneity Coefficient of Variation (CV) of ≤ 5%. Molasses addition of up to 12% is possible. Pelleting system - The plant is able to produce pellets with a high Pellet Durability Index (PDI). Automation - The plant is fully automatic thus human errors are kept at minimal. Cross contamination is eliminated by use of Buhler Litecos control system. Labor requirement is minimal. Image: Buhler pellet press AHHC for high quality feed pellets Buhler Limited Nairobi, Kenya Contact: +254 720 180 011/+254 775 180 011/12 Email: buhler.nairobi@buhlergroup.com Website: www.buhlergroup.com/feed FOOD BUSINESS AFRICA | MAR/APR 2017

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Brookside introduces Fruitness premium yoghurt

CONTENTS DAIRY NUTRITION & HEALTH 41

SUGAR REDUCTION The basics of making dairy products that meet rising demand for lower sugar products

PRODUCT FOCUS 44

DRINKING YOGHURT We profile one of the hottest dairy products in AFRICA

IN THE NEWS 46

46 47 47

India introduces milk processing and infrastructure fund to boost milk production Arla turns up investment drive to boost profitability Brookside introduces Fruitness premium yoghurt Ben Langat becomes CEO of FrieslandCampina WAMCO

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Sugar Reduction in Milk Products:

The fundamentals of boosting health profile of dairy products through sugar reduction Sugar reduction is one of the ways to make dairy products meet rising consumer focus on health and wellness. Options exist for dairy processors to reduce sugar while maintaining taste and texture.

A

ccording to most consumers, milk is the perfect food. With its perfect blend of carbohydrates, protein, fat, vitamins and minerals, milk has a distinct and unique place in the eyes of the consumer. However, with changing consumer attitudes towards sugar (by sugar we mean cane or beet sugar, or sucrose in this article) - milk products like yoghurt and flavored and/or sweetened milk and ice cream products that include sugar in their formulations - dairy producers must beware that sugar reduction, be it total elimination or a reduction in quantities, could be a way to provide choice to consumers without alienating a growing part of the population. Sugar continues to receive the bashing not only from consumer health proponents, but also consumers, with studies linking sugar

with the obesity epidemic and associated health concerns, making sugar to be the ‘new fat’, as focus shifts from fat as the leading cause of these health issues. Changing dietary guidelines on sugar Milk is not sugar free. Lactose, a disaccharide that is present only in milk, forms the bulk of the 4.9% carbohydrate content of milk and imparts the mild sweet taste that is associated with milk. With the bulk of sweetened yoghurt, milk, flavoured milk and ice cream having added sugar, on top of the inherent lactose, dairy processors cannot hide behind the veneer of milk being a healthy product, as they face the same challenges as other processors of sweetened products, notably the beverage sector. Other sources of sugar in dairy formulations include milk powders and

DAIRY BUSINESS AFRICA | MAR/APR 2017

41


PRODUCT FOCUS: DRINKING YOGHURT

IN FIGURES 23 GRAMS

DANONE’S TARGET FOR TOTAL SUGAR PER 170 GRAM SERVING FOR ITS PRODUCTS BY MID 2017 that consumer acceptance is key to the success of the initiative, as customers value taste of the products, and may not accept a new formulation, however healthy the product is. The following pathways could be used as avenues through which to reduce sugar in dairy products.

Recent research shows that 28% of the consumers in Middle East & Africa are looking out for low sugar food and beverage products Nielsen

other products. The recent changes in the Dietary Guidelines 2015-22, which are guidelines published for Americans in order to lead a healthy life, but which are adopted by many countries around the world, has two critical recommendations on sugar: in the ingredients listing, companies are required to show the quantity of added sugars, separately from the total sugars; and a recommendation that added sugars should not be more than 10% of the total dietary calorie intake. The World Heath Organisation, the UN body has also made strong recommendations to limit sugar in the diet to 10%, with a conditional guide to lower this further to 5%. Consumer sentiment towards low sugar products is strong in Africa, with the Nielsen Global Health and Ingredient - Sentiment Survey 2016 showing that 28% of consumers in Africa and Middle East seeking low sugar food and beverage products. In a recent DSM - a leading ingredients supplier - consumer survey, more than 60% of respondents reported that they are concerned about the amount of sugar in their dairy 42

MAR/APR 2017 | DAIRY BUSINESS AFRICA

products. Between 2009 and 2014 global sales in sugar-reduced dairy grew 14%, and many more sugar-reduced options have landed on grocery store shelves since. Although the subject of sugar reduction seems not to have been given prominence (and press coverage as the one on beverages) a number of leading dairy producers, including Nestle and Danone, have made commitments and have reported successes in reducing sugar in their formulations or launching reduced calorie products to meet WHO guidelines on sugar. Nestle reports that by 2015 it had lowered the sugar in its Lactalis Nestlé chilled dairy yogurts and fromage frais products, with the removal of 1.37 billion calories, 51.7 tonnes of sugar, and 9.8 tonnes of saturated fat through reformulations. Dannon, the US based franchise of leading French dairy group Danone, has a commitment to reduce the amount of total sugar to 23 grams or less per 6-ounce (170g) serving in 100% of its products for children and 70% of the company’s products overall by mid 2017, having achieved 76% of the goal by end of year two. Options for sugar reduction in dairy Sugar replacement in dairy products must be a strategic plan by the dairy. Key decisions to consider include if the dairy would like to have a line of products with reduced or no sugar in them or to look at a staggered reduction across the entire range of products. Whichever path is taken, sugar reduction requires the dairy to be cognizant of the fact

Sugar replacement the natural way The best option to reduce or replace sugar, and retain the healthy image of milk products is the use of natural alternatives to sugar. According to the DSM consumer survey, 48% of respondents said ‘taste’ was their reason for not purchasing a sugar-reduced dairy product, and 36% said their reason was due to concerns about artificial sweeteners or additives. This is where stevia and other alternative natural products step into the picture. Extracted from natural sources, stevia provides intense sweetness without calories while not affecting blood glucose or contributing to tooth decay. Stevia can be used to partially or totally replace sugar on its own or with a mix with sugar or other sweeteners. Resistant to high-temperature treatments, including UHT treatments, and storage od the end products at room temperature, stevia lends itself as a good alternative in yoghurts, flavoured milks and ice cream products. The other alternatives include fibre sources including inulin, which not only impart sweetness, but also contribute dietary fibre to the dairy product. The other natural way is the application of enzymes, which are naturally derived. According to DSM, the company’s Maxilact family of lactose-free dairy enzymes, offer a 20-50% reduction in sugar through a reduction in the lactose in milk and yoghurt products, providing not only a low sugar end product but a lactose-reduced one as well. Another option for dairy processors is the wwaddition of natural fruits into the product, replacing added sugar with naturally derived

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Food companies often have to take a ‘stealth’ approach to sugar reduction - sugar levels are reduced stepby-step in food products without putting on the label DSM

sources of sugar for those milk products with fruit. With their content of fructose and glucose, fruits offer a natural choice with extra benefits. Dairy companies can take advantage of using natural alternatives to place their products in the market with a ‘naturally sweetened’ tag, enhancing their consumer acceptance and building demand for their products. The alternative sugars pathway Dairy producers have a long list of alternative, high intensity sweeteners that provide affordable replacement of sugar in most of the dairy products. On their own or in blends,

acesulfame K, aspartame and sucralose provide optimal sweetness and flavour impact. Aspartame can be used in fermented products as it is pH stable at low pH, but may degrade in set yoghurts due to the neutral pH and fermentation temperature. However, use of the right fast-acting cultures can reduce the hydrolysis of this sweetener. In ice cream high-intensity sweeteners including acesulfame K, sucralose and neotame, which are not sensitive to pasteurization and withstand storage conditions, can be used to boost sweetness, possibly on top of polyols like sorbitol. Aspartame can be used in ice creams due to the low temperatures of storage, which reduce any chances of hydrolysis of the sweetener. Balance is important Sugar replacement becomes a challenge in dairy products due to the fact that sugar is more than just a sweetener in these products. Sugar has critical functionality in terms of mouth feel and texture, bulking, and has a positive effect on shelf life. Sugar is also important in preventing denaturation of proteins and stabilizes protein foams.

In yoghurt and flavoured milk products pectin and modified starches can be used to build back body lost by the reduction in sugar. In ice cream, bulking agents such as polydextrose or polyols are added to replace the bulking advantage of sugar. Whichever way a dairy takes, DSM notes that food companies often have to take a ‘stealth’ approach to sugar reduction: sugar levels are reduced step-by-step in food products, without it being explicitly mentioned on the label. “This will bring positive long-term health outcomes due to reduced sugar intake, without alienating consumers from brands they know and love. Success with a similar method can be found with bread, where salt levels have been reduced year-over-year without a noticeable taste difference for the consumer, but with a significant public health benefit,” adds DSM

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PRODUCT FOCUS: DRINKING YOGHURT

Tapping into the drink yoghurt market in Africa

Drinking yoghurt continues to grow in prominence in Africa. However, potential for this tasty snack is still enormous, with huge opportunities for innovation in ingredients and packaging formats

Y

oghurt, drink or otherwise is a fairly new product category in Africa, barely existing as a specific product category till into the 1990s, with majority of consumers having their first taste in the 2000s. Drinking yoghurt, a fairly broad category in the Continent if one analyses the products on the shelves in the region, from products that really fit into the ‘drink’ definition, to those that fall between the drinking type to nearly spoonable ones, drive the growth of yoghurt in Africa. Drinking yoghurt is an absolute fit in Africa: a young, mobile and connected population on the go; rising incomes and increasing urbanization and a growing demand for tasty, snack products that meet the convenience tag. Just like the rise of the cellphone and mobile money, convenience and on the go consumption in affordable packaging sizes place drinking yoghurt as one of the product categories that has taken off, almost in the same trajectory as the two issues above. Perfect snack for Africa’s population Just like the Chinese, Africans has taken a liking for drinking yoghurt, with the product taken mainly as a snack. Compared to the Americans who take yoghurt at breakfast and pair it with fruit, the young people of the continent are wont to partake of yoghurt at any time of the day, maybe to replace a meal or as a refreshing drink as they move about their duties. With good quantities of protein, nutrient density and superb taste, drinking yoghurt fits the profile of a perfect snack for all age groups, including children and adults. In terms of nutrition, drink yoghurt’s protein, calcium, vitamin D and potassium content make it a critical part of the diet in the continent to meet the nutritional needs of a rising, increasingly urbanizing population. Picky, young kids seem to have a liking for yoghurt, with the drinking variety a perfect solution to let them enjoy a nutritious snack, even as a snack that can be incorporated into their lunch box, without facing the wrath of the school management, due to the positive perception of yoghurt in general. Dairy companies innovate to meet customer needs The pace of innovations in the drink yoghurt category, though still in its infancy, has increased in the recent past. Improvements in packaging formats and types and formulations

44

MAR/APR 2017 | DAIRY BUSINESS AFRICA

are the avenues through which dairy companies have approached the innovations around this category. Some of the dairies have launched entire brand lines to focus on the category as well. To diversify its yoghurt range, leading premium yoghurt producer Bio Foods, Nairobi, Kenya in 2013 launched Refresh, a low fat drinking yoghurt fortified with vitamins and minerals, which the company calls ‘the functional thirst quencher.’ Available in a handy, on-the-go pack, Refresh was the first true drink yoghurt in the region. The company last 2016 refreshed the pack, with a sleeker, smaller pack that stands out on the shelf. Bio Foods also has a range of probiotic drink yoghurts, including a high fibre version. At almost the same time, Razco Ltd, a Kenyan producer of the Frusion yoghurt brand bought the Ooh LaLa brand from Alpha Group, adding the brand to its Frusion premium spoonable yoghurt. The company has also introduced the region’s first squeezable yoghurt brand in the region, targeting the growing kid demographic. New KCC, Kenya’s oldest dairy cooperative introduced La Yoghurt, a line of drinking yoghurts with fruits some few years back. Further afield, leading South African dairy Clover debuted Sip Up Drinking yoghurt in 2016, as the dairy producer increases it’s offering into the yoghurt category. But the innovators don’t end there. A number of dairy players in the region have made modifications and improvements in their drinking yoghurt packaging. The innovations around packaging, be it in new cup formats and designs and introductions of new flavor options have been introduced at almost all the leading dairies, including Brookside’s recent changes to its Ilara flavoured yoghurt pack. More innovations still needed With a growing demand for drinking yoghurt, dairies have no reason to stick to the tried and tested packaging formats and flavour options that consumers have been used to for years. A young, excitable population that is on the look out for new flavors and tastes and packaging options is a good reason for the dairies to put on their innovations hat on and create new varieties that can bring in new consumers. The reliance of the dairies on strawberry and vanilla as the main flavour options of choice could potentially alienate this new consumer group who are seeking excitement in their dairy products. Packaging innovations remains a critical gap for the dairies out of

To further grow the volumes and importance in Africa, ambient yoghurt offers an alternative that should be an option that should be looked at critically South Africa, just as the lack of innovations around texture and health and wellness. Bottle packaging, handy and convenient has seen a number of companies. Health and wellness offers real opportunities for dairies to offer drinking yoghurts with an improved nutritional profile. These include products with added ingredients including vitamins and minerals, fibre and other innovative ingredients. Lower sugar and reduced/no fat products can also be avenues through which products can appeal to a population increasingly in need of healthier options in their diets. Ambient drinking yoghurt: untapped potential in Africa Challenges with supply chain including lack of cold chain and poor infrastructure in Africa points to the potential that ambient drinking yoghurt could have in the continent. However, this is not the case, with almost all the yoghurt produced in Africa requiring these two critical components that lack in the continent. According to Tetra Pak, the processing packaging equipment and materials maker, ambient drinking yoghurt has taken China by storm since its launch in 2010, growing aggressively and accounting for 13% of the country’s total yoghurt category in 2014, illustrating the scale of opportunity the product presents globally, including Africa. According to Tetra Pak, the market for this variety of yoghurt is expected to grow to US$5.3 billion by the end of 2017. Ambient yoghurt ‘offers similar nutritional value as fermented chilled yoghurt, delivers a delicious taste and can be consumed easily on-the-go as it does not need to be refrigerated. As a result, consumers have been willing to pay more for the product.’ To further grow the volumes and importance in Africa, ambient yoghurt offers an alternative that should be an option that should be looked at critically

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NEWS | INTERNATIONAL POLICY

India introduces milk processing and infrastructure fund to boost milk production INDIA – The Indian government has introduced a Dairy Processing and Infrastructure Development Fund, which aims to provide 8,000 crore Rupees (US$1.2 billion) worth of funding to the dairy industry over three years, according to Financial Express. Established under the National Bank for Agriculture and Rural Development (NABARD), the fund will be used to invest in dairy processing and infrastructure development by facilitating financing of milk processing capacities, thereby helping enhance milk production in the country. Thousands of diaries and cooperatives at the village, district and state levels, which were formed around 30 years back,

require funds to grow their businesses, sais Dilip Rath, Chairman of the National Dairy Development Board (NDDB). Establishment of the fund would lead to enhancement of milk processing capacities of diaries cooperatives, which had been stagnated for last many years, Rath said. “Majority of the 16-odd state level cooperatives came into existence during Operation Flood Mission launched three decades back and since then most of the them have never expanded or modernised,” Rath added. He said that the envisaged NABARD fund would allow cooperatives to access low cost loans for meeting the expenses towards modernisation and ensure supply

of quality milk conforming to the Food Safety and Standards Authority of India standards to the consumers. According to Harsh Kumar Bhanwala, Chairman of NABARD, the dairy cooperative network includes 254 cooperative milk processing units, 177 milk unions covering 346 districts and over 1,55,634 village-level societies. Bhanwala said “the allocation for dairy will allow NABARD to finance modernisation of milk processing units, encourage new bulk milk cooling units, improve milk production and productivity and promote clean milk production.” The funding will commence with a 2,000 crore (US$400 million) in the 2018 financial year.

PEOPLE

Chobani appoints Nestle executive Tim Brown President and Chief Operating Officer

USA – Leading Greek yoghurt processor Chobani has announced that Tim Brown, former head of Nestle Waters North

America has been appointed its President and Chief Operating Officer. Tim, who reports directly to Hamdi Ulukaya, founder, owner, CEO & Chairman of Chobani and will oversee Chobani’s operations, sales, marketing, legal and finance teams as the company looks to further increase its leadership in the Greek yoghurt category in the US, and increasing presence in Canada and Mexico. “(Tim is) an amazing leader with views and values I really respect and believe in. With his deep experience in consistently delivering quality growth, he’s the perfect person to partner with me in continuing to lead the new wave of better food for more people. Chobani’s in a very strong position with greater potential than ever before and

now with Tim joining we’ll grab it,” Ulukaya said. Chobani, which remains independently owned, has announced several product and production expansions in the past year. In May 2016, it announced a $100 million investment to its plant in Twin Falls, Idaho - the world’s largest yogurt manufacturing facility - to meet demand for new and existing products. On the heels of its Chobani “Flip” product success, Chobani also announced its expansion and investment beyond the yogurt aisle with Drink Choban beverage. According to the company, Chobani’s market-share of the overall spoonable yogurt category is currently 19.8%, which translates to 37.6% share of overall Greek Yogurt category.

POLICY

Danone to launch its first global 1,000-day parental policy FRANCE – Leading French dairy and foods group Danone has committed to launch its first Global Parental Policy, an initiative which aims to offer a consistent standard of support to all parents-to-be employed in its facilities across the world. The new policy will, for the first time, offer a common level of support from the start of a pregnancy to the baby’s second year of life, supporting upcoming and new parents and babies by giving them the best start during the first 1,000 days, including offering extended parental leave provisions for women, men and adoptive parents, set it apart from current industry standards, according to the company. “As a global company involving so many FOODBUSINESSAFRICA.COM

diverse communities across the planet, we commit to provide equal opportunities to every woman and man, wherever they live and work in the world. This is a matter of social justice, which is a condition for sustained market economy development,” said Emmanuel Faber, CEO of Danone. The company Parental Policy covers the following elements: pre-natal support – where the company will offer all expectant mothers adapted working conditions, allocated time-off for pre-natal medical appointment and nutritional advice, with a focus on improving and protecting the health of mothers and their babies; extended parental leave – where all employee parents will be offered full-paid time off to bond as

a family and adjust to new responsibilities, including 18 weeks of primary caregiver leave for a birth parent; 14 weeks for an adoptive parent and 10 working days for the secondary caregiver. The policy will also cover post-natal supports, where the company will support breastfeeding practices by providing lactation rooms for mothers at offices, which employ more than 50 women. The company will also offer job protection policies, back-to-work programmes and flexible working conditions for new parents in all markets around the world. The new policy will be gradually rolled out and aims to be fully operational by the end of 2020.

DAIRY BUSINESS AFRICA | MAR/APR 2017

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NEWS | INTERNATIONAL PEOPLE

Former USDA head Tom Vilsack takes U.S. Dairy Export Council CEO role

USA - Former U.S. Department of Agriculture Secretary Tom Vilsack has joined the U.S. Dairy Export Council (USDEC) as president and CEO, effective Feb. 1, 2017, taking over the role after eight years at the vital department under former President Obama.

“I have spent my career in public service as a tireless advocate for farmers and American agriculture and can think of no better way to continue this service than by leading the U.S. Dairy Export Council,” said Vilsack. “I look forward to partnering with the dynamic team at USDEC as well as agriculture, food industry and key stakeholders at home and abroad to advance the council’s mission and strengthen trust in American dairy.” Vilsack will succeed Tom Suber, who served as president of USDEC since its founding in 1995, and retired at the end of 2016. As president and CEO, Vilsack will provide strategic leadership and oversight of USDEC’s global promotional and research activities, regulatory affairs and trade policy initiatives. This includes working with industry leaders to develop a long-term vision for building sales and consumer trust in U.S. dairy. He will serve as the organization’s primary spokesperson

and ambassador to a host of global and domestic stakeholders. “The global dairy market is more competitive today than ever. Ambitious trade agreements, reasonable labeling and product standards, and other issues are vital to the growth of America’s dairy industry,” noted Thomas Gallagher, CEO of Dairy Management Inc., the umbrella organization that represents the interests of U.S. dairy and founded USDEC in 1995. USDEC is a non-profit, independent organization that seeks to enhance the global demand for U.S. dairy products and ingredients. It partners with other dairy industry groups such as the Innovation Center for U.S. Dairy, the International Dairy Foods Association and the National Milk Producers Federation to address the needs of its members, which include producers, processors and cooperatives, ingredient suppliers and export traders.

INVESTMENTS

Arla turns up investment drive to boost profitability DENMARK - Arla has announced to boost its supply chain investments in 2017 nearly 50% more than its announced plan from last year in what the company says is the ‘highest ever single-year investment forecasts’ in its history. The company plans to invest €335 million (US$357m) in its production sites around the world to support its Strategy 2020 by moving more milk from bulk into branded retail sales and foodservice for Europe and emerging markets, compared to €227 million (US$242m) the company had planned for in 2016 Most of the investments will focus on production upgrades that will increase profitability of products sold on core markets like Germany, UK, Denmark, Sweden, the Netherlands and Finland as

well as on production sites that supply dairy products to Arla’s emerging markets outside the EU. With a goal to grow foodservice sales significantly by 2020, the company plans to spend €18 million (US$19m) of this year’s investments into expanding and developing Arla’s production for foodservice customers. It will invest €13 million (US$13.9m) in its Rødkærsbro dairy in Denmark, which is one of the leading mozzarella sites in the world, to improve product quality and expand the site’s production of mozzarella for the international pizza industry. At the Denmark Protein plant near Videbæk, Denmark, it will invest €30.6 million (US$32.6m) on upgrade and expansion of production facilities, including improvements of the site’s protein and lactose processing.

“One of the ambitions in our Strategy 2020 is to be a global leader in natural whey ingredients for food producers in a range of categories – from bakery, beverages, dairy and ice cream to medical, infant and sports nutrition. The investment in our Denmark Protein site is key to meeting that ambition and it will help us build on an already strong and profitable part of Arla’s business,” says vice-CEO and executive vice president of supply chain, Povl Krogsgaard. The company will also invest €12 million in its cream cheese dairy site in Holstebro, Denmark to introduce new, innovative packaging designs for its spreadable cheese; and also spend €5 million (US$5.3m) in better energy efficiency
across all sites and invest €22 million (US$23.5m) on production rationalization initiatives.

NEW PRODUCTS

Fonterra introduces low-lactose milk powder NEW ZEALAND - NZMP, dairy processor Fonterra’s ingredients business, has launched low lactose instant whole milk powder, which contains less than 2% lactose to meet the needs of lactoseintolerant consumers. “Milk powders play a vital role in providing nutrition for a growing proportion of the world’s population. Although demand for dairy in developing countries is rising, lactose intolerance has kept 46

MAR/APR 2017 | DAIRY BUSINESS AFRICA

many consumers in countries from Asia to South America from benefitting from dairy’s goodness and taste,” said Fonterra Consumer Powders Category Director NZMP Marketing Andrew Maude. “The main reason people avoid dairy is because they feel bloated after drinking milk. But if you have a problem with lactose, you don’t have to give up dairy to avoid feelings of discomfort. Low lactose milk means you can keep drinking and enjoying

milk,” Fonterra General Manager Nutrition Angela Rowan said, adding that people who identify as lactose intolerant don’t think they can have milk and that means they are missing out on the full package of nutrients that milk provides. The NZMP Low Lactose Instant Milk Powder ingredient enables consumer milk powder manufacturers to capitalize on the increasing consumer demand for low lactose foods. FOODBUSINESSAFRICA.COM


NEWS | AFRICAN NEW PRODUCTS

Brookside introduces Fruitness premium yoghurt KENYA – Kenya’s leading dairy processor has introduced a new line of products to meet the rising demand for premium yoghurt in the market. Fruitness is a range of premium yoghurts, which contain real fruit and have no preservatives and artificial colors. Available in unique cups that stand out on the shelf, the yoghurt is thick and creamy in texture to meet the needs of the consumers. Fruitness yoghurt is available in strawberry, mixed berry and vanilla flavor variants and is packaged in 100, 150, 250 and 450ml cups. “What makes Fruitness yoghurt so unique is the combination of Kenya’s premium fresh milk and delicately picked fruits, which are then carefully folded into the yoghurt ensuring an intensive flavor and a premium taste experience. The yoghurt is made for health conscious individuals with an appetite for high quality and nutritious snack,” says the Brookside Brand Manager, Linda Capwell. “Increasing health consciousness and

rising disposable incomes, particularly among middle-income consumers, will continue to support the positive development of yoghurt and sour milk products in Kenya,” notes leading consultancy company Euromonitor in its November 2016 report. Brookside is set to capture more of the growth in this category, adding onto its leading position in yoghurt and sour milk category, where it has a 33% value share, according to the report. The addition of Fruitness to its staple

of products comes a few months after the dairy repackaged its value brand Ilara in new cup packaging, followed by a massive marketing campaign that shows the dairy could be set to aggressively fight for this category into the near future, considering that leading dairy and food company, Danone, which owns 40% of Brookside, a leader in nutritious dairy products, is a strong innovator in dairy products, some of which are not yet available in the region.

PEOPLE

Ben Langat joins FrieslandCampina WAMCO Nigeria as MD NIGERIA - Ben Langat, the former CEO of Nigerian Bottling Company, has been appointed Managing Director of leading Nigerian dairy company, FrieslandCampina WAMCO Nigeria PLC. Langat was the Managing Director of Nigerian Bottling Company Limited, a subsidiary of Coca Cola Hellenic Bottling Company, where he led major business transformation, route to market plan

growing volumes and market share and delivered double digit growth despite economic challenges, according to a statement. He also held the position of Finance Director at the company, before rising to the MD level. Langat will report to Roel van Neerbos, Chief Operating Officer, Consumer Products Europe, Middle East and Africa, and will be based in Lagos, Nigeria. He has over 24

years work experience spanning various senior management roles in Unilever Kenya, Malawi and Ghana. Langat, a Kenyan with strong accounting background, succeeds Rahul Colaco, who has taken over the Executive Director, Business Group China for the Royal FrieslandCampina dairy group

AWARDS

Woolworths Mature Gouda wins top dairy award SOUTH AFRICA - Parmalat’s Mature Gouda (10 months) made for Woolworths took the coveted position as the 2017 South African Dairy Product of the Year at the Agri-Expo Qualité Awards Gala. Parmalat’s Mature Gouda cheese product is an aromatic and full-flavoured cheese, follows in the footsteps of the company’s 6-month matured Gouda that won this prestigious title in 2006. It won in a competition that had 854 products from 83 producers vie to win the hotly contested awards. This year, the organisers added new categories for pasteurised milk and UHT milk, expanding the scope of the awards. Sixteen products were honoured with the Qualité mark of excellence and 95 were

FOODBUSINESSAFRICA.COM

named SA Champion, which were sampled and judged by 74 judges who range from food technologists to cheese retailers, and food bloggers to chefs. “We are only too aware that not all milk are created equal and we were pleasantly surprised by the quality of entries we received,” said Johan Ehlers, Agri-Expo CEO. “The judges chose to award four milk products with the title of SA Dairy Champion: Clover for their Prisma UHT Full Cream and UHT Low Fat, Fairfield Dairy’s Woolworths Pasteurised Milk (Low Fat – Ayrshire), and the Woolworths Ayrshire Full Cream Milk by Rhodes Food Group.” Goat milk got prominent presence during this year’s show, with five of the new entrants

showcasing goat’s milk products, indicating a steady growth in this niche product range.

DAIRY BUSINESS AFRICA | MAR/APR 2017

47


SUPPLIER NEWS INNOVATIONS

Tetra Pak debuts two new on-the-go packages to drive convenience trend SWEDEN – Packaging leader Tetra Pak has extended its range of products in the fast growing on-the-go beverage market with two new portion size packages. The Tetra Prisma Aseptic 200 and 250 Edge with DreamCap 26 join the company’s Tetra Prisma® Aseptic 330 ml with DreamCap, offering consumers smaller size options with the same re-sealable one-step closure for an optimised drinking experience. According to Tetra Pak, more than 40% of global consumers are snacking while onthe-go at least once a week, with fortified milk, drinking yogurt and energy drinks among their favourite choices. The company plans to have the new packages meet the needs of consumers who find the 330 ml size too big for their appetite. The company says that there is a huge market potential for portion packages under 250 ml, with worldwide demand anticipated to grow to 72 billion litres by 2019, up 10% from current volumes, according to the company’s studies.

“Our customers need packaging solutions that can help them capture opportunities and maximise growth. Bringing two new packages to join the highly successful Tetra Prisma Aseptic 330 ml DreamCap is our latest answer to help them exploit the huge potential of the on-

the-go market. We are very pleased to have already seen success with the early adopter customers,” Charles Brand, Executive Vice President Product Management and Commercial Operations at Tetra Pak said.

COMMUNICATION

Bosch launches microsite for confectionery, bakery and snack producers

GERMANY – German technology manufacturer Bosch Packaging Technology has launched an online information platform featuring its value enhancing complete system solutions for the confectionery,

bakery, nuts, snacks and powder industries. The new microsite, allows food and nonfood producers to find an optimal system solution for their specific application to address the growing market need for complete system solutions. “Our goal is to help customers navigate the complex world of packaging solutions”, says Leon van de Wiel, general manager at Bosch Packaging Technology in Weert, Netherlands. To achieve this, we built upon our decades of experience and developed standardized

system solutions to add value to confectionery, bakery, snacks and powder operations. The new microsite allows producers to easily review their options and identify an ideal solution, while also benefiting from a single point of contact during the quotation, planning and installation phases. In addition, the ‘Insights’ section provides expert opinions on the common challenges faced by producers when selecting and running packaging equipment.

PEOPLE

tna appoints new head to lead processing portfolio AUSTRALIA – Leading processing and packaging solutions provider tna has announced that it’s made an additional key appointment to its growing team of food processing experts, further cementing the company’s position as a provider of startto-finish solutions. Carel Pfaff joins the team as Group Product Manager – Processing to head up tna’s processing portfolio, including the company’s FOODesign and Florigo range of innovative pre-processing and highperformance frying equipment. Based in tna’s Woerden facility in the Netherlands, Carel will work closely with 48

MAR/APR 2017 | FOOD BUSINESS AFRICA

tna’s engineers and global sales team to further develop the company’s processing portfolio, capabilities and services.

As part of his role, Carel will be managing new product development processes, training tna’s global sales team and supporting tna’s customers with his market insights, technical know-how and performance-driven strategies. Having started his career in Florigo’s engineering department, Carel previously held positions as sales manager at some of the leading food processing companies like Kiremko and bakery and confectionery equipment manufacturer Haas-Mondomix, providing him with experiences in both the potato snack and baked goods industry. FOODBUSINESSAFRICA.COM


N UT R I T I O N , HEA LT H & W ELLNESS | FOOD T R END S | CULINOLO GY

CONTENTS CHALLENGE OF OUR TIMES 49

DIABETES IN AFRICA -

Why diabetes is a cause for concern in Africa and how food and beverage companies can contribute to reducing the impact of the disease

IN THE NEWS

52

Health agency releases sugar reduction guidelines for food and beverage industry

52

Study finds legumes can lower diabetes risk by 35%; lentils have most effect

52

Researchers link suboptimal eating habits with disease risk

FOODBUSINESSAFRICA.COM VOLUME 12• ISSUE 1 • NO. 2

Diabetes in Africa:

The Silent Killer on the prowl The burden of non-communicable diseases (NCDs) is a threat to African economies. Diabetes, one of the most debilitating diseases, has become a major cause of concern in the continent.

D

iabetes is described by the National Institute of Health (NIH) as a disease in which the body does not control the amount of glucose (a type of sugar) in the blood and the kidneys make a large amount of urine. This disease occurs when the body does not make enough insulin or does not use it the way it should. The disease, long associated with the developed economies and those with higher incomes, has become one of the most critical scourges in Africa, dealing a blow to the continent’s quest to meet the needs of a rising population that still lacks some of the most basic services, healthcare included. Besides causing lifelong suffering, diabetes is a major cause of blindness, kidney failure, heart attacks, stroke and lower limb amputation, according to the World Health Organisation (WHO).

Increasing burden and death The burden of diabetes has taken a new angle, with the bulk of the patients coming from the low- and middle-income countries. Worldwide, diabetes is a major cause of concern in Middle East, Asia and Latin America as well. According to WHO figures, the number of people with diabetes has risen from 108 million in 1980 to 422 million in 2014, a four time increase in numbers of patients, while global prevalence of the disease among adults over 18 years of age has nearly doubled, from 4.7% in 1980 to 8.5% in 2014. WHO estimates that 1.5 million deaths were directly caused by diabetes and another 2.2 million deaths were attributable to high blood glucose in 2012. Almost half of all deaths attributable to high blood glucose occur before the age of 70 years.

FOOD NUTRITION & HEALTH | MEDIA MAR/APR 2017 49 A FOODWORLD PUBLICATION


NEWS | INTERNATIONAL

Once a disease of affluent societies, diabetes has become a growing problem in developing countries - largely driven by obesity - 80% of deaths are in mid and low income countries WHO WHO projects that diabetes will be the 7th leading cause of death in 2030. In 2012 diabetes was the direct cause of 1.5 million deaths and high blood glucose was the cause of another 2.2 million deaths, reports the WHO. Africa in focus “Once seen as a disease of affluent societies, diabetes has become a growing problem in developing countries - an increase driven largely by a rise in obesity. Of the estimated 1.5 million global diabetes deaths in 2012, more than 80% occurred in low- and middle-income countries,” says the World Health Organisation, in its first ever report on global diabetes. According to the International Diabetes Federation (IDF), more than 14 million people in Africa have diabetes (or 2.1-6.7% of the population), with the figure expected to reach 34 million by 2040 if Government, the private sector and other stakeholders in Africa - including the donor community - take no action. The majority of the people with diabetes (58.8%) live in cities. According to the Federation, Africa has the highest percentage of those who have no idea that they indeed have the disease, with 66.7% of all cases not yet diagnosed by the health facilities available in the continent. These people have a higher risk of developing harmful and costly complications related to diabetes because of their ignorance of the disease. In Africa the burden of diabetes is indicated by the number of deaths from the disease, with 321,000 deaths from diabetes reported in the continent in 2015, according to the IDF. 79% of those deaths were in

IN NUMBERS

34M

NUMBER OF PEOPLE WITH DIABETES IN AFRICA BY 2040, FROM 14 MILLION IN 2015 50

IN NUMBERS

66.7%

PERCENTAGE OF PEOPLE WITH DIABETES IN AFRICA BUT WHO DO NOT KNOW people under of 60 years of age - the highest percentage across all the regions. In terms of expenditure, reeking healthcare systems means that Africa spent only US$3.4 billion on diabetes, the lowest in the world. The island nations of Seychelles (17.4%), Reunion Islands (15.8%) and Comoros (9.9%) have the biggest diabetes burden in Africa while some of Africa’s most populated countries, South Africa (2.3%), DRC (1.8%), Nigeria (1.6%) and Ethiopia (1.3%) have some of the highest number of people with diabetes. The latter countries contribute to half of all diabetes patients in Africa, according to IDF. Lack of data hampers fight According to WHO, about 1% of deaths in Kenya were directly attributable to diabetes in 2012, but with majority (66.7%) of all affected by diabetes not aware of the disease, this is likely an under-estimate, says Dr Gojka Roglic, who leads WHO’s global work on diabetes. “Most people with diabetes do not die of causes uniquely related to diabetes, but of associated cardiovascular complications, like a heart attack,” she notes. The fight against diabetes will continue to face an uphill task with the lack of consumer awareness about the disease, and of the lack of appropriate public health initiatives to identify patients early, and enroll them into disease management programs. What the food industry can do to fight diabetes menace The food and beverage industry has been cited as one of the leading contributors to the diabetes menace not just in Africa and around the world. But the food industry is not alone. The tobacco industry has also been implicated in the rising diabetes cases. Further, poor consumer attitudes towards healthy living and a sedentary lifestyle encourage the emergence of diabetes in the society. Formulate products with lower sugar, salt and fat – There are strong links with the consumption of sugary foods, products high in salt and in those with higher saturated fat. Food companies have an opportunity to reduce or eliminate these three food components where possible to reduce the

MAR/APR 2017 | FOOD NUTRITION & HEALTH

TYPES OF DIABETES Type 1 diabetes (previously known as insulin-dependent, juvenile or childhood-onset diabetes) Characterized by deficient insulin production in the body. People with type 1 diabetes require daily administration of insulin to regulate the amount of glucose in their blood. If they do not have access to insulin, they cannot survive. The cause of type 1 diabetes is not known and it is currently not preventable. Symptoms include excessive urination and thirst, constant hunger, weight loss, vision changes and fatigue. Type 2 diabetes (formerly called noninsulin-dependent or adult-onset diabetes) Results from the body’s ineffective use of insulin. Type 2 diabetes accounts for the vast majority of people with diabetes around the world. Symptoms may be similar to those of type 1 diabetes, but are often less marked or absent. As a result, the disease may go undiagnosed for several years, until complications have already arisen. For many years type 2 diabetes was seen only in adults but it has begun to occur in children. Impaired glucose tolerance (IGT) and impaired fasting glycaemia (IFG) Are intermediate conditions in the transition between normal blood glucose levels and diabetes (especially type 2), though the transition is not inevitable. People with IGT or IFG are at increased risk of heart attacks and strokes. Gestational diabetes (GDM) A temporary condition that occurs in pregnancy and carries long-term risk of type 2 diabetes. The condition is present when blood glucose values are above normal but still below those diagnostic of diabetes. Women with gestational diabetes are at increased risk of some complications during pregnancy and delivery, as are their infants. Gestational diabetes is diagnosed through prenatal screening, rather than reported symptoms. Source: WHO FOODBUSINESSAFRICA.COM


occurrence of diabetes. Formulate products with more fibre and wholegrain – Increased consumption of high fibre products is associated with a reduction in diabetes and other lifestyle diseases occurrence. Whole grains, which are the seeds of cereal plants such as wheat, maize, corn, rye, barley, oats, rice and quinoa are a rich source of insoluble dietary fibre, B vitamins, phytochemicals, protein, ‘healthy’ fats, and vitamin E, that have a positive effect on diabetes prevention. Whole grain foods are better at managing blood glucose levels due to their lower glycaemic index (GI), hence they do not raise blood glucose levels as fast as refined carbohydrate foods and beverages. Recent FDA approval of a high amylose starch from Ingredion, allowing for a health claim has given a boost to the inclusion of refined fibre products in many food products. Communicate the benefits of their products to consumers - Many food and beverage companies either for lack of knowledge or omission fail to indicate the characteristics of their products either on the label or in other communication channels, hindering the ability of the consumer to make a choice on the products on offer. Food and beverage companies should formulate and then communicate effectively the benefits of their products to the consumers through proper labelling and communicating with the consumer through other means of communication, including advertising, the unique benefits that their food and beverage products provide to the consumer. Failure to do so will not only lead to an omission on the part of the manufacturer, but failure of the company to take advantage of consumers who are on the look out for particular products with unique characteristics. Where possible and permitted by law, products that meet specific nutritional claims, e.g. ‘high in fiber’ should be indicated on the label and other communication channels. Engage with the consumer community to encourage healthy eating and lifestyles – Food and beverage companies have a huge role in formulating consumer health and wellness programs that encourage healthy eating habits, encourage the adoption of exercise and good living, and general better lifestyle. Broadways Bakery, based in Thika, Kenya, has been running a campaign to inform consumers about the importance of consuming lower sugar foods, and tying the messaging to the emergence of diabetes as a critical health concern. Such activities by food and beverage companies encourage healthy living and improve the overall health of the consumers.

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51


FOOD NUTRITION & HEALTH NEWS REGULATIONS

Health agency releases sugar reduction guidelines for food and beverage industry UK – Public Health England (PHE), an agency of the Department of Health, has released a report that sets out guidelines for the food and beverage sector that will guide the industry as they reduce sugar to meet government regulated sugar reduction in their products. The report, which follows the imposition of taxation on beverages that come into force in 2018, sets out guidelines for all of the food industry on how to achieve the 20% sugar reduction across the top nine categories of food that provide the majority of sugar in the diets of children up to the age of 18 years, including a 5% reduction in the first year of the programme, by August

2017. This can be achieved through reducing sugar levels in products, reducing portion size, or shifting purchasing towards lower sugar alternatives. The guidelines in the report include overall levels of sugar per 100g of products needed to achieve the 5% and 20% reductions. These are based on sales weighted averages, which take into account both the amount of sugar in a product and the volume of that product sold. This approach should help businesses to focus their reformulation efforts on the top selling products that make the biggest contribution to the sugar levels in each food category, says PHE.

The report also includes the average and maximum calorie or portion size guidelines for products likely to be consumed by an individual at one time. The biggest selling individual portion sized products will need to decrease in order to reduce the averages across food categories, adds the report. The report has been welcomed by the food and beverage industry, with some reservations. The 9 products targeted by PHE include biscuits, breakfast cereals, cakes (and morning goods), chocolate and sweet confectionery, yoghurts, ice cream, sweet spreads and puddings.

NUTRITION

Study finds legumes can lower diabetes risk by 35%; lentils have most effect SPAIN - A new study suggests that a high consumption of legumes can reduce the risk of type 2 diabetes by 35%, a serious health concern in the across the globe. Lentils are particularly effective, notes the study. The new research shows that a high consumption of legumes significantly reduces the risk of developing the disease. The legume family, which consists of alfalfa, clover, peas, peanuts, soybeans, chickpeas, lentils, and various types of beans are believed to be particularly nutritious and healthful for a number of reasons including their high level of B vitamins, high in fiber and mineral content, such as calcium, magnesium, and potassium. They also comprise a variety of so-called

phytochemicals - bioactive compounds that further improve the body’s metabolism and have been suggested to protect against heart disease and diabetes. Finally, legumes are also considered to be a “low glycemic index food,” which means that blood sugar levels increase very slowly after they are consumed. The Food and Agriculture Organization of the United Nations, declared the year 2016 as the International Year of Pulses to make people aware of the many health benefits of legumes. In the study, the team investigated 3,349 participants in the study who did not have Type-2 diabetes at the beginning of the study. The researchers collected

information on their diets at the start of the study and every year throughout the followup period of 4.3 years. The study revealed that those with a higher intake of legumes were 35% less likely to develop Type2 diabetes than their counterparts who consumed a smaller amount of legumes. Of all the legumes studied, lentils had the strongest association with a low risk of Type2 diabetes. “A frequent consumption of legumes, particularly lentils, in the context of a Mediterranean diet, may provide benefits on Type-2 diabetes prevention in older adults at high cardiovascular risk,” concluded the researchers.

RESEARCH

Researchers link suboptimal eating habits with disease risk USA – Researchers have found that nearly half of all the deaths in the United States in 2012 that were caused by cardio-metabolic diseases – including the major ones, heart disease, stroke, and type 2 diabetes - were associated with suboptimal eating habits. The research team, led by Dr. Dariush Mozaffarian of Tufts University analyzed data from CDC’s National Health and Nutrition Examination Survey (NHANES) and national disease-specific mortality data to better understand how different dietary components affect the risk of dying from these diseases. The results were published in the Journal of the American Medical Association. The researchers investigated the relationships of 10 different foods and nutrients with deaths related to heart disease, stroke, and type 2 diabetes while comparing data on participants’ age, sex, 52

ethnicity, and education. Of 702,308 adult deaths due to heart disease, stroke, and type 2 diabetes, 45% were associated with inadequate consumption of certain foods and nutrients widely considered vital for healthy living, and overconsumption of other foods that are not. “This study establishes the number of cardio-metabolic deaths that can be linked to Americans’ eating habits, and the number is large,” explains Dr. David Goff, director of the NHLBI Division of Cardiovascular Sciences The highest percentage of cardiometabolic disease-related death (9.5%) was related to excess consumption of sodium. Not eating enough nuts and seeds (8.5%), seafood omega-3 fats (7.8%), vegetables (7.6%), fruits (7.5%), whole grains (5.9%), or polyunsaturated fats (2.3%) also increased risk of death compared with

MAR/APR 2017 | FOOD NUTRITION & HEALTH

people who had an optimal intake of these foods/nutrients. Eating too much processed meat (8.2%), sugar-sweetened beverages (7.4%), and unprocessed red meat (0.4%) also raised the risk of heart disease, stroke, and type 2 diabetes-related deaths. The effect was higher among men than women; among blacks and Hispanics compared to whites; and among those with lower education levels. The study also shows “how recent reductions in those deaths relate to improvements in diet, and this relationship is strong. There is much work to be done in preventing heart disease, but we also know that better dietary habits can improve our health quickly, and we can act on that knowledge by making and building on small changes that add up over time,” he added.

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Innovative hygienizing and compacting technology. AHHD Pellet Mill - Modular system with standardised interfaces. - Electrical surface heating “Hotsil”. - Ensures best possible intensive and homogeneous mixing of steam and feed particles. - State-of-the-art compacting technology up to 30 t/h.

Got a question? Let’s talk about it. buhler.nairobi@buhlergroup.com

Innovations for a better world.

Food Business Africa incorporating Dairy Business Africa March/April 2017  

Food Business Africa incorporating Dairy Business Africa March/April 2017

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