A F R I C A ’ S
N O . 1
F O O D ,
B E V E R A G E
&
M I L L I N G
I N D U S T R Y
M A G A Z I N E
BEST TROPICAL FRUITS COUNTRY FOCUS: ZAMBIA SUGAR REDUCTION COMPANY FEATURE
GIANT MILLERS LIMITED
Canna brand maker gives Kenyans a taste of safe and nutritious maize meal WWW.FOODBUSINESSAFRICA.COM
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CONTENTS
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Food Startups Africa: Best Tropical Fruits
YEAR 9 | ISSUE NO. 51 MAR/APR 2022
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My Company Profile: Giant Millers
Canna brand maker gives Kenyans a taste of safe and nutritious maize meal
Best Tropical Fruits leverages on unique processing concept to drive rural-economy development
58 Country Focus: Zambia Unlocking Zambia’s agricultural potential through smart investments in agro-processing
ON THE COVER Agnes Irungu, Managing Director, Giant Millers Ltd 2
MARCH/APRIL 2022 | FOOD BUSINESS AFRICA
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CONTENTS
YEAR 9 | ISSUE NO. 51 MAR/APR 2022 REGULARS
8 10 14 22 22
Editorial Events Calendar News Updates Supplier News & Innovations Appointments Updates
OTHER PUBLICATIONS 28
New Product Innovations: Chi Limited: Chivita Active Zest | Tomato Jos: Tomato paste | Distell Group: Chilli flavored Savannah Cider | Tolaram Nutri Beverages: Goodlife Zobo Ginger |Kenya Breweries Limited: WhiteCap Crisp | Hariss International: New confectionery line
DAIRY BUSINESS AFRICA 47 Cheese makers innovate as market impacted by consumer taste changes and Covid-19 pandemic BEVERAGE TECH AFRICA 53 Ready-to-drink beverages evolve into trendier, highly functional, and premium products MARKET TRENDS 63 Natural sweeteners edge out synthetic alternatives in race towards zero sugar INDUSTRY REPORT 69 Ethiopia’s dairy industry, a tale of differing scenarios: opportunities masked by challenges FOOD NUTRITION & HEALTH 74 Moderate alcohol consumption does not benefit heart health, but 2 servings of Avocado does FOOD INGREDIENTS 77 Evolving food flavour appetite inspires unique combinations
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EDITORIAL
Ukraine crisis is a wakeup call for Africa to do something about food security
Year 9 | Issue 2 | No.51 • ISSN2307-3535
FOUNDER & PUBLISHER
Francis Juma EDITORIAL
Catherine Wanjiku | Paul Ongeto ADVERTISING & SUBSCRIPTION
Jonah Sambai | Virginia Nyoro DESIGN & LAYOUT
Clare Ngode 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
Food Business Africa (ISSN 23073535) 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.
A
conflict thousands of miles away from the continent has exposed Africa’s dependence on imports and amplified an already prevailing food crisis. Russia’s brutal invasion of Ukraine maybe a European problem, but its impact is being felt in the dinner tables of many African families even in villages as remote as Mankosi, in South Africa's Eastern Cape province. For while many in the continent have no knowledge about the war or are apathetic about it, its existence has caused global food prices to soar reaching a historic peak in March. Both Russia and Ukraine are among Africa’s most important suppliers of key staples and fertilizers. Wheat imports account for about 90% of Africa’s US$4 billion trade with Russia and nearly half of the continent’s US$4.5 billion trade with Ukraine, according to the African Development Bank. Ukraine also exports 40% or 16 million metric tonnes of Corn to the continent. The European country is also a key supplier of oil seeds used in the production of vegetable oil. Russia’s blockade of Ukrainian ports has disrupted food commodity shipments into the continent at a time when global stockpiles were already tight. Sanctions against Russia have further exacerbated the problem as the country is not able to easily trade its own food shipments. The result is a shortage of food commodities and out of the roof prices that makes food security elusive in a continent where it is already hard for about 283 million people who are already going hungry. TAPPING AFRICA’S AGRICULTURAL POTENTIAL Its however difficult to imagine that a continent believed to be home to 60% of the world’s arable land can
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MARCH/APRIL 2022 | FOOD BUSINESS AFRICA
still be overly dependent on food imports to feed its population. If ever there was a time to drastically raise food production in Africa, it is now. A report published in the Proceedings of the National Academy of Sciences and cited by Reuters noted that it is possible for the continent to feed a population expected to grow 2.5 times by 2050 by producing more food on the land already being planted. This would need investment to boost crop yields, an increase the number of crops grown on the same plot of land, and an expansion of irrigation. Africa should also seriously consider putting in place infrastructure to get rid of postharvest losses which account for between 30% and 50% of the total agricultural output in the continent. Most of investments should go to the stages between the production and retail stages of the supply chain where most of these losses occur. FOOD VALUE ADDITION CHAMPIONS In this issue of the magazine, we explore Zambia, a country in the Southeastern part of the countinent, making food security strides particularly in agricultural production and value addition. Our cover story, Giant Millers, is a testimony to the opportunity the African food industry offers when you make your product the right way. We also feature Best Tropical Foods, a Kenyan startup fighting post-harvest losses by converting tropical tree fruits into high value products. We also explore the status of Ethiopia’s dairy industry among other insightful articles on the latest happenings in the food industry in Africa and Beyond. We wish you a delightful read. Francis Juma Publisher
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EVENTS CALENDAR
May 2-13, 2022 Vitafoods Europe Geneva, Switzerland Focus: nutraceutical www.vitafoods.eu.com/en/home.html May 11-13, 2022 World Nut and Dried Fruit Congress Dubai, UAE Focus: Nuts & Dried fruits www.nutfruitcongress.org/dubai2022
May 19-21, 2022 International Coffee & Tea Industry Expo Singapore Focus: Coffee & Tea wwwwintlcoffeetea-asia.com May 23-26, 2022 Sweets & Snacks Expo Chicago, USA Focus: Confectionery www.sweetsandsnacks.com
Addis Ababa, Ethiopia Focus: Agriculture & Food processing www.agrofood-ethiopia.com June 9-11, 2022 Snack & BakeTec Mumbai, India Focus: Baking & Baked goods www.snackbaketec.com June 14 – 16, 2022 Food & Beverage West Africa Lagos, Nigeria Focus: Food & Beverage www.fab-westafrica.com
May 14-19, 2022 IFFA-Delicat Frankfurt, Germany Focus: Meat & Alternative Protein www./iffa.messefrankfurt.com/ frankfurt/en.html
May 24-28, 2022 Thaifex - Anuga Asia Bangkok, Thailand Focus: Food & Beverage www.thaifex-anuga.com/en/
May 18-20, 2022 Seoul Int'l Seafood Show Seoul, South Korea Focus: Sea Food www.seoulseafood.com:491/eng/ exhibition/info.asp
May 29-31, 2022 Africa Food Manufacturing Cairo, Egypt Focus: Food & Beverages www.africa-foodmanufacturing.com/ en/Home.html
May 18-19, 2022 F&A Next 2022 Wageningen, Netherlands Focus: Food & Agribusiness /www.fanext.com
May 31-June 02, 2022 Food Ingredients China Shanghai, China Focus: Food Ingredients www.b-for.com/events/fic-2022
May 18 – 20, 2022 SIAL China Shanghai, China Focus: Food & Beverage /www.sialchina.com
June 4-5, 2022 Planted Expo Vancouver, Canada Focus: Plant based www.plantedlife.com/vancouver
May 19 – 21, 2022 East Africa Bakery & Pastry Expo Nairobi, Kenya Focus: Bakery & Pastry www.eastafricachef.com
June 8-9, 2022 Organic Food Iberia Madrid, Spain Focus: Food & Beverages www.organicfoodiberia.com/en/
June 15-17, 2022 GrainTech Africa Nairobi, Kenya Focus: Grains & Milling www.graintechafrica.com June 22-24, 2022 Africa Food Safety & Quality Summit Nairobi, Kenya Focus: Food Safety www.foodsafetyafrica.net/summit June 22-24, 2022 AFMASS Youth Summit Nairobi, Kenya Focus: Food & Beverages www.afmass.com/nextgen July 06-08, 2022 Malaysian International Food & Beverage Trade Fair Kuala Lumpur, Malaysia Focus: Food & Beverage mifb.com.my July 10-13, 2022 IFT Annual Meeting & Food Expo Chicago, USA Focus: Food & Beverages www.iftevent.org
June 8-10, 2022 Ethiopia Agrofood
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NEWS UPDATES by www.FoodBusinessAfrica.com FUNDING
Tanzania based cashew processor YYTZ cliches US$1.3m financing
YYTZ, a Tanzanian cashew processor has closed its extended series seed funding totalling
TANZANIA –
US$1.3m that was running in 2020 and 2021. The round saw participation of Global Partnerships/Eleos Social Venture Fund, Segal Family Foundation and existing investors HRSV and FINCA Ventures. In addition to the fund raising, YYTZ also clinched a working capital facility from the Rabobank Foundation. The capital raised is aimed to accelerate YYTZ’s investment into packaging and storage infrastructure
in Zanzibar, as well as the development of more product SKUs and onboarding of new regional and international customers. “With the disruption of traditional supply chains and rising shipping costs, it is now the best time for Africa to process its own cashews; shortening lead times while reducing the shipping cost and carbon footprint and creating more value at origin,” said Fahad, founder and chief cashew officer of YYTZ.
ACQUSITIONS
Nigerian palm oil processing firm Presco eyes full ownership of Siat Nigeria Limited Presco Plc, a fully integrated oil palm processing firm in Nigeria, is seeking to take full ownership of its sister company Siat Nigeria Limited (SNL), a subsidiary of Belgian group Siat SA. According to the Nigerian Stock Exchange listed company, the transaction will concern all the shares of SNL held by Siat SA amounting to 7,330,965,143 for a unit price of N2.86 for a total cash consideration of N21 billion (US$50m). The strategic move by Presco is aimed to drive sustained longterm growth and profitability of the company.
and downstream of the palm oil production chain to strengthen its presence on the Nigerian market, which is the largest on the African continent
NIGERIA –
The decision to proceed with the acquisition will be taken by the minority shareholders of Presco since its capital is also majority owned (60%) by the Siat SA. Following the acquisition, Presco intends to gain in scope both upstream
THE MOVE BY PRESCO IS AIMED TO DRIVE SUSTAINED LONGTERM GROWTH AND PROFITABILITY OF THE COMPANY
ACQUSITIONS
SAB to pump US$63.2m in two South Africa based breweries to ignite economic growth SOUTH AFRICA – The South African Breweries (SAB) seeks to invest a further R920m (US$63.2m) into its Prospecton and Ibhayi breweries, reaffirming its commitment to ignite the South African economy. Its Prospecton Brewery in Durban will receive the lion share of the investment with a total of R650m (US$44m) that will help expand its facilities. 10
MARCH/APRIL 2022 | FOOD BUSINESS AFRICA
A further R270m (US$18.5m) of the funds will be committed to upgrading SAB’s Ibhayi Brewery which is in the Eastern Cape. These investments, brings SAB’s total South African investment commitment to R4.5 billion (US$309m) – adding impact to an industry that already contributes 1.3% of the national GDP and sustains over 250 000 jobs. FOODBUSINESSAFRICA.COM
November 17-19, 2022 Sarit Expo Centre, Nairobi, Kenya
THE BIGGEST HEALTHCARE & PHARMA EXPO IN EASTERN AFRICA
WHAT’S ON SHOW AT THE EVENT Africa
Hospitals & Care Expo
Africa
Medical
Africa
Medilab
Why the Kenya Nutrition, &Diagnostics Devices Health &Expo Expo Wellness Exhibitions
General & Specialty Hospitals • Medical Clinics & Consultancies • Ambulance & Emergency Services • Care & Rehabilitation Centres • Mental Health Care Centres • Wellness Centres • Food Supplements & Nutraceuticals Diet and Weight Loss Products • Baby Health & Food Products • Natural, Organic and Nutritious Foods
Electrical Medical Equipment • Patient Monitoring Equipment • Surgical Equipment • Storage & Transport Solutions • Patient Mobility & Support Solutions • Acute Care and Procedural Equipment • Mobility, Software and Logistics Solutions to Hospitals etc • Consumables for use in Medical Facilities
Medical Laboratory and Diagnostics Services • Testing, Consultancy and Training Services • Diagnostic Equipment and Solutions • Medical Laboratory and Diagnostics Consumables • Sanitation, Cleaning and Hygiene Solutions
The Kenya Nutrition, Health & Wellness Exhibitions are a range of weekend consumer expos and seminars that are targeted at creating and improving the consumer Africa awareness on healthy living and general well being. Africa Health Nutrition Supply Chain & Animal TheHealth expos are held over Logistics the weekend to ensureHealth the & Wellness & Care Expo Expo Expo attendance of the entire family. Baby and Mother Care Products Aviation, mobility solutions and Africa
Animal Health Products • Pet Nutrition & Products • Veterinary Services and Products • Equipment and Services for Animal and Pet Care
services • Warehousing and Storage solutions • Cold chain Solutions • Contract packaging • Traceability systems • Supply chain optimisation solutions • Supply chain and logistics software and systems • Security, track and trace systems • Fraud detection systems etc.
and Services • Food Supplements • Vitamins And Minerals • Botanicals and Tinctures • Personal Care & Beauty Products • Personal Wellness Services • Exercise and Fitness Products and Services • Cosmetic and Reconstructive Surgery • Diet and Weight Loss Products
The goals of the Kenya Nutrition, Health & Wellness Exhibitions are: • Provide a forum for food and beverage processors, distributors and importers to interact directly with Africaof informing the consumers Africa consumers, with a goal Africa Health Healthtech & Financing Pharma of the unique features and benefits of their products Insurance Expo Expo Expo in relation to healthy eating& Packaging and living;ICT and software solutions • Pharma Manufacturing Financial services • Insurance & Solutions • Supply Healthtech apps and systems • services • Consultancy and • Provide a forumEquipment for and providers of• health, personal Chain Storage Solutions Digital health technologies and capacity building in financial Construction, Plant and Infrastructure services • New technologies such services • FinTech and InsurTech Installations • Mobility, Software and and home hygiene products to interact directly as IoT, AI, VR/AR,with blockchain, software and technologies Logistics Solutions • Utilities and etc. • Payment systems and Support Services and Equipment technologies • Inventory consumers • Refrigeration, Hvac Systems • management solutions • Renewable Energy & Sustainability Cybersecurity applications • Bring together medical, nutritional, healthcare and etc. Solutions wellness experts and practitioners face to face with consumers to discuss disease management, lifestyle choices, diet management, wellness goals info@fwafrica.net and practices with a view to imparting the right knowledge the consumers; +254 725 to 343932 • Provide a platform for a number of industry www.expo.healthcareafrica.info associations and corporates to interact with consumers and the community, with a view to
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CORPORATE SOCIAL RESPONSIBILITY
ACQUISITION
PepsiCo sub-Saharan Africa launches employee share ownership plan
SOUTH AFRICA - Food and beverage company PepsiCo sub-Saharan Africa (PepsiCo SSA), has launched Bašumi Trust, a R1.6 billion (US$109m) Broadbased Black Economic Empowerment (BBBEE) employee share ownership plan (ESOP). The establishment of the trust forms part of the public interest commitments made to the South African government at the time of PepsiCo’s acquisition of local
Pioneer Foods in 2020 to support broad socioeconomic imperatives of employment, empowerment and talent development. The Bašumi Trust complements Pepsico SSA’s recently launched Kgodiso Development Fund, which aims to benefit local suppliers and emerging farmers through a R600million (US$40.9m) investment in programmes to promote opportunity and growth in South Africa. While the Kgodiso Fund is focused on industry empowerment, the Esop is focused on employee empowerment. The trust owns R1.6 billion (US$109m) in shares in the US giant PepsiCo, which is listed on the Nasdaq in New York. Each participant, who are the employees, are allocated one unit in the trust and they receive proceeds from the shares in the form of annual dividends and milestone distributions.
DIVESTMENTS
McDonald’s leads mass exodus from Russia as Nestle, Danone vow to stay put RUSSIA – World’s largest restaurant chain McDonald’s has led other western food companies in a mass exodus from Russia in protest of the country’s invasion of its neighbour Ukraine. Other major companies one the list include Dutch brewing giant Heineken, its Danish counterpart Carlsberg and New Zealand dairy giant Fonterra. Heineken which employs 1,800 people in the country is expected to suffer a loss of approximately €400 million as a result of it leaving the Russian market. American beverage companies PepsiCo and Coca-Cola have also suspended their operations in the country while Yum Brands, the owner of KFC restaurant franchise, 14
and coffee chain Starbucks have all paused their investments in Russia. World’s largest food company Nestle, and its peers Danone and Unilever have however vowed to remain in Russia on humanitarian grounds. The companies said that they had paused their investments in the country but will continue to supply essential food items to ensure ordinary Russian had access to nutrition.
MARCH/APRIL 2022 | FOOD BUSINESS AFRICA
Coca-Cola Beverages Africa to snap up Castel Malawi’s soft beverage unit SOBO MALAWI – Castel Malawi Group, a leading producer and distributor of alcoholic and non-alcoholic beverages in Malawi, has agreed to offload its soft beverage unit, Southern Bottlers Limited (SOBO) to Coca-Cola Beverages Limited a subsidiary of Coca-Cola Beverages Africa. SOBO produces Coca-Cola, Fanta, Sprite, Cherry Plum, Cocopina, SOBO Squash and several others brands in the South African market. According to Castel Group’s Managing Director, Herve Milhade, “This is a good opportunity for the
SOBO PRODUCES COCA-COLA, FANTA, SPRITE, CHERRY PLUM, COCOPINA, SOBO SQUASH, AND SEVERAL OTHER BRANDS IN THE SOUTH AFRICAN MARKET country, the soft drinks industry and the business, as the CCBA group has a strong track record on the continent and is committed to sustainable growth where it operates.” CCBA is the 8th largest CocaCola bottling partner in the world by revenue, and the largest on the continent, accounting for 40 percent of all Coca-Cola products sold in Africa by volume. The transaction is subject to obtaining the necessary regulatory approvals, including approval by the Common Market of East & Southern Africa (COMESA) Competition Commission. Castel Malawi’s parent company Castle Group has already given nod to the deal. FOODBUSINESSAFRICA.COM
Afmass
FOOD EXPO
NOVEMBER 24-25, 2022 ADDIS ABABA ETHIOPIA
ETHIOPIA EDITION
DISCOVER ETHIOPIA’S FOOD INDUSTRY Join us on the journey of discovery of Ethiopia, as we host the first regular, pure-play food industry trade expo and conference in Ethiopia - AFMASS Food Expo Ethiopia.
Africa’s fastest growing economy, Ethiopia’s food, dairy, beverage, milling and other sectors have seen tremendous growth over the last 10 years - and more is on the way as Ethiopia seeks to boost local processing of food products and increase regional and global markets for its vast produce. Sign up today to Sponsor, Exhibit, Attend or Speak at AFMASS Food Expo Ethiopia.
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NEWS UPDATES
BRIEFS Rite Foods expands market share by attaining globally recognized Halal Certification NIGERIA – Rite Foods Limited, Nigeria’s leading manufacturer of carbonated soft drinks, premium table water, energy drink and sausage rolls, has been certified by the Halal Certification Authority. Halal Certification Authority is a faith-based products certification body that develops Halal product standards and conducts inspection in accordance with Islamic Law that is Internationally accepted and reliable for both domestic and foreign consumers.
The certification ratifies that all thirteen variants of Nigeria’s favourite carbonated soft drink, Bigi drinks, Bigi premium water, Fearless Energy Drink, Rite and Bigi sausages complies with Halal requirement. Going forward, all products of Rite Foods Limited will carry the Halal mark, assuring consumers globally that the products served are hygienic, healthy and follows Halal procedures. This has opened doors for the company’s products aimed at about 1.8 billion consumers globally, to be traded in 117 countries that require products to be Halal certified.
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ANIMAL WELFARE
Majid Al Futtaim commits to selling cage-free eggs only across all its Carrefour stores by 2032 AFRICA – Majid Al Futtaim, the exclusive franchisee for Carrefour stores across the Middle East, Africa and Asia, has committed to selling only cage-free eggs across its stores under a newly signed animal welfare policy. The new Farmed Animal Health and Welfare Policy under The Humane League, seeks to promote alternative and sustainable livestock housing systems, such as cage-free, outdoor access, free-range systems and organic feeds. The policy is meant to push the adoption of higher welfare farming as cage-free egg production is deemed to be both beneficial to the poultry birds and consumers. “Under our long-held commitment to leading in all the markets in which we operate, we are proud to provide customers with products that comply with the highest quality and safety standards, and that
have been produced by socially and environmentally responsible means,” said Hani Weiss, Chief Executive Officer, Majid Al Futtaim Retail. The Dubai-based firm highlighted it is working towards a 100 percent cage-free shell egg private label assortment across all markets it operates in by 2030 and all national brands by 2032.
WE ARE PROUD TO PROVIDE CUSTOMERS WITH PRODUCTS THAT COMPLY WITH THE HIGHEST QUALITY AND SAFETY STANDANDS HANI WEISS- CHIEF EXECUTIVE OFFICER, MAJID AL FUTTAIM RETAIL
ACQUISITION
Zebu Investment, Norfund to acquire Mozambican food distributor Terramar Group MOZAMBIQUE – Zebu Investment Partners through its sophomore fund, Africa Food Security LP (AFS LP), has partnered with Norweign Investment Fund for developing countries, Norfund, to take full ownership of Mozambican food distributor, Terramar Group. Terramar is a leading importer, retailer, wholesaler and distributor of frozen, chilled and ambient consumer goods in Mozambique’s food & beverage market. It commenced operations in 1998 under Portugal Fisheries in South Africa, initially as an importer of fish and shellfish from Mozambique. Subsequently, the company started the exportation of meat from
MARCH/APRIL 2022 | FOOD BUSINESS AFRICA
South Africa to Mozambique, and thus established Moçambique Terramar, Trading in Maputo in 2000. Terramar in Mozambique is now the heart of the Group, importing products from is Portuguese and South African procurement centres, as well as from a variety of local suppliers, which include multinationals, such as Coca Cola and Unilever. The company’s proficiency in sourcing and distribution, through its two international procurement centres and best-in-class cold storage infrastructure, enables it to efficiently service 60% of the Mozambican market and deliver food security to both rural and urban customers. FOODBUSINESSAFRICA.COM
INVESTMENT
South African food industry players take bite of plant-based food market
SOUTH AFRICA – Recently launched venture capital fund arm by South African food manufacturing giant, Tiger Brands, has made its inaugural investment, backing Herbivore Earthfoods. Herbivore Earthfoods is a Cape Town headquartered womanfounded business specialising in the
manufacture and sale of plant-based and vegan products. Together with co-investor, Secha Capital, an early-stage impact private equity firm, the Tiger Brands Venture Capital Fund has become a minority shareholder in the business. Under the new partnership, Tiger Brands and Secha Capital will use their considerable experience in the food and beverage sector to help grow and scale Herbivore Earthfoods, focusing on making plant-based foods more accessible and affordable for the South African consumer. Meanwhile, Famous Brands, owner of Wimpy, Steers, and Debonairs, among other restaurant brands, has acquired a majority stake in Lexi’s Healthy Eatery, as part of its
strategic investment roadmap. Under the deal, the JSE listed company has bagged a 51 percent shareholding in the mostly vegan, whole-food restaurant. According to Famous Brands, the acquisition is aligned with its three-year strategic roadmap, which includes acquiring brands that have the potential to lead in their category and which offer growth prospects based on opportunities to improve existing operational efficiencies in the target business. The company’s existing portfolio does not include an exclusively vegetarian or plant-based offering, and as a forerunner in its category, Lexi’s is a good fit for the group.
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NEWS UPDATES
FOOD SAFETY
Ferrero recalls Kinder Chocolate products following link to salmonella outbreak in Europe
BELGIUM – Italian chocolate manufacturer Ferrero has voluntarily recalled some of its Kinder chocolate products after more than 100 cases of
salmonella, mostly affecting children, were reported in Europe. The products affected by the recall are Kinder Surprise, Kinder Mini Eggs, Kinder Surprise Egg 100g and Kinder Schoko-Bons, all of which were manufactured at the company’s plant in Arlington, Belgium. Almost 150 children in Europe and the United Kingdom have been infected with Salmonella that has been found in the production plant.
The recall has extended to the USA with the company announcing that it was recalling its Kinder Happy Moments Chocolate Assortment and Kinder Mix Chocolate Treats basket because they were manufactured in a facility in the Arlington facility. Ferrero has since suspended operations at the Arlington facility “to ensure the maximum level of food safety and eliminate the risk of further contamination”.
FUNDING
Sierra Leonean juice maker Kings Beverages receives US$5m from IFC, GAFSP for expansion SIERRA LEONE – Kings Beverages, a
soft drinks and fruit juices producer in Sierra Leone, has received a US$5m financial backing from international financial institution, IFC, and the Global Agriculture Food and Security Program, GAFSP. The loan, comprising of US$2.5m from IFC and US$2.5m from GAFSP will be channelled towards completion of the company’s factory in Freetown.
This will enable King Beverages increase its production capacity and introduce new fruit juice products. Launched in 2020 during the COVID-19 pandemic, the nonalcoholic beverages manufacturer provides clean mineral drinking water, fruit juices and carbonated soft drinks to the local market. The investment will also double its number of employees to 250 over
the next three years and strengthen the local agriculture value chains through increased sourcing from local farmers. It is targeted that the beverage maker will increase its sourcing from 40 to 150 local fruit farmers by 2025. Overall, the expansion is projected to create 2,600 induced and indirect jobs throughout the agriculture value chain in Sierra Leone.
NEW PRODUCTS
South African foodtech company Mogale Meat unveils Africa’s first cultivated chicken breast SOUTH AFRICA – South Africa has welcomed launch of the region’s first cell-cultured chicken produced by Mogale Meat, a cellular food-tech company. The product development follows 8 months of Mogale Meat tirelessly
THE CULTIVATED CHICKEN BREAST COMPOSED OF REAL CHICKEN MUSCLE AND FAT CELLS BLENDED WITH A MUSHROOM MATRIX IS MOGALE'S FIRST PROTOTYPE 18
working with cutting-edge scientific research and innovation to produce Africa’s first chicken breast prototype to be availed at the global XPRIZE Feed the Next Billion competition with US$15million up for grabs. Mogale Meat’s main focus is being a cultivated game meat company, but it decided on chicken for the competition presentation to the alternative fish. The cultivated chicken breast, composed of real chicken muscle and fat cells blended with a mushroom matrix, is the first prototype Mogale Meat will showcase. A signature wildlife meat product will be revealed later in the year as the company is currently working on development of cultivated meat from
MARCH/APRIL 2022 | FOOD BUSINESS AFRICA
free-roaming livestock and wildlife such as cattle, and antelope. These new innovations are raising the bar for alternative meats scene in the region, as Africa’s first cultivated meat start-up, Mzansi, recently announced it is set to unveil its first beef burger made with lab-grown meat. FOODBUSINESSAFRICA.COM
PLANT-BASED FOODS
US plant-based industry defies supply chain disruptions to record US$7.4B in sales
USA – Robust demand for plant-
based foods is driving retail sales to new record high despite challenges associated with supply chain disruptions. According to research by the PlantBased Foods Association (PBFA), The Good Food Institute (GFI) and SPINS, the total plant-based market value reached an “all-time high” of US$7.4 billion in 2021. The market value was bolstered
by booming plant-based retail sales which grew three times faster than total retail sales. The report further noted that many plant-based categories outpaced conventional counterparts, further demonstrating their popularity among consumers. As the largest category in the plant-based space, plant-based milk now accounts for 16% of all retail milk sales, contributing to US$105 million. Plant-based meat, which grew 74% in the past three years, outpaced conventional meat by about three times with a repeat year of US%1.4 billion in sales. Karen Formanski, GFI’s research and analysis manager notes that product innovation is critical for plant-based categories to continue to earn a larger share of the market.
FOOD SECURITY
Ukraine war drives international food prices to ‘new all-time high’
GLOBAL - World food prices jumped
nearly 13% in March to a new record high as the war in Ukraine caused turmoil in markets for staple grains and edible oils, the U.N. food agency said on Friday. The disruption of food supply chains in the Black Sea prompted the Food and Agriculture Organization (FAO) to project that food prices could rise by up to 20%, raising the risk of increased malnutrition. The FAO Food Price Index averaged 159.3 points in March, up 12.6 percent
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from February when it had already reached its highest level since its inception in 1990. FAO’s cereal price index climbed 17% in March to a record level while its vegetable oil index surged 23%, also registering its highest reading yet, the UN agency said. The FAO Sugar Price Index rose 6.7 percent from February to reach a level more than 20 percent higher than in March 2021 while the Meat and Dairy price indexes rose 4.8 and 2.6% respectively.
FAO CEREAL PRICE INDEX CLIMBED 17% IN MARCH TO A RECORD LEVEL WHILE VEGETABLE OIL SURGED 23%
BRIEFS Mozambican miller Merec invests US$8m in new pasta processing line MOZAMBIQUE – The President of Mozambique, Filipe Nyusi has inaugurated a new US$8m pasta processing line in Beira, capital of the central province of Sofala. The facility has been established by Merec Industries, the country’s largest integrated wheat and maize miller, with financial support from the Millennium Bim bank. The new production line is the company’s fourteenth and is the largest in terms of capacity, being capable of producing 102 tonnes of pasta per day. With the addition of this production line, the company’s output has grown to 234 tonnes per day or eight thousand tonnes per month.
Indian distiller NV Group to undertake US$250 million brewery project in Zimbabwe ZIMBABWE – Giant Indian distillers of grain alcohol, the NV Group, has partnered with the Agricultural and Rural Development Authority (ARDA) to establish a US$250m brewery in Masvingo, South-Eastern Zimbabwe. The facility which is expected to be operational in the next one and half years will be built at the Magudu estate owned by ARDA. It will be fed by raw materials i.e., sorghum, barley and sugar cane produced by contract farmers who will cultivate nearly 5,000 hectares of the estate, benefiting from technical support from ARDA in terms of access to irrigation equipment. The investment dovetails into the authority’s rural development and industrialisation mandate and is expected to create at least 3,000 direct and indirect job opportunities.
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NEWS UPDATES
BRIEFS Britain’s largest halal fast-food chain Chicken Cottage eyes East African market
KENYA – British fast food chain Chicken Cottage is seeking to enter the East African market through a franchising partnership agreement with Express Kitchen, a subsidiary of AAH Limited. AAH Limited is the majority shareholder of Hass Petroleum Group which operates 150 petrol stations in ten African countries. Under the deal, the UK-based fastfood operator plans to open 50 outlets at Hass Petroleum’s service stations in Kenya and the rest of the East Africa this year. This will introduce a fusion menu of halal grilled and fried chicken to consumers in Kenya, Rwanda, Tanzania, and Uganda.
UNDER THE DEAL, THE UK-BASED FAST-FOOD OPERATOR PLANS TO OPEN 50 OUTLETS AT HASS PETROLEUM SERVICE STATIONS The deal is expected to strengthen Chicken Cottage’s presence in Africa following the opening of its first two restaurants in Nigeria, and build on the 75 restaurants base it currently operates across Europe, Africa, Asia, and Middle East.
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SUSTAINABILITY
South African companies turn to renewable energy to power operations
SOUTH AFRICA – Retail giant Shoprite has launched South Africa’s first premium supermarket to run entirely off renewable energy from wind and solar sources. This follows the company’s installation of a 635kWp rooftop solar PV installation at its own Sitari Village Mall where Checkers Sitari outlet is located. The project was fulfilled courtesy of signing of an agreement with Eskom’s Renewable Energy Tariff (RET) programme, which allows customers to source up to 100% of their electricity from renewable resources. The Sitari Village Mall, with Checkers as anchor tenant, will generate 35% of its electricity from its rooftop solar PV system. The remaining 65% – 1,752 MWh of renewable energy – will be sourced from Eskom’s wind plant via the RET programme. This is enough to power the entire centre, including the Checkers supermarket, entirely on renewables. With the move, Shoprite is joining a growing number of SA companies who are investing in solar and renewable power as the Eskom grid becomes increasingly unreliable and electricity prices rocket. Recently South African Breweries
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(SAB) inked a Power Purchase Agreement with a Black-Woman Owned industrial scale biogas wasteto-energy company, Bio2Watt. Following the agreement, South Africa’s largest beer maker will soon be using the manure of over 7 000 cows to power its operations.
SOUTH AFRICA'S LARGEST BEER MAKER WILL SOON BE USING THE MANURE OF OVER 7 000 COWS TO POWER ITS OPERATIONS Meanwhile, PepsiCo has received the green light to from the Ekurhuleni Municipality to connect of a large solar PV plant and battery system at its sub-Saharan Africa’s (SSA) Gauteng distribution centre. The new PV and lithium-ion battery system is aimed to enable the food manufacturer to secure energy supply and reduce carbon emissions. It will form one of South Africa’s largest microgrids, comprising a 1.8 MW solar PV facility alongside a 2.9 MWh battery, while being gridconnected to stabilise the local grid.
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PLANT-BASED FOODS
JUST Egg mung bean protein wins EU approval, launch expected ‘before the end of the year’ EUROPE – Eat Just’s plant-based egg alternative Just Egg will soon be stocked in retail stores across Europe following the European Commission’s approval of its key ingredient- mung bean protein. Eat Just CEO Josh Tetrick said in a statement that the decision ‘opens the door’ to distribution of Just Egg across the 27-member bloc. According to the approval, Eat Just’s use of mung bean protein for plant-based egg products cannot be leveraged by other food companies looking to introduce similar products for a period of five years. Eat Just expects to launch its JUST Egg product across markets belonging to the European Union and the European Free Trade Association
in the fourth quarter of this year. “Germany and the Netherlands are key targets for JUST Egg,” explained Andrew Noyes, Head of Global Communications & Public Affairs, Eat Just, Inc.
The UK is also of interest, he revealed but since it’s no longer part of the EU, Eat Just is actively engaging with the UK’s Food Standards Agency (FSA) on a regulatory path to market.
REGULATORY
Uganda launches standards to facilitate safety, commercialization of edible insects Specification is aimed to ensure the edible insects which are harvested, processed, and traded on the Ugandan market are safe for consumption. It specifies the requirements, sampling and test methods for edible insects which include grasshoppers (Nsenene), white ants, termites, crickets, among others. This is in line with the UNBS mandate of developing, promoting, and enforcing standards in protection of public health and safety, and the UGANDA – The Uganda National Bureau of Standards (UNBS) in partnership with Makerere University School of Food Technology, Nutrition and Biosystems engineering (Food Science) alongside International Centre of Insect Physiology and Ecology (ICIPE), have launched standards to govern the budding edible insects industry. The Edible Insects Standard, US 2146:2020 Edible Insects– FOODBUSINESSAFRICA.COM
THE STANDARD AIMS TO ENSURE EDIBLE INSECTS TRADED IN UGANDA ARE SAFE FOR HUMAN CONSUMPTION environment against dangerous and sub-standard products. Besides ensuring production of quality edible insects fit for
human consumption, the new standard is also expected to help Uganda’s edible insect industry grow through commercialization due to their nutritional value and market opportunities both locally and internationally. UNBS has also developed a standard for dried Insect products for compounding animal feeds, US 1712:2017 – Dried Insect Products for Compounding Animal Feeds – Specification, which guides farmers involved in Poultry and Fish Farming on how to use insects as alternative animal feed.
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SUPPLIER NEWS & INNOVATIONS
ACQUISITIONS
ADM acquires South African flavour distributor Comhan
SOUTH AFRICA – ADM, has fully acquired South Africa based flavour distribution company, Comhan, in a bid to strengthen its flavour capabilities and reach in the African market. The acquisition brings together
ADM’s 80 years of experience in the flavour industry and Comhan’s unique market insight to generate innovative products that cater to local tastes and interests. With Comhan currently focusing on beverages, ADM plans to grow the distribution capabilities of the South
African entity to include food and savory products. The deal will also open up opportunities for ADM’s customers in the region and build on the capabilities of its existing offices in Nigeria and Kenya. “This acquisition marks a very exciting moment for ADM, as we continue to develop our nutrition business in key growth markets, including Africa. “At ADM we believe it is critical to invest in flavour creation assets globally to extend production and supply chains, making it easier to get unique and consumer-preferred flavours to local customers,” said Calvin McEvoy, president of global beverages at ADM.
INVESTMENTS
Leading recycling company Extrupet doubles capacity with new US$20.5m facility
SOUTH AFRICA – One of Africa’s largest PET recycling companies, Extrupet, is set to double its foodgrade plastic recycling operations in South Africa with establishment of fourth recycled PET (rPET) facility. The new facility is expected to increase the company’s recycling capacity by an additional 33,000 tons per year, doubling their food grade operations capacity to over 60,000 tons per annum. Phase 1 of this expansion, tagged at a cost of approximately R300 million (US$20.5m) is expected to be fully operational in 2023. 22
Other than beefing up the company’s capacity from the current 5 million PET bottles every day, the investment will also create additional jobs in the PET bottle collection industry. Chandru Wadhwani, Joint Managing Director at Extrupet said, “The demand for food-grade recycling keeps on increasing, especially as retailers and consumers alike opt for more environmentally friendly
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THE DEMAND FOR FOOD-GRADE RECYLING KEEPS ON INCREASING AS CONSUMERS ADOPT ENVIRONMENTALLY FRIENDLY OPTIONS CHANDRU WADHWANI, JOINT MD AT EXTRUPET
options. Currently, only 60% of South Africa’s plastic bottles are recycled. With this increased capacity, we will be able to accommodate more of South Africa’s plastic waste and strengthen South Africa’s position as a circular economy leader in Africa and the world”. Extrupet’s recycled PET (rPET) is sold under its brand name PhoenixPET, which has received international acclaim and is certified by the European Food Safety Authority, Global Recycled Standard, BRC Packaging (AA rating) and ISO 9001:2015.
FOODBUSINESSAFRICA.COM
NEW PACKAGING
Amcor unveils recycle-ready packaging for Cheese and Coffee
SWITZERLAND
– Swiss-based global packaging company Amcor
is expanding food manufacturers' sustainable packaging choices by launching two recycle-ready packaging solutions for coffee and dairy products. The new solutions under the AmPrima recycle-ready solutions have been rolled out in Europe to offer brands a sustainable packaging choice without compromising on performance. The full portfolio includes AmPrima PE to serve a range of products and AmPrima PE PLUS for products requiring a high barrier or
more complex applications. Amcor said that the AmPrima range is designed according to CEFLEX guidelines for circularity and certified by cyclos-HTP for recyclability in the real world. It further noted that its AmPrima recycle-ready solutions provide options for brands who need packaging that still offers the barrier, material stiffness, seal strength, graphics performance and fast run speeds of traditional unrecyclable packaging.
SUSTAINABILITY
DSM’s methane-reducing feed additive safe for use in cow feed FINLAND – A new feed additive
by Dutch multinational health and nutrition company, Royal DSM, has successfully passed a pilot test in Finland and can now be safely used in cow feed. Known as Bovaer, the feed additive is reported to reduce methane emissions produced by cows by 30%. To ascertain its safety and effectiveness, Bovaer was subjected to a feed trial by Finnish dairy giant Valio and Atria’s subsidiary A-Rehu. During the 12-week test period,
400 cows at three different Valio dairy farms received feed containing the
BASED ON THE RESULTS OF THE PILOT, THE ADDITIVE CAN BE SAFELY ADDED TO COW FEED JUHA NOUSIAINEN, SENIOR VP, CARBON-NEUTRAL MILK CHAIN, VALIO
Bovaer additive. “During the pilot period, the cows’ milk production remained normal and no changes were detected in the composition of the milk. Nor was anything unusual detected in the cows’ behavior and welfare. Based on the results of the pilot, the additive can be safely added to the cow feed,” said Juha Nousiainen, senior vice president, carbon-neutral milk chain, at Valio.
STRATEGY
Turkish milling equipment supplier Alapala targets 20% growth in 2022
TURKEY - Alapala has revealed that it
is targeting to achieve 20% growth in terms of turnkey projects completed
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in 2022. The company successfully delivered 24 turnkey projects in 16 countries, as well as numerous machinery exports to different parts of the world in 2021. Some of the turnkey project highlights from last year were completed in Angola, Bangladesh, UAE, Ecuador, and India, whereas some of important projects in this year’s scope are in Brasil, Panama, Belgium, Kosovo, Qatar, Yemen, and
Zimbabwe. Alapala CEO Görkem Alapala stated that there are more than 40 turnkey projects in their existing project portfolio of 2022. The projects are spread across in 27 countries with a total value of US$120 million, the Alapala CEO revealed. He also stated that with the completion of these projects, they target to reach over 900 projects across the globe.
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SUPPLIER NEWS & INNOVATIONS
INNOVATION
NEW TECHNOLOGY
Cargill adds natural flavor to stevia sweetener to enhance performance
USA — American global food corporation Cargill has updated its stevia sweetener to enhance its performance in food formulations. Cargill said its EverSweet + ClearFlo technology, which is now commercially available, combines its stevia sweetener with a natural flavor. According to the food ingredients
supplier, the new sweetener system provides multiple benefits, including flavor modification, faster dissolution and improved solubility and stability in formulations. “It really is a game-changer for sugar-reduction technology, making it possible for stevia to go where it has never gone before,” said Andrew Ohmes, Cargill’s global director for high intensity sweeteners. Using EverSweet’s quick sweetness onset and potency as a foundation, EverSweet + ClearFlo creates a more sugar-like experience, especially at higher concentrations, Cargill said. It also helps manage off flavors from other ingredients used in formulation, such as earthy notes from proteins, bitterness from caffeine or metallic tastes from potassium chloride.
KHS debuts new packaging line retrofits to wrap beverage cans in paper instead of film GERMANY – KHS, an international manufacturer of filling and packaging equipment for the beverage and food industries, has introduced new packaging line retrofits that wrap beverage cans in paper instead of film. In a statement, KHS noted that the newly launched paper wrapper allows beverage manufacturers to meet consumer demand for alternative, environmentally friendly packaging
THE PAPER WRAPPER ALLOWS BEVERAGE MANUFACTURERS TO MEET CONSUMER DEMAND FOR ENVIRONMENTALLY FRIENDLY PACKAGING MATERIAL
INVESTMENTS
Certuss’ new electric steam generator a game changer in the race to net zero GERMANY – German steam technology company Certuss has introduced a new electric steam generator, the Certuss E320M which is poised to be a game changer in the race towards net zero carbon emissions.
THE HIGH DEGREE OF AUTOMATION OF CERTUSS STEAM BOILERS AND THE SIMPLE CONTROL WITH REMOTE ACCESS IS UNCHALLENGED HOLGER DEIMANN, GLOBAL SALES AND MARKETING DIRECTOR FOR CERTUSS
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The new Generation E generator is said to offer a compact design, enabling space savings. It is also modularly expandable for capacities from 10 to 320 kg/h. Through Certuss Plug & Play, the unit is said to offer high efficiency and can be used with a wide range of applications thanks to its operating pressure of up to 16 bar. Holger Deimann, global sales and marketing director for Certuss said: “With the new Generation E from Certuss, customers in the process industry will perfectly master the balancing act between energy transition and sustainability with simultaneous process reliability. The high degree of automation of Certuss steam boilers and the simple control with remote access is unchallenged.”
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material. Customers can either opt for more flexibility by switching between film and paper packaging as required or permanently switch to paper. Since 2020 KHS has provided a facility on its packaging machines for wrapping beverage cans in paper, the new function however gives customers maximum flexibility by allowing a switch between the two materials. Whether wrap-around packs, packs on trays or pads with or without film or paper wrappers, the new system solution can process a broad range of secondary packaging, KHS said.
FOODBUSINESSAFRICA.COM
MERGER
Symrise merges four companies to create global leader in pet nutrition
GERMANY – German flavor and fragrance giant Symrise has joined four companies formerly named Diana Pet Food, ADF, IsoNova and Schaffelaarbos to create a global
leader in pet nutrition. Known as Symrise Pet Food, the division will address the pet food market, providing pet food manufacturers with high-value solutions to support their products. This new organization will be domiciled in the Taste, Nutrition and Health segment of Symrise and forms a major milestone for the group’s development on the pet food market. The solutions of Symrise Pet Food will focus on three essential aspects within pet food: Pet Food Palatability
with the brand SPF, Pet Nutrition with a new brand, Nutrios , and Pet Food Protection with the brand Videka. The newly created brand Nutrios will deliver natural ingredients and deep expertise to help build animal nutrition that serves evolving consumer demands. It gathers the products of the legacy brands ADF for chicken ingredients, IsoNova and Schaffelaarbos for egg ingredients, and Vivae for health solutions.
INNOVATION
Bühler celebrates 50 years in South Africa, readies future regional growth SOUTH AFRICA – Swiss multinational plant equipment manufacturer, Bühler, marked its golden anniversary in South Africa through a raft of celebratory activities. Commemorating its success over the last 50 years, the company went down memory lane, highlighting key milestones it has achieved in the African continent, and served a special menu based on the products made using Bühler’s processes and solutions. The company commenced
operations in January 10, 1972, as Bühler MIAG South Africa, a joint company, by René Schneider with Hans Widmer as its first Managing Director. At the beginning, its main activity was customer service, selling spares and wear parts as well as fluting and welding in the workshop. Soon after, the product portfolio got larger as the business grew as more customer and market demands needed to be met. It has metamorphosised to
become the central contact point for all enquiries, from grain to consumer goods processing and advanced material processing solutions. From serving a single country, now the Johannesburg office is the regional headquarters for the Southern Africa sub region responsible for Angola, Botswana, Lesotho, Madagascar, Mauritius, Malawi, Mozambique, Namibia, La Reunion, Solomon Islands, Seychelles, Swaziland, South Africa, Zambia and Zimbabwe.
INNOVATION CENTRE
Firmenich opens new regional hub in Dubai to strengthen presence in MENA UAE – Swiss flavour and fragrance company Firmenich, has opened a new regional hub at the Dubai Science Park in an effort to strengthen its presence in the Middle East and North Africa (MENA) region. The regional hub houses a Creation & Development Center and a state-ofthe-art research and science facility built on Firmenich’s Lab 4.0 vision, powered by artificial intelligence. "Using cutting-edge technologies, the two facilities will service customers in more than 60 countries FOODBUSINESSAFRICA.COM
across the Middle East and Africa region," Firmenich said. The facility which joins a network
of such facilities in Europe, India and China also includes a fully automated warehouse that can stock up to 40,000 products. Firmenich’s advanced creation and sampling laboratory will allow the company to deliver a variety of highquality food and beverage flavours designed for consumers in the region. It will also help in accelerating innovation and global expansion with enhanced access to key markets and evolving trends, while reducing the time to market for new products.
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SUPPLIER NEWS & INNOVATIONS
NEW PRODUCT
Lantmännen introduces gluten-free wheat starch with good baking properties
SWEDEN – Swedish agricultural cooperative Lantmännen, has introduced a new gluten-free wheat starch with good baking properties
that do not affect the final product’s taste. The launch was also informed by the growing market for gluten-free products as more consumers adopt a gluten-free diet for lifestyle and health reasons. “After several years of development, we can now offer the market a gluten-free ingredient with good baking properties that do not affect the final product’s taste,” says Lars Franzén, head of food ingredients, Lantmännen Biorefineries. Wheat starch has many functional
properties in baked goods, chief among them, being its role in stabilizing bread crumb structure and texture. When baking gluten-free, the stabilizing and binding function of gluten must be reached via the addition of other ingredients, for example, hydrocolloids and fibers. Gluten-free wheat starch enables manufacturers to achieve the same quality as when they were using conventional wheat but with a shorter ingredient list.
INNOVATION CENTRE
ADM unveils alternative to contentious food whitener titanium dioxide EUROPE – Commodity trading and food ingredient supplier ADM, has presented a new alternative to the contentious food whitener titanium dioxide. Unveiled under their new line, PearlEdge proprietary white color solutions, the new ingredient is derived from natural sources, including native corn starch. It reportedly delivers a brilliant, stable and uniform white coloring
for a variety of food and beverage applications. It is expected to fill a “vital white space” in the market as global manufacturers move toward phasing out titanium dioxide (E171) from formulations. PearlEdge is ideal for use in confectionery; powdered drink mixes and beverages, bakery icings and fillings; and sugar-free offerings. It can also be used in soups,
sauces, and dressings, in dairy and dairy alternatives as well as in meat alternatives and pet food.
INVESTMENTS
Italian supplier of milling equipment Ocrim builds wheat processing plant in Sudan SUDAN – Morouj Commodities Ltd, one of Sudan’s largest food industry players, mainly focused on packaging, processing, import and export of products has entered the milling sector with construction of a new processing facility. To facilitate the construction of its first mill, Morouj has partnered with Ocrim, a leading machinery producer and turnkey solution provider of wheat and maize milling plants, feed mills and grain processing systems in general. The Italian company will undertake the establishment of a 600 ton per 26
OCRIM WILL UNDERTAKE THE ESTABLISHMENT OF A 600 TON PER 24HOUR SOFT WHEAT MILLING PLANT 24-hour soft wheat milling plant to process high quality flours for the production of pasta and bakery products. It will also be equipped with a
MARCH/APRIL 2022 | FOOD BUSINESS AFRICA
1200 ton flour storage section, and an integrated 40 ton per hour mixing line that also allows the production of special flours through the addition of micro-ingredients. The plant, with a high technological profile, will be configured with the innovative Modular Milling Concept of which Ocrim is a pioneer. This allows cutting-edge maintenance, since it gives the possibility of stopping only a part of the mill, resulting in greater productivity and flexibility in planning scheduled or unexpected maintenance.
FOODBUSINESSAFRICA.COM
APPOINTMENTS Update Nestlé names Gordon Perrins to head Mauritius unit, oversee operations in Seychelles
MAURITIUS – Nestlé has appointed Mr. Gordon Perrins as the new Business Development Manager for Mauritius and Seychelles effective 1st March 2022. Perrins succeeds Mr. Erkan Konak, who had been in the role for four years. He also takes over Konak’s role as a member of the commerce group at the Mauritius Chamber of Commerce and Industry council. According to the food giant, Perrins has had a successful career at Nestlé East and Southern Africa (ESAR), spanning 40 years. He started with the business in 1982 in South Africa, and worked across different functions such as Sales Management, Brand Management, Trade Management and most recently, as Customer Business Manager out of South Africa.
Diageo names Andrew Kilonzo as new head of Uganda Breweries Limited
UGANDA – Uganda Breweries Limited (UBL), subsidiary of the East African Breweries Limited (EABL), has appointed Andrew Kilonzo as its FOODBUSINESSAFRICA.COM
new Managing Director. Alvin, who had been at the helm of UBL for about two years, was appointed to lead the Caribbean & Central America business with the Latin America and Caribbean region, effective September 1, 2021. The new company head, Andrew, has held several Executive roles across Diageo to include previously serving as the Sales Director in Uganda at UBL from 2010 to 2013, driving a turnaround within the business during this significant period when new investment in UBL was just starting. He joins the company from Meta Abo brewery, Diageo’s Ethiopian subsidiary that is currently being porched by brewing giant BGI Castel.
He takes over the leadership of the region from John O’Keeffe who will be replacing Sam Fischer, as President Asia Pacific and Global Travel. John has worked at Diageo for over 24 years and has gained a wealth of experience across both emerging and developed markets namely Ireland, Jamaica, Sweden, Greece and Russia. Before his appointment as President Diageo Africa, he was Managing Director for Guinness Nigeria Plc.
Nigerian fast food chain Food Concepts names Kofi Abunu as its new CEO
Diageo appoints Dayalan Nayager as President of Africa region replacing John O’Keeffe
AFRICA – British multinational alcoholic beverages company, Diageo, has appointed Dayalan Nayager, the current Managing Director of Diageo Great Britain as President Africa. Dayalan who will also join the Diageo Executive Committee, brings his extensive leadership expertise and knowledge about the consumer goods industry to Africa’s alcohol beverage sector. He has held different senior roles within the company to include Managing Director for Diageo Travel Retail, one of the key markets for the brewer. Before being appointed Managing Director for Global Travel Retail, he served as Regional Director for GTME Europe.
NIGERIA – Food Concepts Plc, West Africa’s leading multi-brand restaurant platform, has promoted Mr Kofi Abunu to the post of Managing Director and Chief Executive Officer of the company. Mr Kofi who was the company’s Divisional Managing DirectorBusiness Development prior to the appointment, succeeds Mr David Butler who stepped down on 7th March 2022. This follows the expiration of Mr Butler’s contract of employment, having led the company with great success since 2014. The new company head has over 28 years of experience in the food and hospitality industry and a diploma in hotel management. He also has a BA (Hon) International Business and Marketing from the University of London and CIMA UK. He previously worked at McDonald’s (UK), Nando’s, and Famous Brands.
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NEW FOOD PRODUCT INNOVATIONS
Chi Limited: Chivita Active Zest
Chi Limited has unveiled new 125ml & 50ml pack sizes of its recently launched Chivita Active Zest brand. The new packs are a strategic move aimed to ensure product affordability and accessibility to a wider spectrum of Nigerian consumers. The company also recently expanded its Chivita product line with launch of new malt drink specifically designed for kids. Dubbed Chivita Smart Malt Drink, the beverage is rich in Vitamin A, B1, B2, B3, B5, B6, B12 and E.
www.chilimited.com
Tomato Jos: Tomato paste
Nigerian agro-processing company Tomato Jos has launched its much-anticipated Tomato paste variant into the West African market. The new product, packaged in a 65-gram sachet, is the company’s first consumer product since the commencement of operations at its multi-billion-naira factory in Kaduna State.
www.tomatojos.net
Distell Group: Chilli flavored Savannah Cider Distell Group has expanded the range of offering of its premium cider, Savanna, with launch of a chilli flavoured variant. Dubbed Savanna Chilled Chilli, the cider is spicy with hints of chilli and ginger flavour. The new drink joins the Savanna family which currently comprises of Savanna Dry, Savanna Light, Savanna Non-alcoholic and Savanna Angry Lemon.
www.distell.co.za
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Tolaram Nutri Beverages: Goodlife Zobo Ginger Tolaram Nutri Beverages Limited has added to its portfolio a new variant of its flagship beverage brand Goodlife. The new product dubbed, Goodlife Zobo Ginger is made from a blend of hibiscus leaves extract popularly known as Zobo, and ginger flavours, an exceptionally thirst-quenching beverage. It also contains Vitamin C, making it a perfect refreshment for any occasion.
www.tolaram.com
Kenya Breweries Limited: WhiteCap Crisp Kenya Breweries Limited (KBL) has re-introduced to the market its WhiteCap Crisp, an extension variant of White Cap Lager. Packaged in a sleek 330ml bottle, the new WhiteCap Crisp is blended with fine Kenyan ingredients to make a clean, crisp, lighter taste, sugar-free quality beer at 3% Alcohol by volume (Abv).
www.eabl.com
Hariss International: New confectionery products Hariss International Limited, one of Uganda’s leading food and beverage manufacturers has expanded its offering with introduction of first line of confectionery products. Trading under its flagship brand, Riham, the new product line comprises of lollipops; fruit drops, refreshing breath mints, gums, and hard-boiled sweets. The lollipops come in various flavours such as chocolate, strawberry, lemon, ginger, watermelon, passion, caramello, and so much more.
www.harrisint.com
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Giant Millers Canna brand maker gives Kenyans a taste of safe and nutritious maize meal FOODBUSINESSAFRICA.COM
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MY COMPANY PROFILE: GIANT MILLERS LTD
THE GIANT MILLERS FACTORY IN THIKA TOWN, 40 KILOMETERS NORTH OF NAIROBI
By Paul Ongeto
Seth Godwin, a successful entrepreneur, and author once said: In a crowded marketplace, fitting in is a failure. In a busy marketplace, not standing out is the same as being invisible. In Kenya’s increasingly busy marketplace, one brand- CANNA- has managed to live by this mantra and In just two years grown to become its consumers’ favourite maize meal. The secret? Producing premium maize flour which is marketed as an ordinary flour, to capture the interest of all lovers of ugali, Kenya’s main food item. “We knew that if we market our brand as premium product, it would chase away a lot of our would-be customers,” says Agnes Irungu, Managing Director of Giant Millers, the makers of Canna Nutritious Maize Meal. “So, we introduced it as a regular product but 34
MARCH/APRIL 2022 | FOOD BUSINESS AFRICA
when you open inside, you find that you have a very premium product.” She Is quick to add that the Product Name CANNA Is driven from the very beautiful, bright, multicolored family of Canna Lily Flowers. A very premium maize flour presented in a very attractive packaging was simply irresistible to lovers of ugali, who in all honesty are the majority in Kenya. The attractive packaging is what got customers buying the product, but the taste is what got them coming back for more, reveals Anthony Methu, the Head of Sales at the company. A LOVE FOR UGALI SPARKS INTEREST IN MILLING Canna Nutritious Maize Meal was launched in February 2020, just before the Covid-19 FOODBUSINESSAFRICA.COM
pandemic hit. “We started of course the planning and construction of the plant a few years before that,” Agnes tells Food Business Africa Magazine. What drove Agnes and her husband into food manufacturing was years of having an interest in the industry which drove them to studying manufacturing opportunities available in the country. They realize food manufacturing was safe to venture Into, assured of success that the sector offered. “You can never go wrong with food,” she says. The decision to start with maize milling, however, was influenced by Kenyan’s love for ugali. “Our family too loves ugali. We also wanted to start with a product that is widely accepted and moves fast,” Agnes confesses. Starting a mill however requires more than just the love for ugali. There was wide consultation, especially with people in the milling business to determine the viability of the business and what was needed to set up one. Agnes reveals to us that her husband, Mr. Jamleck Kamau, who is the Company's Chairman, was a very critical player during the project conceptualization stage. “He has a wide pool of friends and associates that were able to give us a lot of information about the manufacturing industry,” she shares. From this information, they were able to identify several equipment manufacturers whose bids they reviewed before settling on the one to supply them with milling equipment.
training has helped her to understand the business, making it easier to manage. “As a business owner, the first thing is to want to know all the details about that business,” she advices. “Once you have the right knowledge, employing the right staff and supervising their work becomes very easy because you already know what to expect from them.” SETTLING ON QUALITY INSTEAD OF QUANTITY “Initially we were not going to produce a premium flour,” Agnes confesses. The insights of the company’s highly trained Quality Manager, Mr. ChirChir, however changed their minds. “He carried out organoleptic testing of various flours which got us to taste ugali made from other flours that were in the market. At the end of the exercise, we realized that the one we liked most was not ours.” This made them to consult the Machines suppliers to modify some processes to achieve a good tasty Flour. “Canna Nutritious Maize Meal quality is very high. I am not bragging, but it could be the highest premium quality flour in the market at the moment.” Says Agnes. The impact of that organoleptic test is now being felt well beyond the walls of Giant Millers Limited as the flour has since received
AS A BUSINESS OWNER, THE FIRST THING IS TO WANT TO KNOW ALL THE DETAILS ABOUT THE BUSINESS. ONCE YOU HAVE THE RIGHT KNOWLEDGE, EMPLOYING THE RIGHT STAFF AND SUPERVISING THEIR WORK BECOMES VERY EASY.
A HANDS-ON LEADERSHIP STYLE The proprietors, being novices in the food industry, were fully involved during the planning, design, construction, and equipment installation process. Agnes tells Food Business Africa Magazine that her interior design background came in handy during the construction and machine design stages of the project. She however had to undergo training in milling, if she was to competently run the business. “I went to the Buhler’s African Milling school to learn milling and to know what to look out for,” she reveals. In addition, Agnes together with Giant Millers' Chief Miller George, who Is also the Production Manager, flew to Buhler South Africa to undergo training on the milling software operation. “Today, I can sit at the control room desk and run the mill because I’ve been trained,” she says confidently. Looking back, Agnes confesses that her FOODBUSINESSAFRICA.COM
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MY COMPANY PROFILE: GIANT MILLERS LTD
KEY NUMBER
4,200 PACKETS PER HOUR PROCESSED BY CANNA'S AUTOMATIC PACKAGING MACHINE
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acceptance and is used in many households, hotels, Kibandas, nyama choma joints, etc. “I think we have contributed a lot towards a shift to providing quality maize flours in the market,” Agnes opines. TACKLING AFLATOXINS HEAD-ON All Millers in Kenya face the challenge of combating aflatoxins one way or another. Aflatoxins are poisonous carcinogens and mutagens that are produced by certain molds, particularly Aspergillus species. The acceptable limit by the Kenyan Bureau of Standards (KEBS) is 10 ppb (parts per billion) but some millers have in the recent past found themselves on the spot for packaging flour with aflatoxin levels that exceed the recommended limits. Giant Miller Ltd was not willing to comprise its name so it brought in highly qualified food technologists to ensure only maize with low levels of Aflatoxin was accepted at the facility. Chief Miller George Muuru tells us that Giant Millers even set a more stringent internal standard of 5 ppb Aflatoxin limit for raw materials to ensure to arrest the problem. "Initially we faced some challenges. We could sample the maize and find no significant levels of Aflatoxin but after milling we would find that the Aflatoxins in the flour was a bit higher
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than what was in the maize that we took in,” Agnes explains. At a loss of what could cause such a disparity, Agnes and her team conducted lengthy investigations. “In the process we realized that some traders were very tricky. They could lay bags of clean maize on top but lay others with aflatoxin below where ordinarily samples will not be picked,” she reveals. To seal the loophole, the team at Giant Millers started doing more tests on every truck that delivered maize. “Sometimes we tested one trailer 12 times; row by row, until we were satisfied that the maize, we were taking was safe.” The efforts paid off. “As a result, the traders understood our quality and now only delivers the right quality maize,” Agnes beams. “Today I can call a trader and they tell me they have maize, but they don’t have my quality. I love that. It means we have set a standard and they know it.” Agnes however hopes that the Government ministry concerned will work with farmers to turn around their crops so that this problem gets resolved from source. If farmers are well advised and assisted to produce the right quality, they would get good returns for their produce. USING AUTOMATION TO ENHANCE PRODUCT SAFETY Automation is a great concept in the food industry if well implemented. Involvement in the project at design stage gave the proprietors of Giant Millers an opportunity to understand the latest technologies in milling, including equipment that is normally offered as optional by the manufacturers. That is how Giant Millers ended up having a mill that is largely automated with minimum human interaction. “Our mill is fully automated,” Chief Miller Muuru boasts. “Everything is done in the control room and only a few tasks require manual labour.” Automation reduces movement on the production floor, which according to George gives his team “ample time to concentrate on the task of milling.” The beauty of automation also is the high level of safety that comes with it. Everywhere in the mill, including the packaging section, machines carry out various tasks in the process. This reduces the risk of contamination, which is usually high when human interaction is present. At the packaging section, the ultramodern FOODBUSINESSAFRICA.COM
THE PACKAGING SECTION IS COMPRISED OF A 70 PACKETS PER MINUTE AUTOMATED PACKAGING MACHINE
OUR MILL IS FULLY AUTOMATED. EVERYTHING IS DONE ON THE COMPUTER. A FEW THINGS REQUIRE MANUAL LABOUR BUT MOSTLY THE WORK IS AUTOMATED AND MANAGED IN THE CONTROL ROOM.
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packaging machine automatically opens the packets, fills, folds, glues and puts the flour in the bale so that only the sealing of the bale is done manually. George tells us that the equipment Is large enough to effectively package all the flour regardless of the number of shifts done in a day and night, all without the fatigue that would otherwise take a toll on staff if the process was manual. “It’s effective and hygienic,” its all George can say about the automated packaging machine. A UNIQUE APPROACH TO MARKET LISTING Getting Canna Maize Flour to market on a tight budget, a limited sales team that numbered just three, and a raging pandemic required ingenuity. Anthony Methu, the Commercial Manager, who has been a career salesperson with over 15 years of experience, was looking for a new challenge. When he came to Giant Millers Ltd, he saw a great opportunity and he grabbed it. “To get listed into the retail industry in Kenya is not easy, as the industry has a lot of players,” Methu confesses. But Canna Maize Meal, just like the Canna lily flower it was named after, was meant to flourish regardless of the market conditions. Knowing fully well that his team of 3 salespersons was limited in what it could
achieve, Methu chose a new strategy to leverage all the staff at Giant Millers dubbed “adopt a shop strategy,” the new strategy recruited every employee from the Managing Director to the cleaner to be engaged in sales. The task was simple: introduce the Canna brand to the shop or kiosk near you. With everyone involved, the product started moving out of the factory and into the shops. The adopt a shop strategy was just the start, the next phase was to conquer Kiambu County where the factory is located and the entire region around it. “Our strategy was to start where we are in Thika so as to efficiently manage our logistics,” he reveals. “We then expanded into the Mount Kenya region up to Nakuru town. Afterwards, we expanded to North Rift. Currently I can say we are all over Kenya, apart from North Eastern and the Coast region.” A limited budget meant that Giant Millers Ltd had to be prudent in how it marketed its Canna brand. “We did not go to TV or radio. We started with people we call brand ambassadors who carried out in-store promotions.” This strategy Is relatively Inexpensive and gave Giant Millers Ltd a chance to have one-on-one interactions with their potential customers, stimulating sales more effectively. "We also turned to social Media, particularly Facebook where we did a lot of Ad sponsorships and this too helped us to create visibility. To further advance brand marketing, the company enlisted the services of Brand Ambassador to shoot a TV Ad and to influence the brand on social media. At this point the company then got into broadcast media to reach the masses with the target of giving every Kenyan a chance to know, to buy and to taste the highly Canna Nutritious Maize Meal. Mr. Methu revealed that the AFMASS Food Expo and conference held in December 2021 was the climax of the company’s marketing events during the past two years. At the expo, Canna had for the first time a chance to deeply interact with customers and show them what their flour was all about beyond the attractive packaging. We came up with very Innovative recipes and made amazing tasty snacks using maize flour apart from Ugali and this became a quick show stopper at the Expo. At the end of the Expo, Giant Millers' mission to create visibility and sell the Canna brand to new customers was accomplished. “We also did win The Start Entrepreneur of the Year Award, MARCH/APRIL2022 | FOOD BUSINESS AFRICA
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MY COMPANY PROFILE: GIANT MILLERS LTD
want to do,” she advices. Once you know what to do, Agnes advises you must get Involved from the onset of design and construction and ensure to learn as much as you can from the manufacturers of the machines. Seek out existing similar businesses to learn from them. Getting as much knowledge as possible will help to effectively manage your business.
THE CHAIRMAN, MR. JAMLECK KAMAU INSPECTING THE MILL CONSTRUCTION WORKS
New Innovative Product of the Year Award, the best food exhibition booth and the best dressed staff at this regional Expo” a jubilant Agnes remarks.
WE ARE TRUSTING THAT GOD WILL CONTINUE TO GIVE US FAVOR, THE WISDOM, AND THE KNOWLEDGE WE REQUIRE TO GROW THE BUSINESS TO GREATER HEIGHTS
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GIVING BACK TO THE INDUSTRY After being in the industry for two years, Agnes who Is very committed the manufacturing Industry and a quick learner is confident that she has gathered enough experience to bring aspiring entrepreneurs under her wing to help with their startups. This, you could say, is her way of giving back to the food industry. “We were assisted by an existing Miller to set up. We also want to help anybody that is coming up, should they need any insights from us,” she reveals. She has already assisted three aspiring millers, particularly on how to produce high quality flour. “We take them through what we have been able to set up in regard to quality control because we have been able to achieve that very highly within our mill.” For anyone aspiring to venture into the milling or any other industry, Agnes advises that one must understand the industry first. “Do your background check and your feasibility study first before settling on what it is that you
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PREPARING FOR THE FUTURE “The company has been in operation for exactly two years only. We can say that we are now firm on the ground,” Agnes says. Giant Miller’s next plan is to build on its successes and learn from its challenges even as it seeks to build an even more formidable brand. Its success in producing high quality flour is one thing the company wants to maintain going into the future. “We have developed a passion for food production, especially because you realize that you can maintain quality and run the business without the usual struggles of corruption that many In the Industry face,” she says. “If you maintain quality internally, nobody has any business to accuse you of anything and if that happens you are in a good position to defend yourself.” One of the challenges that the company has had to deal with every now and then is raw material shortages. Procurement of good quality maize has been the most challenging. “Maize is like gold in Kenya; at times It can be so expensive and unavailable.” The erratic supply we are currently facing Is making
QUALITY ANALYSIS OF FLOUR IS A KEY PART IN THE PRODUCTON OF CANNA NUTRITIOUS MAIZE MEAL
FOODBUSINESSAFRICA.COM
THE GIANT MILLERS TEAM AT THEIR BOOTH DURING THE 2021 AFMASS FOOD EXPO
COUNTRY KENYA
the company to operate below its installed capacity. “Sometimes we are not milling everyday as we would have wanted to.” Chief Miller George notes that the company has a contingency plan to prevent the same problem from recurring in the future. “We have plans to put up silos to store grain in bulk so as to prevent challenges with raw material shortages,” he reveals. Silos aren’t the only plans that Agnes and
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her team have for the future. Methu, the Sales lead has his eyes trained on the North Eastern and the Coast region of Kenya, where the company is yet to have a footprint. Responding to rising demand for the flour also has the Miller's proprietors thinking about expanding the mill. “We had started moderately because we had no experience in this Industry and didn’t know how this business was going to go. However, the quick acceptability of our flour in the market means that we are currently operating 24 hours milling most of the week. We need a bigger plant,” Agnes says. The company also has plans to venture into porridge and wheat flour milling. “We are already working on modifying the current machine to be able to process porridge flour.” Giant Millers is also not shy to expand beyond the Kenyan borders, if the opportunity presents itself. “Today I received a message from Zambia, someone is asking me whether we can go set up a mill there.” Such Inquiries give her confidence that the options for Giant millers in the milling industry are still in plenty. Agnes who Is a firm believer In God has hope that the dream of future expansion will come to fruition. “We are trusting that God will continue to give us favor, wisdom and the knowledge we require to grow the business to higher heights.” FBA
SECTOR GRAINS & MILLING
WEBSITE www.giantmillers. co.ke
EMAIL info@giantmillers. co.ke
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COMPANY PROFILE
BEST TROPICALS FRUITS FOODBUSINESSAFRICA.COM
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FOOD STARTUPS AFRICA: BEST TROPICALS FRUITS
BEST TROPICAL FRUITS LIMITED PROCESSES TROPICAL TREE FRUITS INTO HIGH VALUE PRODUCTS
Best Tropical Fruits leverages on fruit processing concept to drive rural-economy development
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By Catherine Wanjiku
hat does Sunday morning smell like to you? It’s a simple question, but the answer for any individual person can be as unique as a fingerprint. For most people, I presume, it is a combination of freshly made pan-cakes and a cup of hot chocolate milk. Yummy right. However, on this day, it is not a Sunday morning but a warm normal weekday that the Food Business Africa team set out on a journey, 90 kilometres from Kenya’s capital, Nairobi, and we headed to Machakos county to the Best Tropical Fruits Limited’s (BTF) plant. From the minute we entered the company’s premises, my taste buds were sent into an overdrive of salivating, as the air was filled with a heaviness of sweet fruity aroma. 42
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In an instance of confirmation, we spotted a group of mango farmers at the receiving bay, some struggling to find balance on their bicycles loaded with bags of mangoes, others pushing their wheel barrows overflowing with the fruit, as some were offloading their produces from a lorry towering up high. We were at the centre of the action, presented with a front row seat to witness the turning of the fleshy fruit into orange gold. CHANGING THE GAME FOR GREATER IMPACT
BTF commenced operations in 2018 as a fresh produce exporting company to the Middle East, but later shifted its focus to processing tropical tree fruits such as mango, avocado, passion fruit and others, as over 40% of these highly perishable FOODBUSINESSAFRICA.COM
fruits never reach the market and go to waste, according to Patrick McMullin, the founder of the company.
Best Tropical Fruits Limited commenced operations in 2018 as a fresh produce exporting company but later shifted its focus to tropical fruit processing “We also realized with fresh produce export, we were basically sending out huge amounts of water on an aeroplane. It didn’t make sense as it translated to higher freight charges, which was an added cost. With processing, we discovered we deliver products with low moisture content that are value added, thus fetching higher prices in the market abroad, trickling down to the farmers who gain more value from their produce.” With the new strategy in place, BTF adopted a sustainable approach dubbed the Village Processing Hub, situated close to the farmers. The establishment features a number of processing lines, each focusing on a specific fruit, converting it into naturally processed high value products with longer shelf life, producing pulp, dried fruits and oils. Currently, demand for such natural products outstrip supply, both in the domestic and regional markets, with demand estimated to increase by at least 5% annually, according to the Founder. He adds that the multi-fruit processing approach, which takes place in the remote areas, suits the requirements of the locality, as majority of small-scale FOODBUSINESSAFRICA.COM
fruit farmers do not rely on one crop as an income source but grow whatever there is a market for. “We particularly chose to establish the facility in this particular area in Machakos County near Makueni County as it is the heart of the mango growing area, with presence of other fruits trees that complement production of the main fruit crop mango, which is highly seasonal,” said McMullin. According to the 2018 statistics by the Ministry of Agriculture Livestock and Fisheries, Machakos County is the second leading producer of mangoes in Kenya, after Makueni, with about 803,500 trees and an output of over 67,320 tonnes, valued at KSH 835 million (US$7m). Meanwhile, Makueni boasts of having 4,311,375 mango trees grown by 28,696 farmers. The crop is highly important, as 40- 60% of the population in the producing regions engage in the mango value chain. “Prior to commencing operations, the farmers were faced with limited access to market. Also, there was presence of middle men who were offering meagre prices for produce, coupled with lack of
technical knowledge and input to boost productivity. This most often resulted in a lot of hit and miss income streams over the years. “So, we decided to first set up a small processing plant dealing with aseptic mango pulp. We have succeeded to establish that line by leveraging on both local and international expertise. And over time, we built our capacity around processing other fruits into more valuable products, arising from farmers’ requests that we process their other produces for value addition,” highlighted McMullin. STRICT PROTOCOLS, ALL UNDER ONE ROOF
From a single mango pulp processing line, BTF has metamorphosed to also undertake drying of the fruit and added bananas into the mix. Further to that, the company is also processing treetomatoes and passion into pulp and extracts oil from avocado, peanuts and macadamia. All these processes are undertaken meticulously under one roof at its state-of-the-art facility, comprising of
BENEDETTA, ONE OF THE SMALL HOLDER FARMERS CONTRACTED BY BTF TO SUPPLY FRUITS TO ITS FACTORY IN MACHAKOS
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FOOD STARTUPS AFRICA: BEST TROPICALS FRUITS
a spacious holding bay full of crates with produce, sorting and cleaning area, pristine preparation room, modern processing lines, fast drying chambers,
Establishment of the processing company in the locality has created job opportunities, especially among the youth and women packaging stations and a storage area. The facility is partly powered by solar energy. Other than having a well-equipped facility, BTF follows to the letter the 44
recommended guidelines on food safety and quality to ensure their products are top notch and well suited for the market. Their practices are governed by certification scheme such as the Kenya Bureau of Standards (KEBS) and internationally recognized Food Safety System Certification. During our visit, the company was going through the fastidious audit process of renewing its FSSC 22000 certification, a testament to its implementation of the most robust food safety management system in its operations. Ann Gatugi, the Quality Assurance Manager at the factory divulged to us that the quality control of its process is not just centred around the factory, but starts from the farm all the way to the market. “For us quality of the raw material is key as it dictates the grade of the end product. Therefore, to ensure we deliver the best products in the market, we work closely with the farmers by offering them farming expertise and guidelines on Good Agricultural Practices such as pest and disease control,
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nursery establishment, proper harvesting methods, among others,” she said. Still at the farm level, BTF, has put up a number of storage stations, offering a conducive environment where farmers collectively aggregate their produce prior to delivery to the factory. According to FAO, around 14% of the world’s food is lost after harvesting and before reaching the designated market point, including through on-farm activities, storage and transportation. Ann notes that offering extension services just scratches the surface, prompting the company to put in place strict requirements of the allowable raw materials into the factory. This necessitates sorting and grading of produces at the point of entry against parameters such as level of maturity, size, presence of residues, level of sweetness, among others. The raw materials that meet the recommended criteria are processed into more valuable products with minimal additives and treatment. To further maintain quality of the end products, BTF utilizes aseptic packaging for pulps, flexitank for the edible oils and well-sealed plastic packaging for dried fruits.
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NOTHING WASTED
As part of the company’s processing operations, it utilizes the waste products to produce useful items such as turning avocado and mango seeds into charcoal briquettes and the fleshy wastes fed into the bio-digester to fuel its boilers. “We have also incorporated the use of black-soldier fly to convert food and organic waste into nutritious and protein-dense biomass,” states McMullin, as he ran his hands through a mound of decomposing fruit peels, where the larvae were being reared. In pursuit to further sustainably run its operations, the factory’s roof is covered with solar panels generating renewable energy that meets a percentage of the facility’s electricity needs. It has also set up a water recovery system that channels the recovered water to irrigate plants around its compound. After finalization of the product processing, BTF ships its products abroad to Europe and Middle East, where there is ready market for products such as dried fruits. According to Research and Markets, dried fruits featuring as one of the to go to healthy snacks, is expected to register a CAGR of 7.8% across the
A BTF STAFF INSPECTING THE QUALITY OF FRUITS SUPPLIED BY FARMERS TO THE FACTORY
FOODBUSINESSAFRICA.COM
MANGOES ARE THE MAIN TROPICAL FRUIT TREES THAT ARE PROCESSED AT BTF FACILITY IN MACHAKOS COUNTY, KENYA.
globe, from a value of US$6.34 billion in 2020 to US$9.5 billion in 2025. However, in the African market, the product category is not that popular and faces stiff competition from fresh fruit which are readily available.
processor has also encouraged her to grow other fruit trees like tree tomato and passion, reducing her reliance on mango, which is highly seasonal. Through this diversification, Benedetta, just like KEY NUMBER
FARMERS AT THE CENTRE OF THE OPERATIONS
The value-added products fetch higher value which enables BTF to offer farmers competitive prices for their suppliers, boosting their living standards. “You don’t have to provide farmers with money. You provide them with market and that is how you get the ball rolling,” emphasised McMullin. Benedetta, one of the small-holder farmers contracted to supply BTF with fresh produce can attest to that, stating, “Before I discovered Best Tropical Fruits I used to sell my mangoes to the middle men who were offering unfavourable prices for the produce. Also, the brokers were only taking a portion of the harvest, leaving the rest to rot and go to waste in the farm. However, since I partnered with Best Tropical Fruits, I have managed to more than triple the number of mango trees in my farm, and with their guidance I am able to produce good quality fruits that match the factory’s requirement.” She further highlighted that the agro-
6.34B
US$
ESTIMATED VALUE OF GLOBAL DRIED FRUITS MARKET IN 2020 the rest of the farmers, are assured of a year-round income stream. Other than availing ready market for the farmers’ produce, establishment of the processing company in the locality has created job opportunities, especially among the youth and women, as BTF has directly employed about 40 personnel and created over 200 indirect job opportunities. “The chief of police of the area recently said to me that since the factory had come into the area, he did notice some of the social vices
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FOOD STARTUPS AFRICA: BEST TROPICALS FRUITS
A FARMER DELIVERING HIS PRODUCE TO BEST TROPICAL FRUITS LIMITED FOR PROCESSING.
COUNTRY Kenya
SECTOR Fruits & Vegetables
WEBSITE www. besttropicalfruits. com
EMAIL info@ besttropicalfruits. com
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that were rampant in the past such as insecurity and domestic violence had significantly declined. From all those angles I think we’ve had a sizeable impact,” said McMullin. DUPLICATION OF VILLAGE PROCESSING HUB
Despite BTF seeming to have hit the nail on its head by unwaveringly supporting the farmers, its development and growth has been dotted by a myriad of challenges, which until to date the company strives to offset. “Being in the rural area, one of the challenges that we have faced from the onset is the irregular supply of electricity from the national grid. Even though we have installed solar panels, it is still not sufficient to meet electricity demands of a facility such as this. But we are confident that things will improve courtesy of projects such as the government’s Last Mile Connectivity program.” In addition, he notes that it is always a painstaking process to obtain the necessary operational and regulatory licences, calling for streamlining of the processes. “The number of licenses and permits that we require are over 20, costing almost US$20,000 annually including audits and corrections. It’s not that we are against licencing, because it is important to maintain and enforce standards, but what I find is that most of the charges do not match the size of the enterprise. In some instances, we pay the same fee as well-established facilities who have been in operation for years. And the process of
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licensing is so fragmented and scattered, bringing about duplication of tasks, handled by different organizations. The process should be made easier and affordable, in turn encouraging more investments in the economy.” Looking into the future, Patrick advocates for replication of the Village Processing Hub concept across the country, by both the private and public sector players. He added that the company is open for investments and partnerships which will boost the growth of the enterprise into processing of more fruit crops into high valuable products strengthening its farmer base and providing steady employment to mainly women, who have never had employment opportunities. “As a country we should have more Export Processing Zones (EPZs) in all the rural areas rather than having a couple in the well-established cities, far away from where the producers of raw materials are located. Coming near to the source cuts wastage that takes place during transit, minimizes the high transport cost that eats into income, and most importantly offers farmers a reliable market, creates job opportunities for locals and triggers infrastructural development in the rural area.” “The Village Processing Hub concept has been tried, tested and proved to be a success as Machakos county was a few years ago considered to be a food insecure county. Now it does not only feed itself but is also a food exporting region,” he concludes. The model is now ready to be taken to other parts of the country. FBA FOODBUSINESSAFRICA.COM
Dairy
BUSINESS
TRENDS IN FORMULATING, PROCESSING, PACKAGING & CONSUMPTION OF DAIRY PRODUCTS
Cheese makers innovate as market impacted by consumer taste changes amid Covid-19 pandemic
T
By Catherine Wanjiku
here is nothing overt about cheese, from its texture, flavour, form, to even how it came to being. Legend has it that thousands of years ago, a trader filled a bag made from a sheep stomach with milk before embarking on a long journey. After the ride, he discovered the motion, combined with the heat and the enzymes in his bag, separated the curds and whey in the milk, creating cheese for the very first time. FOODBUSINESSAFRICA.COM
Since that mythic ride, humans have gone on to create more than 2,000 kinds of cheese, each with its own distinct organoleptic properties that differ greatly. This is due to the fact that the milk used to make cheese is subjected to varied handling and processing methods. For instance, extra-hard cheeses, such as Parmesan and Romano, are produced from very hard curds. These cheeses are low in moisture, produced from partially skimmed milk, and are matured slowly over 1–2 years by MARCH/APRIL2022 | FOOD BUSINESS AFRICA
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and Markets, the global cheese market was worth US$69.7 billion in 2019. The market is further projected to reach US$112.8 billion by 2025, growing at a CAGR of 8.4% during the period 2020-2025. Despite the projected strong growth, it is important to note that cheese sales in foodservice, deemed as one of its main markets, fell in recent years due to COVID-related restaurant closures. But high retail sales in the category proved just how important cheese is to consumers. This was driven by COVID-19 related food trends, such as the rise in home cooking, craving for comfort foods, and the need to keep convenient, healthy snacks on-hand for remote workers, among others.
bacteria. Meanwhile, for hard cheeses such as cheddar and Kazak, the curd is acidified before salting and pressing, and their ripening period is 3–12 months, whereas for semi-hard cheese, this period is 2–3 months. Semi-soft cheeses such as Limburger and blue cheese are ripened using bacteria and/or mold. The multifarious nature of cheese has lent this iconic ingredient in countless cuisines and recipes around the world. What it is even more impressive is that cheese can be eaten at any time of the day, from a Western omelette at breakfast to nachos as a midnight snack. Many have argued that adding a piece of it to a simple meal, gives it a new upgraded twist. Cheese is also valued as a good source of nutrients, such as protein, calcium, phosphorous, zinc, vitamin A and vitamin B12.
VARIED CHEESE FORMATS WITH A KNACK OF SPECIFICITY This slight shift in consumer behaviour has made processors and cheese makers to revamp their operations to align with consumer preferences. For instance, with most people at home and grazing throughout the day, individually wrapped, single-serve cheeses have brought to play convenient and satisfying options. This trend is also addressing consumers’ interests in taste adventure as smaller portions and packaging encourage experimentation. According to Mintel, 77 percent of consumers view cheese as good on-the-go food, and 51 percent wish more varieties were available in portable packaging. Aligning with this trend, American speciality cheese maker, Emmi Roth introduced its new Roth Flavor Ups blue cheese crumbles in 1-ounce single-serve cups, three and nine-packs. The single serve cheeses have also become more ideal as with COVID-19, grocers implemented new measures in their
HIGH CHEESE DEMAND STOPS AT NOTHING Earlier, the consumption of cheese was largely confined to western countries, however, with the increasing trend of westernisation of food consumption patterns, along with growing economy, rise in middle class population and increasing urbanisation, the consumption of cheese has spread like wild fire across the globe. Also, exploration of international cuisines such as Italian and Mexican, which use substantial portions of cheese is driving demand of the product. Overall cheese consumption continues to increase due to its versatility and adaptability to recipes in favourite meals like pizza, tacos, and burgers sold in fast-food outlets and organized retail stores. According to Research 48
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77% OF CONSUMERS VIEW CHEESE AS A GOOD ON -THE-GO FOOD, AND 51% WISH MORE VARIETIES WERE AVAILABLE IN PORTABLE PACKAGING. stores such as minimizing surface contact and thus some had to momentarily close the deli cut-and-wrap counter. With the rise of home-cooking, consumers have also been clamouring for food and beverage items, including cheese, that promise easy and quick meal prep experience. This has made shredded cheese to become the most popular cheese format in the market, overtaking chunktype cheeses, according to Packaging Facts. One of the latest offerings here is a line of organic “thick cut off-the-block” shredded cheeses from Organic Valley. The line is available in five varieties, including mozzarella, 3 cheese Italian, 3 cheese Mexican, mild cheddar and sharp cheddar. In Kenya, Happy Cow has gone further to introduce grated cheese under its Hollander brand. Meanwhile Zimbabwe based dairy processor, Kefalo Foods, has diced versions of its cheddar, gouda, and mozzarella cheeses. Most people prefer shredded/grated or diced cheese while cooking, as they easily mix with other ingredients and can be used as a topping for foods such as salads, soup, pizza, lasagna, and many other savoury dishes. Meanwhile, the pandemic has also made many consumers crave lots of comforting food and flavours, with items such as sandwiches topping the list, driving sales of sliced cheese which are now readily offered by most cheese makers across the globe. A perusal through the frozen dairy isle, I bet you have most likely caught sight of cube shaped-mouth size cheese, which have gained popularity among cheese boards fans. This trend is also driven by the hype of taking an Instagram-able artsy photo of a tasty cheese serving among the millennials. Kenyan based artisan cheeses maker, Brown’s Cheese, offers a curated board platter comprising a variety of cheeses such as Delia’s Blue, Chilli Chive Cheddar, Panner etc. coming in varied shapes and paired with jams, dried fruits and crackers.
driving convenience in this segment, North Africa’s cheese giant Land’Or has introduced its creamy cheese in a squeezable bottle, setting it as a perfect alternative to sauces. Crossing borders, Kraft Heinz recently launched its new Philadelphia-branded cheese dips, leveraging the popularity of Hispanic inspired flavours, including Jalapeño Cheddar and Southwest-Style with black beans and corn. In India, Hatsun Agro Products, a privately held dairy company, launched a new cheese spread in 2019. Cheese mongers and food scientists have also set about finding ways to make the product safer to consume and last longer on store shelves with the innovation of dried/ dehydrated cheese presented in form of powder. “Over the last couple of years, we've seen cheese come out and break the mold from your conventional refrigerated set only. We've seen dried or dehydrated natural cheese become an interesting space both in snacking or pure consumption … that's something that has been really interesting and exciting to see because I think it gives the opportunity to have a broader consumption and broader footprint in the retail landscape for cheese as a segment,” noted Mihira Rami, marketing director – consumer brands for the Borden cheese brand, during an interview with Dairy Foods. In this category, US-based Blue Grass Ingredients has been at the fore-front of driving innovation. The research-driven specialty ingredient provider currently offers six cheddar cheese powders and blends in various colours and nearly 20 other varieties. CHEESY SNACKING OPTIONS UP FOR GRABS Going hand-in-hand with the ongoing trend towards convenient cheese formats is an allure for snackable cheese options. Snacking was a growing trend before COVID-19. However, with many consumers working just
CHEESE MAKERS UNLEASH MORE SURPRISES As consumers’ collective insatiable appetite for cheese has continued growing, cheese makers have come up with what can be termed as an ingenious idea - semi-solid cheese in form of a cream that can be used as a spread or dip with snacks such as Parmalat Gouda cheese spread and Président’s Cream Cheese by South Africa based Lactalis. Still in South Africa, Lancewood offers Mascapone cheese ideal for creating irresistible dishes. Further FOODBUSINESSAFRICA.COM
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OVER THE LAST COUPLE OF YEARS WE'VE SEEN CHEESE COME OUT AND BREAK THE MOULD FROM YOUR CONVENTIONAL REFRIGERATED SET ONLY MIHIRA RAMI, MARKETING DIRECTOR-CONSUMER BRANDS FOR BORDEN CHEESE
a few feet from the kitchen, it is more popular than ever. Also, many consumers are reported to be replacing meals, usually lunch with snacks, attributable to the lockdowns and the altered eating habits spurred on by the pandemic. The pro-snacking era is aggravating towards popcorns, puffs, crisps, and crackers with a cheesy touch, courtesy of the notion they provide a filling source of protein, vitamins and minerals by the virtue of having cheese in it. “Innovation going well beyond traditional carbloaded snacks to protein-focused snacks is really driving the category,” explains Samuel Kestenbaum, CEO of ParmCrisps, based in the US, which produces oven-baked snacks crafted from 100% aged Parmesan cheese. The snacks are ketogenic-diet-friendly, gluten-free and sugarfree. “Today’s shoppers desire a clean, unprocessed highprotein and low-carb snack made with premium, simple ingredients,” he says. “It’s important to us that we offer consumers something that satisfies their desires both for comfort and their need for better-for-you snack options.” To this end, snack kits are combining different varieties of cheeses with other snackable ingredients. In line with this trend, Dutch Farms has introduced string cheese with one hard-cooked peeled egg and pepperoni; and a pepper jack cheese stick with one hard-cooked peeled egg and Genoa salami. The Protein Packs offer 18-20 grams of protein and only 1-2 grams of carbohydrates per serving. Sargento Foods Inc, American food producer, recently introduced Sargento Balanced Breaks cheese and crackers in partnership with Mondelez International. The offerings include pepper jack and colby jack natural cheeses and Ritz Mini crackers; Gouda and sharp cheddar natural cheeses and Triscuit Mini Original crackers; Monterey Jack and mild cheddar natural cheeses and Wheat Thins Mini Original snacks; just to name a few. In Africa, artisanal cheese producer based in South Africa, Fairview Cheese, has an innovative cheese & crackers combo comprising of 3 slices of cheddar with 3 black garlic charcoal crackers. Meanwhile, the development of 100% cheese snacks 50
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(as crisps, bites, and balls) is a recent food innovation with exciting potential. Crunchy cheese bars have started to emerge and may prove to be the most popular format yet. Examples include the American brand Just the Cheese which produces crunchy baked cheese bars in mild and aged cheddar, jalapeno cheese, and grilled cheese varieties and Sonoma Creamery’s line, which includes extra crunchy options like Everything Cheddar. Hispanic cheese maker Nuestro Queso has also introduced “fries” made out of cheese. This keto-dietfriendly offering can be pan-fried or deep-fried or cooked in an air fryer, while Crystal Farms debuted cheese wraps last year, a low-carb alternative to the standard tortilla. FLAVOURFUL ADVENTURE The snacking trend is mingling with pursuit of adventurous flavours and variety. While travellers stayed grounded during the pandemic, they quickly learned they don't have to leave home to experience the world's best. They have turned to global cuisines, giving them a chance of travelling the world through their taste buds. Cheese is one of those products whose taste greatly varies and is distinct to its area of origin, thus appeals to consumers looking for a more gourmet, global culinary experience. “The global cheese market has become smaller, more intimate, because consumers have been exposed to a wider variety of cheese from different countries with unique flavours, textures, and applications,” says Melissa Abbott, vice president for Hartman Retainer Services, the research division of the food consultancy The Hartman Group. Dutch multinational dairy cooperative Friesland Campina, with operations across the globe, produces a variety of cheese inspired by a specific region’s traditions
such as its Royal Hollandia. Meanwhile, its North Holland Gouda cheese is made from 100 percent North Holland meadow milk and the Napolact cheese brand is inspired by the Transylvania tradition. With the rising charm for ethnic inclined cheese, the Dairy Farmers of America is mulling growth of its Hispanic FOODBUSINESSAFRICA.COM
cheeses to add more varieties. “We know that Hispanic cheese as a segment is growing, but now we're starting to see more variety and more authenticity in some of the mainstream sets around that space. So it used to be that everyone had a four-cheese Mexican blend, but now you're seeing more specific varieties such as quesadilla, asadero or even certain offerings that are for certain dishes specifically as well,” said Mihira Rami, marketing director at DFA. Up and above ethnicity, consumers today crave more adventurous flavors. According to Mintel data, cheese combined with herbaceous flavors like chive & onion, truffle, dill & garlic, garlic & herb and chili have witnessed significant increase in sales over the last several years. Saputo’s Great Midwest brands took the classic taste of aged Cheddar and blended in favourite flavours like fiery, hot ghost peppers, creating a uniquely different, artisanal cheese. The company has made it possible for one to take a visit to the Greek Islands without leaving home, by slicing into the Great Midwest Mediterranean Cheddar cheese, featuring a combination of sun-dried tomatoes, Kalamata olives and a spice blend. These ethnically-flavoured cheeses FOODBUSINESSAFRICA.COM
create a distinctive eating experience for consumers. Kenyan cheese makers have also turned focus towards exciting flavours with Raka Cheese unveiling Feta in a cumin, fennel and herb infused olive oil, joining its spicy stable of cheddar cheese. Meanwhile, competitors Happy Cow and Bio Foods have introduced Gouda and Cheddar cheese rubbed with mixed herbs, cumin and black pepper, etc. ITS NOT JUST CHEESE BUT A WHOLE LOT MORE While cheeses can be found in different formats and flavours, there has been a boiling flurry for substitutes that align with consumers’ lifestyle. Rising popularity of flexitarianism and veganism has stirred a movement towards creation of plant-based cheese options. Dairy-free cheese made from natural products like plant milk, seeds, nuts, and rice are popping up on shelves and are seen in interesting new flavours like spicy queso, smoked provolone, and tomato cayenne. Two of the newest offerings in this space are cheddar and pepper jack cheese alternatives from Miyoko’s Creamery, made using cultured legumes and oats. Fairview SA has a dairy free range of cheese coming in cheddar,
mozzarella and parmesan flavours. Meanwhile, Kenya based Brown’s Cheese, produces its plant based cheese options using locally grown lentils and soy, combined with fresh coconut oil, canola oil, carrageenan (algae) and cassava. Though plant-based cheese still represents a very small portion of the overall cheese market, there’s significant opportunity for growth. According to Bluegrass ingredients, the plant-based cheese market is poised to grow faster than dairy cheese over the next several years, with a CAGR of over 8 percent through 2024. Consumers are also hungry for cheese produced with a limited list of ingredients and from more sustainable supply chains. Organic Valley recently unveiled Organic American cheese slices that fit this trend. They are made with just seven ingredients, including butter produced with milk from pasture-raised cows. In 2019, Kraft Heinz unveiled new Kraft Natural Cheese made with milk from cows raised without the artificial
KEY NUMBER
US$
112.8B
PROJECTED VALUE OF GLOBAL CHEESE MARKET IN 2025 growth hormone rbST. Cheese manufacturers are also accommodating consumers with lactose intolerance, preventing them from making dietary sacrifices with the launch of lactose-free cheese options. Fonterra has added a new range of cheese with a lactose free option to its Anchor brand. Meanwhile, due to the pandemic,
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consumers have leaned towards healthy diets with immunity-support and wellness score card. Babybel’s newly launched functional cheese snack is leading this trend in the cheese category with its Babybel Plus+ Probiotic containing live, active cultures of LGG probiotic strains while Babybel Plus+ Vitamins includes vitamins A and B12. SUPPLIERS BACK THE GROWTH TREND Cheese has been an essential part of the human diet for centuries and it is set to remain so for many years to come. In the recent years, the industry has witnessed innumerable expansions, as processors concentrate on diversifying their product range to draw in more customers. To meet the rise in demand, Tetra Pak, a leading supplier of cheese making equipment, developed 14 new Best Practice Lines (BPLs) for cheese manufacturers. The processing lines utilise proven equipment combined with industry-leading expertise to create a safe and easy route to profitable cheese production with a higher yield, while
KENYAN CHEESE MAKERS HAVE ALSO TURNED FOCUS TOWARDS EXCITING FLAVOURS WITH RAKA CHEESE UNVEILING FETA IN A CUMIN, FENNEL AND HERB INFUSED OLIVE OIL incorporating the traditional cheesemaking techniques. The new BPLs also factor in sustainable cheese production, with solutions focusing on reducing water, steam, and power consumption incorporated into the lines. Further to that, the hygienic production process enables a longer product shelf life, as well as consistent and replicable 52
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quality. “People are becoming more adventurous in terms of taste and texture, and we have the facility to accommodate this, ensuring that there is no compromise on the overall quality of the end result,” Fred Griemsmann, Vice President of Cheese and Powder Systems at Tetra Pak said. Early 2021, the food packaging and processing company partnered with Rockwell Automation to develop technologies aimed at reducing variability and improve quality consistency in cheese and powder solutions. The collaboration – starting with evaporation and spray drying – has resulted in Tetra Pak’s new Powder Plant Booster solution, to be packaged with Rockwell Automation’s Model Predictive Control (MPC) and its Pavilion8 and PlantPAx MPC technology. Processing lines are not the only important components in cheese making craftsmanship, as the processors also rely on essential ingredients and solutions to produce their products. Supporting the cheese makers in their quest to avail novel products, leading ingredients makers such as
TETRA PAK'S BEST PRACTICE LINES SUPPORT PRODUCTION OF HIGH QUALITY CHEESES
DSM, Arla Food Ingredients, IFF, Chr. Hansen, constantly launch key solutions such as cheese cultures, stabilizers, milk coagulants among others. For instance, DuPont Nutrition & Biosciences in 2020, prior to its merger with IFF, launched CHOOZIT BC 02, a new phage alternative for cheese makers looking to meet the increasing global demand for pizza cheese and meet consumers’ preference in terms of pizza cheese browning. In the same year, Arla Foods Ingredients, introduced a new product for cooking-stable cheese products dubbed Nutrilac FO-7922 Organic. The solution particularly helps in cooking-stable cheese products – such as grilling cheeses and cheese fries. In 2021, DSM expanded its Dairy Safe cheese bio-preservation portfolio with a new range of phage-robust culture rotations that offer a more robust system that effectively manages bacteriophages and overcomes spoilage issues in cheese. It is evident that there are a wide range of trends emerging in the cheese industry, some of which will have an effect in the short term and some in the long term. However, what is certain is the fact that the cheese industry will continue metamorphizing, as consumers tastes and preferences change across the World. FBA FOODBUSINESSAFRICA.COM
BeverageTECH TRENDS IN FORMULATING, PROCESSING, PACKAGING & CONSUMPTION OF BEVERAGE PRODUCTS
Ready-to-drink beverages evolve into trendier, highly functional and premium products A shift to premiumization, functionality drive growth of next generation ready-to-drink beverages
O By Paul Ongeto
nce predominantly focused on the younger market and value offerings, the ‘ready-to-drink’ (or ‘RTD’) category has reinvited itself into a trendier category offering premium products that taste better, add functionality to the diet and are carefully packaged for that perfect Instagram look. And it’s booming as a result. FOODBUSINESSAFRICA.COM
RTDs are single-use beverages that are packaged ready for immediate consumption upon purchase. They first enjoyed notable success in the 1990s and early 2000s, offering approachable – but often highly sweetened – flavours to consumers who saw traditional spirits and mixers as unapproachable. However, the past few years has seen the category shake off its association with low-grade or party drinks MARCH/APRIL2022 | FOOD BUSINESS AFRICA
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consumers mainly seek choices that include antioxidants (47%), promote brain health (40%), are anti-inflammatory (35%) or have probiotics (30%). The response from the market has been a release of a variety of new ‘fusion’ beverages that are both ready-todrink and claim to have health-related functional benefits,
IN THE RTD CATEGORY, CONSUMERS MAINLY SEEK CHOICES THAT INCLUDE ANTIOXIDANTS (47%), PROMOTE BRAIN HEALTH (40%), ARE ANTI-INFLAMMATORY (35%), OR HAVE PROBIOTICS (30%).
and emerge as better-for-you, craft, super premium, and offering a sophisticated array of flavour profiles. The market for RTDs has expanded from its being just a seltzer dominated category and is now broader than ever, ranging from iced coffees and teas to kefir yoghurt drinks to canned wines and cocktails. In this article, we’ll review the evolution of the RTD beverages and the trends that are driving growth of the category in 2022 and beyond.
such as cannabis-infused iced teas and collagen waters. RTD probiotic beverages have also become immensely popular as they allow health-conscious consumers a quick and easy way to potentially improve their gut health. Global Market Insights Inc. claims that by 2023 the global market for probiotic ingredients is expected to reach US$64 billion. There has also been an increase in brands providing healthy and convenient solutions for consumers who may even be too busy to prepare snacks or meals, by releasing RTD products that can be consumed either as a ‘snack’ or meal replacement. Products such as RTD smoothies are a simple way for shoppers to ensure they are getting key nutrients from fruit. UK brand Earlybirds took this further
INTEREST IN HEALTH AND WELLNESS DRIVES INNOVATION The main selling points for ready to drink beverages was its interesting packaging. An increasingly healthconscious consumer has however made manufacturers realize that it’s more important to focus on the innovation of the beverage itself, leading to the rise of functional RTD beverages. According to Frost and Sullivan research, functional drinks represent the fastest growing functional market. Research from Mintel has found that, in the RTD category, 54
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by creating a ‘snacking beverage’ range; providing a high-fibre, plantbased drink for time-poor, healthconscious consumers. Energy drinks are a common example of drinks with functionality and have always been a strong driver of the RTD market. They were and still remain the go to option whenever consumers are looking for caffeine-enhanced beverages that offer an additional buzz. The Covid-19 pandemic among other factors has made consumers conscious of what they put into their bodies and this has forced the category to start redefining itself. Whilst we previously saw energy drinks mainly containing the ingredients of sugar and caffeine, brands are now steering towards more natural functional ingredients. Beverage giant Coca-Cola is one of those leading the paradigm shift in this category, having launched its first
energy drink called Baya which contains caffeine naturally found in coffee fruit as well as the antioxidant vitamin C for immune support. Research and Markets notes that the addition of healthy ingredients into energy drinks is giving the subcategory a new impetus for growth. The market research firm now predicts that energy drinks subsegment will garner a revenue of US$91.17 billion by 2028 and witness dominant growth during the forecast period.
energy drink with naturally-derived caffeine, guarana extracts and B vitamins. Similarly, Radnor Hills has unveiled a new line of natural energy drinks, boosted with seven B vitamins and natural caffeine, designed to give consumers more energy without the sugar crash. More recently, PepsiCo
enough for today’s consumers. This has compelled manufacturers to produce higher quality, better tasting products largely comprised of natural ingredients. “People love the convenience, but want better quality from their RTDs,” says Brent Albertson, CEO of Zing Zang,
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PREMIUMIZATION HELPS SHAKE OFF “LOW-GRADE” TAG When RTD beverages first came to the market, they were mostly sugary, made of unnatural ingredients and relegated to the bottom shelf. Their main selling point was convenience and attractive packaging. But convenience alone is no longer
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PROJECTED VALUE OF GLOBAL RTD ALCOHOL MARKET SIZE IN 2030 which makes mixers and a new RTD line. “Everybody remembers those ‘90s-era RTDs, but it’s a whole new world now for RTDs.” Christopher Wirth, cofounder of Volley, a new, 100% blue agave tequila-based seltzer brand notes that using natural flavors is very important for RTD products. “We use organic juice, sparkling water and high-quality tequila. We use no artificial flavors, no artificial ingredients. We found the highest-quality tequila that we could afford to put into our RTDs. We’re obsessive with our ingredient quality and transparency.” There has been a stigma that RTD beverages especially canned cocktails are low-grade or party drinks. This kept a majority of consumers from trying these products. Vice President of global marketing for Bombay Sapphire, Natasha Curtin however notes production of better quality RTDs has completely turned the old stereotypes on its head, propelling the category into one of the top growth sectors in the alcohol industry. The category’s renaissance has attracted premium well-established brands particularly in the alcohol sector. Over the last two years, premium brands such as Absolut, Ketel One, Bombay Sapphire, and Jameson have all entered the canned RTD space. Some of the most noticeable new product launches in the space include Jameson Ginger &
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Lime, Smirnoff Raspberry Crush and Lemonade premix can, and Constellation Brands’ Next Round Cocktails. The entry of premium alcoholic brands recognizable to most consumers has further toned down the lowgrade stigma that had dogged RTD beverages for years, further stimulating growth. As more consumers taste RTD beverages, they have come to realise that because a
CANNED RTD BEVERAGES OFFER A MORE SUSTAINABLE AND CONVENIENT ALTERNATIVE TO GLASS WINE BOTTLES, AS CANS HAVE THREE TIMES MORE POSTCONSUMER RECYLED MATERIAL THAN GLASS BOTTLES. ALLIE GRISWORLD, CO-FOUNDER, MAYNE & CO.
cocktail isn’t being shaken in front of you, doesn’t mean the ingredients and craftsmanship isn’t present in the final product. “The future of premiumization in the category will revolve around this experience — not just great tasting cocktails, but also bringing the level of variety, known and loved brands, and personalized experience consumers might expect on-premise,” explains Nathaniel Davis, CEO of Drinkworks. HEALTHY HALO CATCHES UP WITH RTD ALCOHOLIC BEVERAGES Alcoholic beverages are normally not associated with any health claims. RTD alcoholic beverages however find themselves in a unique position whereby their growth coincides with consumer demands for healthier choice. Consumers are making active decisions to reduce the amount of alcohol they are consuming, making RTD alcoholic beverages, which normally have low alcohol volumes an attractive option for them. The trend is however going beyond low alcohol volumes to incorporation of ingredients that are considered to have a healthy halo effect. “Consumers are looking more now for what’s in products, what they’re putting into their bodies,” says Christopher Wirth, cofounder of Volley, a new, 100% blue agave tequila-based seltzer brand. Volley’s initial flavor lineup includes Zesty Lime, Spicy Ginger, Sharp Grapefruit and Tropical Mango. IWSR notes that consumers’ aversion to wheat, barley and gluten has motivated producers to look for alternative alcohol sources, and in some cases, move away from malt 56
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entirely. Fermented cane sugar is fulfilling this niche for many products, offering a gluten-free base for their RTDs. Crook & Marker, launched by the founder of Bai Antioxidant Beverages is an example of pioneers in the use of novel ingredients. The better-for-you spiked seltzer is made with ‘organic BaseBrew alcohol’ brewed from cassava root and ancient grains including quinoa, amaranth and millet. As more people move towards low alcoholic beverage, IWSR notes that a significant group still want to enjoy RTD beverages with high alcohol content. “High strength seltzers are now emerging as a new sub-category, with notable releases announced from both Pabst and Four Loko of 8% and 14% ABV respectively,” IWSR said. SLEEK CANS STILL A MAJOR SELLING POINT Bright, eye-catching colours, simple designs and slender cans have been the major selling points for beverages in the RTD category. This trend is expected to continue, albeit at a more accelerated pace, as the visual nature of social media drives consumers into picking products that are visually appealing in a way that is suitable for being photographed for posting on social media. “Due to the portable nature of the category, Instagramfriendly design is key,” IWSR notes. “If drinks makers get the design of their brands right, they’re much more likely to be photographed by consumers in aspirational and brand-aligned settings.” At this age when consumption is endorsement, especially among millennial consumers, brands that are visually appealing for social media are certainly going to have an edge over their peers. An advantage that RTD beverages have always had is that from the word go, they have always been packaged in cans, which are more sustainable compared ton plastics or glass. “Canned RTD Beverages offer a more sustainable and convenient alternative to glass wine bottles, as cans have three times more post-consumer recycled material than glass bottles,” emphasized Allie Griswold, co-founder
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of Mayne & Co. Concern for sustainability as well as the need for a convenient and sleek look only mean that cans will continue being the dominant packaging for this category. While cans continue to dominate this category, RTD beverage makers have started exploring alternative packaging for a number of reasons including product differentiation and shelf stabilization. High West Distillery recently unveiled two new RTDs in glass bottles: a Manhattan and Old Fashioned, both barrel-finished. Explaining the shift from cans High West Master Distiller Brendan Coyle said: “From a quality perspective, we don’t think there’s a lot lost by canning cocktails, but from a perception perspective, we do think something can be lost in terms of buyers viewing what is a high-end product.” Another brand driving the shift away from cans is BeatBox Beverages which has a wine-based punch that is packaged in carton packaging. TAKING A SHARE OF ON-PREMISE SALES RTD beverages, cocktails in particular, gained traction this year partly because consumers could not drink their favorite bartender’s cocktails. Nielsen reported that the Covid-affected period saw an increase of 86.8 percent year-over-year growth for all RTD cocktails, opposed to 21.5 percent pre-Covid. One would think that as consumers head back to bars, the RTD beverage fad could lose its fizz. Although designed for the on-the-go consumers, manufacturers are pushing this category into bars. Texas Speciality Beverage in a report notes that customers are more likely to look for RTD beverages even when they visit their favorite bars and restaurants. After all, they are already used to the size and innovative mixes of the products, which are usually not available in the regular packaging or glass servings. Additionally, some customers “simply find the smaller can packaging of RTD beverages to be safer for consumption
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in general.” Data from BackBar, a software solutions company for bars, back the claim that RTD beverages are indeed finding their place in on-premise consumption. The company noted that among users of its software, prepared cocktails now make up 19.1% of products classified as ready-todrink beverages. In 2019, prepared cocktails accounted for just over 14% of ready-to-drink inventory in Backbar. The software company further revealed that seltzer brands have seen growing success in the on-premise space, mostly thanks to strong gains by White Claw and Truly Hard Seltzers and trend is expected to continue as more RTD brands find their ways to drinking premises. A CATEGORY ON THE RISE RTD beverages will continue to gain market share, drawing in consumers who typically buy beer or wine. On-the-go consumers in almost all areas of the beverage industry are also expected to continue to be drawn in this category as it evolves to offer every form of refreshment from RTD coffee and tea for breakfast to snack and meal replacement beverages. U.S. sales for the alcoholic RTD category is expected to reach US$146 billion by 2030, an increase of about 20% annually, According to a recent study by FactMR. Globally, the RTDs alcohol market size which was valued at US$ 32.94 Billion in 2021, is expected to reach US$85.5 Billion in 2030, at a compounded annual growth rate of 11.2% from 2022 to 2030, according to, according to InsightAce Analytic. To succeed in this category, RTD brands must strive to meet consumer demand by featuring more sophisticated flavors, healthier ingredients, and various alcohols. The brands that succeed will have upped their marketing and design game as well. FBA
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Country
Focus
Unlocking Zambia’s agricultural potential through smart investments in agro-processing The country is seeking investors in fruit and veg to boost agro-processing and earn foreign exchange
Z
By Paul Ongeto
ambia, in southern Africa, is a landlocked country with immense agricultural potential. Out of the country’s 75 million hectares of land, 58% or 42 million hectares is classified as medium-to-high potential for agricultural production. The 15% that is actually being utilized for agricultural purposes yields enough produce that Zambia is able to export some of its vast harvest such as maize, soybeans, coffee, groundnuts and rice to its neighbours. Zambia’s grain and milling sector may have grown
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in importance, attracting investments from both local and foreign investors, and contributing significantly to the country’s economic growth, but the country has other opportunities to grow its mantle as an agriculture powerhouse in the region. Agricultural value addition as a government strategy for economic growth extends beyond maize farms and includes other important Zambian produce including cashew nut, mangoes and tomatoes, among others.
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CASHEW NUT PROCESSING GROWS IN IMPORTANCE Cashew nut was first introduced in Zambia in the 1940 but decades of mismanagement of the sector left many farmers abandoning the crop for other lucrative alternatives. By 2015, production had plummeted to 50 tonnes per annum. This decline left the country’s 2 cashew processing companies namely Western Cashew Industries Limited and Barotse Cashew Company Limited - which have total estimated capacity to process 780 tonnes per year - to order raw cashew nuts from Tanzania for processing in order to sustain their businesses. The neglect of cashew nut was unfortunate because unlike maize which trades at about US$300 per tonne, cashew nut is a high value product selling at an average farm gate price of US$500 per tonne with the price of the finished processed product going as high as US$11,200, according to data from Statista. Given its high value, recent Zambian regimes have prioritized cashew production as part of economic diversification and as a poverty reduction strategy in Western Province. Cashew nut prioritization saw Zambia launch a US$55.4 million Cashew Infrastructure Development Project (CIDP) in conjunction with the African Development Bank (AfDB) to revive the sector. The 5-year project was targeting to add at least 6 million productive cashew trees, providing a new source of livelihood to almost 60,000 farmers in the country’s western region. To further stimulate growth in the sector, former President Edgar Lungu in June 2021 launched the cashew nut plantation initiative which is under the US$32.8 million Zambia Integrated Forest Landscape Project (ZIFLP) in Chasefu district in Eastern Province. Ministry officials at the time revealed that the World Bank funded project targeted to benefit about 15,000 farmers. For the years that it has been in operation, CIDP has made attempts to address the challenges holding back developments in the sector by supporting cashew value
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chain infrastructure such as feeder roads, irrigation facilities, bulking centres and agro-processing facilities. An AfDB report indicated by the end of its tenure in June 30, 2022, CIDP will raise Zambia’s cashew nut production by 48,000 tonnes and raise the sector’s contribution to foreign exchange by US$8 million. Although the project may not fully achieve its objectives, it has certainly transformed the cashew nut sector in Zambia’s Western region, providing a new source of livelihood to farmers. More women are now starting cashew-based enterprises, providing direct competition to the Barotse Cashew Company which had for a long-time enjoyed a monopoly status in the region.
THE 5-YEAR CASHEW INFRASTRUCTURE DEVELOPMENT PROJECT TARGETS TO ADD ATLEAST 6 MILLION PRODUCTIVE CASHEW TREES, PROVIDING A NEW SOURCE OF LIVELIHOOD TO ALMOST 60,000 FARMERS IN ZAMBIA'S WESTERN REGION. “The cashew value chain has so far created the processing industries where the cashew nuts are being processed into butter and biscuits. This also includes processing of cashew nut apple into juice and liquors such as cashew nut wines,” Zambia Agriculture Research Institute technical research assistant Bwalya Kaponda said in an interview with Zambia Daily Mail. With Zambia’s cashew nut expected to rise tenfold in the coming decades, the government is not slacking in its quest to find opportunities for value addition locally. Supply in the coming years will certainly outstrip local processing capacity which is slightly above 780 tonnes annually. To avert an oversupply crisis, the government is currently looking for private sector players to invest in a new US$5 million cashew nut processing facility in the country’s capital Lusaka. According to a project proposal by the Zambia Development Agency, the cashew nut processing plant will produce an average of 12,000 tonnes of cashew kernels per annum. “The private investors will be expected to meet the entire project costs of US$5 million,” ZDA said in the proposal. “GRZ, Zambia Development Agency (ZDA), Ministry of Trade Commerce and Industry (MCTI), Ministry of Agriculture and Livestock (MAL) and other Government Agencies will assist the private investors to establish the project, through various forms of interventions.” ZDA targets to sell the processed cashew nut products to the domestic market in Zambia as well as regional MARCH/APRIL2022 | FOOD BUSINESS AFRICA
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and international markets. Main targets on the regional market are Kenya, Mozambique and Tanzania, where the growth rates on cashew markets are forecast to be around 3% annually. In the international markets, the target is the European Union, India and United States of America. Europe is a particularly attractive destination as it is the largest importing region of cashew kernels in the world, accounting for around 35-40% of total global imports. Netherlandbased Center for promotion of Imports from developing countries (CBI) projects that in the next five years, the European market for cashew nuts is likely to increase with an annual growth rate of 3-5%. Investors in Zambia’s cashew nut sector thus have an opportunity to exploit this demand which is described as stable by the CBI, helping the Dutch customers to meet fluctuating production from their current import countries. TURNING MANGO DELICACY INTO A VIABLE COMMERCIAL VENTURE Zambia produces a fair share of fruits and the most produced is mango. In the months of October to January, the fruit is usually available in abundance across all the provinces of Zambia. Zambians, both in cities and rural areas, mostly enjoy the fruit in its raw unprocessed form with a very small portion processed into juice and other products such as jam. Lack of value addition of the country’s most abundant fruit means that farmers earn less from their produce. A 2019 study published in the Texila International Journal of Management revealed that Zambian farmers receive a net profit margin of 18.34% from their produce with the farm gate prices being 50% the price of the same fruit 60
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in the market. Even though Zambians love mangoes, the relatively limited capacity for value addition leads to post harvest losses of up to 40%, according to the study. Just like in cashew nuts, the government has been making deliberate efforts to attract investment into the sector to reduce post-harvest losses, boost farmer income and increase the sectors contribution to the country’s GDP. In July 2021, The Zambia Development Agency invited the private sector to establish a modern mango processing facility in Lusaka. According to ZDA’s project proposal, the mango processing plant will produce an average of 30,000 tonnes of mango pulp and 5,000 tonnes of dried mango per annum. Collection depots, with cold storage facilities will also be constructed in all provinces of Zambia to preserve the mangoes as they await transportation to the processing facility in Lusaka. Zambia targets to sell processed products to both the domestic market as well as regional and international markets. ZDA in the project proposal reveals that the country’s main targets on the regional market are Angola, Democratic Republic of Congo (DRC), and Tanzania. “On the international markets the target is the European Union, Middle East and United Arab Emirates,” the Agency revealed. Investment in mango value addition is timely as the global processed mango products market size is expected to reach US$25.55 billion by 2025, according to a report
A 2019 STUDY PUBLISHED IN THE TEXILA INTERNATIONAL JOURNAL FOUND THAT EVEN THOUGH ZAMBIANS LOVE MANGOES, THE LACK OF VALUE ADDITION LEADS TO POST HARVEST LOSSES OF UP TO 40%. by Grand View Research, Inc. The market is projected to register a CAGR of 6.4% during the forecast period primary driven by increasing demand for fruit-based food and beverages. ZDA projects that its proposed mango processing venture will start generating profits from the first year of operation, with net profit margins ranging from 10% in year one to 23% in year five. Additionally, ZDA notes that the project offers an attractive investment opportunity with an estimated Internal Rate of Return (IRR) of 35%, a Pay Back Period of 4 years, a Discounted Cash Flow (DCF) valuation of US$28.5 million (using a discount rate of 12%) and a Net FOODBUSINESSAFRICA.COM
Present Value (NPV) of US$5.9 million. Although new mango value addition projects like the one’s proposed by ZDA will find themselves in direct competition with existing small local Zambian companies as well as large regional and international processors of mango products, the Agency notes a strategy anchored on high-quality processed products should enable any serious investor to succeed in the market. TOMATO BECOMES PRIORITY TO CUT IMPORTS Zambia produces sufficient tomatoes to meet its domestic demand and even has a surplus for exports. The country has however for a long time relied on imports to meets need for processed tomato products such as tomato paste and sauce. In 2014, the country’s processed tomato import bill stood at US$9.27 million, a figure almost double the US$4.9m that was recorded in 2010. This was despite of tomatoes worth millions of dollars rotting away annually in markets across the country. Nearly 10 years on, several players in the industry have made investments into the sector to close the gap that has been existing in the market. In 2017, the New Apostolic Church Relief Organization launched a tomato processing plant in Chibombo, funded by NAK-KARITATIV, a faithbased organization based in Germany. The plant has a capacity of producing 1200kg tomato paste in a day. During its launch, the project had attracted the interest of 2,000 out of the 5100 farmers it was targeting. That same year, Italian tomato producer Pomorete partnered with Asili Processing Limited to explore the possibility of setting up of tomato farms and a factory in Zambia for the production of tomato concentrate. These new investments were coming to supplement value addition activities of three major firms Rivonia, Freshpikt and Sylva Foods that were already engaged in tomato processing. The following year, the National Union for Small-scale Farmers of Zambia came up with plans to set up cold room facilities to preserve crops. More recently in September 2021, local food processor COMACO was awarded a US$600,000 grant from the Enterprise Challenge Fund to finance a tomato production plant that will provide additional income to more than 20,000 farmers in Zambia. Recognizing tomato’s importance in boosting Zambia’s agro-processing profile, the government made it a priority sector to further stimulate investment. The ZDA last year floated a proposal for a tomato processing facility to be fully funded by the private sector. According to ZDA’s proposal, the processing plant will be located in Monze, Southern Province of Zambia and will have capacity to process 10,000 tonnes of tomato paste annually. The state agency further noted that the business will outsource tomatoes from all provinces in Zambia, which will need the construction of tomato collection depots for the collection of fresh tomatoes for processing. FOODBUSINESSAFRICA.COM
About 20% of tomato paste produced will be sold to the domestic market in Zambia whose demand level is estimated to be 5,000 tonnes per annum, with a 3% annual growth rate. This implies that the tomato project will cover about 40% of the local market, which is feasible given that there are very few tomato processors in Zambia. The remaining 80% will be sold in the regional and international markets. The demand level in the regional market for tomatoes is estimated to be 150,000 tonnes per annum with a growth rate of 2% annually, whilst the international market is estimated to be 3,233,883 tonnes, with a growth rate of around 2.1% annually according to TomatoNews.com. The agency estimates that the project will require a total investment of US$5 million and will take about 12 months to complete. Like other investment projects by ZDA, the project is anticipated to start generating profits from the first year of operation after being commissioned, with net profit margins ranging from 11% in year one to 20% in year five. GOVERNMENT LEADS AGRO-PROCESSING REVOLUTION The Zambia Development Authority (ZDA) and the Industrial Development Corporation have been at the forefront of the agricultural value addition campaign. Formed in 2006, ZDA has been working to attract private sector involvement in the country’s agro-processing subsector while the IDC has been leveraging state resources to set up agro-prosseing industries across the country. In 2021, IDC invested over US$15 million in expanding the country’s agro-processing capacity. US$8.8 million was MARCH/APRIL2022 | FOOD BUSINESS AFRICA
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invested in setting up a tropical fruit processing plant in Katete District, US$5.5m was injected into a new fruit company in Mwinilunga while US$1.1 million was used to revive a banana estate firm that went under, a few years after privatization. Zambia’s Ministry of Agriculture has also thrown its weight behind the agro-processing initiatives with its Enhanced Smallholder Agribusiness Promotion Programme (E-SAPP). The project with support from International Fund for Agricultural Development (IFAD) aims to increase the volume and value of agribusiness outputs sold by smallholder producers
in Zambia. The 7-year programme has been running since 2017 and hopes to increase incomes, food and nutrition security of rural households involved in market-oriented agriculture by the time its tenure elapses in 2024. DEVELOPMENT PARTNERS AVAIL FUNDING FOR SMES Small and medium sized enterprises are critical in Zambia’s agroprocessing revolution. To encourage greater participation in the sector, the government has partnered with foreign development partners such as the European Union and the United States Agency for International Development to avail funds for entrepreneurs seeking to invest in 62
agro-processing. The European Union has been one of the most active development partners in this subsector. In 2021 alone, it invested over US$48 million towards various programmes aimed at easing access to credit for agroprocessing SMEs. In April 2021, EU funded a project aimed at strengthening agri-business and aquaculture markets dubbed ENTERPRISE Zambia Challenge Fund. The 5-year project is being implemented by Self Help Africa and Imani Development. Later in October, the European Investment Bank disbursed a 7 year €15 million (US$17m) EIB loan to Zanaco, the country’s largest bank, in combination with the risk-sharing facility. According to the EIB, the funding will allow the bank to advance credit facilities of up to US$34 million to small holders and private companies involved in agriculture across Zambia. USAID, another key development partner, invested US$3.9m in 2021 to support small and medium sized agribusiness enterprises. That same year, the Swedish International Development Cooperation Agency (Sida) announced a US$4 million grant to support the growth of foundational, small and mediumsized food processing enterprises in Zambia. The funds to be managed by TechnoServe was channelled towards the implementation of the Food Enterprises for a Developed (FED) Zambia program, running from 2020 to 2023. A SECTOR ON THE RISE Agro-processing seems to have been the missing link in unlocking Zambia’s true agricultural potential. Ngolwe Sikazwe, Portfolio Manager of the EU funded Enterprise Zambia Challenge Fund notes that the lack of an established agro-processing industry demotivated farmers to produce more as there wasn’t a ready market and more often than not, they were stuck between accepting throw away prices for their produce or
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KEY NUMBER
US$
25.55B
ESTIMATED VALUE OF GLOBAL PROCESSED MANGO PRODUCTS BY 2025 throwing the produce away. A commitment by government and its development partners to supporting the agriculture sector through value addition is however bringing the much-needed change. Development partners are pumping in the much-needed capital for enterprises to venture into agroprocessing while at the same time providing entrepreneurs the muchneeded technical expertise required to successfully run businesses. The government on the other hand is creating programs such as the CIDP to stimulate growth in sectors which had for long been neglected, while new and existing companies are joining the new way, ramping up their investments in the sector. In August 2021, Zambia’s leading potato producer, Buya Bamba vertically expanded its operations with an investment of US$7 million in a new processing factory for production of frozen chips. A few months earlier, Chenguang Biotech Zambia Agri-Dev Limited announced that it was seeking to invest US$23 million to cultivate, harvest and process paprika, marigold and stevia. All these concerted efforts are testament of a rising agro-processing industry that may finally give Zambia the diversification away from copper that has remained elusive 58 years after independence. FBA
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Market Trends Natural sweeteners edge out synthetic alternatives in race towards zero sugar Food formulators find a sweet spot in natural sweeteners as journey to zero sugar gathers pace By Paul Ongeto
“Excessive consumption of alcohol is harmful to your health,” is a tagline that every alcoholic beverage advert must have. This part of the ad is so common that it has almost become a chorus we kind of expect from every alcoholic beverage advert. Tobacco is another heavily regulated product that also carries a similar warning. Interestingly, sugar – which equally has adverse health FOODBUSINESSAFRICA.COM
effects if consumed in excess - has for a long time stayed under the radar with little to no regulation when it comes to its use. Unfortunately for sugar, those sweet days are over as a growing body of research has linked excessive sugar consumption to a host of health concerns including obesity and diabetes. The negative health consequences associated with MARCH/APRIL2022 | FOOD BUSINESS AFRICA
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sounding off on sugar, most want to consume products that have around the same level of sweetness,” Kerry says. McKenna Mills, Senior Technical Manager at Cargill adds: “It's really important when reducing sugar, you replace it with products that will also replace the functionality that sugar brings to the table”.
sugar consumption has more individuals then ever before conscious of the amount of sugar in the food items they eat and drink. A 2021 survey by the International Food Information Council (IFIC) found that 72% of consumers were trying to limit or avoid sugar entirely. Governments have also stepped-up efforts to regulate the sector, introducing a raft of measures, including sugar taxes to try to curb its consumption. A warning on excessive sugar consumption may not be in the pipeline, but food companies are working round the clock to replace sugar with other alternatives that offer the same sweetness but without the calories. IT'S NOT EASY TO REDUCE SUGAR Finding the sweet spot in sugar reduction requires more than just replacing sugar with other sweeteners. “It's not easy to reduce sugar,” says McKenna Mills, Senior Technical Manager at Cargill. “Sugar doesn’t just add flavour to the table, it also brings functionality like adding mouthfeel.” When sugar is eliminated or reduced, the syrupy body for beverages or a more structured texture for items such as baked goods is lost. Studies also suggest that sweetness, when not accompanied by calories, might result in ambiguous psychobiological signals that confuses the body’s regulatory mechanisms, leading to a loss of control over appetite and overeating. Additionally, when sugar is removed from a product, the sweetness levels will drop and this may reveal other tastes, such as bitterness and off-notes. According to a report by Kerry, this may impact product acceptance as consumers would still want their product to taste just like it did when it had sugar. “Although consumers are 64
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FORMULATING WITH ARTIFICIAL SWEETENERS Artificial sweeteners such as aspartame, saccharin and sucralose, which are sweeter than sugar but low in calories were the first go-to ingredients when it came to sugar reduction. Unlike sugar, these sweeteners offer an insane amount of sweetness without the additional calories that sugar adds to foods. Aspartame is for instance 100 to 200 times sweeter than sugar while sucralose is reported to be 600 times sweeter. Some like alitame and neotame have sweetness levels that exceed that of sugar by over 2000 times. This level of sweetness implies that only a fraction of the sweetener could be used to replace sugar from beverages. Like earlier noted, replacing sugar is not as simple manufacturers quickly realise that although intensely sweet, these sweeteners have a bitter aftertaste when used on their own. To mask the bitter aftertaste that sweeteners can have on their own, manufacturers have resorted to developing blends of different sweeteners.
A 2021 SURVEY BY THE INTERNATIONAL FOOD INFORMATION COUNCIL FOUND THAT 72% OF CONSUMERS WERE TRYING TO LIMIT OR AVOID SUGAR ENTIRELY. It’s thus rare to find a diet soda or any other low calorie food product carrying only one artificial sweetener. For instance, Acesulfame-K which is around 200 times sweeter than sugar is usually blended with other sweeteners such as aspartame and sucralose to achieve a more acceptable taste. When first introduced to the market, artificial sweeteners were a success. They were the magic bullet required to ensure people avoid sugar but continue indulging in sweet treats such as soda, chewing gums, ice creams and other high-sugar products. Growing research on the negative effects that these products might have on human health has however cast a shadow on their continued use in future. Researchers from the Sorbonne Paris North University and French FOODBUSINESSAFRICA.COM
nutrition, recovery drinks, nutritional supplements among many other applications. “In the U.S., stevia and monk fruit have been primary growth drivers for the beverage market, with year-over-year volume growth of products containing these sweeteners at 12% and 26% respectively, per Nielsen,” says David Nichols, senior manager for category strategy and planning at Tate & Lyle. Technological advancements have allowed ingredient manufacturers to commercially produce some natural sweeteners which before were unfeasible to produce at scale. American biotechnology company Conagen recently unveiled two high-intensity sweeteners from thaumatin,
Network for Nutrition and Cancer found that participants who consumed the most artificial sweeteners had a 13% higher risk of developing cancer compared with those who didn't consume artificial sweeteners. The sweeteners aspartame and acesulfame-K were associated with the highest risk, according to the data, particularly with risk of breast cancer and obesity-related cancer. This study and many more like it have had an impression on consumers who are now reconsidering their options. According to a Mintel study, “consumers largely distrust artificial sweeteners, and 69% of consumers regard them as unhealthy.” Another 2021 IFIC study found that consumers look to the ingredients label and the Nutrition Facts panel as sources of information — more so than claims. The presence of artificial sweeteners on the ingredient label is thus more likely to dissuade a consumer from picking that product. In the United States, experts now recommend that products containing artificial sweeteners are not marketed to children or sold at schools, further damaging the reputation of products made with artificial sweeteners.
ITS REALLY IMPORTANT WHEN REDUCING SUGAR, YOU REPLACE IT WITH PRODUCTS THAT WILL ALSO REPLACE THE FUNCTIONALITY THAT SUGAR BRINGS TO THE TABLE. MCKENNA MILLS, SENIOR TECHNICAL MANAGER, CARGILL
which is a group of proteins found in the fruits of the tropical plant Thaumatococcus danielli. The products thaumatin I and thaumatin II have been evaluated as 100,000 times sweeter than sugar on a molar basis and 3,000 times sweeter on a weight basis. Taste solutions supplier Sweegen also recently launched brazzein, a high-intensity sweetener that is reportedly 500 to 2,000 times sweeter than regular sugar. Sweegen becomes the first food ingredient provider to make the sweetener commercially available under the Ultratia brand.
NATURAL SWEETENERS FIND FAVOUR AMONG CONSUMERS With artificial sweeteners carrying a “unhealthy” tag, the search for sugar substitutes of natural sources has led to the discovery of a number of substances that possess an intensely sweet taste or taste-modifying properties. Monk fruit and stevia are currently the leading natural sweeteners used in ready-to-drink (RTD) protein drinks, carbonated soft drinks, energy drinks, flavoured waters, water enhancers, hard seltzers, coffee drinks, sports FOODBUSINESSAFRICA.COM
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supplier, the new sweetener system provides multiple benefits, including flavor modification, faster dissolution and improved solubility and stability in formulations.
Stevia production also regained prominence this year when international food standards body Codex Alimentarius adopted the specifications for four different technologies for the production of steviol glycosides. Sweegen, whose bioconversion technology was among those approved, noted that the move by Codex will provide greater access to less common and better-tasting steviol glycosides at scale and a more sustainable supply. SEPARATING THE SWEET FROM THE BITTER Just like their artificial sisters, natural sweeteners also tend to impact a bitter taste or metallic flavor when used in food formulations. Consumers may desire to lower their calories, but at no point in history have they shown interest in giving up the taste they so much relish. Kerry, in its taste chart for 2022, highlighted taste as one of the key trends to watch. In the report, Kerry said, “taste remains at the core of consumption desire and people now want the best of both worlds—sugar66
free, lower carb, plant-based, vegan and diet-specific foods like keto — and they are not willing to compromise on taste any longer.” Ingredient manufacturers from Ingredion, to Kerry, ADM and Cargill have responded by developing sweetener blends that work synergistically to mask any undesirable taste traits that could potentially exist if a sweetener was used on its own. In December 2021, Ingredion launched an evolved flavor modifier PureCircle NSF-13 which has “exceptional sweetness quality across a wide range of applications, from beverages to dairy alternatives, thanks to its combination between Reb M and other steviol glycosides,” according Aymeric de Ganter, Ingredion’s flavors business lead. Another key benefit is the increased targeted flavor tonalities as well as the reduction of bitterness. In March 2022, Cargill also updated its stevia sweetener, combining it with a natural flavor to enhance its performance in food formulations. According to the food ingredients
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NOVEL SUGAR REDUCTION TECHNOLOGIES EMERGE Food formulators and ingredient suppliers are also moving the needle when it comes to sugar reduction. Israeli food technology company DouxMatox is among the leaders in this field. Its unique sugar reduction solution Incredo Sugar is a firstof-its-kind, sugar-based sugar reduction solution that helps food companies achieve up to 50% sugar reduction. With Incredo Sugar, companies don’t have to introduce a new sugar alternative, they just have to use a lesser amount of sugar. The solution has been used by a number of companies including Pangea for its better for you super bars and Blommer Chocolate Company to produce chocolate with much less sugar. In 2021, Tetra Pak and Sumol+Compal unveiled a fermentation-driven technology that reduces the sugar content in juice.
KEY NUMBER
US$
3.8B
ESTIMATED VALUE OF GLOBAL SWEETENER MARKET BY 2025
“We just use fermentation to convert virtually all the sugars in the juice to alcohol, much like what happens in wine-making,” said Paulo Marques, head of the biotechnology unit at Sumol+Compal. FOODBUSINESSAFRICA.COM
for soda (36% decrease for family-size compared to no change for individual-size). In addition to applying pressure to cost-conscious consumers, sugar taxes incentivize manufacturers to rethink recipes and create healthier soft drinks and beverages. For example, ahead of the introduction of the UK Soft Drink Industry Level (SDIL) sugar tax in April of 2018, manufacturers began reformulating products, shrinking the number of high- and mid-sugar soft drinks in their portfolio and increasing their low- and zero-sugar offerings. A study in BMC Medicine found that 6 of the top 10 brands affected by the SDIL reformulated more than half of the products in their portfolios between 2015 and end of 2018. As these products hit the market, the total volume sales of high- and mid-sugar soft drinks was cut in half, while volume sales of low- and zero-sugar drinks rose by 40%.
Another not so novel way is replacing sugar with other natural sweeteners such as honey or fruits. The practice that is popular in beverages and dairy products allows food companies to legally add a “no added sugar” claim to their food products. The no added sugar claim can however be technically misleading, as the product may lack sugar but still contain high amounts of calories and thus expose the consumer to the risk of obesity and other lifestyle diseases, which sugar is associated with. This practice is losing popularity as consumers become more informed. SUGAR TAXES ACCELERATE ADOPTION With obesity on the rise across the globe, governments have introduced sugar taxes to try to limit consumption of sugar-sweetened beverages. According to a report by Kerry, sugar taxes have gained traction at a remarkable pace in recent years, with around 50 countries and jurisdictions currently enforcing such measures and others requesting voluntary recipe changes. In 2021, Africa’s largest economy Nigeria, joined the sugar tax club with its US$0.024 tax per liter of sugarsweetened beverages to discourage excessive consumption of sugar in beverages. South Africa introduced its sugar tax in 2018 and research by health experts highlight that since the introduction of the tax, there was a 51% reduction in sugar, a 52% reduction in calories, and a 29% reduction in the volume of beverages purchased per person per day. In the United States, researchers from the University of Illinois Chicago found that a sugar tax introduced in Seattle created a 23% reduction in grams of sugar sold from taxed beverages, while declines were larger for family-size (29%) compared to individual-size (10%) beverages; particularly FOODBUSINESSAFRICA.COM
LOW SUGAR INDULGENCE TO BECOME THE NORM Low and zero sugar products have historically faced taste and texture challenges which made them unappealing to the majority of consumers. Advances in technology have however allowed food ingredient suppliers to develop superior sugar alternatives that deliver the sweetness without the calories. Natural sweeteners have particularly hit the sweet spot when it comes to health indulgence and are expected to be a key growth driver of the low and zero sugar products. According to Markets and Markets, the global natural
SUGAR TAXES HAVE GAINED TRACTION AT A REMARKABLE PACE IN RECENT YEARS, WITH AROUND 50 COUNTRIES AND JURISDICTIONS CURRENTLY ENFORCING SUCH MEASURES OR REQUESTING VOLUNTARY RECIPE CHANGES. sweetener market which was valued at US$2.8 billion in 2020 is expected to grow at a compound annual growth rate (CAGR) of 6.1% to reach US$3.8 billion in 2025. Sugar taxes have also proved to be a critical driver of growth in the sector and their continued adoption is expected to spur further growth in future. Indeed, sugar may not carry a mandatory “harmful to your health tag” anytime soon, but it is certainly going to be used in lesser and lesser amounts by food and beverage companies. FBA MARCH/APRIL2022 | FOOD BUSINESS AFRICA
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Industry REPORT
Ethiopia’s dairy industry: Tale of enormous opportunities masked by unique challenges
W
By Catherine Wanjiku
ith second largest population of 110 million people, one of the fastest growing economies and the largest livestock population - 70 million cattle, 40 million sheep, 51 million goats and 8 million camels - in Africa, it is paradoxical that Ethiopia’s dairy sector is still at its infancy stage. A stroll through some of Ethiopia’s towns, one can quickly take note of traders hawking milk along the roads.
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This is the norm as day in day out milk and money exchange hands until the stock runs out, waiting for the next day of trade. From this practice it is evident that Ethiopia’s dairy industry is predominantly traditional, with 85% of the milk traded through the informal channels, while only 7% is sold through formal market systems, according to a recent report by TRAIDE Ethiopia (2021) on Investment Opportunities in the Ethiopian Dairy Sector. Just like any MARCH/APRIL2022 | FOOD BUSINESS AFRICA
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INDUSTRY REPORT: DAIRY INDUSTRY IN ETHIOPIA
SMALL SCALE DAIRY FARMING STILL CONTRIBUTES A LARGE PERCENTAGE OF ETHIOPIA'S DAIRY OUTPUT
other sector in the county’s agriculture industry, the dairy sector is also dominated by smallholders. These dynamics paint a picture of a sector that is still at its development stage, needless to say that it is shadowed by significant gaps. Dauting as it seems, both the public and private sector have identified the challenges facing the sector at each and every stage of the value chain, and are dedicated to addressing them and grow it into a multimillion-dollar sector. This is key, as despite the challenges facing the sector, it is a significant contributor to the country’s GDP. According to the report, the livestock sector is responsible for a considerable portion of the national and agricultural GDP, 12% – 16% and 35%, respectively, and accounts for about 30% of total agricultural employment. MILK PRODUCTION LEVEL A CRY FOR HELP The Eastern African country produces about 4.69 billion litres of milk annually, with 90% coming from cattle, even though camels, goats, and to a lesser extent sheep, are used as milk animals as well. The annual milk yield from the cows is typically 300/275 litres per head. This is significantly lower as compared to productivity in neighbouring countries such as Kenya with a yield of 2,021 litres per annum. This is no comparison to production levels from one of the world’s leading dairy producers – The Netherlands - as its output skyrockets to 8,800 litres per annum. Looking at the compound annual growth rate (CAGR) calculated over a decade, the cattle population in Ethiopia has grown by 3.8%, while milk production has lagged behind at 3.4%. The low milk productivity is attributed to limited 70
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adoption of breeds with high milk production capacity around 97.4% of the total cattle population in the country are indigenous breeds; the remainder are hybrid (2.29%) and exotic breeds (0.31%). This is coupled by fodder and feed shortage, high prevalence of diseases, limited use of modern production methods, among others. To avert the situation, the Ethiopian government through its 10-year growth plan, launched by the Ministry of Agriculture in 2020, seeks to increase the proportion
ETHIOPIA PRODUCES ABOUT 4.69 BILLION LITRES OF MILK ANNUALLY, WITH 90% COMING FROM CATTLE, AND THE REMAINDER PROVIDED CAMELS, GOATS, AND TO A LESSER EXTENT SHEEP. of improved breeds in the country from to 17%. Also, the government seeks to reduce the quantity of smallholders’ milk cows from 11.5 million to 9 million, and increase the use and adoption of more commercialised production systems. This will be achieved through boosting access to breeding services such as Artificial Insemination (AI). FOODBUSINESSAFRICA.COM
Provision of AI services, requires the right equipment and infrastructure. Currently, Ethiopia has 14 liquid nitrogen plants for the storage and transportation of semen and genetic material, calling for more investment in these kinds of facilities. As of 2020 there were 551 private, mediumscale, specialised dairy cattle breeding centres in the country, and the government plans to attract a further 500 in the next decade. Despite the government pushing for adoption of improved breeds, many local farmers are reported to be resistant to the idea, as other inputs such as feed, vaccines and medication are not readily available to complement the investment. In rural Ethiopia, livestock are largely reared in an extensive rangebased system that depends on the availability of pasture and water. This production system is constantly challenged by climate variability, grassland degradation, overgrazing, inadequate supply of highly productive fodder and water stress. To supplement the unreliable supply of pasture, there are eight fodder producers in the country and over 75 animal feed (pre-mix and formulated) importers, producers
and distributors, most of whom are located in the capital, Addis Ababa. The production capacity of these feed processors is not enough to meet local demand. The Ethiopian Meat and Dairy Industry Development Institute estimates a supply gap of 190,000 metric tonnes of concentrate mix per year attributed to the increase in price of the two main ingredients, soybean and maize, as well as a shortage in foreign currency to import premixes. The MoA’s 10-year plan has spelt out an ambitious plan to support investors interested in investing in the fodder and feed supply chain. To entice private investors, land and other facilities will be made available by the government for investment that address the prevailing shortage and low productivity of the livestock sector. Compounding the sector’s challenges is the lack of adequate veterinary medicines and providers of health services in the country, while animal diagnostic and lab equipment, including necessary reagents, are barely available and accessible. According to the TRAIDE Ethiopia report, veterinary services are mostly provided by the MoA and its bureaus,
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70 MILLION ESTIMATED NUMBER OF CATTLE IN ETHIOPIA with only a limited number of private veterinarians and assistants. There is only one private veterinary drug producer, East African Pharmaceuticals Plc, and only one livestock vaccine producer, National Veterinary Institute (NVI)). The capacity of the two organisations is very low when looking at their product quality, quantity and diversity. However, recently NVI cut the ribbon to its newly built 100-million Birr (US$2.3m) veterinary drug manufacturing plant, with a production capacity of 91.5 million veterinary tablets annually. The plant will enhance livestock productivity and accelerate the sector’s growth by availing cheaper and readily accessible remedies for the herds. Aside from the two local providers, there is one international company, EVA Tant which supplies locally registered vaccines and drugs, and provides technical support. Zoetis (USA) and MSD Animal Health (USA) have recently started providing animal health products and services for cattle, as well. Tackling these and many other challenges facing the sector at the primary level will enable the government to realize its set target of increasing milk production from 4.69 billion litres to 11.8 billion litres by 2030, with 10.4 billion litres from cows exclusively. LOCAL PROCESSORS RALLY INVESTMENT Offsetting the tons of challenges facing the sector in the production
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INDUSTRY REPORT: DAIRY INDUSTRY IN ETHIOPIA
level is just the first step to redeeming the growing sector. As earlier mentioned, the market system is majorly informal where milk may pass from producers directly to consumers or through a few market agents. On the flip side, the formal supply chain, which encompasses players who are formally registered/licensed such as cooperative unions, processors and retailers, accounts for 2.5% to 7.5% of the total national dairy market. Despite the latter offering direct link to market, quality and quantity control systems, and supportive services, informal channels are more popular as most of the formal players are located around Addis Ababa and other regional urban centres, and with Ethiopia’s poor infrastructure, majority of milk produced in remote areas does not make it to the formal market system. Due to these challenges, most processors in the country, who are key players along the dairy value chain as they add value to raw milk to avail products with superior quality, are reported to operate at only 28% of their maximum production capacity. They process a mere 2.6% of the annual milk production of 4.69 billion litres. Other
CAMELS ARE A MAJOR SOUCE OF MILK AND DAIRY PRODUCTS IN SOME OF ETHIOPIA'S RURAL REGIONS.
than shortage in supply, they battle with poor quality of the supplied milk caused by poor handling, absence of cooling facilities and unstable power supply. However, despite of this, the volume of processed milk is reported to have more than doubled since 2010 from 150,000 litres to 350,000 litres, attributed to the rise in number of processors from 18 to 40, with a total production capacity of 1.2 million litres per day. Some of the notable investments that have recently 72
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AS OF 2020, THERE WERE 551 PRIVATE, MEDIUM SIZED, SPECIALIZED DAIRY CATTLE BREEDING CENTERS IN THE COUNTRY AND THE GOVERNMENT PLANS TO ATTRACT A FURTHER 500 IN THE NEXT DECADE. been undertaken in the industry include Dutch dairy cooperative FrieslandCampina’s investment in Holland Dairy in 2018 alongside Veris Investments, introducing its world class processing expertise in the Ethiopian market. In 2019, Tiret Corporate, a private equity firm, injected US$1.65 million in TZA Dairy & Processing Plc, facilitating establishment of a new plant with a processing capacity of 20,000 litres of pasteurised milk per day and a designated dairy cattle rearing farm. The following year, MB Plc, one of the leading dairy processors in the country trading under the name Family Milk undertook installation of an automatic UHT milk processing plant in Addis Ababa. The new plant, with a processing capacity of 40,000 litres per day enables the dairy processor to produce long-life milk with up to six months shelf life. Further boosting the country’s processing capacity, Lame Dairy, a subsidiary of Midroc Ethiopia Technology Group opened a new dairy facility in 2021, constructed at a cost of US$14.5m. The new factory more than doubles the dairy processor’s capacity from 70,000 litres of milk a day to 160,000 litres and produces the long-life Shola Milk brand that can stay fresh for three weeks under refrigeration. The new bottled product has enabled the dairy to distribute its products to far-off and remote areas, as well as reduce wastage. Meanwhile, Bobo Agro Processing and JoJo Milk have recently started to produce flavoured milk, which has become very popular among children. Ethiopian milk processors have further diversified their operations and ventured into camel milk production. Mid2021, Khelif Milk Processing Industry (KMPI), announced an investment of US$1.6m in the establishment of a camel processing plant. The facility, which is set to soon commence operations, has a processing capacity of 16,000 litres a day but the company will begin its production with 10,000 litres. KMPI is not limited to camel milk processing, as they plan to bottle pasteurized cow milk and yoghurt, and process cheese and butter. Other than driving economic development in the country FOODBUSINESSAFRICA.COM
through their investments, processors ensure regular availability of a wide range of dairy products in the market. For instance, Holland Dairy is currently constructing a new cooler warehouse in Addis Ababa to be finalized by the second quarter. This will heavily minimize its trucks’ commuting for replenishment, enabling them to do more drops on a daily basis and instantly double its distribution capacity. SECTOR PURSUES ALTERNATIVE MARKETS Despite the processors enticing consumers with exciting new products at the reach of their hands, per capita consumption of milk in the country, including unprocessed dairy is only 19 litres per year. This is very low compared to neighbouring countries such as Kenya with 115 litres and Uganda standing at 65 litres. The recommended per capita milk consumption according to the World Health Organization is 200 liters/year. This low consumption pattern can partly be ascribed to the religious fasting practices of the country’s Ethiopian Orthodox Church, who constitute 43% of the total population. A significant proportion of Ethiopian Orthodox Christians do not consume animal products (dairy, meat and eggs) for almost 200 days per year. Dairy consumption is also impeded by the high cost, insufficient supply, and limited promotion of nutritious diets. Projections do indicate significant growth opportunities associated with the growth in per capita income and change in consumer behaviour, with average per capita consumption expected to grow to 27.9 litres per annum in the next ten years. It is important to note that currently demand for dairy products is currently met mainly through domestic FOODBUSINESSAFRICA.COM
production and supplemented by imports of processed dairy products as the local processors continue beefing up their capacity. Between 2015 and 2019, dairy imports averaged around US$8.28 million per year. Milk and cream including powdered milk and UHT made up about 70% of dairy import volume. A distant second was whey and modified whey (16%) and the third largest import segment was cheese. All these products came mainly from European counties such as Netherlands, Spain, France and Germany, New Zealand and Switzerland; while cheese was imported from Egypt, France and the Netherlands. Other than being reliant on the local market, the sector is looking into tapping the lucrative export market. Somalia, Kenya, Sudan, Djibouti, Eritrea and South Sudan import on average US$382 million worth of powdered milk per annum from countries such as India, the Netherlands and New Zealand. Leveraging on the present trade ties with the neighbouring countries, Ethiopia can export the products at a competitive price range, with potential earning of foreign currency. This is still an untapped segment, as formal exports of dairy products from Ethiopia are insignificant. The average annual export value between 2014 and 2018 was US$150,000, almost all of which was exported to Somalia and Djibouti. With over 114 million people, Ethiopia is the second most populous nation in Africa. The country has experienced
VOLUME OF PROCESSED MILK IN ETHIOPIA HAS DOUBLED SINCE 2010 FROM 150,000 LITRES TO 350,000 LITRES THANKS TO THE RISE IN NUMBER OF PROCESSORS FROM 18 TO 40 AND AN EXPANSION IN PROCESSING CAPACITY TO 1.2 MILLION LITRES PER DAY. double-digit economic growth over the past decade, and is one of the fastest growing economies in the region. Despite the harmful impacts of COVID-19, the country still had an impressive GDP growth per annum averaging 9.4% between 2010 and 2020. This growth has led to increased household spending as the Government of Ethiopia (GoE) strives to reach lower-middle-income status by 2025. The fast growth of Ethiopia will lead to an increased demand for consumer goods, including dairy products and thus the sector is set to bloom. FBA MARCH/APRIL2022 | FOOD BUSINESS AFRICA
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Moderate alcohol consumption does not benefit heart health, but 2 servings of avocado does
O By Paul Ongeto
bservational research has suggested that light alcohol consumption may provide heart-related health benefits, but in a large study published in JAMA Network Open, alcohol intake at all levels was linked with higher risks of cardiovascular disease. The findings, which are published by a team led by researchers at Massachusetts General Hospital (MGH) and the Broad Institute of MIT and Harvard, suggest that the supposed benefits of alcohol consumption may actually be attributed to other lifestyle factors that are common among light to moderate drinkers. The study included 371,463 adults—with an average
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age of 57 years and an average alcohol consumption of 9.2 drinks per week—who were participants in the UK Biobank, a large-scale biomedical database and research resource containing in-depth genetic and health information. Consistent with earlier studies, investigators found that light to moderate drinkers had the lowest heart disease risk, followed by people who abstained from drinking. People who drank heavily had the highest risk. However, the team also found that light to moderate drinkers tended to have healthier lifestyles than abstainers—such as more physical activity and vegetable intake, and less smoking. Taking just a few lifestyle factors into account significantly lowered any benefit associated with alcohol consumption. FOODBUSINESSAFRICA.COM
ROLE OF GENETICS IN ALCOHOL CONSUMPTION The study also applied the latest techniques in a method called Mendelian randomization, which uses genetic variants to determine whether an observed link between an exposure and an outcome is consistent with a causal effect—in this case, whether light alcohol consumption causes a person to be protected against cardiovascular disease. “Newer and more advanced techniques in ‘non-linear Mendelian randomization’ now permit the use of human genetic data to evaluate the direction and magnitude of disease risk associated with different levels of an exposure,” says senior author Krishna G. Aragam, MD, MS, a cardiologist at MGH and an associate scientist at the Broad Institute. “We therefore leveraged these new techniques and expansive genetic and phenotypic data from biobank populations to better understand the association between habitual alcohol intake and cardiovascular disease.” Results revealed that individuals with genetic variants that predicted higher alcohol consumption were indeed more likely to consume greater amounts of alcohol, and more likely to have hypertension and coronary artery disease. The analyses also revealed substantial differences in cardiovascular risk across the spectrum of alcohol consumption among both men and women, with minimal increases in risk when going from zero to seven drinks per week, much higher risk increases when progressing from seven to 14 drinks per week, and especially high risk when consuming 21 or more drinks per week. Notably, FOODBUSINESSAFRICA.COM
the findings suggest a rise in cardiovascular risk even at levels deemed “low risk” by national guidelines from the U.S. Department of Agriculture (i.e. below two drinks per day for men and one drink per day for women). ALCOHOL INTAKE NOT RECOMMENDED The discovery that the relationship between alcohol intake and cardiovascular risk is not a linear one but rather an
INVESTIGATORS FOUND THAT LIGHT TO MODERATE DRINKERS HAD THE LOWEST HEART DISEASE RISK, FOLLOWED BY PEOPLE WHO ABSTAINED FROM DRINKING. PEOPLE WHO DRANK HEAVILY HAD THE HIGHEST RISK. exponential one was supported by an additional analysis of data on 30,716 participants in the Mass General Brigham Biobank. Therefore, while cutting back on consumption can benefit even people who drink one alcoholic beverage per day, the health gains of cutting back may be more substantial – and, perhaps, more clinically meaningful – in those who consume more. MARCH/APRIL2022 | FOOD BUSINESS AFRICA
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THE FINDINGS AFFIRM THAT ALCOHOL INTAKE SHOULD NOT BE RECOMMENDED TO IMPROVE CARDIOVASCULAR HEALTH, RATHER, REDUCING ALCOHOL INTAKE WILL LIKELY REDUCE CARDIOVASCULAR RISK. KRISHNA G, ARAGAM, MD, MS, CARGIOLOGIST AT MASSACHUSETTS GENERAL HOSPITAL.
“The findings affirm that alcohol intake should not be recommended to improve cardiovascular health; rather, that reducing alcohol intake will likely reduce cardiovascular risk in all individuals, albeit to different extents based on one’s current level of consumption,” says Aragam. 2 SERVINGS OF AVOCADO PER WEEK MAY CUT HEART DISEASE RISK BY 16% With alcohol consumption directly linked to increased risk of heart disease, alcohol lovers might want to drop the bottle for a few servings of avocado which, according to a new study, improves heart health if consumed long-term. The study written by Lorena S Pacheco, a postdoctoral research fellow in the department of nutrition at Harvard T H Chan School of Public Health, looked at the relationship between avocado intake and long-term cardiovascular disease (CVD) in an effort to fill the knowledge gap on the subject. Study authors noted that most previous studies on avocado consumption have focused on cardiovascular risk factor. To fill this knowledge gap, the researchers investigated the link between avocado consumption and cardiovascular events. They found that higher consumption of avocados was linked to a lower risk of CVD and coronary heart disease (CHD). The study, Avocado Consumption and Risk of Cardiovascular Disease in US Adults, involved 68,786 women from the Nurse’s Health Study (NHS) and 41,701 men from the Health Professionals Follow-up Study (1986-2013) who were established to be “free of cancer, coronary heart disease, and stroke at baseline”. The group of men and women were assessed for their individual diets “using validated food frequency questionnaires”. The assessments were undertaken every four years and over a period spanning 30 years. The study found that after the relevant considerations were made for lifestyle and dietary factors, those men and 76
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women who consumed two or more servings of avocado each week, as opposed to non-consumers, were associated with a 16% lower risk of developing CVD and a 21% lower risk of developing coronary heart disease. Furthermore, researchers also found that those participants who swapped out half a serving of margarine, butter, egg, yoghurt, cheese or processed meat for half a serve of avocado were also at a 16 to 22 per cent lower risk of developing CVD. A NUTRIENT DENSE FRUIT When asked to explain what might account for the positive effects of avocado on CVD risk Pacheco said: “Avocados are a nutrient-rich food item with favorable food compounds including monounsaturated and polyunsaturated fats (healthy fats), vitamins, minerals, soluble fiber, vegetable proteins, phytosterols, and polyphenols. There are potential biological mechanisms by which avocados offer cardioprotective benefits.” She further noted that Avocadoes contain plant sterols that could have favorable effects on lipid profiles. “Also, the soluble fiber intake in avocados can also lead to a better lipid profile, meaning lower ‘bad cholesterol’ levels,” she explained. The authors noted some limitations to their findings. As their study was observational, they could not establish causation. The authors also noted that their study population was primarily non-Hispanic white nurses and health professionals, so their results may not be generalized to wider demographics. FBA
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Evolving food flavour appetite inspires unique combinations
T
By Catherine Wanjiku
here are many reasons why we consume food, with the obvious and most important one being to obtain nutrition. Consumers also indulge in their favourite foods and beverages to derive pleasure and enjoyment, presented in the form of exciting tastes and pleasing aromas. This is courtesy to a special component, the flavour, which amplifies and modulates the sensory experience associated with specific qualities of a product. Flavour specificity is caused by receptors in the mouth and nose, detecting chemicals found within the consumed item. These receptors respond by producing signals that are interpreted by the brain as sensations of taste and aroma, characterising a particular food. For example, a green apple tastes the way it does because of the unique combination of chemicals found naturally within it and are perceived by the mouth, nose and brain as the distinct blend of sweet and sour tastes and volatile aromas. Identifying
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these chemical profiles allows food producers to either naturally extract the compounds or artificially synthesise, making it possible for the production of candy, soda and other products with green apple flavour. Flavours are very complex, with dozens or sometimes hundreds of chemicals interacting to create each food and beverage’s unique taste profile. Tea, for example, has 47 separate chemicals which make up its flavour, while the taste of coffee is made up of almost 100. However, some flavours have a dominant chemical component which, even on its own, imparts its distinct taste to any food it’s added to. Increasing research and development activities by food companies to develop a broad variety of unique flavours as they diversify their offerings and expand their product lines, is a key factor contributing to growth of food flavour market. Just imagine a beef flavoured beverage by one of your favourite brands, sounds interesting but not very enticing. These calls for collaboration between food MARCH/APRIL2022 | FOOD BUSINESS AFRICA
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DURING THIS TIME WHEN LIVES ARE DISRUPTED, CONSUMERS ARE REACHING FOR FOOD AND FLAVORS THAT PROVIDE EMOTIONAL COMFORT, MAKE THEM FEEL PAMPERED AND REMIND THEM OF CHILDHOOD. NORMUNDS STAŅĒVIČS, CEO- FOOD UNION GROUP
processors and flavorists to prepare flavour additives that meet the evolving consumers taste and preference. IN TUNE WITH HEALTH & WELLNESS The pandemic has changed many people’s values and accelerated a trend already apparent for several years: a focus on health and wellness. This has expedited demand for flavours that represent a healthier position of a product. Fruity flavours appear to be particularly aligned with this trend as, Innova Insights highlights that one in three consumers globally say that they would choose orchard flavours when wanting to boost their immunity. In particular, citrus flavours piggyback on this interest with classics like orange, grapefruit and lemon prominently featuring in sparkling drinks, immunity boosting shots and other beverages. They are also joined by other trending options: lime, yuzu, tangerine, kumquat, clementine and pomelo. The link between sour flavours and immunity boosting has influenced the use of sour cherry, which is the most common sour-flavoured ingredient alongside citrus fruits. According to Mintel's New Products Database, food and beverage launches that had both a citrus flavor and an immune health claim jumped 21% from 2018 to 2021. Some of the recently launched products with citrus flavour include Chivita Active Zest by Nigeria-based Chi Limited, featuring a mix of 5 citrus fruits. Meanwhile, Beam Suntory expanded its Effen vodka portfolio with launch of EFFEN Yuzu Citrus. The popularity of citrus has also driven ingredient development, with Kerry in 2020 rolling out a line of clean-label citrus extracts to include lime, lemon, orange and tangerine. The new extracts are water soluble and colourless, ideal for sparkling and still flavoured waters, ready-to-drink beverages and alcoholic options such as hard seltzers and mocktails. Other ingredient companies such as International Flavors & Fragrances (IFF), Symrise 78
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and Bontoux also offer citrus extracts. The health halo surrounding citrus flavour has also given way to exploration of herbs, spices, and roots with an earthy character that are also deemed to have immunity boosting and other health benefits. They are increasingly finding their way into drink bottles with 74% of global launches of shots in the past three years containing spicy flavours, with ginger and turmeric being the most common. For instants last year, Kenya-based Tropikal Brands Afrika, launched an immune-boosting energy drink with ginger dubbed Super-C. The pursuit of healthier lifestyles is also driving demand for flavours targeting more general wellness, both mental and physical. Botanical flavours are increasingly popular for relaxation, stress reduction and sleep enhancement, featuring ingredients such as lavender, CBD/cannabis and turmeric, among others. There have been some notable new offerings in this segment, including Karma CBD Water, which is being distributed by alcohol giant Constellation Brands. The line includes naturally sweetened flavours such as Blueberry Yuzu, Blood Orange Papaya and Lavender Orange, which could have as much play in a non-alcoholic gin as CBD-infused enhanced water. The use of CBD has also crossed over to the hot beverage segment with Socati Corp offering CBD Coffee Brightener and CBD Coffee Sweetener variants. Floral flavours are also appearing in more unexpected formats including coffee blends (e.g. lavender & coffee, rose & coffee) as a way for brands and consumers to elevate their daily routines. It is safe to say established flavours perceived to be dull are being reinvented, often
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in much more complex and sophisticated combinations. According to the Innova Flavour Survey 2021, one in three consumers globally agreed that interesting/exotic combinations influenced their flavour choices in food and beverages. Innovations can feature in areas such as cross-category mashups, hybrids within beverages and sweet and savoury combinations. Hélène Moeller, director of global product management at ADM reveals that consumers are hungry for new flavours and combinations that will delight their taste buds, “Botanical and fruit blends are already popular in brewed teas, hard seltzers, mixed drinks and mocktails. We see infusions such as strawberry hibiscus, lemon elderflower and peach basil.” In Africa, Gold Crown Beverages, offers a wide range of special blend of fine teas under its Kericho Gold brand, featuring flavours such a baobab ginger and hibiscus, purple tea and lemon, camomile flower, among other aromatic combinations. POWERED BY NOSTALGIA People are known to seek comfort in the familiar including food. The 2020 Innova consumer survey highlights that one in two consumers globally say that they put more trust into a new brand if it collaborates with one that they already know. Food processors have leveraged on this to drive sales with launch of products featuring nostalgic flavours like cola, bubble gum, chocolate fudge, marshmallow, caramel, apple pie, candy floss, and generally flavours reminiscent of childhood days. This trend has manifested in a number of dairy, baked goods and drinks categories. Ample Hills Creamery has an oatmeal cookie-based ice cream as well as flavours that incorporate marshmallow, cereal, pretzels and chips. Taking consumer’s momentarily down memory lane, Jeni’s has an ice-cream line of the classic peanut butter and jelly sandwich, with roasted peanut butter and fluffernutter flavour. “During this time when lives are disrupted, consumers are reaching for food and flavours that provide emotional comfort, make them feel pampered and remind them of childhood,” Normunds Staņēvičs, CEO of Food Union Group said in an interview with Dairy Reporter. However, the trend was on going prior to the pandemic period, as Froneri-owned ice cream brand Kelly’s of Cornwall launched a new sticky gingerbread flavour ice cream in the UK in 2018 ahead of Christmas, bringing in the festive mood. TWIST OF TRADITIONS Innova Market Insights’ latest report on global flavour trends in the food and beverage industry highlights how it is no longer just about tantalizing the taste buds with a range of adventurous, innovative and reimagined flavours that take one back to the good old days, but also how FOODBUSINESSAFRICA.COM
flavour use can complement and develop the storytelling behind products and brands. Storytelling strategies include a focus on authentic tastes and recipes, as well as uniqueness through ingredient provenance. This is evidenced by the fact that noodles are of Japanese origin but have become prominent among Nigerian consumers, courtesy of the adoption of widely loved and familiar flavours by the citizens. Golden Penny, the iconic brand of Flour Mills of Nigeria, recently introduced Goat Meat Pepper Soup flavoured noodles. The new offering joined the company’s stable of authentic flavours which already featured Golden Penny Jollof Noodles with a unique blend of spices, mimicking the taste and aroma of the legendary one-pot dish that’s ubiquitous in Nigeria and the rest of the West African region. The rise of hyperlocal African flavours and ingredients pushed Germany-based food flavour manufacturer Symrise AG to enter into a strategic partnership late last year with Freddy Hirsch Nigeria, a fast-growing African manufacturer of extracts for spices, ingredients, and flavours. Some of the products that the two companies plan to work on include ingredients for general seasoning, bouillon meat, snacks, and instant noodles. Further driving growth in this segment, Freddy Hirsch Nigeria, recently unveiled a range of new, authentic smoky and grill seasonings. The launch is in response to rising consumer preference for local smoke and grills food profiles and demand for enhanced meat, soups, seafood, and snack flavours. The continent has a pervasive meat culture, with barbequed or grilled meat cultures, whether Braai/Shisa Nyama in South Africa, Suya/Chinginga in West Africa, MARCH/APRIL2022 | FOOD BUSINESS AFRICA
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Mushkaki/Nyama Choma in East Africa, and the roasted and grilled meat culture is a pervasive one across the continent. Increasingly, these grilled spices have found their way into other applications such as Nigeria’s suya spices – a blend of ginger, roasted peanuts, and hot chilli pepper – a popular seasoning. Symrise’s and Freddy’s recent investment in the African food flavour market is timely, as it is forecasted to witness a CAGR of 5.12% during 2020–2025. PLANT BASED FOODS FLOURISH As consumer’s taste for authentic flavours matures, consumption of meat-free products is rising at an unprecedented rate. But providing authentic taste, scent and texture in plant-based alternatives continues to pose a challenge for food and beverage producers. It's a tall order but a necessity in order for the segment to not only survive but thrive. With plant proteins always being culprits of generating unwanted bitter 80
or beany off-notes that makes them less appealing for consumers, experts from Bell Flavors & Fragrances, set out to identify the potential off-tastes of various protein sources, including soy, wheat, pea, rice, oat, almond and coconut. The team of flavorists and sensory experts further investigated specific flavors that help achieve rounded taste characteristics, such as full-bodied umami, meaty notes or creamy profiles. This enabled them to develop a new range of functional food flavours under the Plant Future portfolio targeting plant-based dairy, meat and fish alternatives. “We aim to provide functional flavour solutions based on the respective off-tastes of the various plant protein sources. In the case of oat drinks, for example, our masking flavor highlights the creaminess, the milky taste and adds a slight sweetness,” noted Agneta Hoffmann, marketing manager of flavors at Bell. Targeting the growing market for plant-based high protein and sports nutrition products, Bell is also focusing on delivering authentic and natural masking profiles for high protein powder shakes and high protein bars. Another player driving innovation in this segment is Givaudan with its new, patent-pending technology PrimeLock+. Designed specifically for plant-based meat substitutes, PrimeLock+ is an integrated technology that delivers flavour and stability while reducing fat by up to 75%. The technology protects, encapsulates and locks in the flavour and fat, delivering an authentic and delicious food experience that mimics real meat. FOOD FLAVOUR MAKERS CONSOLIDATE BUSINESSES Looking ahead, flavour innovation will remain an essential part of food and drink new product development and key themes will include the diversification of authentic flavours, further exploitation of the wider plant
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world, ‘permissible indulgence’ in the health and wellness arena and ongoing hybridization. This is set to drive growth of the multi-billion-dollar sector which according to Fortune Business Insights, is projected to grow from US$14.66 billion in 2021 to US$ 20.12 billion by 2028, exhibiting a CAGR of 4.64% during the forecast period. However, the food flavour market is dominated by few players who are increasingly merging with industry peers or snapping up smaller entities to consolidate their leadership position. One of the on trend deals to be recently announced was the merger of IFF and DuPont’s Nutrition & Biosciences (“N&B”) business in 2021, creating a new global ingredients and solutions leader. Other mergers that have made headlines in recent past include Givaudan’s acquisition of Ungerer, Iberchem Group’s purchase of Flavor Inn Corporation in Malaysia,
KEY NUMBER
US$
20.12B
PROJECTED VALUE OF GLOBAL FOOD FLAVOURS IN 2028 BASF’s acquisition of Isobionics, DSM taking full ownership of Amyris’ flavour and fragrance business and Firmenich snapping up Natural Flavors and Flavourome, among others. In Africa, Kerry Ingredients acquired Rwanda based food flavours maker Afribon late last year to expand its footprint in the region. Prior to that, ADM, had fully acquired South Africa based flavour distribution company Comhan. FBA
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