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AFEX NIGERIA Ayodeji Balogun - CEO

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KWANZA TUKULE FOODS

KHADIJA MOHAMED INDUSTRY FOCUS

DAIRY INDUSTRY IN UGANDA EXECUTIVE INTERVIEW

SPECIAL REPORT FOOD BUSINESS AFRICA

STARTUP PROFILE

TOP AFRICAN FOOD COMPANIES

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YINKA OGUNDANA

FRIESLAND CAMPINA WAMCO NIGERIA YEAR 9 | ISSUE NO. 44 JAN/FEB 2021


The Art of European Meat

Hindquarter Carcass with jowl

Mastered by the Belgian meat suppliers What makes the Art of European Meat? It’s that exceptional combination of Craftsmanship, Food Safety and Tailor-Made Service. And that’s what the Belgian meat suppliers truly master. As one of Europe’s leading meat producers and exporters, they turn their expertise into an art form. Up to you to savor it.

Find your Belgian meat master at artofmeat.eu

THE CONTENT OF THIS PROMOTION CAMPAIGN REPRESENTS THE VIEWS OF THE AUTHOR ONLY AND IS HIS/HER SOLE RESPONSIBILITY. THE EUROPEAN COMMISSION DOES NOT ACCEPT ANY RESPONSIBILITY FOR ANY USE THAT MAY BE MADE OF THE INFORMATION IT CONTAINS.


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CONTENTS

YEAR 9 | ISSUE NO. 44 JAN/FEB 2021

Start-ups Africa: Kwanza My Company Profile: Afex 59 Food 48 Tukule Foods Nigeria Developing viable commodity markets in Africa is fraught with failures and disappointments. AFEX, a private commodity trading enterprise based in Nigeria has shown that there are many opportunities in the sector. Food Business Africa had a conversation with the firm's CEO, Ayodeji Balogun on his company and the opportunities in the sector.

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Industry Focus: Dairy Industry in Uganda

In the first Food Startups feature, we profile Kwanza Tukule Foods, a Nairobi-based distributor of food products to low income areas in the city. The company's Founder & CEO Khadija Mohamed-Churchill discusses how the company has had to restrategise to reduce the impact fo the Covid-19 pandemic and to grow in these difficult times.

ON THE COVER Ayodeji Balogun, the CEO of AFEX Nigeria

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The dairy industry in Uganda offers glimmer of hope for the country’s food industry. We profile the sector, while providing insights into the future prospects in light of rising production and dwindling export opportunities FOODBUSINESSAFRICA.COM


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The Kenya Supply Chain, Logistics & E-Commerce Expo showcases the latest technologies in the supply chain, logistics, storage and e-commerce for food and agriculture products including: Motor vehicle, trucking and other mobility solutions • Motor vehicle and asset tracking services • Traceability, Security & Surveillance Systems • Storage and warehousing solutions and services • Cold chain, refrigeration and other services • Information and communications technology • HR, Sales, Warehousing, Financial, Marketing & Accounting Software and Services • Financial Management & Risk Management Services • Distribution, logistics and last mile delivery systems and services • Construction & Facility Management Services.

DECEMBER 2-4, 2021

SARIT EXPO CENTRE, NAIROBI, KENYA

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CONTENTS

YEAR 8 | ISSUE NO. 44 | JAN/FEB 2021 REGULARS 8 Editorial 10 Events Calendar

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News Updates: • Kenyan data analytics firm Gro Intelligence raises US$85m in Series B funding round • Coca-Cola US to sell soda in 100% recycled plastic as CCEP switches to electric vehicles • Ghana chocolate export earnings rise 16.6% as it celebrates Chocolate Day • AB-In Bev reaffirms commitment to US economy with new US$1bn investment • Del Monte Kenya opens employee breastfeeding center • Fan Milk Plc. to establish dairy farm and training institute in Nigeria • KWAL breaks ground on new US$36.5m ultra-modern manufacturing facility • Total Produce, Dole Foods merge to form largest fresh produce player • Demand for alternative proteins to foster growth of insect food and feed markets in 2021 • Lactalis South Africa appoints Jill de Kock as its new Quality Executive • Kenya opens National Dairy Laboratory to enhance safety compliance

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Supplier News & Innovations: Endress+Hauser introduces ready-to-use water analysis panels to boost water safety | Novozymes launches enzyme to improve taste of high protein drinks | DuPont introduces new probiotic with proven ability to reduce perceived stress | Omya launches new ingredients to support development of plant-based foods | GEA introduces machine that enables use of paper-based packaging alternatives | Paper milling company partners Tetra Pak on used beverage cartons project | Crown to build new US$145m new aluminium beverage can plant in US

Executive Profile: Yinka Ogundana, Plant Manager - FrieslandCampina WAMCO Nigeria PLC

New Product Innovations: Kenafric Industries: beverage products | Java House: ice cream and granola bars | DairyGold: full cream milk & protein drink | Kericho Gold: cold brew teas | Broadway Bakery: 50/50 bread | Balaji Group: flavoured diet drinks

DAIRY BUSINESS AFRICA 69 Keeping up with the evolving clean label concept in dairy products BEVERAGE TECH AFRICA 77 Sustainability and Health Concerns Drive Innovations in Fruit Juice Processing MILLING & BAKING AFRICA 87 Manufacturing high quality pet food to please even the most finicky consumer FOOD NUTRITION & HEALTH 91 Africa indigenous fruit trees offer major benefits. But they’re being ignored 6

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EDITORIAL

Introducing Food Startups Africa, to stimulate small business growth in Africa

I

’m convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance.” Steve Jobs, the CoFounder and CEO of leading technology Apple, was once quoted as saying, when asked about the traits of successful startups. Coming from someone who is known the world over for his breathtaking innovations across many industries, Jobs’ spirit is alive and well in Africa – where starting a business in an environment full of challenges at every turn, leave alone succeeding, is exceedingly hard. From the lack of the right infrastructure, knowledge, funding and networks, startups in Africa face some of the most daunting hurdles in the world on their path to success – but we are beginning to see some shoots of progress in the entrepreneurship space that is not only exciting, but also very encouraging. In comes Food Startups Africa. Food Startups Africa, which will be appearing inside each of the issues of your well-known magazine Food Business Africa, will set the tone by showcasing the opportunities for investors in Africa’s food and agro industry, tell the stories of resilience in Africa startups scene and, critically, provide the platform to discover some of Africa’s most promising upcoming startups across the Continent. As Africa’s economies and industry open up, and as potential investors, young and old,

look at entrepreneurship as a viable option to plunge into, either as a side hustle or as the main form of engagement and income, the number of startups across the continent continues to surge. The environment may not have eased, but what we are encouraged by is the number of young entrepreneurs that we see across the continent – meaning that the future of startups is bright, in a continent with some of the youngest people. The Food Startups Africa section - which is sponsored by The Nest Africa, our industry innovations, networking and fund-raising platform - will regularly feature startup company profiles and other critical knowledge articles about succeeding in the early days of entrepreneurship in Africa’s food and agriculture industry. We hope that through this initiative, we shall contribute to a more vibrant and sustainable startups scene across Africa - helping them find new markets and buyers, grow their businesses more sustainably and innovatively and open up for them new opportunities to meet investors, funders, suppliers and other important networks. We shall be glad if you can join us on this journey. We wish you a good read. Francis Juma Founder & Publisher

FOODBUSINESSAFRICA.COM

Year 9 | Issue 1 | No.44 • ISSN2307-3535 FOUNDER & PUBLISHER Francis Juma EDITORIAL Virginia Nyoro | Catherine Wanjiku | Paul Ongeto ADVERTISING & SUBSCRIPTION Jonah Sambai | Hellen Mucheru DESIGN & LAYOUT Clare Ngode

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PUBLISHED BY: FW Africa P.O. Box 1874-00621, Nairobi Kenya Tel: +254 20 8155022, +254725 343932 Email: info@fwafrica.net Company Website: www.fwafrica.net RELATED PUBLICATION

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Food Business Africa (ISSN 2307-3535) is published 6 times a year by FW Africa. 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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Alapala; where tradition meets innovation In 1954, we started our journey with the mission to accomplish the best partnership models through innovation to add value and a competitive edge to our customer’s business. Since its foundation, we have built more than 600+ turn-key projects and our equipment operates in 5.000 factories in over 100 countries on 4 continents across the globe. We are proud to be among the top companies in the world’s grain milling technology and still taking big steps to fulfill our vision.


EVENTS CALENDAR

February 21-25, 2021 Gulfood Dubai, UAE Focus: Food & Beverage www.gulfood.com February 24 – 26, 2021 Agritech West Africa Accra, Ghana Focus: Agriculture & Forestry www.agritechwestafrica.com March 09-12, 2021 Foodex Japan Makuhari Messe, Japan Focus: Food & Beverage www.jma.or.jp/foodex March 28-31, 2021 FHA Singapore Expo Singapore, Asia Focus: Food & Beverage www.fhafnb.com

Cairo, Egypt Focus: Food & Beverage www.academicsera.com/ Conference2021/Egypt/1/ICPAF/ May 18 – 20, 2021 Propak East Africa Nairobi, Kenya Focus: Packing & Packaging https://www.propakeastafrica.com/ May 26 - 28, 2021 Africa Food Safety & Quality Summit Virtual & Nairobi, Kenya Focus: Food Safety www.foodsafetyafrica.net May 24 - 27, 2021 Sweets & Snacks Expo Chicago, USA Focus: Confectioneries & Snacks www.sweetsandsnacks.com

April 01 – 03, 2021 CAFEX Cairo, Egypt Focus: Hospitality www.cafex-me.com

May 28-30, 2021 The Vegan & Plant Powered Show Cape Town, South Africa Focus: Plant-based foods www.veganandplantpoweredshow. com

April 06 - 09, 2021 Food Pack Asia Bangkok, Thailand Focus: Packing & Packaging www.foodpackthailand.com

June 1 - 3, 2021 CAMINEX 2021 Matobo, Zimbabwe Focus: Agriculture www.caminex.co.zm

April 07 – 09, 2021 Agbiz Congress Sun City, South Africa Focus: Agriculture www.agbiz.co.za

June 16 – 18, 2021 Food & Beverage West Africa Lagos, Nigeria Focus: Food & Beverages https://fab-westafrica.com/

May 12-13, 2021 International Conference on Pharma and Food

June 20-22, 2021 Africa’s Big 7 Johannesburg, South Africa

Focus: Food & Beverage retail www.africabig7.com June 22 – 24, 2021 Africa Agri Tech Pretoria, South Africa Focus: Agriculture & Forestry www.africa-agri.co.za August 22-24, 2021 SNAXPO 21 North Carolina, USA Focus: Confectioneries & Snacks www.snaxpo.com August 26-28, 2021 The Nafem Show Florida, USA Focus: Food service www.thenafemshow.org November 07-09, 2021 Gulfood Manufacturing Dubai, United Arab Emirates Focus: Food & Beverage www.gulfoodmanufacturing.com December 12-14, 2021 AFMASS Food Expo Nairobi, Kenya Focus: Food, Beverage & Milling www.afmass.com December 13, 2021 Africa Food Industry Excellence Awards Nairobi, Kenya Focus: Food, Beverage & Milling www.awards.foodbusinessafrica. com

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Africa’s Food Safety & Laboratory Management Conference & Exhibition

DATE: MAY 26-28, 2021 HYBRID SUMMIT: LIVE FROM NAIROBI, KENYA & VIRTUAL AROUND AFRICA & THE WORLD

Join over 3000 delegates at this pan-African industry-focused virtual and live food safety and laboratory management conference and expo. Meet and network with delegates from the food and animal feed manufacturing, retailing and distribution; hospitality, restaurants and catering; Government ministries and regulatory agencies; agriculture and agribusiness players; academics and research institutions as you discover the latest trends, opportunities and learn how to improve systems and reduce risks in the food safety landscape in Africa. For more info on participation, exhibition and sponsorship: Tel: +254 725 343 932 Email: info@fwafrica.net

www.foodsafetyafrica.net


NEWS UPDATES by www.FoodBusinessAfrica.com FUNDING

Phatisa Food Fund 2 gets backing from DFIs, closes at US$143m AFRICA – Phatisa, a sector-specific African private equity fund manager, has reached a US$143 million final close for its Phatisa Food Fund 2 (PFF 2), following a US$82 million joint commitment from a group of development finance institutions (DFIs). The DFIs include CDC, Norfund, Finnfund, FinDev Canada, and BIO, who committed to the Fund’s final close with US$30 million, US$20 million, US$15 million, US$10 million and US$7 million, respectively. “We are pleased to welcome this multinational group of investors to Phatisa Food Fund 2, a fund focused on increasing investment in the under-capitalised African agribusiness and food value chain. Development impact, without deviating from sound commercial principles, is at the heart of Phatisa’s

investment approach,” Stuart Bradley, Managing Partner, Phatisa said. PFF 2 will invest across the Africa’s food value chain, considering investments in mechanisation, inputs, poultry and meat production, food processing and manufacturing, logistics, aggregation and distribution across Sub-Saharan Africa. The investments will strengthen and increase food supply, local production and distribution across the region where an estimated 239 million people are affected by food insecurity. The Fund, via its investment in companies in the food value chain, targets over 90,000 smallholder farmers and micro-entrepreneurs and aims to create over 2,000 permanent jobs and sustain another 10,000 jobs.

SUSTAINABILITY

Coca-Cola US to sell soda in 100% recycled plastic as CCEP switches to electric vehicles

USA – American multinational beverage corporation CocaCola will soon begin selling sodas in completely recycled plastic in the US for the first time as part of its efforts to rid the world of plastic waste. In the initial roll out, popular brands Coke and Diet Coke will be packaged in 13.2-ounce (374 gram) bottles made from 100% recycled plastics and distributed in a group of states including California and Florida. The roll

out of recycled packaging makes the US the 19th market worldwide where Coca-Cola now sells item entirely made of recycled packaging, with the company seeing a 20% reduction in it’s use of new plastic across North America compared to 2018. Meanwhile, British multinational bottling company Coca-Cola European Partners (CCEP) has joined The Climate Group’s EV100 initiative, which brings together companies committed to accelerating the transition to electric vehicles (EVs) and has committed to switch all of its cars and vans to EVs, or ultra-low emission vehicles where EVs are not viable, by 2030. Currently, only 5% of the company’s cars and vans are EVs or plug-in hybrid vehicles. The commitment follows the launch of CCEP’s new climate strategy, which includes the ambition to reach net zero emissions by 2040, a goal which is being supported by a €250 million (about US$300.55 million) investment.

FUNDING

PE fund takes minority stake in Senegalese food production company SENEGAL – Amethis, an investment fund manager dedicated to the African continent has made its first transaction in Senegal, with the acquisition of a minority stake in one of the country’s leading FMCG companies, Nouvelle Minoterie Africaine (NMA). NMA, founded in 2000, produces and distributes animal feed, pasta and wheat flour and has rapidly grown thanks to organic growth, combined with the acquisition of Moulins Sentenac in 2015. Its daily production capacity is

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400 tonnes for the feed plant, 250 tonnes for the wheat mill and 55 tonnes for pasta. It is a key player in the Senegalese industrial landscape, both in terms of size and brand recognition, with known products such as the Khonte livestock feed brand and Pastami pasta brand. Following this transaction, Amethis becomes NMA first external shareholder.

FOODBUSINESSAFRICA.COM


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NEWS UPDATES

TRADE

Ghana chocolate export earnings rise 16.6% as it celebrates Chocolate Day

GHANA – Ghana, one of the world’s largest producers of cocoa, earned US$13.4m from export of chocolate and other food preparation containing cocoa in 2019. According to a report by Ghana Export Promotion Authority (GEPA), this was a 16.6% increase from earnings of 2018, which stood at US$11.5m and a further rise from US$5.3m of 2017, with Nigeria maintaining its dominance, accounting for 87% of the total exports worth US$11.8m in 2019 – taking the accolade that was previously held by France in 2017. Ghana was among the largest producers and exporters of cocoa beans in 2019 with an average of 850,000 tonnes, but its position in the export of chocolate and related products was insignificant in the global market - that segment of the value chain was dominated and controlled by Germany, which earned US$4.9bn, Belgium US$3.1bn, Italy US$2.1bn, Netherlands US$2bn and Poland US$1.8bn in 2019. Meanwhile, the Ghana Cocoa Board (COCOBOD) in partnership with Ghana Tourism Authority, Ghana Investment Promotion Centre, cocoa processing companies and other stakeholders in the cocoa industry officially celebrated the 2021 National Chocolate Week in early February. The event, which peaked on Valentines Day, was aimed at promoting the consumption of chocolate and cocoa products in the country. Carried out

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under the theme: Eat Chocolate; Stay Healthy; Grow Ghana, the event was packed with activities to encourage the consumption of chocolate confectionery, beverages, and chocolate-infused dishes. The event was first celebrated in February 2005. Launching the celebration on behalf of Vice President, Alhaji Dr. Mahamudu Bawumia, the Minister of Information Designate, Hon. Kojo Oppong Nkrumah acknowledged the special role that cocoa and chocolate plays in the lives of Ghanaians and its impact on national development. “Every Ghanaian, in one way or the other, derives benefit from cocoa. From foreign exchange earning to employment, food and beverages, cosmetics to the provision of social and infrastructural amenities, the cocoa business is one that can best THE EVENT HAD ACTIVITIES TO ENCOURAGE CONSUMPTION OF CHOCO CONFECTIONERY, BEVERAGES, AND CHOCO INFUSED DISHES be described as an essential and robust one with several untapped opportunities.” He stated that among all the activities within the cocoa value chain, one aspect that requires attention is local consumption. The country’s per capita consumption hovers around 0.52 kg. “We have the cocoa beans and the technology but the market for the finished product is just not encouraging. It’s not just the processing we want to focus on. We want to create a local demand that will spur on investors to get into local processing of finished cocoa products,” said Senior Public Affairs Manager of COCOBOD, Mr. Fiifi Boafo. To change the narrative, the Chief Executive of Ghana COCOBOD,

BRIEFS Total Produce, Dole Foods merge to form largest fresh produce player IRELAND – American agricultural multinational corporation Dole Foods has agreed to merge with Irelandbased fresh produce distributor Total Produce in a deal that consolidates Dole Foods’ leadership position in the fresh produce market. The new combined company, operating under the Dole brand, will be incorporated in Ireland, with its global headquarters in Dublin, but listed in the US. The merger comes two years after Total Produce acquired a 45% stake in Dole Food Company from the C&C shareholders for US$300 million. Together, the combined company will have an estimated 2020 revenue of approximately US$9.7 billion and will have an increased geographical footprint, brand strength and an expanded diverse product portfolio. “The combined company will become the largest global player with over 170 years of history in fresh produce, a highly diversified portfolio, resilient earnings and a strong balance sheet that positions us well for accelerated growth,” said Carl McCann, Chairman of Total Produce. Hon. Joseph Boahen Aidoo added that to ensure ample supply of raw materials within the economy to meet the demand, COCOBOD is poised to strengthen its incentive packages to help local processors and artisanal chocolate makers expand their businesses. Ghana has seven major cocoa processing firms with an estimated processing capacity of about 500,000 metric tonnes, and the construction of a new 50,000 metric tonne capacity processing factory currently underway in the Western region - which puts the country in a position to meet its 50% processing target from the current 40%.

FOODBUSINESSAFRICA.COM


KENYA

Beverages& Dr nks TRENDS

Demand for alternative proteins to foster growth of insect food and feed markets in 2021 GLOBAL - The insect food and feed markets are forecast

to grow in 2021 as consumer preferences continue to shift away from animal-based proteins. The shift from animal proteins is stimulated by consumer awareness of the significant carbon footprint of livestock production, which directly contributes to global warming. Comparatively, insect proteins require smaller amount of physical space, eliminating the need to clear forests for animal agriculture and have a significantly smaller carbon footprint. This makes insect rearing a more sustainable and environmentally friendly way of producing proteins. Their nutritional benefits have made them popular, especially in Europe where they have become valuable additions in various formulations, since insect proteins contain diverse vitamins, fibers and amino acids necessary in both human and animal food. Analysts at the International Platform of Insects for Food and Feed (IPIFF) in an interview with FoodIngredientsFirst expressed confidence that the market for insect and feed will expand due to the above factors. The EU Food Safety Agency approval of meal worms for human consumption is also another factor that is expected to further support this growth. Christophe Derrien, IPIFF secretary-general, says that the EU approval was a “key milestone” for the sector. “This ruling will likely pave the way for the EU-wide authorization of the products covered by this opinion and is also expected to act as an enabler for the other applications presently evaluated by the EU risk assessor,” Derrien notes. According to Christian Bärtsch, IPIFF executive committee member in charge of communication, supply of insects to meet expected rise in demand has been assured thanks to the local production of insects and their derived ingredients. To further sustain the growth of insect proteins market, Derrien notes that his organization IPIFF is sustaining efforts to educate the European population to understand and eat insects. To do this, IPIFF is working on “entertaining, close and friendly” communication to convey the advantages of entomophagy. In 2021, the organization plans to implement its initial objectives to offer a range of products that are ever tastier, healthy, and with a low environmental impact, highlights Rabastens. Bärtsch adds that the edible insect sector is developing formulations that will meet the nutritional needs of consumers while also considering their environmental concerns. Barclays projects that cumulatively, the global the insect protein market could be worth up to US$8 billion by 2030.

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The Kenya Beverages & Drinks Expo showcases packaged and processed soft beverage products including: Still, carbonated and enhanced waters • Fruit juices, cordials, fruit flavoured drinks • Still, carbonated soft drinks • Energy drinks • Sports drinks • Alternative drinks and beverage blends • Plant based nutritional drinks • Brewed drinks • Organic and functional beverages • Processing, packaging, serving and storage solutions for beverage and drink products

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NEWS UPDATES

FUNDING

IFC to give US$10m financing to Ethiopia’s leading poultry company EthioChicken

ETHIOPIA – Ethiopia’s leading producer of day-old-chicks and poultry feed EthioChicken Group is set to acquire a US$10 million loan from IFC to enable it implement its 5-year program. Under the company’s growth plan, it seeks to construct two new breeding farms with a capacity of 60,000 bird each and one new hatchery facility, expected to cost US$16.2 million. The two new breeding farms will be built in SNNPR region and Amhara region, while the new hatchery will be built in SNNPR region. In addition, the group will utilize the financing to boost its working capital for purchase of parent stock birds; and refinance an existing long-term loan. As of FY20, the group had eight breeding farms, four hatcheries, and two feed mill facilities. EthioChicken Group consists of three operating companies in Ethiopia: AGP Poultry PLC, Mekelle Farms PLC and Andasa Poultry PLC; and two holding companies in Mauritius: Agflow Ventures and Agflow Poultry. The latter are majority owned by founders of investment vehicle company Flow Equity having 60.4%, and Arabica Investment 39.6%, a private equity fund. For IFC loan, the three operating companies will be co-borrowers and the two holding companies will be guarantors. The financier is offering a competitive package proposing an

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8-year loan, including a 3-year grace period to allow sufficient time for to ramp up. Other than the financing, IFC will undertake standard setting, assisting the group to develop Environmental Health and Safety protocols and social practices in line with international standards. Meanwhile, the PhiBela Edible Oil Factory, which is worth Birr 4.5 billion THE FIRM TO CONSTRUCT TWO NEW BREEDING FARMS WITH A CAPACITY OF 60,000 BIRD EACH AND ONE NEW HATCHERY FACILITY (US$113.7m), has been opened in the Amhara regional state, an investment of the Belayneh Kinde Group. The facility, with a daily production capacity of 1.5 million litres, of palm oil is deemed to be the largest edible oil factory in the country and will potentially cover 60% of the nation's demand when fully operational. The company says the plant will play a significant role in stabilizing the domestic market of edible oil before venturing into the export market. In addition, it is expected to create 3,000 jobs. USDA estimates Ethiopia’s local production of edible oils at 31,000 metric tonnes annually against consumption of 615,000 metric tonnes, of which 95 percent is met by imports.

BRIEFS Coca-Cola Africa names Phillipine Mtikitiki Vice President of SA franchise SOUTH AFRICA – Beverage giant Coca-Cola Africa has announced the appointment of Phillipine Mtikitiki as the Vice President of its South African franchise based in Johannesburg, with effect from 1 January 2021. Phillipine brings over 20 years of experience in the Coca‑Cola System, having served in operations, marketing, planning and commercial strategy departments. She joined Coca‑Cola in 1998 as a graduate associate and has worked across the business units and its bottling entities in South Africa in various functions and roles of increasing responsibility. She has a strong record of creating highly engaged teams and is passionate about people development and advocates for the African girlchild at the grassroots level and is a champion for the development of African talent and acceleration of growth opportunities for women and youth. She will be responsible for developing and managing the company’s business strategy across South Africa in her new role.

Heineken extends its stake in Champion Breweries to 84.7% NIGERIA – Multinational brewing company Heineken has raised its ownership in Champion Breweries with acquisition of shares worth N4.959 billion (US$12.5m), representing 24.3% stake in the firm through its wholly owned subsidiary, Raysun Nigeria Limited. The acquisition in the local brewery has raised the ownership of Raysun to 84.7%, giving it a leverage to launch a takeover bid and help broaden Heineken’s dominance beyond Nigeria’s most capitalized beverage maker, Nigerian Breweries Plc.

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AGRICULTURE

Nigeria wheat value chain players undertake initiative to bolster the sector NIGERIA – Nigeria’s wheat value chain players and the government are rallying up support to boost the sector’s performance. In this regard, the Flour Milling Association of Nigeria (FMAN) has provided support to 800 farmers in Kano, Kebbi and Jigawa States to accelerate wheat cultivation, providing them with improved seeds varieties, fertilisers, chemicals and threshers under a soft loan scheme designed to enhance farmer access to inputs and extension services. FMAN has also, in collaboration with Oxfam and agricultural research institutes, established wheat farming service centres in 15 local government areas, while plans are underway to expand the scope of the programme to mobilise additional participation. Crown Flour Mills, a member of FMAN has been at the front-line championing growth of the industry by

being committed towards improving wheat production, through adequate financing and research in the country. According to the company’s Project Manager, the subsidiary of Olam Nigeria has introduced Durum wheat varieties and engaged the services of a well-known seed scientist, Dr Bassi, to accelerate wheat production in the country. “We wish to get new technologies in Nigeria to further build on the wheat initiative. We look forward to partnering with organisations across the wheat value chain, to improve farmers’ yields through high quality seeds, expanded extension services and improved access to irrigation,” Danjuma said. Meanwhile, the Kano State government has highlighted that they have concluded plans to establish additional water bodies and upgrade existing dams to encourage wheat cultivation and other irrigation

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activities. Kano Deputy Governor, Nasiru Gawuna, said the government had embarked on the rehabilitation and desilting of Watari dam and upgrade of irrigation schemes in Bagwai region. The Federal Government has further trained over 30,000 workers as part of efforts to reinvigorate extension services and encourage agricultural productivity. The support by the industry players is highly needed as according to a Global Agricultural Information Network (GAIN) report from the USDA, Nigeria will continue to rely on grain imports for food security as the country is challenged with coronavirus (COVID-19) restrictions, currency devaluation and climate change. Domestic wheat production is forecast to fall 8% to 55,000 tonnes in the 2020-21 marketing year, while imports are expected to total 4.9 million tonnes.

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The Kenya Hotels, Restaurants & Catering Expo showcases the latest solutions and technologies to the HORECA industry from Kenya, Africa and the World to a local, regional and international audience, including: Cookery and Cutlery Solutions • Ingredients and Chemicals • Hygiene Solutions & Services • Kitchen, Rooms & Bathroom Solutions • Cleaning & Laundry Solutions • Hospitality Security, ICT & Technology Solutions • Hospitality Franchise Solutions

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NEWS UPDATES

BRIEFS Lactalis South Africa appoints Jill de Kock as its new Quality Executive SOUTH AFRICA – Lactalis South Africa (LSA), one of the major players in the South African dairy industry has promoted Jill de Kock to be its new Quality Executive. Jill has been with the business for more than 15 years and has vast experience in production and quality, indicated the dairy in a post announcing her appointment. Her most recent position at the company was Head of Quality, while her previous positions include Quality Manager, Production Manager and Plant Manager.

Del Monte Kenya opens employee breast-feeding center KENYA – Leading fruit processor in Kenya Del Monte has cut the ribbon to its new breast-feeding center aimed at empowering its female employees.

INVESTMENTS

Global malting companies Boortmalt, Soufflet kick-start production in Ethiopia ETHIOPIA – Boortmalt, the world’s leading malting company has commenced operation at its new Birr 2.8 billion (US$71.6m) plant inside the Debre Birhan Industrial Park Zone, in Ethiopia The factory having a processing capacity of 60,000 tonnes of malt per annum is seeking to quench the thirst of the 14 Ethiopian breweries whose demand stands at around 170,000 tonnes of barley per year. The Belgium headquartered company has revealed that it will source its barley from up to 50,000 contracted farmers and it is committed to the long-term sustainable business model that benefits the farmers, industry players, and the economy of Ethiopia in general. “We have estimated that we would need between 40,000 to 50,000

farmers to grow malt barley for us. We are really pushing to increase that supply chain,” said Jurgen Van Der Weide, General Manager of Boortmalt Ethiopia. To further support the farmers and build their capacity, Boortmalt is providing them with its own improved barley verities and some from its partnering breweries, accompanied with trainings on how to produce them. The investment is in addition to the opening of newly built malting plant in the country by Soufflet Group, a French family-owned business focused on collecting and adding value to agricultural raw materials. The new factory will initially produce 60,000 tonnes of malt and in the longer term it hopes to reach a production capacity of 110,000 tons.

TRADE

South Africa registers phenomenal citrus export growth in 2020 SOUTH AFRICA – South Africa has

The launch of the facility is in line with the recommendations by the World Health Organization (WHO) that children should feed exclusively on breast milk for the first six months of their lives and aligns with The Kenya Health Act 2017 that mandates employers to set up breastfeeding stations and offer breastfeeding breaks at workplaces. The firm will also offer breastfeeding classes to pregnant and breastfeeding mothers to educate them on the importance of exclusive breastfeeding and how to breastfeed in the right way.

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maintained its position as the world’s second largest citrus exporter in 2020, delivering 146 million cartons of South African citrus to the rest of the world. The Citrus Growers Association (CGA) Chief Executive Justin Chadwick attributes the recordbreaking achievement during the COVID-19 pandemic, which disrupted trade across the global, to close collaborations and partnerships within the industry and with the government. “It is a testament to the quality of South African citrus fruit which is in demand all over the globe,” he said. From the current estimates, the citrus industry is expected to increase its exports by another 300, 000 tons over the next three years. “The growth projections for soft citrus, lemons and Valencia oranges alone indicate an

expected additional R6.8bn in foreign exchange earnings and the creation of 22,250 sustainable jobs over the next three years,” said Chadwick. The USDA Foreign Agricultural Service expects production of South African soft citrus - new orange varieties, lemons and limes - to continue their strong growth in the 2020/21 Marketing Year in comparison to the previous season 2019/20, based on the increase in area planted, improved yields, high level of new-plantings coming into full production, and the minimal impact of COVID-19 on labour and input supply. It adds that citrus demand is expected to surge due to the assumed benefits of Vitamin C in boosting immunity against COVID-19. Exports will similarly be on the rise courtesy of free trade agreement with the European Union (EU) and the United States under the African Growth Opportunity Act (AGOA).

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FOOD

INGREDIENTS FUNDING

Kenyan data analytics firm Gro Intelligence raises US$85m in Series B funding round

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KENYA - Kenyan-founded data analytics company Gro Intelligence has raised US$85 million in a Series B funding round, aimed to take the company to the next level. Gro Intelligence is an AI-powered insights firm providing decision-making tools, solutions and analytics to the food, agriculture, and climate economies and their participants. The financing will mostly be channeled to grow and accelerate the adoption of its Gro Platform, enhancing the platform’s machine-learning capabilities and delivering localized insights on food, agriculture and climate risk. The Gro Intelligence platform aggregates, normalises, and models complex data to illuminate the interrelationships between food, climate, trade, agriculture, and macro-economic conditions, integrating over 40,000 data sets and processing north of 650 trillion data points for customer segments. The targeted clientele ranges from governments to financial institutions, agricultural input companies, retailers, food and beverage companies, and various other industry participants. “Food security and climate risk represent existential global-sized opportunities for our AI-powered decisions and insights platform. We see a tremendous need for the market knowledge provided by the Gro Platform,” said Sara Menker, Gro’s founder and CEO. “Our customers have come to rely on Gro as a unique source of actionable data-driven insights about our food supply and models to measure and manage associated climate change risk to physical and financial assets across the globe. We are absolutely delighted to welcome our new investors and continue to be grateful to our existing investors for their support,” he added. The US$85 million Series B funding round is estimated to be the largest yet raised within the African tech startup ecosystem by Disrupt Africa. It was co-led by Intel Capital, Africa Internet Ventures, and the family offices of Ronald Lauder and Eric Zinterhofer, plus previous investors DCVC and GGV Capital. FOODBUSINESSAFRICA.COM

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The Food Ingredients Show Kenya displays the latest technologies in food ingredients and chemicals from local, regional and international companies, including: Flavours, colours – synthetic, natural and nature-identical • Sweeteners – nutritive and artificial and natural; sugar replacers • Enzymes, improvers, dough and conditioners and processing aids • Emulsifiers, antioxidants and preservatives • Stabilisers, thickeners, viscosity modifiers, firming agents and bulking agents • Vitamins, minerals and premixes • Protein powders, flours and isolates; egg powders and replacers • Humectants, gelling and glazing agents • Salt, mineral salts and salt replacers • Foaming and raising agents and propellants • Fat and fat replacers

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NEWS UPDATES

INVESTMENTS

KWAL breaks ground on new US$36.5m ultra-modern manufacturing facility

KENYA – Kenyan manufacturer and distributor of alcoholic and nonalcoholic beverages KWAL, has started construction of its new Ksh. 4 billion (US$36.5m) ultra-modern manufacturing facility at Tatu City Industrial Park, near Nairobi. The beverage maker held a ground breaking ceremony for the establishment of the new facility in February 2020, which is aimed to enable it meet consumer demand for

its fast-growing brands and continue to localize production of its imported brands, as it eyes to expand its market share in the Eastern Africa region. The ultra-modern fermentation and manufacturing plant will feature a state-of-the-art cellars and modern laboratories which will ensure consistent quality of its products, according to the firm. “The new facility will have enhanced capacity to produce

aspirational brands to meet ever evolving consumer tastes; a world class customer distribution center as well as offices that will provide employees with a superb working environment. The KWAL Tatu City facility will be an eco-friendly space having leveraged on gogreen construction and systems to promote recycling and re-use to enhance responsible production and consumption,” KWAL Managing Director, Lina Githuka said at the ceremony. The investment marks the first new production facility opened by KWAL in more than 20 years and is backed by its major shareholder Distell, which has invested more than KSH.1.2 billion (US$10.9m) in the company since acquiring a stake in it. THE FACILITY WILL BE AN ECO-FRIENDLY SPACE LEVERAGED ON GO-GREEN CONSTRUCTION AND SYSTEMS TO PROMOTE RECYCLING AND RE-USE TO ENHANCE RESPONSIBLE PRODUCTION AND CONSUMPTION

INVESTMENTS

AB-In Bev reaffirms commitment to US economy with new US$1bn investment

USA – Anheuser-Busch, a wholly owned subsidiary of Belgium multinational drink and brewing company AB InBev, has announced an investment of more than US$1 billion

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over the next two years in its facilities and communities across the US. With the investment, the brewer is looking to drive economic prosperity in communities where it operates across the US, strengthen its connections with consumers and support the more than 2.1 million jobs related to the beer industry. The capital expenditure programme across 26 states will be used to expand its operations in particular its hard seltzer production and support ongoing industry job creation and sustainable innovations. “We need to build more seltzer capacity so we can attend the demand from consumers, which is a growing demand,” Anheuser-Busch CEO

Michel Doukeris said, adding that the company’s new Michelob Ultra organic seltzer also requires huge investment. As part of the US$1 billion investment, Anheuser-Busch is committing nearly US$100 million towards sustainability projects including solar panel instalments, water treatments and other similar initiatives. On the other hand, US$400 million will be injected into 12 of Anheuser-Busch’s major breweries, while more than US$100 million will go towards new can manufacturing lines to meet demand for singleserve cans.

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DISINVESTMENTS

Kirin terminates partnership with Myanmar brewery in protest of military coup MYANMAR – Japanese drinks giant Kirin Holdings has announced it is terminating a brewing partnership with Myanmar’s military after its generals overthrew the elected government in February 2020. Kirin owns a controlling stake in both Myanmar Brewery and Mandalay Brewery in partnership with Myanmar Economic Holdings Ltd (MEHL), a company controlled by the country’s military. Speaking to Nikkei Asia, Kirin’s CEO Yoshinori Isozaki said that they expect to pull out of the partnership "by spring, and definitely within a year," citing the risk of damage to the Japanese company's reputation as the biggest factor in the decision. Kirin’s operations in Myanmar included the production of beer brands such as Kirin Lager – one of the country’s oldest beer brands, which started brewing in 1888 –

and Ichiban Shibori. It also handled domestic distribution for several foreign brands, including Budweiser and Heineken. Prior to the coup, Kirin had been urged by human rights groups to terminate its joint-venture partnership with the MEHL, which provides welfare fund management services for the military. The human rights group had alleged that Kirin’s continued part-ownership of two military-linked breweries made it in effect complicit in war crimes committed by the military. The early February coup however gave the Japanese brewer no other reason to continue defending its JV with the military in Myanmar. “Given the current circumstances, we have no option but to terminate our current joint-venture partnership with Myanma Economic Holdings … as a matter of urgency,” Kirin said in

a statement. Meanwhile, French retail chain Carrefour SA and its Canadian counterpart Alimentation CoucheTard Inc. abandoned talks on a proposed US$20 billion merger, following stiff opposition from the French government. The merger would have created a retail powerhouse, combining Couche-Tard’s North Americafocused network of 14,200 convenience stores with Carrefour’s sizable European operations, which include hypermarkets and smaller outlets. Finance Minister Bruno Le Maire declined the proposed transaction highlighting that the country needs to maintain domestic control over its food supply.

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The Kenya Milling & Bakery Expo events are a series of shows that enable consumers and the general public to touch, feel and taste the latest packaged grains, milled products and baked goods including: Baked goods – bread, cakes, biscuits and cookies • Cereals and grains – from maize, wheat, rice, sorghum and many more • Legumes and oilseeds from alfalfa, clover, beans, peas, lentils, lupins, soybeans, peanuts, sunflower, etc • Processed and packaged flours and other products originating from beans, peas, maize, wheat, rice, sorghum and many more •Breakfast cereals and snacks • Extruded and ready to eat products • Baby food and nutritious flours and blends FOODBUSINESSAFRICA.COM

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NEWS UPDATES

BRIEFS Nigeria opens first sugar institute to boost productivity, attain selfsufficiency NIGERIA – Nigeria has officially inaugurated the country’s first sugar institute to facilitate knowledge sharing within the sector, promote productivity which will enable it attain self-sufficiency in production of the commodity and assist the sustenance of the 2017 Nigeria Sugar Master Plan (NSMP). The Nigeria Sugar Institute (NSI), located at Kwara state, will develop human resource to enhance efficiency and effectiveness of the country’s sugarcane industry by offering regular refresher technical and management courses for staff of sugar companies as well as fresh graduates desiring to make a career in the sector. The development of the institution was undertaken in collaboration with the government of India after the National Sugar Institute of India and the National Sugar Development Council (NSDC) inked a Memorandum of Understanding (MoU) in 2020, to benefit from India’s expertise.

FOOD SAFETY

Kenya opens National Dairy Laboratory to enhance safety compliance

KENYA – Kenya has inaugurated a National Dairy Laboratory to be managed by the country’s Dairy Board, to boost its capacity to conduct quality surveillance and safety compliance. The operationalization of the laboratory will enhance food quality, nutritional security, increased manufacturing through processing, value addition, traceability, product diversification and market penetration. Meanwhile, the Kenya Bureau of Standards (KEBS) has approved new analytical test methods for measuring levels of lactose in milk and milk products being sold in the market, meant to protect consumers who suffer from its intolerance.

Under the new guidelines, manufacturers are required to ensure that their products are safe for consumption and have all milk products labelled either as containing lactose or being lactose free or having lactose levels that meet the minimum thresholds. “Food standards ensure food quality and safety to final consumers throughout the supply chain, from preparation of raw materials, production and distribution to the market,” says Lt Col (Rtd.) Bernard Njiraini, Managing Director, KEBS. The new guidelines are among the 35 food standards, test methods, codes of practice and guidelines approved by the National Standards Council (NSC) to strengthen food safety and quality in the country. According to KEBS, it is expected that these news standards will increase the competitiveness in the market by providing higher quality products and promote lower prices through technological innovations.

SUSTAINABILITY

Fonterra joins forces with DSM to accelerate transition to methane free agriculture

NEW ZEALAND – New Zealand dairy co-operative Fonterra and Royal DSM, a global science-based company, have signed a collaboration agreement to accelerate the transition to lower methane agriculture. 22

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Methane is a major challenge for the agriculture sector, particularly in New Zealand, where it makes up almost half of the nation’s greenhouse gas emissions. Finding and applying solutions that would significantly contribute to achieving Paris Agreement commitments and New Zealand Zero-Carbon goals is thus a key priority for both companies. To this end, DSM has developed a feed additive, called Bovaer, which effectively and consistently reduces methane emissions from cows by over 30%. The World Resources Institute has recently featured the solution as

one of the ten global break-through technologies that can help sustainably feed the world. A trial at the Dairy Campus of Wageningen Livestock Research in Leeuwarden, the Netherlands, has also successfully demonstrated that it can be included in dairy cow diets to significantly reduce methane emissions. According to the trial, the emission reductions vary from 27% up to 40% of methane per cow, depending on the diets and the amount of methane inhibitor in the feed.

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INVESTMENTS

Fan Milk Plc. to establish dairy farm and training institute in Nigeria As Promasidor imports 250 cows from the US to boost its Ekiti State farm

NIGERIA – Fan Milk Plc, the Nigerian subsidiary of multinational food-products corporation Danone, has inked a partnership agreement with the government of Ogun State to undertake a backward integration project to enhance local dairy production. The initiative is in line with the Central Bank of Nigeria (CBN) policy to discourage the importation of dairy products like milk, yogurt, cheese and other milk derivatives, of which the country spends about US$1.5 billion annually.

“We are quite elated as this marks the beginning of one Danone and Fan Milk social impact project in Nigeria considering the effect we expect this project to have on the host community in Ogun State,” stated Olakunle Olusanya, Company Secretary & Legal Adviser Fan Milk Plc. As part of the project, Fan Milk has laid the foundation for establishment of a world-class Model Dairy Farm and Training Institute at Odeda Farm Institute, bringing the expertise of its parent company to the fore. The technical institute developed will train local dairy farmers and improve their skills while the dairy farm will also incorporate pasture development. The agreement is aimed to improve the local farmer and community participation in dairy farming, with a target of 1.4 million producing litres of milk in the next 24 months, reports

Ogun Today. Meanwhile, Promasidor, one of Nigeria’s leading dairy processors in partnership with Ekiti State Government, have received 250 new Jersey cows from Texas, USA, to add to its existing herd of 192 indigenous and crossbreed cows available on the Ikun Dairy Farm Limited (IDFL) in Ekiti State, aimed at reactivating the farm. The joint venture between the processor and the state government initiated in 2019, will see Promasidor inject US$5m investment to reactivate the farm, as a catalyst that will turn around the economic fortune of the state, to ensure a daily production of about 10,000 litres of milk in the country to further discourage its reliance on imported dairy products.

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SARIT EXPO CENTRE, NAIROBI, KENYA The Process & Pack Expo Kenya edition showcases the latest food and feed milling, processing, packaging and laboratory technologies including: Post-harvest, storage and handling systems, including silos • Grain and feed processing, milling and packaging technologies • Dairy and beverage processing and packaging technologies • Meat, fish and poultry processing and packaging technologies • Laboratory equipment and chemicals plus food and personnel safety supplies • Engineering and automation services and supplies • Refrigeration and cooling services • Outsourced storage, packaging, processing and people management solutions • Hardware and software systems • Fruit and vegetable processing and packaging solutions.

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SUPPLIER NEWS & INNOVATIONS

M&A

Neogen acquires Irish analytical solutions supplier Megazyme USA – The international food safety solutions company Neogen Corporation has acquired Irelandbased Megazyme, a major supplier of analytical solutions used by quality control laboratories in the global food and beverage industries. Founded in 1988, Megazyme has been developing and refining analytical methods used to measure the carbohydrates and enzymes in grain and cereal products that affect quality. The company later expanded its scope to cover the wine, dairy and food industries, and has over time gained worldwide acclaim for its innovative methodologies and exceptional component purity. According to Doug Hopek, Neogen’s senior director and head of corporate development, the acquisition of Megazyme provides a natural and complementary expansion of it’s food diagnostics portfolio. With the acquisition, Megazyme becomes part of the larger Neogen family and will continue to operate as a standalone business, managed through NEOGEN’s European operations in Scotland. Dr. Barry McCleary, Megazyme’s co-founder will also continue to be a strategic advisor to Neogen in the area of food quality diagnostics. “The addition of Megazyme to the global NEOGEN business will strengthen our relationships with the largest food producers and those companies that are aligned with our mission of food security and quality,” said Dr. Jason Lilly, Neogen’s vice president of international business. Dr. Lily on his part expects that the integration of the Megazyme product line into NEOGEN’s traditional food safety products will allow NEOGEN to expand commercial relationships across food companies.

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WATER TECHNOLOGY

Endress+Hauser introduces ready-to-use water analysis panels to boost water safety

SOUTH AFRICA – Endress+Hauser, a global leader in measurement and automation technology for process and laboratory applications, has introduced ready to use water analysis panels, to ensure water monitoring is undertaken with minimum effort and has maximum reliability. The new CDP50 water analysis panel portfolio is specially designed for operators of municipal waste water treatment plants (WWTP), drinking water and industrial plants to benefit from quick installation, state-of the-art instruments on the panels, as well as foolproof operation. The panels can measure turbidity, pH, ORP, conductivity, oxygen, chlorine as well as SAC easily on a single panel, taking advantage of Memosens technology; with operators saving valuable working time and at the same time, the solutions take up very little space in the plant. “The highlight of this solution portfolio is our seamless way to customize the panels according to our customers’ requirements: it is robust, water-saving, and easy to maintain,” highlighted the firm. The water analysis panel is completely ready-to-use and

includes all components from sample preparation to the transfer of data to higher-level systems, allowing seamless integration into existing communication networks, such as Profibus DP, Modbus TCP/IP, as well as remote monitoring via web server and a cloud connection. “It’s then simply a matter of connecting the panel and it’s ready to go,” stated the company. THE PANELS CAN MEASURE TURBIDITY, PH, ORP, CONDUCTIVITY, OXYGEN, CHLORINE AND SAC ON A SINGLE PANEL Meanwhile, the company has welcomed Rotork to its Open Integration partner program, which will enable them to drive digitalization towards customer value. Rotork is a market-leading global provider of mission-critical flow control and instrumentation solutions for oil and gas, water and wastewater, power, chemical, process and industrial (CPI) applications.

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PROTEIN DRINKS

Novozymes launches enzyme to improve taste of high protein drinks

DENMARK – Danish based global biotechnology company Novozymes has launched a new enzyme, which it says will help improve the taste of high protein drinks. The new enzyme christened Formea Prime will help the industry produce better tasting protein beverages that consumers seek to buy in a growing market. The company says that consumers around the world are becoming increasingly concermed about their health and

want to buy food that support their well-being, and as a result of this new trend, protein-enriched food and beverages, and particularly ready-todrink protein beverages are in high demand. Novozymes reveals that as the market develops, the consumer is changing from sportsmen to everyone. Aging people are becoming more focused on retaining muscle mass, creating further demand for protein fortified drinks. It adds that while health is important for consumers, many people have experienced off-tastes such as bitterness or astringency that, in many cases, come along with protein food and beverages. To compensate, manufacturers would very often add ingredients to mask such off-tastes. “We have developed Formea

Prime to help beverage producers and brands to overcome the typical formulation challenges when using whey protein hydrolysates, particularly in ready-to-drink protein beverages,” says Christian Schmock, Head of Business Unit for Food Platforms at Novozymes. Formea Prime is a protease enzyme and it builds on Novozymes’ enzymatic Formea platform, which was developed for protein drinks. “Used in the production process, Formea Prime provides all the benefits of whey protein hydrolysates, such as improved stability and improved absorption – but without the problems of bitter taste,” explains Christian Schmock.

INFANT NUTRITION

Bunge unveils infant formula ingredient that “mimics the fat composition of Chinese mother’s milk”

CHINA

– American based food ingredients supplier Bunge Loders Croklaan, has announced the launch of Betapol Select, a lipid ingredient for infant formula that “mimics the fat composition of Chinese mother’s milk”. The new ingredient is developed out of a recent study that showed existence in variation in mother’s breast milk from different regions. “We are expanding our infant nutritional lipids portfolio in all geographies and getting closer than ever before to the gold standard of mother’s milk ”, said Dr. Emiliano Rial Verde,

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Vice President Nutrition at Bunge Loders Croklaan. “Research in infant nutrition made us understand that macronutrients in human breast milk vary – not only with lactation stages, diurnally, and within feeds, but also regionally. These regional differences are influenced by the mother’s origin and diet. Our new solution combines the benefits of Betapol with the OPL and OPO balance naturally present in Chinese mother’s milk fat.” The company says that in Western mothers’ milk fat, OPO is the most prevalent triglyceride, followed by OPL (oleic-palmitic- linoleic). In Chinese mother’s milk, it is the other way around: the fat composition contains a higher level of OPL, followed by OPO. To mimic this balance, Betapol Select provides a high level of SN-2 palmitate with the right combination of OPL and OPO triglycerides. “Data from Chinese mother’s milk

gave us confidence in introducing Betapol Select to the Chinese market and respond to the needs of personalization that parents are looking for in premium infant nutrition”, says Dr. Wiola Mi, Global Human Nutrition Science Lead of the new generation Betapol. “Breastfeeding provides babies with the best start in life, but when breastfeeding is not an option, choosing the right infant formula is key for babies’ healthy growth and development. While mother’s milk fat contains only 3-4% fat, it provides 50% of a baby’s energy intake in the first six months. Especially designed for the needs of Chinese babies, Betapol Select provides the right OPL-OPO balance to mimic Chinese mother’s milk fat and, at the same time, comply with the current and upcoming Chinese GB standards for infant and toddler formula".

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SUPPLIER NEWS & INNOVATIONS

LIQUID PACKAGING

PERSONAL HEALTH

DuPont introduces new probiotic with proven ability to reduce perceived stress USA – DuPont has launched HOWARU Calm, a probiotic aimed at helping dietary supplement manufacturers decrease the cycle of consumer stress. The company says that the new probiotic can be added to existing dietary supplement products or used to create new ones. It can also be formulated into innovative food and beverage products to meet the increasing consumer demand for alternative probiotic formats. DuPont says the product helps adults manage the psychological response to perceived stress, promoting mental well-being and a relaxed state of mind. Prolonged stress can negatively affect mood, sleep and digestive health. “Too much stress, or daily chronic stress has become more prevalent in today’s society and can seriously impact our mental and physical well-being and overall health,” said Dr. Elaine Patterson, senior R&D scientist, DuPont Nutrition & Biosciences. She revealed that Dupont has been investigating the links between the gut microbiota and brain health —the so-called microbiota-gut-brain axis with the aim of discovering a natural probiotic solution targeting brain health, more specifically mood, stress and anxiety. “We are proud to finally share the fruits of our innovation and have developed a product that helps consumers target stress at the source so they can prioritize both their mental and physical health,” Dr. Elaine added. HOWARU Calm features strain – L. paracasei Lpc-37, which was scrupulously tested to ensure its quality, efficacy and performance. “By launching HOWARU Calm, we’re allowing dietary supplement manufacturers to develop an efficacious end-product that satisfies market demand for probiotic supplements aimed at reducing 26

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THE PRODUCT HELPS ADULTS MANAGE THE PSYCHOLOGICAL RESPONSE TO STRESS, PROMOTING MENTAL WELL-BEING stress and promoting mental wellbeing.” Meanwhile, DuPont has debuted an effective and label-friendly antimicrobial system for processed meat manufacturers in the Middle East and Africa. Proven to inhibit the growth of Listeria monocytogenes and other gram-positive bacteria, the newly launched NovaGARD NR 100-G is part of the DuPont Danisco range of antimicrobials. The threat of listeriosis – a disease caused by Listeria Monocytogenes in the Middle East is ever present as almost 90% of meat products sold in the region are processed and cooked. NovaGARD NR 100-G keeps meat products safe and high in quality throughout shelf life. “This game-changing technology is now accessible across parts of the Middle East, thanks to regulatory expansion of use,” says Keshav Krishnamani, regional product manager, DuPont Nutrition & Biosciences. “It will provide manufacturers with a higher degree of flexibility in their product formulations and an opportunity to replace chemical preservatives.” NovaGARD NR 100-G is a synergistic blend of two natural ingredients – nisin A, a naturally occurring antimicrobial that has demonstrated its efficacy for more than 60 years; and rosemary extract, which has been found to have antioxidant and antimicrobial properties on top of its flavoring attributes.

India's UFlex to double production capacity, seek regional markets in Middle East & Africa

INDIA – UFlex Limited, a pioneer in the manufacturer of aseptic liquid packaging in India, has announced plans to double its aseptic plant’s production capacity from 3.5 billion to 7 billion packs per annum. The expansion will be implemented by Asepto, UFlex Limited’s aseptic liquid packaging division, which is based in the Indian state of Gujarat and will be completed by the end of 2021. Asepto packages are designed to deliver user convenience, easy opening and optimal shelf life to products like juices, non-aerated alcoholic beverages and highly perishable liquid consumables like milk and other dairy products. UFlex says that the expansion was informed by the new contracts it had got from clients and an increasing demand for the company aseptic packaging laminates. Commenting on the expansion, Ashwani Kumar Sharma, President & CEO, Aseptic Liquid Packaging Business, UFlex Ltd., said, “I am excited that our team and state-of-the-art facilities we have are well-positioned to respond to the increasing demand for our services and innovative technology in aseptic packaging.” Sharma noted that they have been working on taking Asepto globally, adding that the “expansion takes a leap to enlarge the brand’s horizons to different continents and reflects Asepto’s strong position in the marketplace and positive outlook for the future”

FOODBUSINESSAFRICA.COM


CANNING

Crown to build new US$145m aluminium beverage can plant in US

USA – Leading US manufacturer of metal packaging for the food industry Crown Holdings Inc. has announced that it will build a new aluminium beverage can manufacturing facility in Virginia, expanding its North American supply network as it aims to address the growing market for standard and specialty beverage cans.

TECHNICAL CENTRE

Parlsgaard opens state-ofthe-art facility in Mexico to serve the region MEXICO – Leading Danish ingredients provider Palsgaard has announced the opening of a new facility in Mexico, which will give the company tools for continuing growth and responding to the demands and requests of its customers in Mexico and Latin America. Located in the central Mexican state of San Luís Potosí, the new 65,000 m2 facility houses offices and common areas plus a production plant and temperature controlled

THE DEMAND FOR ALUMINIUM CANS SPIKED DURING THE COVID-19, OUTSTRIPPING DEMAND & CREATING A SHORTAGE The facility will supply cans to customers serving a variety of categories including sparkling water, energy drinks, carbonated soft drinks, teas, functional beverages, hard seltzers, beers and cocktails. Crown’s investments are timely. The demand for aluminium cans particularly spiked during the Covid-19 period, outstripping demand and creating a shortage across the industry. In the forecast period of 2021-2026, the industry is expected to witness a CAGR of 3% to reach a value of US$ 1142.71 billion by 2026. The firm announced it was building a beverage can plant in Kentucky and also announced plans to build its sixth beverage can plant in Brazil. The Virginia plant is expected to begin operations in the second quarter of 2022. FOODBUSINESSAFRICA.COM

THE CENTRE HAS BEEN FITTED WITH HUNDREDS OF SOLAR PANELS TO ENSURE IT CONTINUES WITH THE COMPANY TRADITION warehouses. It also has state-ofthe-art application centres for some of the most critical industry sectors including bakery, confectionery, dairy, ice cream, lipids and meat. The company says that the Centre provides its application teams the opportunity to welcome customers and help test and develop new consumer products. The Centre has been fitted with hundreds of solar panels, to ensure it continues with Palsgaard’s tradition of carbon neutral facilities.

PLANT BASED FOODS

Omya launches new ingredients to support development of plantbased foods SWITZERLAND – Swiss mineral expert Omya has launched a range of new “natural and vegan friendly” ingredients to support the development of the emerging plantbased food industry. The new ingredients include Purple Sweet Potato Concentrate,

Safflower Extract, and Yeast Extracts. Omya says that the Covid-19 crisis has made people realise, once again, that the world is a holistic system that has to be treated with care. Consequently, Omya notes that consumer demand for natural, plant-based and vegan clean label applications is further emerging. The company notes that through its newly launched ingredients, it is addressing the need for suitable, natural, and sustainably sourced ingredients that are needed for further development of the sector. The Purple Sweet Potato Concentrate for instance, perfectly replicates meat-like colors for plant-based burger patties or vegan sausages and also provides a natural appearance for drinkable and spoonable dairy alternatives. Safflower Extract adds a lively tint to fruit preparations across a range of drinkable and spoonable dairy alternatives, resulting in the expected authentic appearance.

JAN/FEB 2021 | FOOD BUSINESS AFRICA

27


SUPPLIER NEWS & INNOVATIONS

CANNING

Ball to build US$205m plant in Czech Republic to bolster output in Europe

PAPER PACKAGING

GEA introduces machine that enables use of paper-based packaging alternatives GERMANY – GEA, one of the largest technology suppliers for food processing and a wide range of other industries, has unveiled a new packing machine that functions with paper. The new machine called PowerPak Plus is a thermoforming packaging machine that enables the use of paper-based packaging alternatives to meet sustainability demands.

CZECH REPUBLIC – Packaging manufacturing conglomerate Ball Corporation has announced plans for a new €170 million (US$ 205.7 million) aluminium can plant in the Czech Republic, as it looks to boost its output in the EMEA region. The company says that it intends to begin construction of the new facility in the spring of 2021 and to launch operations in October 2022. The plant, which will be located near Pilsen, in the west of the Czech Republic, is expected to employ up to 200 people and aims to meet rising demand for aluminium beverage cans. With two production lines, the new factory is planned to occupy a site of more than 100,000 square metres, enabling further expansion when required. “We plan to install sophisticated automated equipment at the facility, leveraging the latest modern technologies to minimise environmental impacts,” said Carey Causey, President, Ball beverage packaging EMEA. Ball has also unveiled plans to boost its beverage packaging capabilities in the US with a new aluminium end manufacturing facility.

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The firm says following technical modifications, the machine is now able to use paper in its range of solutions – including vacuum, MAP and shrink packaging – for a variety of food products such as meat, dairy, bakery and convenience foods and has capacity to produce thermoformed packs of around 20mm in height with a thin top film to close and seal each pack. It is made from a moldable paper composite consisting of more than 80% paper and a residual amount of plastic for features that deliver barrier properties. GEA further notes that the machines heating system warms the coated paper to the precise temperature required so that it’s ready for molding via vacuum and compressed air. As a result, GEA says the new features make it easier for consumers to separate the paper from the plastic for disposal into their respective recycling streams.

PAPER PACKAGING

Paper milling company partners Tetra Pak on used beverage cartons project NIGERIA – Tetra Pak, through its operating unit in West Africa, has signed a recycling agreement with Onward Paper Mill to develop sustainable recycling solutions for Used Beverage Cartons (UBC) in Nigeria. Under the agreement, the Nigerian manufacturer and marketer of paper products, will use recycled beverage cartons as raw material, riding on Tetra Pak’s expertise on collecting and recycling the packages. “We protect our planet by contributing to the circular economy in recycling all packaging materials collected. Through our efforts, we have helped to grow the number of facilities that recycle cartons from 40 in 2002 to 170 today, globally,” said Managing Director Tetra Pak West Africa, Aruna Oshiokamele. Currently, Onward Paper Mill with an annual production capacity of 20,000 tonnes uses wood to manufacture its paper, board and other tissue products. Through this partnership the Nigerian company hopes to increase its production and contribute to the achievement of sustainable development objectives in Nigeria by reducing deforestation. Nigeria generates more than 32 million tonnes of solid waste annually, out of which only 20-30% is collected. Many cities in the country face serious plastic waste management challenges. Other companies who have also undertaken projects to reduce solid waste pollution in the West African nation include Coca-Cola. Through its philanthropic arm, The CocaCola Foundation provided a grant to the Initiative for The Advancement of Waste Management in Africa to promote waste recycling in the country. FOODBUSINESSAFRICA.COM


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NEW FOOD PRODUCT INNOVATIONS

Kenafric Industries Beverage Products Kenafric Industries has debuted a line of beverage products from its recently commissioned plant. The company's new products include Safi drinking water, Mr. Twista fruitflavoured drinks and Steam energy drink, which are available in a number of packaging options. The beverages line follows the company's recent entry into the biscuits category with a new plant, which are additions to its confectionery and culinary food product lines

www.kenafricind.com

Kericho Gold Cold Brew Teas for Water Bottles Gold Crown Beverages (K) Ltd introduces a new line of its luxurious tea varieties. The Kericho Gold Cold Brew Teas provide convenience as a vital addition to drinking water, adding unique flavour and health benefits to this vital drink. Available in 12-pack boxes, the teas come in various purple, green and black tea and in a number of flavour options including blueberry, blackcurrant, lemon and rose; cucumber, lemon and mint; apple, blueberry and blackcurrant, etc

www.kerichogold.com

Broadway Bakery 50/50 Bread Broadway Bakery has introduced 50/50, the region's first bread made with a mix of white bread flour and brown bread flour. A sandwich bread that is enriched with essential fiber, less sugar and packed with energy, the bakery says that 50/50 meets the needs for the entire family. “We had seen there was a division at the breakfast table in most households, where adults prefer our brown bread and the kids love our white bread. We came with a solution that brings family together at an affordable price,” says the company. The product is available in 400g packs.

www.broadway.co.ke

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FOODBUSINESSAFRICA.COM


Java House Ice Cream & Granola Bars Java House, the leading cafe operator in East Africa, continues with its transformation into a food company by introducing its new ice cream and granola bars products. The ice cream are available in 150g and 450g plastic cups with vanilla, strawberry and chocolate options, while the granola bars are availed in 70g sizes

www.javahousegroup.com

DairyGold Full Cream Milk & Protein Shake DairyGold, the dairy subsidiary of Trade Kings Group in Zambia, has launched two new dairy products. Thecompany has debuted its DairyGold Full Cream Milk, which is available in 500 ml and 200 ml plastic pouches and Nutro Charge, a delicious protein-rich energy shake. The company says the product is fortified with 25 minerals and vitamins and is designed to give consumers additional drie to go through the day. Available in 96g carton box packaging.

www.dairygold.co.zm

Balaji Group Diet Flavoured Drinks Leading Ugandan company Balaji Group has introduces a range of diet flavoured drink shots into the market. The shots, which are available in 200ml plastic containers, come in mango, pineapple, passion fruit and coconut flavour options, for on-the-go consumption. With no sugar added, the firm utilises a number of artificial sweeteners

www.balajigroupealtd.com

FOODBUSINESSAFRICA.COM

JAN/FEB 2021 | FOOD BUSINESS AFRICA

31


TRANSPARENCY

2020: FOOD DELIVERY

E-COMMERCE

NUTRITIOUS FOOD

COVID-19

SUSTAINABILITY

SOCIAL DISTANCING

HAND WASHING

ALCOHOL BAN

VACCINE

COVID-19

COVID-19

TRUMP

SANITIZER MASK

A REVIEW

HARD SELTZER

CURFEW

TRUMP

LOCKDOWN

PLANT-BASED FOODS

ANIMAL FREE IMMUNITY

AT HOME CONSUMPTION

Covid-19 knocks the sail on deals in 2020 but Africa's food industry remains positive

Deals are the lingo of businesses and the food and beverage industry in Africa had its fair share in 2020. Despite the pandemic, companies found ways to streamline their operations with the clinching of extra funding, acquiring and merging businesses, forming strategic partnerships and in some instances divesting to accelerate growth and create synergies in operations. As we reminisce on the past year in food industry, here are some of the deals that made headlines:

By Catherine Wanjiku

JANUARY January started with the government of Rwanda offloading 98.3% shareholding in Burera Diary Limited to African Solutions Private Ltd (Afrisol), a Zimbabwean firm. Burera Diary Ltd was one of three public firms, alongside Nyabihu Potato Company and Rutsiro Honey Ltd, the Rwanda Development Board (RDB) had put up for sale in mid2019. In Tunisia, Maghreb Private Equity Fund IV acquired additional 16.20% stake in Tunisian Cheese maker Land’Or raising its ownership to 21.6% of shares. In neighbouring Morocco, IFC, a member of the World Bank Group, provided US$24 million in financing to the country’s largest apple producer Zalar Agri, to help the company expand its fruit and nut growing operations. On a similar track, German development finance institution DEG granted US$2.2 million to fairafric, a German company

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specializing in the production and marketing of chocolate bars to establish a chocolate production plant in Ghana, in response to growing demand. Meanwhile, Sime Darby Plantation (SDP), a Malaysian oil palm plantation company completed the sale of its entire 100% equity interest in its palm oil concession in Liberia, Sime Darby Plantation Liberia Inc. (SDPL), which had been a continuously loss-making operation to Mano Palm Oil Industries Limited (MPOI). In Zambia, the Zambia Cooperative Federation (ZCF) entered into an equity partnership with Kasama Milling to own 70% shares in the milling company, while in South Africa, the Public Investment Corporation of South Africa, responsible for investing Government Employee Pension Fund, increased its stake in Africa’s largest packaging manufacturer, Nampak to 20.54%.

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Further North of Africa, Ezdehar Management, a private equity fund manager through its first fund, the Ezdehar Egypt Mid-Cap Fund acquired an undisclosed stake in Rich Food Industries, a fast-growing manufacturer of convenience foods focused on the animal protein segment in Egypt. FEBRUARY Big news emerged when Nestlé Water Ethiopia, a subsidiary of the Swiss multinational company Nestle, sold back all its 51% share in Great Abyssinia Spring Waters after three years of partnership, exiting the water business in Ethiopia as part of its global water business restructuring plans. On the other side of the planet, Africa Capitalworks Management, a Sub-Saharan Africa-focused private equity investment company, acquired a significant minority equity shareholding in Gaselia Industries Group, one of the largest home grown beverages groups in West Africa. Founded in 2002 by local entrepreneurs and headquartered in Bamako, Mali, Gaselia has three bottling production and distribution operations, located in Mali, Ivory Coast and Guinea-Conakry. Another on the trend deal to be announced was Amethis, alongside its partners DEG, MCB Equity Fund and IFC, a member of the World Bank Group, acquiring minority equity stake into one of Kenya’s largest retailers Naivas Group, for an undisclosed amount. The capital injection is earmarked for expansion in the highly competitive local supermarket business that has attracted major players from across the globe. In South Africa the COVID-19 outbreak has impaired some of the transactions, which would have been long finalized. One of such business that is still continuing with sale negotiations is Grand Parade Investments (GPI), who is seeking to offload its Burger King franchise. GPI entered into talks on February 18

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2020 to sell its 95.36% stake in Burger King SA for R670m (US$45.9m) and the 100% it holds in Grand Foods Meat Plant for R27m (US$1.85m) to private equity outfit Emerging Capital Partners (ECP) Africa Fund IV. The deal was to be concluded by June 30, but on July 29 GPI announced that the terms of the sale had been renegotiated after Covid-19 wiped off about R100m (US$6.8m) of the unit’s value. Negotiations are still continuing between the parties. The same fate befell Tongaat Hulett who entered into negotiations for the potential sale of its 100-yearold starch business to the subsidiary of logistics company Barloworld for R5.35billion (US$342.6m) in an effort to reduce its debt and cover ongoing operations. Barloworld later on indicated that a material adverse change had occurred in relation to the sale of the starch business due to COVID-19. The sale was finalised later in the year. Meanwhile, Agri-Vie Fund I, the Africa food and agribusiness investment fund managed by the pan-African private equity investment firm, EXEO Capital, announced its exit from InteliChem, the holding company of Terason and Technichem. The InteliChem Group of companies is a leading provider of crop protection solutions, specialised plant nutrition and seeds to the agricultural industry and related peripherals through its subsidiaries Terason and Technichem. By way of contrast, Phatisa, through its Food Fund 2, together with Sabvest, Masimong Chemicals and Rolfes management, acquired the entire issued share capital of Rolfes Group, in a public-to-private transaction to unlock new growth opportunities. Established in 1938, Rolfes is a supplier of agricultural, food, industrial and water chemical management solutions and services for both the South African and international markets. MARCH In South Africa, the close of the

acquisition of South African food company Pioneer Foods by US giant PepsiCo for US$1.7bn (R25.52bn) made a lot of waves, especially as it showcased the beverage giant’s strong ambition to grow into Africa. First announced in 2019, the transaction was finalized in March 2020 after the Competition Tribunal of South Africa gave it the green light. Also in the Southern African country, the region’s largest diversified packaging manufacturer, Nampak completed the sale of its glass packaging business to Isanti Glass 1, a local subsidiary of beer maker AB InBev for about R1.5 billion (US$81.3m), to enable it focus on its metals business, which generated more than 60% of the company’s trading profit. Further, Norsad Finance, an impact investor provided a R150 million (US$8.76m) mediumterm facility to Grobank, a South African specialised commercial agricultural bank. In Kenya, the International Finance Corporation (IFC) issued US$4 million to Suguna Poultry Kenya Ltd, subsidiary of India’s multinational Suguna Foods to expand its animal feed and hatcheries business. The African Development Bank (AfDB) on the other hand signed an agreement with DAL Group, Sudan’s largest foods and agribusiness company, for the provision of up to US$75 million to improve the agribusiness sector, as well as leverage its private sector investments. The agreement was the Bank’s first private-sector loan to the African nation, which has been a pariah state following decades of military rule. In the same vein, the European Bank for Reconstruction and Development (EBRD) provided a US$5.6 million loan to support the expansion plan of Al Dahra Holding subsidiaries in Morocco, Al Dahra Morocco Factories (ADFAC) and Al Dahra Morocco (ADMO). Al Dahra is an agribusiness firm specializing in the cultivation, production and trading

JAN/FEB 2021 | FOOD BUSINESS AFRICA

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YEAR IN REVIEW: 2020

THE CHICOA FARMS IN MOZAMBIQUE RECEIVED FUNDING IN 2020 TO EXPAND ITS AQUACULTURE VENTURE

of animal feed and human food commodities such as rice, flour, fruits and vegetables. APRIL April was a relatively quiet month as the negative effects of the COVID-19 pandemic started to hit home in the region. However, the month saw global agribusiness company, Cargill appoint Maxim Agri Ltd to be the sole distributor of its animal nutrition products in Kenya to enable shorter lead times and consistent supply to its customers. With a focus to expand its portfolio, Dutch development bank FMO invested US$25m in African Development Partners III, a pan-African fund managed by Development Partners International (DPI), targeting established and growing consumer-focused companies in the food & agriculture, manufacturing and other sectors. On the same note, Phatisa Food Fund 2 (PFF 2) and a group of co-investors, Norfund, Mbuyu Capital and DEG acquired Southern African integrated agricultural solutions provider, Farming and Engineering Services Limited (FES) to support the company’s long term growth strategy and expand its successful business model to neighbouring countries. FES, established in Malawi in 1967, caters for a broad customer base of commercial and emerging farmers. Sana Partners Fund I, a private equity fund also had an eye on Brenn-O-Kem, a South African company that adds value to wine waste such as grape skins and seeds (i.e. pomace) and wine lees into natural products used in the wine, brandy, food and pharmaceutical industries. The month closed with Zambeef, one of the largest integrated cold chain food producers in Zambia disposing off its Sinazongwe farm at a cost of US$10 million to Chenguang Biotech – a Chinese company. MAY Unlike in April, a dozen of deals were reported in May, spread across multiple sectors, as deal flow started again, as the continent was starting to get into terms with the

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pandemic. Zimbabwe’s packaging manufacturing industry welcomed Brainman Investment’s acquisition of stateowned, Zimbabwe Glass Holdings (Zimglass) for US$22 million, in a development likely to pave way for the revival of the country’s sole glass manufacturer. Another player in the same sector, Tetra Pak acquired South Africa-based asset management company, Gaussian to enhance its existing outcome-based solutions for customers. In Kenya, Export Trading Group (ETG) acquired a US$15 million syndicate loan from Finnfund along-side other investors, to support major agricultural supply chain of numerous African and Asian countries, which were particularly affected by the pandemic. In Tanzania, AgDevCo, the UK-based social impact investor, issued a long-term debt investment to Pee Pee Tanzania Limited (PPTL), a regional leader in the production of grain storage bags. The financing was to be channelled towards expanding PPTL’s manufacturing capacity, including setting up a newly dedicated factory for the production of grain storage bags. Meanwhile in Uganda, Pearl Capital Partners through the Yield Uganda Investment Fund, injected UGX 4.6bn (US$ 1.2m) in NASECO, the producer, processor and distributor of certified seeds in the East African community, geared towards improving NASECO’s production capacity and market development. The retail sector seems to have been the winner of the month. To start us off was Dubai-based conglomerate Majid Al Futtaim (MAF) obtaining KSH.3 billion (US$28.3m) loan facility from South Africa’s Standard Bank Group to finance expansion of its Carrefour franchise in Kenya. In Botswana, Sefalana Holding Company Limited, one of the country’s largest retail outfits acquired a 40% stake in Australian based supermarket chain, Seasons Group. Also, Ninety One, an asset management business, alongside Rand Merchant Bank Ventures (RMBV), the private equity arm of Rand Merchant Bank sold 24% of its equity investment in Kamoso Africa via its Africa Equity Fund 2(APEF2) to Botswana Development Corporation (BDC). With its deep pockets, Pan-African private equity firm, Development Partners International (DPI) invested US$56m into Société Industrielle des Conserves Alimentaires (SICAM), leading agri-business and tomato processor in Tunisia. The financing was aimed at reinforcing the company’s market leadership and help drive its international expansion strategy. Meanwhile, Ethiopia’s Cepheus Growth Capital Partners invested into Lion Brands Manufacturing Industries PLC (Lion Brands), one of the country’s leading manufacturers of fast moving consumer goods (FMCG) products and acquired a minority stake in the company. Malawi’s agriculture sector saw South African based, United Farmers Fund (UFF) Agri Asset Management, the agricultural fund advisor within the Old Mutual Investment

FOODBUSINESSAFRICA.COM


company Brait, whose largest shareholder is Christo Wiese, sold its 63.1% interest in retail chain, Iceland Foods to a newly established company NewCo, in line with its revised strategy to maximise value realisation from its assets over the next five years. The Public Investment Corporation of South Africa continued to rake in more investments, with the Competition Commission approving its proposed acquisition of Alzu Agri, a diversified agricultural and agro-processing group that is involved in maize, cattle, pig and animal feed production. Still in South Africa, Tongaat Hulett entered into a R375 million (US$21.7m) sale agreement for its Eswatini sugarcane farm with Eswatini’s Public Service Pensions Fund, as part of its strategy to reduce its R13bn (US$753m) by March 2021. The company also sold its sugar packaging and distribution business in Namibia (THN) to Bokomo. Certain sectors were not left behind such as the poultry industry, which saw Country Bird Holdings Proprietary Limited (CBH) acquiring 32.1% stake of JSE-listed feed and poultry products firm, Quantum Foods Holdings Limited, which were offloaded by Zeder Investments. Silverlands II SCSp, a Luxembourg-based investment fund later acquired a 32% stake in the company. Astral Foods Limited, the integrated poultry producer also got into the mix, taking a 6.42% beneficial interest in Quantum, as the

Group, invest in farming business Jacoma Estates - the parent company of Tropha Estates, an agribusiness developing over 1,000 hectares of irrigated macadamia. The month ended with Cairo 3A, an integrated agricommodity trader and manufacturer in Egypt closing on the EGP 420m (US$26.7m) acquisition of Egyptian Starch & Glucose Company from Americana Group, Americana Egypt and Cairo Poultry. JUNE Early in the month, the IFC opened its chequebook and issued US$12.41 million to Tunisia’s leading dates exporting company VACPA, to cushion the business from the adverse effects of the COVID19 pandemic. In Zambia, the country’s first seed company, Zamseed secured K91 million (US$5m) investment from UK based investment advisor, SilverStreet capital to expand its operations and ensure continuity of business. Another investor, Agri-Business Capital Fund (ABC Fund) provided a loan of US$904,000 to soya milling and aggregation company based in Ghana, Dragon Farming Limited, coupled with technical assistance. Ethiopia’s edible oil manufacturer Turaco also received backing from French development financial institution Proparco and Ethos Mezzanine Partners, receiving US$22m worth of financing. On the other side of the region, South African investment

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YEAR IN REVIEW: 2020

SOUTH AFRICA'S SUNDALE DAIRY FORMED A JOINT VENTURE WITH USBASED SCHREIBER FOODS TO BUILD A NEW CHEESE PLANT

scramble ensued. JULY It was Nigeria’s Dangote Sugar Refinery that started off the month with its acquisition and merger with sister company, Savannah Sugar Company Limited (SSCL) in a bid to enhance production capacity and further increase its market share. Still in the spirit of pulling together, South African dairy processor, Sundale Dairy formed a joint venture with International cheese processor Schreiber Foods, investing R70 million (US$4.25m) in the construction of a new cheese processing factory at the East London Industrial Development Zone. The country’s beverage sector was not left behind, with private equity specialist RMB Corvest forming a strategic partnership with Mark Bowman, former Managing Director of SABMiller Africa to acquire equity interest in South Africa’s fast-growing energy drinks business, Switch. In Zimbabwe, state-owned pension fund, the National Social Security Authority (NSSA) made its intention

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JAN/FEB 2021 | FOOD BUSINESS AFRICA

known of acquiring 35 percent shareholding in Silo Foods Industries, a government owned agro-processing company. By way of contrast, Feronia Inc. an agribusiness company operating in the Democratic Republic of the Congo (DRC), entered into a definitive purchase agreement with Straight KKM 2 Limited (KKM) to sell its equity interests in its operating subsidiary, Plantations et Huileries du Congo (PHC). AUGUST August saw a number of multinational food companies, Nestlé S.A, Heineken International and Unilever Overseas Holdings B.V, increase their shareholdings in their Nigerian subsidiaries, Nestlé Nigeria, Nigerian Breweries and Unilever Nigeria respectively. The move came at a time that the COVID-19 pandemic was stifling economies across the globe. However, some investors saw it as the opportune time to pick a good bargain following plummeting share prices. And also it was an opportunity for companies to internally raise funds

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to finance their operations as they faced economic headwinds. Through a series of transactions Unilever raised its shareholding to 74.03%, Nestle to 66.5% and Heineken to 55.9% in their respective Nigerian units. Elsewhere, Kenya Nut Company, East Africa’s largest nut processing firm acquired a US$ 18.7m loan financing from Proparco, to finance the company’s 2019-2021 development plan and enable it cope with the health crisis. Still in Kenya, cash-strapped retailer, Tusker Mattresses Limited inked a terms of agreement with an undisclosed Mauritius based fund, for the provision of a financing facility worth KSH.2 billion (US$18.4m), to help shore up its wobbling financial position and restock the struggling business. The company received the first tranche of the credit facility amounting to Ksh. 500 million (US$4.6m) the following month. Deep pocketed African ExportImport Bank (Afreximbank) approved a US$400m global credit facility agreement for the Kenya headquartered, Export Trading Group (ETG), to enable it continue to play its vital role in the agri-foods supply chain of connecting African farmers to markets. GLOBAL GIANTS UNILEVER, NESTLE AND HEINEKEN BOOSTED THEIR SHAREHOLDINGS IN THEIR NIGERIAN SUBSIDIARIES - PICKING UP GOOD BARGAINS DUE TO COVID-19 PANDEMIC In neighbouring Tanzania, Tanga Fresh, the country’s leading dairy processor, acquired additional investment from Dutch family-backed impact investor DOB Equity, to expand its production in the long-life milk market and provide access to a fair and reliable market for dairy farmers

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in the Tanga region. Downwards in South of Africa, Iberchem Group, a Spainheadquartered flavour and fragrance company announced the merger of

KEY NUMBERS

US$60M EOS CAPITAL & CLIMATE FUND MANAGERS' INVESTMENT IN NAMIBIA'S KELP BLUE - AN AQUACULTURE ENTERPRISE

its three brands: Iberchem, Scentium and Versachem to operate under the name of Iberchem South Africa, in a bid to expand its presence in the market. In the meat sector, food manufacturing giant, Tiger Brands entered into two separate agreements to sell its value-added meat products (VAMP) business units as a going concern for a combined R428 million (US$24.7 million) to two different and unrelated purchasers: Molare Proprietary Limited, one of South Africa’s largest pork processors to acquire the abattoir business at Olifantsfontein; and Silver Blade, the subsidiary of Country Bird Holdings to purchase the meat processing businesses at Germiston, Polokwane and Pretoria. With the move, the foods giant bid goodbye to the business unit that had entangled it with the Listeriosis crisis a few years ago. Another notable deal in the country was Famous Brands, South Africa’s leading quick service and casual dining restaurant franchisor, selling its controlling 51% stake in boutique café brand, tashas, to the founding Sideris family, who were holding the remaining 49%. The sale was in line with the group’s three year-strategic roadmap, which includes a narrower

focus of investment of resources in its signature brands portfolio. SEPTEMBER Searching for future growth, Land’Or, Tunisian dairy processor specializing in cheese making received €10.9 million (US$12.89m) loan financing from the European Bank for Reconstruction and Development (EBRD) to support its expansion in the country and investment in Morocco. Also in the dairy sector, the Arabian Food Industries Company, popularly known as Domty signed a memorandum of understanding (MoU) with Dutch dairy processor, FrieslandCampina to explore and undertake cheese export to African countries. Engee Manufacturing Limited, Nigeria’s leading manufacturer of Polyethylene Terephthalate (PET) resin used in packaging for soft drinks, bottled water and other household products acquired a US$39m financing facility from IFC and the International Development Association to build a Continuous Polymerisation PET Resin plant in Ogun state. In Zimbabwe, Nhimbe Fresh, the country’s leading horticultural firm secured US$15 million investment from an undisclosed United Arab Emirates investor, to expand its fruit production eyeing the export market. Meanwhile, South Africa’s Pioneer Fishing acquired canned pilchard brand, Glenryck in a bid to strengthen its position in the local canned fish market. Investment company Brait, continued to monetize its portfolio, offloading its stake in DGB, South African producer and distributor of wine and spirits to asset management corporation Capitalworks and businessman Tim Hutchinson, the long-time head of the liquor company, for an undisclosed sum. In the food service sector, SA’s Competition Commission conditionally approved Roos Foods, the leading KFC franchisee in South Africa to acquire

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YEAR IN REVIEW: 2020

KENYA'S GLACIER PRODUCTS RECEIVED AN UNDISCLOSED INVESTMENT FROM EXEO CAPITAL

10 KFC franchised restaurants owned by Van Eeden Kitskos. Killing two birds with one stone, Agri-Business Capital Fund (ABC Fund), a blended-finance impact fund issued loan financing worth £1.2 million (US$1.4m) to two West African companies, Anatrans, a cashew nut processor based in Burkina Faso and Maphlix Trust Ghana Limited, a producer and processor of tubers and vegetables. Another deal to be announced was Nigerian dairy processor FrieslandCampina WAMCO finalizing the acquisition of Nutricima’s dairy business from PZ Cussons Nigeria Plc for an undisclosed sum. With Ghana nearing commencement of its 2020/21 cocoa season, Ghana Cocoa Board (COCOBOD), in collaboration with a consortium of international and local financiers, inked an agreement for a US$1.3 billion syndicated loan facility to finance cocoa purchases and related operational activities for the season. OCTOBER Most deals registered in October were actualized in Southern Africa. To start off the month was plastic manufacturer Arkay Plastics receiving an undisclosed amount of investment from International private equity firm Spear Capital to finance its operations in Zambia and Mozambique. This was followed with South African restaurant franchisor, Famous Brands offloading its long-time struggling British fast-food operation, Gourmet Burger Kitchen (GBK) to Boparan Restaurant Group (BRG), a UK based restaurant group owner. Omnia Holdings, the South African chemicals and

fertiliser group was also on the disposal trail, reaching an agreement to sell its Oro Agri business to Rovensa, a Europe headquartered business that procures and distributes biocontrol, bio nutrition and crop protection solutions for US$146.9m (R2.4bn). Meanwhile, supermarket chain Pick n Pay bought on-demand online delivery app Bottles to strengthen its e-commerce operations. In Namibia, EOS Capital, a private equity fund manager partnered with Climate Fund Managers (CFM) to invest US$60 million (N$990 million) in Kelp Blue, a sustainable oceanic aquaculture enterprise focused on addressing the challenges of climate change and restoring the health of marine ecosystems through commercially viable solutions. The month closed with Ghanaian manufacturer of Yum-mie Noodles brand, Blow Chem Industries selling its noodle division to Indomie brand owner, De United Food Industries Ghana Limited (DUFIL). NOVEMBER November began with South Africa’s leading dairy companies, Dairy Farmers of South Africa (DFSA) and Coega Dairy merging operations, thereby creating a new agribusiness venture in the region known as Dairy Group. The 50:50 partnership brought DFSA’s over a century long experience as a market leader in the procurement of raw milk and supplying premium brands such as Clover, with Coega Dairy’s low-cost efficiency and house-brand knowledge. Investors also had an eye on the region’s aquaculture sector with Kenya’s largest commercial fish farm Victory Farms clinching an undisclosed amount of investment from Dutch family-backed impact investment firm DOB


Equity to scale up its production capacity and expand its market reach. On a similar track, Chicoa Fish Farm, the largest commercial provider of fish in Mozambique closed its Series A equity funding round totalling US$1.5 million from Goodwell Investments to DAIRY FARMERS OF SOUTH AFRICA MERGED ITS OPERATIONS WITH COEGA DAIRY, CREATING A BEHEMOTH IS SOUTH AFRICA'S DAIRY INDUSTRY, SIGNALING CONSOLIDATION IN THE SECTOR enable it transition to the next stage of growth: processing and distribution of frozen tilapia products. In North Africa, Holmarcom Group, a leading diversified industrial group in Morocco offloaded 49% of its stake in its grain terminal operator Mass Céréales al Maghreb (MCM) to Danish company A.P. Moller Capital (APMC), as part of its ambitions plan of pursuing new investments that will enable more reliable and efficient supply chains, support food security, and create sustainable jobs in African markets. The month came to a close with East Africa’s leading supplier of

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food grade liquefied carbon dioxide, Carbacid Investments Limited (CIL) in collaboration with Aksaya Investments LLP placed a KSH.1.2 billion (US$10.9 million) takeover bid for 100% shares of BOC Kenya, manufacturer of industrial, medical and special gases, to give Carbacid a competitive edge as it expands its portfolio. The deal is yet to close. DECEMBER Yummy! That’s what this deal makes you think of, as December got into a high gear. Glacier Products Ltd, one of Eastern Africa’s leading ice cream and chocolate confectionery manufacturers headquartered in Kenya received an undisclosed amount of investment from EXEO Capital. The financial and management backing is aimed to steer the producers of renowned Dairyland ice creams and chocolates towards continued sustainable growth. Still in Kenya, ZEP-RE, the leading African reinsurer created under the auspices of Common Market for Eastern and Southern Africa (COMESA) entered into an agreement to acquire a controlling 56% stake in ACRE Africa, an insurance intermediary in a bid to deepen covers for smallholder farmers in the region. Having an eye on future growth, Agri Commodities and Finance (ACF), the main trading company of ETG Group clinched a US$70 million working capital loan from Dutch development financier FMO. Meanwhile, Tanzanian glass container manufacturer Kioo Limited acquired US$10 million working capital loan from IFC to help mitigate the impact of the Covid pandemic on the business. In West Africa, USAID through its West Africa Trade & Investment Hub partnered with two private sector players to boost production, partnering with WACOT Rice Limited, the Nigerian subsidiary of Tropical General Investments Group, to invest US$1.48m and US$8.6m respectively in the country’s rice value chain to

expand the miller’s rice out grower scheme and to on-board additional farmers. In addition to that, the trade hub granted Koster Keunen, one of the world’s leading processors, refiners and marketers of natural waxes, US$2 million to organize and improve West Africa’s beekeeping supply chain to meet international standards for honey and beeswax in Benin, Burkina Faso, Côte d’Ivoire, Ghana, Mali, Nigeria, and Togo. Further North of the region,

KEY NUMBERS

US$9.6M VALUE OF BLUE INVESTMENT HOLDING FUNDING IN A 35% STAKE IN MOROCCO'S BIM

Tunisian caps and closure manufacturer Somipem closed its second round of private equity financing from investment firm Ekuity Capital and asset manager United Gulf Financial Services-North Africa (UGFS North-Africa), to finance its expansion within Tunisia and across the region. Closing the deals chapter was Blue Investment Holding, owned by Helios Investment Partners, a private equity fund manager focused on the Africa region, acquiring 35% stake of BIM’s subsidiary in Morocco for about US$9.6 million. Traversing through the region in 2020 has clearly shown that Africa’s food and beverage market worth US$ 313 billion is poised for exponential growth to reach US$ 1 trillion by 2030 as players did not stop at nothing despite the COVID-19 pandemic. FBA

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YEAR IN REVIEW: 2020

Investments in new plants continue in Africa but Covid-19 impacts pace

A

By Catherine Wanjiku

frica’s food and beverage market is worth more than US$313 billion and is projected to reach US$1 trillion by 2030. To spearhead growth, players in the industry have been raking in huge amounts of investments channelled towards upgrading facilities and systems, product innovations, expansions, technological advancements, among many others, with the anticipation of more efficient and costeffective operations, which ensure higher returns and leadership in the market place. With an eye on Africa’s food industry, here are some of the investments that hit the desk of the Food Business Africa team in 2020.

NIGERIA In Nigeria both local companies and multinationals with subsidiaries in the country invested in their organizations and the economy at large. Spanish culinary products manufacturer GBfoods inaugurated a N20 billion (US$51.9m) tomato-processing factory in Kebbi state, aimed to help the country achieve self-sufficiency in production of tomatoes and its related products. In addition, the food manor also opened a N5.5 billion (US$14.3m) state of the art production factory for its leading mayonnaise brand, Bama Mayonnaise in Ogun State. Still in the quest of promoting tomato farming in the country, Dangote Tomatoes Processing Limited, commissioned a N2.8 billion greenhouse nursery in Kano IN SOUTH AFRICA, THE ANIMAL FEED MANUFACTURERS ASSOCIATION LAUNCHED AFRICA'S FIRST RESEARCH AND TRAINING FEED MILL IN COLLABORATION WITH THE UNIVERSITY OF PRETORIA to supply tomato seedlings to Nigerian farmers. The country also witnessed an investment by Nigerian Bottling Company (NBC), franchise bottler of Coca-Cola, with the installation of a new high-speed canning line at its Ikeja plant. Another beverage maker, Nigerian Breweries Plc opened its newly built N5.1 billion (US$13.3m) ultramodern automated PET line at the Ijebu Ode brewery, Ogun State. The facility is fully automated to meet worldclass safety and quality requirements and has the capacity to produce 24,000 bottles of drinks per hour, especially the

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JAN/FEB 2021 | FOOD BUSINESS AFRICA

SPAIN-BASED FOOD CONGLOMERATE GBFOODS OPENS A US$51.9 MILLION TOMATO PROCESSING PLANT IN NIGERIA

malt beverage Maltina brand. In the grain and milling sector, BUA Food, one of the leading agribusiness and food processing companies headquartered in Lagos, Nigeria penned an agreement with Milleral, a Turkish manufacturer and installer of milling equipment, to build the company’s new flour milling plants with a total milling capacity of 2,400 tonnes per day. The plants, expected to be complete in 2021 will bring BUA’s total installed flour milling capacity to 4,000 tonnes per day. In the same vein, the food manufacturing conglomerate inked another agreement with Italian maker of pasta production equipment, FAVA spa, to install a new pasta processing plant with a processing capacity of 720 tonnes per day of pasta across 5 lines. It is scheduled to be completed in 2021 and will bring the company’s total installed pasta processing capacity to 1,440 tonnes per day across 10 lines. The grains sector also welcomed a partnership between WACOT Rice Limited, the subsidiary of Tropical General Investments Group, and USAID through its West Africa Trade & Investment Hub, to support the company’s

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Rensource Energy to install a solar photovoltaic system at its facility. The 700 KWp solar photo-voltaic plant will generate 1 gigawatt hour of clean energy annually, saving up to 25,000 tonnes of CO2 in its lifetime, expected to operate for at least 25 years, thus contribute to Nigeria’s fight against air pollution. In the dairy sector, consumer goods manufacturer Promasidor Nigeria invested US$5m (N2bn) in Ekiti State to reactivate the Moribund Ikun Dairy Farm in partnership with the Central Bank of Nigeria, to ensure a daily production of about 10, 000 litres of milk. Other companies that undertook developmental projects in the sector in partnership with the government include FrieslandCampina WAMCO, CHI Limited and Fan Milk to discourage over reliance on imported dairy products. During the year under review, FrieslandCampina WAMCO commissioned a state-of-the-art plant for local production of Peak Yoghurt drink.

rice out grower scheme in Kebbi State. Under the partnership, the rice miller is investing US$8.6 million and the Trade Hub is issuing a grant of US$1.48 million aimed at enabling WACOT to on-board an additional 5,143 rice farmers into its program over the next 2 years. The poultry sector, despite it being one of the hardest hit industries in the country in 2020 due to shortage of animal feed caused by scarcity of maize, saw the ground breaking of N4.2 billion (US$10.8m) egg processing factory at Ondo State. The facility will produce egg powders, pasteurised liquid eggs and the shells that will be utilized for manufacturing of poultry feeds. Meanwhile, Premium Poultry Farms, Nigeria’s largest egg producer entered into an agreement with renewable energy supplier,

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SOUTH AFRICA The South African economy is one of the hardest hit by the COVID-19 pandemic due to the skyrocketing rate of infections. Its food and beverage sector has received blows following restrictions of operations imposed by the government, including the ban on alcohol sales. Such impairments forced food industry players to shy away from making any investments or shelf the plans to a later time when the dust settles. However, the likes of Tomra, a Norwegian multinational corporation and provider of reverse vending machine and sensor-based sorting solutions, defied the odds and opened a new regional headquarters in Johannesburg. The move strengthens its commitment to its customers in South Africa, Kenya and Tanzania. Coca-Cola Beverages South Africa (CCBSA) ramped up its solar power generation capacity with the beverage giant rolling out solar photovoltaic panels at its Premier

KEY NUMBERS

US$81M SINGAPORE-BASED COOKING OIL MAJOR WILMAR'S INVESTMENT IN A NEW REFINERY IN SOUTH AFRICA

plant in KwaZulu-Natal as well the Bloemfontein Tannery plant and Bloemfontein Gutsche plant in 2020. The packaging sector witnessed the breaking ground of Alpla’s new production site in the province of Gauteng, Lanseria near Johannesburg. Alpla is an international manufacturer of plastic packaging based in Austria. By the same token, Wilmar Processing South Africa kick started construction of the R1.3 billion (US$81m) crude vegetable oil refining facility in the country. The Coega Development Corporation (CDC), a public entity wholly owned by the Eastern Cape Provincial Government of South Africa also followed suit commencing construction of the R206 million (US$12.6m) Coega Aquaculture Development Zone (ADZ). In the animal feed sector, the Animal Feed Manufacturers’ Association (AFMA) of South Africa launched the continent’s first research and training feed mill to be located at the University of Pretoria’s (UP) Miertjie le Roux Experimental Farm near Bronkhorstspruit. Furthering technological advancements, German flavour and fragrance manufacturer Symrise entered into a special partnership with South African white grapefruit supplier Klaus Böcker to modernize the production line of white grapefruit of the Nkwaleni Processors factory in the KwaZulu-Natal province. The upgrade included its patented SymTrap technology, to enable the JAN/FEB 2021 | FOOD BUSINESS AFRICA

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YEAR IN REVIEW: 2020

Africa (CCBA) secured a US$50 million financing facility from Standard Bank to support its expansion strategy in the country over the next five years. The soft beverage sector also saw the burgeoning of the bottled water sub-sector with Risiq Group setting up a mango juice processing and water bottling business with an investment of Br 150 million (US$3.8m). Adad Trading Plc, a local livestock export company joined the competitive industry with an investment of Br 60 million (US$1.75m) and Kefeta Spring Water, a new water bottling company was launched following the construction of a 62 million Br (US$1.9m) processing plant. Shifting eyes to the grain and milling sector, Kiya, a local food processing company, operating as Soror General Trading invested 350 million Br (USS$10.3m) to expand it flour processing, pasta and biscuit manufacturing plant in Adama, Oromia regional state. Vita Hydro AgroProcessing Plc, sister company of Belayab Food Production Plc, franchise owner of Pizza Hut and Cold Stone Creamery brands in Ethiopia also constructed a flour and biscuit processing plant worth 210 million Br (US$6.3m). Last but not least, the sector saw the input of Horizon Plantations Plc, an agro-processing venture company set up a 900 million Br (US$26m) state of the art Sheger Bread & Flour factory. In the packaging sector, new investments were noted with agro-allied company Yhaenu Plc further diversifying its operations by venturing into production of packaging

upcycling of side streams that would otherwise go to waste, turning these aroma materials into signature taste solutions. Closing the year was GES Labs, a world-class active ingredient extraction company completing the establishment of a state-of-the-art pharmaceutical laboratory in Cape Town. The new facility is targeting to IN ETHIOPIA, SOROR GENERAL TRADING INVESTED US$10.3 MILLION TO EXPAND ITS FLOUR PROCESSING, PASTA AND BISCUIT PROCESSING PLANT IN ADAMA, OROMIA REGION serve domestic and international markets with plant extracts including cannabinoids for use in food, beverages and pharmaceuticals. ETHIOPIA Ethiopia’s beverage sector is rapidly growing, characterized with stiff competition as rising demand pulls more players to grab the rising opportunities. Meta Abo Brewery, subsidiary of Diageo, completed the expansion of its US$14m non-alcoholic beverage factory, which commenced production of its first Malta Guinness packed in plastic bottles to increase their reach and foster convenience. In addition to that, Coca-Cola Beverages

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materials. The company invested close to Br 121 million (US$3.15m) in the establishment of a packaging making plant. Meanwhile, coffee processing and brewing company, Haro Coffee expanded its offering with the addition of disposable food and beverage packaging after investing Birr 20 million (US$ 500,000) in development of a packaging plant. GHANA In Ghana, the government was in the front-line championing the food industry investment agenda. Under the state’s flagship project dubbed One-District-One-Factory (IDIF), both greenfield and brownfield projects were launched to include maize, rice, cashewnut, beverages and cassava processing plants, among many others. The notable investment was the commissioning of Kasapreko water, juice and soft drinks factory worth US$25m, with a production capacity of 35,000 bottles per hour of juices and non-alcoholic soft drinks, and 15,000 bottles per hour of water. This is in addition to the US$15m Ekumfi fruits and juices factory, with a processing capacity of 10 tonnes of juice per hour. One of the biggest investments in Ghana’s food sector in 2020 was when global agribusiness company, Bunge Limited through its specialty oils and fats business, Bunge Loders Croklaan (BLC) inaugurated a stateof-the-art shea butter processing facility in Tema.

tailor-made solutions. A noteworthy investment in the country was made by Bidco Africa Group, one of the leading consumer good company in East Africa in collaboration with Danish firm partner, Co-Ro foods with the inauguration of US$2.5 million (KSH.267 million) juice production line in Ruiru town, near Nairobi. The beverage sector also saw the contribution of Makueni County government in Eastern Kenya, which set-up a second fruit juice processing line at the Makueni Fruit Processing factory in Kalamba town with a production capacity of 8,000 litres per hour of ready to drink juice. Leveraging on technology to modernize and digitize operations, leading Kenyan meat processor Farmer’s Choice Ltd adopted cloud solutions offered by the giant tech company Microsoft, to give it unmatched visibility over its entire life cycle of meat production, allowing it to respond to supply and demand changes proactively. In the grain sector, Geothermal Development Company (GDC) installed a semi-commercial cereals dryer with reduced emissions at the Menengai Geothermal project funded by the Icelandic International Development Agency, with a capacity

KEY NUMBERS

US$40M

TOTAL INVESTMENTS BY KASAPREKO IN TWO PLANTS IN GHANA TO BOOST CAPACITY - ONE A NEW PLANT TO PROCESS FRUITS

to dry 20 tonnes of cereals per day. Meanwhile, at the industrial town of Thika, Mjengo Limited commissioned two state of the art wafers and sponge cake snacks plants to add to its grains and biscuits business lines. In Nairobi, the region’s leading confectionery manufacturer Kenafric Manufacturing entered the soft beverages and water business lines after opening their new plant. UGANDA Uganda, the only country in East Africa that has attained self-sufficiency in sugar production, inaugurated the multi-billion Atiak Sugar Factory in Northern Uganda aimed to boost production, stabilise prices of the commodity and create enough stocks for export.

KENYA In East Africa’s largest and most vibrant economy Kenya, German human nutrition company and food ingredients supplier, BASF opened a Customer Experience Centre in the country’s capital, Nairobi to provide tailor-made support for formulation and application of food solutions. The center offers an open space architectural design that fosters closer collaboration and nurtures cross industry pollination, allowing BASF and its customers to develop

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YEAR IN REVIEW: 2020

The country’s largest dairy processor Pearl Dairy Farms diversified into commercial honey production, investing more than USH.10 bn (US$2.7m) into the venture. The company also expanded its yoghurt range by launching five new flavours: apricot, peach, butterscotch, coconut and plain, an addition to its pioneer flavours vanilla and strawberry, giving consumers a variety to choose from. Meanwhile in the meat sector, Uganda completed the construction of a new abattoir with a capacity to handle 400 cattle per day, targeting the export market including regional and global destinations. ZIMBABWE The world’s largest food and beverage company Nestle inaugurated US$2.5m cereals manufacturing line in Zimbabwe, which will result in over 30% incremental volume through put as the company expands capacity, targeting to triple its US$400,000 monthly exports in the medium term. The country’s largest grower and producer of tea and coffee, Tanganda Tea Company Limited completed the construction of US$15m solar plant to power its production facilities as a backup from the many power shortages the country is battling with. In the land of a thousand hills Rwanda, the government partnered with Unilever Tea and The Wood Foundation Africa (TWFA) to commence the second phase of the Nyaruguru tea project in the Southern province of the country, injecting US$20 million in the developmental initiative. The aim of the project is to enable farmers to effectively plant to scale and produce quality tea for both domestic and export market boosting their earnings. Meanwhile in the same year 2020, beer manufacturer SKOL Brewery inaugurated its state-of-the-art water production line with a processing capacity of 40,000 bottles of water per hour. The launch of the production line coincided with the introduction of its new water brand dubbed Virunga Water, bottled in eco-friendly returnable glass bottle in line with the country’s law relating to the prohibition of single-use plastic items. In Mozambique, the Mozambican subsidiary of AB InBev completed the construction of its factory worth over US$100m, with a production capacity of 2-million hectolitres of beer a year. Its rival, Heineken, inaugurated a new production line worth US$20 million at its Mozambique plant to produce Heineken beer in the country for the first time. The new production line has a production capacity of 350,000 hectolitres per year (35 million litres) and can fill 16,000 bottles in an hour. NORTH AFRICA Some of the notable investment by food industry players in the North Africa region include, Flour Mills company in Morocco installed a new mill with the processing capacity of 300 tonnes per day of local semi-hard wheat and three

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JAN/FEB 2021 | FOOD BUSINESS AFRICA

different variants of bakery flour mainly for domestic consumption. In Egypt, LuLu International Holdings (LIHL), one of the leading hypermarkets and supermarket chains in the Middle East entered into a non-binding agreement with Abu Dhabi headquartered investment firm, ADQ to acquire US$1 billion for expansion. Under the terms of the agreement, ADQ and LIHL will work to collectively develop up to 30 hypermarkets and 100 express minimarket stores in the North African country. Tunisia welcomed a new production center established by Spanish flavour and fragrance company, Iberchem Group, which opened under its flavour division, Scentium. The site features a production plant, two warehouses, application labs, testing rooms, administration offices and extra room to accommodate future growth. In the rest of Africa, Puratos, a global provider of solutions for bakery, patisserie and chocolate opened four new subsidiaries in Kenya, Ivory Coast, Ethiopia and Nigeria through a joint venture initiative with local partners in the respective countries. The move is aimed to further establish its local presence in the key countries, strengthen customer relationships, localise production as well as develop new products and concepts using local raw materials. In East Africa, Tanchoice, Tanzania’s largest and most modern slaughter house and meat processing plant commenced operation of its new US$10m meat processing facility with a capacity to handle 1,000 herds of cattle and 4,500 goats and sheep per day. Taking a few steps to the North, National Flour Mill Company in Somaliland inaugurated the country’s first flour mill with a processing capacity of 110,000 MT wheat annually. Cruising to West of Africa, Lesaffre, the French yeast and bread improvement manufacturer inaugurated a baking center at its subsidiary, Lesaffre Ivoire in Abidjan, Ivory Coast. The first of its kind in the region, the center aims to support customers in the development of their expertise and new innovative bread-making solutions. Shifting gears to Southern Africa region, Namib Mills Ltd, the largest grain processing company in Namibia, opened a new state-of-the-art bakery plant, situated North Windhoek. The plant worth N$134.6m (US$9.2m) has enabled the company to expand its processing capacity with the launch of a new bread brand, Bakpro Superior Loaves, as it seeks to cement its market share in the country’s bakery sector. In neighbouring Zambia, Trade Kings Group, leading manufacturer of Fast-Moving Consumer Goods (FMCG) in the country, commissioned a new milk processing plant at its subsidiary, Dairy Gold Limited to produce full cream fresh milk products. FBA

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The executive corner in Africa's food industry gains new talent in 2020

A

By Catherine Wanjiku

s the saying goes, “To win in the marketplace you must first win in the workplace.” The food industry in Africa understands this too well as companies recruited the crème de la crème to join their organizations in 2020, especially at the senior most levels to exude their leadership prowess during these uncertain times characterized by multiple disruptions caused by the COVID-19 pandemic. Some of the notable appointments that made headlines in 2020 include: South African food manufacturing giant Tiger Brands, announced the stepping down of Khotso Mokhele as Chairman of the board as of December 31 and appointed Geraldine Fraser-Moleketi, a lead independent director at mining firm Exxaro, to take over the position. FraserMoleketi has served in various cabinet roles from 1996 to 2008, including as Minister of Public Service and Administration and Minister for Welfare and Population Development. Further, the packaged food processor appointed its then Chief Financial Officer, Noel Doyle to be company CEO with effect from February 1, 2020. Doyle took over from Lawrence MacDougall, who retired after having reached the company’s mandatory retirement age of 63. Unilever, the multinational consumer goods company

GERALDINE FRASE- MOLEKETI - CHAIRMAN DESIGNATE OF TIGER BRANDS

named Carl Cruz as its new Managing Director for its West Africa operations to oversee business at Unilever Nigeria and Unilever Ghana. Cruz took over the helm on

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1st February 2020 from Adesola Sobande-Peters who was appointed interim director following the resignation of Yaw Nsarkoh in November 2019. Prior to his appointment, Cruz was the Chairman and Managing Director of Unilever Sri Lanka. Paper and Packaging product manufacturer Nampak,

ERIK SMUTS - CEO OF NAMPAK

appointed Erik Smuts as the new group CEO following the resignation of Andre de Ruyter who took over the position of Chief Executive Officer of embattled power utility Eskom. Smuts has worked at Nampak for over a decade and was Group Executive of the company’s beverage canning biz prior to his appointment. Champion Breweries Plc, the producer and marketer of alcoholic and non-alcoholic beverages in Nigeria appointed Mr Georgios I. Polymenakos as its new Managing Director effective January 6, 2020. The appointment followed the resignation of Mr Patrick Ejidoh who had reached retirement age. Mr Polymenakos was until October 2019 the Managing Director of the Nigerian Bottling Company Limited (NBC), bottlers of Coca-Cola products in the country and a subsidiary of the Coca-Cola Hellenic Bottling Company (CCHBC). Eddy Njoroge, former KenGen Managing Director started his tenure as the President of the Geneva-based global standard’s body, International Organization for Standardisation (ISO), becoming the first African to hold the position. Njoroge took over the leadership of the 73-year-old agency from Canadian John Walker to serve for two years between January 2020 and December 2022. The New York headquartered food and beverage giant PepsiCo strengthened its operational effectiveness with

JAN/FEB 2021 | FOOD BUSINESS AFRICA

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YEAR IN REVIEW: 2020

the appointment of its newly acquired Pioneer Foods’ CEO Tertius Carstens as its sub-Saharan Africa Chief Executive. The company’s sub-Saharan Africa headquarters are based in South Africa, from where it plans to leverage to expand and drive profitable growth across the region, an integral part of fulfilling PepsiCo’s ambition to become Africa’s leading food and beverage company. The multinational confectionery firm Mondelez International appointed Nigel Parsons as the president of sub-Saharan Africa (SSA) operations, a newly created leadership aimed at strengthening its focus in the region. Parsons is directly supported by Alisdair Sinclair as Managing Director South Africa, who prior to the

LEONIE PRINSLOO - MANAGING DIRECTOR OF NAMIBIA DAIRIES

NIGEL PARSONS - PRESIDENT OF MONDELEZ INTERNATIONAL SUB-SAHARAN AFRICA

appointment was the CEO of Vamara Group, a Fast-Moving Consumer Goods (“FMCG”) company in Africa. Parsons is a long-term employee of Mondelez who was serving as country director of Mondelez Australia before the appointment. West Africa’s snack manufacturing giant, Cadbury Nigeria Plc appointed Mr. Adedotun Sulaiman, as the new Chairman of its Board of Directors, to replace Mr Atedo Peterside who stepped down as Board Chairman on June 2020. The renowned management and strategy consultant was first appointed into the Board of Cadbury Nigeria as a Non-Executive Director in August 2009. The Coca-Cola Export Corporation reflected the company’s desire to promote Moroccan talent in order to support the development of its activities in the kingdom with the appointment of Mehdi Alami as the new Managing Director of Coca-Cola Morocco franchise in March 2020. Namibia Dairies, a subsidiary of the Ohlthaver & List (O&L) Group, promoted its Head of Marketing, Leonie Prinsloo to the position of Managing Director (MD) as of 1 July 2020. She replaced Gunther Ling who took the helm at

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Hartlief, a supplier of meat products and sister company of Namibia Dairies. Global food and beverage company Nestlé shifted Mauricio Alarcon from leading Nestle Nigeria to become Chief Executive Officer of Nestlé Central and West Africa Ltd, effective September 1, 2020. Wassim Elhussein replaced Mauricio in his previous post. Prior to his appointment, Wassim was the country manager and sales director of Nestle Middle East and North Africa. Seed Co Zimbabwe, a leading producer and marketer of certified seeds in the region promoted its Deputy MD to

MAURICIO ALARCON - CEO OF NESTLE CENTRAL AND WEST AFRICA

the position of Managing Director with effect from October 1, 2020. He took over from Denias Zaranyika who retired from the company. Africa’s leading retailer Shoprite named Wendy

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Elizabeth Lucas-Bull as the first female Chair; ending Christo Wiese’s four decades reign at the helm. Wiese, had been Shoprite’s chairperson since 1979 and retired from his position in November 2020. Lucas-Bull is also the chairperson of leading financial services company Absa Group. South Africa based fast–food chains operator, Spur Corporation named Val Nichas as the new executive

Kenyan fresh food producer and exporter Kakuzi Plc named Nicholas Ng’ang’a as Chairman of the Board replacing Graham Mclean, Managing Director for Agriculture at Camellia Plc. Ng’ang’a served as Chairman of giant telecommunication company Safaricom’s board from 2007 until his retirement in July 2020. East Africa’s leading alcoholic drinks company East African Breweries Limited passed the baton of Managing Director of the group to Jane Karuku, who was serving as CEO of its subsidiary Kenya Breweries Limited. With the appointment Jane becomes the first female to hold the position in the group replacing Andrew Cowan, who was appointed Managing Director of Diageo’s Africa regional markets, which comprise of Diageo’s operations in Ghana, Cameroon, Ethiopia, the Indian Ocean islands and Angola. Jane will be replaced by John Musunga, who will join EABL from GlaxoSmithKline (GSK). Flour Mills of Nigeria (FMN) Plc, Nigeria’s leading integrated food and agro-allied group appointed

WENDY ELIZABETH LUCAS-BULL - CHAIRPERSON OF SHOPRITE

director and group Chief Executive Officer, taking over from the company’s long-serving CEO, Pierre van Tonder, who retired from the group on 31 December 2020 after 38 years of service. Nestle Ghana appointed Georgios Badaro as its new Managing Director in October 2020, to be in charge of businesses in Ghana, Liberia and Sierra Leone under the Central and West Africa Region of the company. He took the helm of the company after completing his stint as Business Executive Officer – Dairy, Health & Nutrition Solutions, Nestlé Philippines. Guinness Ghana Breweries Limited, the subsidiary of Diageo Plc announced the appointment of Ms. Hélène Elizabeth Antoinette Weesie as an Executive Director on the Board and Managing Director of the company effective 7th of September 2020. Prior to her appointment she was the Managing Director of Diageo’s Central Europe Cluster of countries. She replaced Gavin Pike who was appointed as Managing Director of Diageo South Africa. Africa Improved Foods, the Rwanda based local manufacturer of fortified foods named Edouard Spicher as the company’s new CEO taking over from Amar Ali, who had been at the helm since 2016. Spicher has worked with organizations such as Fan Milk International as CEO and Nestle in different capacities, across different markets. Dangote Sugar Refinery (DSR) Plc elevated its acting Managing Director Mr. Ravindra Singhvi to substantive Group Managing Director/Chief Executive Officer. He was appointed acting MD of the refinery in 2019, after serving the company as Chief Operating Officer.

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JANE KARUKU - MANAGING DIRECTOR OF EAST AFRICAN BREWERIES LIMITED

Omoboyede Oyebolanle Olusanya as the company’s new Group Managing Director/Chief Executive Officer taking over from Paul Gbededo who retired from the helm of the company end of December, but will remain on the Board serving as the company’s new Vice Chairman. Prior to his appointment Omoboyede was the group’s Chief Operating Officer. The Coca-Cola Company appointed Alfred Olajide as the new Vice President and Managing Director for its Nigeria operations following the global reorganization of the company’s leadership structure. Prior to his appointment, he was Franchise Director, South Region (Botswana, Zambia, Namibia, Mozambique, and Zimbabwe) of CocaCola Africa. He replaced Yebeltal Getachew whose tenure ended December 31st, 2020 after being at the helm barely two years. FBA

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MY COMPANY PROFILE: AFEX

AFEX Nigeria: Transforming Grains Commodity Markets with Technology Developing viable commodity markets in Africa is fraught with failures and disappointments. AFEX, a private commodity trading enterprise based in Nigeria has shown that there are many opportunities in the sector. Food Business Africa had a conversation with the firm's CEO, Ayodeji Balogun on his company and the opportunities in the sector. By Francis Juma

A

uthorities across Africa have failed at attempts to establish and streamline the warehousing receipt systems that would lead to organized, working and transparent commodity exchange systems that eventually lead to food security and improved trade in the Continent. Despite several attempts and vast sums of money, not many have succeeded or made significant impact. Established in 2014, AFEX was the first private sector commodities exchange to be licensed by the Securities and Exchange Commission (SEC) of Nigeria. With a bold mission of supporting Nigeria’s food security while promoting a fair exchange of value among players in agricultural value chains, AFEX has developed and introduced an array of securitized financial instruments backed by commodities that can serve as alternative investment products for investors in the agricultural value chain in Nigeria. “There has been an indication that income growth generated by agriculture is up to four 50

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times more effective in reducing poverty than growth in other sectors. Although earlier analyses viewed agriculture as a traditional low productivity sector that had to provide labour and other resources to fast-growing modern sectors, no country has been able to achieve a transition out of poverty without a dynamic agricultural and food sector,” Ayodeji Balogun, the Chief Executive Officer at the Lagos, Nigeria-based company informs Food Business Africa. “If the proper investments are made in the agricultural sector, the current contributions being made to the economy by this sector can be doubled or even tripled because Nigeria and indeed Africa, has both human and natural resources to achieve this potential,” he counsels, adding that the commodity trading sector has immense potential to contribute to the growth of African economies, if well structured. “Smallholder farmers often have limited access to markets and fair prices for their produce. A commodity market provides smallholder farmers with much-needed

AYODEJI BELIEVES THAT COMMODITIES EXCHANGES LIKE AFEX UNLOCK FINANCING FOR AGRICULTURE, WHICH IS PERCEIVED AS HIGH RISK

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It is this dream that led the Ayodeji to transition from studying engineering to trading consumer goods, from an analyst role with an impact investing team to building supply chains in agriculture, and now building tech-enabled agricultural assetbacked financial instruments for trade on a commodities exchange. Leading a team of experts with an overaching ambition to grow AFEX across West Africa, the team is looking to provide unique solutions to over 1 million under-served farmers, while growing the business by a multiple of ten over five years – hence proving that the future of the commodities exchange in Africa lies squarely with the private sector.

When the deal was made, I felt this is what I want to be involved with. It brought in both my interest in technology, my capacity in finance and also, the commodities trader in me. It brought all of them together.

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access to useful, timely, and transparent market and price information that allows them to efficiently sell more products and be adequately remunerated for their work and investments. Without a commodity market, the ability of the smallholder farmers to earn decent incomes from their produce is limited, and this will impact their level of productivity in subsequent seasons.” Ayodeji believes that one key advantage of commodities exchanges such as AFEX is to unlock financing for agriculture, since agriculture is perceived as a high-risk endeavour; a view that dissuades the flow of capital into the sector. “To unlock finance, the first fundamental is to ensure that the risk profile is low and manageable. With systems for price discovery and transparency that is provided by a commodities exchange, it becomes easier to monitor the flow of money in and out of the sector, and by extension measure and manage risk, increasing the amount of finance that is made available to value chain efforts over time,” the CEO articulates.

GROWING THE IDEA FROM SCRATCH Starting off with the goal of making the commodity sector to be more accessible to the average person and to redirect the sector to focus on smaller players and local markets in Nigeria and the region - having seen a surge of interest in commodities and commodity trading - AFEX was established from an earlier project where Ayodeji was part of the impact investment team at Heirs Holdings that was evaluating what turned out later to be AFEX. “When the deal was made, I felt this is what I want to be involved with. It brought in both my interest in technology, my capacity in finance and also, the commodities trader in me. It brought all of them together. I am lucky to have been part of the ground zero team – investment phase, investment appraisal, deal structuring, deal close, pre-business plan, business plan 1, business plan 2, business plan 3,” he mentions, with excitement all over his face. “For me, commodity trading is something of a self-identity. It is that thing that I don’t need to think about or prepare for. I go into a deal and negotiate, trade, and make calls. When you add that with the incredible impact that we make while running the business, my inspiration to continue with the journey is just endless.” AFEX executes on its vision to be the reference point for commodities in Africa through three main business units that spearhead activities and programs in each focus area. AFEX Commodities Exchange is a capital market operator that enables effective trade and settlement on commodity transactions by supporting securitization and

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MY COMPANY PROFILE: AFEX

structured trade finance for commodities, which allows investors to diversify their portfolios with innovative commodity-backed products. Its sister company AFEX Fair Trade Limited works for better food systems in Africa by offering solutions that enhance smallholder productivity, enable storage as a service and power trade within Africa and with the rest of the World. The third business unit, AFEX Investment Limited, unlocks funds from capital market players for commodity value chains in Africa, with its activities enabling the flow of funds to solve big problems with effects that reach the bottom of the pyramid. One of the core mandates that made Ayodeji and his team to set up AFEX was to provide scalable solutions that can unlock capital at the right cost and structure for smallholder farmers, and support their livelihoods and income-generating capacity. He explains that this was important to the team because smallholder farmers in Africa and Nigeria specifically were severely underserved, straggling the poverty line and unable to make significant investments into their operations. This has meant that the agricultural sector in

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Nigeria has historically been fragmented and very near subsistence levels. “The challenge for us when we set up the Exchange in Nigeria was therefore to improve farmer productivity, unlock credit or finance for them and also give them access to markets.” In addition to developing commodity-backed instruments, AFEX is also strongly engaged with capital market operators and other financial institutions to offer commodity trading as an alternative asset class to investors. AFEX operates over 60 warehouses in Nigeria’s key grain-producing areas and accounts for more than 100,000 metric tonnes of total Nigerian storage capacity. The exchange has reached over 160,000 farmers and traded 200,000 metric tonnes of commodities with a total turnover of USD47.6 million (NGN17.1 billion) since 2014. According to Ayodeji, during these formative 5 years, the company has been focusing on building the ancillary infrastructure necessary to support trade and manage risk in the sector, and is at this time focused on offering up its infrastructure as a service to various players to enable the

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larger capital market to tap into the activities in the African commodities market with ease. “Essentially we are building a technologydriven capital market infrastructure, which will unlock alternative investment capital to finance tradable low-risk agriculture and other commodity types.” The company currently operates in Nigeria but Ghana and Cote D'ivoire are of interest in the near future, reveals the CEO. The main commodities at the Exchange include maize, paddy rice and soya beans, while members

KEY NUMBERS

350,000 VALUE IN POUNDS OF THE COMPANY'S FIRST REPO BOND THAT WAS FULLY SUBSCRIBED BY DFID IN 2016

are from diverse organisations and interest groups, including farmers, dealers, market regulators, market makers, investors, brokers and other interested participants. He adds that members of AFEX gain access to one of Africa’s leading and largest commodities exchanges by receiving data and intelligence, including access to data on past finance transactions, trend reports, region and sector briefs and they also access an online deal and matchmaking platform for investors and those seeking capital to connect on finance deals. To reach its ambitious targets, AFEX has deployed its technology stack – WorkBench and ComX - as a service to its participants and the broader agriculture value chain service providers in Nigeria. ComX, the award winning trading and investment platform, unlocks needed financing for commodity value chains, while WorkBench software helps build a reliable databank for agriculture, and also helps with timely assessment and management of operational risk. “Our commodity trading platform ComX

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was awarded the AppsAfrica Award in the Agritech & FoodTech category. The award celebrates the innovation and technological prowess shaping our ecosystems and was a nod to the potential of ComX to orchestrate a massive step forward in the commodities market in Nigeria, by attracting significant investments to the sector and introducing innovations that will create a new world of financial products, market education, operational risks, and wealth opportunities for everyone.” He discloses that ComX is a simple yet innovative platform designed specifically for trading in assets backed by commodities. It allows investors to gain exposure to commodities as an alternative investment class by providing features that help in buying and selling commodity-backed instruments while analyzing and managing their portfolios. The platform also helps lower some of the barriers that prevented investors from investing in commodities, including market education, transaction costs, operational risks, and product availability. He adds that all products traded on ComX - including spots, ETCs, forwards, and asset-backed commercial paper (ABCP) - are physically backed, thereby reducing the risk exposure of the investors. INDUSTRY-LEADING MILESTONES Ayodeji is proud that AFEX was the firstever listed commodities index in Nigeria and the impact that the company has created as it partnered with capital market players to structure debt securities to finance over 200,000 smallholder farmers in Nigeria. The company is proud of its many firsts. In 2016, they launched the Grain Bank and Commodity Exchange project with the West Africa Food Market, targeting 100,000 farmers in Nigeria. It also debuted the first structured grain-for-fertilizer program in the country and issued a £350,000 repo bond that was fully subscribed by the DFID. In 2017, the company commenced its trading platform, which is powered by NASDAQ, and at the same time launched its agribooster product in partnership with the fertilizer major, OCP Africa, targeting 5,000 farmers. The company also took part for the first time in the Central Bank of Nigeria’s Anchor Borrowers Program as an aggregator of commodities. To continue with its innovations journey, in

COMPANY PROFILE

Sector: Grain trading Country: Nigeria Main Contact: Ayodeji Balogun, CEO Website: www. afexnigeria.com Email Address: contactus@ afexnigeria.com Telephone: +234 903 000 1333 Address: 3rd Floor, Yobe Investment House, Plot 1332, Ralph Shodeinde Street, Beside Federal Ministry of Finance, Central Business District, Abuja, Nigeria

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MY COMPANY PROFILE: AFEX

THE COMPANY IS PROUD OF ITS HUGE IMPACT ON SMALL SCALE FARMERS IN THE COUNTRY

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2018, the firm began on-boarding non-bank financial institutions on the Exchange for farmer financing, while in 2019, it introduced Nigeria’s first ever commodities index – the AFEX Commodities Index - that tracks price changes for three key commodities: maize, soya beans and paddy rice. It also introduced EdEx – the market education platform for commodities. He reiterates that as much as they have done ground breaking work, their work is cut out for them, as they have huge ambitions. “We have created the largest network with 60 warehouses across 15 states in Nigeria, which also serve as hubs for smallholder farmers and traders to transact and make payments with each other. We also have the largest database of credible farmer data, complete with bank verification number and land coordinates. Still on a platform level, we have introduced to the market the first-ever education platform for the commodities market as well as the first digital trading platform for commodities in Nigeria (ComX) with an increasing array of innovative commodity-backed securities.” As the organization evolves, he informs us that they are putting forward, for Africa, a market infrastructure that will promote a transparent, data-driven, tech-enabled commodities ecosystem, where risks are efficiently measured, managed, and priced.

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This we will get done through innovative finance, inclusive agriculture, and technology; thereby helping the firm unlock capital for producers and processors across the value chains across the markets where they will operate. However, along the way, the company has faced a number of setbacks on the journey to delivering on its mandate. “Perhaps the most significant setback we have faced was our initial investment in technology. We had initially invested over 70% of our initial capital raise on a world class technology, which proved to be too futuristic, considering the significant infrastructure deficit in Africa. We very quickly realized that what we had assumed would be a FinTech venture needed to be a supply chain solution working with rural smallholder farmers, and aggregating very small lots of grains and matching those to buyers,” he divulges. “The business at that time needed more investments in storage and logistics, and the team configuration needed to change. With this understanding and the adaptation of the model to fit, opportunities began to open up to build the business we now have.” INVESTING FOR THE FUTURE Over the years, AFEX has invested significantly to enable the creation of a viable commodities FOODBUSINESSAFRICA.COM


exchange in Nigeria, says the CEO. “In the past few years, our investments have been focused on infrastructure, talent and technology. We have built on existing logistics systems by revamping idle storage solutions in the largest grain producing states in Northern Nigeria and making them available for all market players – producers, merchants, and processors. Our infrastructure is then managed by a diverse pool of talent from trained collateral management professionals and field staff to tech, finance and marketing talent in our corporate office.” He adds that over the last two years, AFEX has also invested extensively in technology that supports traceability: covering activities all the way from the financial inclusion of producers, through the outreach operations, and it’s warehouse receipt system, to a trading platform that fosters shared prosperity between producers, processors and investors. He says that since inception of operations, they have seen the opportunity in having firsthand contact with farmers, while bringing technology right to their doorstep by providing services such as access to warehouse receipt systems, financial inclusion and access to credit and micro-insurance. “On top of that we have now built a platform that facilitates effective trading and settlement of commodity transactions, helping to structure and formalize the commodities markets. Now, with the largest supply chain infrastructure, a large network of farmers and proven platforms for securitization and trade, we are working to scale our business and impact by 10 times over the next five years.” He discloses that the adoption of the right technology has been important to the firm’s revolution of the commodities market, especially when you zero in on how technology can be an enabler to improving the trading processes and boosting efficiencies in the entire value chain. “Technology can enable an increased capacity to unlock capital for production, trade, and processing by making activities transparent and traceable. Technology also plays a leading role in terms of being able to converge financial capital with commodities and the transmission of both. The other part is the data: technology allows us to gather data and analyze it a lot more efficiently to create knowledge and insight.”

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BUILDING A SUSTAINABLE FUTURE The CEO enlightens us that over the next few years, AFEX will focus on three principles in its operations: establishing a viable trade infrastructure that supports both quality and quantity of commodities, ensuring an inclusive market that accommodates producers through structures that strengthen financial inclusion and livelihoods and limits post-harvest loss or waste, and innovating around market data and product development, giving rise to Nigeria’s first commodity index and laying the ground work for commodity derivatives products in Nigeria. He further notes that the company will be seeking to further grow its capacity and capability in Nigeria, and that to fund the planned growth, they are currently fundraising. The firm’s Series A raise in 2019 was fully subscribed to by Consonance Investment Managers, a Sub-Saharan Africa focused early-stage and growth investment firm for an undisclosed amount, he reveals. “Our work at AFEX contributes to SDGs 1, 2, 5, 8 and 12; no poverty, zero hunger, gender equality, decent work and economic growth and responsible production and consumption. With such outcomes as safe and healthy food, higher yields, household savings and resilience, reduced food waste and year-round supply, our operations impact a number of sustainability concerns.” However, the firm will continue to adapt to provide even more sustainable operations. “For instance, we already provide secure storage to prevent post-harvest loss as well as reduce waste along the value chain. But to improve our contributions, we will put in deliberate measures in ensuring our practices are environmentally friendly and look into biological alternatives for chemicals currently being used in our operations.” He asserts that by working with AFEX, farmers in Nigeria’s rural communities have improved their livelihoods and become stronger economic actors, thereby delivering benefits to their communities and contributing to Nigeria’s food security. “In our experience, working with farmers across the country over the past five years, when a farmer can access loans and a bundle of products and services (farm input, education, micro-insurance, storage as a service etc), he increases his income by 400% over three years, achieving over US$2,000 in savings.”

We very quickly realized that what we had assumed would be a FinTech venture needed to be a supply chain solution working with rural smallholder farmers, and aggregating very small lots of grains and matching those to buyers

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MY COMPANY PROFILE: AFEX

Strong Management Team Drives Company's Growth AYODEJI BALOGUN – CEO, AFEX COMMODITIES EXCHANGE LIMITED AFEX’s Chief Executive Officer Ayodeji Balogun leads a team of experts who are dedicated to grow the company across Nigeria and into West Africa – impacting lives and changing the commodity trading landscape in the region and Africa. His greatest inspiration remains Steve Jobs, whose career at tech giant Apple is a constant inspiration for him

understanding for others necessary to build fruitful and impactful relationships. He also believes that his incredible levels of grit, have helped him immensely in his career. “I believe that the tools needed for success in life are beyond building complex financial models and creating insightful decks. They require understanding people (millennials and tech-natives particularly) and how to keep them continuously motivated; understanding the world's wicked problems (poverty, financial inclusion, climate change and adaptation) and how to create solutions that are commercially viable; and even harder, raising capital to solve these problems and creating social and economic value.” AKINYINKA AKINTUNDE - VICE PRESIDENT OF FINANCIAL MARKETS, AFEX COMMODITIES EXCHANGE LIMITED

– especially Jobs’ focus on building solutions that focus on the customer. With an MBA from Lagos Business School in Nigeria, Global CEO – Africa from IESE Business School and a certificate in Creative Leadership from the THNK School of Creative Leadership, Ayodeji learnt how to trade and grow businesses on the streets of West Africa before he turned 25. He says that the MBA degree gave him the frameworks for analysis of businesses, and the ability to speak the business language – and was more than just a mere degree to him. He believes that his ethos align very strongly with AFEX’s values of Execution, Excellence and Empathy. He likes to lead from the front; do what needs to be done, get results but still retain the humanity and

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Akinyinka spearheads the firm’s endeavour to leverage technology to transform agriculture in Nigeria whilst using innovative humancentered approaches in developing products that are set to transform the investing landscape of the continent. He bagged his MBA from Lagos Business School and has a Certificate in Corporation Innovation from Stanford Graduate School of Business, California. He specializes in strategy, finance, capital markets, product development and business technology.

Essentially we are building a technologydriven capital market infrastructure, which will unlock alternative investment capital to finance tradable lowrisk agriculture and other commodity types.

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KAMALDEEN RAJI - MANAGING DIRECTOR, AFEX FAIR TRADE LIMITED Kamaldeen oversees the trade and farmer engagement side of AFEX. He has extensive experience and strong leadership capabilities in agronomy, merchandising, agricultural marketing, and redistribution, with over 10 years’ experience working across large, multinational, and mid-sized companies’ operations in the industry.

HEMENSE ORKAR - VICE PRESIDENT OF COMMERCIALS, AFEX

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Hemanse joined AFEX in 2019 to lead the implementation of storage, trade and finance solutions and oversee market development strategy and market expansion efforts. He also focuses on developing relationships with clients and stakeholders. He obtained his MA in Public Policy from the University of Chicago and his BSc. in Accounting from Calvin University. OLUWAFUNTO OLASEMO – MARKET DEVELOPMENT MANAGER, AFEX COMMODITIES EXCHANGE LIMITED Oluwafunto leads engagement with Capital Market Operators and Financial Institution to unlock funding for smallholder farmers and create portfolio products backed by commodities as alternative asset class for investors. She is a market development expert with over 9 years work experience in delivering financial service solutions to medium and large enterprises; and has a strong reputation of effectively managing multiple clients’ engagement through all phases of product development, research, strategic planning, campaign testing and post-go-live. She was recently involved in raising over a billion naira in funds that will provide 25,000 smallholder farmers quality input for the 2020 planting season. FBA

Our commodity trading platform ComX was awarded the AppsAfrica Award in the Agritech & FoodTech category. The award celebrates the innovation and technological prowess shaping our ecosystems.

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TheNest AFRICA

AT THE NEST AFRICA OUR AIM IS TO CONNECT START-UPS WITH BIG CORPORATES & FUNDERS

Start-ups and young businesses in sub-Saharan Africa face a myriad of challenges, including lack of access to technology, expertise and networks to grow. At The Nest Africa, we are creating a collaborative facility with new product development labs, production and packaging kitchens and office space for use by start-ups and young companies to facilitate their innovations and growth towards becoming the next big thing. AND WE BELIEVE THAT CONNECTING THEM TO BIG CORPORATES AND FUNDERS IS KEY TO THEIR SUCCESS Visit the website and sign up to partner with us today

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COMPANY PROFILE

KWANZA TUKULE FOODS YEAR IN REVIEW

START-UP DEALS OF THE YEAR 2020


FOOD STARTUPS AFRICA: KWANZA TUKULE FOODS

Kwanza Tukule Foods: Tough times, new strategy to serve low income urban areas The World has changed significantly since we last featured Kwanza Tukule Foods in our sister publication Africa Inc. in early 2020. The Covid-19 pandemic has impacted the business, just like many others across the World. We had a chat with company’s Founder Khadija Mohamed-Churchill on how the company has weathered the storm and pivoted into the future By Francis Juma

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he Covid-19 pandemic outbreak has shown to the world of business the importance of lastmile connectivity and the opportunities that abound by adopting mobile and digital tools for the successful running of businesses. In Africa, where a young, upwardly mobile and mobile savvy people make up the bulk of the population – and where informal businesses make up the bulk of the transactions - the need for an agile distribution system and mobile and digital-ready strategy has been laid bare during the pandemic. However, for Nairobi-based Kwanza Tukule, which provides socially and economically empowering food supply services in the low-income areas of the Kenyan capital, the pandemic has been a transformational moment for the firm, as it has had to change its business strategy midstream, to respond to the challenges and opportunities that the pandemic has thrown its way.

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THE TRANSFORMATION “Covid-19 has been extremely brutal to the economy and also to businesses,” Khadija Mohamed-Churchill, the Founder of the company informs Food Business Africa during an interview at their warehouse, located in the busy Industrial Area in Nairobi. “For Kwanza Tukule, we mainly focus on street food vendors. With Covid-19, there were restrictions by the government in the beginning that resulted in the closure of restaurants, bars and cafes, which greatly affected our business significantly. However, during that time, we focused more on kiosks and delivery to households, which enabled us to have some revenue coming in and be able to pay our bills and keep our doors open.” Utilising a cashless, mobile-based B2B model, Kwanza Tukule enables easy, reliable, consistent and affordable food products to reach street food vendors. The company exclusively focuses on low-income areas, mostly the FOODBUSINESSAFRICA.COM


slums of Nairobi, such as Mukuru, Kibera, Mathare and Kawangware. While the selling of pre-cooked food products was the main stay of the business before the pandemic, Khadija says that the company’s decision to boost their food products distribution side has been the saving grace for the firm, as it sought out ways to weather the disruptions of the pandemic. “The pre-cooked products were greatly hit by Covid-19. What saved us were the dry foodstuff like wheat flour, sugar and cooking oil, which helped us to survive the crisis. We had to put a stop to cooking food products since restaurants and cafes were closed, so we had no customers to sell to. However, it opened a new world for us.” “Although Covid-19 has been difficult for us, it has really proved to us that our business model is sustainable because we are in the food business and obviously people have to eat. We were able to not only survive the pandemic but also grow significantly, but we could have grown faster had it not been for the pandemic,” she states. “We have also grown geographically, product wise and also as an organization. I think Covid-19 is tough but it has also made us put some tight controls in place in order to survive.” She adds that while the company was operating from one warehouse before the pandemic, they have since managed to lease a second one at a new location, and are at advanced stages to add a third warehouse to meet increasing demand. “We needed more space for our products, we have increased our line of products, customers, fleet of vehicles and also the number of employees. We have seen growth and although we have not met our growth plans, we are grateful for where we are because we are better off as compared to other businesses that are struggling.” THE MODEL WORKS Khadija reveals that the firm’s success can be attributed to the fact that they sought out a unique market to serve with their products and services. “We understand our customers very well; our focus is on low income areas and food vendors. We also know them very well, from what they buy, where they are and basically, everything about them. This knowledge has been very critical to us surviving the pandemic.” The food vending business is picking up now that the government has relaxed the restrictions. We are also seeing our customers who had closed shop coming back and most of them are happy that we are still here and still servicing them. One thing I have learnt is that there is a big gap in terms of reliability in the delivery and logistics business in the low-income areas. That is the gap that Kwanza Tukule seeks to fill.” She adds that while their main customers are still the food vendors, they have since added kiosks. “It would be unwise of us not to go for the kiosk market, since most of our customers have kiosks

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anyway.” POWER OF PARTNERSHIPS Khadija discloses that one strategy that has worked well for them has been the partnerships they have sought with food companies to act as distributors in low-income areas. “We have signed partnerships with big manufacturers and millers to act as their last-mile distributors not just to the food vendors but also to kiosks as well in our areas of operation. We seek to revolutionize this sector by ensuring that we deliver food that is nutritious, safe and affordable to the low end consumers - that is our goal.” One such partnership has been with the leading flour miller, Pembe Flour Mills. “I had a meeting with one of the key people at Pembe, I explained to him our business model and our target market and he was very impressed with the kind of people we were going after. You see, most of the big brands want presence on the ground; they want to be in every corner shop across their markets and they also want to be present in the low-income areas - but most of their distribution mechanisms do not really deliver that. Since this is what Kwanza Tukule does, this was so refreshing for Pembe. We agreed to work together; they offered us generous support including transport vehicles and good discounts. We were able to quickly deliver their products to the ground using our distribution channels.”

WE HAVE MANAGED TO MEET AND EXCEED THE TARGETS WE HAD WITH PEMBE, WHICH MEANS THAT DEMAND WAS THERE, IT WAS JUST THE INEFFICIENCIES OF DISTRIBUTION TO GET TO THE LOWEST OF CONSUMERS.

“We have managed to meet and exceed the targets we had with Pembe, which means that demand was there, it was just the inefficiencies of distribution to get to the lowest of consumers,” Khadija says, excitedly. “These low income areas are underserved by the existing modes of distribution. We are passionate and committed about doing this and that is why we are able to power through where others have failed. The fact that we are able to deliver every morning, whether it’s raining or sunny, puts us at a level of reliability and for customers who haven’t had it, this is a big emotional investment. That is why you will find that 99% of our customers are very loyal. Our customers also want personal relationships; so we employ people from within the neighbourhood to be the area sales representatives. Therefore, there is a strong community goodwill that we create, as soon as we begin serving a particular locality.” TECHNOLOGY IN FOCUS Another reason why the company has been successful this

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FOOD STARTUPS AFRICA: KWANZA TUKULE FOODS

COMPANY PROFILE

Sector: FMCG distribution Country: Kenya Main Contact: Khadija MohamedChurchill Website: www. kwanzatukule.com Email Address: info@kwanzatukule. com Telephone: +254 757 427 227 Address: NCPB Godowns, Lunga Lunga Road, Industrial Area, Nairobi, Kenya

far, according to Khadija has been its adoption of technology – even in the middle of the pandemic, the firm has shifted its operations to more advanced technologies to boost efficiencies and reduce risk. “Technology is the backbone of what we are doing. We have adopted industry-leading technology; we use Salesforce to manage our sales processes. We have also partnered with a company that implements “Dukaree” a system that is specifically designed for kiosks and small vendors. For stock, process and cash flow management, we have adopted SAP. Our customers have an app that they can use to place their orders, check product prices and even track their deliveries, since the sales representatives also operate within the system. Everything is automated, from beginning to the end, which means that we don’t have any paper processes any more. It is this adoption of technology that powers our growth. All our customers’ data is managed within the system, which means that I can generate reports that will help me make good decisions for the company.” She recommends that it is important to adopt new technology before a company becomes bigger and complex, as it becomes easier to implement, and that it also ensures that the staff grow with the system. “Most of the people I spoke to were telling me that it is too early to implement SAP; but you see, you have to think about where you are going, not just where you are. For us, we need to do these basic things before we sprint and grow to where we want to be. It is very important to know what your vision is - if you are clear about where you are going the pieces will fall into place. You have to put in place the right technology, since you cannot run any business these days without technology - it is just impossible. You will not survive the stiff competition - and the earlier you do it the better.” PRIORITIES FOR THE FUTURE While the company has had a major transition into the distribution business, Khadija says that they have a lot to achieve in 2020 and beyond. “We need to accelerate our growth, we need to invest more. We already know that the model works because where we were a few months ago is not where we are now. We continue to plough back whatever revenues we make into the business. We have already

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bought new vehicles, increased our staff and also expanded our space but that is not enough yet: we need more vehicles, more systems, more computers etc. The market is there, we need to scale up, but we know that the profit is so small in this sector and so you have to chase volumes and to chase volumes you need the right investments.” She also adds that they are seeking to partner with more companies to expand their range of products. Khadija divulges that they are in discussions with investors in order to grow the business. “We are speaking to a couple of investors and are still open to more talks. Although we are in our early days, I am confident that anyone who looks at our track record in terms of growth, consistency and brand will be very impressed. I can therefore confidently say that we will be able to close a deal soon; the key is to find the right partner who is committed to what we are doing as much as we are. We want people who can also bring us expertise. The thing is, money will come as long as you are doing what you are doing well.” “Covid-19 has obviously been a challenge but now we have learnt how to live with it. Last mile distribution is a challenging space to be in, especially if you are focusing on lowincome areas, but we are equal to the task. Our focus is growth,” she concludes. FBA

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African food industry startups make important strides in 2020, despite Covid

S

By Catherine Wanjiku

tart-ups are a symbol of entrepreneurship in Africa. These companies, which are mostly at their formative stages, have cut themselves apart from others; despite their small-sized nature they have the potential and desire to scale regardless of geography. This is in pursuant to introduce their novel and innovative offerings, not only in their home market but the wider African region and across the global. What is common about all start-ups is that they leverage on technology and innovative ideas to thrive. Bringing forth unmatched and unique solutions, they are highly attractive to investors who seek to give them the needed support in terms of financing or business management, which they are highly in need of. 2020 will go down in history as one of the toughest years, serving major blows not only to the health sector with the onset of the COVID-19 pandemic but also causing social and economic disruption. However, the African start-up space showed great strength and tenacity in the face of adversity with the number of investors on the continent growing, with funding spreading across more geographies and in an increasing number of verticals. Other than funding, the year saw startups being acquired by larger corporates or by fellow startups in a bid to consolidate or complement their existing undertakings. Likewise, the businesses ventured into new markets and others expanded their portfolios. Focusing on the deep-pocketed institutional investors, private equity and venture capital firms, family offices or

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angels who wrote cheques to back the start-ups in 2020, Disrupt Africa in its recent report titled “African Tech Startups funding report 2020”, estimates that US$701.4 million was injected in Africa’s start-ups scene. This, according to the report, was raised by 397 start-ups, reflecting a 27.7% rise from 2019, with the funding total 42.7% higher than the previous year. The report estimates that the average deal size hit US$1,766,903 in 2020, an 11.8 per cent rise from 2019’s average. The rise in the number of start-ups being funded, growing average ticket size and soaring total funding, signified there was increasing confidence and interest in backing start-ups on the continent, with over 370 investors venturing in the game in 2020. The statistics are not definitive as there might be some deals, which might have taken place quietly, especially given the conservative nature of undisclosed rounds. To this end the total funding raised is likely to be higher than the indicated amount. From the analysis, the top four markets of Nigeria, Kenya, South Africa and Egypt maintained their dominance in 2020 with the bulk of funding activities continue to take place in the countries. According to the report, Kenyan start-ups raised a record amount of funding in 2020, securing a combined total of US$191,381,000. Accounting for 27.3 per cent of the continent’s total investment - the largest amount of funding ever achieved by a single country. It is noteworthy that the total funding accrued by Kenyan start-ups was raised by 59 start-ups, the least number of funded startups among the big four, but showed that investors are attracted to the

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economy and are willing to back the solid. Nigeria is termed as the home to the most funded start-ups, attracting the second largest amount of investment. In 2020, 85 of the country’s startups raised a combined US$150,358,000 - accounting for 21.4 per cent of the total in Africa. Coming in third place as the most attractive investment destination on the region in 2020 is South Africa, with 81 start-ups raising a combined total of US$142,523,000. Closely following was Egypt, with 82 start-ups raising US$141,397,000. The big four markets are reported to have accounted for 77.3% of funded ventures on the continent taking a big chunk of the raised amount, or 89.2%. However, investors have increasingly expanded their focus to less developed start-up ecosystems, with 90 startups from 20 markets outside the big four securing backing. This was a rise from 2019’s 51 companies in 15 alternative markets. START-UPS IN THE FOOD INDUSTRY Start-ups operate across a myriad of industries, and narrowing it down to the food and agriculture industry, the sectors with the most players in Africa include e-commerce and retail, agri-tech, food delivery and to some extent manufacturing and logistics. Food Business Africa covers a number of funding and investments into the start-ups in the Continent and beyond and tracks mergers, acquisitions and divestments on a daily basis. To this end, we can confidently put out a claim that these are the food industry start-ups that created the waves in 2020 and which should be closely watched in 2021. AGRITECH Agriculture is the continent’s primary employer and accounts for more than 30 per cent of gross domestic product. With the sector still having room to grow, especially when it comes to addressing increasing global and regional food insecurity, tech startups that help farmers access markets, inputs, insurance, financing and knowledge, or improving farm management and increasing outputs, have a huge role to play in this. Investors continue to see strong potential in African agriculture, especially in certain key markets like Kenya and South Africa. One of the leading players in this sector, Twiga Foods, a business-to-business platform that links farmers to markets, received a US$5 million loan from the United States International Development Finance Corporation (DFC) in 2020. The financing was aimed to supports its 2X Women’s Initiative by empowering a network of mostly female produce vendors to increase sales and profits. This was later followed with the firm partnering with IFC on a US$30m unfunded risk sharing facility to fund irrigated medium-scale contract farms to complement its seasonal smallholder farmer supply base. Other than securing funding, the company partnered

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with technology firm Liquid Telecom to increase agricultural productivity through precision farming by use of Internet of Things (IoT) network. This was in addition to collaborating with plastic and packaging solutions provider Silafrica to create and assimilate the use of smart crate systems FROM THE ANALYSIS, THE TOP FOUR MARKETS OF NIGERIA, KENYA, SOUTH AFRICA AND EGYPT MAINTAINED THEIR DOMINANCE IN 2020 WITH THE BULK OF FUNDING ACTIVITIES CONTINUE TO TAKE PLACE IN THE COUNTRIES.

into their operations to boost farm to market tracking and transparency. Still in East Africa’s leading economy, Apollo Agriculture raised US$6 million in Series A funding round led by Anthemis Exponential Ventures. The funding was aimed to enable the commercial farming platform to scale up its partnership with more farmers. Apollo Agriculture uses machine learning and automated operations technology to offer product suit for farmers including financing, data analysis for higher crop yields, optimised advice and options to purchase key inputs, equipment and insurance. Further to that, Kenyan agri-tech startups Illuminum Greenhouses, Juhudi Kilimo and WeFarm secured US$856,000 in grant co-funding from the UK’s innovation agency, to develop Africa’s first solar powered smart sensors with artificial intelligence (AI) and machine learning technology for greenhouse microclimate monitoring and management system for specific crops. Medium-ticket funding of about US$277,000 was receivedd by B2B agritech startup Taimba, which operates a mobile-based cashless platform connecting rural smallholder farmers to urban retailers. The funding was obtained from Enviu and the DOEN Foundation. Farmshine, operator of an agriculture platform in Kenya where farmers, buyers and service providers trade on mutually beneficial terms, raised US$250,000 investment from US-based impact investor Gray Matters Capital. Going an inch lower, Farmers Pride also got US$220,000 funding from Gray Matters Capital to scale its operations, which include providing a one stop online-to-offline DigiShop marketplace platform that connects village level farmers to relevant information, quality inputs and credible agriculture services to ensure sustainable increased farm production and mitigate effects of climate change. In neighbouring Tanzania, East Africa Fruits, a company addressing food distribution challenges by improving efficiencies in the farm-to-market sector, raised US$2.05m in Series A equity funding round, led by Goodwell Investments, a Dutch impact investment firm. Goodwell also took part in Good Nature Agro’s series A equity funding round raising US$2.1 million to build

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up an essential value-add processing infrastructure in Central and Eastern Zambia. GNA is a social enterprise that partners with smallholder farmers to improve their productivity through soil-enriching legume farming and links them to high-value legume markets. Another eye-catching investment took place in South Africa, with Aerobotics clinching R253m (US$17m) in Series B funding round led by Naspers Foundry, with participation from the Platform Investment Partners, FMO Ventures Program and the Cathay AfricInvest Innovation Fund for international expansion and technology development. Aerobotics is active in the farm management software, sensing and IoT space and has developed an orchard monitoring, yield estimation and insurance reporting product that supports precision agriculture in the high value tree crops segment. Still in South Africa, swiftVee, which undertakes realtime online livestock auctions, raised US$1.5 million in a Series A funding round to enable it expand its offering within South Africa and neighbouring countries, including Namibia and Botswana. Shifting focus to West Africa, Airsmat, a Nigerian based AI-powered platform that helps farmers drive efficiency into day-to-day decision-making process through the use of drone and satellite as data-collection vehicles, raised US$100,000 from Zetogon, a UK based Information Technology company. Likewise, Releaf Group, an agritech

company that is using technology to address supply chain challenges in the agriculture industry by connecting buyers and sellers, acquired US$100,000 funding from Harambe Entrepreneur Alliance. Upwards north, Moroccan Agritech company, SOWIT, specializing in precision agriculture by offering digital solutions that enables farmers to preserve irrigation water and determine fertilizer needs for a range of crops, clinched an undisclosed amount of funding from SEAF Morocco Growth Fund. In Cameroon, Freshbag an innovative digital

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platform that connects farmers and vendors to ensure a fair and reliable food supply network, clinched an investment from German firm GreenTec Capital Partners. Some of the small-ticket sized funding that were acquired by Agritech start-ups in the year underreview include Complete Farmer (Ghana) that pocketed US$50,000, Famunera (Uganda) received US$10,000, Phema Agri (Tanzania) obtained US$50,000, Lono (Ivory Coast) received US$20,000, Bringo Fresh (Uganda) got US$10,000, Kilimo Fresh (Tanzania) clinched US$50,000 and Agriple (Nigeria) received US$50,000. Other than raising funding, companies like Farmcrowdy, that provides structured financing to farmers, aggregation and sale of produce directly from farming communities and undertake input and agronomic analysis, expanded its operations to explore the meat selling business with the acquisition of Best Foods. The company later on unveiled its six business units to steer its operations in years to come leveraging on technology, including FC OTHER THAN RAISING FUNDING, COMPANIES LIKE FARMCROWDY, THAT PROVIDES STRUCTURED FINANCING TO FARMERS, AGGREGATION AND SALE OF PRODUCE DIRECTLY FROM FARMING COMMUNITIES AND UNDERTAKE INPUT AND AGRONOMIC ANALYSIS, EXPANDED ITS OPERATIONS TO EXPLORE THE MEAT SELLING BUSINESS WITH THE ACQUISITION OF BEST FOODS. Tech and Data aimed to provide insights, market and yield predictions; FC Insurance, focused to provide access to affordable life, health, crop & property Insurance for farmers & other low-income agro value chain participants; FC Marketing, operating a 360-degree integrated system of marketing in its quest to become a marketing solutions provider; FC Foods, a one-stop for purchase of fresh food and groceries; FC Finance to help farmers access capital and loan facilities; and FC Aggregation a production and out growers project aimed to facilitate trade. On a similar track, South Africa’s Zebu Investment Partners, acquired a controlling equity stake in ag-tech company IQ Logistica (IQL). IQL is the owner and developer of a cloud-based platform used to collect, collate, and aggregate data for the purposes of tracing agricultural outputs and related key data as these progress through the value chain. Collaborations also came to the fore with Lentera Africa, a Kenyan based provider of satellite-based crop health analysis and crop modelling services, signing a partnership deal with Mauritius Chemical and Fertilizer Industry (MCFI), one of Africa’s oldest fertilizer makers, to provide MCFI’s customers with its services.

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E-COMMERCE & FOOD DELIVERY Consumers across the global have turned to more convenient modes of sourcing and accessing their supplies, which has fuelled the growth of the e-commerce market. The sector was already on a solid upward trajectory but the COVID-19 pandemic propelled it further upwards. This is attributed to lock-downs and social distancing restrictions leading to reduced traffic in retail stores, restaurants and markets, among other places. In the food industry, Research and Markets estimates that the global e-commerce market is expected to grow from US$14.9 billion in 2019 to about US$34.6 billion in 2023, at a CAGR of 23.4%. Big players like Jumia Foods and Uber Eats currently dominate the sector in Africa,

KEY NUMBERS

US$701M

AMOUNT OF MONEY INJECTED INTO AFRICA'S STARTUPS IN 2020, INTO 397 STARTUPS. THIS WAS A RISE OF ABOUT 43% OVER THE 2019 FIGURES, IN VALUE

but start-ups have also joined the bandwagon, expanding their offerings beyond food delivery and ordering to include electronic retail stores and B2B FMCG suppliers. Egypt is the region’s leader in this space. In 2020, food discovery and ordering startup Elmenus raised US$8 million in Series B funding round, to help it scale across the country. The funding was led by Global Ventures and Algebra Ventures. This was followed by fresh bread and groceries delivery company Breadfast raising a sevenfigure investment in a bridge funding round from Paul Graham, founder of Y Combinator; Paul Buchheit, the founder of Gmail; Endure Capital and Shorooq Partners. Nothing seemed to slow down Egyptian start-ups’ crave for growth as food-tech startup Mumm closed a pre-Series A bridge funding round led by Alexandria Angels. Initially launched as an online marketplace for customers to access nutritious, affordable and delicious homemade food conveniently, Mumm has grown to become a virtual cafeteria for corporate and SMEs offices, delivering company orders in bulk. On a similar track, food ordering platform, Ordera secured a six-figure USA dollar investment in a seed funding round led by Alexandria Angels, Saudi-based VC Daal and AUC Angels. Ordera is an e-commerce startup that allows users to order food online and then pick it up from restaurants and cafes, without having to wait in any queue, fostering a convenient and fast process.

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In South Africa, on-demand food and grocery delivery platform, Zulzi bagged US$1.6 million in funding from an unnamed JSE-listed company, aimed to expand its operations. The company operates via a mobile and web app, which features retailers such as Woolworths, Pick n Pay and Spar. Investors were also quick to spot Yebo Fresh, which delivers fresh, frozen and dry groceries to township communities in Cape town, with E4E, Mark Forrester, Dale Williams, and the founders of cars.co.za injecting an undisclosed amount of funding in the start-up. Deep-pocketed investor, Naspers was also not left behind, backing food systems integrator Food Supply Network (FSN) from its US$85m investment vehicle. Other than raising funds by the startups, the country also welcomed a new grocery delivery platform dubbed Delivast, allowing consumers to order goods from multiple stores in a single order and have them delivered to their preferred location. Big news emerged in the market when South Africa’s supermarket chain Pick n Pay acquired on-demand online delivery app Bottles, to strengthen its e-commerce operations. Other regions like West Africa were not left behind. Pricepally, a Nigerian group-buying platform secured an undisclosed amount of funding from German firm GreenTec Capital Partners, to expand its operations outside its Lagos base. The company aggregates consumer food demand in urban cities and matches them with supplies directly from farmers and wholesalers. Meanwhile, OjaExpress, a digital platform that allows users to shop online for ethnic, cultural and religious ingredients got US$120,000 in seed funding from Techstars Kansas City accelerator. In neighbouring Ghana, Meltwater Entrepreneurial School of Technology invested in a number of Ghanaian food tech start-ups such as food delivery company Heny, retail-tech platform Shopa, and reselling service Tendo, with each bagging US$100,000. Shifting focus to East Africa, AfricaSokoni, a Kenyabased e-commerce start-up expanded into the Nigerian market as Bolosokoni after the acquisition of fellow startup, Bolorims. The need to venture into new markets was also reflected by Glovo, on-demand delivery app which expanded its footprint into two more towns in Kenya – Eldoret and Kisumu after entering its second East African market, Uganda. On a similar track, Botswana’s food delivery startup MyFoodness rebranded as Yamee and announced its entry into the Tanzanian market. In other markets, Togolese ride-hailing startup Gozem acquired the country’s leading food delivery start-up Delivroum. Meanwhile, Lusaka Grocery Delivery, Zambia’s newly launched grocery delivery startup raised US$38,500 in pre-seed funding round to enable it scale its services. B2B ECOMMERCE STARTUPS As earlier mentioned, start-ups fashioning retailers with supplies have also curved their own market after

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KENYA

identifying the un-tapped niche. Egypt based B2B e-commerce platform Fatura, which connects FMCG wholesalers to retailers, raised a sevenfigure US$ investment in a seed round led by Disruptech with participation from EFG EV, and Cairo Angels. The company is eyeing an aggressive expansion to establish itself as the country’s leading B2B digital marketplace that connects all FMCG industry stakeholders, including manufacturers, distributors, wholesalers, and retailers. It’s competitor, ExpandCart raised US$2.5 million in a Series A round led by Egyptian VC Sawari Ventures. The investment will be channelled towards digital commerce solutions targeting online and offline retailers, reducing the gap between merchants and suppliers across the Middle East. In the same field, social commerce platform Brimore raised US$3.5 million in a Pre-Series A round led by Algebra Venture. During the period under review, East African retail tech start-up, Sokowatch commenced the use of electric tuktuks in dispatching goods from its warehouses to micro retailers. Antler, a global startup generator and earlystage venture capital fund issued US$100,000 funding to Kenya’s ChapChap Go. The company cuts out middlemen distributors by linking retailers directly to manufacturers, and provides deep discounts on group buying in a number of FMCG categories. In Nigeria, TradeDepot, a B2B e-commerce platform made the headlines when it raised US$10 million in a preSeries B equity funding to expand into other African cities and launch a suite of financial products and credit facilities for its retailers. The round was led by Partech, International Finance Corporation, Women Entrepreneurs Finance Initiative (We-Fi) and MSA Capital. Meanwhile, Rensource a provider of merchant infrastructure, launched a digital platform, Merchlist, a platform aimed at helping small and medium-sized retailers in Nigeria get discovered quickly, while enabling servicing and fulfilment of customer orders online during the national lockdown that was imposed in the country to combat the COVID-19 pandemic. FOOD MANUFACTURING The food-manufacturing sector was not left behind, with the budding companies seeking to disrupt the sector with new innovative offerings. One for the books was Tomato Jos, the Nigerian agroprocessing company focused on the local production of high-quality tomato paste, which completed a EUR 3.9 million (US$4.2m) Series A funding round led by Goodwell Investments. The company’s vision is to create and retain local value-add to the tomato value chain, reduce postharvest losses, and improve the lives of smallholder farmers. In Zambia, spices and pastes processing startup Sage Valley clinched a K250,000 (US$11,500) revolving

COFFEE & TEA EXPO 15+

SPECIALTY & COUNTRY PAVILLIONS

0+ 500 S NDEE

ATTE A AFRIC FROM ORLD W & THE

1000+

PROD UCTS & SOLU TIONS FROM AF & BEY RICA OND

The Kenya Coffee & Tea Expo showcases packaged and processed coffee, tea, cocoa and other related hot beverages from Kenya, Africa and the World to a local, regional and international audience, including: Packaged coffee, tea, cocoa and other hot beverage products • Ready-to-drink coffee, tea, cocoa and other hot beverages • Wellness and other plant based hot and cold drinks • Medicinal and functional drinks • Equipment and solutions for preparing, cooking and serving coffee, tea, cocoa and other hot beverages • Ingredients for preparing coffee,tea and other hot beverage products • Coffee and tea houses.

DECEMBER 2-4, 2021

SARIT EXPO CENTRE, NAIROBI, KENYA A SPECIAL PAVILLION AT:

Afmass FOODEXPO

The Future of Food in Africa

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FOOD STARTUPS AFRICA: DEALS OF 2020

working capital facility from the Empress Fund. The company will channel the cash towards increasing their production capacity and meeting increased demand for their products. Black Mamba Foods, an Eswatini based speciality food processor clinched R9.2m (US$559,000) worth of investment from Enygma Ventures. The food company manufactures a range of chilli sauces, pestos, pickles, chutneys and jams, all made from natural, fresh ingredients without artificial flavours or preservatives. German premium investor, GreenTec Capital Partners made another investment in the region, backing Ecodudu, a Kenyan-based waste-to-value company that produces high-quality insect-based protein for animal feed and organic fertilizers from recycled organic matter. Further, Marula Agribusiness of Uganda got US$15,000 from The97Fund. The company transforms waste into high quality livestock feed. Mhogo Foods, a company that adds value to the cassava tubers by processing them into gluten-free flour, cassava crisps, cassava starch and cassava-based animal feeds got a total of US$22,500 from AgriPitch competition and Generation Africa initiative. Likewise, Baby Grubz, a social enterprise in the nutrition space, processing all-natural cereals for children under 5 years, participated in the AgriPitch competition and SUN Pitch Competition receiving a total of US$30,000. LOGISTICS AND SUPPLY CHAIN

Well-established companies mostly dominate the logistics arena as it entails the critical task of managing the flow of things between the point of origin and the point of consumption to satisfy customer requirements. However, there are start-ups who have been bold enough to venture in the space. Copia, a Kenyan company that doubles up as an e-commerce and logistics startup received US$5 million in equity funding from the United States International Development Finance Corporation (DFC) for expansion. The company uses mobile technologies, a network of local agents and proprietary logistics technology to serve a high growth market that formal retail and e-commerce cannot penetrate. Expanding the cold chain across the African continent, InspiraFarms, a provider of on- and off-grid cold storage solutions, closed a Series B funding round to further expand its operations in the region. In the same year, the company also got a US$500,000 loan from SunFunder. Rwandan food distribution and logistics company, GET IT obtained an investment from Chicago-based impact investor VestedWorld. GET IT is one of the largest distributors of fresh produce and dry goods in Rwanda and the East Africa region, supplying most of the leading hotels and restaurants. The company uses off-grid cold-storage facilities to prevent spoilage of food from its own farm and other suppliers during transit. FBA

Afmass FOODEXPO A SPECIAL PAVILLION AT:

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Meat, Poultry

Fish Expo

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+ 500ND0EES

DECEMBER 2-4, 2021

SARIT EXPO CENTRE, NAIROBI, KENYA

ATTE FRICA A FROM WORLD E & TH

The Future of Food in Africa

1000+

PRODUC TS & SOLUTIO N FROM AF S RICA & BEYON D

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The Kenya Meat, Poultry & Fish Expo showcases meat, poultry, fish and seafood products to a local, regional and international audience including: Fresh meat, poultry, fish and seafood • Processed and packaged meat, poultry, fish and seafood products – sausages, hams, Viennas, bacon etc •Frozen and chilled meat, poultry, fish and seafood • Processing, packaging and storage solutions for meat, poultry, fish and seafood industry • Equipment for cutting, slicing, weighing, blending, thawing, cooking meat, poultry, fish and seafood products • Ingredients, chemicals and other solutions for the meat, poultry, fish and seafood industry

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Dairy

BUSINESS

TRENDS IN FORMULATING, PROCESSING, PACKAGING & CONSUMPTION OF DAIRY PRODUCTS

Keeping up with the evolving clean label concept in dairy products By Catherine Wanjiku

Consumers across the World are seeking dairy products with natural and wholesome ingredients, especially in the yoghurt space – as the clean label trend evolves into the mainstream

T

he popular trend of healthy living has made consumers to demand the freshest, most natural, organic and wholesome food products. This shift has led to rise of a mega global trend known as “clean label.” A juggernaut it has become that the clean label ingredients market was valued at US$38.8 billion in 2018, and is projected to reach US$64.1 billion by 2026, growing at a CAGR of 6.8% from 2019 to 2026, according to Report Linker. In a 2019 Innova Market Insights survey, the market

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researcher asked consumers about their perception of clean label. From the research, 30 percent of global consumers said they consider a food or beverage to fit the definition when they have no additives or preservatives. Moreover, 24 percent of global consumers chose “no artificial colours or flavours,” and 23 percent went for “organic.” The dairy aisle is no exception even if traditionally milk and its derivative products are known for their nutritional composition, which typically includes good amounts of

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DAIRY BUSINESS AFRICA: CLEAN LABEL

THE CLEAN-LABEL TREND HAS BROADENED INTO A WIDER MOVEMENT, FOCUSING ON AN INCREASINGLY MINDFUL CONSUMER TRYING TO MAKE RESPONSIBLE FOOD CHOICES THAT ARE NOT ONLY TASTY AND HEALTHY, BUT ALSO SUSTAINABLE AND ETHICAL. protein, calcium, and vitamin D. The focus of the clean label movement is not just the nutrition factor, but also the ingredients statement. In an interview with Food Business News, Ivan Gonzales, Marketing Director-Dairy at Ingredion Inc, indicated that the global ingredients solutions company undertook a research that highlighted recognition and acceptability of ingredients varies according to the food product and where it is being used. “Across the different food categories investigated, dairy and more specifically yogurt, was the one where consumers showed higher level of attention and awareness of the ingredients and claims used in their

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products of preference,” he said. The sentiments were echoed by Pam Stauffer, Global Marketing Programs Manager, Cargill, Minneapolis who stated that, “According to Cargill proprietary consumer research, more than half of consumers have heard of clean label, but only 1 in 10 is confident they know what it means. Despite that uncertainty, 8 in 10 consumers say they are somewhat likely to seek clean label products. In particular, many consumers set a high clean label bar for dairy products, which they inherently view as healthy. When Cargill asked consumers to identify the products, they pay closest attention to, dairy products and yogurt scored high.” A survey in 2014 by DSM found strong support for clean label yoghurt, with 49% of consumers willing to pay 10% more for yogurt that is free from artificial additives and preservatives, and 45% would pay at least 10% more for yogurt that is free from artificial colors and flavors.

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ATTRACTION AT FIRST SIGHT Coupled with consumers becoming more conscious, informed and connected as they closely examine the nutritional composition of food products and factoring them into their purchase decision, food manufacturers have become edgy in the game in a bid to instantly appeal to the consumer. Clean label information are now conveyed through front-of-package claims such as organic, all natural, no additives or nothing artificial. Entering the industry’s parlance, almost 28% of global food and beverage launches that Innova recorded in 2018 used one or more clean-label claims, which include natural, organic, no additives/preservatives and GMO-free. In the United States, the figure was even higher, with 39%. No additives/preservatives claims continued to feature most strongly, used for just over 15% of global launches in 2018, rising to over 20% within a year in the US. The US generally sees higher levels of use of all types of clean label positioning and is also particularly notable for the strong position of GMO-free labelling. This featured on 17.8% of launches, compared with just 6% globally and was also the number two clean label claim in the US overall, well ahead of both organic on just over 13% and natural on just over 8%. Consumers don’t just stop at the eye-catching claims as they flip the pack to set their eyes on the ingredients list. It’s worth noting that generational differences come into play within this space. According to C+R Research, Gen X consumers are less likely to be concerned about ingredients and additives than millennial and baby boomers are. A 2017 Packaged Facts US National Consumer Survey concurs with this finding as more than a third of younger consumers, those between 18 and 34 years old, said they were paying more attention to product claims and nutritional information for plant milks, cheese, and dairy milk, among other products. CRINGING AT LONGER INGREDIENTS LISTS When it comes to ingredients, the fewer, the better. It’s an added advantage if the ingredients listed are recognizable, with less mention of artificial ingredients and additives. This is tied to the fact that traditional dairy products are made with very few ingredients e.g. yogurt contains milk and cultures, while cheese contains milk, cultures, rennet, and salt. “Globally, 82% of consumers find it important to recognize the ingredients in the foods and beverages they buy, and for 81%, a short and simple ingredient list is important,” says Pat O’Brien, Ingredion regional platform leader, clean & simple ingredients, U.S./Canada. Brands that have tapped into this perception include Haagen-Dazs, an American ice cream brand, with all its varieties containing only five ingredients: milk, cream, sugar, eggs, and the characterizing flavor (e.g., cocoa, mint, coffee, lemon, or vanilla bean).

DAIRY EXPO KENYA

15+

SPECIALTY & COUNTRY PAVILLIONS

0+ 500 S D N EE

ATTE A AFRIC FROM ORLD W & THE

1000+

PROD UCTS & SOLU T FROM IONS AF & BEY RICA OND

The Kenya Dairy Expo is a series of African focused events that enable consumers and the general public to touch, feel and taste the latest processed and packaged dairy products including: Fresh and long life milk products • Yoghurt – flavoured, fruit, Greek etc • Traditionally fermented milk products and more • Cheese and Ice Cream • Butter and ghee • Flavoured milk products • Milk powder •Plant-based and dairy free products • Dairy/juice blends and mixes • Whey based products

DECEMBER 2-4, 2021

SARIT EXPO CENTRE, NAIROBI, KENYA A SPECIAL PAVILLION AT:

Afmass FOODEXPO

The Future of Food in Africa

FOODBUSINESSAFRICA.COM

WWW.AFMASS.COM/KENYA JAN/FEB 2021 | FOOD BUSINESS AFRICA

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DAIRY BUSINESS AFRICA: CLEAN LABEL

In 2015, Kraft Heinz quietly removed artificial colors, flavors, and preservatives from its flagship macaroni & cheese and were replaced by natural colors from paprika, annatto, and turmeric. The same year, WhiteWave Foods’ International Delight brand, now owned by Danone, launched a new line of coffee creamers called Simply Pure, made with skim milk, cream, cane sugar, and natural three flavors including vanilla, caramel, or hazelnut. Nestle also joined the bandwagon with nine of its Dreyer’s and Edy’s Slow Churned ice-creams re-branded to Slow Churned Simple Recipes, containing no more than eight ingredients, compared to the previous average of 22. Artificial colors and flavors, high fructose corn syrup, and GMO ingredients have been eliminated, and the milk comes from cows not treated with rBST growth hormones. Israel based plant-based food start-up Yofix Probiotic Ltd launched in 2018 its first dairy-free, soy-free yogurt alternative line, expanding its plant-based food and drinks platform. The new line produces three fruit flavors made from natural ingredients using zero-waste process that involves fermentation. According to the company, the product utilizes live probiotic cultures and prebiotic fibers contained in them to provide a nutritional and expedient diet for especially vegans, and was developed through it’s advanced technology, Bio 5 formula to achieve stability and texture without the use of additives such as gums, thickeners, sugars or colours. Dairy companies in Africa are not left behind. Brookside Dairy, Eastern Africa’s largest dairy operator has been launching its new yoghurt brands including its flagship Brookside, Delamere and Tuzo that are free from preservatives and artificial colours. In South Africa, Woolworths is well known for their rBST-free and preservative free milk products. SUPPLIERS WEIGH IN Supporting the dairy processors quest of providing clean label products, Arla Foods Ingredients launched its first clean-label ambient yogurt concept to meet Chinese demand in 2020. The new solution is the first of its kind, says the company. It uses Nutrilac YO-4575, a 100% natural whey protein, to give unrefrigerated yogurts a premium positioning with all-natural ingredients. “Ambient yogurts with a natural label are looking more and more like a major opportunity to capture a slice of China’s growing yogurt market. But to be part of this journey, manufacturers need to offer something different. Clean-label products are the perfect way for brands to differentiate in the category, while tapping into demand for premium products,” said Torben Jensen, Senior Category Manager, FDP, at Arla Foods Ingredients. The food ingredients business of Danish dairy giant, Arla Foods also recently launched the first ever organic micellar casein isolate, helping manufacturers meet demand for organic,

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AMBIENT YOGURTS WITH A NATURAL LABEL ARE LOOKING MORE AND MORE LIKE A MAJOR OPPORTUNITY TO CAPTURE A SLICE OF CHINA’S GROWING YOGURT MARKET. BUT TO BE PART OF THIS JOURNEY, MANUFACTURERS NEED TO OFFER SOMETHING DIFFERENT. natural and functional protein products. DSM, active in the health and nutrition field, launched a benzoate-free cheese-ripening enzyme Accelerzyme® CPG that allows cheese makers to respond to growing consumer demand for dairy products with a clean and clear label, by eliminating the use of artificial preservatives in cheese processing. DSM is further upgrading its entire cheese enzyme portfolio in response to this need. EVOLUTION OF CLEAN LABEL Clean label standards are moving beyond the substitution of artificial additives or the removal of controversial ingredients. There have been associated rises of interest in areas such as raw and paleo diets and focus on minimal processing, including the use of techniques such as coldpressing and high-pressure treatment. In addition, claims relating to human and animal welfare are also on the increase with much attention on supply chain transparency and sustainable sourcing. “The clean-label trend has broadened into a wider movement, focusing on an increasingly mindful consumer trying to make responsible food choices that are not only tasty and healthy, but also sustainable and ethical,” said Lu Ann Williams, director of innovation for Innova Market Insights. “This is running alongside increasingly wide ethical concerns, including fair trade and sustainability, packaging, the environment and animal welfare.” According to Innova Market Insights’ Top Ten Trends for 2021, 60% of global consumers are interested in learning more about where their foods come from. Transparency is set to dominate consumer demand in 2021 with brands adopting and pairing new packaging technologies such as invisible barcodes and near-field communication technology with creative, meaningful storytelling to be the winners. Nestlé recently launched the Skimmelkrans Net Zero Carbon Emissions Project in George, South Africa, aimed to create the company’s first carbon neutral dairy farm. Under the project, the food giant has committed that by 2023 the farm will be carbon net zero and will result in better care and nutrition for the cows, as well as better nutrition in the milk products produced, giving consumers a safe, environmentally friendly product. Clean label has gone mainstream and shows no signs of slowing down. It will be interesting to see how the food and beverage industry stays ahead of the trend considering its ever-changing disposition. FBA FOODBUSINESSAFRICA.COM


The dairy industry in Uganda offers glimmer of hope for the country’s food industry By Francis Juma

Since we last ran a profile of the dairy industry in Uganda in 2015, a lot has changed in the sector, as country continues to attract new investments and the sector becomes more sophisticated, to meet increasing demand for dairy products in the country, region and internationally.

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rom its lush green fields, abundant rainfall and fertile soils, Uganda has made long strides in its food security journey over the last nearly four decades, since peace was restored in the East African country, following more than 20 years of instability and stagnation in economic and agricultural development. In the recent past, apart from the booming coffee sector, the dairy sector has stood out for its ascent from the embers of the violence and chaos that was the hallmark of Uganda since it gained its independence from Britain in 1962 – that decimated the country’s vast potential as a leading source of agricultural produce, from fruits and vegetables, coffee, tea, grains, milk, meat, fish and legumes and many more.

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DAIRY SECTOR THRIVES The dairy sector in Uganda is one of the most important sectors in the country’s quest to boost the economy and its food and nutrition security – especially considering that Uganda has one of the youngest populations in Africa and the World, with a median age of 17 years. With a fast growing population that is growing at 3.32% per annum and which is more than 45 million in early 2020, Uganda’s demographic figures point to a country that is in need of a food and agro industry to feed its rapidly urbanizing population, which currently makes up just 26% of its total numbers. According to the Dairy Development Authority (DDA), the regulator of the sector, the country has seen the production volume of milk rise from 400 million litres in

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COUNTRY FOCUS: DAIRY INDUSTRY IN UGANDA

DAIRY PRODUCTS ON THE SHELF IN KAMPALA, UGANDA IN EARLY 2020. THE SECTOR'S GROWTH HAS BEEN PHENOMENAL

1986 to 2.51 billion litres in 2018, and further to 2.7 billion litres by the end of 2019. The DDA further adds that the value of marketed milk increased from US$784 million in 2017 to US$850 million in 2018. The sector has also increasingly become an important contributor to foreign exchange for the country, helping it on its balance of trade – the only country in East Africa to have a positive balance of trade in milk products. The authority reports that dairy exports increased from US$50 million in 2015 to about US$131.5 million in 2018, and $135.9 million in 2019, while imports stood at about US$5 million in 2018. The Minister of Agriculture Animal Industry and Fisheries (MAAIF) reports that the country’s large, medium, small scale and cottage dairy processing plants numbered 120 in 2017/18 with total processing capacity of 2.72 million litres, which rose marginally to 135 in 2019 with a processing capacity of 2.8 million litres a day, with the increment largely attributed to increased investments in cottage dairy processors across the country. According to the Ministry, the main products exported by

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Uganda’s dairy companies include casein, whey proteins, UHT and milk powder that are mainly exported to Eastern Africa, the COMESA and SADC trade blocks, UAE, Nigeria, Syria, Japan, Oman, USA, Nepal and Bangladesh. The future prospects for further growth in milk exports from Uganda, especially to its most important export market in the region, Kenya, was dealt a blow when Kenya formulated restrictive conditions in early 2020, that basically stopped any milk exports into the country from Uganda in order to protect its own industry that had been inundated with cheaper milk products. This put paid to Uganda’s erstwhile booming exports into Kenya that was at one time said to have hit 110 million litres by the third quarter of 2019. With a booming industry, the sector faces a challenging future, as new investments rise in the sector, while consumption lags below the booming milk production in the country. DDA figures show that the country’s milk per capita consumption hit 63 litres in 2018, way below the recommended quantities by the World Health Organization. The regulator says that it continues to prioritize milk

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consumption campaigns in an effort to have every Ugandan consume at least 200 litres of milk annually, per the WHO. INVESTMENTS THRIVE According to the DDA, Uganda offers a compelling case for new investments and product diversification for local, regional and international markets, better than any other country in Eastern Africa due to the increasing quantities of milk and the opportunity to export milk products into potential markets in the EAC and COMESA, to which the country is a member, and into Southern and Western Africa and internationally. The authority reveals that the substantial increase in milk production and productivity in the country are calling for more investments in cold chain infrastructure, milk collection and bulking centres, milk transportation and processing facilities to reduce post-harvest losses and boost incomes and economy of the country. With about 80% of the total milk produced marketed but only 33 % of the marketed milk processed into value added products, the DDA is seeking investors to pump in the cash to improve this figure to at least 50% - and the investments are flowing in. Following the liberalization of the dairy sector, which began with the privatisation of the once governmentowned monopoly Uganda Dairy Corporation in 2004, when Agriculture & Livestock bought a stake in the dairy processor, the dairy industry in Uganda has seen frenetic growth, with the decade starting 2010 being the most dramatic. Over the space of only a decade, Uganda came from a country dependent on imported milk from mainly Kenya, to a surplus, as the decade ushered in a surge in local, regional and international players into the sector. Most of the leading dairy companies in Uganda – including Pearl (of the Lato brand), Jesa, Brookside Uganda, Amos, GBK, Paramount, Lakeside and Vital Tomosi have been in existence for less than 10 years, and yet they continue to invest aggressively to improve capacity and boost efficiencies. The dairy sector has seen two key entrants in the last few years, with leading Kenyan dairy Brookside acquiring the stake previously held by Sameer Agriculture and Livestock to create Brookside Uganda and Vital Tomosi, which produces the Milkman brand and is a joint venture by the founding Tomosi family and the Vital Capital Fund, a US$350 million private equity fund that makes impact investments in developing nations, primarily in Sub-Saharan Africa. Two major players, Amos dairies, which processes more than 300,000 litres of milk per day to produce high value casein for the export market and Pearl Dairy, with a capacity of 800,000 litres per day, and which produces milk powder, yoghurt, butter, ghee and UHT milk, have revolutionised the dairy sector in Uganda, and have been largely responsible for the surge in export volumes into the regional and international markets.

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And it is not only the Vital Capital Fund that has invested in the sector. The Rise Fund, a global impact investment fund managed by American private equity firm, TPG Capital acquired a reported 34% stake in Pearl Dairy in 2019 to enable the dairy processor expand and enhance its operations, in addition to an earlier investment by the IFC in the firm. Jesa Dairy, one of the pioneer dairy processors in the country, is building a new, bigger 2,700m2 plant that will be ready in 2021 near Kampala, to boost its production capacity. As older players continue to invest in the sector, smaller ones including the likes of Rainbow Industries, GBK Dairy,

KEY NUMBERS

63

ESTIMATED MILK CONSUMPTION PER CAPITA PER YEAR IN UGANDA, WAY BELOW THE RECOMMENDED 200 LITRES PER YEAR

Kooky Enterprises, Paramount Dairies, Mama Omulungi Dairy Limited and scores of others are also contributing to the country’s quest to be self reliant and to supply the regional markets with its milk products. PRODUCT INNOVATIONS INTENSIFY As investments surge, the pace of new product innovations has also increased in tandem, to meet changing consumer needs and aspirations. In the fermented milk category, the Ugandan consumer was very comfortable with traditionally fermented milk packaged in loose plastic bags for a long time, but this is changing, albeit slowly. Flavoured and fruit yoghurt variants, with the latest cup packaging and branding are increasingly hogging the shelves in the country’s informal and formal retail shops as consumer wants and experiences move up the scale. Brookside Uganda, Jesa, Vital Tomosi and Pearl Dairy are leading the charge, introducing an array of flavor options that the Ugandan consumer was used to finding in Kenyan shelves, whenever they travelled to their neighbouring country. In the packaged milk category, UHT milk products have increasingly become the norm, considering the huge infrastructural challenges and the need to access markets far away from the processing plants within the country and in the regional markets of Eastern Africa. Higher value products such as cheese and ice cream, although increasing in popularity, are still small in comparison with packaged milk and fermented products. However,

JAN/FEB 2021 | FOOD BUSINESS AFRICA

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KENYA

Fresh Produce & Grocery EXPO 15+

SPECIALTY & COUNTRY PAVILLIONS

0+ 500 S NDEE

ATTE A AFRIC FROM ORLD W & THE

1000+

PROD UCTS & SOLU T FROM IONS AF & BEY RICA OND

The Kenya Fresh Produce & Grocery Expo showcases the most innovative fresh produce, meat and savoury and condiments products inluding: Fresh and packaged fruits and vegetables • Fresh and packaged herbs and spices • Ready meals and other hot meals • Savoury and condiment products including jams, marmalades, sauces, ketchups, chutneys, peanut butter etc • Retailers, Distributors & Vendors of Fresh Produce & Grocery products.

DECEMBER 2-4, 2021

SARIT EXPO CENTRE, NAIROBI, KENYA A SPECIAL PAVILLION AT:

Afmass FOODEXPO

COUNTRY FOCUS: DAIRY INDUSTRY IN UGANDA

Uganda’s dairy sector is a leader in the milk powder and casein production, with Amos Dairy and Pearl Dairy producing vast quantities per year for regional, and importantly, international markets. EXPORT MARKETS KEY TO FUTURE The dairy industry in Uganda has undergone one of the fastest transformations that the food industry in Eastern Africa has ever witnessed – and the future can only get better, but the lack of adequate local market for its vast potential is standing on the way of the sector’s continued growth. Talking at the end of the hotly contested presidential elections that were held in early 2021 on the status of the economy, the country’s President Kaguta Museveni decried the lack of adequate purchasing power in Uganda, citing the dairy sector as one that could do better if more Ugandans were capable of spending more on the purchasing of processed milk. In this regard, the regional markets within the East African community, including Kenya, where milk production can barely meet demand and consumer prices are high, are the best options if Uganda is to boost milk processing and consumption – in addition to international markets. The country’s leading dairy operator Pearl Dairy has taken the initiative to broaden its markets following the passing of the Africa Continental Free Trade Area (AfCFTA) agreement, which is in force across the Continent. The company in August 2020 announced the expansion of its yoghurt and milk powder products into the markets of Ethiopia, Malawi and South Sudan, following the ratification of the trade deal, the biggest and most comprehensive in Africa’s trade history – expanding its markets into eight countries, with Algeria the next in line on its potential markets in Africa. “With the opening up of new markets, farmers in Uganda have been provided with a bigger outlet for their milk and this creates more opportunities for them. This expansion presents a great boost to the entire dairy value chain in Uganda considering the current situation in the sector,” said Bijoy Varghese, the Pearl Dairy Farms General Manager. “With a strong backward integration program, based out of Mbarara, we are aligning with more and more farmers to fulfill the current and future demand. These opportunities will lead to the creation of jobs and better the livelihoods of the local farmers due to increased demand in exports,” Varghese added. As milk production in Uganda is forecasted to continue to increase, following initiatives such as Pearl Dairy Farmers Project, undertaken in partenership with the IFC to boost dairy production in Uganda; plus the rapid commercialization of farming in the country’s main milk belt in the western region. East Africa’s largest dairy exporter is at the forefront of revolutionizing the milk sector in Africa and beyond in the near future. FBA

The Future of Food in Africa

WWW.AFMASS.COM/KENYA 76 JAN/FEB 2021 | FOOD BUSINESS AFRICA

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BeverageTECH TRENDS IN FORMULATING, PROCESSING, PACKAGING & CONSUMPTION OF BEVERAGE PRODUCTS

Sustainability and Health Concerns Drive Innovations in Fruit Juice Processing

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By Paul Ongeto

ruit juice is as bad as soda’. ‘Cutting a glass of juice a day sharply reduces diabetes risk’. ‘Fruit juices linked to cancer’. These and other negative headlines have hit fruit juice producers almost weekly over the past decade – and consumers have noticed. The fruit juice industry today is grappling with reduced consumer demand in key markets as more and more people replace the drink with other alternatives perceived as superior in nutrition and functionality. According to data from the US Department of Agriculture (USDA), the average American is currently drinking about half what they drank when the industry hit its US peak in the late 1990s. The situation is being replicated in Europe, with consumption in Western Europe also flat lining, according to data from Statista. FOODBUSINESSAFRICA.COM

The decline in sales is a sign that the fruit juice industry is in urgent need of innovation and fruit processors from different parts of the World have answered the clarion call. What we see today is a number of innovations designed to meet consumer demand for healthier and suitable fruit juices. The following are some of the top trends affecting fruit juice processing globally. REDUCTION OF SUGAR IN FRUIT JUICES One of the main reasons some people consider fruit juice as unhealthy as sugary soda is the high amount of sugar contained in these beverages. Research consistently shows a link between sugary drinks and a higher risk of illness, such as Type 2 Diabetes. “It’s a big problem. Consumption has faced a ten-year decline in the US and JAN/FEB 2021 | FOOD BUSINESS AFRICA

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BEVERAGE TECH AFRICA: JUICE TECHNOLOGY

THE COMPANY'S NEW RANGE OF PRODUCTS INCLUDE SNACKS & TOMATO PASTE, KETCHUP AND JAMS & MARMALADES

Europe, probably due to the sugar issue,” says John Collins, Executive Director of the International Fruit & Vegetable Juice Association. To address this concern, a growing number of fruit juice brands are adopting natural sweeteners like stevia, mangosteen and honey to replace sucrose, or extracting juice from low-sugar fruits and vegetables. US-based Ocean Spray Cranberries Inc., has, for instance, introduced three new unsweetened juices in its Ocean Spray Pure Fruit Juice portfolio. Harvest Hill Beverages Co. and Chicagobased Tampico Beverages are other leading US brands that have aligned their products with consumer demands, CONSUMERS PREFER FOOD AND BEVERAGES THAT ARE PERCEIVED TO BE CLEAN. AS A RESULT, MOST FRUIT JUICE INNOVATIONS TODAY AVOID USING CHEMICAL-SOUNDING ADDITIVES OR ANY INGREDIENT PERCEIVED AS ARTIFICIAL, IN AN EFFORT TO MAKE THEIR JUICES AS “CLEAN” AS POSSIBLE.

introducing new products that serve as alternative for those looking to limit their sugar intake. Leading South African fruit juice-company Ceres has ensured that its consumers are informed of the fact that its range of juices have no additional sugar added, to allay fears of the sugar burden. This trend is expected to continue as consumers drop high sugar products in favour of more functional and healthy products. As regulators around the world

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implement various legislations to tax sugary beverages, fruit juice manufacturers will have no option but to replace them with low sugar alternatives. Europe has already led the waywith new taxes specifically designed to make sugary drinks unattractive to both consumers and producers. PRODUCTION OF CLEAN LABEL FRUIT JUICES According to a report by US-based food research firm NMI, consumers prefer food and beverages that are perceived to be clean, as one of the ways to achieve a healthy and balanced lifestyle. As a result, most fruit juice innovations today avoid using chemical-sounding additives or any ingredient perceived as artificial, in an effort to make their juices as “clean” as possible. In its recent product innovations, Ocean Spray Cranberries Inc. was careful to make its new fruit juices as clean as possible. All its recent products, which include Ocean Spray Pure Cranberry, Pure Tart Cherry, Pure White Grapefruit, and Pure Concord Grape, contain no added sugars, no artificial flavors, no preservatives, and are nonGMO. Producing clean label juices is however not enough; this trend also requires manufactures to be more transparent in their labelling. Maryellen Molyneaux, Managing Partner at NMI says that consumers of today are savvy label readers and are increasingly looking for more pure and simple food products with cleaner labels and ingredients. To avoid having their products rejected by consumers, manufacturers today have had to clearly communicate that their product is a clean label drink and go an extra mile

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of listing the ingredients in simple common names that average consumers can recognize and understand. VEGETABLE JUICE BECOMES A TREND For a long time, vegetable juice stood at an inferior position due to its poor taste. As consumers become more conscious of their health, taste has lost its position as the major determinant of consumer acceptability. Nutritional content, which previously played a second role, is now increasingly becoming the most important attribute sought for by consumers. Vegetable juices, being high in nutrition and low in sugars, have gained popularity and as a result more vegetable juices are coming into the market. From USA to Europe and Asia, vegetable juices MANUFACTURERS HAVE PARTICULARLY SOUGHT INGREDIENTS WITH ABUNDANT NUTRITION AND ANTI-OXIDANT PROPERTIES TO GIVE THEIR FRUIT JUICES A HEALTHY TWIST. THIS IS EXPECTED TO CONTINUE AS MORE PROCESSORS SEEK TO INTRODUCE MORE FUNCTIONAL INGREDIENTS TO THEIR BEVERAGES. are growing in popularity at a time when the conventional fruit juice market is facing contraction. According to a research by Research and Markets, the global vegetable juice market grew at a compounded annual growth rate (CAGR) of 2.9% in 2020 to reach a total market value of $35.1 billion by the close of the analysis

FOODBUSINESSAFRICA.COM

KEY NUMBERS

US$35.1B

PROJECTED VALUE OF GLOBAL VEGETABLE JUICE MARKET IN 2020 BY RESEARCH & MARKETS

period. USA, Canada, Japan, China and Europe were the major drivers of the growth, accounting for a combined market value of US$28.8 Billion. NEW FLAVOURS, INGREDIENTS AND TEXTURES To save the fruit juice market from further decline, processors have also turned to new flavours, ingredients, and textures to rejig their fruit juice brands. Manufacturers have particularly sought ingredients with abundant nutrition and anti-oxidant properties to give their fruit juices a healthy twist. Cranberries, yacon, Acai berry, and medlar are some of the ingredients that are in vogue today, according to research by Tico - a Chinese supplier of food processing machinery. This trend is expected to continue as more processors seek to introduce more functional ingredients to their beverages. Fermentation of fruit juices to bring new textures is also rapidly gaining popularity among fruit juice processors. Fermentation brings along a lot of probiotics, which are

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BEVERAGE TECH AFRICA: JUICE TECHNOLOGY

beneficial to our intestine and immunity. Furthermore, antibacterial substances generated in the process can help extend the product’s shelf life. According to Tico, fruit juice processors are turning into fermentation as way of not only introducing new textures but also making their drinks more functional and nutritious. NFC AND COLD-PRESSED JUICE GAIN POPULARITY Most fresh juice products in the market are made from reconstituted juice, made by adding water, sugar and preservatives to concentrated juice. Shifting preferences in favour of things that are natural has however made those with minimal additional processing popular. Consumers prefer these drinks popularly known as NFC (Not From Concentrate) juices due to the minimal processing involved and their superior quality in terms of freshness and taste. Unlike concentrate juices, which have been mostly declining, the NFC juice market is expected to grow at a CAGR of 5% to reach a market value of US$13.5 billion in 2025. Apart from fuelling a rise in NFC juices, the clamour for what is natural and clean has also resulted in the popularity of cold pressed juices. Cold-pressed juices are not subject to heat during preparation. As a result, they do not lose nutrients and are rich in vitamins, minerals, and other nutrients. This has made these juices popular among health conscious individuals. According to a recently concluded research, the global cold-pressed juices market is poised to grow at a CAGR of 8% to reach a market value of USD 275.5 million in 2023. SUSTAINABILITY TAKES CENTRE STAGE As the world grapples with the effects of climate change, fruit juice processors being among the biggest consumers of water are increasingly embracing sustainability in their production processes. New technologies to optimise water use and treat wastewater appropriately are being embraced to preserve this precious commodity. JUICE PRODUCTS WILL NO LONGER BE SEEN AS REFRESHMENTS TAKEN TO QUENCH THIRSTS OR EXCITE TASTE BUDS WITH SWEETNESS. THEY WANT THE DRINK TO NOT ONLY REFRESH BUT ALSO NOURISH THEIR BODIES. THE JUICE ALSO NEEDS TO BE SUSTAINABLY PRODUCED AND PROCESSED WITH MINIMAL IMPACT ON THE ENVIRONMENT. “Several of our member companies are replenishing a significant percentage of the water they use – some are achieving up to 100%,” says John Collins, Executive Director of the International Fruit & Vegetable Juice Association. Gaurav Dutt, Global Business Insights and Analytics Manager at Tetra Pak, says that sustainability is

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KEY NUMBERS

US$13.5B

PROJECETD MARKET VALUE OF NOT FROM CONCENTRATE MARKET BY VALUE IN 2025 ACROSS THE WORLD, GROWING AT CAGR OF 5%

so important that “if, as a manufacturer, you're not doing something about it, you're not seen doing something about it, you are not in the good books of consumers. And it can have a significant impact on how you are able to operate in the markets tomorrow.” Most fruit is produced in the tropics, far from the biggest markets in Europe and US. The perceived food miles on fruits’ total carbon footprint have also had an impact on how fruit juice is produced. Most consumers particularly in the US and Europe are now preferring juice that is 100% produced locally, to cut down on the carbon footprint of the drinks that they enjoy. Demand for locally produced juices has led to the sprouting of glass farms growing fruits across Europe and in some parts of the United States. Tetra Pak, however, notes that the notion that locally produced have less carbon foot print than imported ones is misguided, particularly where fruit is grown under warehouses. The company says that fruits and vegetables grown under glass in Europe and then consumed there often have a larger carbon footprint than those grown in the tropics and imported by sea. This shows that consumer perception is strong enough to impact food processing even when it is not based on facts. HEALTH AND SUSTAINABILITY KEY Moving into the future, juice products will no longer be seen as refreshments taken to quench thirsts or excite taste buds with sweetness. Consumers want more than just refreshment. They want the drink to not only refresh but also nourish their bodies. The demands go further; the juice also needs to be sustainably produced and processed with minimal impact on the environment. The lack of alignment to these demands of the 21st century consumers led to the fruit juice industry to experience a market contraction. Gaurav Dutt, however, believes that juice producers are already on the way to finding an answer to the growth problem. “In the coming three years, we forecast that we will see growth coming in from an overall perspective, with a compound annual growth rate of, let’s say, between 1% to 2% globally,” Dutt predicts. FBA

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Sustainable Packaging takes a big leap forward in 2020 By Paul Ongeto

Plastic packaging has gone a full circle: from the early days when it revolutionised food packaging, to the pariah it has become.

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hen Ralph Wiley of Dow Chemical accidentally discovered plastics back in 1933, nobody had an idea what impact this novel material would have on the packaging industry. This cheap to produce, light weight and highly flexible material with good barrier properties turned out to be what food producers had been looking for. Almost 90 years later, people have discovered its adverse effects far outweigh its advantages. Plastic takes years to degrade, has a huge carbon footprint and due to poor handling, it has found itself in almost all major water bodies, adversely affecting millions of aquatic animals. Today, plastics are no longer held in high esteem and food processors both large and small are constantly innovating to find a more sustainable way of packaging their products. Below are some of the major sustainable packaging trends that are shaping food industry today, and which made the headlines in 2020:

FOODBUSINESSAFRICA.COM

TREND I: RISE OF PAPER AS AN ALTERNATIVE TO PLASTICS As plastic loses favour among consumers, paper is increasingly becoming popular as an environmentally friendly alternative. A European consumer preferences survey, commissioned by Two Sides in 2020, concluded that 62% of consumers see paper and cardboard packaging as better for the environment. Paper’s weak barrier properties rendered it unsuitable for many food packaging operations for decades. Disruptive food packaging companies are however using advanced technology to overcome its limitations, consequently creating newer packages that have potential to replace a huge number of plastic packaging. One such company is Pacobo, which is creating paper bottles for food beverage companies. Last year, a number of leading brands including Absolut Vodka, Johnny Walker,

JAN/FEB 2021 | FOOD BUSINESS AFRICA

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BEVERAGE TECH AFRICA: SUSTAINABLE PACKAGING

RECYCLING HAS BEEN TOUTED AS THE MOST VIABLE SOLUTION TO PACKAGING. TO BE RECYCLED, POST-CONSUMER PACKAGING HAS TO MEET SEPARABILITY, CLEANLINESS, LABELLING AND COLORATION REQUIREMENTS THAT HAVE LED MANUFACTURERS TO DESIGN THEIR PACKAGES WITH A RECYCLING END IN MIND and Coca-Cola expressed interest to use some of Pacobo’s paper bottles in their product lines. In January 2021, Absolut launched its paper bottle prototype in the UK and Sweden, signalling a new era of paper as an alternative packaging for the beverage industry. Away from beverages, Nestlé made global headlines in 2019 when the company launched its snack bar Yes! advertised as “carefully wrapped in paper” in a bid to provide more plastic-free products. This move has already prompted competitors, such as Mondelez and Unilever, to further invest in paper-based materials. TREND II: MANUFACTURERS EMBRACE “REDUCE, REUSE, RECYCLE” PRINCIPLE With increasing pressure from regulatory bodies, consumers, and environmental groups for food companies to do more to reduce their impact on the environment, manufactures are finding it more convenient to adopt the Reduce, Reuse, Recycle principle in packaging. Food companies are for instance designing packages for reuse. When food packages are reused, the amount of virgin resources used in production is significantly reduced. Reuse also reduces the chances of packages ending up in landfills or in oceans. The advantages of this approach have certainly attracted a number of food companies seeking to raise their sustainability clout. Last year, a number of companies including Italian chocolate manufacturer Ferrero and Swiss food manufacturing giant Nestlé introduced reusable jars for some of their popular brands. Apart from designing food products for re-use, companies are taking the step further to reduce the amount of material used to package food. Previously, a food product would come packaged in both primary and secondary packages. These created a lot of material that now needed to be disposed either through recycling or land filling. Having realized how wasteful this approach was, companies are now trying to use as little packaging as possible. Danish multinational brewing company Carlsberg is among the companies championing this trend. The company, in some of its markets, has abandoned the use of plastic rings and shrink wraps in packaging its beer and is instead opting to glue its multipacks. Carlsberg says that opting for glue cut the amount of plastic it uses by more than 75%. 82

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Recycling has been touted as the most viable solution to packaging. In order to be recycled, post-consumer packaging has to fulfil a list of requirements, including separability, cleanliness, labelling and coloration. These requirements have led manufacturers to design their packages with a recycling end in mind. As part of its World Without Waste strategy, The Coca‑Cola Company in 2020 moved away from its iconic green packaging for some of its products such as Krest and Sprite to “fresh, new clear PET plastic bottles” which are more easily recycled. Companies are also moving away from composite packages, which are difficult to separate or create impurities during recycling. In their place, mono-materials, which make collection, sorting and recycling more efficient are now being used. A good example is German company Frucht Bar’ which has since ditched composite packaging and is using a 100%-recyclable monolayer pouch for its baby food pouches. TREND III: ALUMINIUM CANS EDGE OUT PLASTIC AND GLASS BOTTLES Aluminium being a strong, lightweight, and highly recyclable material has presented itself as a suitable alternative to the increasingly unpopular plastic. Prior to the pandemic, a rising trend of beverage manufactures ditching plastic and glass for aluminium

THE DEMAND FOR CANS HAS SKYROCKETED WITH THE COVID-19 PANDEMIC

cans had already started. In 2019, leading US beverage company Molson Coors announced that it would begin

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selling three of its biggest beer brands in aluminium bottles. In the same year, Coca-Cola also announced that it would start packing its Dasani water brand into aluminium cans. The Covid-19 pandemic however quickened the growth of the aluminium can market much faster than industry leaders had projected. Consumers preferred canned beverages as they were more convenient take-away options, catalysing an unforeseen demand for cans in the beverage industry. For the first time in many years, there was a shortage of aluminium cans that was so severe some companies such as Molson Coors, Brooklyn Brewery, and Karl Strauss had to suspend production of some of their brands due to lack of enough cans. In response to this, aluminium can manufacturers including Ball Corp and Japan’s Showa Denko have made substantial investments in manufacturing capacities to ramp up production. In its recent investment announcement, the world’s largest brewer AB InBev announced plans to invest about US$100 million in expanding its aluminium manufacturing capacity in the United States. The unprecedented interest in aluminium cans is expected to continue into the future. According to imac Group, the aluminium can market reached a value of US$ 45.51 Billion in 2020 and is projected to is projected to grow further at a CAGR of 4% to reach a market value of US$ 56 billion by the end of 2024. TREND IV: BIOPLASTICS CONSIDERED A LESSER EVIL Bioplastics are plastic materials produced from renewable biomass sources, such as vegetable fats and oils, corn starch, straw, woodchips, sawdust, recycled food waste. Being made from renewable biomasses, they are considered a lesser evil as they are not produced using fossil fuels. Most people even equate bioplastics with biodegradability or compostability. This is however not true, as some bioplastics have the same impact on the environment as other plastics do. Regardless, their good social social standing has propelled the growth of bioplastics, with analysts at Grand Review Research projecting that the global bioplastics market is projected to grow at a CAGR of 16.1% to reach a market value of US$26 billion in 2020. Concern on the impact of bioplastics on the environment has led to the growth of a sub-sector called biodegradable bioplastics, which is expected to grow at a CAGR of 11.5% to reach a market value of US$3.5 billion by 2022, according to a research by Global Information Inc. The trend of bioplastics goes further. Sophie Kieselbach an analyst at Sphera believes that bioplastics may not be a lesser evil after all. According to her, an ingested bioplastic bag may still choke whales and other marine life and using them might only shift the environmental burden by reducing the carbon footprint while increasing acidification, the water footprint or other environmental impacts.

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To address her concern, which is equally shared by many environmentalists, food packaging manufacturers MOVING AWAY FROM THE TRADITIONAL USE OF DAIRY MILK AS A BASE FOR MAKING YOGURT, A SIGNIFICANT SHIFT HAS BEEN WITNESSED WITH THE RISING PRODUCTION OF NON-DAIRY DRINKABLE YOGURT AIMED TO INCREASE THE MARKET PENETRATION, PARTICULARLY AMONG THE GROWING VEGAN POPULATION. are now working to develop edible packaging: something that fish or any other aquatic animal can actually feed on. Working with its packaging suppliers, SaltWater brewery in the USA is among the pioneers of edible packaging. The company currently uses an edible packaging ring on its six-pack beer cans and says if the ring was to find itself in the ocean, then fish, birds, turtles, and whales can that day enjoy their dinner. TREND V: REGULATORS INCREASE PRESSURE ON FOOD MANUFACTURES Moving into 2021 and beyond, the food packaging scene will be heavily regulated with governments across the world enacting legislations to promote sustainable packaging. The European Union is for instance passing regulations faster than usual, including regulations to increase recycling rates and recycled content and laws to reduce single-use plastics. Member states of the Union have already agreed that all plastic packaging in their jurisdictions will have to be recyclable or reusable by 2030. Other countries across the globe including China, Australia, Unites States, and India are also following suit, enacting legislations aimed at curtailing the use of unsustainable packaging. As a result, manufacturers are rushing to reach their own quotas and targets. The consequence of this can only be greater innovations in food packaging. But even as many innovations come about, recycling and a circular economy are believed to be the only way of achieving sustainable packaging. In the words of Jim Robbins, a veteran journalist and environment activist, “the solution to plastic waste mainly lies in overhauling the world’s economy to recycle far-greater quantities of plastic than currently are being reused.” Ramani Narayan of Michigan State University School of Packaging adds, “The pop bottle of the future will still be the current PET bottle. It does a great job. But we need the ability to collect it, recycle it, and recycle it. That is the future.” FBA

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KNOWING YOUR OMEGA-3 SOURCE, EFFICACY & QUALITY Omega-3s are once again a hot topic in the media and market shelves are full of omega-3 products. Is that justified? Is it really that important for pregnant women, children and adults to eat fish, omega-3s or DHA? And what’s the difference? For consumers, it does not seem easy to make a decision. The All-Important Omega-3s Let’s take a closer look at the “Omega-3 story”. Since the 1970s, scientists all over the world have taken a keen interest in the role of omega-3 fatty acids in human health. These nutrients are now among the most studied. Research has largely reported that omega-3s are of high importance for the human body – all cells depend on them throughout life. It starts with the conception phase, pregnancy and childhood, and continues until old age, where they are required for the development and maintenance of body functions. While the brain and eyes are particularly dependent on a sufficient supply of omega-3s, consuming enough of these nutrients also helps to prevent and/or ameliorate common diseases such as cardiovascular disease, metabolic diseases, cognitive and psychological disorders, inflammatory diseases and even infertility.

Deep Diving into the Omega-3s There are three major omega-3 fatty acids in the diet that are involved in human physiology – namely alpha-linolenic acid (ALA), the longer-chain omega-3s eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA). ALA is an essential nutrient and the human body depends on dietary intake, e.g. from plant oils. ALA is the precursor to EPA and DHA formation in humans. However, since human production of EPA and DHA is inefficient and dependent on diet composition, intake of preformed EPA and DHA has become crucial. These two do only occur in marine foods like salmon, other fatty fish or seafood. Usually fatty acids serve as a source of energy and as building blocks for the body’s fat stores. However, EPA and DHA are unique as they have specific functions within the body. They are components of cell membranes where they have bioactive functions, are required for cellular signaling pathways and gene activation; and they modulate anti-inflammatory cascades. In short, omega3s influence the proper functioning of every single cell in the human body and consequently have a major impact on development, health and diseases. The average intake of omega-3s varies across cultures, countries and regions of countries, depending on the diet and amount of marine foods consumed. The

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recommendations for omega-3 intake tend to vary as well. Scientists and authorities including the FAO/WHO Expert Consultation (2010), American Heart Association (2011), European Food Safety Authority (2010) and the Heart Foundation Australia (2008) have strongly advised consuming omega-3s. The American Academy of Nutrition and Dietetics recommends an intake of 500 mg of EPA + DHA/day, while the Japanese Ministry of Health, Labour and Welfare (2010) recommends at least 1000 mg per day of EPA and DHA, but ideally much higher values for the general adult population (1800 mg for women and 2200 mg of EPA and DHA combined per day for men). For the management of cardiovascular risk factors in patients, such as lowering high triglyceride levels, intake of 2000 mg up to 4000 mg of EPA + DHA per day has become a medical practice.

Getting the Balance Right Consuming less omega-6 fatty acids and more omega-3 fatty acids is a common guideline because it is important to keep the right balance of these antagonistic players in the human body. An excessively high ratio of omega6s versus omega-3s, as found in a typical Western diet, promotes the development of diseases, whereas a low omega-6s versus omega-3s ratio has beneficial effects. High consumption of common vegetable oils and meats (rich in omega-6s) and low intake of marine foods (rich in omega-3s) increases the ratio, which should ideally be 1/5-10. Nations that consume a lot of fish and seafood, like Japan, are able to achieve this. Western diets have been shown to contain as much as 10-30 times more

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omega-6s than omega-3s, thus throwing the ideal ratio off-balance and allowing more omega-6s to crowd out omega-3s in our cells.

getting enough DHA is of utmost importance.

EPA Vs DHA: Each Provides Specific Benefits

Selecting a high-quality omega-3 source and preserving freshness is critical to ensure that uncompromised omega-3 reaches the consumer. In a recent article published by Scientific Reports (January 2015), researchers found that fish oil supplements in New Zealand were highly oxidized and most did not meet the label content of omega-3s. Only 3 out of 32 fish oil supplements surveyed contained the quantities of EPA and DHA that were equal to or higher than the labelled content, with most of the products tested containing less than 67%. To ensure optimal freshness, fresh raw material with minimum odor and oxidation needs to be carefully selected. Proper handling must be applied to avoid oxidation later on in the production process. The finished product should also be dried in low light and packed in light-impermeable final packaging to ensure that freshness is preserved from start to finish. For dietary supplements, BASF produces very high concentrates of DHA and EPA using a special process to reduce saturated fat to less than 1% in the finished product, compared to standard natural fish oil which comprises nearly 30% saturated fat. What this means for the consumer is simply this – better quality fish oils lead to less unwanted fats and better taste, while also allowing higher dosages, thus requiring fewer capsules to be consumed. Smaller capsules make ease of swallowing an added convenience for consumers.

Consuming DHA and EPA, either from marine foods, from dietary supplements or DHA-fortified foods, has been advised for good reasons. EPA is important for heart function, as it helps regulate blood pressure and heart rate. It is also vital for the brain where it influences serotonin release and thereby mood control. Most prominently, EPA is a key inhibitor of inflammation, ameliorating eczema, arthritis, asthma and chronic obstructive pulmonary disease. DHA is the building block of membranes in all cells, keeping them functional. The brain and eye particularly accumulate DHA where it influences the production of neuro-transmitters and thereby safeguards cognitive and visual function. For example, DHA controls serotonin action in the brain and together with EPA regulates mood and related disorders like depression, anxiety and impulsive behavior. Throughout life, DHA improves cognitive function: in a child’s brain development phase, during adulthood and in seniors where it lowers the risk of dementia and Alzheimer’s disease.

Preformed DHA - Underestimated during Pregnancy? Pregnant women should take good care of their DHA intake. Before and after birth, DHA accumulates in the brain. Maternal stores provide the developing baby with the DHA necessary for brain development and, after birth, they continue to consume DHA from their mother via breast milk. If the mother does not have enough DHA stores and does not consume adequate amounts of preformed DHA in her diet, the baby will not get enough for proper development and both mother and child will be malnourished. Apart from better child development, good DHA status during pregnancy has also been associated with reduced preterm births and a lower risk of anxiety disorders during pregnancy as well as postpartum depression. Pregnant women are usually advised to avoid eating fish that may contain elevated levels of mercury and other pollutants. Therefore, pregnant women are likely to avoid eating fish altogether with the good intention of providing the best nutrition for their growing offspring. It is precisely during this period in the baby’s life that

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Source, Freshness and High Concentration Make a Difference

Making Decisions Based on Science Knowing all this, finding the right omega-3 product is easy: Firstly, it should contain DHA and EPA; secondly, it should come from a high-quality source and from a trustworthy supplier and finally, DHA and EPA should be as high in concentration as possible. The message to consumers is clear - the scientific evidence regarding the health benefits of omega-3s is overwhelming. Get the right product and take care of your health. BASF’s Omega-3s are from fish or algae sources suitable for vegan applications. For technical, application or commercial inquiries contact our BASF representative in your region or diana.wairimu@basf.com FOR MORE INFORMATION: https://www.basf.com/ global/en/products/segments/nutrition_and_care/ nutrition_and_health/omega-3.html JAN/FEB 2021 | FOOD BUSINESS AFRICA

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TRENDS IN FORMULATING, PROCESSING, PACKAGING & CONSUMPTION OF MILLED & BAKED GOODS AND ANIMAL FEED

Manufacturing high quality pet food to please even the most finicky consumer Source: GEA.com

P

et ownership is on the rise – and with it pet food sales. The tendency towards humanization means manufacturers must continually find a balance between pleasing owners and developing healthy foods for these furry friends. GEA technology is helping to bridge this gap, providing pets with the nutrients and foods they both need and enjoy. Dogs onboard the SS Normandie, a 1930s luxury French cruise liner, were offered a five-course menu, including a vegetarian option which their owners could choose for them. These pampered pets had their own private kennel, communal water fountain, fixed deck times, an onboard veterinarian and pet-sized life jackets. This historical factoid reveals an unchanging insight: that owners see their pets as one of the family and want what they define as the best for them when it comes to their health and wellbeing. What has changed: this sentiment and aspiration now extends well beyond the “leisure” classes given that companionship-seeking is on the rise

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and more people have access to disposable income. This is not only pushing up pet ownership but also the desire for high quality pet foods and snacks. LIFESTYLE CHANGES DRIVING GROWTH IN THE DYNAMIC PET FOOD INDUSTRY The growing trend towards the humanization of our pets – which simply means that owners see them more and more as human and not animals – is the greatest driving factor in the pet food industry, particularly in the emerging markets. Several key lifestyle and socioeconomic trends, which are expected to deepen, are encouraging pet ownership, such as: • longer life expectancy • delayed marriage & child rearing • reduced fertility rates • increased social atomization

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MILLING & BAKING AFRICA: PET FOOD

Long valued for the affection they happily give and receive, pets are contributing to peoples’ overall health, wellness and happiness – and in some cultures they even confer status. The extent to which pets have become so important is reflected, for example, in the number of cat cafés that have popped up – first in Asia and now around the world. In Taiwan, for instance, more single people are living in small apartments and unable to buy their own pets, escaping their solitary life by visiting cat cafés where they can enjoy giving and receiving a little affection while partaking of a coffee, tea or snack. Pet food sales have grown most in the emerging markets of Asia and Latin America in recent years. And around the world, small dogs are in particular demand, with a 25% rise in global population between 2013 and 2018. However, cats are becoming increasingly popular because busy, onthe-go lifestyles mean more people prefer to spend their spare time relaxing at home; and because felines are more independent and require less outdoor activity, they are a more practical choice for many. Fitting perfectly into these lifestyle changes is the greater availability of pet food sold online. Competitive pricing, loyalty discounts, free-shipping and delivery and personalization options, are a dream for pet owners, particularly those in urban areas. In the U.S., for example,

e-commerce for dog and cat food grew by 10% between 2016 and 2018. PET FOOD PRODUCT AND FORMAT TRENDS Pet owners’ preferences are diverse, however high-meat, high protein content options as well as single meat source and nutrient-dense choices are popular, as are ‘free-from’ assurances and clean-label products made from the finest quality ingredients, including human-grade pet food. The environmental footprint of products is another aspect consumers are keeping an eye on which is driving the use of alternative proteins, such as insects. The first

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insect-based dog food in the UK went on sale in early 2019, preceded by similar product launches in the U.S. and mainland Europe. Transparency and traceability are also greatly appreciated, particularly in the shadow of albeit rare, yet life-threatening contamination scares and recalls. According to Euromonitor International, producers should consider the following when developing pet food PET OWNERS ARE INCREASINGLY SCRUTINIZING LABELS TO ENSURE THEIR PET FOOD CHOICES ARE MEETING THEIR EXPECTATIONS FOR HIGH QUALITY AND FUNCTIONAL INGREDIENTS. AND YET, THEY OFTEN DO SO FILTERED THROUGH THE LENS OF THEIR OWN TASTES AND HEALTH SENSIBILITIES products: • Focus on innovations that entice pet owners • Increase product segmentation to cater to specific breeds, according to age and lifestyle • Move towards premiumization and the use of high quality products with functional ingredients that promote good health or boost energy • Link products to nationality/culture by using locallysourced ingredients • Introduce new textures and formats that are more lightly processed or natural Most pet food, including treats – particularly for dogs and cats – belong to one of three categories: wet, dry or raw. Meat, meat byproducts, cereals, grains, vitamins and minerals are the most common ingredients. Greater focus on pet health and wellness has resulted in explosion of new formats, such as: • Purees, liquids and pastes: allows pet owners to hand feed their pets to foster more intimacy • Soups and broths: appeal to fussy cats • Gently baked products: ideal for owners looking for more lightly processed and easy to digest options. Require longer cooking times but at lower temps • Cold-pressed: food is pressed and cooked quickly at a low temperature to preserve more nutrients. Provides pets with a raw and completely natural diet, and in a convenient dry food format • Freeze dried: moisture is removed from ingredients without the application of heat, preserving the most nutrients and qualifying it as raw pet food, in a convenient, dry format EFFICIENT GEA TECHNOLOGY FOR PRODUCING HIGH QUALITY PET CUISINE With more than 80 years of experience in the food processing industry, GEA offers efficient processes and technologies for both automated and batch pet food processing. Our human-grade food solutions support manufacturers

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PETFOOD, already at the ingredient level up to plant installation and includes technologies for dry, wet and raw pet food production, as well as packaging – ensuring products are attractive, have a long shelf life while minimizing transport costs. GEA meat preparation technologies prepare ingredients for wet, dry and raw pet food processing. We offer dedicated equipment for pre-crushing, grinding, mixing, batching, emulsifying, pumping and handling, as well as machines that combine cutting, mixing and emulsifying in one. In use since the 1950s, extrusion remains the most common production method of dry pet food, with products generally achieving a shelf-life of 10 to 12 months. GEA dry pet food capabilities (e.g. pillows, kibbles, dental sticks and biscuits) covers flour handling, as well as meat preparation and the entire extrusion process, encompassing drying, flavoring and cooling, as well as final product handling and packaging, including thermoforming and vertical form fill and seal equipment. In line with consumer demand for more lightly processed and natural pet food, freeze dried kibble, snacks and protein bars can be categorized as “raw pet food” given the temperature remains below 40 Celsius (100 degrees Fahrenheit). Freeze drying halts the biological action of decay, thus preserving more of the natural enzymes and vitamins in these foods. They also retain much of their original, uncooked appearance, making it not only an appealing but also a tasty and nutritious option for pets. Likewise, freeze dried foods are lightweight, have a long shelf life and can be stored at room temperature. Manufacturers can also add a “kill step,” known as high-pressure processing or high-pressure pasteurization (HPP), which some opt for, thus avoiding any issues with bacterial contamination. HUMANIZATION AND PET NUTRITION: FINDING A MIDDLE GROUND It is well-established that pet owners are increasingly scrutinizing labels to ensure their pet food choices are meeting their expectations for high quality and functional ingredients. And yet, they often do so filtered through the lens of their own tastes and health sensibilities. This can make it challenging for manufacturers to create clean label products that also have scientifically proven health benefits for pets. Since 2018, the Food and Drug Administration in the U.S., for example, has warned of a connection between heart disease and dogs that are fed grain-free diets. The focus, as most vets will agree, should be on whether or not a pet food product provides complete versus supplemental nutrition. As more scientific research becomes available, it stands to reason that pet owners will reach for products from brands that can back up their claims and products with scientifically-based studies on pet nutrition. FBA

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Africa indigenous fruit trees offer major benefits. But they’re being ignored By Adeyemi Oladapo Aremu and Abiodun Olusola Omotayo Abiodun Olusola Omotayo is a Post-Doctoral Research Fellow, North-West University and Adeyemi Oladapo Aremu is an Associate professor, North-West University

I

ndigenous fruits have been collected from the wild for centuries for human consumption and other purposes. Across the African continent, indigenous fruit trees are valuable assets for local communities. But the natural habitats of trees are being lost, mainly to widespread deforestation resulting from population growth. Industrial agriculture is also contributing to their loss. Indigenous fruit trees provide vital nutrients that may be scarce in other food sources. They are naturally adapted to local soils and climates, can enhance food and nutrition security and often adapt and survive environmental stresses better than exotic species. My colleague and I reviewed information on 10 fruit trees indigenous to Africa that are considered to be underused. We assessed their occurrence, distribution,

nutritional components and medicinal potential. We also explored their challenges and prospects. Get news that’s free, independent and based on evidence. GET NEWSLETTER Our research showed that indigenous fruit trees, which occur across different ecological zones in Africa, are rich sources of vitamins, minerals, protein and valuable phytochemicals. They also have recognised medicinal

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value and are used as therapeutic remedies by many people especially in rural areas with limited access to INDIGENOUS FRUIT TREES PROVIDE VITAL NUTRIENTS THAT MAY BE SCARCE IN OTHER FOOD SOURCES. THEY ARE NATURALLY ADAPTED TO LOCAL SOILS AND CLIMATES, CAN ENHANCE FOOD AND NUTRITION SECURITY AND OFTEN ADAPT AND SURVIVE ENVIRONMENTAL STRESSES BETTER THAN EXOTIC SPECIES.

orthodox health care. Based on our findings we recommended that the value chain of underutilised fruit trees should be increased. This could contribute to the livelihoods of smallholder farmers and other stakeholders. In addition a multidisciplinary approach is needed to provide incentives and encourage the domestication, commercialisation, and agro‐processing of fruit trees. OUR FINDINGS We conducted a literature search of African indigenous fruit trees considered to be underutilised. We then selected 10 underutilised African fruits based on absence of existing studies and their potential. Our study explained the diverse distribution and duration of fruiting of the 10 selected fruit trees in different regions of Africa. Examples in southern African and other tropical African countries included: • African baobab (Adansonia digitata L), • Transvaal red milk wood (Mimusops zeyheri Sond.), • Wild loquat (Uapaca kirkiana Mull.Arg.), • Kei-apple (Dovyalis caffra (Hook.f. & Harv.) Sim), and • Mobola plum (Parinari curatellifolia Planch.ex

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FOOD NUTRITION & HEALTH: FRUIT TREES

Benth.). In southern and west Africa we identified monkey orange (Strychnos spinosa Lam.) In the south of the Sahel-Savannah region across Africa, especially in West African countries, we identified the balanite (Balanites aegyptiaca (L.) Delile). The imbe (Garcinia livingstonei T. Anderson) is found in Uganda, the Kingdom of Eswatini (Swaziland), South Africa, Somalia, Angola and Congo. We also identified the marula (Sclerocarya birrea (A.Rich.) Hochst. subsp. caffra (Sond.) Kokwaro). This is found in Niger, Burkina Faso and Benin. Lastly, the wild medlar (Vangueria infausta Burch.) is found in Uganda, Kenya, Tanzania, Malawi, Mozambique, Zimbabwe, Namibia, Botswana, Eswatini and South Africa. The availability of fruits from these trees is guaranteed because of the different fruiting periods. This means they are able to meet the food and nutrition needs of the local communities.

Our study also reported a rich phytochemical and nutritional content across the selected trees. These included fibre, minerals, carbohydrates, organic acids, fats, proteins, iron, calcium, magnesium, sodium, zinc and vitamins. Many of the fruits contain wellknown phytochemicals. These included saponins, flavonoids, alkaloids, tannins, cardiac glycosides, terpenes, anthraquinones and phenolics. Examples of the biological activities demonstrated by fruit trees were anti-oxidant, anti-microbial and anti-inflammatory activities. Based on our findings, there is still a scarcity of research investment and development for the improvement of underutilised fruit trees in Africa. Many still only grow in the wild. This limits their potential for higher yield and growth. Other challenges identified were the inadequate baseline data on the nutritional properties, lowlevel acceptability and accessibility.

Indiscriminate and illegal use of the trees is also a problem. WHAT WE RECOMMEND Africa’s key to future food-nutrition security may depend on the untapped potential of indigenous fruit trees. Particularly, the rich nutritional composition of indigenous fruits revealed a potential contribution to human diet. We argue that exploring the potential of these indigenous fruit trees in a holistic manner is a good starting point. This should include the domestication of indigenous fruit trees in Africa. This would ensure a steady supply of fruit, nutrients and associated products. This, in turn, would have a positive impact on the economic and health sectors in the region. The future of the 10 selected indigenous fruit trees is promising for Africa provided the co‐operation of different stakeholders is secured. FBA

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FOOD BUSINESS AFRICA TOP 100TM

100 TOP AFRICAN FOOD COMPANIES

2020 INSIDE ABOUT THIS LISTING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 THE LISTING . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 HIGHLIGHT: FLOUR MILLS OF NIGERIA . . . . . . . . . . . . . . . . . . . . . 109 HIGHLIGHT: HEINEKEN BREWERIES ETHIOPIA SC . . . . . . . . . . 112


COVER STORY: FOOD BUSINESS AFRICA TOP 100

100 FOOD BUSINESS AFRICA TOP 100TM

TOP AFRICAN FOOD COMPANIES

2020

ABOUT THIS LISTING

Food Industry in Africa: Celebrating An Industry in Transformation By Francis Juma

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T

he food industry in the continent of Africa is on a long journey of transformation. A transformation that pits local startups against medium scale family groups, regional giants and conglomerates and last but not least, international behemoths that call Africa home, and which continue to vote with their top dollars on a continent that they do believe, is the future of their ambitions. The Food Business Africa Top 100TM is a biennual listing of some of Africa's leading food, beverage and milling companies - the first such listing by any publication. Brought to you by the team at FW Africa, the publishers of Africa's No.1 Food, Beverage & Milling Industry magazine Food Business Africa, the Food Business Africa Top 100TM is a celebration and acknowledgment of the huge progress and revolution of the food industry in Africa. It celebrates resilience, innovation and impact of the vital food industry in the world's last frontier. Every two years, our editors have committed to avail this listing in this publication for our readers to have their say as well, in what they do think are some of the companies that are moving the needle of Africa food industry's progress. The listing's key consideration criteria for a company to make it to the listing includes industry leadership, innovation and sustainability. From FOODBUSINESSAFRICA.COM


our own perspectives, the companies on this list have had the most positive impact on the food industry in Africa in the last 1-3 years - and we do know that we may be wrong in some few cases, but we stand by our perspective. An industry revolutionised in two decades The very fact that this listing is possible in 2021 is in itself a testimony to the growth and transformation of the food industry in our Continent! If we are take a journey back to the year 2000, at the turn of the millenium - and when yours truly was just a young food scientist joining the industry from the university - I doubt if we could have managed to put together a Top 100 listing of Africa's food industry, and in the scale and diversity we have witnessed as I and my team of editors pored over websites and company reports to come up with this listing. It is interesting to note that a substantial number of companies on this list did not even exist in 2000 - or were at the basic formative stages of their journey. Over the past two decades, not only have we seen the the African entrepreneural spirit come into the fore, with local businessmen investing in food companies, but we have also seen

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the entry of more international giants from Europe, Americas and Asia into the continent's food industry, investing billions of dollars in the process in the local agricultural value chains, production plants and into the supply chain. Gone are the days when the likes of Coca-Cola, PepsiCo, Nestle, Unilever, Diageo and Heineken were the only major international players in Africa. Others like FrieslandCampina, Kellogg, Danone, AB InBev, among many others have followed suit. But the story of the African food industry can no longer be talked about by just listing the multnationals. The majority of the companies on our list are younger than 30 years and are familyowned local businesses that have grown and created the space in their own right and deserve the accolades that come with this listing. We are sure that when the story is told 20 years from now, the structure and the listing of the major players in Africa's food industry will have gone even more transformation - even more revolutionary than what we have witnessed in the past two decades. We hope we shall continue keeping tabs on the progress in Africa's food industry - and that in early 2023, you shall join us to read our next listing in this publication!

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COVER STORY: FOOD BUSINESS AFRICA TOP 100

THE LISTING FROM A-Z 1. Company Name: Al Ahram Beverages Country: Egypt Sector: Alcoholic Beverages Description: With a history that dates back to 1897, Al Ahram Beverages has proved to be one of the most resilient business enterprises in Egypt. For the 123 years of existence, the company has continuously quenched the thirst of beer drinkers with its most popular and arguably the most successful beer in Egypt - Stella. The brewing giant controls over 70% of Egypt’s beer industry and has introduced a number of non-alcoholic beverages including Fayrouz, Birell and Amstel Zero. 2. Company Name: Africa Improved Foods Country: Rwanda Sector: Grains processing Website: www.africaimprovedfoods.com Description: Founded as a joint venture between the government of Rwanda and a consortium of companies led by DSM, Africa Improved Foods is a game changer in Rwanda’s food industry. The company’s state of the art milling plant is a trendsetter in quality milling and food safety management. Its food products are aimed at addressing malnutrition, with a focus on social impact, for which it has won a number of global awards including the 2018 World Changing Ideas awards and the 2019 SDG award for sustainable consumption. 3. Company Name: Africa Juice Tibila Country: Ethiopia Sector: Fruit Juice Website: www.africajuice.com Description: Located in the lush green Upper Awash Valley, Africa juice is revolutionizing how tropical fruit juice business is done in sub-Saharan Africa. With an investment of US$10 million, Africa Juice transformed a former stateowned fruit farm to create a modern tropical fruit plantation and built a new processing facility. The company has recently invested in a new processing line to produce emulsions and compounds for local and regional beverage companies. It has also added papaya products to its local offering and is finalising plans to add organic products as from mid-2021.

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4. Company Name: Africa Milling Limited Country: Zambia Sector: Milling Website: www.africanmillingzambia.com Description: African Milling Limited, with barely 15 years of operations, has grown to become one of Zambia’s largest integrated wheat and maize flour milling operations. The company produces and sells breakfast and roller maize meals. It also produces different types of bread flour traded under the name AFAM. In 2019, the company commissioned its newly installed maize mill with a capacity of 336 tonnes per day and 50,000MT storage. It also operates a 120 metric tonnes wheat mill plant since the year 2010. 5. Company Name: Astral Foods Country: South Africa Sector: Poultry Website: www.astralfoods.com Description: Astral Foods Limited is one of the leading integrated poultry producers in South Africa. It is engaged in manufacturing of animal feeds, broiler genetics, production and sale of day-old chicks and hatching eggs, breeder and broiler production, abattoir and further processing operations and sales, and distribution of various poultry brands. It has 4 fully integrated broiler production facilities, 9 feed mills and 180 agricultural sites. In 2020, the company processed approximately 5.2 million broilers per week, 447, 918 tonnes of poultry products and produced 1,355,230 tonnes of feed. 6. Company Name: Araak Group Country: Sudan Sector: Flour Milling, Food and Beverage Website: www.araak.com Description: The Araak Group is a leading food company in Sudan with interests in flour milling and beverage bottling. The Group’s bottling business is the largest of its kind in Sudan, producing in partnership with PepsiCo, the country’s popular soft drinks Pepsi, Mirinda, and 7Up. Its milling subsidiary, Wheata Flour Mills, is one of the largest in the country. It recently launched Tornado, the country’s first energy drink and has since diversified to bottled water and fresh juices.

7. Company Name: Awash Wine Country: Ethiopia Sector: Alcoholic beverages Website: Description: With an history of making wine that spans over 70 years, Awash Wine Share Company is an industry leader in Ethiopia’s alcoholic beverages industry. Despite being the oldest wine estate in the country, Awash Wine has stood the test of time, producing quality wine such as Awash, Kemila, and Gouda for both export and local consumption. The company recently commissioned a new production line at its Mekanisa Winery and also launched Dankira Ethiopia’s first cocktail wine, in an effort to bring modern wine drinking habits to Ethiopia. 8. Company Name: Bakhresa Group Country: Tanzania Sector: Grain processing, Bakery, Dairy & Soft Beverages & Sugar Processing Website: www.bakhresa.com Description: With a total investment that is estimated to be in excess of US$10.5 billion, the Bakhresa Group is the largest industrial conglomerate in Tanzania. With the largest wheat milling capacity in Eastern Africa, the company is also a significant player in the soft beverages and dairy sector in Tanzania. The company’s presence in Tanzania has been critical in propelling Tanzania into a food manufacturing hub, producing enough for exports to neighbouring countries. One of the most admirable brands Africa, according to Brand Africa, the Group has diversified its operations into other countries in the region, with its milling plants in South Africa, Zimbabwe, Malawi, Uganda, Rwanda and Burundi. The company has entered the sugar sector and is building a new sugar mill called Bagamoyo Sugar Ltd, to boost local production. 9. Company Name: Barry Callebaut Ivory Coast Country: Ivory Coast Sector: Cocoa & Chocolate Website: www.barry-callebaut.com Description: Barry Callebaut Group is a leading manufacturer of high-quality chocolate and cocoa products and also undertakes sourcing and processing

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10. Company Name: Beloxxi Industries Limited Country: Nigeria Sector: Grains, Milling, and Pastry Website: www.beloxxigroup.com Description: Founded in 1994 as an importer and distributor of internationally branded biscuits in Nigeria, Beloxxi Industries has grown to become one of the leading biscuit manufacturing brands in the West African nation. Its turning point came in 2003 when Nigeria banned importation of biscuits. Beloxxi snapped this opportunity to build one of the most advanced biscuit plants in West Africa and has since upgraded twice in response to consumer demand. The company’s ability to evolve in a dynamic African market and create employment for over 2,300 people is unique and qualifies it to be a top African company. 11. Company Name: Bidco Africa Country: Kenya, Uganda, Tanzania Sector: Fast Moving Consumer Goods Website: www.bidcoafrica.com Description: Bidco Africa is East Africa’s leading manufacturer of Fast Moving Consumer Goods (FMCG) and home of some of the region’s brands across the edible oils and fats segment such as Golden Fry and Kimbo. The company most recently expanded its portfolio to incorporate noodles and soft beverages. It also undertakes production of animal feed through a joint venture with Land O’Lakes, when they invested US$12m in the upgrade of its animal feed factory in Nakuru County. The company also collaborated with Danish firm Co-Ro Foods in a multi-million juice production factory near Nairobi. 12. Company Name: Bio Food Products Limited Country: Kenya Sector: Dairy Website: www.biofoods.co.ke Description: Bio Food Products is a leading premium dairy food company in Kenya, pioneering new concepts in products and packaging within East Africa. The company was the first to introduce Greek-style yoghurt in the region, unique flavour combinations and also leads on the sustainability front with its introduction of lightweight milk bottles for their long life milk. As the first in East Africa, Bio Food also launched fat-free and no added sugar yogurt and lactose free milk. In

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the recent past, they received an investment of an undisclosed amount from TBL Mirror, which gave it the muscle and impetus to be a leader in innovations in the sub-sector. The company has expanded its portfolio to include culinary products such as ketchup sauces, mayonnaise and cheese. 13. Company Name: BGI Ethiopia Country: Ethiopia Sector: Alcoholic beverages Website: www.bgiethiopia.com Description: BGI Ethiopia is the custodian of Ethiopia’s oldest brewery – St. George brewery and the country’s oldest and most popular beer - the St. George beer. BGI also holds the title of the earliest foreign investor in Ethiopia’s brewery sector, entering the business in 1982 through the acquisition of St. George. The company is accredited with upgrading Ethiopia’s beer industry to international standards and for bringing down the cost of beer. Even with the entrance of other foreign companies, BGI still remains the company that brews the country’s popular and historic beer. 14. Company Name: Botswana Meat Commission Country: Botswana Sector: Meat Website: www.bmc.bw Description: The Botswana Meat Commission has been a key driver of development in Botswana since 1965. The corporation, which is the only licensed meat exporter in the country, is a source of income to thousands of Batswana who keep beef animals. The 9th largest exporter of beef to the European Union, BMC continues to seek new markets particularly in China, Russia, and USA in an effort to secure better prices and direct market for its products.

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cocoa beans. In Ivory Coast, the company recently launched a new grinding unit at its SACO plant, part of a CHF 55 million (US$61m) investments aimed at increasing its cocoa bean processing capacity by over 40% by 2022. Barry Callebaut has also made strides in boosting transparency and traceability in its cocoa supply chain with farm mapping in the region.

TOP AFRICAN FOOD COMPANIES

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15. Company Name: Brookside Dairy Country: Kenya Sector: Dairy Website: www.brookside.co.ke Description: Brookside Dairy Limited is Eastern Africa’s largest dairy processing company, engaged in procuring, manufacturing and marketing of milk and milk products. The company has expanded its influence into more than 12 countries, priding itself to have more than 200,000 farmers in East Africa, delivering milk to it each day. It sells a wide range of products that include fresh milk, long-life milk, fermented milk, yoghurt, flavoured milk and butter under its brands Brookside, Delamare, Ilara, Tuzo and Molo Milk. In 2014, the company upped its game investing US$35 million in a milk powder plant, to tap into the excess milk volumes during the flash period in the region.

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THE LISTING FROM A-Z 16. Company Name: BUA Group Country: Nigeria Sector: Flour milling; sugar refining; rice and oil processing Website: www.buagroup.com Description: BUA Group is one of Africa’s leading food and manufacturing conglomerate headquartered in Nigeria. The company’s investments in agriculture value chain are spread across various industries from flour, pasta to sugar plantation & refining and edible oils. It has invested north of US$300 million in backward integration programs to boost Nigeria’s capacity to grow and process its own sugar. While in the flour and pasta segment, the company has recently inked agreements to increase its wheat and pasta processing capacities. 17. Company Name: Cargill Ghana Country: Ghana Sector: Cocoa & Chocolate processing Website: www.cargill.com/worldwide/ ghana Description: Cargill Ghana sources and processes cocoa, supplying high quality cocoa powders and cocoa butter to global food manufacturers for use in products like chocolate, biscuits, chocolate drinks and ice cream all over the World. The company recently announced an investment of US$13 million in the expansion of its cocoa processing site in Ghana to increase production capacity by 20%. It further committed US$3.4 million to spearhead the sustainability programs and cocoa traceability efforts in the country. 18. Company Name: Centrale Danone Maroc Country: Morocco Sector: Dairy Description: Controlling a market share of 30%, Centrale Danone is Morocco’s largest dairy company. The company has over 28 dairy products with the Centrale Fresh milk product being the most popular. Working with over 116,000 dairy farmers across Morocco and employing over 8,000 people, Centrale Danone is a true leader in Morocco’s food industry. During the pandemic, the Centrale Danone launched Ana Jay, an innovative home delivery solution during the pandemic.

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19. Company Name: CHI Limited Country: Nigeria Sector: Dairy, Soft Beverages & Snacks Website: www.chilimited.com Description: Chi Limited is a fast-moving consumer goods company producing dairy, beverages and snacks products with notable brands such as Capri-sun, Chivita and Hollandia. The Coca-Cola Company acquired full ownership of the leading juice producer in 2018. The company recently launching the country’s first lactose free milk dubbed Hollandia Lactose Free and a partially skimmed evaporated milk product, Hollandia Slim Evaporated Milk. Contributing to the development of the country’s dairy sector, CHI is currently undertaking infrastructural developments of facilities at the Bobi Grazing Reserve in Niger State to contribute to the country’s dairy development. 20. Company Name: Clover Industries S.A. Country: South Africa Sector: Dairy Website: www.clover.co.za Description: Clover Industries is a branded foods and beverages group in South Africa majorly dealing with dairy products through its subsidiary Clover S.A. It processes its milk into a range of household name brands of milk, yogurt, butter and cheese, among many others. The company’s other unit is known as Clover Beverages, which produces and distributes branded fruit juices and flavored milk drinks. Clover has one of the largest and most extensive distribution networks in South Africa, giving it extensive reach. In 2019, the company was acquired by Milco SA for more than US$330 million. 21. Company Name: Crown Beverages Country: Uganda Sector: Soft beverages Description: Founded in 1993, Crown Beverages is probably one of the youngest franchise bottlers of PepsiCo- an American multinational soft beverage manufacturer known for its flagship sodas, Pepsi and Mountain Dew. It was awarded the 2018 PepsiCo Europe and Sub-Saharan Africa Bottler of the Year award.

22. Company Name: Coca-Cola Beverages Africa in Kenya Country: Kenya Sector: Soft Beverages Website: www.ccbagroup.com Description: Coca-Cola Beverages Africa in Kenya is the bottler of the multinational soft drink company, Coca-Cola. CCBA Kenya operates four subsidiaries: Nairobi Bottlers, Equator Bottling Company, Crown Beverages Ltd and Almasi Beverages Limited. Its recent major investment in the country was the US$30 million juice plant that was commissioned in 2017. Some of its well-known brands include Coca-Cola, Fanta, Sprit, Dasani water, Minute maid, etc. 23. Company Name: Coca-Cola Beverage South Africa Country: South Africa Sector: Soft Beverages Website: www.ccbsaco.com Description: Coca-Cola Beverages South Africa (CCBSA) is a subsidiary of Coca-Cola Beverages Africa (CCBA) and manufacturer, bottler and distributor of a wide range of non-alcoholic beverages for The Coca-Cola Company. The company has 12 manufacturing plants, which it has recently revamped with the installation of solar power, aiming to meet 25% of its electricity needs supplied by renewable energy sources by 2025. CCBSA is committed to the ideal of transformation and Broad-based Black Economic Empowerment, as the beverage maker recently made its 8,000 employees a lucky lot by allowing them to ‘taste the feeling’ of its shares through the Ikageng Employee Share Trust created to offer workers shares and direct economic participation in the business. 24. Company Name: Copag Country: Morocco Sector: Dairy, meat, juice, fruits and vegetables Website: www.copag.ma Description: With over 5,800 employees and annual revenues that exceed US$400 million, The Copag Agricultural Cooperative is among the largest institutions of its kind in the Kingdom of Morocco. Drawing a membership of some 20,000 smallholder farmers, the cooperative is a leader in the country’s

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25. Company Name: Dairy Group South Africa Country: South Africa Sector: Dairy Website: www.dairygroup.co.za Description: Dairy Group South Africa was formed from the merger of Dairy Farmers of South Africa (DFSA) and Coega Dairy in 2020 – becoming South Africa’s largest UHT milk processor. The new joint venture combines offerings from both companies with DFSA bringing it’s over a century long experience as a market leader in the procurement of raw milk and supplying premium brands such as Clover, matching with Coega Dairy’s low-cost efficiency and house-brand knowledge. The company produces UHT milk, sterilized milk, powder milk, butter and other dairy products. 26. Company Name: Dal Group Country: Sudan Sector: Flour Milling, Dairy, Food & Beverages Website: www.dalgroup.com Description: Dal is an industry leader in Sudan and the country’s largest foods and agribusiness company. Its dairy subsidiary, Capo Dairy, is the country’s largest, supplying over 70% of Sudan’s total yogurt demand and about 40% of the fresh milk. Dal also has interest in the grains and milling industry and owns Sudan’s largest mill Sayga, which produces wheat flour, pasta, sugar, tea, biscuits, and powdered beverages. Its most popular brands include the Cap Yogurt and the Capo UHT milk. The company is the local partner for two international food brands; Unilever and Kraft Heinz and is also the bottling company for Coca-Cola. In March 2020, the company received a US$75 million loan from the African Development Bank to increase capacity to source and produce raw materials locally. 27. Company Name: Dalia Food Group Country: Morocco Sector: Grains & Milling Website: www.dalia.ma Description: The Dalia Food Group is a force to reckon with in the Moroccan food space, with interests in agricultural commodity trading, grain milling and food processing. The Group recently merged its commodity trading subsidiary Dalia Commodex with its grain handling business Dalia Grains to improve operational efficiency. Dalia Corp, its milling subsidiary is a leader in the country’s flour industry and has capacity to process more than 680 tonnes of wheat in a day. Closing

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the group’s value chain is Dalia Food, a subsidiary focused on processing of semolina into pasta, with capacity to process 20,000 tonnes of couscous and 40,000 tonnes of long and short pasta in a year. 28. Company Name: Dangote Group Country: Nigeria Sector: Sugar milling, salt and seasoning processing, tomato processing Website: www.dangote.com Description: Dangote Group is a leading diversified investment holding firm in Nigeria with focus on sugar milling and refining through its Dangote Sugar Refinery Plc., with a capacity of 1.49 metric tons per annum. This is in addition to its salt, seasoning and tomato processing facility supported by the group’s recently established N3 billion (US$7.7m) greenhouse nursery in Kano, which is designed to process between 300 and 350 million tonnes of hybrid tomato seedlings. The business giant is also in the process of establishing a fertilizer complex in Lagos State deemed to be the largest in the World, with a 3 million tonnes per annum capacity worth US$2.5 billion. 29. Company Name: De-United Foods Industries Limited (DUFIL) Country: Nigeria Sector: Noodles Website: www.dufil.com Description: DUFIL is Africa's largest instant noodles manufacturer and home to the famous Indomie brand. The company is comprised of six subsidiaries: Dufil Prima Foods, De United Foods Industries and Northern Noodles Limited undertaking Noodles production; Pure Flour Mills Limited supplying the noodle divisions with flour; Insignia Print Technology LFTZ Enterprise, printing flexible packaging material to meet DUFIL's requirement; and Raffles Oil LFTZ Enterprise, a palm oil refinery.

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dairy industry, accounting for 11% of the total milk sold. Apart from Jaouda, its yogurt and fresh juice brand, Copag also has interests in meat processing trading under the Jayda brand, and in fruits and vegetables, where it trades under the Copag Delight brand.

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30. Company Name: Delta Corporation Limited Country: Zimbabwe Sector: Soft & Alcoholic Beverages Website: www.delta.co.zw Description: Delta Corporation, the Zimbabwe franchise partner for Coca-Cola, is major player in the country’s beverage sector. It not only bottles and distributes Coca-Cola beverages but also manufactures lager beer, traditional sorghum beer and other sparkling soft drinks, including Schweppes. The company recently announced plans to purchase assets of a local bottling company and is finalising discussions with The Coca-Cola Company for the extension of the sparkling beverages franchise territory in the country.

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THE LISTING FROM A-Z 31. Company Name: Dina Farm Country: Egypt Sector: Dairy, Fruits and Vegetables Website: Description: Spreading over some 10,000 acres and being home to at least 17,000 cattle, Dina Farms is arguably Egypt’s largest agricultural venture. The company does not just produce milk; it processes into a wide range of products including fresh milk, flavored milk, yogurt and cheese. Its fresh milk is particularly popular and the firm is believed to control over 70% of Egypt’s fresh milk market. The farm has also diversified into producing other farm produce including mangoes, grapes, olives, wheat and potatoes among others. In 2019, the farm attracted an investment of about US$24 million from Qalaa Holdings, which it invested in upgrading of facilities at its dairy farming section.

The coffee processor is passionate about the growth of the industry, which led it to established Africa’s first Barista training school, The Nairobi School of Coffee. One of its notable sustainability projects is the installation of 2,880 solar modules at its new facility, which produces 1.4 million kilowatt-hour of electricity per year.

32. Company Name: Distell Country: South Africa Sector: Alcoholic Beverages Website: www.distell.co.za Description: Distell is Africa's leading producer of spirits, wines, ciders and ready-to-drinks (RTDs) as well as the world's second largest producer of ciders. The company produces and markets a diverse portfolio of alcoholic brands such as Amarula, Savanna, Bain's, Hunter's Dry, Durbanville Hills, Scottish Leader and Nederburg across the World. Since 2015, it has spent 3.87 billion Rand (US$254 million) on expanding its capacity, including manufacturing and distribution in Africa. With operations and ambitions into the rest of Africa, the beverage maker is seeking to enter the CBD infused drink market with its recent acquisition of a minority stake in South African cannabidiol brand RETHINK.

35. Company Name: Edita Food Industries Country: Egypt Sector: Snacks & Confectionary Website: www.ir.edita.com.eg Description: Edita is a leading Egyptian snack food producer in the Middle East and North Africa. The company has 10 leading brands spread across its six segments including cakes, bakery, rusks, wafers, candy and biscuits. In 2019, the company acquired full control of its confectionary venture after buying the minority interest for US$3.1 million. An innovations led company that is listed on both the Egyptian and London Stock Exchange, it recently secured a US$8.1 million from Arab Bank to finance construction of its new factory in Morocco, as it expands into the region.

33. Company Name: Dormans Coffee Country: Kenya Sector: Coffee Website: www.dormanscoffee.com Description: Dormans Coffee is East Africa’s leading coffee trading, roasting and agronomy company. The company has a leading position in Kenya for a number of coffee products including roast and ground coffee, instant coffee, coffee capsules, premixes, syrups and premium tea, all sold under its Dormans brand. 100

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34. Company Name: DPL Festive Limited Country: Kenya Sector: Bakery Website: www.dplfestive.com Description: DPL Festive is one of the leading bakeries in Kenya, producing the market dominant Festive brand. The bakery’s main product range include breads, sandwich breads, burger buns, hot dog rolls and cream rolls, coming in either white, brown, white milky or whole meal brown variety. Its other brands include Nature’s Gold and Festivita.

36. Company Name: Equatorial CocaCola Bottling Company Country: Equatorial Guinea Sector: Non-Alcoholic beverages Website: www.eccbc.com Description: Founded in 1989 in Equatorial Guinea, the Equatorial Coca-Cola Bottling Company has grown to become one of the largest bottling companies in Africa with presence in 13 countries in the north and west of the continent. Apart from Equatorial Guinea, the company has a presence in Guinea Conakry, Mauritania, Cape Verde, Guinea Bissau, The Gambia, Ghana, Morocco and

Algeria. 37. Company Name: Fan Milk Limited Country: Ghana Sector: Dairy Website: www.fanmilk.com Description: Fan Milk Limited manufactures and markets dairy products and fruit drinks in Ghana. The company produces a range of frozen yoghurts, chocolates, ice cream, snacks, ice-lollies and citrus drinks under the brand names FanYogo, FanChoco, FanIce, FanDango and FanPop. Fan Milk is the perfect definition of Ghana to the world as it has also set base in six other countries i.e., Côte d’Ivoire, Togo, Nigeria, Liberia, Burkina Faso and Benin. 38. Company Name: Five Star Flour Mills Country: Egypt Sector: Grains & Milling Website: Description: Opened in 1998 with a grain milling capacity of 450 tonnes per day, Five Star Flour Mills has grown over the years to become one of Egypt’s largest private flour milling companies. The company has a milling capacity of 1,250 tonnes and produces a wide range of flour products. It owns a dedicated berth at Adabiya port in Suez, fitted with a grain unloader capable of processing 600 tonnes/hour from Panamax size vessels and grain silos with storage capacity of 125,000 metric tons, which is also the largest in Egypt. 39. Company Name: Flour Mills of Nigeria Country: Nigeria Sector: Grain milling, sugar refining, edible oil processing Website: www.fmnplc.com Description: Flour Mills Nigeria Plc, is Nigeria’s leading foods and agro-allied group, with business interests in food production, packaging, agricultural industries, port operations and logistics. The company manufactures and sells wheat flour, pasta, noodles, edible oil and refined sugar under its iconic brand “Golden Penny” as well as livestock feeds; fertilizers, polypropylene sacks and flexible packing materials. The firm also grows and processes sugar cane, oil palm and cassava. Reputed as Africa’s largest single site wheat miller, FMN celebrated its 60-year anniversary in 2020. FOODBUSINESSAFRICA.COM


41. Company Name: GB Foods Country: Nigeria Sector: Culinary Website: www.thegbfoods.com Description: GB Foods is a culinary products manufacturer that produces tomato sauce, bouillon cubes, curry powder and mayonnaise. The company recently invested in Nigeria, inaugurating its N5.5 billion (US$14.3m) state-of-the-art production factory for its leading mayonnaise brand, Bama Mayonnaise and opened a N20 billion (US$51.9m) tomato processing factory in Kebbi state, aimed to help the country achieve self-sufficiency in production of tomatoes and its related products. 42. Company Name: Grain Industries Limited Country: Kenya Sector: Milling Website: www.grainindustries.com Description: Grain Industries Limited (GIL) has invested in a state of the art milling plant producing wheat flour products, that has catapulted the Mombasa-based miller into the leading wheat miller in Kenya, in a few short years. The products are sold under its flagship brand Ajab, which has taken the Kenyan market by storm, adding a maize meal plant in 2020. 43. Company: Guinness Ghana Country: Ghana Sector: Beverage Website: www.diageo.com/en/our-business/ where-we-operate/africa/guinness-ghanabreweries-plc Description: Guinness Ghana Breweries Limited, a subsidiary of Diageo Plc. manufactures and markets a range of alcoholic and non-alcoholic beverages for the Ghanaian domestic market and for international export. Its product offering includes spirits, beers, lagers and stouts as well as ready-to-drink products. Popular brand names FOODBUSINESSAFRICA.COM

include Guinness, Orijin, Ciroc Vodka, Johnnie Walker Whisky, Star Lager, among many others. Its non-alcoholic beverage, Malta Guinness, is popular and has captured 70% of the Ghana nonalcoholic beverages market. The company is the only beverage firm currently listed on the Ghana Stock Exchange and has invested over US$50m in the Ghanaian economy over the last five years. 44. Company Name: Harris International Country: Uganda Sector: Soft beverages, Snacks Website: www.harissint.com Description: Harris International, the maker of the Riham line of products since 2005, has a range of soft beverages, malt drinks, biscuits, and fruit juices. The company recently unveiled Oner Apple No-Added Sugar, a new sugar free version of its Oner Apple Juice brand for the health conscious consumer. 45. Company Name: Heineken Ethiopia SC Country: Ethiopia Sector: Alcoholic Beverages Website: www.heinekenethiopia.com Description: Within less than a decade since its entry into Ethiopia, Heineken Breweries has grown into the country’s largest maker of alcoholic drinks. A few years after buying two state-owned breweries, Heineken spent over US$376 million in upgrades and in building the Kilinto brewery, Ethiopia’s largest facility of its kind to date. As part of its sustainability efforts, Heineken has also supported over 24,000 farmers to plant barley and also carried out water access projects for the benefit of over 300,000 inhabitants.

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40. Company Name: FrieslandCampina WAMCO Country: Nigeria Website: www.frieslandcampina.com.ng Sector: Dairy Description: Nigeria’s leading dairy processor and affiliate of Royal FrieslandCampina, it provides high quality dairy products through its brands Peak, Three Crowns and Friso. At the heart of its operations in Nigeria is the dairy development programme, a backward integration plan, which has recorded an increase in fresh milk collection from farmers to hit an all-time high record of 40,000 litres of milk per day. The company has also recently ramped up its operations with acquisition of Nutricima’s dairy business from PZ Cussons Nigeria Plc and commissioning of state-of-the-art plant for local production of its Peak brand yoghurt.

TOP AFRICAN FOOD COMPANIES

2020

46. Company Name: Heineken Mozambique Country: Mozambique Sector: Alcoholic Beverages Website: www.theheinekencompany.com Description: Opened in early 2019, Heineken Mozambique is one of the most modern brewing facilities in Africa. The US$100 million investment in the country has had a far-reaching benefit to Mozambicans, providing a variety of brews, creating jobs, and providing a stable source of income to more than 1,000 maize farmers in the country. The also launched a home grown beer from cassava, Txilar, which has fared well in the market and even managed to create a substantial following among Mozambican beer drinkers. 47. Company Name: Inyange Industries Limited Country: Rwanda Sector: Dairy & Soft Beverages Website: www.inyangeindustries.com Description: A pioneer in Rwanda’s food industry is Inyange Industries Limited, a bustling dairy and drink factory that has remained committed to

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THE LISTING FROM A-Z Rwanda’s economic Agenda for about 20 years. Its presence has been critical in the development of Rwanda’s dairy sector, providing employment, direct markets to farmers, and high quality products to consumers. The company recently announced plans to set up a US$20m milk powder plant in the country’s northern region, reviving hopes for the dairy farmers and further developing the dairy sector. 48. Company Name: International Breweries Plc Country: Nigeria Sector: Alcoholic & Soft Beverages Website: www.internationalbreweriesplc. com Description: International Breweries Plc., a subsidiary of the World’s leading beer maker AB InBev, commenced production with an installed capacity of 200,000 hectoliters per annum but has over time ramped up its output with the acquisition of Intafact Beverages Limited and Pabod Breweries Limited in 2017. The company also recently commissioned a new US$250 million brewery in Sagamu, Ogun State. Its flagship products are Trophy Lager and Betamalt malt drink. 49. Company Name: Juhayna Dairy Corp Country: Egypt Sector: Dairy & Juice Website: Description: Juhayna is a market leader in Egypt’s food industry, with its dairy division controlling 58% and 53% of the fresh milk and yogurt market in the country, respectively. The company has continued to innovate, introducing new products to the Egyptian market, almost on annual basis. In 2019, it introduced lactose free milk and added flavoured milk to its Bekhero range, all of which were a market success. Today, Juhayna boast of over 200 products spread across its milk, yogurt, juice, and UHT cream product lines. 50. Company Name: Kakira Sugar Country: Uganda Sector: Sugar, Confectionery Website: www.kakirasugar.com Description: Kakira Sugar, part of Madhvani Group - Uganda’s largest and most diversified private sector group

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- has a production capacity of 7,000 tonnes of cane per day and is among the largest sugar processing facilities in the East Africa region. The company is a major contributor to Uganda’s export volumes, employs over 7,500 employees and supports livelihoods of an additional 7,000 through its out-grower farmer scheme. Apart from being a source of livelihoods for many, the company has also invested in impact projects such as a hospital and 12 schools for the benefit of the community around it.

Description: Kellogg Tolaram Nigeria Limited is a Joint Venture between Kellogg Company USA and Tolaram Group of Singapore, which was incorporated in 2015 to develop the cereal and snack business in Nigeria and other West African countries. The JV set up one of the most modern cereal plants in West Africa, which commenced commercial production in 2018. Along with the cereals, KTNL has also introduced a new snack product in the market under the brand name Munch IT.

51. Company Name: Kasapreko Company Limited Country: Ghana Sector: Soft Beverages Website: www.kasapreko.com Description: Kasapreko is a leading manufacturer of alcoholic and soft beverages in Ghana. Its flagship product is Alomo Bitters, a herbal alcoholic drink. The company is one of the beneficiaries of the One-District-One-Factory (1D1F) project by the government of Ghana. Under the initiative, it recently launched a new factory with the capacity to produce about 35,000 bottles per hour of soft drinks and 15,000 bottles per hour of water.

54. Company Name: Kenafric Industries Country: Kenya Sector: Food and Beverage Website: www.kenafricind.com Description: Kenafric Industries, part of the Kenafric Group of Companies, is Eastern Africa’s largest confectionery manufacturer famously known for its sweets. Its confectionery portfolio is made up of candies, toffees, lollipops, bubble gum, ball gum, chewing gum and chiclets to include brands such as Fresh, Ting Ting, Bing Bang, among many others. Other than confectionery, Kenafric manufacturers ready to drink and powdered beverages, biscuits and culinary products. To expand its processing capacity, the company opened a new US$1 million biscuit manufacturing line in 2018, and recently entered the water and soft beverages markets

52. Company Name: Kefalos Country: Zimbabwe Sector: Dairy Website: www.kefalosfood.com Description: Kefalos is a highly respected dairy brand in Zimbabwe, known for its range of high quality cheeses, ice creams, fresh milk, yoghurts among other dairy products. The company, with a history dating back to 1962, has been resilient, consistently maintaining high quality production standards and staying in operation even when the economy underwent a super inflation that threatened the existence of many food companies. The company’s products have began to be exported to neighbouring countries. 53. Company Name: Kellogg Tolaram Nigeria Limited Country: Nigeria Sector: Cereals & Snacks Website: www.linkedin.com/company/ kellogg-tolaram-nigeria-limited

55. Company Name: Kenchic Limited Country: Kenya Sector: Poultry Website: www.kenchic.com Description: Kenchic Limited is the leading producer of poultry in East and Central Africa. Since its inception, the company’s main activity has been the production of broiler, Kenbro and layer day old chicks. Over the years the company has expanded its operations to include processed chicken and other products such as smoked, choma and chicken sausages sold under the Kenchic brand. Kenchic recently opened its US$3.5 million, fully automated processing plant with a capacity to handle 6,000 birds per hour.

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57. Company Name: Kevian Kenya Limited Country: Kenya Sector: Beverage and Culinary Website: www.keviankenya.com Description: Kevian Kenya is one of the leading beverage manufacturing companies in Kenya, which ventured into the market with its flagship bottled water brand know as Mt. Kenyan water. Since its inception, the company has expanded its portfolio to include juices, nectars, malt drinks, energy drinks and carbonated soft drinks, which have dominated the market with labels such as Peek n Peel and Afia. Further to that, Kevian has launched culinary options such as Kevian Sauces. The firm recently invested US$3.37 million in the establishment of a new waste packaging papers recycling plant, Ramani Recylers. 58. Company Name: Lactalis South Africa Country: South Africa Sector: Dairy Website: www.lactalis.co.za Description: Lactalis South Africa is the successor to Parmalat South Africa. A subsidiary of French dairy giant Lactalis is a leading player in South Africa’s highly competitive dairy industry and is also responsible for the former business of Parmalat in southern Africa, including Zambia, Malawi, Mozambique, Botswana and Eswatini. The company’s innovative brands have won a number of the prestigious Product of the Year prize at the South African Dairy Championships. 59. Company Name: Lake Harvest Country: Zimbabwe Sector: Aquaculture Website: www.lakeharvest.com Description: In just 23 years of existence, Lake Harvest, part of African Century Group, has managed to carve a name for itself in Africa’s food industry. The company is home to the largest integrated Tilapia operation in the continent, from where high quality, sustainably produced fish is sourced, processed and marketed to 6 African

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countries including South Africa, Zambia and Malawi. 60. Company Name: Land’Or Country: Tunisia Sector: Dairy Description: Land’Or is Tunisia’s second largest dairy, specializing in cheese making. It produces a number of popular cheese brands such as Land’Or, Tartoo, Désir and Le Fondant, which are popular in Tunisia, Morocco, and Algeria. The company secured a total of US$37 million from EBRD in 2020 to support construction of a new processing facility in Morocco and to carry out capacity expansion and process optimisation of its Tunisian plant. The Moroccan plant is expected to start operations in early 2021 and will have capacity of processing 5,000 tonnes of fresh, melting and canned cheese. 61. Company Name: Mahgoub Sons Group Country: Sudan Sector: Vegetable oil refinery, confectionary, meat processing, grain milling Description: The MSG group is one of the premier food companies that started out as an agricultural company with about 42,000 hectares of land. Over time MSG has increased its agricultural land base to over 200,000 hectares. As from 2016, MSG invested in food processing, using sesame from its farm to produce vegetable oil at its Delta refinery and transporting another batch to the Almahgoub sweet factory, while another is processed as grains and packaged for export. The company has recently invested in livestock production and is producing chilled and frozen meats for both local consumption and export. It has future plans to invest in tomato paste, French fries, crisps, biscuits, and sweets, with a target to capture 30% market share of Sudan’s local foods market.

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56. Company Name: Kenya Breweries Limited Country: Kenya Sector: Alcoholic Beverages Website: www.eabl.com Description: KBL is the leading brewery in Kenya, celebrating its centenary in 2022. The alcohol maker produces and markets a range of beer, spirits and malt drinks including Smirnoff vodka, Chrome Gin, Johnnie Walker whisky, among many others. In 2018, KBL completed the construction of its new plant in Kisumu worth US$150 million. Its recent notable initiative is the Raising the Bar with Tusker, which seeks to support recovery of Kenya’s hospitality industry by availing a US$3 million fund.

TOP AFRICAN FOOD COMPANIES

2020

62. Company Name: Merec Industries SA Country: Mozambique Sector: Grain Milling Website: www.merecindustries.com Description: In a span of 20 years, Merec industries has managed to grow from a small milling company into one of the leading milling companies in Southern Africa, North of Limpopo. Today, Merec not only mills maize and wheat but also produces pasta, biscuits, and animal feed. Its presence in Mozambaique not only creates employment for the 520 workers it directly employs but also to hundreds of farmers and thousands of distributors who get income from selling Merec’s products. The company is also a foreign exchange earner for the country as it exports its pasta and biscuits to neighbouring countries including South Africa, Zambia and Zimbabwe.

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THE LISTING FROM A-Z 63. Company Name: Mt. Meru Millers Country: Tanzania, Zambia, Malawi & Uganda Sector: Oilseeds processing, Bakery Website: www.mountmerugroup.com Description: From its humble beginning in Arusha in Tanzania, Mt. Meru Group has grown into a leading producer of cooking oils from local sources of raw material in the region: sunflower, soya, cotton and sesame, with a presence in six African countries including Rwanda, Zambia, Malawi, Uganda, and Mozambique. In Zambia and Tanzania in particular, Mt. Meru has been critical in developing the vegetable oil industry through modern oil extraction plants and providing a source of livelihood to thousands of farmers. It entered the bakery sector in Zambia in 2019. 64. Company Name: Motisun Group Country: Tanzania Sector: Soft beverages, Snacks Website: www.motisungroup.com Description: Through its Sayona Drinks Limited & Sayona Fruits Ltd, the Motisun Group has a strong impact on the food industry in Tanzania. The company’s new fruit processing plant that is located in the remote region of Chalinze, near Dar es Salaam is the anchor to the company’s impact in the country, while its original plant, based in the capital city produces water, tomato sauces and ketchups and snacks. 65. Company Name: Mohamed Enterprises (MeTL Group) Country: Tanzania Sector: Soft beverages, Grain milling Website: www.metl.net Description: Tanzania’s largest home grown industrial group MeTL Group is a force to reckon with in the food industry and a major contributor of the country’s GDP. Its food division, with interests spread across agriculture, milling, and beverage production has invested over US$137.17 million in the country with its latest investment being a modern US$89.17 million wheat and maize milling facility. The company says that for the 5 years ending 2018, it had invested over US$300 million on a number of community projects, including water supply, healthcare, education, and sports programs. 104

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66. Company Name: Mars Wrigley Confectionery Kenya Country: Kenya Sector: Confectionery Website: www.mars.com Description: Mars Wrigley Confectionery Kenya is the leading manufacturer and marketer of chocolate, chewing gum, mints and fruity confections. Some of its famous brands in the market including Orbit, Doublemint, Juicy fruit, Mars, M&M’s, among many others. During its 50th anniversary in Kenya (2019), the company inaugurated its new US$70 million plant, enabling it to introduce new product lines into the market. The candy maker undertakes its operations in a sustainable way and has increased the use of clean renewable energy, promotes energy efficiency and reduction in C02 emissions. 67. Company Name: Namibia Breweries Country: Namibia Sector: Alcoholic Beverages Website: www.nambrew.com Description: Namibia Breweries Limited is a leading beverage manufacturing company in Namibia with 100 years of operations. The company majors in production of beer under brands such as Windhoek and Tafel, and also produces a range of soft beverages and low/ non-alcoholic products. NBL mostly undertakes its production at its Windhoek brewery, with a total technical brewing capacity of 3 million hectolitres. In 2019 it injected US$ 3.2 million to upgrade its lines and invested in 12-pack capability. About 50% of its production is packaged in returnable containers. 68. Company Name: National Foods Country: Zimbabwe Sector: Grain Milling Website: www.nationalfoods.co.zw Description: National Foods is Zimbabwe’s largest food manufacturing company, producing a broad range of foods including maize meal, flour, cooking oil, and margarine among others. The company has history dating back to the colonial era with some of its popular brands such as Gloria and Red Real, having been in existence for more than 100 years now. Being a century old, the company has been a main stay in Zimbabwe’s economy, providing a source

of livelihoods to thousands of farmers and employees and also contributing towards the development of the country’s food industry. 69. Company Name: National Milling Corporation Country: Zambia Sector: Milling Website: www.seaboardoverseas.com/ location/namilco-zambia Description: The National Milling Corporation is an affiliate of American agribusiness and transport conglomerate, Seaboard Corporation, and the pioneer and leading miller in Zambia. The company in 2019 commissioned a new US$37.5 million milling plant in 2019 in Lusaka, with a capacity to mill 600 metric tonnes of wheat per day. The company’s main products are wheat flour, maize meal, animal feeds, oilseed crushing and bakery products. 70. Company Name: Nestle Nigeria Country: Nigeria Sector: Food and Beverage Website: www.nestle-cwa.com/en/ csv/nestl%C3%A9-nigeria/aboutnestl%C3%A9-nigeria Description: Nestle Nigeria Plc is one of the largest food and beverage companies in Nigeria with a staff strength of over 2,300 direct employees, 3 manufacturing sites, 8 branch offices and a head office located in Lagos. It produces an extensive range of products for the retail and wholesale sectors, including baby foods, soft beverages, breakfast cereals, hot drinks and culinary products. Some of its famous brands include Maggi, Golden Morn, Nan, Cerelac, Nescafe, Nestle Pure Life etc. The company is majority owned by Swiss food giant Nestlé, which recently cemented its position as the company’s majority shareholder with 66.5% ownership after a series of transactions. 71. Company Name: Nestle South Africa Country: South Africa Sector: Food and Beverages Website: www.nestle-esar.com Description: Nestlé South Africa is home to the East and Southern African Region Head Office of food giant Nestle, with 5 factories and 2 distribution centers. The company manufactures and distributes food and beverage products such as FOODBUSINESSAFRICA.COM


72. Company Name: New KCC Country: Kenya Sector: Dairy Website: www.newkcc.co.ke Description: New KCC is Kenya’s leading dairy company involved in the procurement of raw milk, processing, packaging and marketing it in form of butter, cheese, flavoured and unflavoured long life milk, fermented milk and milk powder under its brand names Gold Crown, KCC and SafariLand. The dairy processor is in the process of rejuvenating its ageing plants including Dandora, Eldoret, Kiganjo, Sotik plants, with plans to roll out investments at the other plants. It recently broke ground on a US$2.5m milk cooling plant in Central Kenya. Tapping into the growing healthy lifestyle market, New KCC launched a low lactose milk product. 73. Company Name: Nigerian Bottling Company Country: Nigeria Sector: Beverage Website: www.ng.coca-colahellenic.com Description: Nigeria Bottling Company (NBC) is a member of the Coca-Cola Hellenic Bottling Company, one of the largest bottlers of The Coca-Cola Company across the globe. NBC offers a wide range of carbonated and non-carbonated soft drinks, fruit drinks and juices, bottled water, and energy drinks. It bottles various brand name products, including Coca-Cola, Fanta, Sprite, Schweppes, Eva Water, and Five Alive. The company undertakes its operations in 8 of its plants, in which it has invested over Euro650 million in the expansion and extensive upgrade of its manufacturing facilities since 2015. As part of its business optimisation and transformation plans, NCB recently completed the installation of a new high-speed canning line at its Ikeja plant. The company also developed a green-field factory in Challawa plant, Kano State, which commenced operations in February 2020. 74. Company Name: Nigerian Breweries PLC Country: Nigeria Sector: Beverages

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Website: www.nbplc.com Description: Nigerian Breweries, a subsidiary of Dutch multinational Heineken, is the largest brewing company in Nigeria, producing the nation’s favorite beer, STAR and franchise bottler of Heineken Lager. The company boasts of having one of the most modern brew houses in the country that produce a range of lager, stout, malt drinks, ready-to-drink beverages, cider, carbonated soft drinks and energy drinks for local consumption and for export. It has 11 breweries, 2 malting plants and 26 sales depots. The company installed a 650 kW solar plant at the Ibadan brewery in 2019, which supplies 1 GWh annually, reducing the site’s CO2 emissions by more than 10,000 tonnes over the lifespan of the plant. 75. Company Name: Nile Breweries Ltd Country: Uganda Sector: Soft beverages, Snacks Description: Since 1951, Nile Breweries (now part of multinational brewing company AB InBev) has been producing crisp, fresh, and unique beers for Ugandans, the most notable of them being Nile Special. Its brand Nile Special is among the top African beer brands. The firm operates two brewing plants in the country. It not only provides a source of livelihood for more than 15,000 farmers under its contract farming program.

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chocolate, coffee, ice cream, cereals, beverages, dairy, etc. Some of its leading brands include Ricoffy, Milo, Cremora and Maggie noodles. Showing its commitment to the South African community, Nestle invested over R1.4 billion (US$91m) in 2019 towards the B-BBEE procurement program aimed to empower black suppliers and in turn, creating jobs through various Enterprise Development initiatives. It also recently launched its RE sustainability initiative, aimed at reinforcing all its sustainability initiatives, strategies and resources to help mitigate sustainability challenges and strengthen its contribution to a waste-free future.

TOP AFRICAN FOOD COMPANIES

2020

76. Company Name: Oceana Group Country: South Africa Sector: Fish Website: www.oceana.co.za Description: The Oceana Group is a global fishing company and a market leader in South Africa, with subsidiaries in Namibia and USA. Its core business is the catching, processing, marketing and distribution of canned fish, fish oil, lobster, horse mackerel, squid and hake. Oceana’s operations include mid-water fishing (horse mackerel), deepsea trawling (hake), and inshore fishing for pelagic fish (anchovy, Gulf Menhaden, redeye herring and pilchard). They also provide refrigerated warehouse facilities and logistical support services. The company’s annual turnover is over US$400 million. 77. Company Name: Olam Nigeria Country: Nigeria Sector: Food processing Website: www.olamgroup.com/locations/westand-central-africa/nigeria Description: Olam Nigeria is a subsidiary of Olam International. In Nigeria the company focuses on 3 major business streams, namely exports, imports, and branded packaged food products. It undertakes its operations through various business units: OK Foods Ltd (biscuits, candy and confectionery); Ranona Nigeria Ltd (dairy beverages); Olam Sanyo (noodles); Caraway Foods Ltd (culinary

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THE LISTING FROM A-Z ingredients); Crown Flour Mills (grain milling); Olam Hatcheries Ltd (animal feed and hatchery). It also sources, processes and exports agricultural products such as cocoa, cashew, rice and sesame. With more than 19 billion Naira invested in Nigeria since 2013, Olam operates one of the most advanced animal feed plants in Nigeria that it opened in 2017 in Kaduna State. 78. Company Name: Olam Ghana Country: Ghana Sector: Food processing Website: www.olamgroup.com/ locations/west-and-central-africa/ghana Description: Olam Ghana has over 20year long track record of being a major supply chain manager of agricultural products and a leading agro-commodity and packaged foods company. It is ranked among the country’s top Licensed Buying Companies, a leading supplier of Ghana’s cocoa beans into European and Asian markets and is Ghana’s biggest exporter of cashew and importer of rice but recently launched its first Made in Ghana rice dubbed Mama Gold. Olam Ghana became one of the country’s major wheat millers when in 2012 opened a new state-of-the-art wheat flour mill at Tema; apart from being the leading biscuits and tomato processing company in the country. 79. Company Name: PepsiCo SA Country: South Africa Sector: Food, snack and beverage Website: www.pepsi.co.za Description: Multinational food, snack and beverage company PepsiCo grabbed the headlines in the South Africa with the acquisition of Pioneer Foods for US$1.7 billion in 2020. PepsiCo also processes and distributes well-known brands such as Lays, Dorito’s, NikNaks, Simba and Fritos through its Simba (Pty) Ltd. The acquisition of Pioneer added strong local product portfolio with strong positions in cereals, juices, and other African nutritional food staples, including well-known scaled brands like Weet-Bix, Liqui-Fruit, Ceres, Sasko, Spekko, and White Star. The move is also aimed to help PepsiCo gain a solid beachhead for expansion into Sub-Saharan Africa.

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80. Company Name: Pembe Flour Mills Country: Kenya, Zambia and Uganda Sector: Grain Milling Description: Part of a group of companies that are associated with the milling trade in Kenya, Pembe Flour Mills has grown to become one of the regional heavy weights in maize and wheat milling, with operations in Kenya, Uganda and Zambia. Its Kenyan operations commissioned a major expansion of its milling capacity recently, while its Zambia business has expanded to include soya bean crushing – becoming a major player in the country after a few years of opearations. 81. Company Name: PepsiCo Ethiopia Country: Ethiopia Sector: Soft Beverages & Snacks Description: PepsiCo has had a presence in Ethiopia for 57 years and is the largest provider of soft beverages with a 52% market share as at 2019, through its franchise-bottling partner Moha Soft Drinks Industry. PepsiCo however brought its boots on the ground through the acquisition of Senselet, a local manufacturer of crisps. 82. Company Name: Pearl Dairy Uganda Country: Uganda Sector: Dairy Website: www.latomilk.com Description: The Pearl brands is arguably the most visible export from Uganda. Its products ranging from yogurt and liquid milk to butter and ghee are in Uganda, regional and international markets. The company has since diversified into honey, injecting US$2.72 million into a new plant that may ultimately help 10,000 Ugandan dairy farmers supplement incomes from their milk. A private equity fund took an undisclosed stake in the dairy in 2020. 83. Company Name: Premier FMCG Country: South Africa, Mozambique Sector: Food processing Website: www.premierfmcg.com Description: Having a history spanning 200 years, Premier is one of the leading FMCG companies in South Africa, offering branded and private label solutions. The business has an annual turnover of R10 billion (US$653m) and operates 13 bakeries, 7 wheat mills, 3 maize mills and manufacturing plants producing a broad range of confectionery, bread,

beverages, biscuits, maize, pasta, rice, wheat and animal feeds. These products are distributed to its customers via 21 distribution depots situated in South Africa, Eswatini, Mozambique and Lesotho. Some of its strong heritage brands include Snowflake, Blue Ribbon, Manhattan Sweets and Super C. 84. Company Name: Quantum Foods Country: South Africa Sector: Poultry Website: www.quantumfoods.co.za Description: Quantum Foods is a diversified feeds and poultry business and the largest eggs producer in South Africa. Its subsidiaries include Nulaid eggs and layer unit, the Tydstroom broiler business and the Nova feeds business. Other than operating in South Africa, Quantum has active running units in Zambia, Uganda and Mozambique. 85. Company Name: RCL Foods Country: South Africa Sector: Food and Beverages Website: www.rclfoods.com Description: RCL Foods is a leading food processor in South Africa, manufacturing a wide range of branded and private label food products. The company produces a wide range of quality culinary, pet food and beverage products that include well-known brands such as Selati sugar, Supreme flour, Rainbow and Farmer Brown chicken, Pieman’s pies, Sunbake bread, Nola mayonnaise, Yum Yum peanut butter, Catmor pet food products, among many others. As of the end of June 2020, the group operated 3 sugar factories, one flour factory, 7 bakeries and 5 feed mills. With an ambition into the rest of Africa, it has acquired stakes in a sugar miller in Eswatini and in Uganda’s leading chicken producer, Hudani Manji Holdings (Yokuku). 86. Company Name: Rite Foods Country: Nigeria Sector: Food & Soft Beverages Website: www.ritefoodsltd.com Description: Rite Foods is a food and beverage company in Nigeria with a fast-rising indigenous brand of soft drinks known as Bigi. The company also produces sausages, energy drinks and premium water. Rite Foods, barely a decade old, is increasing its market share

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87. Company Name: Rhodes Food Group Country: South Africa Sector: Convenience food products Website: www.rfg.com Description: Rhodes Food Group is a market leader in convenience meal solutions in South Africa, with a well-capitalized production base comprising 14 manufacturing facilities and a fruit processing facility in Eswatini. Its product range includes canned fruit, jam, vegetable and meat products, bottled salads, fruit juices, fruit purees and concentrates, dry packed foods, fresh and frozen ready meals, pastry-based products and dairy products. The company’s growing portfolio of market leading brands, including Rhodes and Bull Brand, are complemented by premium private label product ranges produced for select domestic and international customers. 88. Company Name: SOBOA (Société des Brasseries de l'Ouest-Africain) Country: Senegal Sector: Alcoholic & Soft Beverages Website: www.soboa.sn Description: SOBOA, leading beverage manufacturer in Senegal, produces soft drinks and beers as well as the trading of fine wines. The company is also the licensed bottler and distributor of Coca-Cola. Other than production of beverages, the subsidiary of Castel Group also undertakes icecream manufacturing. 89. Company Name: Societe de Fabrication des Boissons de Tunisie Country: Tunisia Sector: Alcoholic and Soft Beverages Website: Description: Founded in 1925, SFBT controls over 70% of Tunisia’s beer industry, over 60% of the country’s soda market and at least 40% of the mineral water market. As a local subsidiary of the Castel group, the company produces some of Tunisia’s most favorite beer brands namely Celtia, Stella Black and 33 Extra Dry. In the soft beverages sector, SFBT is the authorized bottler of Coca-Cola and produces the company’s popular brands such as Coke, Fanta and Sprite. It also produces a range of its own soda brands such as National Soda and Boga, which are also popular inTunisia. In 2018, SFBT became the first company listed on Tunis Stock Exchange to reach TND4 billion (about $1.45 billion) of market capitalization.

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90. Company Name: South African Breweries Country: South Africa Sector: Beverages Website: www.sab.co.za Description: The South African Breweries Ltd (SAB) is South Africa’s leading brewer, operating 7 breweries and 42 depots with an annual brewing capacity of 3.1 billion liters. Its portfolio of beer brands meets the needs of a wide range of consumers and includes brands rich in heritage such as Castle Lager, Hansa Pilsener and Carling Black Label. The company is part of the AB InBev family – which acquired SAB Miller, its original parent company in 2012. The brewer had planned to invest over US$328m in 2020 and 2021 but shelved the plans due to the prolonged alcohol ban witnessed in the country as a result of COVID-19. 91. Company Name: Star Breweries Country: Madagascar Sector: Alcoholic Beverages Description: With a rich history dating back some 73 years, Star Breweries is a leading brewer and bottling company in Madagascar. Apart from its own brands, the company has a brewing partnership with Castel and is the franchise bottler for Coca-Cola. The company has over the years launched new products to refresh and quench the thirst of the Malagasy people. Its Three Horse Beer, launched some 68 years ago, is the country’s favorite alcoholic drink.

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courtesy of its widely available range of products, produced at its N100 billion (US$257m) fully automated and state-of-the-art processing plant, which is located at Ososa, Ogun State that was commissioned in 2012.

TOP AFRICAN FOOD COMPANIES

2020

92. Company Name: Tanzania Breweries Ltd Country: Tanzania Sector: Alcoholic beverages Website: www.ab-inbev.com Description: Boasting of a rich history in Tanzania, Tanzania Breweries Limited has for almost 90 years quenched the thirst of Tanzanians with iconic beer brands including Castle and Kilimanjaro. The company’s contract farmer programme has been most impactful, helping develop the country’s agricultural sector while also providing stable sources of income to farmers. The brewer is partnering with World Food Programme to on-board over 4,000 sorghum farmers in its programme, and is building a new brewery in Dodoma, the country’s capital city, to add to its present plants in Dar es Salaam, Arusha, Mwanza and Mbeya. 93. Company Name: Trade Kings Group Country: Zambia Sector: Food and Beverage Website: www.tradekings.co.zm Description: Trade Kings Group, Zambia’s leading manufacturer of Fast-Moving Consumer Goods (FMCG), specialises in the production of food and beverage, home care and personal care products. Under the food and beverage segment,

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THE LISTING FROM A-Z the company operates five subsidiaries: Big Tree Beverages produces carbonated soft drinks, energy drinks, juices, water and non-alcoholic drinks; Big Tree Brands specialises in infant and family nutritional cereals and baking products; Dairy Gold manufactures dairy and traditional drinks; Swiss Bake produces baked goods; and Yoyo, a snack food manufacturing concern. Trade Kings recently commissioned a new milk processing plant to produce its first full cream fresh milk.

provision of human nutrition, animal nutrition and animal health products and services within Eastern Africa. The entity undertakes its operations through its subsidiaries Unga Limited, Unga Farm Care Limited and Ennsvalley Bakery Limited, producing well-known brands such as Exe, Famila, Jogoo, Amana, Fugo, among many others. The grain miller continues to invest in its grains and animal feed production infrastructure as it continues to set the pace in the sector in Kenya.

94. Company Name: UAC of Nigeria PLC Country: Nigeria Sector: Food & Beverage & Feed milling Website: www.uacnplc.com Description: UAC of Nigeria PLC (UAC) is a leading diversified company, operating in the food & beverage and animal feed sector. Its presence in the packaged food and beverage industry is through UAC Foods, a joint venture of UACN Plc of Nigeria and Tiger Brands of South Africa. The company is a leader in the snacks, dairy and bottled water segments in Nigeria with iconic brands such as Gala, Supreme and SWAN. For the animal feeds segment it operates two companies: Grand Cereals Ltd and Livestock Feeds Plc.

97. Company Name: Wilmar Africa Country: Ghana Sector: Edible oil Website: www.wilmar-international.com Description: Wilmar Africa Limited is one of the leading agro-business companies in Ghana involved in the refining, packing and distribution of edible oils such as the Frytol Cooking Oil brand. The company also undertakes importation of rice having introduced brands such as Fortune and Viking in the Ghanaian market. Bringing more choices to consumers, Wilmar recently launched Fortune Emo Pa Local Rice and Viking Emo Local Rice consisting of premium jasmine variety grown locally in the Volta region.

95. Company Name: Uganda Breweries Ltd Country: Uganda Sector: Alcoholic beverages Website: www.ugandabreweries.com Description: At 75 years, Uganda Breweries, a subsidiary of EABL, and by extension, Diageo, is older than the nation of Uganda and is among the most prosperous businesses in the Pearl of Africa. Through its farmer program, Uganda Breweries benefits over 17,000 farmers who are assured of a market and stable income. The company provides education scholarships and invests in water projects and tree conservation efforts,

98. Company Name: HMH-Rainbow Country: Uganda Sector: Poultry Website: www.yokuku.com Description: Before Yokuku, Uganda had a high demand for chicken which was not being fully met. There was no large integrated player in the sector and the supply chain was not reliable. Come Yokuku in 2013 and everything changed. The company which is owned by Hudani Manji and South Africa’s RCL built an integrated poultry facility, ramped up production, and in 5 years, production capacity had shot to over 1 million birds, a month. It has also entered Kenya where it has so far opened 5 shops, with plans for more.

96. Company Name: Unga Holdings Limited Country: Kenya Sector: Grains & Milling Website: www.unga-group.com Description: Unga Holdings is a market leader in the manufacturing and

99. Company Name: Yalelo Country: Zambia & Uganda Sector: Aquaculture Website: www.yalelo.com Description: Yalelo is a pioneer of aquaculture in Zambia, growing tilapia fish in the open waters of Lake Kariba.

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Founded in 2011, the company has grown quickly to become the leading fisheries business in the country and among the largest aquaculture businesses in Africa. Yalelo operates a vertically integrated business across the production, distribution, and retail of aquafeed and tilapia in southern and eastern Africa. In 2019 the firm had received a US$6 million equity investment from Finnfund to support its expansion. The firm has elso extended its reach into Uganda, where it is seeking to replicate its successful blue print in Africa’s largest water body, Lake Victoria. 100. Company Name: Zambeef Products Country: Zambia Sector: Meat, Dairy & Grain Milling Website: www.zambeefplc.com Description: Zambeef Products PLC is the largest integrated cold chain food products and agribusiness company in Zambia, with operations in Nigeria and Ghana. The group is involved in the production, processing, distribution and retailing of beef, chicken, pork, milk, dairy products, fish, eggs, animal feed, day-old chicks and flour. It also has one of the largest cropping operations in the country, growing maize, soybeans and wheat, used in its animal feed plants with a processing capacity of 300,000 tonnes per annum, flour milling businesses with a capacity to mill 26,000 tonnes of wheat per year and bakery unit with the capacity to bake 1.2 million loaves of bread. Under its cold-chain food segment, Zambeef operates five abattoirs, three feedlots, meat processing plant with a capacity to process over 100,000 cattle per year, chicken processing plant with a capacity of 8.8m broilers and dairy processing plant with a capacity 120,000 litres/day of milk, among many others. FBA

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COMPANY HIGHLIGHT

Flour Mills of Nigeria PLC Leading from the front in Nigeria

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lour Mills of Nigeria (FMN), is one of Nigeria’s leading companies with interests in food production, agricultural industries, packaging, port operations and logistics. Its journey started on the 29th of September 1960 as the pioneer wheat miller in Nigeria. The group set its machines rolling in 1962 at its first mill in the Local Government Area of Apapa with a grinding capacity of 500 metric tonnes of wheat per day. It was built at a cost of £2.5m financed by Greek and American capital through Southern Star Shipping Company. Today, the Apapa milling complex has a rated capacity of over 8,000 metric tons per day, making it one of the largest single site mills in the world. 2020 was a significant year for the FMN group, marking a significant milestone of celebrating 60 years of existence, a journey that has seen the company evolve and grow

tremendously from a single business flour miller into what is now one of the biggest brands in the foods and agroallied industry in Africa with its iconic Golden Penny brand of products. From a private limited liability company with a modest paid-up share capital of N1 million, FMN converted to a public company in November 1978 with beneficial interest in the company’s equity held by Nigerian and overseas shareholders. Its foreign shareholders include Excelsior Shipping Company Limited with 62.95% shareholdings and the balance held by over 75,000 individuals and institutional investors. Having the backing of investors, 1978 was also a notable year for the company as it made its first step of venturing into the agriculture sector with the acquisition of a 10,000-hectare farm in Kaboji, Niger state. This was part of its investment and expansion strategy designed to


COVER STORY: FOOD BUSINESS AFRICA TOP 100

create value in the supply chain and reduce the reliance on imported raw materials. Since then, it has made substantial investments in several other farms, downstream and upstream ventures to support its 5 key value chains of grains: oils and fats; sugar; feeds and proteins, and cassava starches, with added support from its out-grower schemes. In addition the company has ventured into the agro-inputs sector and also owns a segment in the logistics and support area that connects its businesses and industries with the rest of the market. The vertically integrated business with vast investments operates through its subsidiaries FMN Agro-Allied Ventures Nigeria, Northern Nigerian Flour Mills, Eagle Flour, Apapa Bulk Terminal, Golden Transport Division and Bagco. FOOD DIVISION IS MASSIVE FMN’s food division remains the flagship business and core strength of the group, as it has historically accounted for over 70% of revenue. An addition to the Apapa milling complex, FMN acquired the Northern Nigeria Flour Mills Plc, which has 3 manufacturing units with a combined capacity of 1,200 metric tons per day. Further beefing up the capacity of its food division, FMN took ownership of Nigerian Eagle Flour Mills. Products produced under the segment include wheat flour, balls foods, pasta and noodles all under the Golden Penny brand. Under its widest division, FMN Agro-Allied Ventures, the group strives to stay true to its mission of “Feeding the Nation, Everyday” by creating value along the entire food chain with its “farm-to-fork” model. Companies operating under the subsidiary include Premier Edible Oil Products, Agri Palm, Premium Cassava Products, Shao Golden Farms, Sunti Golden Sugar Estates, Premier Feed Mills, Kaboji Farms and Sunflag Farm. The Kaboji, which is its model 10,000 hectares farm, mainly focuses on production of maize and soy bean using quality inputs and supplying its feed, edible oil and food value chains with the much needed raw materials. FMN has invested up to N15billion in the companies supporting this value chain. Through Premium Edible Oil Products Limited (PEOPL), the group operates one of the largest new generation edible oil complexes in Africa as its downstream business in the oils and fats value chain, producing bottled vegetable oils, margarines and spreads still under the Golden Penny brand. Presently, PEOPL extracts premium soya oil from soybeans supplied from the firm’s Kaboji Farm and from aggregated supplies amounting to 100,000 third party farmers in North-Central and North-West Nigeria. The remaining soybean meal is used by its Premier Feed Mill operations in Ibadan and Calabar where it is converted to poultry and aqua feed. Premier Feed Mills Limited, is the producer of Topfeeds

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brand, the leading poultry and aqua feed in Nigeria. The company operates a fully automated feed factory with a 300,000 tonnnes per year animal feed mill in Ibadan, Oyo State. It also has another branch in Calabar, the Eastern Premier Feed Mills Limited, a world class feed mill facility with a total installed capacity of 370,000 metric tonnes per annum, with a capability to produce and bag three different types of feeds simultaneously. Through its Agri Palm plantations, an upstream business in oils and fats value chain, the group provides the needed crude palm oil for Premium Edible Oils Mills Limited from its Ugbogui and Iguiye Palm Plantations near Benin City in Edo State. The plantations had expanded to about 4,500 hectares of established palm in the first phase of local palm oil production fulfilling some of the upstream needs of FMN’s oil refining operations in Ibadan. With the acquisition of additional 20,000 hectares of arable land, the company has set Agri Palm on the path of being one of the largest oil palm plantations in Nigeria. CASSAVA VALUE CHAINS AND MORE The starch value chain on the other hand is supported by Premium Cassava Products Ltd (PCPL), one of the largest processors of locally grown cassava tubers in Nigeria and is known for consistently producing high quality cassavabased products. The business is located in Ososa, Ogun state and supports over 2,000 farmers through the direct

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purchase of their cassava tubers, outgrower schemes and contract farming, hence playing a key role in the development of the Nation’s agricultural sector. At full capacity, PCPL processes over 60,000 metric tonnes of cassava tubers annually and produces close to 15,000 MT of industrial starch, high quality cassava flour and garri. The value chain also gets backing from Shao Golden Farms, an upstream subsidiary and one of the largest commercial cassava farms in Nigeria with over 5,000 hectares of arable land. For its sweetener division, FMN operates the Sunti Golden Sugar Estates (SGSE), Nigeria’s most productive backward integration effort and has gained national prominence as the shining light of the National Sugar Master Plan (NSMP) towards the attainment of locally produced and refined sugar. The estate is a 16,500-hectare cadastral area, which comprises of a mill and farm located on the banks of the Niger in Mokwa, Niger State. The mill has a current capacity of 600,000 tons of cane per season expandable to 1 million tons of which roughly translates into 100,000 tons of sugar yearly. Commissioned in June 2013, the Golden

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LOGISTICAL SUPPORT BUSINESSES Apart from food business and the agro allied industry, FMN owns a segment in the logistics and support nerve that ensures the smooth running of the various chains and webs of the businesses. In 1978, the company invested in BAGCO, a pace setter in woven polypropylene sack manufacturing. With its two giant plants at Lagos and Kano, BAGCO supplies to many industrial and agro-allied companies in Nigeria in the packaging of flour, cement, grains, and other products In 2005, the Apapa Bulk Terminal Limited was incorporated and is a fully owned subsidiary of FMN Plc., that was set up as a Special Purpose Vehicle to take advantage of the concession granted by Nigerian Ports Authority/Bureau of Public Enterprises to manage and operate Terminals A and B of the Apapa Port Complex. The terminal provides a spectrum of facilities in terms of consolidations, warehousing, open storage areas, packing, repair facilities and even office complexes. Further investing in the logistic sector, Golden Transport Company Limited was established to create effective nationwide haulage and distribution networks that enable sister company’s products to reach their customers on time and in excellent condition.

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Sugar Company owns a state of the art N40 billion sugar refinery. With a production capacity of 750,000 tonnes of sugar, it is one of the largest facilities in Africa. Last under the agro-allied business is the Agro-input value chain made up of Golden Fertilizer Division and Golden Agri Inputs Limited (GAIL). Through this value chain, FMN provides a platform for a closer interaction with farmers, providing them with inputs such as seeds, fertilizers, storage solutions, agronomic support and agricultural extension services. Golden Fertilizer Company Limited has a capacity of 450,000 tonnes per annum at its blending facility in Lagos and Kaduna and a wide distribution network. This is supported with the 4,500-hectare farm of the Sunflag Farms Limited along the Niger River basin that is used for seed development programmes. The organisation also operates in the farming, fishing and plantations sector.

TOP AFRICAN FOOD COMPANIES

2020

THE COMPANY CELEBRATED ITS 60YEAR ANNIVERSARY IN 2020

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COMPANY HIGHLIGHT

Heineken Breweries SC: Bringing international brewing expertise to one of Africa’s last frontiers - Ethiopia

HEINEKEN ETHIOPIA'S NEW KILINTO BREWERY IN ADDIS ABABA IS ONE OF THE MOST MODERN IN THE COUNTRY

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hen Dutch multinational brewing company Heineken N.V entered Ethiopia in 2011, the beer industry was dominated by state owned brewing companies. Only the French brew masters, Groupe Castel had made an attempt at penetrating the vast, largely untapped market, that is home to one of the largest populations in Africa. The state owned breweries were largely inefficient and beer was in short supply and expensive. Only the rich could drink premium beers. Average Ethiopian drinkers were locked out of the premium beer market and left to only enjoy their traditional brew known as Tella in Amharic or Siwa. Heineken however wanted everyone to enjoy good quality beer at affordable prices. It first entered into a distribution agreement with Kangaroo Plast, a local company, and later fully immersed itself into the country’s 112

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beer industry through the acquisition two local breweries Harar and Bedele in 2012. These acquisitions were the first step in a journey to becoming the leader in Ethiopia’s beer industry. After spending about US$200 million in acquiring the two run-down state-owned facilities, Heineken spent another US$44.5 million in refurbishing and upgrading the facilities to international standards. With the new improved facilities, Heineken embarked on producing the Harar and Bedele beer brands in the two facilitates while preparing to launch new products in future. Heineken’s plans were however bigger than these two facilities, and to realize these plans, it embarked on building a new brewery at Kilinto, just outside Addis Ababa, which upon inauguration in 2015 was the country’s largest brewery. With modern facilities, the new Heineken Kilinto FOODBUSINESSAFRICA.COM


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has seen two new European malting giants Soufflet and Boormalt build new malting plants in the country – which will further boost local production and processing of the critical ingredient for the booming beer industry. Breweries are major consumers of water and wherever they are located, there is potential for conflict with surrounding communities – especially in Ethiopia, where water scarcity is a growing concern. Heineken is working to ensure communities have increased access to water. Since 2013, it has for instance been investing in water projects in the Harar region, which target to benefit at least 300,000 inhabitants. The company has also entered into an agreement with World Vision to improve water balancing and livelihoods in Bedele and Harar. In the agreement, Heineken has committed to return to the watershed the water that goes into its product or evaporates during its beer processing. Heineken’s investments in Ethiopia is a demonstration of the brewery’s commitment to the country and its people. It not only expanded its beer capacity to churn out more beer but also in invested in the Ethiopian people through the CREATE program and the Brewing a Better Ethiopia program. Its presence in Ethiopia has not only reinvigorated the beer industry but also positively impacted its host communities. These activities make it a true leader in Africa’s food industry and earn it a position in the Food Business Africa Top 100 listing. FBA

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brewery started producing a new beer known as Walia, which was launched by Heineken in 2014 and has since become a house hold name drawing patronage from all corners of the vast country. Today, Walia is Heineken’s most successful brand in Ethiopia. As standards in the Ethiopian breweries improved, Heineken started producing its flagship brand Heineken Premium Lager in Ethiopia in 2016. Ethiopian thus became the 7th country in Africa where Heineken was locally produced. The company’s leadership position in the country’s beer industry is not just the only thing making Heineken feature in our list of top 100 food companies in the continent. Heineken is also big on sustainability and has arguably positively impacted the communities in Ethiopia more than any other beer company with operations in the country. Two years after launching in Ethiopia, Heineken launched the Community Revenue Enhancement through Agricultural Technology Extension (CREATE) project. Through CREATE, Heineken contracted smallholder farmers to produce barley for its beer. Most breweries in Ethiopia import almost all their raw materials from Europe. Heineken is however not just giving people beer to drink, it’s empowering communities through the CREATE programs, creating a reliable source of income for more than 24,000 farmers across the country. This project, together with the good work by the Government’s Agricultural Transformation Agency has boosted local production of barley in the country, which

TOP AFRICAN FOOD COMPANIES

2020

THE COMPANY'S NEW RANGE OF PRODUCTS INCLUDE LOCAL BEER BRANDS AND A MALT DRINK. THE FLAGSHIP BRAND HEINEKEN IS ALSO BREWED IN THE COUNTRY

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YINKA OGUNDANA

Plant Manager FrieslandCampina WAMCO Nigeria PLC Describe your current role, your key responsibilities and the most critical deliverables? What are the most important skills sets in achieving success in your role? Currently as a Plant Manager, my role entails end-toend responsibility, from raw materials to every form of resources required to produce quality dairy nutrition products for our consumers. This requires raw materials coming in at the right time in the right quality specifications, involving good manufacturing practice, and that the entire process runs at specific and set food quality standards and that are produced at the most minimal cost possible. I also ensure that these products are made readily available ontime-in-full (OTIF) at the right quality. My critical deliverables entail ensuring we meet the market demand volume in the right product mix and that this is achieved at competitive conversion cost, reduced losses and right quality.

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It is impossible to drive all these without people being engaged, motivated, coached and led. Some of the key skills required apart from process knowledge and highlevel problem solving and decision-making skills, is to have courageous conversations and take courageous decisions. You need to lead your team beyond their limits, and you need to be convincingly able to communicate this to your team. Impossible does not exist! Tell us about your company FrieslandCampina WAMCO Nigeria PLC is Nigeria’s foremost leader in the dairy space and market leader, an affiliate of Royal FrieslandCampina in The Netherlands. For over 60 years, FrieslandCampina WAMCO has been providing high quality dairy products through its brands, Peak, Three Crowns and Friso; these brands have become household names. Over the years, we have defined

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EXECUTIVE PROFILE: YINKA OGUNDANA

our involvement in Nigeria by addressing three global challenges: nutrient security, sustainability and support for farmers. At the heart of the Company’s operations in Nigeria is the passion to make quality dairy nutrition affordable and accessible, which is strongly rooted in the company’s mission statement of nourishing Nigerians with quality dairy nutrition. This mission is made possible by the company’s innovativeness and extensive distribution network across Nigeria. FORTUNE FAVOURS THE BOLD! I HAVE TAKEN SOME BOLD CAREER STEPS THAT HAVE TURNED OUT WELL FOR ME. HOWEVER, IT TOOK A LOT OF HARD WORK, COMMITMENT, DRIVE AND A TOUCH OF THE DIVINE TO EVENTUALLY MAKE A GREAT STORY OUT OF IT ALL

FrieslandCampina WAMCO has continued to play a leading role in the production, processing, packaging, marketing and distribution of various milk products in Nigeria; being the pioneer of local manufacturing of evaporated milk and the introduction of fortified milk products in Nigeria. Over the last few years, FrieslandCampina WAMCO has invested significantly in capital expenditure, including a new warehouse and a world-class Learning Academy to build capabilities across functions and to drive talent development. Recently, the company commissioned a state of the art plant for local production of Peak Yoghurt, which is directly linked to its highly successful dairy development program; a major investment that has been at the center of Nigeria’s backward integration in local milk sourcing over the last decade, with over 9,000 local farmers spread across 5 States in Nigeria FrieslandCampina WAMCO recently completed the purchase of Nutricima’s dairy business in Nigeria. Nutricima Limited was founded in Nigeria in 2005 and has earned itself consumer awareness within the dairy industry since then. FrieslandCampina WAMCO has acquired the company’s production facility in Ikorodu, Lagos State and the brands Olympic, Coast and Nunu, a range of powdered, evaporated and ready to drink milk products. These brands have a good presence across the Nigerian dairy market. This acquisition underlines Friesland Campina WAMCO’s continued commitment to contribute to the development of the Nigerian dairy sector and satisfies the need for additional production capacity for FrieslandCampina WAMCO to meet the growing demand for locally produced evaporated and powdered milk by Nigerian consumers. FrieslandCampina WAMCO aims to keep milk affordable in Nigeria, ensuring access to quality milk, fortified with

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the required nutrients; and enlightening consumers on how to make healthier choices and live an active lifestyle. Our Company will maintain its No.1 position as the nation’s leading milk manufacturing company by investing in its people, products and by being an excellent corporate citizen. Briefly, what is the typical day like in your role and company? How does your company fit in with your career goals? A typical day for me usually involves me spending quite some time on the production floor, ensuring processes are running smoothly, constantly engaging with the team, providing support and having a number of meetings to clarify activities are on track and most definitely to solve arising issues. The vision and mission of FrieslandCampina WAMCO Nigeria is very clear and what drives it for me is affordable nutrition for all, most especially to the bottom of the pyramid (BOP) and we all know that MILK is nutritious and could serve as a complete meal; this knowledge drives me everyday I go to work. What have been your previous roles before the current one? How important were those roles in shaping your current role? I actually started my role as a management trainee in the company. After my confirmation, I became a Shift Production Manager in the Evaporated milk factory, and then I worked in the can making factory. I then worked on a SAP implementation project for the entire company, after which I relocated to Europe and moved into continuous improvement in some sites in the north of the Netherlands. I came back to Nigeria, where I led a continuous improvement project that yielded over Euro 3 million savings in 3 years, while at the same time implementing performance control systems across the factories highlighting and enabling the right mind set and behaviour required to be world class. With this success, I relocated to Europe within the business group to implement continuous improvement initiatives in some factories, this time south of the Netherlands. I eventually returned to Nigeria to lead one of our factories as the Plant Manager. What have been the key turning points in your career? Have you ever had a change in career direction? If so, how did you handle the change? What lessons did you derive from this change? Fortune favours the bold! I have taken some bold career steps that have turned out well for me. However, it took a lot of hard work, commitment, drive and a touch of the divine to eventually make a great story out of it all. My move out of production into continuous improvement was not planned, I had just given a presentation and

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EXECUTIVE PROFILE: YINKA OGUNDANA

forward to going home, every day. What challenges do you face in delivering on your current role and how do you overcome them? I would say, the impact of the recent pandemic has increased the stakes, redefining global supply chain, foreign exchange availability, which have impacted on time delivery and cost of raw materials. As a team, we have ensured to retain a flexible work structure, and at the same time ensure we optimize production process at higher efficiencies. What is the status of the sector in which you operate in the region and Africa and what do you think are the opportunities, challenges and market trends in the sector? The dairy sector in Nigeria is huge and still growing, as we continue to have new entrants into the sector, most especially the milk powder segment. Clearly, opportunities exist, demand is there and has the potential to keep growing; even if impacted by the pandemic, the segment continues to thrive. How do you wind down after a hard day at work? What are your personal hobbies? How do these hobbies contribute to your personnel and professional development? I like to unwind with good music, watch an interesting movie or read a book or an inspiring story.

someone saw it and asked that I be on his team, and this was how I really moved into continuous improvement. Some of the lessons I would like to share are these: Not all careers happen as per planned, however, the most important is this: whatever roles, task, responsibilities lie in front of you, ensure you immerse yourself in it, give it everything. Your best might not be enough, so stretch yourself and give it all it requires. In your stretching, you become made, once you conquer your space, your nextdoor will surely open. Help people to grow, ensure you always add value, don’t waste company’s time, know who you are and be yourself. What makes your role interesting? What do you enjoy most about your role? What has been the role of mentors and family in the achievement of your professional goals? You can never copy-paste a day on the factory floor; it changes so fast and you need to keep up. In my role, quick decision-making is required 24 hours, 7 days a week; it could be quite exciting and challenging. I have been fortunate to have few people with like-minds who have been able to counsel and guide me from timeto-time and this I have found to be pivotally beneficial. My family is always the covering I return to everyday and I look

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What are some of the personal or community activities you engage in to develop yourself or your community? I currently engage in a global supply chain group with main ties with MITx, where ongoing engagements and discussions on course works and other supply chain topics and trends are done. How can young people who may aspire to a career choice like yours plan their journey? What advice would you give them to succeed in their careers and life? Be open minded, be willing to learn. I would like them to understand that no knowledge is wasted and advice them to give all to whatever they have in front of them, even if it’s not what had planned for or what they wanted to be. It is a phase and it will pass. Keep on stretching, stay humble, stay hungry, always. What else would you want to do in the future? What would you want to accomplish in your career before you step away from the industry? I believe I can still contribute my quota to continuously innovate manufacturing processes in the supply chain space in Nigeria and also globally, as well as impacting young minds to be purposeful leaders and aspire for greater heights. FBA

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Food Business Africa Jan/Feb 2021  

Africa's No. 1 Food, Beverage & Milling Industry Magazine. In this Issue: Food Business Africa Top 100 African Food Companies | My Company P...

Food Business Africa Jan/Feb 2021  

Africa's No. 1 Food, Beverage & Milling Industry Magazine. In this Issue: Food Business Africa Top 100 African Food Companies | My Company P...