Food Business Africa May/June 2022

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A F R I C A ’ S

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F O O D ,

B E V E R A G E

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M I L L I N G

I N D U S T R Y

M A G A Z I N E

INGREDIENTS: FOOD COLOURS COUNTRY FOCUS: GHANA

COMPANY FEATURE

MOGALE MEAT CO. Mogale meat plates Africa’s first cultivated game-meat WWW.FOODBUSINESSAFRICA.COM

LACTOSE FREE DAIRY COVID-19 IMPACT ON BEVERAGES INNOVATION

SOFT BEVERAGES IN UGANDA YEAR 9 | ISSUE NO. 52 MAY/JUNE 2022


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EDITORIAL

Without progress in food safety, the dream of a food secure Africa will never be realized

A

frican countries at the just concluded 32nd Session of the FAO Regional Conference for Africa have committed to raise their ambitions and accelerate their actions towards achieving the Sustainable Development Goals, including ending poverty and hunger. Achieving this lofty and well-meaning goals will however be impossible without substantial progress in food safety. Africa, currently, has the world’s highest per capita incidences of foodborne illness with 91 million cases of sickness. Food safety incidences have also led to costly product recalls. Just recently in May, Indomie Egypt was forced to recall its chilli, chicken and vegetable flavoured noodles from the market after the Food and Safety Authority (FSA) of Egypt determined that the packets contained aflatoxins and pesticide residues in quantities that exceeded safe limits. Earlier in 2021, South African food giants Pioneer foods and Tiger Brands were forced to conduct product recalls

for some of their products over food safety issues. These recalls and many other exacerbate an already dire food security situation in a continent where about one in every five people faces hunger on a daily basis. To help address this gap, our sister magazine, `Food Safety Africa in partnership with the African Development Bank is holding the 2ed annual Africa Food Safety Summit. Held between July 20th and 22ed at the Emara Ole Sereni Hotel in Nairobi Kenya, the summit will explore topics including the latest food safety

trends, standards, and regulations. On the same vein, in this issue we focus on Ghana, a country striving to achieve food sufficiency through local manufacturing. On pg. we explore the soft beverage industry in Uganda, the strides it has made and the potential it offers in investors. Our beverage section on page 45 explores the impact of Covid-19 on trends in beverage innovations while the dairy section on Page 39 explores progress made in the manufacture of lactosefree milk. Having been in Kenya for the past 2 issues, we shift gears to South Africa where we highlight the story of Mogale, an ambitious food technology company with plans to disrupt the meat industry as we known it. As the trends tips towards natural, we bring you insights on how manufacturers are playing with plants to create bright and bold colors for your food and beverages. Finally, we explore the latest in the plant-based food scene on page 65. We are certainly confident that you will find every page worth your read. We wish you a delightful read. Francis Juma Publisher

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APIWE NXUSANI-MAWELA Founder & BrewMaster – Brewsters Craft, South Africa

DAVID CHITOWE Founder & CEO, Mzuzu Dairy


32 CONTENTS

32

My Company Profile: Mogale Meat Company

Mogale meat plates Africa’s first cultivated gamemeat

YEAR 9 | ISSUE NO. 52 MAY/JUNE 2022

49 Country Focus: Ghana Demand for processed foods creates new growth opportunities for Ghana’s food industry

Report: Soft Beverage 60 Industry Industry in Uganda

ON THE COVER Paul Bartels, CEO and founder, Mogale Meat Co. 4

MAY/JUNE 2022 | FOOD BUSINESS AFRICA

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The Art of European Meat

Hindquarter Carcass with jowl

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

Find your Belgian meat master at artofmeat.eu

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


CONTENTS

YEAR 9 | ISSUE NO. 52 MAY/JUNE 2022 REGULARS 10 Editorial 12 Events Calendar 28 Appointments Update

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News Updates:

• •

30

New Product Innovations: Bidco Africa: joOz Boost+ fruit juice | Capwell Industries: Soko Nutrigo Wholegrain Maize Meal & Yola Uji Shake | Kenchic: Crispy Kuku Chicken range | Kenyan Originals: KO Classic and Tambizi Gin |Browns Food Company: Grove & Meadow Plant Based Yoghurt Berry | Heineken Ethiopia: Bertat Energy Drink

DAIRY BUSINESS AFRICA 39 Lactose free dairy products emerge from specialist niche positioning to stake a claim in mainstream dairy aisle

• •

BEVERAGE TECH AFRICA 45 COVID-19 Trends: Beverage makers align new product developments with shifting consumer tastes and preferences FOOD INGREDIENTS 55 Making bold statement with food colors MARKET TRENDS 65 Plant based foods: Why all the fuss?

24

Supplier News & Innovations: • •

• • •

6

MAY/JUNE 2022 | FOOD BUSINESS AFRICA

Suntory Beverage & Food offloads Nigerian unit to Africa FMCG Distribution Ltd for US$14m Moroccan cheese processor Oland Group invests US$8m in four new processing lines Mondelez to sell its chewing gum business gum in developed markets Zambian Breweries to double beer production capacity under new US$80m plan Dufil Prima Foods merges with its 3 subsidiaries to bolster position in Nigerian market Entry of big food into alternative meat industry threatens survival of small players: IPES-Food report Kenya Breweries Limited launches biomass steam plant, breaks ground for new microbrewery Flemish biscuit maker Lotus invests US$11m in third South African factory Nestlé Ghana beefs up infant cereals production capacity with US$22m investment Ethiopian beer maker Dashen Brewery expands capacity of two of its breweries

Alapala assists Forafric Partners to increase wheat processing capacity Multivac introduces R3 thermoforming packaging machine for cost-effective packaging operations Taste and Flavour expert Kerry heightens investment in Africa Barry Callebaut opens Africa’s second Chocolate Academy Center in Morocco IFF launches new clean label ingredient that enhance stability, mouth feel of plant-based beverages Irish paper packaging manufacturer Smurfit Kappa commences construction of first plant in Africa DSM-Firmenich merger to create largest beauty, well-being and nutrition supplier

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Year 9 | Issue 2 | No.52 • ISSN2307-3535

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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.

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EVENTS CALENDAR July 20-22, 2022 Africa Food Safety Summit Nairobi, Kenya https://summit.foodsafetyafrica.net/ July 20-22, 2022 AFMASS Youth Summit Nairobi, Kenya https://www.afmass.com/nextgen/ August 03-05, 2022 GCCA South African Cold Chain Conference Cape Town, South Africa Focus: Cold-chain https://www.gcca.org/events/about-2 August 03-06, 2022 World Food Expo Taguig, Philippines Focus: Food & Beverages https://wofex.com/wofex-manila September 01-04, 2022 WorldFood Istanbul Istanbul, Turkey Focus: Food & Beverages https://worldfood-istanbul.com/Home September 07-09, 2022 Food Ingredients Asia Jakarta, Indonesia Focus: Food & Beverages https://www.figlobal.com/asia-indonesia/ en/home.html

September 22-24, 2022 IFMEX Tanzania Dar es Salaam, Tanzania Focus: Food & Beverages https://www.expogr.com/tanzania/ifmex/

October 25-26, 2022 Grocery Innovations Canada Toronto, Canada Focus: Food & Beverages https://virtual.groceryinnovations.com/

September 28-30, 2022 MeatEx Canada Toronto, Canada Focus: Meat https://meatexcanada.com/

October 25-28, 2022 Annual IAOM MEA Conference & Expo Zanzibar, Tanzania Focus: Grains & Milling https://www.iaom-mea.com/upcomingevents/

September 28-30, 2022 Addis Inter food & agro Addis Ababa, Ethiopia Focus: Food & Beverages http://addisinterfood.com/ October 01-05, 2022 World Coffee and Tea Expo Lagos, Nigeria Focus: Tea & Coffee https://www.worldcoffeetea.com/ October 02-07, 2022 World Dairy Expo Madison, USA Focus: Dairy https://worlddairyexpo.com/ October 04-06, 2022 Fruit Attraction Madrid, Spain Focus: Fruit https://www.ifema.es/en/fruit-attraction

September 07-10, 2022 Malaysia International Halal Showcase Kuala Lumpur, Malaysia Focus: Food & Beverages https://www.mihas.com.my/website/

October 05-07, 2022 Cape Wine Cape Town, South Africa Focus: Wine https://www.capewine2022.com/

September 13-15, 2022 Morocco Siema Expo Casablanca, Morocco Focus: Processing & Packaging https://www.siemamaroc.com/

October 12-14, 2022 Dairy Industry Expo Pune, India Focus: Dairy https://west.dairyindustryexpo.com/

September 14-16, 2022 Annapoorna - ANUFOOD India Mumbai, India Focus: Food & Beverages https://www.anufoodindia.com/

October 12-14, 2022 Africa Food Show Nairobi, Kenya Focus: Food & Beverages https://africafoodshow.com/

Connect with us 12

Food Business Africa Magazine

MAY/JUNE 2022 | FOOD BUSINESS AFRICA

October 26-28, 2022 China Fisheries and Seafood Expo Qingdao, China Focus: Fish & Seafood https://chinaseafoodexpo.com/about/ November 08-10, 2022 ISM Middle East Dubai, UAE Focus: Snacks & Confectionery https://www.ism-me.com/ November 08-10, 2022 Gulfood Manufacturing Dubai, UAE Focus: Food & Beverages https://www.gulfoodmanufacturing.com/ November 23-25, 2022 Pacprocess India Mumbai, India Focus: Processing & Packing https://www.pacprocess-india.com/ November 29-December 01, 2022 agrofood West Africa Accra, Ghana Focus: Food & Beverages https://www.agrofood-westafrica.com/ December 05-07, 2022 Food Africa Cairo Cairo, Egypt Focus: Food & Beverages https://www.foodafrica-expo.com/ December 07-09, 2022 Drink Technology India Mumbai, India Focus: beverage, dairy and liquid food www.drinktechnology-india.com/en/

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NEWS UPDATES by www.FoodBusinessAfrica.com INVESTMENT

Ethiopian beer maker Dashen Brewery expands capacity of two of its breweries

ETHIOPIA – Dashen Brewery S.C., a major player in the rapidly developing Ethiopian Beer Market, has completed

expansion of two of its breweries i.e., Debre Berhan and Gondar at a cost of over 1.7 billion Birr (US$32.7m). Expansion of the project has significantly increased the beer maker’s annual production capacity by 1.6 million hectolitres to 4.4 million hectolitres. Meanwhile, the factory in Gondar has increased its capacity from 800,000 hectares to 1.2 million hectolitres. The added capability is set to enable Dashen to launch new

products in the market and increase sales volumes. In addition, the investment will increase the company’s local raw material sourcing capabilities especially for barley and create both direct and indirect employment opportunities. Investment in the facilities was made possible courtesy of the recent US$100 million fundraising undertaken by one of its major owners, Vasari Global, an Africa-focused multinational consumer goods company.

DIVESTMENT

Suntory Beverage & Food offloads Nigerian unit to Africa FMCG Distribution Ltd for US$14m NIGERIA – Suntory Beverage & Food Limited Asia Pte (SBFA), maker of Ribena and Lucozade, has agreed to sell its Nigerian subsidiary, Suntory Beverage & Food Nigeria (SBFN), to Africa FMCG Distribution Ltd (AFDL) for a total consideration of US$14 million. The transaction expected to be completed in the second quarter of 2022, subject to regulatory approval, will entail the transfer all the shares of the non-alcoholic beverage maker to

AFDL and the loan receivables held by SBFA against SBFN. In addition, SBFA has agreed with AFDL on a license agreement for the

exclusive right to manufacture and distribute SBF brands, Lucozade and Ribena, in Nigeria. CEO of SBF, Kazuhiro Saito, said, “As part of our regular strategic portfolio review and considering the broad options in Nigeria to accelerate the growth of our brands, we have decided that it is best to launch a new operating model in Nigeria, leveraging the extensive distribution network, and the expertise in the local market that AFDL possesses.”

SUSTAINABILITY

Nestle expands initiatives to reduce milk and dairy ingredient’s environmental footprint SWITZERLAND – Swiss multinational food and drink processing conglomerate corporation, Nestle, is expanding initiatives to reduce the environmental footprint of its largest raw material by volume, milk, and dairy ingredients. The owner Grekyo and Actiplus yogurt brands currently operates over 100 pilot projects with partners worldwide, including 20 farms it says 14

MAY/JUNE 2022 | FOOD BUSINESS AFRICA

are ‘already on a path to hit net zero emissions ‘in the near future. The firm has also committed to investing CHF1.2 billion (US$1.23 billion) over the next five years to spark regenerative agriculture adoption across its supply chain. Regenerative agriculture focuses on soil health, biodiversity, and water preservation, with practices typically including efforts like cover cropping,

no-till methods, crop rotation, mixed farming, and hedgerows to support biodiversity. FOODBUSINESSAFRICA.COM


INVESTMENTS

Nestlé Ghana beefs up infant cereals production capacity with US$22m investment GHANA – Nestlé Ghana has completed the expansion of its infant cereals plant in Tema, making it the primary hub for producing and supplying infant cereals in the country and 24 other nations in Central and West Africa. The expansion tagged at a cost of GHS 175.4 million (US$22.12m), has increased the production capacity of CERELAC brand by 6,700 tons. In the meantime, the food processing giant is readying for the next phase of the plant’s expansion, which will be completed in 2024 at an additional cost of GHS 56 million (US$7.06m). This will add another 6,700 tons of production capacity, through which it will continue to provide the right nutrition for the healthy growth of children in the country and beyond. “With production growing to

about 13,700 tons annually, additional income opportunities for local farmers and suppliers in Ghana and the region of Central and West Africa are guaranteed,” said Mr. Mauricio Alarcón, Chief Executive Officer for Nestlé Central and West Africa Region (CWAR).

WITH PRODUCTION GROWING TO ABOUT 13,700 TONS ANNUALLY, ADDITIONAL INCOME OPPORTUNITIES FOR LOCAL FARMERS AND SUPPLIERS ARE GUARANTEED Mauricio Alarcon, Chief Executive Officer for Nestle Central and West Africa

BRAND REFRESH

McDonald’s restaurants in Russia reopen under new brand

RUSSIA Former McDonald’s restaurants have reopened under a new name, Vkusno & tochka (“Tasty and that’s it”), and new owner Alexander Govor, whose GiD LLC previously run 25 restaurants of the US fast food chain. In addition, the classic menu items have also been rebranded, such as Filet-O-Fish has been called “Fish Burger” and burgers are known as “Grand” rather than “Royal,” according FOODBUSINESSAFRICA.COM

Moroccan cheese processor Oland Group invests US$8m in four new processing lines

to the Moscow Times. The rebranding comes after the world’s largest burger chain McDonald’s exited the Russian market bringing an end to a stint that commenced 32 years ago when the company first set foot in the former Soviet Union. “Vkusno &Tochka,” has already opened 15 locations in the Moscow region, with another 200 set to roll out across the country later this month. The chain owner, Alexander Govor, said that he has plans to expand the new brand to 1,000 locations across the country and reopen all the chain’s restaurants within two months. Govor also highlighted plans of investing up to 7 billion roubles ($121million) this year in the business, which employs more than 50,000 people.

MOROCCO – Oland Group, a Moroccan agri-food manufacturer specializing in the production of cheese and butter, has inaugurated four new processing lines dedicated to the processing of melted cheese triangle in Casablanca. The new investment tagged at a cost of 80 million dirhams (US$8.09m), aligns with Morocco’s national strategy for developing the dairy sector to meet local needs and extend exportation services. In support of the Initiative, Oland is set to benefit from an investment premium of around 15 million dirhams (MDH) (US$1.52m) over the next 3 years from the state.

This is courtesy of an investment agreement signed by the company and Morocco’s Ministries of Finance and Industry and the National Agency for the Promotion of Small and Medium Enterprises (ANPME).

MAY/JUNE 2022 | FOOD BUSINESS AFRICA

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NEWS UPDATES

Corteva Agriscience sets up new seed treatment facility in South Africa SOUTH AFRICA – Corteva Agriscience, a US based agriculture solutions provider, has officially opened a stateof-the-art seed treatment laboratory in Rosslyn, Pretoria, South Africa. The Centre for Seed Applied Technologies (CSAT) laboratory will utilise industry-leading equipment and focus specifically on recipe development and safety testing of seed applied solutions. The site will also be integrated into Corteva’s global CSAT network and is strategically positioned to meet the ongoing demands of grain producers across Africa and Middle East (MEA region), ensuring that farmers have access to high-quality seed and better field performance.

Carrefour launches Africa’s first gourmet store in Egypt featuring exclusive, premium offerings

INVESTMENTS

Morocco sees increased investment in biscuit, confectionery sector

MOROCCO – Best Biscuits Maroc, one of Morocco’s leading producers of baked goods, has received 350 million dirhams (US$35.6m) from its parent company, Anouar Invest to expand its production capacity. The investment, which is Anouar’s third in the company since 2015, will be deployed in three phases and set to be completed by 2024.

At the end of this deadline, the unit, which currently covers 1.1 hectares, will enable Best Biscuits to double down on offering a more diversified supply of biscuit products that can meet domestic market demand and replace imports. Tapping into the fast-growing biscuits and confectionery market, Marrakech Fine Food (MFF), a Moroccan agrifood manufacturer, has inaugurated a US$7 million biscuit and chocolate processing factory. Meanwhile, Egyptian packaged snack food market, Edita Food Industries has launched its first overseas production facility in the Maghreb Kingdom. Edita first entered the Moroccan market in 2019 focusing on wafer exports. With the new facility it has commenced production of its flagship HOHOs brands. The company plans to install additional production lines and diversify the product offering in the near future.

INVESTMENT

CCBA cuts ribbon to US$100m bottling plant in Ethiopia EGYPT – Carrefour Egypt, owned and operated by Majid Al Futtaim, has opened its first gourmet store in the region at Fifth Settlement, New Cairo. The new concept store aims to provide the Egyptian community with a premium experience by offering exclusive, artisanal products and seamless services. In addition, with over 7,000 items on display, Carrefour Gourmet makes taste and refinement more accessible by specialising in fresh and gourmet products at affordable prices. The new store enhances the customer journey through innovative product displays and advanced technology, including a self-checkout system for speed and convenience. 16

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ETHIOPIA – Coca-Cola Beverages Africa (CCBA) has opened a new US$100 million bottling plant at Sebeta in Ethiopia, to boost local production. The new plant adds 500 employees to the workforce of CCBA and will enable the company to integrate the production of inputs such as preforms, closures and other materials. Production of these input materials, besides meeting CCBA’s own demand, is planned for the export market to generate foreign exchange to help resolve shortages in the sector. Its completion brings CCBA’s production capacity in Ethiopia to more than 100 million cases a year and as well as enable local production of new products such as Minute Maid Juice, reducing imports and adding to

national GDP. Construction of the Sebeta plant began in 2019, following the announcement of a US$300 million investment over five years to expand CCBA’s operations in Ethiopia. A sixth plant is planned at Hawassa.

ITS COMPLETION BRINGS CCBA'S PRODUCTION CAPACITY IN ETHIOPIA TO MORE THAN 100 MILLION CASES A YEAR. FOODBUSINESSAFRICA.COM


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NEWS UPDATES

Kenyan based aquaculture entity Victory Farms clinches US$5m funding to expand into new markets KENYA – East Africa’s largest commercial fish farm, Victory Farms, has raised US$5 million in new funding to facilitate its expansion in Rwanda, DRC and Tanzania. The investment was led by Ed Brakeman, a senior managing director at Bain Capital and Hans den Bieman, founder and ex-CEO of Mowi, one of the largest salmon businesses globally. This is the startup’s first institutional investment following seven internal angel rounds from the same set of equity–and debt investors (it raised US$40 million in debt last year). The latest funding includes the multi-million-dollar mezzanine debt investment from social impact investor specializing in the African agriculture sector, AgDevCo, channelled towards construction of a feed mill.

Kenya based packaging supplier Ramco Plexus takes full ownership of Platinum Packaging KENYA – Ramco Plexus has received unconditional regulatory approval to take full control of Platinum Packaging, The approval will allow Ramco to buy the remaining 50 percent stake held by Carton Manufacturers in the packaging and labelling firm in a transaction that sources estimated at about Ksh500 million (US$4.30m). Platinum Packaging is one of the largest gravures and digital printed flexible packaging company in the Eastern and Central African region. The company serves the fastmoving consumer goods (FMCG), food and beverage and agrochemical sectors, supplying flexible packaging solutions in reels, pouches, digital labels and sleeves. 18

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INVESTMENTS

Mondelez to sell its chewing gum business gum in developed markets

USA – Mondelēz International has announced plans to sell its gum business as part of its long-term goal to accelerate growth and generate 90% of revenue in chocolate and biscuits, including baked snacks. Gum is 5% of Mondelez’s total revenue and is estimated to have posted revenue of roughly US$1.3 billion in 2020. The decision to sell the business which includes brands such as Trident, and Dentyne, comes after completing

a strategic review of the division during the past year. The sale will allow it to accelerate

growth in chocolate and biscuits which the company says are attractive and historically durable categories in both developed and emerging markets.

THE SALE WILL ALLOW IT TO ACCELERATE GROWTH IN CHOCOLATE AND BISCUITS WHICH THE COMPANY SAYS ARE ATTACTIVE AND HISTORICALLY DURABLE.

Only the developed segment of the gum business is under consideration. Mondelēz will continue to operate other brands and products within its candy business, as well as its emerging market gum business. Company CFO Luc Zaramella however revealed that the snack giant is focused on restoring the segment to pre-COVID-19 levels before it decides to “potentially assess whether there are other avenues for us to create more value for Mondelez shareholders”.

FOODBUSINESSAFRICA.COM


TECHNOLOGY

Unilever partners with Flytrex for drone ice cream deliveries

US – British multinational consumer goods company Unilever has partnered with Flytrex to launch drone delivery services for ice cream bought from its “The Ice Cream Shop” virtual storefront. Under the partnership, drone deliveries will be made for shoppers in Flytrex’s coverage area, which

currently includes Holly Springs, Fayetteville, Raeford, North Carolina, and Granbury, Texas. According to Unilever, drone orders from The Ice Cream Shop will be delivered to the front and back yards of local residents with a promised flight time of less than three minutes. Customers can place orders for drone deliveries of ice cream using the Flytrex app. The app will provide customers with real-time updates along the delivery route until the package is lowered safely by wire into their yard. Other than the delivery being faster than before, the partnership is also offering exclusive ice cream bundles such as “Chocolate Lover’s Bundle,” and Berry Fruity Bundle” for purchase.

DIVERSITY & INCLUSION

Shoprite Checkers establishes US$599m evergreen B-BBEE employee trust SOUTH AFRICA – JSE-listed retailer Shoprite Holdings, through its subsidiary Shoprite Checkers Propriety Limited, has formed an Employee Trust with 40 million Shoprite Checkers’ shares valued at R8.9 billion (US$599m). The supermarket chain owner through the newly formed trust has effectively increased black empowerment ownership in the subsidiary to 19.2%. The trust’s 40 million shares will be split into 4 million class A shares and 36 million class B shares. According to the company, its South African employees currently totalling 126,000, will benefit directly through the Shoprite Employee Trust, as unitholders, whilst nonRSA employees, of which there are currently 16,000, will receive equivalent benefits through their FOODBUSINESSAFRICA.COM

respective payroll. Shoprite Checkers will provide a R888 million contribution which will allow for the subscription of 10% of the shares to be held by the Shoprite Employee Trust with the balance of shares funded on a notional basis by Shoprite Checkers. An initial distribution of R77 million (US$4.84m) for the 6-month period to 2 January 2022 will be received by eligible RSA and non-RSA employees.

THE TRUST'S 40 MILLION SHARES WILL BE SPLIT INTO 4 MILLION CLASS A SHARES AND 36 MILLION CLASS B SHARES.

Zambian Breweries to double beer production capacity under new US$80m plan

ZAMBIA – Zambian Breweries, subsidiary of the world’s largest brewer AB InBev, is seeking to invest US$80 million over the next 18 months, to double production capacity at its Lusaka plant. The investment is set to unlock innovation opportunities within the beer category, see a reduced reliance on imports, as well as open up export options. Scheduled to be completed by the end of 2023, it is expected to create more direct and indirect jobs, expand the company’s agriculture out-grower schemes, offer further procurement opportunities for local suppliers and service providers, and contribute additional tax revenue to government. The nation’s largest brewer revealed that the planned capital investment package was buoyed by the by the enabling investment and trade climate under Zambia’s New Dawn government. The new investment is an addition to the company’s long-standing contribution to the Zambian economy over many years, with just under US$400 million spent on capital investment programmes in the last decade.

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NEWS UPDATES

JB Foods invests US$63m in construction of new cocoa processing facility in Ivory Coast

IVORY COAST – JB Foods Limited, a major cocoa ingredients producer with operations spanning across the globe, has broken ground for the construction of a new cocoa processing facility in Abidjan, Ivory Coast. The new factory which is located in the industrial zone PK24, is slated to be ready by the fourth quarter of 2024 after an initial investment of about 60 million Euros (US$63m). Building of the factory is a key milestone for JB Foods as this is its first cocoa processing unit in Africa and adds to its facilities in Malaysia and Indonesia. The processing facility will adopt the latest technology to produce premium cocoa ingredient products — namely, cocoa mass, butter and powder, which are used to produce chocolate, chocolate confectionary as well as cocoa-related food and beverages sold by the company worldwide. “We recognise that as the biggest cocoa producer in the world, Ivory Coast is not only strategically positioned with the availability of raw materials, it also boosts of a robust and experienced workforce, and a developed infrastructure that facilitates efficient supply chain management,” said JB Foods CEO Tey How Keong. Besides strengthening its business, the new facility will be instrumental in job creation and help Ivory Coast achieve its goal of processing 100% of its cocoa produce locally by 2030. 20

MAY/JUNE 2022 | FOOD BUSINESS AFRICA

INVESTMENTS

Kellogg Tolaram cuts ribbon to new instant noodles factory in Eswatini ESWATINI – Kellogg Tolaram, a joint venture between American Kellogg Company and Singapore headquartered Tolaram Group, has officially inaugurated an instant noodles processing facility in the Kingdom of Eswatini. Its establishment follows a publicprivate partnership entered between the Kingdom of Eswatini and the food processing company in 2019, focused on manufacture of food products for the local and foreign markets. Kellogg Tolaram invested a total of E210 million (US$13.2m) into the business that commence production in February 2021, while the government constructed the factory shell at a cost of E200 million (US$12.6m). “I would like to applaud the commitments of our Kellogg Tolaram team as well as the team on the ground for ensuring that this project takes. “Indeed, we are here today as a result of the cooperation of these two

parties – we are indeed very grateful for your work,” said His Majesty King Mswati III. The new noodles production facility will enable better market access and accelerate noodles market penetration into the Africa continent as the Kingdom of Eswatini, is a member of SACU, SADC, and COMESA trading zones.

I WOULD LIKE TO APPLAUD THE COMMITMENTS OF OUR KELLOGG TOLARAM TEAM AS WELL AS THE TEAM ON THE GROUND FOR ENSURING THAT THIS PROJECT TAKES OFF His Majesty King Mswati III of the Kingdom of Eswatini

MERGERS

Ugandan sugar miller Sarrai opens new factory with processing capacity of 4000 tonnes per day

– Sarrai Group, a conglomerate of diverse and inter-related agro-manufacturing companies across East and Southern

UGANDA

Africa, has inaugurated a new sugar factory in Kiryandongo district, Western Uganda. The new Kiryandongo Crest Sugar factory, seats on 13,000 acres of land with a processing sugar capacity of 4000 tonnes per day. Having ample land, according to Chimp Reports, the factory will rely on sugar cane from its own farm and the neighbouring farming communities. Other than supporting the local farmers by availing ready market for their produce, the facility is expected to employ about 800 workers and further drive the nation’s industrialization policy.

FOODBUSINESSAFRICA.COM


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FOOD DRINKS MARKET

Discover the latest food, beverage and milled packaged goods and new-age trendy products from Africa and the World at the AFMASS Food & Drinks Market Dairy Products • Coffee & Tea • Poultry & Fish • Fresh Produce • Soft & Alcoholic Beverages • Milled & Packaged Flours, Legumes, Snacks & Grains • Nuts, Oils & Oilseeds • Animal & Pet Foods • Savoury & Condiments • Fats & Oils AND MANY MORE . . .

JUNE 15-17, 2023

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21 MAY/JUNE 2022 | WWW.AFMASS.COM FOOD BUSINESS AFRICA SARIT EXPO CENTRE, NAIROBI, KENYA


NEWS UPDATES

Grands Moulins d’Abidjan invests US$15.7M to expand cereal storage capacity in Ivory Coast IVORY COAST – Grands Moulins d’Abidjan (GMA), an agri-food company specializing in the production and marketing of flour and wheat products has invested US$15.7 million in 6 new cereal silos in Abidjan, Ivory Coast. “This storage capacity increase is one of our parent company’s, Seabord Corporation, objectives to be more competitive in the Ivorian millers’ market,” indicates Marc Alexy, deputy general manager of GMA. These new installations, which have a total capacity of 28,000 tonnes, are set to increase GMA’s storage potential in the nation to 50,000 tonnes of grain. This will help the miller to crush a volume of 300,000 tonnes of cereals annually, to meet the growing flour needs of the national market, both from consumers and from industrialists in the wheat-flour bakery sector.

Flemish biscuit maker Lotus invests US$11m in third South African factory SOUTH AFRICA – Lotus, a Belgiumheadquartered biscuit maker, has commenced construction of its third factory in South Africa, tagged at a cost of R170 million (US$11m). The company opened its first plant in the country in 2019 and the second one followed in 2021 with the third expected to be completed by August 2023. Since commencing operations in the South African country, Lotus has expanded its production capacity from 1,800 tonnes to about 3,100 tonnes and has created over 520 job opportunities. Investment in the third factory brings the total capital injection by Lotus in its production facilities in the country to £55 million (US$60m). 22

MAY/JUNE 2022 | FOOD BUSINESS AFRICA

SUSTAINABILITY INITIATIVE

Kenya Breweries Limited launches biomass steam plant, breaks ground for new microbrewery

KENYA – Kenya Breweries Limited (KBL), a step-down subsidiary of multinational alcoholic beverage Diageo, through East African Breweries Limited (EABL), has commissioned a biomass steam plant. The biofuels facility, located at its Tusker brewing plant is expected to reduce its direct carbon emissions by 95% (about 42,000 tonnes of carbon a year).

ITS COMPLETION WILL HELP US ACHIEVE NET ZERO STATUS, REDUCING OUR CARBON EMISSIONS BY 48,000 TONNES ANNUALLY Jane Karuku, Managing Director EABL

The alcohol beverage maker has also broken ground for the construction of the new Ksh.1 billion (US$8.5m) microbrewery in Nairobi, Kenya. The facility, expected to be opened by December, in time to celebrate the 100-year birthday of the business’ first brand, will serve as an innovation center for alcoholic and non-alcoholic beverages, providing an indispensable platform to nurture upcoming talent in brewing and liquid development in the region. It will also feature a taste room where visitors will learn about and sample the various brews that the company offers in a guided session led by sensory experts. In addition, there will be a taproom, consisting of a bar and restaurant, providing a unique, engaging customer experience with great food, drinks, and entertainment options.

“Its completion will help us achieve net-zero status reducing our carbon emissions by 48,000 tonnes annually,” said EABL Managing Director Jane Karuku The biomass project is part of KBL’s parent company Ksh 22 billion (US$199m) investment plan aimed to facilitate its transition to use of green energy by 2030. FOODBUSINESSAFRICA.COM


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summit.ceobusinessafrica.com MAY/JUNE 2022 | FOOD BUSINESS AFRICA

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SUPPLIER NEWS & INNOVATIONS

INVESTMENT

Alapala assists Forafric Partners to increase wheat processing capacity

NEW PRODUCT

Givaudan’s natural nitrite alternative a game changer for the meat industry

MOROCCO – Alapala, a leading supplier of turnkey projects for the milling industry, has partnered with Forafric Maroc, a fully-owned subsidiary of Forafric Global PLC, to increase its wheat and durum processing capacity through the expansion and creation of new mills. Forafric is an industrial group specialized in the milling industry with a complete range of flour and semolina, and secondary processing products such as pasta and couscous.

The two partners have agreed on expanding three of its existing mills in Morocco as well as building three new mills at a total cost estimated at MAD 1 billion (US$99.5 million). “We are pleased to have the opportunity to work with Forafric Maroc on its program to enter a new market and significantly increase its production output,” said Gorkem Alapala, Vice Chairman of the Board of Alapala Group. The expansion of the Forafic operations in the North African country is forecasted to increase the company’s daily wheat and durum processing capacity to 2,370 metric tonnes over the next 30 months, up from the current daily capacity of 420 metric tonnes. 24

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SWITZERLAND – Swiss multinational food ingredients manufacturer, Givaudan has developed a new natural alternative to nitrite to help meat processors meet growing consumer demand for healthier foods. Nitrite is a common preservative in meat products and is frequently used to give cured meats like bacon a pink colour. But while nitrites serve a useful functional purpose, a 2015 World Health Organization report classified processed meat as carcinogenic. Givaudan describes its patentpending nitrite alternative in meat as a ‘synergistic combination’ of plant-based ingredients and natural

ALTERNATIVE SOLUTIONS (TO NITRITES) MUST PROVIDE THE SAME LEVEL OF PERFORMANCE WITHOUT THE ASSOCIATED RISKS. Guillaume Gaborit, Global Product Manager for Sense Preservation at Givaudan

flavorings. The new solution, NaNino+, leverages natural ingredients to provide what Givaudan describes as ‘a lasting multi-sensorial food experience’ with ‘great taste, color and freshness. Givaudan says it developed this latest innovation in response to ‘increased scrutiny around nitrites’ and ‘growing consumer demand for healthier alternatives’. “Because nitrites provide multiple benefits, replacing them is no easy task. Alternative solutions must provide the same level of performance without the associated risks,” explained Guillaume Gaborit, Global Product Manager for Sense Preservation at Givaudan. NaNino+ is ‘an integrated solution’ that not only ensures freshness throughout shelf life but also ‘delivers a cured-like multi-sensory experience’ in terms of taste and color, the product manager suggested. FOODBUSINESSAFRICA.COM


INNOVATION

Multivac introduces R3 thermoforming packaging machine for cost-effective packaging operations Additionally, “the chain guides for the web advance can be adjusted individually, and they are also decoupled from all the forces of the machine processes,” explained the company.

GERMANY – Multivac, a leading global provider of packaging solutions for food, has introduced its new R3 thermoforming packaging machine to help manufacturers keep up with the sustainable and cost-effective packaging operations of the future. Available from July 2022, the machine will not only run the latest types of packaging materials, such as recyclable and environmentally friendly mono films, but it will also be adapted to a wide range of customer

requirements due to its modular construction. The R3 comprises four stations namely the forming station, the loading area, the sealing die and the cutting area and achieves a speed of twelve cycles per minute at its peak level. The new machine has been equipped with “allover heating” in order to heat recyclable films evenly to prevent waves at the edges of packs.

THE NEW MACHINE HAS BEEN EQUIPPED WITH "ALL OVER HEATING" IN ORDER TO HEAT RECYCLABLE FILMS EVENLY TO PREVENT WAVES AT THE EDGES OF THE PACKS. In addition to its immense capabilities, The R3 is designed in such a way, that minimal maintenance is required, says Multivac.

INVESTMENT

Taste and Flavour expert Kerry heightens investment in Africa AFRICA – Irish multinational taste and nutrition company, Kerry, has opened a new US$40 million plant in South Africa aimed at producing sustainable food for the continent. Located in KwaZulu-Natal, the new 10,000 sqm facility is one of the company’s largest and most advanced taste manufacturing facility on the African continent. The facility is environmentally efficient and features low energy usage equipment, solar power generation, waste heat capture, and efficient water capture, reuse and reduction. Inauguration of the South African plant was followed in quick succession with the opening of an Application and Development center in Kenya, to FOODBUSINESSAFRICA.COM

support its customers in East Africa and drive innovation in the sector. Opening of the high-tech labs is aimed to bring local, sustainably produced food and taste solutions to the continent and support co-creation with customers as it expands in the region. “Our suite of world-leading

technologies combined with our expertise ensures that we can continue to work with our customers to produce great tasting, nutritious products that are respectful of our planet,” said Peter Dillane, Kerry VP for Middle East, Indian Subcontinent and Africa.

MAY/JUNE 2022 | FOOD BUSINESS AFRICA

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SUPPLIER NEWS & INNOVATIONS

INNOVATION CENTER

Barry Callebaut opens Africa’s second Chocolate Academy Center in Morocco

MOROCCO – Barry Callebaut Group, the world’s leading manufacturer of high-quality chocolate and cocoa products, has officially inaugurated its Chocolate Academy Center in Casablanca, Morocco. The new facility is expected to serve as a creative platform where chefs and artisans can showcase and develop their talent and skills, and

learn about new trends, techniques and recipes. It is the company’s second Chocolate Academy Center on the African continent joining the South African hub opened in 2018. It is also part of the wider global network comprising of 26 centres offering inspiration, training and personalized support for artisans,

pastry chefs, confectioners, bakers and caterers, helping them to explore the infinite world of chocolate indulgence. In pursuit of further driving growth in the African chocolate scene, Barry Callebaut recently unveiled plans of expanding its operations in South Africa with the establishment of a local, direct distribution network in the country. To this end, the Belgian-Swiss chocolate maker will take over the role of master distributor in South Africa and increase the number of distribution points. This will be an addition to its existing partnership with Garden Morris Packaging and Food, who will continue being one of the group’s distributors of its Gourmet business of packed products.

NEW PRODUCT

IFF launches new clean label ingredient that enhance stability, mouth feel of plant-based beverages USA – IFF has unveiled a new stabilizer that offers ‘exceptional stability’ in plant-based beverage formulations while at the same time enabling formulators to shorten their ingredients lists and offer cleaner label products.

THE LIGHT TAN-COLORED POWDER OFFERS EXCEPTIONAL STABILITY, HIGH SUSPENSION ABILITY AND EXCELLENT MOUTHFEEL Michael Cammarata, Senior beverage technologist, IFF Nourish Division

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Known as Seaflour, the new ingredient is a hydrocolloid from red seaweed that is comprised of protein, fiber, and minerals and can be described on ingredients lists in the US as ‘natural seaweed.’ IFF touts the new ingredient as a potential stabilizer in higher-protein plant-based milks made with pea or soy. “The light tan-colored powder “offers exceptional stability, highsuspension ability and excellent mouthfeel,” said Michael Cammarata, senior beverage technologist, IFF, Nourish division. When used in production, Cammarata notes that Seaflour has “a unique synergy with plant proteins, keeping plant-based beverages stable and appealing, and providing smooth, creamy texture and mouthfeel throughout their shelf lives” .

Seaflour also provides beverage formulators with opportunity to shorten their ingredients and position their products to consumers who prefer foods that are minimally processed and made with a shorter list of ingredients, IFF noted. FOODBUSINESSAFRICA.COM


RESEARCH & DEVELOPMENT

INVESTMENT

Irish paper packaging manufacturer Smurfit Kappa commences construction of first plant in Africa MOROCCO – Smurfit Kappa, one of the world’s largest manufacturers of innovative paper packaging solutions, headquartered in Ireland, has set base in Africa by investing £35 million (US$37m) in a new corrugated packaging plant in Morocco. Marking its entry into the region, the company has laid the first stone of the foundation, kick starting construction of the state-of-the-art plant. Located in Rabat and covering an area of 25,000 m2, the new facility will enable Smurfit Kappa to supply innovative and sustainable packaging solutions quickly and efficiently to its local customer base. The plant is expected to be operational in early 2023 and create packaging for sectors including industrial, agriculture, FMCG, among others.

Smurfit Kappa will be competing for the paper packaging market share in the country alongside Elopak, global supplier of carton packaging and filling equipment, who acquired Naturepak, the leading gable top fresh liquid carton and packaging systems supplier in the MENA region.

THE NEW FACILITY WILL ENABLE SMURFIT KAPPA TO SUPPLY INNOVATIVE AND SUSTAINABLE PACKAGING SOLUTIONS QUICKLY AND EFFICIENTLY TO ITS LOCAL CUSTOMER BASE.

MERGERS

DSM-Firmenich merger to create largest beauty, well-being and nutrition supplier

NETHERLANDS – Global food ingredient suppliers DSM and Firmenich have entered into a business combination agreement to establish a leading creation and innovation partner in nutrition, beauty and well-being. Named “DSM-Firmenich”, the new business outfit will bring together Firmenich’s unique leading Perfumery and Taste businesses with DSM’s outstanding Health and Nutrition FOODBUSINESSAFRICA.COM

portfolio and renowned scientific expertise. The new company will have four high-performing and complementary businesses namely fragrance, taste, texture and nutrition, each with leading positions and underpinned by world-class science. The merger of DSM-Firmenich will further accelerate innovation for the industry and generate new growth opportunities for customers, DSM said in a statement. It further added that the merger will bring together both companies’ relentless commitment to sustainability across the value chain, and in doing so help to drive environmental, social and governance leadership globally. DSM-Firmenich will have a dual headquarter in Switzerland (Kaiseraugst) and the Netherlands (Maastricht).

Bühler Group partners endeco, MMS AG to drive the development of meat and dairy alternative products

SWITZERLAND – Bühler Group has partnered with German engineering company endeco to drive forward pulse processing, meet the growing demand for alternative sources of protein, and develop pulse processing solutions with a significantly lower CO2 footprint. The partners have agreed to build a new Protein Application Center at Bühler’s headquarters in Uzwil, Switzerland, to offer customers endto-end solutions, from bean to burger, including all wet and dry processing. endeco brings decades of experience designing and implementing starch and protein plants, making it a perfect match with Bühler’s processing technologies, Johannes Wick, CEO of Business Grains & Food at Bühler said. Wick added: “endeco provides the final missing piece for Bühler between the mill and pulse processing. We are already the market leader in dry processing technology. “ With this strategic partnership, we add expertise in wet processing technology and will be able to offer full end-to-end solutions from bean to burger.” The new Protein Application Center in Uzwil will enable the build-up of know-how and drive the further development of processes for the production of meat substitute products, the partners said.

MAY/JUNE 2022 | FOOD BUSINESS AFRICA

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APPOINTMENTS Update Fairtrade International announces Sandra Uwera as new Global CEO

Dr Brighton Ochieng named new Managing Director for Promasidor Kenya KENYA – Promasidor, a food and beverage-products powerhouse headquartered in Nigeria has appointed Dr Brighton Ochieng as its new Managing Director in Kenya. Dr Brighton joins Promasidor from GlaxoSmithKline, where he was Supply Chain Lead and Site Director based in South Africa. Prior to that, he was Site Director of the pharmaceutical and healthcare

KENYA – Fairtrade, the world’s most recognized label for social justice and sustainability, has appointed Sandra Uwera as its new Global CEO to be based at its regional offices in Kenya. Ms. Uwera steps into the role following the departure of Dr. Nyagoy Nyong’o, who served as Interim Global CEO from January 2021 until 31 March 2022. She brings to her new role a wealth of experience and a unique set of skills, perspectives, and relationships to lead Fairtrade into the future. She most recently served as CEO of COMESA Business Council (CBC), the leading Business Member Organization in Africa and a private sector institution of the Common Market for Eastern and Southern Africa (COMESA), which represents 34 business sectors across 21 countries. Ms. Uwera, a Rwandan national, holds a Master of Science (MSc) in Strategic Planning, a Bachelor of Arts in Corporate Communications, and has undertaken advanced professional training in international trade policy and law, digital inclusion, and leadership for business sustainability. She is an Eisenhower fellow and sits on various Boards in Africa and internationally. 28

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company in both Cape Town and Nairobi. A strategic business leader with deep operating expertise, the new Promasidor Kenya boss, has a track record of proven success in ensuring efficient running of businesses. He holds a Doctor of Philosophy (PhD) in Ongoing, Supply Chain and Procurement from University of Nairobi and Bachelors of Business Administration, Strategic Management from the Methodist University.

TradeDepot appoints Chidi Akubuiro as Managing Director for Englishspeaking West Africa

NIGERIA – TradeDepot, Nigeria headquartered B2B eCommerce and embedded finance platform, has tapped into the expertise of former Coca Cola HBC executive, Chidi Akubuiro, appointing him to be the company’s Managing Director for English-speaking West Africa. Effective from May 1st, 2022, Chidi will lead further expansion of TradeDepot’s services across more key cities in Nigeria and Ghana, and drive growth across English-speaking West Africa. He comes into the role with extensive experience in the FMCG sector, having spent over a decade leading and delivering commercial success for some of the most indemand consumer goods brands on the continent. Before joining TradeDepot as Commercial Director in July 2020, the new boss had held previous roles at FMCG manufacturer Hayat Kimya Nigeria and Coca-Cola Hellenic Bottling Company, where he designed, oversaw and supported the implementation of various sales and growth strategies to drive revenue and meet sales objectives. FOODBUSINESSAFRICA.COM


Badr Bouslikhane succeeds Larbi Alaoui Belrhiti as head of Jumia Morocco

MOROCCO – Africa’s leading e-commerce platform, Jumia, has appointed Badr Bouslikhane to head its operations in Morocco, following the promotion of Larbi Alaoui Belrhiti to General Manager of Jumia Express Logistics. Alaoui Belrhiti was at the helm of Jumia Morocco for five years prior to taking over the new role, and led the company to become an e-commerce giant in the country. As new head of Jumia Express Logistics, he will oversee the company’s last mile, storage, transportation, and delivery services in more than 10 countries in Africa i.e., Morocco, Nigeria, Egypt, Kenya, Ivory Coast. Tunisia, Algeria, Ghana, Uganda and Senegal. Meanwhile, Jumia Morocco’s new boss, Bouslikhane, joined the company in 2021 as SecretaryGeneral. He has solid experience in the private sector having worked at BMCI, one of Morocco’s leading banking groups and Almageo. He also had a stint as a lecturer at HEM (Institut des Hautes Etudes de Management). FOODBUSINESSAFRICA.COM

Zambeef appoints Faith Misozi as new CEO to lead US$100m expansion plan ZAMBIA – Zambeef Products Plc, the integrated cold chain foods and retail business in Zambia, has promoted its Chief Financial Officer (CFO) Faith Misozi Mukutu to be the company’s head, effective 1st July, 2022. She becomes the first Zambian CEO in the 28-year history of Zambeef, which is listed on the Lusaka Securities Exchange and the Alternative Investment Market (AIM) of the London Stock Exchange. Ms. Mukutu succeeds Mr. Walter Roodt, who has been at the helm since January, 2020. He will continue with the company focusing on strategic projects as a Board member. “The Board is confident that Faith’s combination of financial aptitude, operational skill, strategic flair and capital markets experience

is fundamental to delivering the strategic imperatives the company has embarked on,” said Mr. Michael Mundashi SC., the Chairman of the Board. Ms Mutuku joined Zambeef in 2019 as Chief Financial Officer, a

role to which she brought a wealth of experience, having been Finance Director of three listed entities; Zambian Breweries Plc, National Breweries Plc. and Zambia Sugar Plc. A fellow of ZICA, an accounting and finance professional having experience of over 20 years, mostly spent in leadership positions, she combines her solid academic qualifications with the requisite breadth and depth of experience leading national and multi-national organisations.

Oceana appoints insider Neville Brink as CEO

SOUTH AFRICA – Africa’s largest fishing company, Oceana Group, has appointed Neville Brink, who has served as interim CEO since February this year, as its permanent CEO. According to the Lucky Star brand maker, Neville brings a wealth of experience to the role and valuable institutional memory. He has had an illustrious career in the fishing industry that spans more than 38 years, 27 of which have been with Oceana. Neville takes over the helm of the company from Imraan Soomra who tendered his resignation as Executive Director and Chief Executive Officer of the company in February.

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NEW FOOD PRODUCT INNOVATIONS

BIDCO AFRICA joOz Boost+ fruit juice Bidco Africa, East Africa’s leading consumer goods company, has launched an immune boosting variant of its joOz juice brand. The new joOz Boost+ fruit juice, a first of its kind in Kenya, claims to improve the immune system, boosts prevention of diseases and illnesses, and offers specifically enhanced benefits for excellent health. The beverage coming in lemon and orange flavours is readily available on the country’s leading retail outlets in 300ml bottles.

www.bidcoafrica.com

CAPWELL INDUSTRIES Soko Nutrigo Wholegrain Maize Meal & Yola Uji Shake Capwell Industries has introduced the first 100% wholegrain maize flour in Kenya. It is foil-packed to guarantee freshness throughout its 6-month shelf life and is available in 1kg and 2kg in leading supermarkets. The company has also expanded its product portfolio with the launch of Yola Uji Shake, the first ready to drink flavoured maize porridge. The product is available in 3 new flavors; Natural, Peach and Lemon and is packed in 250ml & 450ml bottles.

www.capwell.co.ke

KENCHIC Crispy Kuku Chicken range Kenchic Limited has launched a breaded-chicken range of products, designed to be easy to cook at home and deliver a tasty experience. The products under this range include Crispy Kuku Nuggets, Bites, Strips and Burger patty. On sale, initially, at Carrefour and Chandarana supermarkets, the Crispy products have been designed to inject new verve and variety into the home-cooking options for chicken.

www.kenchic.com

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KENYAN ORIGINALS KO Classic and Tambizi Gin Kenya based craft beverages maker, Kenyan Originals has introduced two locally-made flavoured gins as it expands its alcoholic product line. The brands include 750ml KO Classic and Tambuzi, retailing at Ksh2,400 and Ksh1,350 respectively. The beverages incorporate locally-sourced flavours such as bitter orange leaves, lemongrass, bay leaves, roses, hibiscus, baobab, njugu (peanuts), mint, Ginger, mangoes and Chilli.

www.kenyanoriginals.co.ke

BROWNS FOOD COMPANY Grove & Meadow Plant Based Yoghurt Berry Browns Food Company has joined the fast-expanding plantbased dairy aisle in Kenya with launch of its Grove & Meadow Plant Based Yoghurt Berry. Made with fresh coconut milk, cassava starch, and real berries, Grove & Meadow “is a perfectly thick yoghurt for all your family to enjoy.” The yogurt is packaged in 150ml cardboard tubs to limit its footprint and is available in leading online and physical retail stores in Kenya.

www.brownsfoodco.com

HEINEKEN ETHIOPIA Bertat Energy Drink Heineken Ethiopia has unveiled the country’s first non-alcoholic malt-based energy drink dubbed Bertat. The drink delivers instant energy while providing the goodness of malt as well as packed with vitamin B6 & B12. The new drink is packaged in 100% recyclable glass bottles, enabling the beverage manufacturer to reduce its impact on the environment in line with its goal of achieving zero waste-to-landfill before 2025.

www.theheinekencompany.com

FOODBUSINESSAFRICA.COM

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MOGALE MEAT COMPANY Mogale meat plates Africa’s first cultivated game-meat FOODBUSINESSAFRICA.COM

MAY/JUNE 2022 | FOOD BUSINESS AFRICA

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MY COMPANY PROFILE: MOGALE MEAT COMPANY

By Catherine Wanjiku

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M

eat is a big part of most Africans’ diets and is hardly ever left out of meals - from braai in South Africa to chinginga in West Africa and nyama choma in East Africa, its needless to say that the meat culture is a pervasive one across the continent. The rapid growth of meat consumption in Africa, propelled by the ballooning population, is outstripping the ability to supply affordable and quality meats. This scenario also raises fears of untold strain on the natural environment and resources with increased production capacity required to meet ever increasing demand. At the intersection of food security and biodiversity conservation is where the cultivated meat industry, still in its infancy, has seen its origin. Just a few decades ago, it was unimaginable that one can relish on a beef burger that didn’t cost the life of an animal. However, cell-cultured meat has moved from a lofty idea to a real consumer product. In Africa, crazy as it may seem, considering

MAY/JUNE 2022 | FOOD BUSINESS AFRICA

that the average consumer still has a deficit in his/her meat consumption, there is a budding alternative meat sector, as Africans join the fray that has caught on across most of the developing world. Mogale Meat Company, a South-African cellular food-tech is one such enterprise, as South Africa leads the rest of the Continent in venturing into this highly specialized, high-tech sector. Dr. Paul Bartels, who is the Founder and CEO of company has a vision to make healthy and nutritious cell-based meat accessible to all in Africa and the world. Its sole purpose is conserving the region’s wildlife heritage and natural resources. HARK TO CALL FOR FOOD SECURITY Establishment of Mogale Meat, Africa’s first beef and game cultivated meat company, stemmed from Dr Paul’s passion for conservation and contribution to a sustainable future for Africa. He has had a long and illustrious career in bio-banking, cell culture and assisted reproduction technologies aimed at conserving endangered wildlife species FOODBUSINESSAFRICA.COM


in the region. One of his major contributions in this arena was the establishment of the Wildlife Biological Resource Centre in South Africa, which later became the SANBI National Biobank. The globally acclaimed wildlife veterinarian had a eureka moment of utilizing his expertise to produce cultivated meat from free-roaming livestock and wildlife such as cattle and antelope, when he came across the research work of Dutch Professor Mark Post, who was the first in the World to present a proof of concept for cultured meat in 2013. “It became clear that, hey, wow, we can use this process from a food security point of view, to produce more animal protein,” stated Dr. Paul. That encounter triggered the establishment of Mogale Meat, which commenced operations in 2020, focused on producing meat that is indistinguishable from the classic meats, but using a different pipeline. Traditionally, livestock is reared until it reaches maturity and once it has it’s slaughtered and the meat cuts are harvested. However, leveraging on advanced bio-technologies, the food-tech company undertakes its entire production process in a specialized laboratory. As Dr Paul explains, the process simply entails taking a small biopsy from a living animal and growing the cells in incubators

and bio-reactors, under pristine conditions with controlled parameters. “The outcome is real meat as it has fat cells and muscle cells. Its composition is similar to that of meat harvested from slaughtered livestock and so is its taste and texture,” he elaborated. Dr. Paul further highlighted that the process is highly efficient as with the controlled conditions, one can produce tonnes of meat in weeks and months as opposed to waiting the full lifespan of an animal. “This is not to say that you're getting rid of livestock keeping, not at all, because you still need to renew your supplies at stages. But what it really means is, instead of doubling the size of herd to increase production, with cultured meat technology, one only needs to take a small sample from the animals from time to time. You still got your animals growing up, but at the same time you're producing more meat thus meeting demand,” he stated. THE PROVERBIAL SILVER BULLET Other than ensuring food security, cultivated meat improves the health, socio-economic and environmental impact of consumer meat products., according to Dr. Paul. Cultivated meat reduces the pressure of rearing a large herd of livestock which have been tagged as one of the leading contributors of greenhouse

IF ONE LOOKS AT THE UN SUSTAINABLE DEVELOPMENT GOALS, CULTIVATED MEAT ACTUALLY TICKS MOST OF THESE BOXES. IT IS REALLY OF INCREDIBLE BENEFIT TO PEOPLE, TO THE ENVIRONMENT AND THE ANIMALS.

MICROSCOPES ARE KEY IN TRACKING THE DECELOPMENT OF CELL CULTURED MEAT.

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MY COMPANY PROFILE: MOGALE MEAT COMPANY

THE OUTCOME IS REAL MEAT. ITS COMPOSITION IS SIMILAR TO THAT OF MEAT HARVESTED FROM SLAUGHTERED LIVESTOCK AND SO IS TASTE AND TEXTURE.

gases emissions. “Methane is one of the most serious greenhouse gases as it lasts for 18 to 20 years in the environment, so if we can cut down on that by having less cows but still producing the meat that we want, then we will certainly contribute to reducing greenhouse gases emissions.” Further to that, livestock production is linked to high utilization of water with Dr. Paul highlighting that it takes more than a ton of water to produce a kilo of steak using the conventional method. “And we know many countries in Africa are water deficient and we're talking about millions of tons of water that goes down the drain.” Also, keeping a large herd of livestock translates to unrelenting land clearing for planting of additional fodder crops needed to feed more livestock, together with increased fertilizer, pesticide and water usage, collectively eliminating untold biodiversity. “For instance, if we look at what's happening in Brazil, it's horrific the amount of forest that they are chopping down in order to produce more beef. By utilizing the latest technologies you're saving probably 95% of the amount of

THE SPECIALIZED LAB WHERE MOGALE PRODUCES ITS CELL CULTURED MEAT.

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land that you need in order to produce this protein that we really want. The only thing which it'll probably use quite a lot of is energy, but with smart designs of the plants using sustainable energy that will come to that,” Dr Paul confidently stated. Wildlife conservation has also not been bypassed by the benefits brought by cell-cultured meat production, as it eliminates the threat of wildlife extinction arising from high demand of game meat. Some animal rights activists have further argued that traditional livestock rearing has become inefficient as many of the animals live in crowded unsanitary conditions and are subjected to growth hormones and antibiotics which disrupt normal metabolic processes, and exacerbate antibiotic resistance in the face of rising zoonotic diseases. Further, the activists are not fans of the slaughtering process stating it involves using cruel and stress-inducing methods. In response to these and other concerns, Mogale Meat has developed a cruelty-free harvesting method that does not harm the animal and allows it to live a long and full life. “If one looks at the United Nations sustainable development goals, cultivated meat actually ticks most of those boxes. It is really of incredible benefit to people, to the environment and the animals. I would say it comes closest to a silver bullet,” Dr Paul excitedly stated. READYING PRODUCTION OF FIRST CULTIVATED GAME MEAT Being an early-stage research and development company, Mogale Meat is currently working on bench-top production. It released Africa’s first cell-cultured chicken breast earlier in the year to serve as a prototype for its entry in the global US$15m XPRIZE Feed the Next Billion competition. The invention earned it a place among the 31 semi-finalist and is the only entrant from the region, competing against big names from across the World. Despite Mogale Meat being a cultivated game meat company, it decided on chicken for the competition to the alternative fish, as this is not only the most popular meat in Africa but the most widely consumed worldwide. It is undertaking the project in collaboration with the Department of Biotechnology and Food Science, Tshwane University of Technology and the School of Life Sciences, University of KwaZulu-Natal. The company plans to reveal a signature FOODBUSINESSAFRICA.COM


wildlife meat product later in the year as it is continuing to develop cultivated meat from free-roaming livestock and wildlife. Even as Mogale Meat focuses on developing a vertically integrated cell cultivated meat technology platform, the company is cognizant of the fact that acceptability of the product is something consumers have to a little bit think around it. “Typically, as human beings, we love to adopt new technology. If we think of the Internet, if we think of our cell phones, we are very quick to adapt to that. But we are a little more conservative when it comes to food because what did our mothers make us? What did our fathers provide us with? So, it is a bit of a mind shift, but it seems like the younger generation are really a lot more interested in what's happening,” highlighted Dr Paul. To raise awareness of the innovative meat production process, Mogale Meat’s Business Development Manager Joalien Katerinic, highlighted that the company has set up a raft of strategies that will ensure consumers have an in-depth understanding and a clear picture of the novel concept. This includes undertaking consumer education by leveraging on in person modes and digital platforms to reach out to the masses in a creative way. With the company mainly specializing in game meat, it plans to avail its meat in highend restaurants as well as export markets. Its other approach, which entails feeding the masses in Africa, aims to breed transparency and convenience through establishment of containerized cultivated meat mini-plants, set up at the center of the communities. The company is currently awaiting delivery of two of the mini-plants that will enable them to showcase the actual production of cultivated meat in an offsite area. Once they arrive in South Africa this year, the meat processor will set the ball rolling on the unique modular plug-and-play production plant concept that will allow cultivated meat to be made in close proximity to the consumers. The mini-plants will be fed with cell-concentrates from the parent plant. “We feel that by having these containerized systems exactly where the people are, other than showcasing the production process, we can easily work out how much meat needs to be produced for the people within the surroundings. Through this we will be providing fresh meat on a regular basis and conveniently accessed by the consumers,” said Dr. Paul. FOODBUSINESSAFRICA.COM

REGULATION OF CELL-CULTURED MEAT GAINING MOMENTUM Although cultivated meat is real meat, it does require policies and regulatory approvals for production and commercialization. Currently there are no regulations or policies in South Africa and the region at large surrounding cellbased meat. However, Mogale Meat is optimistic that the relevant guidelines will come to play in the next 12-18 months. This may be facilitated following the soon-to-be enacted cultivated meat policies and regulations as determined by the Food and Drug Administration (FDA) / United States Department Agriculture (USDA) and the European Food Safety Authority (EFSA). Policy makers and regulatory bodies in Africa mostly look towards first world countries to set the tone in regards to these matters. In fact, Singapore is the only country to date to approve sale of lab grown meat. Other countries such as the Netherlands have only just received regulatory approval to sample cultivated meat products. “But what we have managed to do on our part is form an NPC known as MeatOurFuture in collaboration with the University of KwaZuluNatal and Tshwane University of Technology, to

KEY NUMBERS

2020

THE YEAR MOGALE MEAT COMMENCED OPERATIONS

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MY COMPANY PROFILE: MOGALE MEAT COMPANY

bridge the gap between the private and public sector and help develop the ecosystem for cultivated meat in South Africa going forward,” revealed Dr Paul. The partnership with the institutions of higher learning aims to increase research into cultivated meat and establishing a pipe-line of human resource development within this new industry. “It is very exciting because we are creating technical jobs which Africa needs going forward as production of lab-grown meat begs the expertise of bioengineers, biochemists, food scientists, among many others. It is a transdisciplinary effort,” said Dr Paul.

COUNTRY SOUTH AFICA

SECTOR CULTURED MEAT

WEBSITE www. mogalemeat.com

EMAIL paul@ mogalemeat.com

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MOGALE MEAT EXCITED TO BE AT THE FOREFRONT OF FOOD INNOVATION Mogale Meat is optimistic about the future growth of the cultured meat market as major global food companies continue reporting their investments in lab grown meat. “Since the first unveiling of a cell-based burger in 2013, scientists have been flocking to labs in a race to iron out numerous teething problems and be the first to make a commercially viable cell-based meat products. Meanwhile, private investment into the industry has soared. So, it shows you that they see the potential going forward,” says Dr Paul. Mogale meat is also confident of the fact that it is the only company in Africa focusing on cultivated game meat. The other two cultivated meat companies in Africa are working on beef and fish. “Unlike ordinary beef and chicken, game meat offers a full culinary range of unique flavors and textures. This niche market will allow us to not only supply cultivated game meat to South Africa, but also into Africa and the rest of the world,” he added. Cell-cultured meat also creates room for production of novel foods. Dr Paul jokingly highlighted that its use of cutting-edge technologies can enable unique combination, “I can for instance get a piece of eland, which is mixed with ostrich fat which is a much healthier fat.” PARTNERSHIPS INTO THE FUTURE Mogale Meat is readying to take advantage of the future growth and trends in the market by partnering with other interested parties whose mission align with its aim of providing affordable, healthy and nutritious cell-based meat products to a growing population, to the benefit of animals, people and the planet. So far, the company has collaborated with

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institutions of higher learning such as Tshwane University of Technology and University of KwaZulu-Natal to drive research in the field, and has received financial backing from investors such as Sustainable Food Ventures, Big Idea Ventures, and Cult Food Science. It plans to open the next round of funding by the end of 2022. The seed round of funding will allow Mogale Meat to transition from benchtop product to early pilot plant production in the next 1-2 years. “Over the past few years, more and more consumers have become aware of the impact their meat consumption is having on the environment. As such, there has been a massive movement in the food industry worldwide to pivot towards alternative proteins and sustainable meat products. Cultivated meat is the answer, it is a way for anyone, anywhere in the world to enjoy a piece of steak, a piece of real meat without harming the environment or any animal in the process,” stated Joalien. Also, the on-going research and development efforts by the different players in the space will enable innovation of technologies that will ensure efficient production of quality cultured meat FBA FOODBUSINESSAFRICA.COM


Dairy

BUSINESS

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

Lactose free dairy products emerge from specialist niche positioning to stake a claim in mainstream dairy aisle By Catherine Wanjiku

O

riginally, milk was designed to be food for infants. In adulthood, the lactase enzyme that is necessary for breaking down lactose, the main type of sugar found in milk, turns off — meaning most adults are lactose intolerant (or "lactase nonpersistent,"). Baby food or not, milk is deliciously satisfying and contains a variety of important

FOODBUSINESSAFRICA.COM

nutrients such as calcium and riboflavin, which are important for good health. We basically cannot not help ourselves and still continue drinking milk even in adulthood. However, 70% of the world’s adult population is not lucky enough to produce enough lactose. For the unlucky ones, just an hour of eating dairy foods like milk, cheese, or ice cream, is enough to cause some degree of digestive discomfort ranging from diarrhoea, painful gas, bloating, cramps, MAY/JUNE 2022 | FOOD BUSINESS AFRICA

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fungi, broke down a significant portion of the lactose in milk into simple sugars, glucose, and galactose. The research proved successful, as the majority of lactose intolerant people who consumed this modified milk were able to digest it with no problems. Kligerman used his newfound knowledge to launch the pioneer lactose free milk product under Lactaid brand in the early 1980s. At long last, those sensitive to the lactose in dairy had a delicious solution. Four decades later, lactose technology has advanced, allowing millions worldwide to have access to the once niche product. It’s also no longer just milk, lactose free products from yogurts to cheese to dried milk products can be found today in almost every supermarket. Kligerman’s Lactaid continues to be a worldwide success, operating as a unit of Johnson & Johnson’s McNeil Nutritionals division. The wide range of lower-lactose and lactose-free dairy products available in the market today ensure no consumer feels left out, allowing them to relish on the great taste and nutrition of real dairy products with ease.

and other stomach discomfort, making them grin from the thought of consuming dairy and its related products, despite of how much they might be craving them. During the Fi Europe 2021 event, Tuula Tuure, Senior Research Scientist at Valio, raised her concern pertaining to the avoidance of foods that cause discomfort in one’s body saying, “One trend in digestive health is to avoid compounds and foods that cause discomfort, the freefrom trend. However, one cornerstone of a healthy diet is variety. If we leave out a whole food group from our diets, it may lead to insufficient intake of some nutrients.” The European Food Safety Authority (EFSA) concurs with this as it advocates that the only satisfactory treatment of lactose intolerance is a diet with reduced lactose content and not complete avoidance. Alan E. Kligerman, a third-generation dairyman, could however not stand a life where a portion of the population is deprived of this super food. Kligerman teamed with chemist Virginia Harris Holsinger from U.S. Department of Agriculture’s Agricultural Research Service to create a solution for the lactose intolerance. Holsinger developed a process whereby lactase from non-human sources, namely 40

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THE TRICKS OF PRODUCING LACTOSE FREE MILK Since Kligerman’s ground-breaking technology, different technologies have been developed to produce high quality lactose free dairy products. Of the many that exist, two are commercially viable. The first is ultrafiltration which entails physical removal of lactose, resulting in milk with up to 50% less total sugar. The second process, which is widely and commonly used by most processors, is the use of lactase enzyme, which cleaves lactose into two component sugars i.e., glucose and galactose, resulting in sweeter milk. Innovative dairy companies sometimes use both processes to produce milk with less total sugar, as well as a sweetness level that is closer to traditional milk.

ONE CORNERSTONE OF A HEALTHY DIET IS VARIETY. IF WE LEAVE OUT A WHOLE FOOD GROUP FROM OUR DIET IT MAY LEAD TO INSUFFICIENT INTAKE OF SOME NUTRIENTS. Tuula Tuure, Senior Research Scientist at Valio

With the use of lactase going vogue, leading food ingredients manufacturer have bootstrapped their research and development efforts, to avail sustainable solutions that enable dairy processors produce the highly sought lactose free products. Finnish manufacturer of dairy products, FOODBUSINESSAFRICA.COM


Valio, boasts of having a wide range of lactose free technology under its patent Valio Eila milk powders. Meanwhile, its competitor Royal DSM has advanced its portfolio of Maxilact lactases with launch of Maxilact Super, that cuts hydrolysis time by 33% and enables dairy manufacturers to create high-quality, clean-tasting lactose-free and sugar-reduced dairy. In China, IFF introduced Nurica enzyme early last year, which not only breaks down the lactose content but also results in production of dietary fibers in the form of Galacto-Oligosaccharides (GOS).

from different brands exists in the market supported by a steady supply of solutions from dairy ingredients suppliers. According to Mintel, product launches with some type of a lactose claim added up to 6% of all dairy launches in 2009. A decade later, the share is already over 12%. Euromonitor International’s analysis has projected that the dairy category is expected to reach US$10.1 billion by 2022. The highest share of lactose free products tends to be in product categories where there is presence of established dairy alternatives i.e.,

YOGURT CATEGORY HAS ONE OF THE HIGHEST SHARE OF LACTOSE FREE PRODUCTS

Other producers of lactase enzymes in the market include Chr. Hansen, Novozymes, among many others. DAIRY BRANDS EXCITE CONSUMERS WITH WIDE ARRAY OF LACTOSEFREE PRODUCTS A wide array of lactose-free products FOODBUSINESSAFRICA.COM

milk and yoghurt. According to the market research, lactose free milk is projected to have a compound annual growth rate (CAGR) of 7.6% from 2017 to 2022 while lactose-free yogurt is forecasted to exhibit growth of 6.8% during the same period. Taking advantage of this growth

trend are players such as Kenya-based Bio Food Products and state-owned New Kenya Cooperative Creameries, who dominate the dairy isles of the

KEY NUMBERS

1980

THE YEAR LACTOSE-FREE DAIRY PRODUCTS WERE FIRST INTRODUCED TO THE US MARKET

East African nation with lactose free milk offerings. In West Africa, The Coca-Cola Company owned CHI Limited, launched Hollandia Lactose Free Easy to Digest Milk in Nigeria. Meanwhile, South Africa’s Lancewood satisfies the dairy cravings of its customers with its low fat, lactose free yoghurt coming in three flavours i.e., plain, strawberry and tropical fruit. The international scene is dotted with innovative launches from a raft of companies such as General Mills which extended the portfolio of its market-leading Yoplait yogurt brand with four Lactose-Free variants in early 2012, while Danone's market-leading Activia yogurt brand has now been extended with a lactose-free option in a number of European markets, including Germany and Scandinavia. Likewise, in New Zealand, the Anchor dairy brand has been extended to include two lactose-free alternatives under the Zero Lacto Blue and Zero Lacto Trim ranges. Other players in this space include Amul Dairy and Provilac from India, Italian Granarolo Group, New Zealand based Fonterra, Swiss multinational Nestle and CocaCola owned Fairlife brand, among others. While the majority of lactose free launches are in drink milk and yoghurt,

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DAIRY BUSINESS AFRICA: LACTOSE FREE DAIRY

components in milk, including lactose, are removed, thereby reducing the lactose content in it. Despite the two product categories being naturally low on lactose, Cultured foods brand Good Culture, recently rolled its first lactose-free line comprising of sour cream and cottage cheese made with five ingredients: milk, cream, sea salt, live and active cultures, and lactase enzyme.

other categories, such as cheese, ice cream and butter are also growing. Beckon Ice Cream from Boston is a newly launched brand that offers a lactose-free premium ice cream made from real milk and cream. It differentiates itself from the plethora of dairy-free alternatives in the freezer aisle by conveying to lactose-sensitive ice cream lovers that they can have real dairy ice cream. However, it is important to note that there are a number of dairy products that contain very little or no lactose,

CONSUMERS IN A DSM STUDY INDICATED THAT THEY WOULD INCREASE THEIR CONSUMPTION OF LACTOSEFREE PRODUCTS IF THEY WERE REDUCED IN FAT AND SUGAR.

LACTOSE FREE PRODUCTS NOT LIMITED TO DAIRY OFFERINGS The opportunities created by demand for lactose free products are not limited to dairy industry alone. Lactose free has potential to expand to all food categories which include milk as an ingredient such as chocolate and baked goods. According to Innova, about 1.2% of newly launched bakery products carry a lactose-free claim, and this has grown an average of 5% a year over the past five years. The world’s leading manufacturer of high-quality cocoa and chocolate products, Barry Callebaut, launched its first lactose-free milk chocolate in 2012. Prior to that, Brunberg Oy, Finland’s oldest confectionery factory, introduced a lactose free milk chocolate bar made with Valio Eila lactose free milk powder in 2007. The lactose-free dairy product launches have been a welcome treat to the lactose intolerant individuals. However, its attributes have also appealed to a broad swathe of consumers. In 2016, DSM undertook an international survey that revealed, 82% and 73% of consumers in China and Colombia respectively agree that lactose-free dairy

and these are generally well-tolerated by people that are intolerant to lactose. According to the National Library of Medicine, some cheeses naturally have low lactose levels due to the nature of their production. In Gouda cheese, for example, the production process includes a curd washing step to lower the lactose content. Such cheeses already have relatively low lactose content, even without ripening. In other cheeses, the lactose content is only lowered due to the action of lactic acid bacteria during ripening. This is mostly true for hard cheeses such as Parmesan, Cheddar or Swiss cheeses. Young/fresh cheeses may, however, still contain sufficient lactose to result in a reaction among lactose-intolerant people, depending on the amount that is consumed. Another dairy product that is low in lactose is butter. During butter production, most of the water-soluble 42

MAY/JUNE 2022 | FOOD BUSINESS AFRICA

FOODBUSINESSAFRICA.COM


Afmass FOOD EXPO

A SPECIAL PAVILLION AT:

Packaging AFRICA EXPO

The Future of Food in Africa

WWW.AFMASS.COM

Meet & Network with the leading manufacturers and distributors of food storage, processing, engineering and packaging technologies from across the World at the Packaging Africa Expo. Discover the latest market trends for your next project in Africa. Food Processing Equipment & Supplies • Packaging Equipment & Supplies • Packaging Materials • Engineering, Refrigeration & Cooling Technologies • Printing & Labelling Solutions • Quality Control & Food Safety Solutions • Food Storage & Serving Solutions • PLUS MANY MORE . . . .

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WWW.AFMASS.COM SARIT EXPO CENTRE, NAIROBI, MAY/JUNE KENYA 43 2022 | FOOD BUSINESS AFRICA


DAIRY BUSINESS AFRICA: LACTOSE FREE DAIRY

is healthier than regular dairy. Ann Williams, Director of Innovation at Innova Market Insights notes, “It is clear that the free-from sector is set for further growth, with interest continuing to spread from those diagnosed as specific allergies and intolerances, to the self-diagnosed and those with a more general interest in health and wellbeing. The on-going development of a greater range of products with a high-quality image and a good-taste profile is helping this along.” Consumers, in DSM study, also indicated that they would increase their consumption if lactose-free dairy was reduced in fat and sugar. Manufacturers have since responded to this clarion and have started releasing to market single products that align to several current food trends. For instance, in 2018, nearly half (45%) of all lactosefree UHT milk launches were mineral/vitamin fortified. One example is the new lactose-free reduced fat milk from H-E-B Organics which contains added vitamins A and D. It is sourced from cows raised on organic feed, with no artificial growth hormones or antibodies. In Africa, Chi Limited unveiled its Hollandia Zero Yoghurt last year with unique benefits of zero added sugar, zero artificial sweeteners & zero lactose. It is also a low-fat drinking yoghurt. NEED FOR CONSUMER PROTECTION FROM MISLEADING POSITIONING In a bid to quickly appeal to consumers, manufacturers support their lactose-free positioning with straightforward on-pack messaging, like calling out the ease of digestion, aimed at appealing to a broader segment of consumers, beyond just those with lactose intolerance. The FDA, however, does not define the terms “dairy free,” “milk

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free” or other “absence” claims, except for “gluten free.” It highlights that absence claims are voluntary statements used to provide information to consumers to facilitate the avoidance of a food ingredient or a food component because of food allergies, food intolerances, religious beliefs, or dietary practices such as vegetarianism or other non-nutrition related reasons. However, industry stakeholders are calling for provision of truthful claims and modes of proof. “There is a need for a simple, rapid, precise or accurate test method to detect lactose in finished products, as well as a rapid check during processing. Current methods to detect lactose are timeconsuming and require extensive sample preparation, highly trained personnel and sophisticated instruments,” said Sonia Patel, dairy food application scientist, Midwest Dairy Foods Research Center. Heeding to this call, Chr. Hansen in 2016 introduced LactoSens, a new lactose testing kit that enables processors determine the residual lactose level in low lactose and lactose-free dairy products in minutes and in an affordable way. Meanwhile, early last year, the Kenya Bureau of Standards (KEBS) approved new analytical test methods for measuring levels of lactose in milk and milk products being sold in the market. Improved testing and labelling, growing awareness of the problems associated with lactose intolerance and technical developments are allowing for the production of better-tasting products. The sector is now trying to emerge from its specialist niche positioning to increase its appeal to a wider audience in the mass market and there is every indication that it is clearly succeeding FBA

FOODBUSINESSAFRICA.COM


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

COVID-19 Trends: Beverage makers align new product developments with shifting consumer tastes and preferences By Madeleine Orina

T

he Covid 19 pandemic has had the undeniable effect of changing consumer preferences and consumption patterns. More than four out of five consumers say the coronavirus pandemic has changed their food habits, driving them to cook, eat, shop and think about food differently, according to the annual Food & Health Survey FOODBUSINESSAFRICA.COM

from the International Food Information Council. This shift in consumer behavior inevitably influenced new product innovation strategies as manufacturers made attempts to align their products with the new consumer tastes and preferences. In light of this, many new trends in beverage innovation have cropped up and many that were already underway have been accelerated by the impact of MAY/JUNE 2022 | FOOD BUSINESS AFRICA

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BEVERAGE TECH AFRICA: TRENDS IN BEVERAGE INNOVATION

the pandemic. RTD BEVERAGE INNOVATE WITH HEALTHY INGREDIENTS As the COVID health crisis forced consumers to view issues regarding their physical and mental wellbeing in a new light, they began looking for beverages that are indulgent, but also have an edge for supporting health functions such as energy, stress reduction and beauty. Manufacturers responded by unveiling new RTD beverages with more natural products. Fermented drinks, teas, lower sugar beverages and fortified drinks with health benefit claims, suddenly became trendier. Andrew Ohmes, global product line manager for high intensity sweeteners at Cargill, notes that while consumers are less engaged with sugar-sweetened beverages they are also looking to avoid artificial sweeteners. “That’s why zero-calorie sweeteners like stevia continue to make significant gains,” he says. “Even amid the pandemic, we

their product offerings, fruit flavors continue to remain in the highest favor with consumers. Fruits and vegetables ingredients firm SVZ report that this demand for functional ingredients is greatly influencing its business. “As a fruit and vegetable ingredient supplier, we have seen a pronounced increase in demand for functional, healthy ingredients that can elevate a tasty drink to one that also offers consumers protection for their physical and mental health,” said Johan Cerstiaens, Commercial Director, SVZ.

GROWING A WHOOPING 130% IN 2020 ALONE, HARD SELTZERS HAVE QUICKLY BECOME ONE OF THE FASTEST SELLING RTD BEVERAGES IN STORES AND EVEN THOUGH THE TRIPLE DIGIT GROWTH ISN'T SUSTAINABLE, THE DRINKS HAVE PROVED TO BE MORE THAN JUST A FAD. As immunity-supporting beverages saw an expected boom, processors such as Kallo foods Ltd with its whole Earth Food’s full range of sparkling soft drinks greatly benefited from the largely retail consumer base for healthier beverages. In October 2021, Kenya-based juice and sauce manufacturer Premier Foods, inspired by homemade 'dawa', a herbal drink Kenyans enjoy to treat common flu, debuted a new beverage dubbed Recharge Dawa, eyeing an increasingly health conscious consumer. Throughout the pandemic period, drinks such as Recharge Dawa became popular among consumers. As a result, much of the healthy drinks market has seen extended growth since the start of the COVID-19 pandemic. Allied Market Research valued the global immunity boosting food market size at US$21.67 billion in 2020, and projected it to reach US$46.94 billion by 2030, registering a CAGR of 8.2% from 2021 to 2030.

continued to see strong growth in 2020.” Ohmes citing Innova Market Insights data noted that product launches containing stevia reached more than 7,400 new food and beverages globally - up 8.7% over the previous year. However, experts note that while beverage manufacturers are utilizing healthier traditional and emerging flavors in 46

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HARD SELTZERS BECOME A MARKET SENSATION The rising preference for low-calorie and low-sugar alternatives has also become a prevalent trend in alcoholic drinks, particularly among millennials and the younger generation. At the helm of this trend are hard seltzers, a blend of carbonated water, alcohol, and fruit flavoring, most often packaged in cans for portability. Already experiencing success across America led by the brands White Claw FOODBUSINESSAFRICA.COM


and Truly, they catapulted into astronomical levels of expansion during the COVID-19 pandemic. The hard seltzer fever also spread to South Africa, taking the market by storm in 2021. In the first quarter of 2021, Distell relaunched Vawter – a range of soda water spirit coolers made with vodka and infused natural fruit flavours. Following closely to Vawter’s launch was Freely, “a proudly South African sparkling water with a splash of premium distilled vodka and pure fruit taste.” Skinny Seltzers, made with premium vodka, real lime, and soda, came to market while South African Breweries made hard seltzer Flying Fish finally got the attention of consumers. Growing a whopping 130% in 2020 alone, they quickly become one of the fastest-selling RTD beverages in stores. Hard seltzers are still growing at a significantly greater rate than most other alcohol categories in the U.S. According to a new report by Grand FOODBUSINESSAFRICA.COM

View Research, Inc, the global hard seltzer market size was valued at US$ 8.95 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 22.9% from 2022 to 2030. Even though the triple-digit growth seen in 2020 isn’t sustainable long-term, the hard seltzer category has established itself to be more than just a passing fad and is clearly here to stay. A TASTE FOR THE EXOTIC The COVID-19 pandemic also saw demand for certain formats and essence of flavor profiles go beyond their functional attributes. Exotic, tropical and unique fruit flavors and botanicals began trending as consumers sought new and novel experiences through the food and beverages they consume. “As these consumers stay close to home to avoid contracting COVID-19, exploring new regions and cultures via ‘food tourism’ will lead to an elevated

interest in exotic cuisines and flavors,” says Coralie Garcia Perrin, global strategic marketing director for Sweet Taste at taste and nutrition firm, Kerry. Beverages are a natural vehicle for these flavors and therefore took lead in the exotic flavors trend. Guava is emerging, driven by the popularity of passion fruit orange guava (POG) flavor combinations across many beverage categories. UK based Skylark spirits has tapped into this trend with their Arrange Pink Guava rum. They found a novel way to introduce the Guadeloupean ingredient- Guava- to the drink, which is hand cut and hand bottled. According to the company this kind of craft spirit with actual fruit in the bottle is new to the UK. Drilling down to plant-based trends in the beverage sector, Björn Hermann, product manager at Doehler GmbH (Darmstadt, Germany), notes natural flavors such as hemp, hops, or tea, which offer a flavor and naturalness that consumers gravitate to, are also becoming increasingly popular. Overall, exotic and natural flavors experienced a boom during the

KEY NUMBERS

US$

8.95

ESTIMATED VALUE OF THE GLOBAL HARD SELTZER MARKET IN 2021 pandemic and are expected to stick in the near future. The global beverage flavoring market analysis by Future Market Insights shows that global consumption of beverage flavoring systems enjoyed a year-on-year (YOY) growth of 5.2% in 2021 to total sales of US$ 4.5 billion and is estimated to reach US$ 7.8 bn in 2032 at a CAGR of 5.7%. In the segment, natural flavors

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BEVERAGE TECH AFRICA: TRENDS IN BEVERAGE INNOVATION

which plays neatly into Diageo's and other premium spirit manufactures’ strategy— chances are that this trend will continue even as inflation nudges 10 per cent and everyday basics soar in price. This is supported by IWSR’s Global Trends 2020 report which forecast premium-and-above spirits to increase their global market share to 13% by 2024. ACCELERATION OF ALCOHOL E-COMMERCE As the pandemic ravaged the global economy, restrictions on movement and growing safety concerns among the public left companies unable to rely on physical visits to retail and on-trade venues to drive sales. Many consumers flocked online to buy their essential items birthing a “defining moment” for e-commerce and direct to consumer provision. "The most significant difference in e-commerce for 2020 was simply the increase of consumer awareness of the ability to purchase alcohol online," said Cory Rellas, CEO of Drizly, North America's largest e-commerce alcohol marketplace. are projected to witness gains at over 6.1% CAGR from 2022 to 2032. SOPHISTICATION AND PREMIUMIZATION OF ALCOHOLIC DRINKS Sophistication and premiumization were key trends in the spirits sector as consumers took to crafting their own cocktails at home and trading up to higher end spirits, with tequila, vodka and liqueurs leading in sales in 2020. Responding to this demand, Diageo, the world’s largest distiller, has moved determinedly upmarket in recent years, focusing on premium products such as Johnnie Walker

THE MOST SIGNIFICANT DIFFERENCE IN E-COMMERCE FOR 2020 WAS SIMPLY THE INCREASE OF CONSUMER AWARENESS OF THE ABILITY TO PURCHASE ALCOHOL ONLINE. Cory Rellas, CEO of Drizly

Black Label, Don Julio tequila and Tanqueray gin. The approach has delivered impressive results with growth in its high-end alcohol brands making up more than half of net sales. In the six months to December 31 2021 alone, its tequila sales surged by 56 per cent, Scotch rose 27 per cent and gin was 21 per cent ahead. As consumers continue to favor quality over quantity— 48

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True enough, many e-commerce channels continue to grow at unprecedented rates and according to new research by IWSR Drinks Market Analysis, this change is here to stay. With a quarter of global drinkers now ordering online, beverage alcohol e-commerce sales are expected to reach more than US $42 billion across key markets by 2025, representing a growth of 66%. As a result, post COVID, Consumers who have been introduced to the accessibility and convenience of buying alcohol online will likely continue to visit online retailers as regular beverage sources. Suppliers and distributors have also begun to embrace online sales due to the shift in consumer purchasing behavior. All this points to the fact that having an optimized e-commerce platform will be essential for businesses in the future FBA FOODBUSINESSAFRICA.COM


FOCUS

Demand for processed foods creates new growth opportunities for Ghana’s food industry A rapidly growing urban population and an expanding middle class is driving demand for processed foods in Ghana. Although these presents new opportunities for the food industry, the sector must overcome existing obstacles if it is to fully exploit the opportunities that abound. By Paul Ongeto

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hana’s food industry is one characterized by immense potential for growth. Demand for processed food in the West African country is at an all time high driven by a highly urbanized population and a large and expanding middle class. Already at 54 percent, Ghana’s urban population is significantly more than most of sub-Saharan Africa, where urbanization

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averages at 37 percent. The African Development Bank (AfDB) estimates that Ghana’s urban population is expected to increase at 3.1% per annum in the coming years, creating further demand for processed foods. What’s more, 20% of Ghana’s 31 million people fall within the middle-income bracket, according to AfDB estimates. With high incomes, these Ghanaians are seeking greater dietary diversity putting further stress on the food industry to deliver an MAY/JUNE 2022 | FOOD BUSINESS AFRICA

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THE US$600M WALEWALE WATERMEOLON FACTORY AT COMMISSIONING.

extensive variety of high-quality processed food products. Despite the growing demand from consumers, Ghana’s food processing sector remains largely underdeveloped. Although one would find a retail shop stocked with vast variety of processed foods, only a small percentage of the food consumed in Ghana are processed locally. As of 2017, a mere 200 agro processing firms had registered and received certification to operate by the Ghana’s Food and Drugs Authority. To bridge the gap, Ghana has been forced to turn to imports. The country’s food imports are mainly comprised of consumer-oriented commodities such as rice, wheat, and soybean meal. Ghana is also importing a sizeable portion of processed food products including beer, chocolates, pork, and beef. Wine and related products; food preparations; seafood products; non-alcoholic beverages; fruit and vegetable juices; and essential oils also make up the extensive list of Ghana’s imported products. Ascension of Nana Akufo-Addo to the Ghana’s presidency in 2017 spelled a new dawn for the country’s fledgling food industry. “The Ghana that I am seeking ... is a Ghana Beyond Aid. A Ghana that will free herself from the mindset of handouts. A Ghana mobilizing her own resources to solve her own problems.” With those words, the newly elected President galvanized a nation to begin the journey to self-reliance. Through policies such as “Planting Food for Jobs” and “One District, One Factory”, the Akufo-Addo led government sought to rejuvenate the agro-processing sector to meet the demand for processed product while at the same time expanding produce markets for farmers, increase and create employment particularly for the country’s youth. In this article, we review the progress that the agro-processing industry in Ghana has made under the Akufo-Addo led government and opportunities that exist for the sector in the years to come. 50

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ONE DISTRICT ONE FACTORY INITIATIVE REIGNITES FOOD PROCESSING The One District One Factory (1D1F), launched by President Akufo-Addo, reignited food processing in Ghana, expanding them inlands from the port towns of Accra and Tema where they were concentrated into the rural districts where agricultural produce was in abundance. Under 1D1F, the government gives companies various incentives to help them start operations. Exemption from corporate taxes for 5 years and waiver of import taxes with regards to raw materials and machinery for production are some of the benefits that 1D1F companies enjoy. The state also attracted the interest of Ten local banks which committed a total of US$915.03 million to fund the one district one factory (1D1F) programme. Interested companies could thus approach the banks for low interest loans and were also eligible for subsidy on the interest on loans taken to fund projects under the 1D1F. The policy, being private sector-led, took off with much success, stimulating the construction of up to 28 new factories and the revival of about 48 others which had previously closed down. As of December 2021, a total of 106

THE GHANA THAT I AM SEEKING... IS A GHANA BEYOND AID. A GHANA THAT WILL FREE HERSELF FROM THE MINDSET OF HANDOUTS. A GHANA MOBILIZING HER OWN RESOURCES TO SOLVE HER OWN PROBLEMS. Nana Akufo-Addo, President of the Republic of Ghana

out of 278 factories, incorporated under the One District, One Factory (ID1F), had been fully completed, according to Ghana’s Deputy Minister of Trade and Industry, Michael Okyere Baafi. More than half these factories are in the food processing sector and include the US$25 million Kasapreko Water, Juice and Soft Drinks Factory at Kwadaso, in the Ashanti Region and the US$15 million Ekumfi Fruits & Juice at Ekumfi Abor district in the Central Region of Ghana. BOOSTING CASSAVA, GHANA’S MOST IMPORTANT CROP Of all the food value chains, Cassava was among the biggest beneficiaries of the 1D1F project, and rightly so, as it is an important starchy staple crop in Ghana with per capita FOODBUSINESSAFRICA.COM


consumption of 152.9 kg/year. The crop is also a regular source of income for most rural dwellers and contributes substantially (22 percent) to the Agricultural Gross Domestic Product. To support the sector’s growth, a number of cassava processing factories have since been opened including the US$1.65 million CH Global Limited factory in Krachi East District of Oti Region and the Keta Municipality Cassava processing factory. Other development partners namely the European Union and the Stanbic Bank have also joined in the efforts to expand value addition in this sector. In 2021, the EU funded a new Gari processing factory in Bono in which farmers can process cassava tubers into Gari flour. A few months later, Stanbic Bank working with its partners within the Agribusiness sector facilitated a US$5.8 million funding for the construction of a cassava/starch processing factory in Jomoro in the Western Region of Ghana. Still potential exits for further development in the sector. Out of the 8.5 million metric tonnes (MMT) that Ghana produces for human consumption, a surplus of about 4. 89MMT exists which could be used to produce industrial starch or ethanol. A US$34 million starch processing factory at Amantin, in Bono East Region has already started production to meet local demand of Cassava starch. Investment in ethanol manufacturing could particularly take off as cassava starch has a competitive advantage for ethanol production than other materials. Local supply is also low, and Ghana is forced to import over 60 million litres of ethanol every year to meet this gap. Kasapreko, a major consumer of ethanol, has already set an example on the possibility of local manufacturing, injecting US$7.5 million

CASSAVA IS THE MOST IMPORTANT STAPLE CROP IN GHANA

in 2014 to set up a facility to produce ethanol from cassava. Beyond Ghana, there is a great opportunity for exports to enhance foreign exchange revenue and improve farmers’ FOODBUSINESSAFRICA.COM

livelihood through improved income. According to Fortune Business Insights, the global cassava starch market Size was valued at US$40.53 billion in 2018 and is projected to reach US$66.84 billion by 2026, exhibiting a CAGR of 6.50% during the forecast period. BEVERAGE SECTOR EXPANDS UNDER 1D1F The other sector greatly benefiting from the 1D1F is beverage. Five of the most notable 1D1F investment were in the beverage sector mainly because of an abundance in fruits and the country’s demand for fruit juices. A report by Millennium Cities Initiative estimates that over 10.4 million litres of fruit juice is consumed yearly in Ghana. Unfortunately, 62 per cent of juice consumed in Ghana in 2017 was imported at estimated value of US$150 million; whereas domestically manufactured fruit was valued at US$40 million, representing 28 per cent of total consumption (IFPRI, 2020). The establishment of Kasapreko beverage factory, Ekumfi Fruit Juice, the Walewale watermelon factory, and the revival of the collapsed Nano Foods pineapple juice factory are all aimed at tapping into local demand for juices. GIHOC Distilleries Company Limited, the Ghanaian state-owned manufacturer of distilled and alcoholic beverage brands, has also outlined plans to set up five fruit-based alcohol plants known as Standardisation Depots under the One District-One Factory (1D1F) initiative. These factories are expected to be off takers of excess fruit for use in manufacturing alcoholic drinks. POULTRY PROCESSING HANDED A LIFELINE Poultry also needed a boost as Ghana is heavily reliant on imports to meet demand for poultry products. In fact, with a total import bill of US$254 million in 2020, the country is the 3rd and 24th largest import of poultry meat in Africa and the world respectively, according to data from OEC. Poultry World estimates that 90% of chicken meat consumed in Ghana is imported, mostly from the Netherlands, Poland, MAY/JUNE 2022 | FOOD BUSINESS AFRICA

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the US, Belgium and Brazil. To increase local supply, Darko Farms, one of the country’s largest poultry farms, received support under the 1D1F to restart operations. Darko Farms currently has a processing plant operating at 10,000 birds per day with one shift, and 20,000 birds per day with two shifts. Additionally, the company has a hatchery with capacity to produce 6-million-day-old chicks a year, breeder farms with a bird population of about 30,000 per batch, a layer farm with capacity of 100,000 per batch, and commercial broiler farms with capacity of 350,000 birds per cycle of 8 weeks. Still Ghana is far from meeting its local demand for poultry products. According to a report by the USDA, Ghana is forecasted to import 400,000 mt of chicken in 2022, which represents growth of about 14% over 2021. LOCALIZING PRODUCTION OF TOMATO PASTE, GHANA’S FAVORITE CONDIMENT Tomato is an indispensable part of Ghanaian cuisine, and it is heavily consumed in the processed form as tomato paste. Local production of tomatoes is insufficient to meet demand, so the country mainly relies on imports. In 2019, its imports of tomato paste accounted for 13 per cent of total African imports of this product, with only regional giant Nigeria importing more. From 2017, Ghana has however been making considerable steps to boost local production. Under 1D1F, the government has supported the establishment of US$16 million tomato processing factory in Domfete, Bono Region. The factory propriated by Weddi Africa Limited, a wholly owned Ghanaian company, has

a processing capacity of 40,000 metric tonnes (MT) of fresh tomatoes per annum. A 2,400-acre nucleus farm has also been set up by Weddi Africa, with the company also spearheading the establishment of a Tomato Outgrower Farmers Association boasting of over 2,000 registered farmers from Ahafo and Bono regions. Another US$23 million tomato processing factory was commissioned in 52

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THE 1DISTRICT 1FACTORY POLICY HAS SO FAR STIMULATED THE CONSTRUCTION OF UP TO 28 NEW FACTORIES AND THE REVIVAL OF 48 OTHERS WHICH HAD PREVIOUSLY CLOSED DOWN. 2020 at Afienya in the Shia Osu-doku Constituency of the Greater Accra Region. The factory has an estimated annual output of 54,000 metric tonnes of tomato paste. With a combined capacity of 94,000 MT of tomato paste, the two factories, running at full capacity, have the potential to fully replace imports which were estimated at 75,000 MT in 2019. PROCESSING OF RICE, OTHER GRAINS GROW UNDER 1D1F 1D1F also gave a particular boost to rice processing in the country as demand far outstripped supply. In 2020 alone, Ghana imported rice worth US$391 million, becoming the 20th largest importer of Rice in the world. That year, Rice was also the 3rd most imported product in the country. Ghana under Akufo-Addo has however made strides in increasing local capacity. In 2020, the government announced plans to set up a rice processing factory in Kassena-Nankana Municipal. That same year, Ghana inaugurated a rice processing center with processing capacity of 140 bags of rice per day in the Adansi-South District of the Ashanti Region. A year later, the US$1.1 million Sefwi Akontombra rice processing factory with the capacity to produce between 1.5 and 2.8 tonnes of processed rice per hour was opened in the Western-North Region. Even with increased local production, demand remains robust and is projected to rise to 1.66 million tonnes in 2023 from 456,000 tonnes in 2018. When it comes to maize, the country’s most important staple, local production is robust and is generally able to meet demand. Small quantities of processed corn still find their way into the country mainly from Belgium. To further support the well-established sector, Ghana in 2020, supported the construction of a new US$4 million maize processing factory in Ashanti region. The farmer-owned facility was mainly aimed at increasing competition in the market and helping farmers derive maximum benefits from their produce. To further support grain value addition, Premium Foods Limited, in 2021, inaugurated a new stateof-the-art manufacturing facility with capacity to blend over FOODBUSINESSAFRICA.COM


96,000 metric tonnes annually of maize, soybean, sorghum and millet. EXPANDING AGRICULTURAL PRODUCTION TO SUPPORT A ROBUST FOOD PROCESSING INDUSTRY A robust food processing industry can only thrive if it has a steady supply of high quality raw materials. According to a 2016 report by the International Food Policy Research Institute, past attempts by Ghana to localize food processing failed because the agricultural sector did not have high productivity levels required to feed agro-processing firms with adequate and reliable supplies of raw material. Not ready to repeat the same mistakes, the Akufo-Addo led government introduced the “Planting food for Jobs” policy in 2017 to support the already ambitious 1D1F strategy. The initiative aimed at increasing agricultural output though provision of subsidized fertilizer, quality seeds,

culminating in 2020, PFJ achieved several milestones. The program was able to attract 1.74 million farmers out of an estimated 2.6 million agricultural households and by doing so, was able to significantly raise output. PFJ also improved yields, to the joy of farmers,as they could now get more produce from the same size of land. According to Minister-designate for Food and Agriculture, Dr Owusu Afriyie Akoto, maize yields had increased by 67 per cent from 1.8 tonnes per hectare to three tonnes per hectare. He further revealed that rice yields had also increased by 48 per cent from 2.7 tonnes per hectare to four tonnes per hectare, while soya yields had increased by 150 per cent from one tonne per hectare to 2.5 tonnes per hectare. The remaining PFJ crops also recorded some significant gains. This includes groundnut (9.4 percent) and cassava (7.5 percent), which were added to PFJ in 2018, as well as cowpea (6.2 percent), yam (5.6

CHOCOLATE PACKING SECTION OF FAIR AFRIC CHOCOLATE FACTORY IN GHANA'S EASTERN REGION

and other support including extension and marketing services. Initial focus was on seven value chains; rice, maize, sorghum, select vegetables, soya bean, groundnut and cassava but in 2018 and 2019 groundnut, cowpea, various root crops, and several additional vegetable crops were added. During the 5-year period FOODBUSINESSAFRICA.COM

percent), and plantain (6.9 percent), which were added in 2019. Vegetables also reported some modest growth. Tomatoes grew 3.8 percent, onions 2.8 percent, and chilies 3.2 percent per annum. As earlier noted, Ghana was a major importer of poultry products. Under the 1D1F, the government was able to attract investments in the

KEY NUMBERS

US$ 915M

AMOUNT LOCAL BANKS HAVE COMMITTED TOWARDS SUPPORTING 1D1F PROJECTS

processing sector, but the industries needed a steady supply of live birds. To achieve this, in 2019 the government launched the Rearing for Food and Jobs (RFJ) initiative under the theme ‘Self-Sufficiency in Meat Production – a Must’, aimed at modernising and transforming the livestock industry by increasing rearing of poultry, cattle, sheep, and goats. For this initiative, Ghana’s government has placed a strong focus on poultry and has, through the Agricultural Development Bank Ghana, announced a US$87 million loan facility with an interest of below 10% in support of the “Broiler Revitalization Programme’ which aims to increase domestic production of chicken with an interest rate of below 10%. Furthermore, the initiative will benefit from a 40% subsidy from the government to attract farmers into the broiler production sub-sector. The Ministry of Food and Agriculture will subsidise the cost of 1,000 – 2,000-day-old chicks, vaccines, and feed for the first 2 weeks of production by 50%. In total, 247,480 mt is expected to be produced within 5 years. This would sufficiently service existing processing capacity and significantly reduce the country’s reliance on imports. MAXIMIZING BENEFITS FROM COCOA Cocoa is Ghana’s agricultural cash cow. Cocoa export accounts for about 25% of foreign exchange earnings and it is the most important source of income for an estimated 800,000

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smallholder farmers who produce more than 90% of the cocoa in the region, according to a report by World Agroforestry. Despite the crop being important to the country’s economy, it is estimated that 80% of production is exported raw, according to data from Ghana Cocoa Board (COCOBOD). To maximize revenue from its cocoa, the country in 2019 gave itself a target of locally processing 50 per cent of all the cocoa it produces. That same year, the government partnered with China to establish a US$60 million factory with a capacity to process 450,000 tonnes every year. The initiative to localize cocoa processing stimulated investments from major cocoa processing companies. Cargill in 2019 announced a US$13 million investment in the expansion of its cocoa processing site in Tema, Ghana to increase production capacity by 20%. Cargill has also committed US$3.4 million to Ghanaian community sustainability programs and cocoa traceability efforts in Ghana. To further bolster local processing, Swiss-Ghanaian start-up Koa secured US$4.7 million equity financing for a new production plant in Akim Achiase, in the Eastern Region of Ghana. The factory, Koa’s second, is expected to start operations by end of 2022. The Landscape Resilience Fund (LRF) and IDH Farmfit Fund also announced a US$3.5

million investment in Koa. The funding is to help Koa to set up a new processing facility in Ghana, increasing production capacity more than tenfold by 2024 and creating additional income for up to 10,000 cocoa farmers. Koa joins FairAfric Ghana which was founded in 2020 to produce high quality chocolates for both local and exports markets. The company exported 2 million bars of chocolate during its first year of operation, greatly raising Ghana’s profile as a chocolate exporting country. To ensure steady supply of cocoa to the new and existing processing factories, COCOBOD secured a US$100 million loan from the Japan International Cooperation Agency (JICA). JICA’s loan will be used for the replanting of cocoa trees, which is difficult for cocoa farmers to undertake 54

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due to budgetary constraints. It will also be used to develop warehouses necessary for distribution. To further support the cocoa value chain, COCOBOD entered into an agreement with Bühler to build Ghana’s local cocoa processing and value addition capacity through training, product development and technology guidance. With the chocolate confectionery market predicted to grow to US$1.12 trillion in 2027, Ghana’s efforts at localizing processing of the market’s main ingredient will certainly help it to bring more revenues back home. A SECTOR ON THE RISE Before 2017, Ghana’s food processing industry was underdeveloped and unable to meet existing demand for processed food. Millions of precious dollars were spent on food imports that could be processed locally. Seeking to close this gap, President Nana Akufo-Addo introduced a number of initiatives including 1D1F with an aim to increase local food processing capacity to meet local demand, create jobs, and reduce reliance on imports. So far, the results have been phenomenal. The country’s agricultural output is once again on the rise and food companies are cropping in almost every agriculturally productive region of Ghana. Deputy Minister of Trade and Industry, Michael Okyere Baafi notes that the 106 factories that have so far come online have created a staggering 150,000 direct and indirect jobs for the unemployed youth. Food imports have also started to decline. According to data from the International Trade Administration of the US Department of Commerce, Ghana’s food imports declined from US$2.144 billion in 2017 to US$1.896 billion in 2021. Additionally, import of intermediate agricultural products fell from US$660 million in 2017 to US$429 million in 2020 while imports of finished consumer goods plunged from US$934.58 million to US$840 million. More from Ghana’s food industry is expected to come as government shifts focus to the remaining 124 untapped districts across the country. The initiative has really sparked interest in Ghana’s manufacturing industry and new applications still coming in for those districts which have already been captured, according to Mr. Addo. Head of 1D1F at the Ministry of Trade and Industry, Kofi Addo, strategy and action plans for about 24 pipeline projects have already been completed awaiting funds for construction to begin. Given that Ghana still imports a substantial amount of its food, opportunity still exists for further investment in food processing. Additionally, the country’s expanding middle class, liberal policies such as the 1D1F and a remarkable record of political stability will continue to attract more investment into the country’s food industry in the years to come. Ghana may still be a food deficit country 60 years after independence, but progress under current policies give hope that self-sufficiency in food production may be achieved sooner that 2057 when the country will be celebrating 100 years of self-rule FBA FOODBUSINESSAFRICA.COM


FOOD

INGREDIENTS NEW TECHNOLOGIES AND MARKET TRENDS IN THE FORMULATION OF FOOD & BEVERAGE PRODUCTS

Making bold statement with food colors The first few seconds after a buyer sees a product is a moment of truth; as it can be love at first sight convincing the buyer to add it to their basket or make them trudge forward in search of an alternative that is more appealing. By Catherine Wanjiku

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olor is a major part of a buyer’s decisionmaking process, and not just because it’s visually stimulating, it can also tease anticipated flavours or give impression about the freshness or quality of a product. Food colouring is therefore a very important tool for food producers as it acts both as a quality control sign and as a marketing tool to create temptation for the consumer. According to a study by Emerald Insights, 90% of shoppers decide whether or not to buy a product solely

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based on color and perceived taste. “We ‘eat with our eyes’ and if it looks good, we expect it to taste good and do us good. Each color has its own set of associations and meanings depending on the context, and small variations can make all the difference in how something is perceived,” says Nathalie Pauleau, global product manager for natural colors at Givaudan. Originally, food colors were used to correct loss, variations or enhance colors in food products. The rise in food processing coupled with consumer preference MAY/JUNE 2022 | FOOD BUSINESS AFRICA

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for packaged foods, boosted adoption of food colors to connote the perceived flavour offering in the wide array of offering. For instance, off-white in ice cream was linked to vanilla flavour while bright red or pink color in

WHILE ARTIFICIAL COLORS HAVE BEEN PREFERRED BY FORMULATORS FOR A LONG TIME, GROWING CUSTOMER COMMITMENT TO HEALTH AND WELLNESS IS ENCOURAGING DEVELOPMENT OF NATURAL COLOURS. cordials showcased strawberry flavour. With research and development efforts taking wings in the food industry, use of food color has also metamorphosised to not only enhance color, show case flavour but link to consumer’s metal concepts dictated by experiences, environment, and cultures. For instance, yellow is often associated with positivity and reassurance and, when used alongside ingredients like citrus and turmeric, it can have positive associations with energy, good digestion and benefits for inflammation. “Color can send out any number of messages

about brands and products. It might signal a moment of blissful escapism, tell stories about origins and process, showcase powerful ingredients, or help to highlight healthy formulations,” remarks Jill Janssen, market development specialist. Color trends are ever-changing, and as the industry matures there is a move beyond simply using color for enhancement or denotation of flavour, to use of targeted and customized approach as the world becomes more diverse and more inclusive. This has inspired the industry to innovate toward more visually appealing products with a variety of meanings across different cultures, situations and product categories including meat, dairy, baked goods, confectionery, beverages, oils & fats, among many others. The burgeoning growth has made the food color market a multi-billion-dollar sector with Markets and Markets highlighting it was valued at US$ 4.287 billion in 2021. It is projected to reach US$5.386 billion by 2026, recording a CAGR of 4.7% during the forecast period. NOT TRADING HEALTHY FOR PRETTY Food colors are broadly classified into artificial colors which are synthetically produced, natural colors made from natural raw materials, and coloring foods which are minimally processed and e-number free. While artificial or synthetic pigments have been preferred by formulators for a long time due to their vibrant coloring, shelf stability, wide variety, ease of application, availability and affordability, growing customers’ commitment to health and wellness, is encouraging developments of the natural colors category, phasing out the former. According to an online consumer survey conducted

THE BAN OF TITANIUM DIOXIDE IN EU HAS FORCED CHOCOLATE MANUFACTURERS TO SEEK ALTERNATIVE WHITENERS

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from 2015 to 2020 by Sensient Technologies, the percentage of the general populace concerned about artificial colors was 46% in 2020, a 12% increase from 2015. This trend, according to a report featured on Institute of Food Science Technology, has been triggered by publications such as the Southampton study in 2007, which established a correlation between synthetic food colorants and hyperactivity in children. Additionally, the California Office of Environmental Health Hazard Assessment also undertook a health effects assessment concluding that synthetic food dyes can have adverse neurobehavioral effects on children. As a consequence of these scientific findings, the demand for natural colorants has skyrocketed. Further to that, the recent ruling that titanium dioxide was no longer permitted for use in food and beverages in the European Union, initiated a paradigm shift within the food industry from synthetic colors to natural colors. In 2021, IMARC group valued the global natural food colors at US$1.8 billion. It expects the market to reach US$2.5 billion by 2027, exhibiting a CAGR of FOODBUSINESSAFRICA.COM

6.38% during 2022-2027. Natural food colors are sourced from vegetables, fruits, plants,

KEY NUMBERS

US$ 4.29B ESTIMATED VALUE OF THE GLOBAL FOOD COLORS MARKET IN 2021 minerals, and other edible natural sources. For yellow and orange tones, there are carrots, pumpkins, paprika, achiote African sorghum and Thai starfruit; for festive pink shades, there are sweet potatoes; while dazzling purple shades are derived from purple carrots and berries. Stimulating greens and cool blues are derived from spirulina, and for shades of red there are black carrots, beets, rubired grapes, ancient grain amaranth, sweet potato and South American shrub

achiote. With the widening pool of raw materials, global food and beverage launches with natural food colors rose by 15.2% in CAGR from 2012 to 2016. To meet the growing demand, leading manufacturers have been beefing up their capacities through mergers and acquisitions of industry peers. In 2018, USA based Sensient Technologies acquired Peruvian GlobeNatural. Oterra, formerly known as Chr. Hansen Natural Colors acquired Secna Natural Ingredients Group and Symrise’s Diana Food’s coloring business in 2021 under its new owner, private equity firm EQT. In the same year, Givaudan completed the acquisition of DDW, the color house, becoming the number two global player in natural colors. MORE ROOM FOR INNOVATIVE NATURAL FOOD COLORS Despite the rise in use of natural food colors, the colors based on agronomy selection can take years to bring to market, are highly unstable in their native state and can easily be altered by factors such as chemical structure, temperature, light, oxygen and pH.

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However, each type of natural color, depending on its original source, will react differently to different environments. In the style of Roman Goddess Cardea, seeking new ways and walking through new doors, Sensient’ s Cardea range was developed to unlock nature’s true potential. The Cardea coloring solutions are, through their unique composition, naturally protected against parameters such as oxidation and fading to safeguard colouring performance. Meanwhile, with natural colors also faulted for being dull, ADM in 2019 launched new micronized color powders made from colouring foodstuffs and paprika extract, expanding its WILD Rainbow Range. The new micronized color powders are made up of particles that are much smaller than conventional color pigments, increasing their opacity giving food and beverages striking and consistent colouring. In pursuit of more color intensity, GNT introduced the Exberry Fiesta Pink Micronized Powder in 2020. The product, according to the company is pH-independent, offers good light stability and has a 24-month shelf life below 25⁰C. “Exberry Micronized Powders were developed to deliver optimal performance in applications such as solid mixes, where they can achieve more vibrant colors at lower dosage levels compared to standard powders. With the launch of our stunning Fiesta Pink micronized powder, manufacturers are able to choose from an even wider range of shades,” said Sonja Scheffler, product manager at GNT. Even by ticking all boxes, with today's consumers, natural colors are not always enough. Consumers demand that natural colors are not only safe to eat but also utilize recognizable ingredients and meet their lifestyle choices such as sustainable living, specific dietary requirements and conscience well-being. For a while, carmine played a role as a suitable substitute 58

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to Red 40, one of the most commonly used "artificial" red food dyes. However, while carmine isn’t synthetic, since it is derived from the cochineal beetle, it may not align with vegetarian, kosher or halal diets, triggering an “ick” factor. According to Food Dive, in 2012, Starbucks faced backlash when consumers discovered it had replaced synthetic reds with the insect extracts in its Strawberries & Creme Frappuccino and strawberry banana smoothies. Chr. Hansen prior to renaming of its natural colors division to Oterra, unveiled the Hansen sweet potato™, a natural red color alternative to carmine and synthetic reds to satisfy the discerning consumers. The new vegetable variety from Ipomoea batatas was developed using traditional breeding methods to create the long-sought after vibrant, natural red color for use in food and beverage applications. Players have also bootstrapped their research and development efforts to introduced organic food colors, a natural progression of the clean label trend. Diana Food North America, part of Germany’s Symrise Group, introduced a line of organic, non-GMO and sustainably sourced colors for foods and beverages in 2019. The company notes that it avoids the use of the chemicals and additives in the growth of the raw materials themselves. TABLE FOR TWO: MY SMARTPHONE AND ME With color being a visually stimulating additive, consumers demand vibrant, eye-catching food colors that authentically illustrate nature’s brilliance. Research suggests as many as 69% of Millennials regularly take a picture or video of their food before they eat it. In correlation to this, Innova Market Insights Trends Survey (2018) found that 55 percent of Chinese consumers, 43 percent of US consumers and 24

COLOURING CAN DELIVER VIBRANT, INSTAGRAMMABLE SHADES FROM ACROSS THE RAINBOW, WHILE MANTAINING CLEAN AND CLEAR LABELS. Lorraine Jansen, GNT Content Marketing Specialist

percent of UK consumers aged 26-35 years share pictures of their food online once a week or more. This practice has gone vogue with the market researcher listing “Connected to the Plate” as a key top ten trend for 2019, noting that “never in history have we been more connected to the plate in front of us.” As food and beverage posts on social media platforms like Instagram and Pinterest climb into the billions, Krahl at FOODBUSINESSAFRICA.COM


SWEET POTATO FLESH IS A GREAT SOURCE OF NATURAL COLORS

Sensient Colors Europe GmbH, has highlighted that food sharing online will influence both the color and flavor of new product development saying, “The visual appearance of food is becoming ever more important with people often sharing food product images on social media such as Instagram. Combined with consumers looking for increasingly different taste experiences and the popularity of authentic ethnic flavors, greater authenticity of foods visual appearance is demanded.” To meet this need Sensient has expanded its range of natural colors and colouring foods with vibrant shades of yellows, oranges and reds in its new Pure-S™ Natural Color range. While bright and bold may be best on Instagram, manufacturers need to remember that many consumers are still looking for natural products and what's more, products that look natural. “Coloring Foods can deliver vibrant, Instagrammable shades from across the rainbow, while maintaining clean and clear labels. As a result, it’s possible to create head turning products without compromising on their appeal to shoppers,” Lorraine Jansen, GNT’s Content Marketing Specialist, told FoodNavigator. In 2019, the Netherlands-based food colors maker expanded its Exberry natural colors range with new blue powders derived from spirulina, providing a jaw dropping intense blue hue. CAPTIVATE CONSUMER IMAGINATION With bright and vibrant colors finding liking among the social media-oriented society, one might wonder where is the place for bold colors with earthy tones? Nathalie Pauleau, global product manager for natural colors, Givaudan reveals that, as plant-based beverages and meat analogs continue to rise, so does the demand for toned shades of browns and reds in meat substitutes, white and orange for fish analogs and yellow in dairy-free products. Natural colors are fundamental in the plant-based segment too as the base materials used to create the meat or dairy alternatives are not always appetizing shades or indicative of their imitating flavor. “Consumers are expecting these products to be really similar to normal meat in taste, FOODBUSINESSAFRICA.COM

appearance, texture. If you want to mimic beef, the color must be pink or red before the cooking process and brown after,” says Antoine Morel, colors product manager at Diana Food (part of Symrise Nutrition). Diana Food is among the companies using red beet for this purpose, and Morel says it has been widely accepted by consumers for its natural browning reaction to heat. “As one of our core areas of expertise, we have created solutions to enhance and capitalise on this effect,” he explains. “This enables us to color vegetarian and vegan burgers that can be cooked rare, medium or well done with the color changing appropriately.” Sensient, meanwhile, customises meat analogue solutions ‘for individual needs based upon aesthetic goals and manufacturing processes. “In a market with increasing new product development going on, color is equally used to differentiate flavour and special seasonings in meat substitute products,” says Pat Hanson, general manager Sensient. “Warm brown from Sensient’s Natural Brown range can support the barbecue concept in a chicken-like product, while a bright red-orange blend works well in spicy ‘chicken’ curry.” Of course, visuals are just one aspect of the consumer experience. Other senses come in to play. “To take it to the next level, ADM’s food color experts also ensure that authentic browning comes alongside rich aromas, a great sizzle and a texture that evolves from raw to tender the way traditional meat would,” says Emina Goodman, senior director of colors at ADM. Emina further highlighted that color

from natural sources go hand-in-hand with plant-forward foods. “Many shoppers consider plant-based offerings better for their health and better for the environment, and they expect to see other ingredients derived from plants, beyond just proteins, used in these products,” she affirms. Around 95 percent of new colored alternative product launches contain color solutions from natural sources, and more specifically, from plant-based sources FBA

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UPDATE ON INVESTMENTS OPPORTUNITIES & MARKET TRENDS IN AFRICA'S FOOD & BEVERAGE INDUSTRY

Report

Adding some fizz to Uganda's throats Leading soft drinks players adopt innovation and creativity to remain relevant in an increasingly competitive environment By Paul Ongeto

O

nce dominated by a duopoly of Century Bottling Company (bottler of Coca-Cola) and Crown Beverages (the franchise bottler for Pepsi), Uganda’s soft beverage industry is today one of the most competitive in the region. Entry of new players most notably Riham, Fizzy and Azam is reshaping the beverage

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landscape in the country, creating new competition for established players and accelerating market expansion. The soft beverage industry in Uganda is however having to contend with new challenges ranging from shifting consumer tastes and preferences to inflation which is straining consumer budgets and affecting sales. Industry players from Crown beverages to Riham are however staying FOODBUSINESSAFRICA.COM


at the head of the curve, investing in new technologies and product innovation to keep consumers coming back for more. Confident of the market’s performance, Market Research projects the soft drinks market to register a compounded annual growth rate (CAGR) of 11.75% per annum for the period 2020-2025. At the end of the forecast period, Uganda’s soft drinks market is forecast to reach US$470.45 million (in retail prices), according to Market Research. NEW ENTRANTS BREAK THE COCA-COLA-PEPSI DUOPOLY The entry of three beverage firms namely Riham, Azam and Fizzy between 2011 and 2012 lifted the lid off a market that had operated like a semi-monopoly for more than three decades and ended an era of wild growth and huge profits that the two beverage giants enjoyed. The list of new entrants continues to grow by the day even putting more pressure on Century Bottling now known as CocaCola Beverages Africa-Uganda (CCBA Uganda) and Crown Beverages. Paddy Muramiira, CEO of Crown Beverages Limited, blames PET bottles for the misfortune that his company currently finds itself in. “The introduction of PET liberalized the soft drink sector,” Muramiira said in an interview with Macropolis. “Now, there are a number of players that come and go. It is easy entrance, easy exit. That has caused the sector to become more competitive than ever before despite the adverse effects of indisciplined PET disposal to the environment.” With competition comes the inevitable reality of price wars. Riham, securing an easy entrance through PET, priced its 320ml PET bottle at Shs1,000 (US$0.4) and quickly

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THE INTRODUCTION OF PET LIBERALIZED THE SOFT DRINKS SECTOR. NOW, THERE ARE A NUMBER OF PLAYERS THAT COME AND GO. THAT HAS CAUSED THE SECTOR TO BECOME MORE COMPETITIVE. Paddy Muramiira, CEO Crown Beverages Limited

gained an edge over Coca-Cola and Pepsi whose cheapest 300ml returnable glass bottled products were also selling at Shs1,000. “Immediately Riham hit the market, our sales dropped from 70 cartons a day to an average of 60 cartons per day,” confessed Rashid Kagoye, a manager at Agma Holdings Ltd, a Coca-Cola depot in Kampala. Coca-Cola responded to Riham’s incursion by slashing the price of its 300ml glass bottled soda from Shs1,000 to Shs800 (US$0.32) while the 350ml plastic-bottled Ka-Mini soda was cut from Shs1,500 (US$0.6) to Shs1,000. Both CocaCola and Pepsi cut the prices for the 500ml and one-litre plastic bottled sodas from Shs2,000 (US$0.8) to Shs1,500 and from Shs3,000 (US$1.2) to Shs2,500, respectively. Although price cuts were advantageous to consumers

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AS COMPETITION INTENSIFIES, SOFT BEVERAGE COMPANIES HAVE BEEN EXPLORING OPPORTUNITIES IN THE BOTTLED WATER MARKET WITH THE ALL THE THREE LEADING COMPANIES NOW HAVING A BOTTLED WATER LINE. consumption of drinks with high-sugar content is rather occasionally than regularly, as they are perceived more as an indulgence.” Not to be left behind, Riham, a new entrant, expanded its soda portfolio to include Skyview, what’s up, and Funtime brands to tap into increasing demand for low-cost carbonated soda beverages. This investment was in the right direction as carbonates account for 71% of East Africa’s soft drink consumption and are on track to keep growing, according to a report by Standard Bank, a major African bank. The beverage brand owned by Harris International also expanded into fruit juice with the launch of Oner brand. who at the time paid relatively lower prices for sodas, they greatly impacted manufacturers, eating into their profits and in turn reducing taxes to government. PRODUCTION INNOVATION BECOMES THE NEW BATTLEGROUND FOR MARKET SHARE Price wars being unsustainable in the long term, players in Uganda’s beverage sector have turned to product innovation to attract more customers. CCBA Uganda has been a leader in this field. The company in 2018 stepped into the flavored milk market with the launch of Climb Up Milk while in 2021 the company expanded its portfolio of non-carbonated beverages with the launch of Ades nutribushera, a plant-based beverage which is a modification of the traditional drink made in Ugandan households with millet. The company also expanded its Minute Maid with the launch of Fruity Boost Mango to offer consumers more variety in the juice category. Coca-Cola’s launches tapped into consumer demand for healthy and sustainable products. In Uganda, consumers preferences have shifted to more natural products with “clean label”, including fermented drinks, teas, lower sugar beverages and fortified drinks with health benefit claims, notes Market Research. “In fact, people are increasingly embracing the non-carbonated drinks, but the 62

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RIHAM'S ONER FRUIT JUICE BRAND IS TARGETED AT HEALTH CONCIOUS CONSUMERS

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Oner is targeted at health-conscious consumers who prefer low sugar drinks. With the pandemic accelerating shift towards beverages perceived as healthy, Riham also launched oner apple juice with no-added sugar to bring more consumers to its fold. The company has also explored the energy drink sector with its Rock Boom brand whose market success forced Crown beverages to respond with its own Sting energy drink. The makers of Pepsi also expanded the soda range with a new Pepsi Max a low-calorie and sugar-free cola. The soda launched in 2021 was targeted at consumers conscious of their daily sugar intake and was meant to rival Coca-Cola’s zero sugar variant Coke Zero which had been in the market since 2017. Century Bottling CEO Muramiira notes that new entrants have helped Uganda’s soft beverage market to grow. “The total industry has moved from about 20 million cases 10 years ago to about 60 million cases now and there is still good potential for more growth,” he revealed. Market Research, in its research, projects that in the next five years, Uganda’s soft drinks market will grow at a CAGR of 8.31% per annum, presenting further opportunities for new and existing players. WATER BOTTLING, THE NEXT GROWTH FRONTIER As competition intensifies, soft beverage companies have been exploring opportunities in the bottled water market. All the three leading soft beverages namely CCBA Uganda, Crow Beverages and Riham have bottled water brands in the Ugandan market. To bolster its market presence, Riham partnered with French packaging equipment supplier Sidel in 2013 to install a new Combi PET bottling line with capacity of 16,000 bottles per hour. Crown Beverages responded in 2017 with its Nivana water. Not to be left out of the water rush, Coca-Cola Beverages Africa (Uganda) in 2019 commissioned FOODBUSINESSAFRICA.COM

KEY NUMBERS

60M

THE NUMBER OF SOFT DRINK BEVERAGE CASES THAT UGANDA PRODUCES IN A YEAR a US$10 million Natural Water production line for its Ruwenzori water brand. To extend its lead in the water market, early adopter Riham unveiled, in 2021, a new premium water brand dubbed ‘Krystal Natural Mineral Water’. A few months later Crown Beverages responded with a new plant with two dedicated water processing lines and unveiled a new 20 litre jumbo size bottle of its Nivana water brand. All these investments are aimed at diversifying product portfolio from the highly competitive CSD market. Bottled water is also

being embraced by more Ugandans for convenience and hygiene reasons and thus presents the greatest prospect for soft beverage companies. Market Research projects that the Uganda bottled water market which was equal to US$89.00 million (calculated in retail prices) in 2015 will reach US$323.01 million (in retail prices) in 2025, increasing at a CAGR of 10.62% per annum for the period 2020-2025. Unlike CSD, this market is also very competitive, having more than 40 licensed water bottlers as of 2012. Riham, Century Bottling, and CCBA Uganda are capitalizing on their established distribution logistics, marketing capabilities, and higher technologies to establish market dominance. Water bottlers are also looking beyond Uganda. According to data from Bank of Uganda, driven by demand from neighboring countries, Uganda’s export earnings from bottled water jumped by 55 per cent in October 2021 to Shs12 billion (US$3.127 billion), the highest monthly record since 2013. South Sudan is currently the largest market for

CROWN BEVERAGE'S STING IS ONE OF UGANDA'S LOW COST ENERGY DRINKS

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the East African market and allow beverage manufactures to expand production and create more jobs Uganda also has a tax exemption on fruit and vegetable juice made from at least 30% of pulp and fruit from Uganda. The exemption is aimed at promoting the use of local raw materials in the production of beverages. Beverage manufacturers, particularly Coca-Cola, have exploited this opportunity and launched new products such as Ades Nutri-Bushera and Climb Up milk that are largely formulated with locally sourced products.

Uganda’s bottled water, but market players are projecting that DR Congo could in the near future become an even bigger market. ATTRACTIVE GOVERNMENT INCENTIVES STIMULATE INVESTMENTS Starting a business of any Kind in Uganda is relatively easy compared to its counterparts Kenya and Uganda. According to the world Bank, the country’s average cost of starting and running a small to medium sized enterprise in 2021 was valued at US$163, almost half the amount charged in Kenya (US$353) and Tanzania (US$322). Overall, the country ranked 12th in ease of doing business in Africa. Sector specific incentives include an attractive 12% excise duty on beverages, which is significantly lower than the UN recommended tax of 20% on all sugar sweetened beverages. The highest rate in Uganda (15%) is charged on powder for reconstitution to make juice or dilute-to-taste drinks, excluding pulp. These alone make Uganda attractive to both local and foreign investors seeking to invest in the soft beverages sector. The chief executive officer of CCBA Uganda Jacques Vermeulen indicated how important the attractive tax regime was in informing the company’s decision to invest in a new bottling plant back in 2018. He said: “This [US$ 15 million] investment was made on a promise of reducing taxes (on soft drinks), from 13% excise duty to 12% in the 2018/19 financial year, and we are glad it was implemented. This is confirmation that a favorable tax regime can attract more investment for the industry.” Even with a low tax regime already in place, the beverage sector is still pushing for taxes to be reduced further to 10% to increase competitiveness of Uganda’s soft beverages in 64

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GROWING MIDDLECLASS TO DRIVE FUTURE GROWTH Uganda’s middle class, composed of those with daily per capita consumption of US$4-$10, surpassed the 8 million mark for the first time in 2021 and is expected to show robust growth in the near future as the country works towards achieving a middle income status by 2025. This class which lives above the subsistence level and can save and consume non-essential goods has been the major driver of the beverage sector contributing greatly to consumption per capita which in value terms reached 1.83 USD per capita (in retail prices) in 2015, according to Market Research. As the middle class expands, the market research firms projects that average consumption per capita in value terms will grow at a CAGR of 7.95% per annum between now and 2025. This presents new opportunities for beverage players to grow their bottom line. To gain an edge over competitors, beverage makers must however align with important trends on the carbonated soft drinks in Uganda which according to Standard Bank align with global trends in the sector. According to the bank, healthy and sustainable products will certainly rise in demand as empowered consumers demand goods that are both good for their bodies and the environment. In order to remain competitive, Market Research advises beverage makers to reduce their use of sugar and to include fortified carbonated soft drinks, as well as zero-calorie drinks in their portfolio. Coca-Cola and Pepsi already have an edge in these area with their zero calorie drinks. In addition, the number of people, who are paying attention to labelling is increasing. Thus, companies also need to focus on transparency and simplicity regarding information in order to gain customers’ trust. Although competition still continues to squeeze revenues, established players believe that their brand equity will enable them to weather the storm in the long run. Crown Beverages CEO Paddy Muramiira is particularly not worried about these small players. “They come in and out quickly, so we are not worried.” Instead, Muramiira is focused on expanding the horizons of the Pepsi franchise in Uganda. He believes that opportunities for the industry to grow still exists despite incursions from competitors. “The driver for our anticipated growth is a high rate of population growth, a young population, political stability and improved business environment.” FBA FOODBUSINESSAFRICA.COM


Market Trends Plant based foods: Why all the fuss? With billions of dollars in funding and a huge consumer backing, the plant-based foods market is threatening to topple over dairy and meat industries. By Paul Ongeto

T

he plant-based foods market is booming. Global retail dollar sales of plant-based meat grew 17 percent in 2021 to US$5.6 billion— doubling from four years ago, according to Euromonitor data analyzed by GFI. This upward trajectory is expected to continue in the near future with analysts at Bloomberg predicting FOODBUSINESSAFRICA.COM

that the market will grow from US$30 billion in 2021 to a staggering US$160 billion by 2030. By all means, it’s safe to say that plant-based is certainly one of the hottest places to be in the food industry at the moment. Early adopters from Oatly to Beyond Meat and Impossible Foods have grown from oblivion into household names in Europe and North America commanding billions of dollars MAY/JUNE 2022 | FOOD BUSINESS AFRICA

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ADM US PROTEIN INNOVATION CENTER IN DECATUR, GEORGIA

in market capitalization. More traditional, established food players, like Kellogg, Danone, Unilever, and Nestlé, have also jumped into the plant-based bandwagon seeking to gain an edge by ramping up their distribution of plant-based products, and producing promotional campaigns that showcase their variety of options. All these developments have certainly impacted the plant-based market. More products are now on supermarket shelves, quality is improving, customer awareness and appetite is also rising to the chagrin of the dairy and meat industry which have also vowed to fight back to protect their turf. Will plant-based dominate our dinner tables in the future? This article digs deep into the plant-based industry to bring you answers. WHY ALL THE FUSS? Many consumers and investors are attracted to plant-based foods due to their more sustainable and green profile. Unlike their meat and dairy counterparts whose production account for more than 14% of global greenhouse gas emissions, according to the UN’s Food and Agricultural Organization, plant-based foods come from sources such as pea, beans, tofu and nuts whose field environmental impact is one of the lowest in the food industry. This has made food manufacturers, particularly those with net 66

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zero ambitions, to incorporate more plant based foods in their portfolio and by doing so driving market growth and consumer adoption. Veganism’s popularity over the last several years has further fueled growth of the plant-based market. These group of people that is estimated to number about 79 million globally is the backbone of the plant-based market actively demanding alternatives to meat and dairy products. The number is even expected to become even bigger in the near future as everyone from celebrities to athletes to entire companies, including Google, and countries as big as China throw their weight behind the movement. BILLIONS OF INVESTMENTS DRIVE GROWTH Major driver of the plant-based revolution is investment. According to the Good Food Institute (GFI), Plant-based meat, egg, and dairy companies raised US$1.9 billion in 2021, bringing total investments in such companies since 1980 to US$6.4 billion. Another US$2 billion was raised in liquidity events in 2021, compared with US$15 million in 2020. These investments have been critical in helping companies such as Impossible, which raised US$500 million in 2021, to rapidly scale up their production capabilities, hire key staff, and undertake marketing activities for their products. The result has been an explosion of new plant FOODBUSINESSAFRICA.COM


based products in the market, increasing accessibility to the once niche, hard to find products. In 2021, U.S. retail saw high activity in the alternative protein space with more than 100 new brands selling plant-based products, according to the GFI. In the UK, a 2021 study found that 56% of food and beverage brand owners were planning to invest their new product development budgets in the development of plantbased products in 2022. Funding has also supported extensive marketing campaigns for plant based products, helping shift consumer choices and as a result driving up plant-based sales. Dollar sales of plant-based food hit US$7.4 billion in 2021, growing by 54 percent since 2018—greatly outpacing total food dollar sales, which only grew two percent in the last three years, according to data released by GFI. Plant-based meat, the largest category in the sector, grew 17 percent in 2021 to US$5.6 billion—doubling from four years ago, according to Euromonitor data analyzed by GFI. A new trend of celebrity investments into plant-based companies is not only providing these startups with necessary funding but also publicity which has also been attracting sales. The power of a celebrity endorsement has been well documented and argued, but research shows that a brand with a celebrity endorser generates 4% more sales on average than their competitors. Leonardo DiCaprio, Drake, Beyonce, Jay Z, Rihanna, Post Malone, Paris Hilton and Oprah are some of the popular celebrities that have invested significant amount into the plantbased sector. INNOVATION IMPROVES QUALITY Although highly cost effective and sustainable, plantbased alternatives at times lacked the creaminess, texture, sweetness or other attributes that drive consumer acceptance. To sustain interest in plant-based, food

ACCORDING TO THE GFI, PLANT-BASED MEAT, EGG, AND DAIRY COMPANIES RAISED US$1.9 BILLION IN 2021, BRINGING TOTAL INVESTMENTS IN SUCH COMPANIES SINCE 1980 TO US$6.4 BILLION. ingredient manufacturers have innovated new products that improve on quality. UK food ingredient company Paleo recently unveiled its latest fermentation technology which it claims will offer “the true taste and aroma of meat and fish to plant-based alternatives.” Competitor Beneo, on the other hand, recently launched Pro W-Tex, a range of textured wheat proteins that is designed to help manufacturers develop meat alternatives with a meat-like texture and juicy mouthfeel. When it comes to Yogurt, Ingredion has developed the SIMPLISTICA® YG 3206 ingredient system that provides texture and structure to non-dairy yogurts, while also providing clean taste protein fortification to match the protein content of a dairy yogurt. In March 2022, MISTA members AAK, Chr. Hansen, Givaudan and Ingredion merged their tech knowledge to co-create a plant-based, high-performance yogurt base. According to the owners, plant-based yogurt base is available to customers in the US, Europe and parts of Latin America and can be leveraged by

NESTLE'S VEGAN CHOCOLATE IS ONE OF THE FIRST IN THE INDUSTRY

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DANONE'S ALPRO IS ONE OF THE MAJOR PLANT-BASED YOGURT BRANDS IN THE US MARKET

alternatives to milk and meat. As veganism spreads like wildfire, food manufacturers have been forced to extend plant based to other categories, first with yogurts and cheeses and later to a plethora of products including chocolate and eggs. Plant based chocolates are now in vogue with companies from Barry Callebaut to Mars and Nestle all debuting plant-based chocolates. Last year, Swiss food giant Nestle launched its KitKat V, a plantbased variant of its popular 5-finger chocolate brand-Kitkat.

ON THE DOWNSTREAM SIDE, WE SEE IMPROVEMENTS IN (PLANT) PROTEINS THROUGH PROPRIETARY PROCESSING THAT MAKES THEM MORE FUNCTIONAL. Dr. Justin Shimek, CEO at Mattson

large, small or emerging brands to accelerate their time to market. “On the downstream side, we see improvements in proteins through proprietary processing that makes them more functional, so for example, with chickpea, an inherently consumer friendly protein, [firms have] made it even more functional when it comes to gelling and broadening of applications,” says Dr Justin Shimek, CEO at innovation and product development firm Mattson. To further support innovation, major suppliers to the plant-based industries including Buhler, ADM, Ingredion, and Givaudan are all investing in research and development centers solely focused on plant-based foods. In April this year, ADM announced plans to build a Protein Innovation Center in Decatur that will include labs, test kitchens and pilot-scale production capabilities to help the company develop new ingredients with unique texture, taste, appearance and nutrition products. A year earlier, Givaudan opened a new Protein Hub equipped with a state-of-the art development kitchen and a pilot plant where customers can come to work on all types of applications and every aspect of the product development process, from initial ideation and consumer insights to hands on prototyping sessions— all with the aim of getting products to market quickly. During its 2022 Networking days, Buhler announced a new partnership with endeco aimed at new Protein Application Center to enable the build-up of know-how and drive the further development of processes for the production of meat substitute products

A year later, confectionery giant Mars Wrigley followed suit with its CO2COA plant-based chocolate made in a partnership with animal-free dairy protein innovator Perfect Day. Ahead of the 2022 world chocolate day, Beneo also unveiled a vegan chocolate with tempered snap made from rice ingredients. Industry supplier Barry Callebaut is leading innovation in plant-based chocolate with its Plant Craft portfolio of dairy-free organic chocolates. According

PLANT-BASED EGG DOLLAR SALES HAVE GROWN 1000% IN THE PAST 3 YEARS

PLANT-BASED EXPANDS BEYOND MEAT AND MILK The mission of the plant-based industry was to find 68

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to Barry, the Plant Craft range includes solutions for confectionery, bakery, ice cream applications, and more. Diversification to other products is helping keep the plant-based trend alive even as sales stall in the more conventional products. In 2021, plantbased yogurt dollar sales grew 9%, three times the rate of conventional yogurt while plant based cheese grew 7% ( conventional cheese declined 2%), and plant-based ice cream and frozen desserts grew 31% over the past two years to reach US$458m, according to SPINS data. Of all categories, Plantbased eggs stood out, growing 42% in sales in 2021 while conventional egg sales declined 4% last year. In the past three years, dollar sales have grown by more than 1000%. The plant-based egg category is currently dominated by Eat Just which in 2021 partnered with market platform Infinite Foods to bring the folded format of vegan JUST Egg to South Africa by way of retailer Wellness Warehouse and Infinite Foods’ eCommerce site. NEW PLANT-BASED SOURCES COME ONLINE As the market matures, diversification into other plant-based sources is happening to widen the pool of raw

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HEMP IS ONE OF THE EMERGING SOURCE FOR PLANT-BASED PROTEINS

materials and shield the sector from shortages that could arise if any major source is impacted by adverse weather or other factors. Among the many plant-based sources currently under trial, Hemp, barley, chickpeas, and Pongamia have shown the greatest potential for use in different alternative dairy and meat applications. Pongamia protein is a particularly intriguing new addition to the formulator’s toolbox. “On the protein side, it actually seems to work really well with a lot of other proteins and grains in formulations. It’s relatively neutral in flavor and we don't detect ‘beaniness,’” said Dr Justin Shimek, CEO at innovation and product development firm Mattson. “From a functionality point of view, it seems to bind oil and water well.” When you mention hemp protein, people envision this green, slightly bitter powder. Chad White, cofounder and chief innovation officer of Colorado-based Nepra Foods has a differing opinion. “From a functionality standpoint, I'm able to do just about anything with it. I can make meringue,mousse cakes

and a lot of different products that require aeration. The emulsification properties are also wonderful. It holds many times its weight in oil and binds to water as well,” White says. “We’re

KEY NUMBERS

US$

7.4B

GLOBAL PLANT-BASED SALES IN 2021 also culturing hemp milk and making some pretty fantastic cheeses as we're seeing an enhancement of the functionality once we ferment it.” Barley protein, which AB InBev is upcycling from brewer’s spent grain via its EverGrain Ingredients subsidiary, is also proving attractive to formulators. “On taste, it has a slight malty, caramel note, so it works really well in chocolate and vanilla applications,” says Ever

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RESEARCH FROM A DUTCH SURVEY SUGGEST THAT MEAT AND ALT MEAT ARE NEARING PRICE PARITY. IN 2022, MEAT FREE CHICKEN PIECES ARE JUST US$0.13 MORE EXPENSIVE. BACK IN 2019, THEY WERE US$0.75 MORE EXPENSIVE. Grain CEO Greg Belt. “We can produce a plant-based milk with anywhere between 5-12 grams of protein… without [negatively] impacting taste… and that caramel note also works well in meat alternative applications.” Having been made with spent barley grain, EverGrains proteins come with an Upcycled certification – which hits the right buttons on sustainability. Chickpea protein is the other protein to watch. “It has good functionality, great water absorption, fat absorption and emulsification properties, which makes it suitable for different applications,” Panchali Chakraborty, technical director, savory and snacks at Givaudan says. “There are some sensory off notes which can be easily overcome by masking and the additional advantage is that there is a fatty mouthfeel that is inherent to the protein, which really minimizes the astringency associated with most plant proteins.” John Penno and his wife Maury Leyland Penno want to expand the possibilities even further. The Pennos are focusing their work on rubisco which, according to them, is present in all plants. They have started the Leaft Foods, a company that extracts rubisco out of leaves and turns it into a green protein gel, which it can process into a tasteless and odorless protein powder. Rubisco, which has a similar amino acid profile to beef, is a powerhouse ingredient that can be added to any food product, and that can supercharge the nutritional value of any plant-based dish, according to the company. With Rubisco, the plant-based sector will not be limited to particular plants. The decision on which plant to grow will now come down to what plants grow the best and fastest to create leaves rich in the protein, as well as the other products that could be created from those plants.

supplier for the patty in its new McPlant burger. The two companies will also develop other menu items like plantbased chicken, pork and eggs. Beyond Meat also has a deal to create a plant-based menu for Yum! Brands’ KFC, Pizza Hut and Taco Bell menus. Rival Impossible Foods has a partnership with Burger King for supplies of meatfree nuggets and other plant-based alternatives. The duo recently launched new Impossible Burger menu items: the Impossible King and Southwest Bacon Impossible Whopper as a way to tempt meat-eaters to consume less animal protein. Price which has consistently been one of the largest barriers to meat-free adoption is also coming down. Results from a Dutch survey, commissioned by ProVeg Netherlands, suggests that meat and alt meat are nearing price parity. In 2022, meat free chicken pieces are just US$0.13 more expensive. Back in 2019, vegetarian chicken pieces were still US$0.75 more expensive per 100g than their animalbased counterparts. The price difference in minced meat has similarly fallen – from US$0.24 to US$0.06 – in the same period. The survey further revealed that a budget plant-based version turned out to be cheaper than the cheapest animal version in 20% of cases. GFI projects that, going by the current trend where meat and milk prices are soaring, parity could happen far sooner than expected.

RESTAURANT PARTNERSHIPS, PRICE PARITY TO FURTHER TIP THE SCALES As plant-based meat retail sales achieves their peak, plantbased meat companies have been forging partnerships with fast food restaurants to further drive adoption and increase sales. Market leader Beyond Meat signed a threeyear global deal with McDonald’s, making it the “preferred” 70

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Their calculation shows that the price of plant-based meat is projected to fall below that of conventional meat in 2023, paving the way for widespread acceptance and demand for plant-based alternative proteins. STIFLING REGULATIONS THREATEN GROWTH Fearing further market share loss, dairy and meat players have been intensely lobbying governments across the globe to come up with regulations to protect the use of dairy-like and meat-like names from use by plant-based companies. In June, South Africa prohibited the use of meat-like names for plant-based alternatives, to the joy of South African Meat Processors Association which had been intensely lobbying the regulators to do so. A few days later, France followed suit, becoming the first country in the EU to ban 'meaty' terms on plant-based products after increasing pressure from meat industry. France’s ban is targeted at local producers and will come into effect in October this year. Happy with the win in France, Meat industry body INTERBEV and its French food association FNSEA are now calling on the French government to sponsor a similar bill at the European Union level in order to ‘widen the scope of application to all products, whatever their origin’. Taking cue from South Africa and France, Turkey recently implemented a total ban on the production and sale of vegan cheese alternatives in the country. This dealt a major blow to a sector where growth was already curtailed by strict regulations on labeling and marketing. In the US, the dairy and meat industries have been lobbying legislators across the states to restrict the use of dairy terms to products that only come from animal milk. The scope of the bills - which have been introduced in multiple states – varies, with some attempting to prohibit the use of terms such as ‘meat’ and ‘milk’ on plant-based products, even if they use qualifiers such as ‘dairy-free’ or ‘plant-based;’ and others extending that prohibition to terms such as ‘burgers.' Some allow ‘meaty’ terms, but then attempt to regulate the size and prominence of qualifiers such as ‘vegan’ or ‘plantbased’ on food labels. The attempts haven’t been successful so far with some of the laws being declared by US courts. In one of the rulings, US District Judge Kristine G. Baker disputed claims that shoppers were confused by use of dairy and meat like terms on plant based foods, adding: “The State appears to believe that the simple use of the word ‘burger,’ ‘ham,’ or ‘sausage’ leaves the typical consumer confused, but such a position requires the assumption that a reasonable consumer will disregard all other words found on the label.” Battle has been upgraded to the Federal level where legislators have drafted the Dairy Pride Act which seeks to compel the FDA to enforce its regulations on milk. Members of the Plant Based Foods Association (PBFA) have however repeatedly told the FDA and legislators that attempts to regulate their sectors are unnecessary and have “no chance of surviving a First Amendment challenge.” 72

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COMPLETE MEAT AND DAIRY REPLACEMENT UNLIKELY The plant-based industry has made remarkable gains over the past few years. In just over a decade, plant-based milk has challenged traditional milk and today accounts for 15 percent of all dollar sales of retail milk. Plant-based egg has reported a growth of over 1,000 in just under five years while other emerging categories like plant-based seafood alternatives and dairy-free chocolate are cutting a niche of their own. By all measures and metric, the future of plant-based food is bright with near term projections from Bloomberg Intelligence showing that the market could be worth US$162 billion by 2030. All these developments and the pushback from meat and dairy makes one wonder: would plant-based eventually replace meat and dairy in our tables. A study by the Applied Economic Perspectives and Policy says the likelihood of that happing soon is almost zero. According to the study plant-based meat alternatives comprised only 0.1% of average total expenditures on fresh meat during the study period. The study further found out that a significant portion of those purchasing meat did not replace beef with plant-based meat alternatives but purchased both products together, making complete replacement unlikely in the near future. Even if such a possibility materializes, it would certainly not be in the decades to come as the US$162 billion estimate of plant-based foods in 2030 is dwarfed several times over by the animal protein market size which at that time is estimated to be US$1.2 trillion FBA

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