Food Business Africa - Issue 60 by FW Africa

R AI ’CSA N’ S OO. 1O DF O DU & V RE IRN A G A A FAR FI C O . 1N F MO AN F AB CE TU G G&E R IENT D A IULS ITNRD YU SMT A RY MZ A IGNA EZ I N E

Food Business Africa

IMPACT OF INFLATION, TAXES ON BEVERAGE INDUSTRY IN KENYA AFRICAN FRUIT PUREEBASED CARBONATED SOFT DRINKS ADVANCES IN MEAT SHELF-LIFE EXTENSION

TRUFOODS SCAN ME

WWW.FOODBUSINESSAFRICA.COM

CEO, Sagar Malde on what makes his brands tick with consumers YEAR 10 | ISSUE NO. 60 JAN/FEB 2024

AFRICA

JUNE 26-28, 2024 Nairobi, Kenya

BUSINESS

SUMMIT The Africa CEO & Leadership Forum

www.africabizsummit.com

The Africa CEO Leadership & Sustainability Forum Africa Business Summit is * The the ground-breaking executive level conference and expo on the future of strategic leadership, entrepreneurship, sustainability & african transformation

Sustainable Business & ESG Digitalisation & Tech Innovation

program at the 3-day * The Summit comprises of a

number of premium sessions such as Leadership Dialogues, CEO Roundtables, Plenary and Panel Discussions and a B2B Deal Connect Service as well as presentations by influential people and change makers who are making waves – and inspiring the next generation of leaders in Africa

Human Capital Development

Strategic Leadership

KEY AGENDA

Pan-African & Global Trade

Financing, Investing & Financial Inclusion

Supply Chain & Logistics Transformation

Industrialisation & Infrastructure Development

Co-located with:

SCAN

CONTENTS

YEAR 10 | ISSUE NO. 60 JAN/FEB 2024

REGULARS 4 Editorial 6 Events Calendar 8 News Update 24 Packaging News 26 Food Safety News 28 Appointments Update

BEVERAGE TECH AFRICA 40 Exploring the potential of African fruit PureeBased carbonated Soft Drinks

New Product Innovations:

MEAT BUSINESS AFRICA 45 Advances in Meat Shelf-life Extension

52 FOODBUSINESSAFRICA.COM

Supplier News & Innovations JAN/FEB 2024 | FOOD BUSINESS AFRICA

CONTENTS

YEAR 10 | ISSUE NO. 60 JAN/FEB 2024

50 Industry Report: Inflation on Tap How High Prices and Taxes Pour Trouble into Kenya's Beverage Market

32 My Company Profile: Trufoods Life’s Variety for a Healthy Society 2

JAN/FEB 2024 | FOOD BUSINESS AFRICA

ON THE COVER - Sagar Malde, CEO, Trufoods FOODBUSINESSAFRICA.COM

PALSGAARD ® ACIDMILK SERIES

Yes!

Now everyone can enjoy delicious yoghurts

Shelf-stable ambient yoghurts are the future of the category. Bring the joys of creamy, fruity yoghurts to consumers all over your market. By using the Palsgaard® AcidMilk series of emulsifier and stabiliser blends in your yoghurt production, you can produce shelf-stable products that are easier to distribute and not reliant on a stable cold-chain. The Palsgaard® AcidMilk series works for set, stirred and drinkable yoghurts.

BRINGING GOOD THINGS TOGETHER

 Simplify your distribution chain  No UHT process required  Maximise your products’ shelf-life Find out more at www.palsgaard.com/ambientyoghurt

EDITORIAL

Year 11 | Issue No.60 • ISSN2307-3535

FOUNDER & PUBLISHER Francis Juma SENIOR EDITOR Paul Ongeto ASSOCIATE EDITORS Francis Watari Mary Wanjira Steve Ireri BUSINESS DEVELOPMENT DIRECTOR Virginia Nyoro HEAD OF DESIGN Clare Ngode CINEMATOGRAPHER Newton Lemein ACCOUNTS Jonah Sambai PUBLISHED BY: FW Africa P.O. Box 1874-00621, Nairobi Kenya Tel: +254 20 8155022, +254725 343932

Email: info@fwafrica.net Company Website: www.fwafrica.net

OUR PUBLICATIONS

Food Business Africa (ISSN 2307-3535) is published 6 times a year by FW Africa. Reproduction of the whole or any part of the contents without written permission from the editor is prohibited. All information is published in good faith. While care is taken to prevent inaccuracies, the publishers accept no liability for any errors or omissions or for the consequences of any action taken on the basis of information published.

Love in the time of moderation: Sweet treats with a healthier twist

alentine's Day beckons, and with it, the annual deluge of sugary indulgences. Chocolates, pastries, and candy hearts tempt us with promises of love and sweetness, but at what cost? In a world increasingly grappling with obesity and lifestyle diseases, perhaps it's time to redefine how we celebrate love. This Valentine's let's explore the possibility of treats that are not only delicious but also mindful of our well-being. Enter Tru Foods, our cover story and a shining example of how indulgence can meet health consciousness. Their flagship product, Zesta Peanut Butter, boasts just three ingredients – roasted peanuts, honey, and a pinch of salt. This "clean label" spread delivers sweetness with a punch, reminding us that flavor doesn't always need to come at the expense of artificial additives. But Tru Foods is not just about peanut butter. With over 400 products across various brands and a recent focus on health-conscious options, they offer a treasure trove of delicious and responsible choices for your Valentine's shopping list. Looking beyond the sweet aisle, our issue delves into exciting innovations that redefine food and beverage experiences. We explore the potential of African fruit puree-based carbonated drinks,

Paul Ongeto, Senior Editor FW Africa

MILLING

Food Business Africa www.foodbusinessafrica.com

offering a refreshing and locally sourced alternative to traditional sugary sodas. We also delve into advancements in meat shelf-life extension, a technology that could revolutionize how we access and enjoy protein while minimizing waste. With these insights and a host of other fascinating insights and news stories from across Africa and beyond, we hope that you enjoy your read. Let's celebrate love not just with sugary treats, but with informed choices that nourish our bodies and celebrate our well-being. Happy reading, and a happy Valentine's Day!

MIDDLE EAST & AFRICA

www.foodsafetyafrica.net

HealthCare

www.millingmea.com

www.dairybusinessafrica.com

www.ceobusinessafrica.com

www.freshproducemea.com

SUSTAINABLE

MIDDLE EAST & AFRICA

Packag ng

www.healthcaremea.com

www.sustainabilitymea.com

AFRICA

JAN/FEB 2024 | FOOD BUSINESS AFRICA

WWW.FWAFRICA.NET

Food Business Africa

FOODBUSINESSAFRICA.COM

PERFECT SOLUTIONS

Hall 5.1, Booth B070 C089

DO NOT STOP US FROM CONTINUING TO WORK ON OUR IDEAS.

As a leading innovator, we have one prime characteristic: We are never satisﬁed. At KHS, we are thus always proud of what we have achieved – but we also immediately start to question it and think ahead. With the aim of constantly advancing and always improving – and of providing our customers with new, intelligent systems time and again. Which we then, of course, develop further. khs.com/products

EVENTS CALENDAR

AFRICAN FINE COFFEE CONFERENCE & EXHIBITION 2024

The African Fine Coffees Conference & Exhibition and Coffee Week is Africa’s largest coffee trade platform that brings 2000+ regional & international coffee roasters, traders, producers, professionals and connoisseurs 6-10 February, 2024

AFRICA AGRI EXPO

HOSTEX 2024

The trade show will feature the latest technologies and solutions for agriculture including farm machinery, irrigation systems, greenhouses, fertilizers/agrochemicals, seeds, and more from all over the World

Hostex is Africa's leading food, drink, and hospitality trade expo, showcasing the latest innovations and trends across six dedicated districts namely, Equipment Africa, Food & Drink Africa, Tea & Coffee Africa, Contract Furnishings Africa, Technology Africa, and Sustainability Africa

19 -20 February, 2024 The Sarit Expo Nairobi, Kenya

Center

Millenium Hall, Addis Ababa, Ethiopia

africa-agriexpo.com

www.afca.coffee/conference

AGRO PACK EXPO 2024

GULFOOD 2024

Gulfood serves as a premier destination for industry professionals seeking growth, innovation, and collaboration in the global F&B market 19-24 February, 2024 Dubai Expo Center www.gulfood.com 6

JAN/FEB 2024 | FOOD BUSINESS AFRICA

3-5 March , 2024 Sandton Convention Center, Johannesburg, South Africa www.hostex.co.za

SIAG 2024

International exhibition for the food and packaging industry in Algeria. AGRO PACK EXPO is the meeting point between professionals and players in the national and international agri-food and packaging industry 20 – 23 February, 2024 Exhibition Centre Pine Maritime SAFEX, Algiers, Algeria www.agropack-expo.com/ en/programmes.php

The SIAG exhibition brings together producers, industrialists and other stakeholders in the agribusiness sector, in order to present innovative solutions for the growth of the agrifood industry in Algeria

04 – 06 March, 2024 Oran International Convention Center, Algeria www.siagexpo.com

FOODBUSINESSAFRICA.COM

PROPAK EAST AFRICA

AGROFOOD NIGERIA

DJAZAGRO 2024

ProPak East Africa is the leading expo and conference for food processing, printing, packaging, and plastic professionals in East Africa. It promises to showcase wide range of products, equipment, and solutions from various suppliers in one place.

The 9th edition of Agrofood Nigeria will feature over a hundred exhibitors from Austria, Bulgaria, China, France, Germany, Ghana, India, Italy, the Netherlands, Nigeria, Poland, Spain, Taiwan, Tunisia, Türkiye, and Ukraine, showcasing tailored products and solutions for the Nigerian food and packaging market.

Djazagro is an unmissable event with an exhaustive international offering in 6 sectors of activities: Processing, filling & packaging, Bakery - Pastry, Food products & Beverages, Ingredients & Flavourings, Hospitality & Food service and Hygiene.

12-14 March, 2024 The Sarit Expo Center Nairobi, Kenya www.propakeastafrica.com

INTERNATIONAL FOOD & DRINK EVENT

It's the UK's largest food and drink event, bringing together buyers and suppliers across various sectors like retail, foodservice, and hospitality. It will attract over 1,500 suppliers showcasing their products, offering an opportunity to source new ingredients and discover innovative trends. 26-27 March, 2024

26 -28 March, 2024

April 22-25, 2024

The Landmark Events Centre, Nigeria

SAFEX Exhibition Algiers, Algeria

www.agrofood-nigeria.com

www.djazagro.com/en

AGRITECH ZAMBIA 2024

CONNECT WITH US!

Connect with us

Zambia's Leading Outdoor Agriculture Expo. Its provides a platform for farmers to learn from experts, network with peers, get inspired by leaders, and explore groundbreaking agriculture ideas 18 – 20 April, 2024

Food Business Africa Magazine

ExCel London

GART Research Zambia

www.ife.co.uk

www.agritech-expo.com

FOODBUSINESSAFRICA.COM

Park,

Centre,

Like Food Business Africa Magazine

JAN/FEB 2024 | FOOD BUSINESS AFRICA

NEWS UPDATES by www.FoodBusinessAfrica.com INVESTMENT

Cairo 3A to invest US$32M in Egypt’s poultry industry in 2024 EGYPT – Cairo 3A for Poultry, a subsidiary of the agri-food group Cairo 3A in Egypt, is set to inject US$32.3 million into the poultry industry with two significant investment projects in 2024. Ali El Gamil, CEO of Cairo 3A, revealed that the funds would be allocated to the construction of a poultry products processing plant and the establishment of new poultry fattening farms. Approximately US$26 million of the investment will go towards the construction of a poultry products

processing plant spanning 3 hectares in the Sharkia governorate. The remaining amount will be utilized to set up new poultry fattening farms, aimed at increasing bird production for slaughter. Ibrahim Wagdy, CEO of Cairo 3A for Poultry, saw the investments as crucial to consolidating the company’s position in the frozen and chilled chicken segment, where it currently holds around 25% of the market shares. “The strategic plan also includes doubling the market share in the processed poultry products segment to 10%.”

Aleph Farms receives approval to sell cultivated beef in Isreal ISRAEL - Israeli-cultivated meat producer Aleph Farms has received the world’s first regulatory approval for cellcultured beef, marking a milestone in the alternative protein sector. The approval came in the form of a ‘no questions’ letter issued for its consumer brand Aleph Cuts by the

Israeli Ministry of Health. It allows the producer to market its products – currently priced similarly to premium conventional beef – in the country, with plans to roll out at restaurants and, eventually, retailers. With the greenlight, Israel joins a very short list of countries to allow the

sale of cultured meat – only Singapore (Eat Just in 2020) and the US (Upside Foods and Eat Just in 2023) have done so. But these approvals were all done for cell-based chicken products, meaning Aleph Farms is the first company permitted to sell cultivated beef.

INVESTMENT

Ivory Coast inaugurates Afcott cashew nut processing factory to boost local processing COTE D ‘IVOIRE – The Ivorian Minister of Agriculture, Rural Development, and Food Production Kobenan Kouassi Adjoumani has inaugurated a new cashew nut processing unit in Loukoukro, near Yamoussoukro. Developed by Afcott Cashew Sarl, a subsidiary of the Kewalram Chanrai industrial group, the facility spans 20 hectares and boasts an initial processing capacity of 20,000 tonnes per year for 8

JAN/FEB 2024 | FOOD BUSINESS AFRICA

the production of cashew kernels. The company has ambitious plans to enhance the factory’s processing capacity to 50,000 tonnes by 2027. Fadiga Youssouf, the Purchasing Manager at Afcott, shared insights into their almond production goals, stating that they aim to commence with 4,000 tonnes in 2024 and reach 11,000 tonnes by 2027, aspiring to make a significant impact on both national and international markets. FOODBUSINESSAFRICA.COM

TAILOR-MADE SOLUTION AND EQUIPMENT PROVIDER Best Practice with Global Experience and Presence

Oilseeds, Oils & Fats

Starch & Derivatives

Bulk Material Storage and Handling

- 100-10,000 t/d Oilseed Preparation

- Corn Starch

- Grain Silo Storage and Handling

- 100-10,000 t/d Oilseed Extraction

- Wheat Starch

- Bulk Meal Storage and Handling

- 50 -3,000 t/d Crude Oil Refinery

- Glucose/Fructose/Maltose

- Bulk Meal Handling for Warehouse

- 50 -1,200 t/d White Flakes, SPI/SPC

- Lysine/Sorbitol/Citric acid

- Bulk Meal Bagging and Loading

- Oleo, HVO Pretreatment, Biodiesel

- Modified Starch - Cassava/Potato/Pea Starch

More than 1000+ plants installed in around 80 countries in the past 20 years Strategic partnership with world's Top 10 agriculture and food industry giants Headquarter and manufacture in China Headq with global presence.

info@myande.com myande@gmail.com Headquarter: Yangzhou City, China

Tel: +86-514-8784 9111

www.myandegroup.com

NEWS UPDATES

South Africa to resume meat exports to Saudi Arabia SOUTH AFRICA – South Africa will resume meat exports to Saudi Arabia, bringing an end to a 20-year ban after an outbreak of foot and mouth disease in Africa’s second largest economy. Matthew Karan, part-owner of Karan Beef, one of South Africa’s biggest meat producers said final approvals to start shipments of halaal cuts to the Middle Eastern nation are now in place. “The plan is to start exports in coming weeks,” he told reporters in Johannesburg Wednesday at a South Africa–Saudi Arabia Business Council briefing.

Jumia Foods ceases operations across Africa AFRICA – Pan-African e-commerce giant Jumia has announced the cessation of its food delivery service, Jumia Foods, in several key African markets. The company will cease operations in Nigeria, Kenya, Morocco, Ivory Coast, Tunisia, Uganda, and Algeria by the end of this month. The company noted that it will instead redirect its focus towards physical goods delivery and the expansion of its fintech platform, JumiaPay. “The more we focus on our physical goods business, the more we realize that there is huge potential for Jumia to grow, with a path to profitability,” Francis Dufay, CEO of Jumia, stated emphasizing the decision’s rationale. “The move aligns with the costcutting measures initiated by Dufay since February, including a 20% reduction in the workforce and relocating top management officers to operate from Africa instead of the UAE.”

JAN/FEB 2024 | FOOD BUSINESS AFRICA

INVESTMENT

Kenya earns US$1.05B from tea exports in 2023

KENYA – Kenya’s tea industry has defied global shocks, with earnings for the first 11 months of 2023 surpassing the total income for the entire year of 2022, reaching US$1.05 billion.

Data released by the Kenya National Bureau of Statistics (KNBS) on Tuesday revealed that this impressive growth was driven by increased export volumes and a significant boost from a weaker local currency. In 2022, Kenya earned US$860 million from the sale of 410 million kg of tea, but in the period between January and November 2023, earnings rose to US$1.05 billion from a volume of 511 million kg. Kenya’s favorable tea output conditions in 2023 were attributed to El Nino rains, as stated by the Tea Board of Kenya. The country is projected to harvest over 500 million kg in 2023, up from 450 million kg in 2022.

REGULATORY

Austria, France and Italy lead charge against lab-grown meat EU – Austrial, France, and Italy, along with nine other EU countries, are leading the charge against lab-grown meat with their delegation arguing that meat grown in a laboratory is a threat to “genuine food production methods”, Lab-grown meat “does not constitute a sustainable alternative to primary farm-based production”, and raises ethical, economic, social and public health questions that “are essential for the future society”, the note to the Council of Ministers, that was slated for discussion by EU agriculture ministers on 23 January. “These practices represent a threat to primary farm-based approaches and genuine food production methods that are at the very heart of the European farming model,” the document reads. While its title is “CAP’s role in safeguarding high-quality and primary

farm-based food production”, it mainly focuses on “cell-based food production practices”. The note is authored by the Austrian, French and Italian delegations and supported by those from the Czech Republic, Cyprus, Greece, Hungary, Luxembourg, Lithuania, Malta, Romania and Slovakia. FOODBUSINESSAFRICA.COM

NEWS UPDATES

MAFI to initiate Middle East’s largest food industries complex in Egypt EGYPT – The Middle East Agribusiness and Food Industries Company (MAFI) is set to establish the Middle East’s largest food industries complex in Egypt as part of the government’s efforts to enhance industrial capabilities and exports. The complex, located in Sadat City, will cover 154,000 square meters and produce up to 100,000 tons of food products annually in its initial stage. MAFI’s Board Chairman, Ahmed Abu Hashima, highlighted the project’s significance in creating over 7,000 direct and indirect jobs, contributing to economic growth. The complex aims to utilize advanced technology, with Luca Bordini, General

Manager of JBT, a US technology solutions provider, stating that it will be the largest and most advanced in the Middle East, exporting products globally. The complex will house five plants producing a variety of food products,

including orange concentrates, tomatoes, various fruits, and essential oils. It will also feature one of the world’s largest freeze-drying facilities and a plant for freezing fruits and vegetables.

ACQUISITION

Mauritius-based Crown Beverages to acquire Pepsi Bottler in Kenya As it expands influence to Kenya, Crown Beverages is expected to face stiff competition from Coca-Cola which dominates the carbonated drinks segment with a 93.9 percent market share. The operations is not that significant, controlling only 1.5 percent a distant third behind Nyeri-based Highlands Drinks Limited which has 3.6 percent of the soft drinks market in the country. KENYA – The Competition Authority of Kenya (CAK) has granted Crown Beverages Limited, a Mauritius-based company, unconditional approval for the acquisition of the entire issued share capital of Kenya Bottling Company Limited. Kenya Bottling Company is a locally incorporated entity which owns independent bottler for PepsiCo products within Kenya SBC Kenya. SBC has a bottling plant in Nairobi’s Baba Dogo Industrial Estate, which was opened in 2011. The plant has a capacity of 120,000 bottles per hour. The mauritious based company 12

JAN/FEB 2024 | FOOD BUSINESS AFRICA

is affiliated with Crown Beverages Limited, a Ugandan bottler that produces and markets Pepsi brands including Mountain Dew, Mirinda Fruity, Mirinda Orange, Mirinda Pineapple, Mirinda Green Apple, Evervess Tonic and Nivana flavoured waters. In Uganda, the company claims to have 57 key distributors, 100 depots, and an outlet universe of around 100,000 outlets. According to various sources, Crown Beverages has a significant presence in Uganda with its market share estimated between 33% (Statista) and 70% (PepsiCola website).

SBC KENYA HAS A BOTTLING PLANT IN NAIROBI'S BABA DOGO INDUSTRIAL ESTATE THAT HAS A CAPACITY OF 120,000 BOTTLES PER HOUR. FOODBUSINESSAFRICA.COM

AFRICA

MEAT & P ULTRY

EXPO

EASTERN AFRICA’S BIGGEST MEAT, POULTRY, FISH & SEAFOOD INDUSTRY TRADE SHOW Discover innovative products and the latest technologies and market trends in the meat, poultry, fish and seafood industry in Eastern Africa and globally.

www.africameatpoultryexpo.com

JUNE 12-14, 2024

Sarit Expo Centre, Nairobi, Kenya

NEWS UPDATES

Zambian Breweries commissions newly upgraded US$80M plant ZAMBIA – Zambia President Hakainde Hichilema has officially commissioned the Zambian Breweries Plc upgraded plant valued at US$80 million that aims to foster sustainable economic growth and create employment in the region. Zambian Breweries Plc is part of Anheuser-Busch InBev, the largest brewer in the world, with more than 400 beer brands and some 200,000 employees in over 50 countries. Zambian Breweries is one of the country’s oldest companies listed on the Lusaka Securities Exchange. It has long been a key player in Zambia’s economic landscape, contributing to the nation’s tax income, and is among the first to actively participate in national economic initiatives such as the Lusaka MultiFacility Economic Zone (MFEZ) programme. .

RETAIL

Carrefour pulls PepsiCo products in five EU countries over price hikes EU - The French supermarket chain Carrefour has said it will stop selling PepsiCo products in stores in five European countries because the global food company has put its prices up by too much. France kicked off the boycott campaign on 4 January and was then joined by Carrefour stores in Spain, Italy and Belgium. Carrefour extended the boycott of PepsiCo products to Poland, the fifth country to feel the impact of the companies’ dispute over prices. Europe is PepsiCo’s largest geographical market in terms of revenues, taking in brands such as Lay’s and Doritos snacks to 7Up and Pepsi beverages. The region contributed $12.7bn in revenue to the group total of $86.3bn, according to the company’s annual report for 2022. PepsiCo’s 2023 financial year ended on 30 December, so any impact on sales

is unlikely to be felt until at least the first quarter of the new year. PepsiCo has since responded to media queries, claiming in a statement: “We’ve been in discussion with Carrefour for many months and we will continue to engage in good faith in order to try to ensure that our products are available.”

INVESTMENT

Kenya to produce sugar from beets with opening of Ranges Sugar Factory

KENYA – In a significant stride towards enhancing Kenya’s sugar production capacity, Ranges Sugar Factory has been inaugurated in Wanjohi, Kipipiri 14

JAN/FEB 2024 | FOOD BUSINESS AFRICA

constituency, Nyandarua County. This privately owned sugar beet factory not only marks a historic milestone as the county’s first sugar production facility but also stands out as the first of its kind outside the Western, Nyanza, Rift Valley, and Coast regions. The decision to venture into sugar beet milling stems from the plant’s high sucrose concentration compared to traditional cane. Experts believe that if fully explored, sugar beet milling could be a gamechanger in bridging Kenya’s national sugar deficit. The sugar top variety, specifically chosen for Nyandarua, matures in 90-95

days with an impressive sugar content of 18%. Compared to sugarcane’s 7% sugar content, sugar beet offers a higher yield potential. Farmers can harvest the crop every five months, allowing for increased sugar production throughout the year. Currently, Kenya produces 600,000 tonnes of sugar annually, falling short of the 800,000 tonnes required for domestic consumption. To fill this gap, the country heavily relies on sugar imports. The establishment of Ranges Sugar Factory is a crucial step towards achieving self-sufficiency in sugar production. FOODBUSINESSAFRICA.COM

Dairy

MANUFACTURING AFRICA EXPO

JUNE 12-14, 2024 SARIT EXPO CENTRE, NAIROBI, KENYA

www.dairymanufacturingafrica.com

SCAN ME

AFRICA’S NO.1 DAIRY INDUSTRY TRADE SHOW & CONFERENCE Africa Dairy 2.0 - Taking Africa's Dairy Industry into the Next Level through Innovation & Sustainability

NEWS UPDATES

TRADE

Egyptian food manufacturers visit Kenya in search of trade opportunities

KENYA – A high-level delegation of leading Egyptian Food Manufacturers is presently on a visit to Nairobi, Kenya’s thriving business hub, from December 18 to 20. Their primary objective is to delve into potential trade collaborations and engage in crucial meetings with

AB InBev to invest US$48.14M in Karnataka brewery expansion INDIA - Anheuser-Busch InBev (Ab InBev), the world's biggest beer company, headquartered in Belgium, has offered to invest Rs 400 crore to expand its brewery operations in Karnataka, a statement from the state industries department said. Ab InBev India & South Asia President Kartikeya Sharma and Budweiser APAC chief legal and corporate affairs officer Craig Katerberg shared the information in a meeting with Industries Minister MB Patil at the World Economic Forum, Davos. The top executives told the minister that they find Karnataka to be the ideal location for expanding their company’s operations. 16

JAN/FEB 2024 | FOOD BUSINESS AFRICA

various business entities in the country. The delegation comprises key players in Egypt’s food industry, featuring major entities such as the Pasta and Concentrates giant, Egyptian Swiss, the Fruit juice processing expert, Juhayna Foods, the Snack manufacturing powerhouse, Edita Foods, and the

renowned tomato paste specialist, Agthia Foods. Among the noteworthy companies accompanying them are Regina Company for Pasta and Concentrates, Oils and Grains Company, Covertina, Harvest Foods, Badaway group, Solymar Food, Alnada, and Wadi Foods. The trade mission included visits to Kenya’s leading retail chain and an expo at the Serena Hotel where the delegation actively engaged in Business to Business (B2B) discussions with potential trade partners. Egypt’s Ambassador to Kenya, H.E Wael Nasr Eldin Attiya, graced the Serena Hotel event, extending a warm welcome to the delegation and underscoring the imperative for more robust business exchanges between Kenya and Egypt.

REGULATORY

Coca-Cola wins US$4.15M tax battle against Kenya Revenue Authority KENYA – The Kenya Tax Appeals Tribunal ruled in favor of Coca-Cola East and West Africa, ordering the Kenya Revenue Authority (KRA) to refund Kes670 million (US$4.15M). The tribunal held that the marketing and promotional services provided by the company to its foreign affiliate, The Coca-Cola Export Corporation (TCCEC), were subject to VAT at zero-rate, as they were considered exported services. KRA had issued an assessment of Kes502 million (US$3.11M) against the company, claiming that the services were locally consumed and subject to VAT. Coca-Cola East and West Africa however prevailed with its argument that it had a service agreement with TCCEC to provide marketing and

promotion services in Kenya and other Central and East African countries. FOODBUSINESSAFRICA.COM

Ghana’s Leading Exhibition for the Packaging, Processing, Print and Plastics Industries

23 – 25 APRIL 2024 @propakghana

@propakghana

www.propakghana.com

20+

2,500+ VISITORS

COUNTRIES REPRESENTED

120+

EXHIBITORS

ACCESS A NEW CUSTOMER BASE The largest manufacturing exhibition in West Africa is retuning to Accra in 2024 to serve as a platform for the manufacturing industries in Ghana and surrounding countries. Make valuable new business connections and grow your footprint with access to a verified audience of buyers seeking for the missing link in their supply chains. Bring your innovations to the forefront of thousands of industry professionals at Propak Ghana 2024

PAST VISITORS INCLUDED:

BOOK YOUR STAND NOW CONTACT US: Raukeeb Braimoh

FOODBUSINESSAFRICA.COM

Raukeeb.braimoh@ montgomerygroup.com +44 (0) 207 886 3028

JAN/FEB 2024 | FOOD BUSINESS AFRICA

NEWS UPDATES

Nestle to invest US$100M investment to double processing capacity in Vietnam VIETNAM – Nestle has announced an additional investment of US$100 million to double the processing capacity of high-quality coffee lines at the Nestle Tri An factory in the southern province of Dong Nai. This additional investment brings the total investment capital at the Tri An factory to over US$500 million. This additional investment aims to address the increasing demand for coffee, securing Vietnam’s position as a key player in high-quality coffee production and supply for both domestic and global markets.

Chobani ventures into coffee market with US$900M acquisition of La Colombe US – Chobani, renowned for its Greek-style yogurt, has acquired La Colombe, a prominent coffee business, for a staggering US$900 million in a significant move to expand its portfolio. La Colombe, with a presence across retail, cafes, foodservice, and direct-toconsumer channels, was acquired by Chobani through a US$550 million term loan and the exchange of Keurig Dr Pepper’s (KDP) minority equity stake in La Colombe for Chobani equity. KDP had previously invested US$300 million for a 33% stake in La Colombe earlier this year, becoming its second-largest investor. Chobani has been diversifying its portfolio over the past four years, extending its reach beyond yogurt into categories such as oat milk, cold-brew coffee, probiotic beverages, and coffee creamers. 18

JAN/FEB 2024 | FOOD BUSINESS AFRICA

INVESTMENT

Egypt’s sweet and chocolate company Covertina to invest US$6.5M in new factory EGYPT – Egyptian confectioner Eastern Co. for Manufacturing Sweets & Chocolate (Covertina) has announced plans to commission a new factory in the second half of 2024, with a total investment of 200 million pounds (US$6.5M). The revelation was made by Raafat Salam, the company’s president, during the 2023 edition of the International Exhibition dedicated to agri-food industries (Food Africa) held from December 12 to 14 in Cairo. The new investment aligns with Covertina’s ambitious goal of shipping half of its production to international markets by the end of 2024. Covertina’s manager expressed the company’s intent to enter new markets in Africa, specifically targeting countries such as Kenya, Senegal, and Cameroon. Founded in 1963, Covertina specializes in the production of a diverse range of confectionery items, including

chocolate, biscuits, wafers, and chocolate cakes. Currently exporting to approximately 17 countries across Africa, the Middle East, North America, and Europe, the company’s expansion plan reflects a positive outlook for the confectionery industry.

INVESTMENT

Nongfu Spring to invest US$703M in mega bottling facility in China

CHINA – Chinese bottled water giant, Nongfu Spring, is embarking on a substantial investment of 5 billion yuan (approx. US$703 million) for the establishment of a new factory in Jiande

City, Zhejiang Province. Nongfu Spring is renowned for manufacturing a diverse range of packaged beverage products in China, including drinking water, tea, juices, and functional beverages. Its new project, slated to unfold in two phases over five years, will include production, processing, and manufacturing, aiming to create an expansive industrial base for the production of drinking water and various beverage products. The factory, strategically located in Jiande City’s Chengnan New District, will span an impressive total land area of approximately 666,667 square meters once fully completed. FOODBUSINESSAFRICA.COM FOODBUSINESSAFRICA.COM

Afmass

info@fwafrica.net +254 725 343932

FOOD EXPO

www.afmass.com

Transforming Africa’s Food Systems

SCAN ME

Afmass

NIGERIA

FOOD EXPO SEPTEMBER 17-19, 2024

Afmass

UGANDA NIGERIA

Africa’s Largest Food Manufacturing, Retail & HORECA Industry Trade Shows SIX PAVILLIONS THAT COVER THE FOOD INDUSTRY FROM A-Z

FOOD EXPO SEPTEMBER 3-5, 2024

UGANDA

KENYA

Afmass FOOD EXPO Eastern Africa

JUNE 12-14, 2024

AFRICA

TEA, COFFEE & C COA EXPO

NEWS UPDATES

Kenya spirits imports decline as higher taxes hit demand taxes with import duty raised from 25 to 35 percent according to Eric Githua, who is the chairperson for the Alcoholic Beverages Association of Kenya (Abak). Additionally, in the 13 months to November 2021, excise duty on spirits was increased three times, explaining the drop in imported spirits, which includes international premium spirits. The decline in demand for spirits reverses an earlier trend where they had become popular among revelers. Mr Githua noted that even before the pandemic, there was a significant shift from other types of alcohol such as beer and wines to spirits. “And the main reason was because of affordability,” Mr Githua said.

KENYA - Consumption of spirits continued to fall following the end of the Covid-19 pandemic restrictions amid higher taxes on international premium drinks. Data from the Kenya National Bureau of Statistics (KNBS) shows that imported spirits —including brandy, gin, whiskey and rum—dropped from an all-time high of 16.3 million litres at the height of Covid-19 pandemic in 2020 to 13.2 million litres in 2022, reflecting a major shift in drinking habits in the postlockdown environment. The drop in imported spirits, which includes mostly premium liquor –such as Scotch Whisky— in the post-lockdown period mainly due to a sharp increase in

MARKET UPDATE

Kenya earns US$155M from coffee sales amid increased production and reforms

KENYA – Coffee farmers in Kenya earned a remarkable Kes24.8 billion (US$155M) from the sale of coffee in the past year, as reported by the Nairobi Coffee Exchange (NCE). According to the report, the cooperative societies and estates played a vital role in achieving this milestone, 20

JAN/FEB 2024 | FOOD BUSINESS AFRICA

selling 635,905 bags of produce out of deliveries totalling 729,511 bags through the NCE. The increase in coffee sales between the periods of 2022/2023 and 2023/2024 can be attributed to the high production levels of the commodity. Despite a temporary setback between August 15 and September 30, 2023, when farmers withheld their produce due to confusion surrounding the implementation of coffee reforms, the sector rebounded, with the NCE currently accommodating an average of 20,000 bags of coffee weekly. A notable highlight in the coffee industry was the auction held on December 5 last year, where the Nairobi auction registered an impressive 94% in sales. A total of 9,730 bags out of 10,372 bags were sold, earning farmers Kes448.3 million (US$2.8M). The New Kenya Planters Cooperative Union (NKPCU) secured Kes152 million

(US$950,000), while Alliance Berries Limited garnered Kes94.1 million (US$588,125). The positive trend continued with 75% of buyers participating in the auction throughout the year, showcasing a steady improvement from October 1, 2023.

COOPERATIVE SOCIETIES AND ESTATES DELIVERED 635,905 BAGS OUT OF THE 729,511 BAGS THAT WERE SOLD AT THE NARIOBI COFFEE EXCHANGE IN THE PAST YEAR.

FOODBUSINESSAFRICA.COM

AFRICA

www.africafoodsafetysummit.com

Food Safety

info@fwafrica.net

SUMMIT

+254 725 343932

SCAN ME

AFRICA

Food Safety SUMMIT

Western Africa Edition | Lagos, Nigeria

SEPTEMBER 17-19, 2024

NIGERIA

Africa's No.1 food safety and quality conferences and trade shows

AFRICA

Food Safety SUMMIT

Eastern Africa Edition | Kampala, Uganda

SEPTEMBER 3-5, 2024

NEWS UPDATES

Tanzania tea industry receives a boost with opening of Sakare Specialty Tea Company TANZANIA – Tanzania’s Sakare Specialty Tea Company has officially been inaugurated in the Bungu Tanga region, bringing an air optimism in the country’s burgeoning tea sector. The facility is set to boost Tanzanian tea industry by stimulating production, enhancing value addition for tea, and increasing revenue from tea sales. Kazi Yetu Limited CEO, Linus Ndongwe, commended the launch, recognizing its potential to enhance value addition, job creation, and the quality of farmers’ lives, thereby increasing competitiveness in the global market. Tanzania’s agriculture minister, Mr. Hussein Bashe, while attending the launch outlined the transformative measures that the country is taking to earn more from its tea produce.

ACQUISITION

JDE Peet’s strengthens global operations with acqusitions in US and Brazil AMERICAS – Netherlands based multinational beverage company JDE Peets has strengthened its global presence with acquisitions in Brazil and the United States. In Brazil, the company has recently completed the acquisition Maratá, a coffee and tea business, from JAV Group. The transaction includes the Café Maratá and Chá Maratá retail packaged coffee and tea brands, as well as Maratá’s two manufacturing plants in northern Brazil. Meanwhile in the United States, the company signed a US$260M deal with American coffee company and coffeehouse chain Caribou Coffee. The deal includes a long-term global licensing agreement to manufacture, market and sell Caribou consumer and foodservice coffee products. The transaction, excluding Caribou coffeehouses, will also see JDE Peet’s acquire Caribou’s roasting operations in

Minneapolis, Minnesota. The two companies have also reached a long-term strategic arrangement under which JDE Peet’s will supply coffee products for sale in Caribou’s coffeehouses.

ACQUISITION

Vision Partners to acquire distressed South African sugar miller Tongaat Hulett SOUTH AFRICA – After an extensive Business Rescue Process, the financially distressed JSE-listed sugar producer and property developer, Tongaat Hulett, may finally see resolution. Instead of facing liquidation – an outcome that would have adversely affected employees, farmers, and unsecured creditors – the venerable century-old sugar miller is set to be acquired by the Vision Group. Vision Partners, comprising Guma Agri & Food Security Group, Zimbabwe’s Remogogoo Investments, the Terris Fund, and Pakistani sugar giant Almoiz, has submitted a comprehensive business rescue plan. 22

JAN/FEB 2024 | FOOD BUSINESS AFRICA

The plan entails the acquisition of Lender Group claims and security, totaling about R8 billion, with approximately R4.1 billion of these claims to be converted into new equity in Tongaat Hulett Limited. During a meeting with creditors, the Vision Partners’ business rescue plan received overwhelming approval, with 98.51% of attendees voting in favor and only 1.49% against. This approval grants the partners a significant 97.3% ownership stake in the company, while existing shareholders retain a 2.7% interest in Tongaat equity following the debt-to-equity conversion.

FOODBUSINESSAFRICA.COM

CO-LOCATED WITH:

AFRICA

Fresh Produce EXPO

Afmass FOOD EXPO Transforming Africa’s Food Systems

JUNE 12-14, 2024 – Sarit Expo Centre, Nairobi, Kenya

AFRICA’S NO.1 FRESH PRODUCE INDUSTRY TRADE SHOW Fresh Produce Market

Logistics & Mobility

WHAT’S ON SHOW AT THE EXPO The Africa Fresh Produce Expo will consist of the following Sections:

Machinery & Technology

Agro-Inputs & Chemicals

Services & More

www.africafreshproduceexpo.com

SCAN ME

PACKAGING NEWS

Rwanda, Nigeria, UAE introduce various forms of plastic bans

MEA – State governments in Rwanda, Nigeria, and UAE have outlined new laws intended to limit the use of single plastic, signalling a heightened shift towards regulations of the sector in the region. Dubai, an emirate in the United Arab Emirates, was among the first of the three nation mentioned in this report, imposing a ban on plastic bags from 1

Coca-Cola asks for 10-month period to comply with glass bottle labelling directive KENYA – Coca-Cola Beverages Kenya has filed an application with the High Court, requesting a 10-month extension to comply with a previous decision that mandates the inclusion of nutritional information and customer care details on its glass bottles. Justice Onyiego’s directive in 2018 required Nairobi Bottlers and Coca-Cola Central, East and West Africa Limited to include nutritional information, storage directions, and customer care contact details on glass bottles of Coca-Cola, Fanta, Krest, Stoney, and Sprite brands. In its application, CCBA Kenya informed the court that it had already engaged with the Kenya Bureau of Standards to approve proposed designs, estimating the cost of this venture to be at least KES8 billion (US$50.54mn). 24

JAN/FEB 2024 | FOOD BUSINESS AFRICA

January 2024. The ban encompasses a wide array of single-use disposable products like food delivery packaging, robust plastic bags, and various plastic containers irrespective of their material composition. Exceptions to the ban include specific items such as waste bags and thin film rolls designated for packaging meat, vegetables, and other food items. Additionally, products intended for export are exempted. Meanwhile the government of Lagos State in Nigeria has imposed a ban on the usage and distribution of polystyrene and other single-use plastics, citing significant environmental concerns. The ban follows the formation of a ‘Circular Nigeria Committee’ by the federal government to champion the phasing out single-use plastics in Nigeria. Rwanda’s Inspectorate, Competition,

and Consumer Protection Authority (RICA) followed suit with its ban of paper bags and non-biodegradable sacks for meat packaging across the country. The authority is encouraging consumers to opt for reusable materials such as plastic boxes, dishes, or other containers to improve meat safety.

THE GOVERNMENT OF LAGOS STATE HAS IMPOSED A BAN ON USAGE AND DISTRIBUTION OF SINGLE-USE PLASTICS.

Skanem takes delivery of new BOBST Master M5 Flexo press

KENYA – Skanem Interlabels Africa, a leading multinational labels manufacturer, has taken delivery of

BOBST Master M5 Flexo press. According to BOBST, the Master M5 has been designed to support digital workflow by comprising integrated printing and converting technologies. The Switzerland-based machinery and services supplier to the packaging industry further noted that the press delivers quality labels and ensures consistency at a low operating cost. Master M5 will help Skanem to print a wide range of substrates such as pressure-sensitive labels, biaxially oriented polypropylene (BOPP) wraparound labels, shrink sleeve labels, as well as in-mould labels. Skanem Africa managing director Sachen Gudka said: “With current packaging trends, run lengths are getting shorter, and SKU [stock-keeping unit] proliferation is getting larger. FOODBUSINESSAFRICA.COM

Nespresso launches recycling center in South Africa SOUTH AFRICA – Nespresso, a global leader in coffee machines and capsules, has inaugurated a recycling center in Cape Town, covering the entire Western Cape region. This initiative, developed in collaboration with Oricol, a South African waste management company, underscores Nespresso’s unwavering commitment to sustainability and environmental responsibility. Gabriel Nobre, the newly appointed CEO of Nespresso

South Africa, expressed the company’s dedication to sustainability through their enduring partnership with Oricol. “Annually, we recycle an impressive amount of approximately 135,000 kilograms (135 tons) of used coffee capsules. This demonstrates our dedication to reducing waste and promoting a circular economy,” Nobre said in a LinkedIn post. “We are incredibly proud of this achievement and the positive impact it has on the environment. Nespresso remains committed to driving sustainability initiatives and finding innovative solutions to reduce our ecological footprint.”

CGCSA registers as Producer Responsibility Organization SOUTH AFRICA – The Consumer Goods Council of South Africa (CGCSA) has been successfully registered as a Producer Responsibility Organization (PRO) in three categories: paper and packaging, lighting, and electronic equipment.

As a PRO, CGCSA now has the framework within which it will play a socially responsible role by involving its members, local communities, and other stakeholders to promote waste reduction and recycling. Through the PRO, the organization will coordinate waste and recycling

initiatives by its member companies through the Extended Producer Responsibility (EPR) regulation which. The EPR regulation covers all packaging and identified products that will need to be collected in an organized manner, to meet the regulated recycling targets.

Nestlé Nigeria pledges to increase recyclable and reusable packaging by 2025 NIGERIA – Nestlé Nigeria has pledged to package more of its products in recyclable and reusable packaging by 2025. This was revealed by the Managing Director/CEO, Nestlé Nigeria, Mr. Wassim Elhusseini during the launch of the New Nestlé Pure Life Bottles made with 50% rPET, Elhusseini, represented by Victoria Uwadeka, Corporate Communications, Public Affairs, and Sustainability Lead, said the company will prevent their packaging, especially plastics, from ending up in landfills, oceans, lakes, and FOODBUSINESSAFRICA.COM

rivers. “Achieving fifty percent rPET in our Nestlé Pure Life Bottles is a significant milestone for us. “It aligns with our goal to eliminate our packaging, including plastics, from ending up in landfills or water bodies. Since 2018, Nestlé Nigeria has strived for 100% plastics neutrality by 2025, following a ‘one tonne in, one tonne out’ principle,” Elhusseini said.

JAN/FEB 2024 | FOOD BUSINESS AFRICA

FOOD SAFETY NEWS

Nigeria approves drought-tolerant, insect-resistant maize varieties its 33rd meeting held at the National Centre for Genetic Resources and Biotechnology (NACGRAB) in Ibadan. These maize varieties, developed by the Institute for Agricultural Research (IAR) Samaru, Ahmadu Bello University Zaria, have been engineered to be drought-tolerant while simultaneously resisting stem-borer and fall armyworm infestations. The result? A potential yield advantage of up to 10 tons per hectare under optimal agronomic practices, significantly surpassing the national average for similar hybrids, which stands at six tons per hectare.

NIGERIA – The Federal Government of Nigeria has given the green light for the commercial release of genetically modified maize varieties designed to withstand drought and fend off pests. The four newly approved varieties, SAMMAZ 72T, SAMMAZ 73T, SAMMAZ 74T, and SAMMAZ 75T, collectively known as TELA maize, promise a revolutionary leap in agricultural productivity. Chaired by Prof Olusoji Olufajo, the National Committee on Naming, Registration and Release of Crop Varieties, Livestock Breeds/Fisheries (NCNRRCVLF) granted approval at

Bio Foods leads initiative to combat aflatoxin threat in Kenyan dairy industry the initiative’s strategic approach, emphasizing the imperative to equip Kenyan dairy farmers with knowledge and tools to produce safer, higherquality milk. The “Safe Milk Kenya” project adopts a holistic approach, addressing aflatoxin contamination not only along the milk value chain but also empowering the hands that nurture these products – the Kenyan farmers. We intend to ensure every Kenyan has access to safe food,” Ambassador Whitman said. KENYA – In an alliance to combat the silent but deadly menace of aflatoxins, Bio Food Products Ltd (Bio Foods) and USAID have unveiled the “Safe Milk Kenya” partnership, an initiative aimed at safeguarding consumer health and fortifying the economic resilience of Kenyan dairy farmers. This collaborative effort responds to the alarming reality that over 80% of dairy products in Kenya harbor aflatoxins, imperceptible toxins linked 26

JAN/FEB 2024 | FOOD BUSINESS AFRICA

to a significant cancer burden in the country. Launched in the presence of top government officials, including US Ambassador to Kenya, Meg Whitman and Managing Director Kenya Dairy Board Margaret Kibogy, the partnership has received a commitment of US$240,000 from USAID, complemented by Bio Foods’ investment of nearly US$300,000. Ambassador Whitman underscored

THE SAFE MILK KENYA PROJECT HAS RECEIVED A COMMITMENT OF US$240,000 FROM USAID. FOODBUSINESSAFRICA.COM

Kenya to co-host 54th CODEX Committee on Food Hygiene session KENYA – In a decisive move to fortify its commitment to food safety, Kenya is set to co-host the 54th session of the CODEX Committee on Food Hygiene (CCFH) alongside the USA from March 11-15, 2024. This milestone event will be preceded by the commemoration of World Food Safety Day in June, positioning Kenya at the forefront of global initiatives to ensure the safety and quality of food. CCFH54, scheduled to be held in Nairobi, will address

critical aspects of food hygiene on a global scale. The Codex Committee on Food Hygiene plays a pivotal role in drafting provisions that impact food hygiene universally, considering microbiological risk assessments, and addressing specific hygiene challenges assigned by the Codex Alimentarius Commission. Agenda items for the 54th Session include matters referred by the Codex Alimentarius Commission, updates from FAO and WHO, guidelines for controlling Shiga Toxin-Producing Escherichia coli (STEC), and discussions on various food hygiene control measures.

Nanotechnology poised to revolutionize Salmonella detection in poultry industry

New study reveals nanoplastics in bottled water

U.S – Poultry producers may soon have a powerful ally in the fight against Salmonella contamination, thanks to a technology utilizing magnetic nanoparticles (MNPs) and gold nanoparticles (GNPs). This innovation, presented at the 2023 Poultry Tech Summit, promises to streamline and expedite the detection process, potentially transforming food safety practices in the poultry supply chain. The existing methods, including culturing, PCR amplification, and rapid antibody tests, face limitations due to the time-consuming sample enrichment process, leading to delays in obtaining results. The newly introduced technology integrates MNPs and GNPs, strategically deployed throughout the poultry supply chain. MNPs play a pivotal role by concentrating bacterial cells from large-volume samples using a magnet. Simultaneously, GNPs are engineered to react selectively to Salmonella-specific DNA. The GNPs are combined with

U.S – Researchers from Columbia University have delved into the microscopic world of nanoplastics, uncovering alarming levels of these minuscule particles in bottled water. Using cutting-edge technology, the study exposed an average of 240,000 detectable plastic fragments per liter—10 to 100 times higher than previous estimates based on larger sizes. Nanoplastics are so tiny that they can bypass the body’s natural defenses, infiltrating the bloodstream and traveling to vital organs such as the heart and brain. Unlike the larger microplastics, nanoplastics can even traverse the placenta, posing potential risks to unborn babies. This revelation has sparked a race among medical scientists to explore the unknown effects on various biological systems. Lead author of the study, Naixin Qian, a Columbia graduate student in chemistry, explained that this research opens a window into an uncharted territory, allowing scientists to investigate a world previously concealed from scrutiny.

FOODBUSINESSAFRICA.COM

oligoprobes and DNA from the sample. Following a heat treatment, an acid is introduced to induce a color change reaction. In the absence of Salmonella DNA, the solution turns purple within approximately 10 minutes. However, if Salmonella is present, the solution retains its original color.

JAN/FEB 2024 | FOOD BUSINESS AFRICA

APPOINTMENTS Update Crown Beverages taps Paddy Muramiirah to lead entry into Kenya KENYA – Mauritious-based Crown Beverages has tapped Paddy Muramiirah, a Ugandan executive famous for leading a transformative 7 years at Crown Beverages in Uganda, to lead its charge into the Kenyan market, CEO East African Magazine has reported. The announcement comes shortly after the Competition Authority of Kenya gave the greenlight for the Mauritius based company to acquire Kenya Bottling Company (KBC) which owns SBC Kenya, the local independent bottler for PepsiCo.

Paddy Muramiirah joined Crown Beverages in 2005 and went on to become one of the most successful CEOs the company has ever had since its privatization in 1993. Given that Pepsi has a 1.5% market share in Kenya, Crown Beverages will need Muramiirah's prowess and experience to carve out a significant share in a Kenyan market that is disproportionately dominated by CocaCola. 28

2024 | FOOD BUSINESS AFRICA JAN/FEB 2023

Diageo appoints John Musunga as Managing Director for South, West and Central Africa

AFRICA – John Musunga, has been appointed to head Diageo Africa’s newly formed South, West and Central Africa (SWC) market. Mr Musunga assumes his new role barely a year into his stint as the CEO of the British multinational's Nigerian subsidiary Guinness Nigeria. He joined Guinness Nigeria from Kenya Breweries where he served as Managing Director since March 2021. Musunga who also serves as a nonexecutive Director at East African Breweries Limited (EABL), is now set to assume the leadership role at Diageo SWC as the Managing Director, based in London. In a communique, Diageo Africa’s President and Chief Commercial Officer, Mr Dayalan Nayager, revealed that the the newly formed SWC business market will comprise two territories covering Southern Africa and the Indian Ocean and West and Central Africa, including the businesses in Ghana, Cameroun, Ethiopia, South Africa, Seychelles, among others.

Adebayo Alli appointed Managing Director of Guiness Nigeria NIGERIA – The Board of Guinness Nigeria Plc has appointed Adebayo Alli as its new MD and chief executive officer with effect from January 1, 2024. This appointment makes Alli, the first Nigerian to hold the position since 2014 when Seni Adetu, stepped down as the company’s MD/chief executive officer. A mechanical engineer by training, Mr. Alli has been with Diageo since 2005 when he joined the British multinational as a Packaging Operations Support Manager He has held a variety of leadership roles, including project lead for a business transformation project in Meta Abo Brewery Limited, Ethiopia and most recently as the Commercial Director of Guinness Nigeria.

“He is a well-rounded executive with almost two decades of broad experience and leadership across supply chain, manufacturing, program management, and sales,” Diageo said in a statement. FOODBUSINESSAFRICA.COM

Tongaat Hulett appoints Rob Aitken as interim CEO

SOUTH AFRICA – Tongaat Hulett’s current chief financial officer Rob Aitken, has been appointed interim CEO of the financially distressed sugar company, starting in March 2024. Aitken – a chartered accountant – is set to take over the reins from current interim CEO Dan Marokane, who is the confirmed incoming CEO at embattled power utility Eskom. Tongaat Hulett confirmed Aitken’s appointment in a Sens statement on Thursday, further noting that Marokane will stay on the board until the end of next month to ensure a smooth transition period. “The company and the BRPs would also like to wish Rob all the best in his new appointment and commit to providing him with the full support required in the journey that lies ahead,” read a statement from Tongaat. Aitken’s appointment comes just days after a business rescue plan for the suspended JSE-listed company was approved by creditors. Last week, creditors voted ‘overwhelmingly’ in favour of Robert Gumede’s Vision Group’s bid, meaning that now it’s up to business rescue practitioners to implement the rescue plan successfully. FOODBUSINESSAFRICA.COM

Daybreak Farms appoints Richard Manzini as CEO SOUTH AFRICA – Daybreak Farms, a leading integrated poultry producer in South Africa, has announced the appointment of Richard Manzini as its Chief Executive Officer Manzini, a seasoned investment professional with a notable track record, brings extensive experience from his tenure at the Public Investment Corporation (PIC), one of Africa’s largest asset management firms. Vuyelwa Matsiliza, Chairperson of Daybreak Farms, expressed confidence in Manzini’s ability to lead the company through these challenges, citing his past contributions to stability and growth in the agricultural sector. “Manzini’s qualifications include a B.Bus.Science from the University of

Tanzania Breweries appoints Michelle Kiplin as new Managing Director

– Tanzania Breweries Limited (TBL), a subsidiary of AB InBev, has appointed Michelle Kiplin as the new Managing Director marking the first time in the company’s history that a woman has held the top position. Michelle brings a wealth of experience spanning over 19 years with AB InBev, where she has demonstrated expertise and milestones on the African continent. She joins TBL from her previous role as managing director Zambia Breweries Ltd. “Ms. Kilpin brings a wealth of invaluable experience, with over 19 years at our parent company, ABInBev, where she has consistently demonstrated exceptional expertise and achieved remarkable milestones across the African continent,” stated TBL. During her tenure, she played a pivotal role in achieving topline growth and market share within the industry. TBL’s portfolio includes, Safari Lager, Kilimanjaro Premium Lager, Ndovu Special Malt and Konyagi, Castle Lager, Castle Milk Stout, Castle Lite, Peroni and Redds Premium Cold.

TANZANIA

Cape Town, LLB from Unisa, MBA and MMFI from Wits University, and an MSc from the University of Pretoria,” he highlighted. “His hands-on corporate farming approach, spending significant time in plants and on farms, positions him well to navigate the complexities facing Daybreak Farms.”

JAN/FEB2023 2024| |FOOD FOODBUSINESS BUSINESSAFRICA AFRICA JAN/FEB

NEW FOOD PRODUCT INNOVATIONS

NESTLÉ MAGGI Soya Chunks Nestlé has introduced Maggi Soya Chunks, a tasty, affordable, plant-based meat alternative in Central and West Africa markets. Derived from soy, each package reportedly offers ample protein to serve up to eight individuals. In an effort to combat prevalent micronutrient deficiencies in the region, Nestlé has fortified these soya chunks with essential iron and zinc.

www.nestle.com

DARLING BREW Gluten-free lager South African craft beer company Darling Brew recently released a gluten-free lager called "Break Free," which is brewed with sorghum and millet instead of barley. Darling brew says that this innovative beer, which took almost a year to complete, caters to those with gluten sensitivities while still offering a crisp, refreshing taste.

www.darlingbrew.co.za

JESA FARMS Lactose-free dairy and fruit juice blend Jesa Farm Dairy, a leading name in Ugandan dairy, has unveiled a refreshing innovation – JESA JUS, a delicious blend of lactose-free dairy and fruit juice. Packaged in sleek 200ml aseptic cartons, JESA JUS comes in three tantalizing flavors: vibrant mango, tropical pina colada, and the intriguing "Cocktail Magic," a unique blend curated by Jesa itself.

www.jesa.co.ug 30

JAN/FEB 2024 | FOOD BUSINESS AFRICA

FOODBUSINESSAFRICA.COM

DUCHESS DRINKS RTD wine spritzer The Duchess drink company, a South African alcohol producer, has launched a new wine based RTD dubbed Cape Spritz. According to the company, Cape Spritz is a refreshing wine spritzer made from a combination of Swartland rose, sparkling water, and a natural peach extract. Having only 5 per cent ABV, the new drink is said to be low in sugar and calories, therefore suitable for the calorie-conscious consumer.

www.duchesscocktails.com

KENYA BREWERIES Flavoured Beer Kenya Breweries has unveiled its latest creation, Tusker Ndimu, a vivacious lemon-flavored beer poised to tantalize the palate with a burst of citrusy delight. This innovative libation seamlessly merges the refreshing crispness of a lager with the the zingy flavor that is a big part of Kenyan culture. Available in sleek 300ml glass bottles, Tusker Ndimu is available in all leading liquor stores across the country

www.eabl.com

ROBBERG DISTILLERY Flavoured Gins Embracing innovation, Robberg Distillery has introduced two distinctive gins specifically tailored for the South Africa market: Olive Gin and Cape Malay Gin. Crafted with a diverse selection of botanicals, the Olive Gin comprises olives, rosemary, basil, thyme, citrus, coriander, and juniper. Conversely, the Cape Malay Gin exudes a distinctive aroma drawn from an equally diverse blend of botanicals.

www.robbergdistillery.co.za FOODBUSINESSAFRICA.COM

JAN/FEB 2024 | FOOD BUSINESS AFRICA

TRUFOODS Life’s Variety for a Healthy Society

MY COMPANY PROFILE: TRUFOODS

Owners of Zesta , Choco Primo, Kenylon and Golden Biscuits brands, TruFoods has shown us over the past 60+ years that its packed with a vast variety of nutritious pastes, jams, sauces, peanut butter, and more, since its establishment in 1985 under the leadership of Dr. Jayantilial Nemchand Shah. Food Business Africa sat down with the current CEO, Sagar Malde to discuss further on TruFoods’ history, manufacturing, trials, achievements, and future plans. By Paul Ongeto

e arrived at TruFoods, along Jogoo Road and took a moment to look around, only to see stacks of different raw materials which were perhaps in some of the highest quality form we’ve seen in a while. This is no real surprise, considering the fact that TruFoods’ products are oriented towards its large consumer base which stretches across Kenya and beyond.

AUG/SEP 2023 | FOOD BUSINESS AFRICA

Afterwards, we were welcomed by a warm receptionist before being guided into the boardroom where we met the current CEO, Mr. Sagar Malde. A friendly young man who chuckled with us as we shared a few pleasantries, effortlessly expressing just as much warmth as the receptionist had done earlier. Immediately, we felt right at home! BEFORE TRUFOODS THERE WAS PURE FOODS TruFoods was founded in 1928 under the name of “Pure Foods”. In 1958, the company under the leadership of Dr. Jayantilial Nemchand Shah— who had a PhD in Food Science and Technology, changed its name to TruFoods. The year 2005 witnessed the passing of Dr. Jayantilial, a pivotal moment that wasn't just the end of an era, but a springboard for a new chapter for Tru Foods. The company, then nestled in its Nairobi-based Jogoo Road home, found itself under the stewardship of the Malde family, who harbored grand ambitions. Under their visionary leadership, Tru Foods embarked on a strategic acquisition spree. In 2006, Choco Primo's delectable drinking chocolate joined the Tru Foods family, followed

FOODBUSINESSAFRICA.COM

by Golden Biscuits in 2017. These bold moves solidified Tru Foods' position as a leader in Kenya's dynamic fast-moving consumer goods market and further extended their presence on pantry shelves across the nation. Today, TruFoods stands as a culinary powerhouse, wielding a diverse portfolio of brands that tantalize taste buds in Kenya and beyond. Zesta, their flagship brand, reigns supreme in the realm of spreads, with its delectable jams, peanut butter, and honey. But Zesta's culinary prowess extends far beyond mere spreads, as it also offers premium Ketchup, tomato sauce, hot and sweet sauce, icing sugar, and vinegar, each crafted with the same passion and expertise that has made Zesta a household name. Kenlyon, another Tru Foods brand, takes center stage in the canned vegetable arena with its various offering that include githeri, baked beans in tomato sauce, and tomato paste. Gilda, another Tru brand, is a main stay in many homes with its exquisite baked beans in tomato sauce, tomato paste, and concentrated tomato puree. Golden, a whimsical delight, takes biscuit aficionados on a journey of pure indulgence. Its diverse assortment of butter cookies, coconut cookies, digestive, and shortcake caters to every palate, ensuring that every treat is a moment of pure bliss. TruFood’s Sunfresh brand has earned a reputation for its high-quality, affordable tomato sauce. After getting settled with Mr. Sagar Malde, we asked him to tell us more about himself, his history, and his passions. He smiled enthusiastically before embarking with us on his life’s story. Born and raised in Mombasa; he studied Mathematics and Economics in LSE (London School of Economics and Political Science) before becoming an investment banker in London. He returned to Kenya and found himself in the vegetable oil industry working under Pwani Oil then later traveled to Uganda to set up a new entity and settled there for three years. It was in September of 2021 that he joined TruFoods as the CEO. “My passion has always been mathematics because I was good at numbers and that’s why I studied Mathematics and Economics. The passion grew into numbers which followed with investment banking,” said Mr. Malde. Mr. Malde believes that his passion for and knowledge of mathematics has led him to the position that he is in today. It’s enabled him to work in an industry with a diverse number of challenges, scenarios, recipes, and the likes; all of which involve working with numbers. “The reason why I love manufacturing is because I get to work with different types of people from production operations, to finance, sales, marketing, and ICT. This challenges me every day, and that’s the reason why I love doing what I’m doing today.” WHAT MAKES TRUFOODS SO SPECIAL? “I feel TruFoods stands at a unique place today in the market in Kenya, especially from all other competitors. The reason why is because we are very consistent with our quality,” said Mr. Malde. At TruFoods, quality starts right from the source. This means that the company only sources materials from suppliers who meet high-quality standards. This helps to ensure that FOODBUSINESSAFRICA.COM

SAGAR MALDE CEO, Trufoods Born and raised in Mombasa, Kenya, Sagar Malde studied Mathematics and Economics at the London School of Economics and Political Science before becoming an investment banker in London, UK. He returned to Kenya and found himself in the vegetable oil industry working under Pwani Oil Industries, then later moved to Uganda to set up a new entity and settled there for three years. It was in September of 2021 that he joined TruFoods as the CEO. “My passion has always been mathematics because I was good at numbers and that’s why I studied Mathematics and Economics. The passion grew into numbers which followed with investment banking,” said Malde. Malde believes that his passion for and knowledge of mathematics has led him to the position that he is in today. It’s enabled him to work in an industry with a diverse number of challenges, scenarios, recipes, and the likes; all of which involve working with numbers. “The reason why I love manufacturing is because I get to work with different types of people from production operations, to finance, sales, marketing, and ICT. This challenges me every day, and that’s the reason why I love doing what I’m doing today.” JAN/FEB 2024 | FOOD BUSINESS AFRICA

MY COMPANY PROFILE: TRUFOODS

ABOVE: A shelf

showecasing TruFoods extensive range of products and some of the accolades it has earned over the years.

KEY NUMBERS

400

THE NUMBER OF DIFFERENT STOCK KEEPING UNITS THAT TRU FOODS HAS IN ITS INVENTORY

the company's products are made with the best possible materials. Farmers who form a big chunk of TruFoods suppliers are a key part of this process. Malde tells us the company actively works with farmers, training them on good agricultural practices annually to ensure the quality and safety of their produce. “Our quality starts from growing a seed into a fruit, vegetable, or a nut,” Malde emphasizes. This continues throughout the entire manufacturing process resulting in a truly highquality finished product. Part of the reason why TruFoods calls itself “The Life’s Variety” is the fact that it’s the only company in Kenya that has a variety of goods. “In every kitchen in Kenya and within East Africa, Zesta brands, Choco Primo, Kenylon or Golden Biscuits will be in that kitchen,” Mr. Malde said proudly (and rightfully so). “And that has been our journey as TruFoods. Therefore, we feel like we stand at a very unique space [within the market].” Wrapping up his explanation of TruFoods'

NOV/DEC 2023 | FOOD BUSINESS AFRICA

distinct edge, Mr. Malde highlights three pillars guiding their new product development: health, sustainability, and affordability. Firstly, the growing health consciousness among consumers fuels TruFoods' commitment to creating nutritious options for all ages. Their products, he emphasizes, go beyond mere taste, offering valuable dietary contributions. Next comes sustainability. Recognizing the intertwined benefits of environmental responsibility and business success, TruFoods prioritizes eco-friendly packaging. "What's good for the planet is good for business," Mr. Malde states, succinctly capturing their philosophy. Finally, affordability remains a cornerstone of their approach. "We want our products to be accessible to ordinary Kenyans and Africans," Mr. Malde declares. This dedication to inclusivity sets them apart in a market often skewed towards higher price points. These three guiding principles, Mr. Malde concludes, are what truly differentiate TruFoods from the competition, allowing them to stand tall FOODBUSINESSAFRICA.COM

as a brand that nourishes not just bodies, but also the planet and the communities it serves. NEW PRODUCTS To illustrate TruFoods' dedication to a thriving population, Mr. Malde spotlights two recent innovations aimed at health-conscious consumers. The first, Zesta zero sugar, arrived during the peak of COVID-19, a time when health concerns soared. This low-sugar jam, Mr. Malde proudly notes, caters to diabetics and boasts a bonus: zinc fortification for an immune system nudge. Shifting gears, Mr. Malde reveals Choco Burst 3 in 1, a product targeted at the growing vegan community. This innovative blend of cocoa powder, sugar, and non-dairy creamer provides a delicious and convenient milk alternative. "Just like any drinking chocolate," Mr. Malde explains, "two scoops, some water, and voila! You have a creamy, satisfying treat." These tailored products, he emphasizes, are a testament to TruFoods' agility and responsiveness to dynamic market shifts. ZESTA, A TRU-KENYAN BRAND In its diverse brand portfolio, no other brand stands out as Zesta does. It's not only a household name in Kenya but has a very strong following across the East Africa where its available in kiosks, supermarkets, and other retail outlets. Malde informs us this unprecedented reach is made possible through the company’s distributor network that stretches beyond Kenya’s borders. At present, Zesta is available in Uganda, Rwanda, Burundi, Tanzania, Malawi, Zambia and Congo. “We look forward to growing further by

FOODBUSINESSAFRICA.COM

going into other countries which are not tapped yet. For example, South Sudan and Ethiopia.” During our walk around the company earlier in the day, we took note of all the raw materials we saw in abundance and that sparked a bit of curiosity within us. Curiosity that manifested itself as a question. How many farmers are TruFoods working with and what regions are they in? “All of our raw materials are pretty different. Let’s talk about red plums. Red plums are normally grown in central highlands so we have approximately 30 to 40 farmers that we work with annually who bring red plums during the seasons of December and January.” When it comes to tomatoes, they are grown all over the country, but Mr. Malde notes that the best are grown in Taveta. In a truly sustainable move, TruFoods also works with different NGOs that work to reduce waste of grade II tomatoes by utilizing them in their production. The peanuts that grace TruFoods' famous peanut butter journeys originate from a slightly different landscape. "They thrive in dry regions," Mr. Malde explains, "so we've established projects in Turkana and Taveta, partnering with local farmers to cultivate these precious legumes." While the peanut farmer population in these areas might be small, TruFoods is committed to their success. They actively train and support these dedicated individuals, teaching them techniques for growing high-quality peanuts in Kenya's arid lands. This translates to nuts with optimal fat content, minimal moisture, and, most importantly, zero aflatoxin contamination. TruFoods also buys sweet corn which grows in the North Rift and South Rift regions. “We also

WE WANT OUR PRODUCTS TO BE ACCESSIBLE TO ORDINARY KENYANS AND AFRICANS. Sagar Malde, CEO TruFoods

BELOW: Tru Foods relies on state of the art machinery to produce food products of unrivalled quality and safety.

AUG/SEP 2023 | FOOD BUSINESS AFRICA

MY COMPANY PROFILE: TRUFOODS

source white beans which are used in our Kenylon brand from these same regions.” The list of fresh produce that TruFoods sources within and without the country is endless with the company annually working with over 100 farmers on different crops (including pears, guavas, white maize and red beans) and seasons. In total, Mr. Malde estimates that TruFoods annually sources a whopping 3000 to 4000 tons worth of raw materials! TRU-TEAM BUILDING Trufoods is more than a place of work, it’s a family. Its familyoriented atmosphere is evident in the company's annual "Trufoods Day" team-building event, as well as its diverse range of employee engagement activities, such as football tournaments, culture weeks, and back-to-school events. As a family, TruFoods fosters a winning culture that celebrates its employees and encourages them to excel in their respective fields. Mr. Malde emphasizes that this winning culture is a key factor in TruFoods' success, enabling the company to stay ahead of its competitors. The company's Graduate Trainee Programme plays a vital role in this regard, welcoming fresh college graduates and providing them with an intensive on-the-job training program. Through this program, graduates gain valuable experience and prepare for future career success. TruFoods' commitment to development of new talent extends beyond its graduate program. The company also offers internships and attachments, providing Kenyan graduates with opportunities to upskill and enhance their employability. ONE TRU-WAY OF HANDLING A PRODUCT So far, we’ve learned that quality starts from how a seed is

grown and the empowerment of their farmers and staff. Once the seed is grown, the fruit is then taken to the factory where it undergoes stringent procedures that ensure different parameters are in check. “For instance, we subject our red plums to rigorous quality checks before they even enter our production facility. From ensuring vibrant color and consistent size to testing for optimal brix levels and nutritional content, we leave no stone unturned

OUR LABORATORY TESTING IS PARTICULARLY CRUCIAL, AS IT PROVIDES US WITH AN UNDERSTANDING OF THE NUTRITIONAL PROFILE OF OUR PLUMS.

JAN/FEB 2024 NOV/DEC 2023 || FOOD FOOD BUSINESS BUSINESS AFRICA AFRICA

FOODBUSINESSAFRICA.COM

in our pursuit of excellence,” says Mr. Malde. “Our laboratory testing is particularly crucial, as it provides us with a comprehensive understanding of the nutritional profile of our plums, allowing us to craft jams that are not only delicious but also packed with essential nutrients." The same strict quality control process is applied to all other raw materials including peanuts, beans, tomatoes, and sweet corn. The company has invested in state-of-theart machinery where they have all of their filling done without the touch of manual hands. This continues as the goods are packed and shrinkwrapped with little to no human handling the end product. Oh, but the vigilance doesn’t stop there. Far from it. The company also makes sure they are up to par while stacking goods into trucks. The drivers and off loaders are trained to ensure that the goods are properly loaded, offloaded and stored correctly. “Food is very sensitive to breakage,” said Mr. Malde. “So we ensure that we train not only just our team, but customers as well in how to handle these. We also train our communities and ensure that at least we’ve got the right certification to produce.” These certifications include the widely recognized ISO 2200 certification, demonstrating that the company has a robust food safety management system in place. The certification also injects confidence that all products coming from the company are produced in a hygienic FOODBUSINESSAFRICA.COM

environment and meet the highest quality and safety standards required by the certification. TruFoods is also certified by NEMA on a number of areas including stack emissions and air quality just to name a few. They’re also a member of the Kenya Extended Producer Responsibility Organisation (KEPRO) on packaging, which helps ensure that their packaging waste is properly managed and does not harm the environment. FOOD MANUFACTURING COMPANY OF THE YEAR Six decades of dedication have earned TruFoods a well-deserved shelf of accolades. This year alone, the company proudly accepted the "Food Manufacturing Company 2023" award at the prestigious Africa Food Awards, following Zesta's crowning as "Best Brand in the Market" just the year before. These prestigious accolades are just a testament to TruFoods' consistent excellence throughout its remarkable journey. As we wrapped up our conversation with Mr. Malde, we couldn't help but inquire about the company's recent win. His face lit up with a proud smile as he responded, "It fills us with immense pride, of course. These awards are more than just trophies; they're fuel for our drive to serve our community and our consumers better. Knowing that our efforts resonate with people truly fuels my own energy and motivates me to come to work every day, determined to do what's best for everyone."

COUNTRY KENYA

SECTOR FMCG

WEBSITE www.trufoods.biz

EMAIL delite@trufoods.biz

NOV/DEC 2023 | FOOD BUSINESS AFRICA

Beverage TECH TRENDS IN FORMULATING, PROCESSING, PACKAGING & CONSUMPTION OF BEVERAGE PRODUCTS

Exploring the potential of African fruit puree-based carbonated soft drinks

By Natnael Tsegaye

magine the effervescence of a carbonated drink, now complemented by the succulent essence of baobab, the zesty notes of marula, and the refreshing undertones of moringa and also other African fruits pineapple, Mango,Orange, Apricot,…etc. That’s the potential of fusing carbonated soft drinks using authentic African fruit purees. This venture not only promises a delightful taste

JAN/FEB 2024 | FOOD BUSINESS AFRICA

but also brings forth a wave of health benefits, intriguing statistical insights, significant economic impact, and a commitment to environmental sustainability. From a health perspective, these beverages offer a refreshing departure from sugary sodas. African fruit purees bring natural sweetness, packing the drinks with antioxidants, vitamins, and minerals. It's not just a beverage; it's a sip of FOODBUSINESSAFRICA.COM

vitality, promoting wellness in every bubble. AN ECONOMIC AND NUTRITIONAL CASE FOR FRUIT PUREE-BASED CARBONATED SOFT DRINKS Statistically speaking, the potential is staggering. Research indicates a rising global trend towards healthier beverage choices. By aligning with this shift, we tap into a market hungry for innovative, guilt-free options. The demand for exotic flavors and wellness-driven products positions our venture as a front-runner in this evolving landscape. Economically, the impact is twofold. Firstly, sourcing African fruits directly contributes to local economies, empowering farmers and fostering sustainable agricultural practices. In this dynamic landscape of Africa's beverage industry, there's a notable trend that often goes unnoticed – the significant expenditure by local beverage industries on importing bases and compounds from various international markets, including Europe, America, Austria, and India. This underscores the pressing need for a paradigm shift towards utilizing locally sourced African fruit purées, particularly in West Africa, where carbonated soft drinks like energy drinks, cola-based drinks, and tonics hold immense popularity. This strategic move also addresses a significant financial drain on nations. The reduction in reliance on imported items for the beverage industry translates to savings in foreign exchange, contributing to a more self-sufficient and resilient economy. This aligns with the broader goals of fostering local industries and reducing dependency on external sources. Secondly, the market potential for our unique carbonated

FOODBUSINESSAFRICA.COM

soft drinks positions us as a key player, driving economic growth within the region. The consumer preference for these beverages lies in their unparalleled boosting energy, thirstquenching, and refreshing capacities, surpassing the appeal of juice products. By integrating and formulating carbonated soft drinks based on authentic African fruit purées, we not only meet the demands of a discerning market but also revolutionize

SOURCING AFRICAN FRUITS DIRECTLY CONTRIBUTES TO LOCAL ECONOMIES, EMPOWERING FARMERS AND FOSTERING SUSTAINABLE AGRICULTURAL PRACTICES. the industry's approach. The advantages are multi-fold. Firstly, such a shift encourages and supports local fruit producers, fostering economic growth and sustainability. Moreover, from a health and nutritional standpoint, the benefits are unparalleled. Unlike compounds and bases derived from imported raw materials, fruit puree-based carbonated soft drinks retain the natural goodness of African fruits,

JAN/FEB 2024 | FOOD BUSINESS AFRICA

BEVERAGE TECH AFRICA: FRUIT PUREE-BASED CARBONATED SOFT DRINKS

offering consumers a beverage that not only tantalizes their taste buds but also nourishes their bodies. In the West African market, where preferences lean towards carbonated soft drinks with energy-boosting qualities, the potential for fruit puree-based beverages is immense. The incorporation of locally beloved fruits like baobab, marula, and moringa not only caters to regional taste preferences but also elevates the nutritional profile of these drinks. It's a win-win scenario – a taste of home with enhanced health benefits. Environmental sustainability is at the core of this approach. The use of locally sourced fruits not only reduces our carbon

footprint but also ensures a symbiotic relationship with the ecosystem. Moreover, this approach aligns seamlessly with global trends towards sustainable and ethical consumption. As consumers become more conscious of the environmental impact of their choices, a commitment to locally sourced, environmentally friendly ingredients enhances the appeal of our beverages on the international stage. Beyond the economic and environmental advantages, there's a cultural narrative waiting to unfold. By celebrating and preserving the authenticity of African flavors, we contribute to a global dialogue on diversity in the beverage industry. In essence, the transition to fruit puree-based carbonated soft drinks is not just a business move; it's a strategic evolution towards a more resilient, sustainable, and culturally resonant industry. It's a narrative that positions Africa not only as a consumer of global trends but as a bold innovator shaping the future of the beverage landscape. FORMULATION SUCCESS LIES IN EMBRACING THE SIMPLICITY OF FRUIT PURÉES One of the overlooked challenges of the current system lies in the loss of nutritional value during the transformation of raw fruits into beverage bases. Fruit compounds, even when formulated locally, may undergo extensive processing, compromising the inherent health benefits. The solution lies in embracing the simplicity of fruit purées, preserving the natural goodness and nutritional richness from harvest to bottle. Consider the baobab, a staple in many African regions. Its fruit puree, when integrated into carbonated soft drinks, brings forth a powerhouse of nutrients – high in vitamin C, antioxidants, and essential minerals. This not only contributes to immune support but also offers a natural energy boost, an attractive proposition for those seeking a healthier alternative to conventional sodas. Marula, known for its rich flavor, is also very nutritious

JAN/FEB 2024 | FOOD BUSINESS AFRICA

FOODBUSINESSAFRICA.COM

bubble. In the grand narrative of the African beverage industry, the adoption of fruit puree-based carbonated soft drinks is not merely a trend; it's a health-conscious movement. It's about redefining indulgence by offering drinks that go beyond refreshment, becoming a source of vitality. A SET OF CHALLENGES TO OVERCOME While the vision of introducing fruit purée-based carbonated soft drinks is compelling, navigating the path to widespread adoption does present a set of challenges. Addressing these obstacles is crucial for ensuring a seamless integration that maximizes the benefits for both consumers and the industry.

with high levels of vitamins E and C. When transformed into a fruit purée, it becomes a valuable addition to carbonated soft drinks, offering not just taste but a dose of skin-boosting antioxidants. It's a holistic approach, where enjoyment and well-being converge in every effervescent gulp. Moringa, often dubbed the 'miracle tree,' brings its nutrient-dense leaves to the forefront when transformed into a purée. The resulting carbonated soft drinks become a source of essential amino acids, vitamins, and minerals. This infusion of moringa not only adds a unique earthy undertone but elevates the health quotient, aligning with the growing consumer demand for functional beverages. Crucially, the minimal processing involved in crafting fruit puree-based drinks ensures that the nutritional integrity of these fruits is retained. Unlike compound and bases processes that may strip away vital elements during formulation, this approach champions a 'from tree to bottle' philosophy, providing consumers with a FOODBUSINESSAFRICA.COM

beverage that doesn't just tantalize taste buds but nourishes the body. As health-conscious consumers increasingly scrutinize ingredient lists, the transparency of using fruit purées becomes a powerful marketing tool. It's a story of simplicity – where the

THE MINIMAL PROCESSING INVOLVED IN FRUIT PUREE-BASED DRINKS ENSURES THAT THE NUTRITIONAL INTEGRITY OF THESE FRUITS IS RETAINED. ingredients are easily recognizable, sourced locally, and transformed minimally, resulting in a beverage that embodies the essence of health in every

Capacity Constrains: One of the primary challenges lies in scaling up processing capacity to meet the potential demand. Fruit purées require specialized equipment and facilities, and optimizing production processes without compromising quality becomes paramount. Collaborations with existing processing plants, investments in modern technology, and strategic alliances can help overcome this hurdle, ensuring a steady and scalable supply of fruit purées for the beverage industry. Integration System: The transition to fruit purée-based carbonated soft drinks necessitates a shift in the integration system of existing beverage production lines. From sourcing and handling raw materials to adapting machinery for fruit purée incorporation, a comprehensive integration plan is vital. Collaborating with engineering experts to retrofit current systems or investing in new, adaptable machinery will be key to seamlessly infusing fruit purées into the production process. Supply Chain Management: Effective supply chain management becomes a linchpin in this transformative journey. Coordinating with local fruit producers, ensuring timely harvests, JAN/FEB 2024 | FOOD BUSINESS AFRICA

BEVERAGE TECH AFRICA: FRUIT PUREE-BASED CARBONATED SOFT DRINKS

and streamlining transportation logistics are pivotal steps. This not only supports local economies but also guarantees a consistent and fresh supply of fruit purées. Robust supply chain management systems, possibly employing technology for real-time tracking, become integral to the success of this venture. Product Development Specialists: Creating a diverse range of fruit purée-based carbonated soft drinks demands the expertise of product development specialists. These professionals need to understand the nuances of flavor combinations, nutritional considerations, and market trends. Hiring or collaborating with seasoned product developers ensures that the offerings not only meet consumer preferences but also set new benchmarks in the beverage industry. Fruit Puree Extraction and Processing: The technical journey of fruit puree-based carbonated soft drinks begins with the meticulous extraction of fruit purées. Using advanced techniques like cold-press extraction preserves the inherent flavors, colors, and nutritional components of the fruits. This gentle method minimizes heat exposure, ensuring that the purees retain their natural freshness. The extracted purées then undergo a refining process to eliminate any undesirable components, resulting in a pure, concentrated essence of the chosen fruits. Fruit Purée Integration into Formulation: The technical brilliance extends to the delicate art of formulating the perfect blend. Integrating fruit purées into the recipe requires a nuanced understanding of the characteristics of each fruit. A formulation specialist meticulously calculates ratios, adjusting sweetness, acidity, and texture to create a harmonious balance. This process involves advanced sensory analysis, ensuring that the final product not only captures the essence of the fruit purée but also delivers a consistently delightful taste experience. Integration of Fruit Puree into Existing Beverage Production

JAN/FEB 2024 | FOOD BUSINESS AFRICA

Lines: The integration of fruit puree into current beverage production lines requires a strategic approach to leverage existing machinery while optimizing for the introduction of new ingredients. Working closely with industrial engineers and process specialists, the formulation team carefully adjusts the formulations to accommodate fruit purées. This may involve retrofitting equipment, such as mixers and blending tanks, to ensure efficient incorporation without disrupting the overall production flow. Collaboration with Fruit Purée Processing Factories: Engaging with Africa's fruit puree and concentrate processing factories becomes a cornerstone of this trans formative journey. Establishing strategic partnerships involves collaborative efforts between beverage manufacturers and processing facilities. This collaboration ensures a streamlined supply chain, with clear communication on quality standards, processing techniques, and delivery schedules. By fostering close relationships with these factories, beverage companies secure a reliable source of high-quality fruit purées. As we embark on this exciting journey towards healthier and more authentic beverages, addressing these challenges head-on becomes not just a necessity but an opportunity for innovation and growth. By navigating these obstacles strategically, we can unlock the full potential of fruit pureebased carbonated soft drinks, bringing about a positive paradigm shift in the African beverage industry. Cheers to overcoming challenges and crafting a healthier, more sustainable future! As companies navigate the integration of fruit purée into their current beverage production lines, a holistic approach that combines technological advancements, collaboration with processing facilities, and employee expertise is essential. This integration is not just a modification of processes; it's a transformation that embraces the richness of African fruits, ensuring that each bottle of carbonated soft drink reflects the commitment to quality, innovation, and a sustainable future. Cheers to a seamless blend of technology and tradition!

FOODBUSINESSAFRICA.COM

Meat

BUSINESS

TRENDS IN FORMULATING, PROCESSING, PACKAGING & CONSUMPTION OF MEAT, POULTRY, FISH, SEAFOOD & ALTERNATIVE MEAT PRODUCTS

Advances in meat shelf-life extension

M By Francis Watari

eat and meat products are excellent sources of nutrients for humans. In 2021, around 328 million tons of meat were consumed globally, according to Statista. Appetite for meat is also as high as ever with the Food and Agriculture Organization (FAO) estimating the global consumption of meat proteins over the next decade to increase by 14% by 2030. However, meat is susceptible to contamination by foodFOODBUSINESSAFRICA.COM

borne pathogens and various spoilage microorganisms because of its high-water activity and nutrient content. Microbial contamination can cause undesirable changes in quality, and alter colour, texture and flavour, posing not only a health risk to consumers, but possibly an economic loss. This is why meat preservation is a rule and not an exception in the meat processing industry. From ancient practices of drying and smoking to modern innovations like refrigeration, modified atmosphere packaging JAN/FEB 2024 | FOOD BUSINESS AFRICA

MEAT BUSINESS AFRICA: ADVANCES IN MEAT SHELF-LIFE EXTENSION

and high-pressure processing, the industry has always sought to preserve the quality and safety of one of the most prized delicacies globally. In this article we look at the recent advances in meat preservation technology and their potential benefits for the industry even as the global meat consumption is projected to reach between 460 million and a staggering 570 million tons by 2050. ADVANCEMENTS IN REFRIGERATION TECHNOLOGY Since its 1854 debut, refrigeration has revolutionized meat preservation. By 46

JAN/FEB 2024 | FOOD BUSINESS AFRICA

lowering temperatures, it dramatically slows the growth of bacteria, a key culprit in spoilage. This translates to a significant extension of shelf life for fresh meats, typically ranging from 5 to 7 days in the refrigerator. For frozen meats stored at the standard -18°C (-0°F), the shelf life stretches even further: beef for 6 to 12 months, lamb for 6 to 9 months, pork for 6 months, and sausage products for a comfortable 2 months. Cooling technology supplier Intarcon however notes that temperatures below approximately -2 °C, depending on the type of meat, lead to the formation of ice crystals in the intercellular spaces,

causing water to escape from the cells to compensate for the increased osmotic pressure, which leads to drying out of the product and thus to weight loss, as well as alteration of the cell structure. All this results in a lower quality as perceived by the user. To avoid this, cooling technology manufacturers have developed refrigerators with slower freezing time which promote the formation of smaller crystals. Another primary focus in refrigeration technology has been on improving energy efficiency. This has particularly gathered momentum in the recent pasts as energy costs spiral and pressure mounts on food companies to reduce their environmental impact. Manufacturers have been developing refrigeration systems with advanced compressor technologies, improved insulation materials, and better controls to minimize energy consumption while maintaining optimal cooling conditions for meat storage. A good example is the modern GEA Grasso compressors which a Belgiumbased foodservice wholesaler recently installed and as a result managed to increase energy efficiency by up to 50%. The Grasso compressor also features a new trend; the transition FOODBUSINESSAFRICA.COM

from refrigerants with high global warming potential. It uses ammonia which is considered natural refrigerant with zero ozone depletion potential (ODP) and zero global warming potential (GWP). CO2 is another refrigerant that gaining popularity for its zero effect on the ozone layer and a low effect on global warming (GWP = 1). German industrial equipment manufacturer Danfoss and her U.S. peer Emerson being among the popular users of CO2 with the latter announcing an expansion of its CO2 compression portfolio with the development of what it calls the refrigeration industry’s first transcritical CO2 screw compressor, which is designed “for the rigors of high-pressure industrial CO2 refrigeration.” Transport refrigeration brand, Thermo King also joined the environment friendly refrigerant bandwagon in 2022, transitioning to the lower-GWP refrigerant (R452A). The company said the move will reduce the carbon footprint of refrigerants used by its customers’ long-haul, middle-mile and last-mile delivery fleets by nearly 50% or approximately 650,000 metric tons of CO2e annually. NEW PROCESSES TECHNOLOGIES TO ENHANCE SHELFLIFE Novel technologies have been introduced in the meat industry to provide a safer, fresher, more natural or minimally processed and additive-free, products. High-Pressure Processing is among the technologies that many meat producers are increasingly relying on to extend the shelf life of their products. By subjecting packaged meat to high pressures and at lower temperatures of between 5 and 20 degrees, this technology effectively eliminates harmful bacteria, yeasts, and molds, extending shelf life while preserving the nutritional quality and sensory attributes of the meat.

FOODBUSINESSAFRICA.COM

BY SUBJECTING PACKAGED MEAT TO HIGH PRESSURES AND AT LOWER TEMPERATURES OF BETWEEN 5 AND 20 DEGREES, HPP EFFECTIVELY ELIMINATES HAMFUL BACTERIA, YEASTS, AND MOLDS. Generally, pressure levels used for pasteurization of meats and meat products range from 400 to 600 MPa, with short processing times of 3 to 7 minutes at room or chilled temperatures. This typically results in an inactivation level of more than a 4-log reduction for the most common vegetative pathogenic and spoilage microorganisms, leading to increased shelf life and improved safety. Roberto Peregrina, USA Executive Director at HPP equipment manufacturer, Hiperbaric, said: “HPP is able to enhance food safety by controlling pathogens and extend shelf-life, without compromising on quality. Since it is a postpackaging process, it also helps prevent recontamination and recalls”. Roberto highlighted HPP’s effectiveness by noting that it has allowed one of their customers Demakes to increase shelf life of their pre-sliced organic deli meat from 49 days to 120 days, a 60% increase.

JAN/FEB 2024 | FOOD BUSINESS AFRICA

MEAT BUSINESS AFRICA: ADVANCES IN MEAT SHELF-LIFE EXTENSION

Cutting-edge technologies are revolutionizing the meat processing industry, not just by extending shelf life but also by ensuring transparency and safety. Blockchain, for instance, acts as a digital ledger, meticulously recording every step of a meat product's journey from farm to fork. This immutable record fosters trust and accountability, allowing for swift identification and removal of potentially contaminated products. Automation and robotics are also playing a crucial role. While motivated by the desire for efficiency, their ability to minimize human contact during processing has another significant benefit: it reduces the risk of contamination, a major culprit behind shortened shelf life. EXTENDING SHELF-LIFE THROUGH NATURAL PRESERVATIVES AND INGREDIENTS To prevent the microbiological contamination of meat, synthetic preservatives, including nitrites, nitrates, and sorbates, have been widely used in the food industry due to their low cost and strong antibacterial activity. However, synthetic preservatives tend to be less preferred by food consumers because of a number of health concerns regarding their side effects. Sorbic

JAN/FEB 2024 | FOOD BUSINESS AFRICA

acid, benzoic acid, and their salts have been reported to promote mutagenic and carcinogenic compounds. Nitrites and nitrate, used as preservative and coloring agents in meat, have been associated with leukemia, colon cancer, bladder cancer, and others.

KEY NUMBERS

577M

AMOUNT IN TONNES OF MEAT THAT WOULD BE REQUIRED TO MEET DEMAND IN 2050..

Although efforts to have these synthetic preservatives banned are yet to bear fruit, companies are proactively making efforts to switch them out. Dutch food tech company Vaess and Naked Bacon are examples of those who have already eliminated nitrite from their bacon products with a brine compound. Transition to natural preservatives has stimulated innovation in this area, in

2022, food shelf life extension specialist Kemin Food Technologies developed a nitrite alternative for use in the first stage of emulsified cooked sausages. Kemin says that the Rubinite GC Dry is a label-friendly ingredient offering food safety while maintaining taste and color adding that it is available for food producers in the Europe, Middle East and Africa (EMEA) region. “By developing a nitrite-free solution, we can offer food manufacturers the opportunity to remove ascorbate or diacetate from their formula, thus cleaning up their product labels.” Corbion, another preservation technology company, has within its product a natural preservative comprised of vinegar and sea salt. Trading as N450, Corbion says its natural meat preservation solution extends the shelf life of 80,000 tons of processed meat in North America for up to 90 days while maintaining the sensory integrity of those goods. PACKAGING TECHNOLOGIES FOR EXTENDED SHELF-LIFE Africa, with its diverse climates and logistical challenges, has often grappled with preserving meat for extended periods. Factors such as temperature variations, limited cold storage infrastructure, and transportation

FOODBUSINESSAFRICA.COM

constraints have historically posed challenges in maintaining the freshness and safety of meat products. Modified atmosphere packaging (MAP) offers a solution to this. This technique involves altering the composition of the air surrounding the meat, typically by reducing oxygen levels and increasing carbon dioxide. This inhibits the growth of spoilage microorganisms and extends the product's shelf life without the need for excessive preservatives. The trio of commonly utilized protective gases in modified atmosphere packaging comprises CO2 (carbon dioxide), O2 (oxygen), and N2 (nitrogen). In the case of red meat, the protective gas composition in modified atmosphere packaging prioritizes O2 and CO2. To maintain the vibrant red hue of the meat, the concentration of O2 must exceed 60%, while the CO2 concentration should not dip below 25% to effectively stifle bacterial reproduction. For pork, the typical composition of protective gases in modified atmosphere packaging ranges between 60-70% O2 and 40-30% CO2, extending the shelf life to 7-10 days when stored between 0-4°C. Poultry meat, on the other hand, is typically enveloped in a mixture of 50-70% CO2 and 50-30% N2. This configuration grants a shelf life of approximately 14 days under the conditions of 0-4°C in modified atmosphere fresh-keeping packaging Vacuum packaging meat preservation technique is another alternative that is used to extend shelflife. This processing technique removes the air from around the meat, creating an oxygen-free environment. This not only slows down the oxidative processes responsible for spoilage but also reduces the growth of bacteria. For this reason, most meats are vacuum packaged, which extends the storage life under refrigerated conditions to approximately 100 days. The exact duration after vacuum sealing varies depending on whether you keep it in a refrigerator, freezer, or pantry. Vacuum sealed and placed in the freezer retains freshness for up to 12 months. FOODBUSINESSAFRICA.COM

The incorporation of smart packaging equipped with sensors holds potential of revolutionizing meat packaging. These sensors detect changes in temperature, humidity, and other environmental factors, providing real-time data that can provide insights as to whether the meat is stored under optimal conditions or not. This not only enhances shelf life by ensuring optimal storage conditions are observed at all times but also contributes to maintaining quality and safety standards. SHELF-LIFE EXTENSION FOR A SUSTAINABLE FUTURE Processed meat and meat products are still very much integral to consumers’ food purchasing, with chilled cuts of meat and sausage being the third and fourth, respectively, most purchased manufactured products among all food and beverage categories. Demand for meat can only get higher as the world population rises. The rapidly growing world population will be consuming two-thirds more animal protein by 2050 than it does today, according to the FAO. Supply is however constrained by diminishing resources to raise more livestock. The biggest opportunity therefore would be in preventing losses associated with spoilage which is currently estimated at 23% of total production. Saving even half of these losses would not only make sense economically but also reduce

the carbon footprint associated with livestock which is also the highest of all food production. It will also be good for business. A new study conducted by Kerry has revealed that one-third of consumers are willing to switch to brands or products that offer better shelf life. This openness to change is driven by consumers’ strong desire to tackle food waste with 98% of those surveyed found to be actively trying to minimize food waste caused by various factors such as financial concerns, environmental considerations, and mindfulness of world hunger. Adopting new shelf-life extension methods will also help manufacturers align with consumer demand for foods with natural ingredients. Studies support this shifting mindset, as the Innova Market Insights’ 2019 Consumer Survey showed two out of three European consumers say they specifically want to avoid products with ingredients that are difficult to understand. These new technologies aren't just good for companies' bottom lines; they're a boon for the planet and our health. By reducing food waste, they tackle greenhouse gas emissions and the environmental impact of food production. For our health, they offer alternatives potentially linked to lower risks of cancers and other diseases. It's a win-win-win situation with farreaching benefits.

JAN/FEB 2024 | FOOD BUSINESS AFRICA

Inflation on tap: How high prices and taxes pour trouble into Kenya's beverage market Inflation and escalating taxes are brewing a tough blend for Kenya’s beverage industry, challenging producers, consumers, and economic vitality.

T By Steve Ireri

he beverage industry is a major player, pulling weight in Kenya’s economy by dishing out jobs and spicing up economic growth. The region of Africa and in precision Kenya has a thriving beverage sector, consisting of various types of beverages, including alcoholic and non-alcoholic drinks. The industry encompasses the production, distribution, and sale of beverages, and has witnessed significant growth in recent years with major players being both local and multinational companies that offer a wide range of products to the nations diverse consumer preferences. However, while the industry rode high on a smooth growth wave for a trove of years, a government insatiable of taxes and inflation twist, now disrupts its flow, affecting producers and consumers alike. Inflation, which measures the change in the general level of prices, rose to 6.32% in December 2023, the highest rate since April 2019, suggesting that the cost of living

JAN/FEB 2024 | FOOD BUSINESS AFRICA

for Kenyans has gone up and that their purchasing power and disposable income has significantly reduced. One of the main indicators of inflation in Kenya is food and non-alcoholic beverages, which account for 36.04% of the consumer price index (CPI). According to the Kenya National Bureau of Statistics (KNBS), the prices of these items increased by 7.76% in December 2023 compared to the same month in 2022. The beverage industry is greatly affected by the cost of inputs which have significantly risen with the current inflation twist. For example, the prices of sorghum, millet, and cassava, which are used to make some of the popular beers in Kenya, have risen due to poor harvests and increased demand while those of sugar, which is used to sweeten soft drinks and juices, have also gone up due to import restrictions and taxation. TAXATION REGIME Another challenge facing the beverage industry is the high and FOODBUSINESSAFRICA.COM

INDUSTRY REPORT: BEVERAGE INDUSTRY IN KENYA

variable taxation regime, which has been changing frequently in recent years. The Kenyan government has been using excise taxes, which are levied on specific goods and services, as a way of raising revenue and discouraging the consumption of harmful products, such as alcohol and tobacco. However, the excise taxes on beverages have been increasing at a faster rate than inflation, making them more expensive for consumers and reducing their demand. For example, the excise tax on bottled water increased by 59.4% in July 2023, from Ksh 5.40 per litre to Ksh 8.60 per litre. The excise tax on beer increased by 5.17% in October 2023, from Ksh 105.20 per litre to Ksh 110.62 per litre. The excise taxes on beverages are also adjusted annually for inflation, using the average inflation rate of the previous year. This means that the taxes increase even when the inflation rate goes down, as it did in 2021. The beverage industry has been lobbying the government to halt the yearly inflation adjustment, arguing that it is unfair and unsustainable. BEVERAGE MAKERS FEEL THE HEAT The impact of all this however is most evident in the financial performance and market share of the major players. The East African Breweries Limited (EABL), which is the largest producer of alcoholic beverages in the region and a subsidiary of the global giant Diageo, reported a 39% decline in net profit for the half-year ended December 2023, from Ksh 7.2 billion (US$44.86 million) to Ksh 4.4 billion (US$27.41 million). The EABL attributed the decline to the reduced consumer spending, higher cost of production, and increased taxation. The EABL also reduced its production of Senator Keg, a lowend beer brand made from sorghum, millet, and cassava, which was previously exempted from excise tax to promote the use of local crops and provide affordable beer to lowincome consumers. The exemption was removed in 2013, and the excise tax on Senator Keg was initially set at 50% of the rate for other beers, but it was later increased to 80% in 2018, and then to 100% in 2020. The EABL said that the tax increases made Senator Keg unprofitable and uncompetitive, and it had to scale down its production and distribution. The Coca-Cola Beverages Africa (CCBA), which is the largest producer of soft drinks and juices in the region and a subsidiary of the global giant Coca-Cola, also reported a decline in sales volume and revenue for the year ended December 2023, due to the reduced consumer demand, high cost of sugar, and increased taxation. The CCBA in a report, said that the excise tax on soft drinks and juices, which was introduced in 2018 at a rate of 12% of the retail price, had a negative impact on its business, as it increased the price of its products and reduced their affordability and competitiveness. The CCBA also said that the excise tax on bottled water, which was increased in 2023, had a similar effect, as it made water more expensive than some soft drinks and juices. Therefore, in the same report, the top-rated beverage firm appealed to the government to review the taxation regime on beverages, and to consider the social and economic benefits of the industry, FOODBUSINESSAFRICA.COM

such as job creation, value addition, and corporate social responsibility. The inflation and taxation challenges facing the beverage industry have implications for the Kenyan economy and society at large. The beverage industry is a significant contributor to the gross domestic product (GDP), employment, and tax revenue of the country. According to the Kenya Association of Manufacturers (KAM), the beverage industry accounts for about 5% of the manufacturing sector, which in turn accounts for about 10% of the GDP. The industry also employs about 15,000 direct workers and 150,000 indirect workers, such as farmers, distributors, and retailers. The beverage industry pays a staggering Ksh 50 billion (US$311 million) in taxes each year, rocking a solid 5% of the total government tax haul. It’s a big shoutout to the drink game for boosting the national treasury, but it by far and in unsayable ways highlights the serious squeeze hitting both producers and consumers as they hustle to foot their tax bill. The inflation and taxation challenges facing the beverage industry could therefore affect the growth and development of the Kenyan economy and society, especially in the wake of a climate change crisis, which has already caused a lot of disruption and hardship. The government and the industry need to find a balance between the revenue and regulatory objectives of taxation, and the profitability and sustainability objectives of the industry, in order to ensure a win-win situation for both parties and for the country as a whole.

JAN/FEB 2024 | FOOD BUSINESS AFRICA

SUPPLIER NEWS & INNOVATIONS

Sweegen wins patent lawsuit against Ingredion’s PureCircle a method of producing Reb M more cost effectively by using enzymes called UDP-glucosyltransferases (UGTs). “Throughout this litigation, we consistently asserted the invalidity of PureCircle’s patents, considering their case against Sweegen as baseless and spurious,” said Steven Chen, chief executive officer of Sweegen. “This triumph in the US Court of Appeals serves to highlight Sweegen's dedication to principled innovation and fair competition within the industry.”

USA — The US Court of Appeals for the Federal Circuit has upheld a district court ruling that two PureCircle patents for producing the steviol glycoside sweetener Rebaudioside M (Reb M), also known as Rebaudioside X, were invalid. Both rulings were in favor of Sweegen, which had been sued by PureCircle for alleged patent infringement. Reb M more closely resembles the sweetness of sugar than other steviol glycosides, but it is found in trace amounts in stevia plants. The two patents at issue pertain to

ACQUISITION

ADM boosts portfolio with 2 flavoring acquisitions: Revela and FDL

USA – Agriculture giant Archer Daniels-Midland (ADM) has boosted its customer offering the acquisition of dairy flavoring maker Revela Foods and UK-based functional ingredients producer FDL. 52

JAN/FEB 2024 | FOOD BUSINESS AFRICA

Revela Foods, which saw US$240 million in sales this year, is a leader in the dairy ingredients space. It operates three production facilities in the Midwest that use enzyme technology to craft dairy flavorings for a variety of foods, from snacks to sauces to desserts. ADM said in the press release the Revela purchase is expected to be completed in early 2024. “ADM has a strong presence in the North America savory flavors segment, and we’re excited to work with the impressive Revela team to expand our opportunities there, bringing their technology and innovation together with our global capabilities to power our unparalleled range of ingredients and complete solutions for customers who are looking for great flavors and clean labels,” said Calvin McEvoy, ADM’s president of global flavors, in a statement. FDL will also further the agribusiness giant’s reach into flavorings. The company has created over 10,000 proprietary flavor formulations, ADM

said. FDL works to help formulators infuse ingredients into new products, such as vanilla and menthol. The UKbased company operates three facilities in its native country, with a projected $120 million in sales in 2023. The FDL acquisition is projected to close in January, according to ADM.

FDL HAS CREATED OVER 10,000 FLAVOUR FORMULATIONS AND OPERATES 3 FACILITIES WITH A PROJECTED US$120 MILLION IN SALES IN 2023. FOODBUSINESSAFRICA.COM

DIVESTMENT

Corbion to sell emulsifiers business to PE firm Kingswood US – Kingswood Capital Management, a private equity company, is acquiring Corbion’s emulsifiers business for approximately $326 million. Kingswood Capital is a lower, middle market firm that makes investments in consumer, energy, industrial, retail, technology and other industries, according to the company. Other food-related businesses Kingswood has invested in include energy drink maker G Fuel and the retailer Save Mart. The transaction includes two US-

based manufacturing plants that employ approximately 175. “Kingswood is excited to take this world class emulsifiers business forward and build on its tremendous heritage by continuing to provide best-in-class service,” said Alex Wolf, managing partner at Kingswood. “We are delighted to partner with Corbion in creating the largest standalone pureplay emulsifiers business in North America.” Corbion said the divestment will allow it to sharpen its focus on its fermentation-based technologies.

Tetra Pak unveils new module for renewable thermal supply to power UHT equipment line SWITZERLAND — Tetra Pak has announced a collaboration with Absolicon, a Swedish solar thermal company, to offer a standardised solution for industrial equipment powered by renewable thermal energy (heat). Absolicon has designed a scalable

solar thermal module that can be integrated with current and new UHT lines and enable a range of decarbonisation options, including a reduction of greenhouse gas emissions, based on the customer requirement and location. Tetra Pak’s UHT processing line

for high temperature sterilisation of dairy products is the first solution to be offered together with a scalable solar thermal supply, with the potential to reduce fossil fuel usage by up to 40%. The first module is forecasted to be installed during 2024, before scaling to a worldwide market.

ACQUISITION

Kerry to acquire lactase enzyme business from Novozymes and Chr. Hansen DENMARK – Irish taste and nutrition company Kerry is set to acquire the lactase enzyme business of Novozymes and Chr. Hansen for a total consideration of €150 million, subject to routine closing adjustments. Kerry is the beneficiary of a European Commission condition that required Novozymes and Chr. Hansen to divest their lactase enzyme business for their merger to be approved. The acquisition comprises certain FOODBUSINESSAFRICA.COM

trade and assets of Chr. Hansen’s global lactase enzyme business and 100% of the share capital of Nuocheng Trillion Food (Tianjin) Co., Ltd, a Chinese subsidiary of Novozymes. Through the acquisition, Kerry will add enzyme technology that helps create lactose-free and sugarreduced dairy products. JAN/FEB 2024 | FOOD BUSINESS AFRICA

SUPPLIER NEWS & INNOVATIONS

Vantage Food introduces new emulsifier for cleaner labels USA — Vantage Food has unveiled its latest innovation – the Simply Kake hydrated emulsifier, an alternative to traditional baking aids designed to support food manufacturers adhere to cleaner-label initiatives while elevating the quality of baked products. Mike Savidakis, the Director of Innovation for Vantage Food, explained the motivation behind the development of Simply Kake, stating, “Consumers have grown increasingly conscious of what’s in their food, and in turn, our customers are striving to achieve superior baked goods without including ingredients that infringe on evolving clean labeling standards defined by

specialty grocers.” The Simply Kake emulsifier promises to enable bakers to create taller, lighter, and more evenly baked cakes and sweet goods while also aligning with consumer preferences for transparency and simplicity in ingredients. The emulsifier is versatile and finds application in various segments, including bakery, cakes, pastries, sweet goods, and food processing. 54

JAN/FEB 2024 | FOOD BUSINESS AFRICA

NEW TECHNOLOGY

GEA introduces new control system for centrifuges

GERMANY — GEA has introduced X Control, a new control system for centrifuges claimed to “elevate integration, connectivity, data processing and security to a new level”. The new system provides the basis for the integration of AI algorithms, whereby the control system can recognise patterns and draw conclusions. This aims to make data collection and analysis easier, including self-optimisation of the entire system. It can use high computing power to implement new interfaces for integration into process line control systems. The increased computing power will also improve integration into Supervisory Control and Data Acquisition (SCADA) systems. In a statement announcing the launch, GEA said that cloud computing opens up possibilities for extended services such as provision of customised software functions. With the new control concept, GEA is increasingly relying on Module Type Package (manufacturer-independent communication between controls and systems). This enables users to adapt their processes faster and

more efficiently to changing market requirements by integrating all process steps quickly and easily. The GEA X Control will be initially introduced for selected separator and decanter types for the dairy and renewables industry from the first quarter of 2024. During the year, other centrifuge types will follow, and by the

GEA X CONTROL WILL BE INITIALLY INTRODUCED FOR SELECTED SEPARATOR AND DECANTER TYPES FOR THE DAIRY INDUSTRY IN 2024. end of the year, all new machines will be equipped with the new control system. FOODBUSINESSAFRICA.COM

ACQUISITION

Oppenheimer Partners achieves 100% ownership of Nigerian beverage can manufacturer GZ industries

NIGERIA – In a strategic move to bolster its presence in the African beverage can market, South African investment

holding company Oppenheimer Partners has fully acquired the Nigerian beverage can manufacturer, GZ Industries (GZI). Founded in 2006 in Nigeria, GZ Industries has emerged as the leading supplier of beverage cans in the country, boasting an impressive annual production capacity of 1.8 billion units. The company operates two factories located in Ogun and Abia states, solidifying its position as a pivotal player in Nigeria’s manufacturing sector. This transaction marks Oppenheimer’s complete takeover of GZI, a significant player in the region, as it acquired an additional 37.5% stake from Singaporean private equity firm, Affirma Capital. While the financial intricacies of the deal remain undisclosed, the acquisition aligns with Oppenheimer Partners’ broader strategy to invigorate the growth trajectory of GZ Industries.

The South African group initially invested in the Nigerian firm in 2018 and has now positioned itself to fully implement its strategic initiatives aimed at serving the entire sub-Saharan African region.

OPPENHEIMER HAD PREVIOUSLY ACQUIRED A 37.5% STAKE FROM SINGAPOREAN PRIVATE EQUITY FORM AFFRIMA CAPITAL.

Ingredion, Better Juice collaborate to expand reach of novel sugar reduction technology USA — FoodTech start-up Better Juice, Ltd., has partnered with with Ingredion, Inc., a leading global provider of specialty ingredients to the food and beverage industry. The partnership aims to leverage Ingredion's financial capability and extensive reach to avail Better Juice’s novel sugar technology to the US juice market. Consequently, Ingredion Ventures, Ingredion's venture investment arm, will lead the Series A funding round for Better Juice which will fast-track penetration of its breakthrough sugar reduction solution into the US juice market. Better Juice's innovative sugar FOODBUSINESSAFRICA.COM

reduction technology removes simple sugars in juice-based beverages, concentrates and other natural sugarcontaining liquids. The Company developed an enzymatic technology, which converts sugars into non-digestible compounds, such as dietary fibers and non-digestible sugars, while maintaining the natural profile of vitamins, minerals and organic acids in the final product. Ingredion has invested $300 million in sugar reduction and specialty sweeteners during the last seven years, according to the company. Now, its agreement with Better Juice gives it another solution that it could eventually offer to CPG customers looking to reduce sugar in their liquids. JAN/FEB 2024 | FOOD BUSINESS AFRICA

SUPPLIER NEWS & INNOVATIONS

IFF advances plant-based meat alternatives with high-moisture extrusion investment DENMARK – IFF, a global leader in food and beverage, home and personal care, and health and wellness, is stepping up its game in the world of plant-based meat alternatives. The company has invested in high-moisture extrusion (HME) technology from Coperion, a global leader in extrusion technology. HME can deliver an improved eating experience of plant-based meat and seafood products, offering advantages such as increased juiciness and musclelike texture compared to other methods. Manufacturers can harness HME to create unique sensory attributes by understanding the interactions between

various processes, ingredients, flavors, and proteins to optimize taste, texture, and cost-effectiveness. IFF has recently installed three HME systems in IFF’s innovation hubs across

Europe, the United States, and Singapore. These systems are now operational and feature highly precise powder and liquid feeders, ensuring both high-quality production and remarkable flexibility.

NEW PRODUCT

Valio launches a new product segment to enable bettertasting protein products consumer test in Germany. A group of 110 people participated in the test. When tested against four leading competitors, Valio reports that its high protein UHT ready-to-drink (RTD) prototype was best liked overall. Consumers who liked the thicker texture of the drink gave its appearance, flavour (taste), and texture/mouthfeel a high score.

FINLAND – Leading Finnish dairy company Valio has launched a new milk protein concentrate (MPC), Valio Eila® MPC 65 that “combines Valio’s expertise in lactose free with the nutritional values of excellent dairy milk protein.” The new concentrate continues in the footsteps of Valio’s other proteinenriching products, bringing the taste and texture of the end product to the forefront. Lactose free for better digestive comfort, Valio says that this new product 56

JAN/FEB 2024 | FOOD BUSINESS AFRICA

can elevate protein puddings, shakes, ice creams, and drinks to the next level. “Valio Eila® MPC 65 can be used to create a versatile selection of lactose free, high-protein products that will taste like they were made from fresh milk and have the texture of traditional snacks and treats. It truly is a game changer in the field of protein-enriched products”, adds Jarna Tanskanen, Business Manager at Valio. To ensure that the flavour and texture of the end product are what the consumers want, Valio conducted a

VALIO EILA MPC 65 CAN BE USED TO CREATE A VERSATILE SELECTION OF LACTOSE-FREE PRODUCTS FOODBUSINESSAFRICA.COM

VERSATILE PECTIN FOR NATURAL GELLING, THICKENING AND STABILISATION OBIPEKTIN from APECX is a natural fibre, which is mainly obtained from apples and citrus fruits. It offers natural gelling, thickening and stabilising properties. OBIPEKTIN can complement or even replace other texturising ingredients in many applications – highly functional and very versatile. Advantages of OBIPEKTIN from APECX  Flexible pectin with versatile use  Perfect texture and mouthfeel for food and beverage products  Plant-based, suitable for vegetarians and vegans  Halal, kosher, non GMO, FSSC 22000 certified

www.apecx.ag

AFRICA FUTURE FOOD SUMMIT JUNE 10-11, 2024 Nairobi, Kenya www.africafuturefoodsummit.com

WELCOME TO

THE CEO SUMMIT ON THE FUTURE OF SUSTAINABLE FOOD SYSTEMS IN AFRICA FOOD NUTRITION & SUSTAINABILITY

REGENERATIVE AGRICULTURE

info@fwafrica.net INVESTING IN & FUNDING FOOD ENTERPRISES

KEY AGENDA ISSUES

+254 725 343 932 FOOD MARKETS, TRADE & LOGISTICS

SCAN FOOD INNOVATION

FOOD TECHNOLOGY