Food Business Middle East & Africa - Issue 69

KENYA’S

ASEPTIC PACKAGING

Kenya’s Meat and Poultry Industry: Confronting Challenges, Seizing Opportunities, and Shaping a Sustainable Future

Food Fraud as a Public Health Threat in Africa: A Rampant Crisis in Plain Sight

FOOD INGREDIENTS MIDDLE EAST & AFRICA

62 Beyond Cocoa: Exploring the Future of Chocolate Alternatives

64 Specialty Ingredients: The Hidden Power Behind Tomorrow’s Foods

Middle East & Africa

Year 12 | Issue No.69 | July - Aug 2025

We publish some of the most influential magazines and websites in Africa & the Middle East regions. Please visit the websites below for more information about our publications.

FOUNDER & PUBLISHER

Francis Juma

SENIOR EDITOR

Martha Kuria

EDITORS

Francis Watari

Nicholas Ng'ang'a

Fridah Chepkoech

Mercy Mukiri

Lydia Khasoa

Mary Wanjira

BUSINESS DEVELOPMENT DIRECTOR

Virginia Nyoro

BUSINESS DEVELOPMENT ASSOCIATE

Jonah Sambai

HEAD OF DESIGN

Clare Ngode

ACCOUNTS

Anita Kinyua

Published By: FW Africa

P.O. Box 1874-00621, Nairobi Kenya

Tel: +254725 343932

Email: info@fwafrica.net

Company Website: www.fwafrica.net

www.foodbusinessmea.com

www.millingmea.com

Food Business Middle East & 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.

www.horecamea.com

www.dairybusinessmea.com

FEE BUSINESS

www.feedbusinessmea.com

www.sustainabilitymea.com

www.healthcaremea.com

www.hpcmagmea.com

Why consumer preferences must drive food industry innovation

Gone are the days when mass-produced, onesize-fits-all products dominated shelves. Today, innovation in food production, packaging, and distribution is not just a competitive edge, it’s a necessity for survival. Consumer preferences, shaped by factors like health awareness, environmental concerns, and technological advancements, are the primary catalysts pushing companies to rethink their strategies. As lifestyles evolve with higher incomes and greater access to information, the demand for year-round innovative food products surges, compelling the industry to adapt or risk obsolescence.

The rise of health-conscious, sustainable choices

One of the most compelling reasons consumer preferences must steer innovation is the growing emphasis on health and wellness. Modern consumers are increasingly prioritizing nutritious, clean-label foods that align with their personal health goals. This shift is evident in the rising demand for plant-based alternatives, low-sugar options, and functional foods enriched with vitamins or probiotics. For instance, trends in 2024 highlighted how delivering the right combination of benefits, such as reduced calories or added nutrients, can grow brand loyalty and market share. Similarly, sustainability has become non-negotiable, with shoppers favoring eco-friendly packaging, ethically sourced ingredients, and products that minimize environmental impact. This evolution is backed by consumer behavior data.

One of the trending consumer push in 2025 is the explosive interest in GLP-1. Once confined to the realms of medical research, glucagon-like peptide-1 (GLP-1) has burst onto the global stage, captivating consumers and compelling food companies to rethink their strategies. This medical-nutritional synergy is driving a seismic shift in eating habits, one that the food industry can no longer afford to overlook. A 2024 PwC survey of 3,000 consumers found GLP-1 users spending less on groceries, particularly snacks, with companies like PepsiCo noting reduced snacking trends attributed to health-focused

behaviors. Food manufacturers are responding by innovating “GLP-1-friendly” products.

Another critical driver is the desire for personalized experiences. Advances in technology, including AI-driven recommendations and data analytics, allow consumers to tailor their food choices like never before. From customizable meal kits to apps that suggest recipes based on dietary restrictions, personalization is transforming how food is developed and marketed. Consumer value toward innovative products often hinges on this trade-off between perceived benefits, such as convenience and specificity, and traditional factors like cost.

The industry must innovate to meet these expectations, incorporating tools like 3D printing for custom snacks or biotech for allergen-free alternatives. As online shopping and food transparency demands increase, companies are compelled to leverage digital platforms for direct consumer feedback, ensuring products evolve in real-time. Ignoring this could mean missing out on segments like millennials and Gen Z, who prioritize tech-integrated, experiential foods over standard offerings.

Consumers wield power through their purchases, directly influencing the food system’s direction by supporting brands that reflect their values. Flavor profiles, for instance, are adapting to diverse cultural preferences, with reports noting how evolving tastes drive innovation in enhancers and textures for processed foods. Food Business Middle East and Africa ensures the industry remains aware of trends by keeping it in tune with consumer-driven trends, delivering in-depth market analyses, consumer behaviour insights, and coverage of innovative practices.

We hope this issue, Issue 69, educates, informs, and pushes the food industry to address emerging consumer trends.

Enjoy your read!!

Martha Kuria Senior Editor FW Africa

EVENTS CALENDAR

International Conference on Contract

Farming

November 18-19, 2025

Sarit Expo Centre, Nairobi, Kenya www.contractfarmingexpo.com

VIV MEA

November 25-27 2025 , Abu Dhabi, UAE www.vivmea.nl

Poultry India 2025

November 26–27, 2025

Hitex Exhibition Centre, Hyderabad, India www.poultryindia.co.in

Halal Expo Istanbul

November 26–29, 2025

Istanbul Expo Center, Istanbul, Turkey www.helalexpo.com.tr

Africa Manufacturing Awards

November 29, 2025

Kampala, Uganda www.manawards.fwafrica.net

Food Africa

December 9–12, 2025

Egypt International Exhibition Center, Cairo, Egypt www.foodafrica-expo.com

Trieste Coffee Experts 2025 Summit

December 6–7, 2025

Trieste, Italy www.triestecoffeexperts.it

35th Annual IAOM MEA Conference & Expo 2025

December 1–4, 2025

Jeddah Hilton (Hilton Hall), Jeddah, Saudi Arabia www.iaom-mea.com/Jeddah-2025/

Gulfood

January 26 -30, 2026

Dubai www.gulfood.com

Africa Dairy Innovations Summit

Argyle Grand Hotel, Kenya

February 2026 www.africadairysummit.com

NEWS UPDATES

By www.foodbusinessmea.com

KEBS secures four international accreditations to strengthen market access, quality infrastructure

KENYA – The Kenya Bureau of Standards (KEBS) has secured four major accreditations from the Kenya Accreditation Service (KENAS), signalling a new era of credibility, competence, and global alignment in conformity assessment. This recognition marks a pivotal chapter in KEBS’ mission to uphold excellence in product quality, safety, and sustainability, both at home and across Africa.

Among the accreditations, KEBS’ Product Certification Scheme was endorsed under ISO/IEC 17065:2012, a globally respected standard that validates its technical capability and impartiality in certifying products, processes, and services. KENAS praised this achievement as a significant boost to intraAfrican trade and consumer protection, positioning KEBS as a trusted certification body on the continent.Additionally, KEBS received accreditation for its African Conformity Assessment Program (ACAP), a sustainability-focused certification initiative grounded in ARS/AES 01:2014, an African standard emphasizing agriculture sustainability and eco-labelling. To further strengthen testing integrity, KEBS was accredited as a Proficiency Testing Provider under ISO/IEC 17043, which ensures that both national and regional laboratories deliver accurate, reliable, and harmonized results. This reinforces the integrity of Kenya’s testing infrastructure and supports quality assurance across sectors.

The fourth accreditation involves an expansion of KEBS’ System Certification scope to include ISO/IEC 27001:2022, a crucial addition in an age defined by information vulnerability and the need for robust data protection systems.Together, these recognitions enhance Kenya’s visibility in global markets, improve market access, build confidence in data security and quality systems, strengthen testing and certification infrastructure, and facilitate the development of more sustainable and transparent supply chains. KEBS Managing Director Esther Ngari described the accreditations as a step toward enhancing trust in the country’s testing, inspection, and certification systems.

PepsiCo expands African footprint with US$20M factory in Nigeria

NIGERIA – PepsiCo, in collaboration with global logistics provider DP World, has officially commissioned a US$20 million manufacturing facility in Lagos, Nigeria. The investment marks a significant milestone in the country’s industrialisation efforts and demonstrates growing foreign confidence in Nigeria’s economy. The facility, which commenced operations this week, produced its first locally made Cheetos snacks and will also manufacture Lay’s and Doritos. More than 90% of raw materials for the plant will be supplied locally, sourced from partners such as Northern Nigeria Flour Mills, Grand Cereals, and Babban Gona.

Nigeria’s Finance Minister, Wale Edun, described the development as evidence of the country’s shift from heavy reliance on imports toward becoming a competitive production hub under the African Continental Free Trade Area (AfCFTA). He credited the Tinubu administration’s economic reforms, including the removal of fuel subsidies, forex liberalisation,

and market-based pricing, for creating an environment that encourages foreign direct investment. Ahmed El-Sheikh, CEO of PepsiCo – Middle East, North Africa, and Pakistan Foods (MENAPAK) and Egypt, emphasised Nigeria’s importance in the company’s global strategy. “Nigeria is central to our strategy. This facility reflects our belief in the country’s future and our commitment to sustainable investment,” he said.

Meanwhile, PepsiCo has extended its longstanding partnership with Lao Brewery Co., Ltd. (LBC) through a new 15-year agreement. The collaboration builds on more than five decades of cooperation and reflects both companies’ confidence in the Lao market. Henrik Andersen, Managing Director of LBC, said the agreement supports the company’s goal of expanding its product portfolio while aligning with Carlsberg’s “Accelerate SAIL’27” strategy, under which LBC operates. The PepsiCo-LBC partnership has been instrumental in shaping the Lao soft drink market, introducing popular global brands including Pepsi, 7UP, Mirinda, and Sting.

Nigerian Breweries bounces back to profitability in H1 2025

NIGERIA – Nigerian Breweries Plc has reported a net profit of N88.4 billion (US$57.8M) for the first half of 2025, marking a significant turnaround from the net loss of N85.2 billion (US$55.7M) recorded in the same period last year. The rebound was supported by a 54 percent year-on-year rise in revenue, which reached N738.1 billion (US$482.8M). The company attributed the revenue growth to stronger commercial execution, strategic pricing adjustments, and improved operational efficiency.

Operating profit surged to N151.9 billion (US$99.4M), almost three times higher than the previous year, while net finance expenses fell sharply by 87 percent, from N154.5 billion (US$101.2M) to N19.7 billion (US$12.9M). This performance reflects a strong recovery from 2024’s losses, which had been driven by foreign exchange translation losses and broader macroeconomic challenges. Analysts have pointed to stabilising exchange rates, a stronger naira, and easing inflation as key contributors to the company’s improved financial health.

Managing Director Thibaut Boidin said the positive results demonstrated the company’s agility and robust fundamentals in a tough operating environment, which has been characterised by high inflation and limited consumer spending power. He noted that Nigerian Breweries had maintained strong commercial execution, implemented effective pricing strategies despite rising input costs, and optimised cost management and operational processes. Boidin added that the significant drop in financing costs, following the prudent application of rights issue proceeds, has improved the company’s balance sheet and reduced its exposure to high-interest rate pressures.

The company recorded a pre-tax profit of N132.2 billion (US$86.6M), compared to a loss of N116.3 billion (US$76.1M) in the first half of 2024. Gross profit nearly doubled to N311 billion (US$203.4), indicating stronger margins despite persistent cost challenges. Company Secretary and Legal Director Uaboi Agbebaku said the board remains committed to long-term value creation through ongoing cost optimisation, improved market execution, and brand equity enhancement.

INVESTMENTS

Victory Farms opens the largest RAS hatchery in Africa

KENYA – Aquaculture firm Victory Farms is increasing its production capacity with the launch of a new hatchery facility at Roo Bay in Homa Bay County. With this launch, Victory Farms has added 30,000 metric tonnes to its annual production capacity, making the hatchery the largest recirculating aquaculture system (RAS) facility of its kind in Africa. The company says the new hatchery, located in the Lake Victoria region, will enable the large-scale production of tilapia fingerlings to meet rising demand for affordable fish in Kenya and the broader East African market.

The company said the hatchery will not only support highvolume production but also improve the quality of fingerlings, resulting in healthier fish and stronger yields for its aquaculture operations. Recently, the farm unveiled plans for a substantial expansion of its tilapia farming operations in Lake Victoria, with a budget of Sh750 million (US$5.8M). According to recent regulatory filings, the project will be situated in a new concession area near Sindo in Homa Bay County. This expansion aims to enhance the company’s current sustainable cage farming operations and tap into both the local and East African tilapia markets.

The move comes in response to the growing demand for fresh tilapia amidst declining natural fish stocks. Presently, fish cage farming is established in five counties around Lake Victoria—Migori, Siaya, Homa Bay, Busia, and Kisumu. The floating cage technology, introduced in 2013 following successful trials by the Kenya Marine and Fisheries Research Institute (KMFRI) at Dunga Beach in Kisumu County, has since evolved into a vital sector. Currently operating from Rowo village in Suba sub-county, Victory Farms plans to boost its fish production from 100,000 tonnes to 150,000 tonnes per year, as stated by the company’s Chief Development Officer, Caeser Asiyo.

Diageo reportedly eyeing stake sale in East African Breweries

KENYA – Diageo Plc has reportedly initiated a strategic review of its majority ownership in East African Breweries Ltd. (EABL). According to Bloomberg, Diageo has selected the Bank of America and Goldman Sachs to undertake the review process which could result in either a complete or partial divestment of EABL’s beer business. Diageo holds a 65% stake in the Nairobi-listed EABL.

Analysts estimate the transaction could generate as much as US$2 billion (approximately Kes 258 billion), exceeding the brewer’s current market valuation of US$1.2 billion on the NSE. The possible divestment aligns with Diageo’s global strategy to adopt an asset-light model aimed at releasing capital and enhancing growth. For the Full Year ended June 30, 2025, EABL posted a 12% growth in profit after tax to Kes 12.2 billion (US$94.4M), attributed to topline growth, foreign exchange gains, and reduced finance costs achieved through lower debt and interest rates.

Net revenue surged 49% to Kes 128.8 billion, compared to Kes 124.1 billion (US$960.3M) recorded the previous year. The company also reported a 2% increase in sales volume, with both beer and spirits segments registering growth across all its markets. Total debt, including overdrafts, was reduced by Kes 8.3 billion (US$64.2M), leading to a notable decline in finance expenses. “The business continued to navigate external pressures, including proliferation of illicit alcohol, sustained input cost inflation and declining consumer spending driven by reduced disposable income,” EABL said.

The company observed that macroeconomic conditions across its operating region remained generally stable. In Kenya, interest rates decreased, and the Kenyan Shilling appreciated against major international currencies, reversing the depreciation trend seen the previous year. Tanzania experienced currency depreciation, although interest rates remained steady, while Uganda’s economic environment was reported to be largely stable

UAC of Nigeria posts US$72.4M revenue in H1 2025

NIGERIA – UAC of Nigeria Plc has seen a 33 per cent increase in revenue for the first half of 2025, reaching N110.4 billion (US$72.4M). According to the company, the growth was driven by rising consumer demand and consistent performance across its major business segments.Gross profit increased 51% to reflect improved pricing strategies and tighter cost controls which resulted in an expansion of gross margins by over 300 basis points.

However, the company’s profit after tax plunged 23% compared to the same period in 2024 attributed to the absence of a one-off foreign exchange gain of N9.4 billion recorded last year.Excluding this exceptional item, underlying profit before tax grew by 91 per cent, indicating stronger business fundamentals.

Group Managing Director, Fola Aiyesimoju, stated: “UAC maintained strong business momentum, driven by gross margin expansion, operational efficiency and improved contributions from associate companies. Looking ahead, we will continue to execute our growth and value creation strategy with discipline and a long-term focus.” UAC stated that it remains optimistic about the long-term potential of the QSR sector and is working to enhance operations and customer engagement.

Recently, the company announced the acquisition of CHI Limited, owner of Chivita and Hollandia food, dairy and beverage business in Nigeria, from The Coca-Cola Company (Coca-Cola). The transaction remains subject to regulatory approval, and financial terms were not disclosed. Aiyesimoju highlighted the move as a significant move to deepen UAC’s presence in Nigeria’s food and beverage market. He noted the synergy between CHI’s portfolio and UAC’s existing brands, which is expected to unlock long-term value through expanded market reach and improved margins.

RCL Foods

posts 28.5% revenue growth in FY 2025

SOUTH AFRICA – RCL Foods has reported a 28.5% increase in full-year earnings, supported by a robust turnaround in its baking business and stronger performance in groceries. The South African food producer, which owns brands such as Selati sugar, Yum Yum peanut butter, and Sunbake bread, said headline earnings per share (HEPS) from continuing operations rose to 156.3 cents for the year ended June. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 11.4% to R2.6 billion (US$148 million), boosted by cost-saving

initiatives. On an underlying basis, excluding one-off items and accounting adjustments, EBITDA from continuing operations increased by 7.9% year-on-year to R2.39 billion.

Group revenue edged 1.8% higher to R26.5 billion (US$1.5B), driven mainly by gains in groceries and baking. Groceries revenue was up 1.8%, supported by a favourable product mix in pet food and greater emphasis on premium brands. Attributable profit for the year came in at R1.6 billion (US$90.3M), slightly down from R1.62 billion (US$91.4M) in the previous year. Revenue from the baking division also rose 1.8%, with bread, buns, and rolls delivering a notable improvement in EBITDA alongside modest volume growth of 1.3%.

The sugar segment, however, faced headwinds in the second half of the year, impacted by weaker consumer demand and a surge in sugar imports into South Africa. EBITDA in the sugar business declined 22% year-on-year to R1.09 billion (US$61.5M). On an underlying basis, groceries EBITDA rose 19% to R592 million (US$33.4M), while baking advanced 55% to R799 million (US$45.1M). Sugar’s underlying EBITDA fell 24% to R963 million (US$54.3M). Chief Executive Officer Paul Cruickshank said the group continues to focus on organic growth through innovation and market opportunities, while remaining open to strategic acquisitions.

Carrefour to sell Italian operations, expands in Africa

ITALY – Carrefour has entered into exclusive negotiations with Italy-based NewPrinces Group for the sale of its entire operations in Italy, marking a significant move in its strategic realignment initiated earlier this year. The planned divestiture covers all of Carrefour’s business activities across the country. According to a statement released by Carrefour, the estimated net impact on the group’s treasury from the transaction is €240 million (US$277.9M). This figure accounts for the company’s financial support to facilitate the deal.

Carrefour Italy runs a multi-format retail network comprising 1,188 outlets. These include 41 hypermarkets, 315 supermarkets, 820 convenience stores, and 12 cash and carry locations. In 2024, the Italian division generated gross sales of €4.2 billion (US$4.86B), contributing roughly 4% to Carrefour’s total global sales. NewPrinces Group, a European agri-food company with operations in four major markets and exports to over 60 countries, has committed to invest at least €200 million (US$231.6M) to strengthen the long-term viability and competitiveness of Carrefour Italy.

In 2024, NewPrinces recorded annual sales of €2.8 billion (US$3.2B). Its first-quarter 2025 performance saw revenues of €672.2 million (US$778.4M) and a net profit of €13.5 million (US$15.6M), reversing a €2.2 million (US$2.5M) loss from the same period last year. Chairman of NewPrinces, Angelo Mastrolia, described the transaction as a major step in the group’s strategy to enhance vertical integration between production and retail distribution. He noted that this acquisition would reinforce value creation across the supply chain. Despite the ownership change, Carrefour stores in Italy will continue operating under the Carrefour brand for a transitional period through a licensing and services agreement. Meanwhile, Carrefour has expanded its operations in the African retail market with the launch of its first store in the Democratic Republic of Congo (DRC).

DIVESTMENTS

Kraft Heinz to split into two independent companies to accelerate growth

U.S.A – The Kraft Heinz Company has announced plans to separate into two publicly traded companies through a tax-free spin-off, aiming to sharpen strategic focus and unlock long-term shareholder value. The company’s Board of Directors unanimously approved the move following a strategic review launched in May 2025. The separation is designed to streamline operations, enhance capital allocation, and maximize the performance of Kraft Heinz’s iconic brand portfolio.The two new entities, with final names to be determined, will be formed around distinct strengths.

Global Taste Elevation Co. will emerge as a US$15.4 billion business in 2024 net sales, anchored by billion-dollar brands Heinz, Philadelphia, and Kraft Mac & Cheese, with a focus on sauces, spreads, seasonings, and shelf-stable meals. North American Grocery Co. will generate US$10.4 billion in 2024 net sales and focus on household staples, including Oscar Mayer, Kraft Singles, and Lunchables, with current Kraft Heinz CEO Carlos Abrams-Rivera set to lead this division. Both companies are expected to maintain investment-grade credit ratings, preserve the current aggregate dividend level, and generate strong discretionary cash flow to fund growth initiatives, shareholder returns, and potential acquisitions.

“By separating into two companies, we can allocate the right level of attention and resources to unlock the potential of each brand,” said Miguel Patricio, current Chair of the Board, who will serve as Executive Chair through the transition. “This will allow us to drive better performance and create long-term shareholder value.”The proposed spin-off, expected to close in the second half of 2026, will be tax-free for shareholders and Kraft Heinz. The company estimates up to US$300 million in dis-synergies but plans to offset a significant portion through efficiency measures. The strategic rationale centers on reducing operational complexity, enabling tailored capital allocation, and allowing each company to focus on distinct growth priorities.

Kenya’s NACADA proposes alcohol sector reforms

KENYA – The National Authority for the Campaign Against Alcohol and Drug Abuse (NACADA) has proposed raising the legal drinking age in Kenya from 18 to 21 years. The proposal is part of a wide-ranging policy framework aimed at preventing, managing, and controlling alcohol, drug, and substance abuse across the country.

NACADA’s proposed measures include barring individuals under 21 from purchasing, handling, or consuming alcohol. Access to alcohol-selling premises by those below this age

would also be prohibited, even if accompanied by adults. The proposals further seek to outlaw the sale and consumption of alcohol in specific public and sensitive areas. Additionally, alternative retail methods such as vending machines, online sales, home deliveries, hawking, and outlets associated with children will be banned from distributing alcohol.

The policy proposals also prohibit the use of individuals under 25 years to advertise alcoholic beverages. It also bars the use of celebrities, media personalities, influencers, and sports figures in any promotional campaigns. Brand sponsorships of sports teams, leagues, or tournaments by alcohol companies would also be disallowed. Likewise, advertisements during watershed hours (5:00 a.m. to 10:00 p.m.) on audio-visual platforms, including foreign broadcasts, would be banned.

NACADA also proposes the mandatory inclusion of health warnings and ingredient labels on alcoholic products. A minimum package size of 250ml would be required. Retail licenses for supermarkets and franchise stores would no longer be issued. Businesses would also be required to meet tax compliance standards. Manufacturing, import, and export licensing would be centralized under the National Government. Alcohol distribution would only be permitted between 6:00 a.m. and 6:00 p.m., using licensed and branded vehicles.

Shoprite exits Ghana and Malawi, as Africa strategy unravels

GHANA - South Africa’s biggest grocery retailer Shoprite Holdings has announced that it is selling its operations in Ghana and Malawi, marking another step towards consolidation of its activities across Africa to focus more on its home market.

The supermarket retailer had expanded extensively in Africa, surpassing rivals such as Pick n Pay and Walmartowned Massmart to become the continent’s leading food retailer in about 15 countries. But forays into markets, including Angola and Nigeria, were marred by currency volatility, double-digit inflation, high import duties and dollarbased rentals.

The group said Shoprite Malawi signed an agreement on June 6 to dispose of five trading stores, pending certain conditions, including approval from the Competition and Fair Trading Commission as well as the Reserve Bank of Malawi. The exit is not unexpected, as Malawi’s economy has been under pressure for years, with growth stagnating from 2022 to 2024. Inflation has also been a key factor, with annual rates exceeding 20% in both 2022 and 2023, and reaching 32.2% in 2024. This surge in prices, coupled with a drop in consumer income and limited access to foreign currency, has reduced the ability of retailers to maintain viable operations.

In Ghana, Shoprite disclosed that it had received a binding

offer in June for the acquisition of seven trading stores and a distribution warehouse. The group described the sale as “highly probable,” signaling a definitive pullout from what was once viewed as a high-growth West African market. The planned sales follow exits from Nigeria, Kenya, Democratic Republic of Congo, Uganda and Madagascar. Shoprite had also restricted capital allocations to its supermarkets outside South Africa. In South Africa, Shoprite continues to expand with the opening of 16 new stores.

RETAIL UPDATES

THE INTERNATIONAL TRADE EXHIBITION FOR FOOD & BEVERAGES

9 - 12 DECEMBER 2025

Egypt International Exhibition Center, Cairo - Egypt

from 35 Participating Countries 1,018 Exhibitors

from 143 Visiting Countries 31,000 Visitors

HOSTED BUYERS PROGRAM

B2B MATCHMAKING PLATFORM

SPECIALIZED CONFERENCE

LIVE COOKING SHOW

South Africa poultry sector raises concerns over U.S. import deal

SOUTH AFRICA – The South African poultry sector has raised concerns against the recent developments involving a trade agreement that expands duty-free poultry imports from the United States. Industry representatives have accused the government of excluding them from consultations on a deal they believe threatens local production and undermines job security.

The concerns follow a statement by Trade, Industry and Competition Minister Parks Tau, who said the agreement would simplify the importation process for U.S. poultry and could unlock trade worth over US$89 million (1.6 billion rand). However, industry players have argued that no communication or engagement preceded the announcement, leaving them uncertain about the deal’s scope and implications.

Industry players have raised concerns over the tariff-rate quota initially introduced in 2016 allowing 65,000 tonnes of U.S. poultry into the country without duties despite ongoing anti-dumping measures. That figure has reportedly grown to 72,000 tonnes, an increase local producers say makes it harder for them to compete in an already difficult market. The association argues that the current arrangement gives the U.S. a trade advantage, as South African poultry exporters continue to face restricted access to the American market.

Producers say the one-way nature of the agreement leaves them vulnerable, especially at a time when feed costs and other inputs remain high and economic pressures continue to mount. As a result, SAPA is now calling on the government to explain the deal announced on July 29 and to scrap the import quota as soon as possible. They warn that without these changes, the local poultry sector could suffer significant damage including farm shutdowns, job losses and reduced food availability.

While the South African Poultry Association (SAPA) remains open to future discussions, it insists that any new trade arrangements must be transparent, inclusive and balanced in order to safeguard South African livelihoods.

INVESTMENTS

Mondelēz

opens Australia’s largest US$130M chocolate distribution facility

AUSTRALIA – Mondelēz International has officially opened a US$130 million distribution centre in Truganina, Victoria, now the largest facility of its kind in Australia. The 44,000-squaremetre facility will manage over 50,000 pallets and boost storage capacity by nearly 60 per cent, supporting streamlined distribution across Australia. It will process every locally made product from Cadbury, Pascall, The Natural Confectionery Company, and Olina’s Bakehouse, including four million Cadbury Dairy Milk blocks each week and 18.2 million Cherry Ripe bars annually.

Located within the Wyndham industrial corridor, the centre strengthens Mondelez’s long-term footprint in Australia’s food manufacturing sector. The facility is equipped with state-of-the-art automation, temperature-controlled zones, and sustainable features, including solar infrastructure and energy-efficient lighting. The Truganina investment follows major upgrades at other facilities, including US$75 million at the Claremont chocolate factory in Tasmania and US$20 million in new machinery across various Australian sites.

The centre’s launch also comes as the global chocolate industry faces headwinds, including surging cocoa prices and shifts in consumer behaviour amid economic uncertainty. Mondelēz has responded by introducing smaller 100g chocolate blocks to help manage input costs while retaining value for consumers. In its second quarter ended June 30, the company’s net revenue surged 7.7% to US$8.98 billion supported by continued consumer demand for its premium chocolates and biscuits across international markets. Gross profit increased 5% to US$2.9 billion, primarily attributed to a decline in adjusted gross profit margin. Operating income surged 37.1% to US$1.1 billion, mainly due to favourable yearover-year changes in derivative impacts, reduced acquisitionrelated expenses, and the absence of prior-year costs tied to the completed Simplify to Grow Program.

Reliance to invest US$184.8M in new Campa Cola bottling plant in Karnataka, India

INDIA – Reliance Consumer Products Ltd (RCPL) is set to establish a new Rs 1,622 crore (US$184.8M) Campa Cola bottling facility in Vijayapura district, Karnataka. The bottling facility will be set up on 100 acres of land at Mulawada Industrial Area Phase 2. The project is expected to create around 1,200 direct employment opportunities, significantly boosting the industrial landscape of the region. Karnataka’s Minister of Large and Medium Industries, MB Patil stated that the government has already allocated the required land for the project and confirmed that RCPL’s investment forms part of a broader industrial development push in Vijayapura. The new Campa Cola plant forms part of RCPL’s broader expansion strategy in the Indian beverage market.

The company recently entered early-stage discussions to acquire a majority stake in Shunya, a zero-calorie health beverage brand owned by Naturedge Beverages, a subsidiary

of Baidyanath Group. Shunya produces herbal-based drinks in flavours like zesty apple and orange. Financial details of the potential acquisition remain undisclosed. If successful, Shunya would become the fourth brand under RCPL’s beverage segment, alongside Campa, Sosyo, and RasKik.

In June, RCPL also announced plans to invest between Rs 6,000 crore (US$683.5M) and Rs 8,000 crore (US$911.3M) over the next 12 to 15 months to develop 10 to 12 beverage manufacturing units nationwide. These will include both greenfield plants and co-packing facilities. Reliance Industries has also announced plans to establish a new subsidiary, New Reliance Consumer Products, to consolidate and operate all its fast-moving consumer goods (FMCG) brands. The restructuring plan involves spinning off the company’s consumer-facing brands from its current retail division to create a standalone entity with clearer visibility and strategic direction.

Vinarchy appoints Amanda Almond as new EMEA Managing Director

MEA - Vinarchy has named Amanda Almond as its new managing director for Europe, the Middle East, and Africa, effective 1 September 2025, replacing Derek Nicol, who is stepping down from the position to pursue other professional opportunities.

Almond has more than 25 years of experience in the beverage sector, with senior leadership positions at Bacardi, PepsiCo, and Lindt & Sprüngli. Her most recent role was at Bacardi, where she managed operations across Northern Europe, Iberia, Greece, the United Kingdom, and Ireland until July, ending a 12-year career with the company. Vinarchy’s executive chairman, Ben Clarke, described Almond as an executive with proven commercial expertise and leadership ability, noting her experience in building premium brands and developing teams.

In a statement, Almond said she was eager to take on the role and emphasized her commitment to working closely with regional teams and customers to expand Vinarchy’s portfolio and strengthen its position in the wine category.

Vinarchy was created in April 2025 by Australian Wine Holdco Limited, a consortium of global institutional investors.

Coca-Cola Beverages Uganda name Emmy Hashakimana as new General Manager

UGANDA - Coca-Cola Beverages Uganda has appointed Emmy Hashakimana as its new General Manager, effective August 12, 2025. Hashakimana joins from Uganda Breweries, where he most recently held the position of Commercial Director.

He began his career at Unilever before moving to Uganda Breweries in 2012 as Head of Customer Marketing. During his time with the company, he took on a series of senior roles, including five years in London with Diageo’s Global Innovation Team, where he served as Head of Innovation Commercialisation for Africa. On returning to Uganda, he led marketing and innovation before advancing to Commercial Director, where he managed a team of more than 200 employees.

Gavin Hudson, Chief Operating Officer of Coca-Cola Beverages Africa, said the appointment reflects the company’s commitment to building a leadership pipeline from within Africa. Hudson noted that the group, which operates as the largest Coca-Cola bottler on the continent, is focusing on developing local talent and maintaining an inclusive workplace. He added that Coca-Cola Beverages Africa has been named a Top Employer in Uganda, three other national markets, and across the region.

International Council of Beverages appoints Iddah Asin as Executive Director, Africa chapter

KENYA - The International Council of Beverages Associations has appointed Kenyan lawyer and policy specialist Iddah Asin as Executive Director of its newly established Africa chapter. The appointment was announced during the launch of ICBA Africa in Nairobi, where the organization has opened its first office on the continent.

Asin previously held senior government affairs roles at Johnson & Johnson and Kenya Airways, bringing experience in policy engagement and public-private collaboration. In her statement, she said she was honoured to take on the position and committed to advancing the beverage industry’s contribution to social and economic development across Africa.

The Africa office becomes part of ICBA’s global structure, which also includes regional chapters in Latin America and Asia Pacific. ICBA, founded in 1995, represents national associations and multinational producers of nonalcoholic drinks such as soft drinks, bottled water, juices, energy drinks, sports drinks, and ready-to-drink teas and coffees. ICBA President Andrés Massieu described the establishment of the chapter as a strategic move and said Asin’s expertise in health and sustainability issues would support collaboration across the region.

Ghana appoints William Coffie as acting head of Cocoa Processing Company

GHANA - President John Dramani Mahama has named Professor William Coffie as Acting Managing Director of the Cocoa Processing Company Limited. Coffie, who teaches accounting and finance at the University of Ghana Business School, will step into the role with the task of improving the performance of the state-owned processor.

His background spans more than two decades in accounting, finance, economics, and investment, and he is also a chartered accountant and chartered marketer. He has held academic posts at institutions in the United Kingdom and Hong Kong, including the University of Wolverhampton, Birmingham City University, and Hong Kong City University.

The leadership change comes at a difficult moment for the company, which has reported losses for several consecutive years. For the third quarter ending June 30, 2025, CPC recorded a net loss of US$10.23 million, compared with US$9.57 million in the same period a year earlier.Operating losses widened to US$7.29 million from US$6.94 million, and revenue declined by 27 percent to US$16.16 million, down from US$22.20 million in 2024.

Coca-Cola appoints Luis

Felipe Avellar as president of Africa unit

AFRICA - The Coca-Cola Company has appointed Luis Felipe Avellar as president of its Africa operating unit, effective September 1. Avellar, who is currently president of Coca-Cola’s Mexico business within the Latin America unit, will succeed Luisa Ortega.

Avellar will report directly to Executive Vice President and Chief Operating Officer Henrique Braun, who said the appointment reflects both Avellar’s international experience and his prior work in Africa. Braun noted that Avellar had already led operations in Johannesburg, adding that his return to the continent comes as Coca-Cola seeks to expand in the African market.

Avellar, 49, joined Coca-Cola in 2002 as a finance specialist in Brazil and progressed through a series of leadership roles in that market. He was appointed general manager of the Brazil South Region in 2016 before moving to Johannesburg in 2019 as vice president and general manager for Southern Africa. In 2021, he returned to Latin America to oversee Brazil and South Cone operations, later taking charge of the company’s Mexico business in 2023.His new role begins as Coca-Cola Beverages Africa, the continent’s largest bottler, continues to expand capacity and invest in new infrastructure.

Elmenus name Walid ElSaadany as CEO to lead AI expansion and scaling

EGYPT - Elmenus, the Egypt-based food discovery and delivery platform, has appointed Walid El-Saadany as Chief Executive Officer and member of the Board of Directors.He replaces founder Amir Allam, who will continue to serve on the company’s Board.

El-Saadany brings nearly two decades of experience in technology, logistics, and startups backed by international investors. He previously worked at Otlob, where he oversaw acquisitions by Foodpanda and later Delivery Hero, which rebranded the platform under Talabat. Elmenus said the leadership transition is intended to support operational scaling and deeper integration of artificial intelligence into its services.

The company plans to introduce AI-powered tools designed to improve restaurant discovery, optimize logistics, and provide more personalized recommendations for customers. These tools are also expected to assist restaurant partners with pricing, customer engagement, and operational planning. Beyond technology, the company intends to invest in workforce development, with training programs aimed at delivery riders and software engineers. Founded in 2011, Elmenus has grown to serve over 8.5 million unique users across four cities in Egypt.

AFRICA FOOD MANUFACTURING EXPO 2025

Did you miss the Africa Food Manufacturing Expo - Kenya & Eastern Africa edition 2025, Africa’s No.1 Food & Beverage Manufacturing and Milling Industry Trade Shows and Conferences? Here is a glimpse of what you missed, but dont worry, we have you covered in 2026!!

Held from July 2–4, 2025 at the Sarit Expo Centre in Nairobi, the event was more than just an exhibition, it was a story of how Africa is reimagining the way it feeds, serves, and manufactures for itself and the world.

For the first time, Africa Manufacturing Week and Africa Food & Hospitality Week came together, uniting industries that are often treated separately, food processing, hospitality, packaging, logistics, animal feed, and personal care. The result was a vibrant showcase of innovation and collaboration, with over 80 exhibitors presenting cutting-edge machinery, sustainable packaging solutions, plant-based ingredients, and digital logistics platforms.

The 13-session conference program, powered by leading sponsors such as Kerry, Bühler, IFF, AGF, and Dohler, explored urgent themes including food security, circular economy strategies, protein alternatives, and digitization. Conversations underscored a shared mission: growth that is both profitable and sustainable. Beyond the Expo hall, the Africa TasteMasters Culinary Festival captured hearts with flavors that told stories of culture and creativity.

From West, South and Eastern Africa, 2026 got you covered!! You can never miss

• AFMASS Zambia & Southern Africa

Edition - March 25-27, 2026 | Lusaka, Zambia - 3rd edition

• AFMASS Nigeria & Western Africa

Edition - June 2-4, 2026 | Lagos, Nigeria - 1st edition

• AFMASS Kenya & Eastern Africa

Edition - July 15-17, 2026 | Sarit Expo Centre, Nairobi, Kenya - 11th edition

JULY

2-4,

2025 - SARIT EXPO CENTRE NAIROBI, KENYA

JULY

2-4,

2025 - SARIT EXPO CENTRE NAIROBI, KENYA

AFRICA FOOD MANUFACTURING EXPO

JULY

2-4,

2025 - SARIT EXPO CENTRE NAIROBI, KENYA

ROYAL LALA SWEETENED

Royal Fresh Brands

Royal Fresh Brands, under Wakulima Dairy Ltd, has expanded its range with the launch of Royal Lala Sweetened, a “creamy, tangy, and perfectly sweet” fermented milk.

Building on the popularity of its unsweetened Royal Lala, this new option caters to consumers who prefer a touch of sweetness in their dairy.

Described by the brand as smooth and rich, the product’s carefully calibrated sweetening preserves natural lactose while minimising glycemic load, striking a balance between indulgence and health.

www.wakulimadairy.co.ke

CHIPSY X HEINZ POTATO CHIPS

Chipsy

Chipsy, a leading snacks manufacturer in Egypt owned by Pepsico, has partnered with global condiment brand Heinz to debut three bold potato chip flavours in Egypt: Tomato Ketchup, BBQ, and Burger Sauce.

Inspired by Heinz’s signature condiments, the new chips are crafted to capture the tangy, smoky, and creamy profiles of their sauce counterparts, evoking the taste of a loaded sandwich.

The collaboration combines Chipsy’s strong local appeal with Heinz’s worldwide flavour recognition. Packaged with the iconic Heinz ketchup bottle silhouette, the range delivers a striking shelf presence that is impossible to ignore.

Bull Brand

Bull Brand, a household name in South Africa’s canned meat market, has broadened its ready-to-eat range with the launch of curried chicken mince with vegetables, the first time the brand has ventured beyond beef.

Packaged in a 400g can, the product is designed for convenience, ready to heat and serve with rice, pap, pasta, mash, or wraps.

Parent company RFG Foods highlights that the mince contains no added pork or MSG, is low in fat, and provides energy, making it ideal for younger, time-conscious consumers seeking quick, wholesome meals.

RUBICON DRINKS

Rubicon Kids

Rubicon has launched Rubicon Kids, a 100% juice line tailored for children, free from added sugar, artificial sweeteners, colours, flavours, and preservatives in the UAE.

The range debuts with three tropical-inspired blends: Mango & Apple, Pineapple & Coconut, and Tropical Fruit, crafted from real fruit juice to balance taste and nutrition.

“Parents today are reading labels more closely than ever, and we’ve listened,” said Jose Jacob, CEO AMEA for Rubicon Arabia.

www.rubicondrinks.com

BLUE BAND WITH VANILLA

Flora Food Group

Flora Food Group has quietly rolled out Blue Band With Vanilla margarine in major Kenyan retail stores, adding a sweet twist to one of the country’s most popular spreads.

With a 72% fat content, it performs much like Blue Band Original, making it suitable for both baking and everyday use on bread.

The new variant builds on Blue Band’s loyal fan base while tapping into the growing consumer preference for vanilla-flavoured margarines in Kenya, offering home bakers and families a familiar yet indulgent option.

www.blueband.com

CIAMBELLA CAKE

DPL Festive

DPL Festive introduced its Ciambella Cake, a traditional Italian ring cake, at the recently concluded AFMASS Food Manufacturing Expo held from July 2–4 at the Sarit Expo Center in Nairobi, Kenya.

The cakes are available in four flavours, vanilla, blueberry, coffee, and chocolate, bringing a taste of Italy to local consumers. To elevate the indulgence, DPL Festive has partnered with household brand Zesta to supply custard powder, creating a creamy sauce pairing for the cakes.

www.dplfestive.com

BREWING Change

How Spring Valley Coffee is Redefining Kenya’s

Specialty Coffee Industry

By Lydia Khasoa

Kenya has long been acclaimed for producing some of the world’s finest Arabica coffee, grown across its rich agricultural zones. Despite an annual output of approximately 45,000 metric tonnes, the bulk of this harvest has historically been destined for foreign markets. In the 2020–21 season, around 95% of Kenya’s coffee was exported as green beans, with just 3% consumed locally and another 2% exported as value-added products, such as roasted or ground coffee.

However, this narrative is beginning to shift. Domestic consumption has more than doubled since the early 2010s, from about 630 metric tonnes in 2012 to nearly 2,000 tonnes by mid-2023, a year-on-year rise of over 20%. This resurgence is tightly linked to a growing café culture, with new speciality coffee shops springing up statewide. It’s within this evolving ecosystem that Spring Valley Coffee has positioned itself as a transformative force.

In a discussion with the Food Business Middle East & Africa team, CEO Ritesh Doshi shared how the brand’s identity has mirrored Kenya’s own shifting coffee narrative. As the Food Business MEA team enjoyed slices of their signature mocha bites and savoured a Zanzibari latte on-site, the brand’s story revealed itself to be layered, much like the flavours it serves.

FROM NEIGHBORHOOD CAFÉ TO GLOBAL SPECIALTY BRAND

Spring Valley Coffee, which began in 2009 as a small neighbourhood café and roastery, has grown into a prominent player in the specialty coffee space. Ritesh Doshi, raised between Kenya & the US, brought an international business lens to the enterprise when he acquired Spring Valley Coffee in 2018.

Initially a loyal customer, he saw untapped potential in Kenya's rich coffee heritage. "The best Kenyan coffees were being exported," Doshi explains. "Very little quality coffee was available locally, especially at the specialty level." This disconnect stirred his desire to change the narrative and make specialtygrade Kenyan coffee accessible to local consumers.

A PHILOSOPHY ROOTED IN QUALITY AND PURPOSE

Today, Spring Valley Coffee stands as Kenya’s largest specialty coffee roaster and the third-largest coffee roaster overall. Yet, despite its growing scale,

the company has intentionally chosen quality over quantity. Doshi emphasizes that while the roastery has the capacity to quadruple its output, the focus remains on attention to detail and delivering exceptional coffee. Each batch is curated to bring out the best flavors that Kenyan terroirs have to offer.

WHILE THE ROASTERY HAS THE CAPACITY TO QUADRUPLE ITS OUTPUT, THE FOCUS REMAINS ON ATTENTION TO DETAIL AND DELIVERING EXCEPTIONAL COFFEE.

Their primary offering is roasted coffee beans sold in multiples sizes: 250g & 500g for retail and larger packs for the hospitality sector. The emphasis on smaller, fresher batches aligns with their specialty ethos, ensuring that customers enjoy coffee at its peak flavor.

The brand’s diverse product range features coffees from all corners of Kenya, including Nyeri, Nanyuki, Bungoma, Embu, Machakos, Mount Elgon, and Nandi Hills. Among the most popular offerings is Asili (formerly known as ‘Gourmet’) a medium roast that has been a staple since the company’s inception.

Another favorite is Masara (previously known as ‘Espresso’), a dark roast ideal for milkbased beverages, which takes its name from one of the oldest coffee estates in the Spring Valley area. Elgon, a naturally processed coffee from the slopes of Mt. Elgon, offers a fruitier, earthier experience that stands apart from the fully washed profiles typically associated with Kenyan coffee.

To serve a variety of customer needs, the brand has expanded into fully compostable

espresso capsules, catering to home baristas who use capsule machines. Another creative addition is the Mocha Bite, a chocolate-covered coffee treat developed during the COVID-19 pandemic. “It’s a fun, convenient way to enjoy coffee outside of the cup,” Mr. Dosh notes. Seasonal and limitededition releases, such as Gitura from Murang’a, rotate through the year to mark milestones like the opening of their London café.

Looking ahead, the brand is set to launch Kenya’s first certified organic coffee, a significant milestone in both quality and sustainability.

SPECIALTY STANDARDS: SPRING VALLEY COFFEE’S COMMITMENT FROM FARM TO CUP

Spring Valley Coffee’s reputation as a leading Kenyan roaster is grounded in its commitment to specialty-grade quality and transparent sourcing. The company has traditionally followed the Specialty Coffee Association (SCA) criteria, ensuring every coffee it roasts scores above 80 on the 100-point scale. “Producing specialty coffee demands higher input costs but also provides better returns for everyone involved, particularly the farmers,” says Doshi. Going forward, Spring Valley Coffee is transition to the new Coffee Value Assessment (CVA) standard being introduced by the SCA.

Every bag of coffee tells a story, carrying the names of the farms,cooperatives, or region where the beans were grown and the roasters

Ritesh Doshi - CEO, Spring Valley Coffee

who crafted the final product. “Customers know who roasted their coffee, Sharon, Godwin, Fred, or Mohammed, and they can trace it all the way back to the farm. It’s about authenticity,” Doshi adds.

This authenticity is rooted in a sourcing model built on traceability and integrity. Spring Valley sources all its beans within Kenya. “What’s beautiful in Kenya is that we have great traceability,” says Doshi. “We can trace that coffee back to the exact lot, the cooperative, even the farm.” By working closely with farmers and customising roast profiles for each origin, the company honours Kenya’s diverse terroirs, bringing out nuanced flavours and reinforcing its position in the global speciality market.

EXPORTING KENYA’S BEST: FROM NAIROBI TO LONDON

In June 2025, Spring Valley Coffee reached a new milestone by opening its first international café in London. This bold move was not just about global expansion; it was a statement of confidence in the capability of Kenyan coffee to meet international specialty standards.

“We wanted to showcase the gift of incredible Kenyan coffee and delightful African hospitality to the world,” says Doshi. Rather than exporting green beans for roasting abroad, the company insists on roasting at origin and shipping finished products.

While export sales currently make up about 5% of total business, the segment is growing. Spring Valley has also embraced e-commerce, shipping directly to customers in nearly 20 countries. This global digital footprint continues to

build partnerships with international hospitality businesses.

The London café is both a retail space and a platform to introduce the world to Kenya’s rich coffee heritage, roasted and brewed at the source. Roasting coffee at home and taking it to the world was innovative when we started doing it,” he explains. “Most people are roasting in New York, London, Berlin, or Melbourne. We’re saying we can do it in Nairobi, to a global standard.”

EMBRACING INNOVATION AND SUSTAINABILITY

Spring Valley Coffee is not just known for its premium offerings; it also stands out for its commitment to sustainability.

As Kenya’s first certified B Corp coffee company, it operates with a triple bottom line: people, planet, and profit. This ethos is reflected in every aspect of its operations. Packaging is made from recyclable materials, coffee capsules are fully compostable, and spent grounds are repurposed into fertilizer. Even the water used in roasting is treated and reused to irrigate the surrounding landscape.

Doshi points out that the company has opted not to pursue certifications like Fairtrade or Rainforest Alliance, which can be cost-prohibitive for small producers. Instead, the company focuses on building meaningful relationships and investing in producer communities. For example, in Nandi Hills, Spring Valley helped install a water harvesting system and upgraded washing station infrastructure.

A major breakthrough on the horizon is the release of Kenya’s first certified organic coffee, Kikaboni. After collaboration with two dedicated producers, the company is set to launch this product in the local market, further cementing its position as an innovator in the industry.

INVESTING IN PEOPLE, HONORING CULTURE, AND SHAPING COFFEE CONVERSATIONS

Spring Valley Coffee’s commitment to people and culture is reflected in how it builds and empowers its team. Since 2018, the company has grown from a staff of seven to over 100 employees. Doshi reveals that average wages are significantly higher than industry benchmarks, and continuous training is a core part of the business.

Staff from all departments, including sales, operations, and café service, rotate through the cupping lab to gain firsthand

understanding of product quality. Participation in barista championships and access to ongoing training & development support a strong internal learning culture. Many employees have grown into leadership roles, reinforcing Spring Valley’s focus on internal development.

This people-first mindset extends into every aspect of the company. “Despite the growth, I still know every team member by name,” says Ritesh Doshi. Maintaining a strong team culture has become both a challenge and a foundation for the business.

Spring Valley’s cafés, now eight across Nairobi, are designed to feel like local neighborhood coffee shops. Baristas greet customers by name and remember their preferences, creating personal connections and a welcoming atmosphere. As customer curiosity grows, so does their coffee journey: from sweet mochas to cappuccinos to espressos and eventually pour overs. This shift helps them understand the role of origin, processing method, and roast in flavor development.

The company also equips consumers and hospitality partners with premium brewing tools, offering respected global brands like La Marzocco, Mahlkönig, and Hario. Its coffees are served in over 150 hotels, restaurants, and cafés and are available in premium supermarkets across Kenya.

Spring Valley’s growth parallels the evolution of Kenya’s coffee culture. “Traditionally, we all drink a lot of tea,” says Doshi. Coffee, when it entered the local market, was mostly instant. Early pioneers like Dorman’s and Java helped introduce coffee culture. But Spring Valley chose a more focused approach. “We don’t even do hot food in our cafés,” says Doshi. “That was intentional. We wanted to prove that incredible coffee alone could be the focus.” That decision has helped shift the demographic from largely expatriate to majority Kenyan.

STAYING AHEAD WITH TECHNOLOGY

Spring Valley uses modern technology in roasting, applying

data to monitor moisture levels and roast profiles. While roasting remains a manual process, technology helps fine-tune results and ensure consistency. The company is also cautiously experimenting with AI to streamline administrative tasks and free up staff to focus on hospitality and product excellence.

Spring Valley leverages technology not just for efficiency but to enhance coffee quality. While roasting is still largely manual, it is supported by data analytics to track moisture content, roast profiles, and color consistency. Emerging tools, including limited applications of AI, are being used to automate repetitive tasks, allowing staff to focus on improving customer and product experiences.

In terms of trends, the company remains grounded. Rather than chase fads like matcha or flavored co-ferments, it focuses on methods that enhance coffee naturally. Experiments with anaerobic and aerobic fermentations are welcomed - but only when they bring out the inherent character of the coffee, not mask it.

CHALLENGES IN GROWTH

Despite its many achievements, Spring Valley has not been immune to challenges. High interest rates in Kenya make capital investment difficult, with local borrowing costs between 18% and 20%, compared to 2–5% in the Global North. Regulatory hurdles, particularly around exporting within Africa, add another layer of complexity.

Still, the company is pressing forward. Its short-term goals include expanding its café network and deepening its role as a thought leader in Kenya. “We’re focused on being coffeeforward in everything we do,” Doshi says. “We’re not looking to do food or alcohol. We’re here to showcase coffee.”

Ritesh highlights the need for policies that better support producers, especially around delayed farmer payments that weaken reinvestment cycles. Competing cash crops like avocado and macadamia, along with the requirement for local roasters to buy green coffee in U.S. dollars while selling in Kenyan shillings, further strain the system and hinder domestic growth. Still, Ritesh remains optimistic, aspiring to be on par with the best coffee roasters in the world.

THE LEGACY IN THE MAKING

Spring Valley Coffee is not chasing accolades or recognition for their own sake. Instead, it is building a new model, one where value is retained locally, where producers are celebrated, and where coffee is more than a commodity. “We’re not trying to be the best African coffee roaster abroad,” says Dos

Ritesh sees a future where Kenyan coffee is roasted and branded locally to global standards, allowing the country to capture more value at origin without compromising on quality. His goal isn't just to build a Kenyan coffee legacy, but to inspire a broader shift across African agriculture, proving that world-class products can be made at home.

“We roast with purpose,” Ritesh concludes. “Every cup should make you proud. Proud of where it came from, and proud of where it’s going.” FBMEA

in BREWING SORGHUM

Beer is one of the oldest fermented beverages and one of the most consumed low-alcohol drinks in the world, with an increase in consumption year over year. According to Straits Research, the global beer market size was valued at US$855.21 billion in 2024 and is projected to reach from US$897.08 billion in 2025 to US$1314.86 billion by 2033, growing at a CAGR of 4.9% during the forecast period (2025-2033).

The conventional raw materials for obtaining beer are barley malt or wheat malt. However, changing weather patterns and increasing demand for these raw materials has resulted in an increase in prices and thus increasing the cost of production. To cope with this short fall, brewers majorly in Africa are increasingly turning to sorghum as a substitute raw material for beer production.

Tolokazi brewery is one of the few craft beer producers that has emerged as a pioneer in sorghum beer production. Tolokazi beer brand pays homage to female brewers of the African soil - past, present and future.

In this interview with Food Business Middle East and Africa (FBMEA), Apiwe Nxusani-Mawela, founder and CEO of Tolokazi brewery, narrates her venture into sorghum beer production and the trends driving brewers to utilizing sorghum in beer production.

FBMEA: Tell us a bit about yourself. What drove you to use sorghum in your beers?

I am Apiwe Nxusani-Mawela, founder and CEO of Tolokazi Brewery. I am one of the passionate female brewers in the African brewing industry. My interest in utilizing sorghum in brewing started after being trained as a brewer and realizing that, you know, understanding how clear beer is made but not knowing much about the traditional African beer. So the interest in improving beer made with sorghum started from there. This was back when I was still working for South African Breweries and started training as a brewer. In 2015 I did a course through the University of South Africa (UniSA), which was the thought for Africa’s renewal. In the course, we challenged ourselves to unearth how to bring about the rebirth of Africa and showcase what the continent has to offer to the world. I think for me that is where the interest in using African ingredients in brewing stemmed

Apiwe Nxusani-Mawela:

Future Proofing Africa’s brewing industry through Sorghum utilisation

By Francis Watari

from. After I left, I started playing around more with the use of Sorghum and other African ingredients in our range of beers. Most of the beer ranges we make have some African ingredient, whether it’s sorghum or fruits like Mango and Marula.

FBMEA: What unique properties of sorghum make it suitable for brewing?

Sorghum is obviously typically used in traditional beers and not so much in clear beers. So, you are starting to see a few breweries like Kweza Brewery in Rwanda utilizing sorghum in brewing. Obviously, the attribute of beer made with sorghum is different compared to barley-based beer.

The beer profile differs, and this at times, can make the beer not well received by consumers especially if you are making a lager, which by what consumers are used to is typically clear and crisp. For sorghum, the beer produced gives a distinct sorghum character which is typically like earthy notes, and more multi-notes which can then make the beer slightly different. Sorghum is also known to be drug resistant.

For me, using sorghum is more than its agricultural benefits, and more of how to make the grain celebrated amongst other grains that are used in making beer, especially with the issues of climate change and barley shortages due to the wars in Ukraine. And so, how do we as an industry future-proof our peers? I think that, especially, we as African brewers need to start looking at using our own grains, our own ingredients.

FBMEA: How is the community benefiting from the use of sorghum in brewing?

The more the brewers use the grain, the more we’ll get farmers growing it and in the long-term, benefit from it. The communities around such brewers also benefit from the production activities. Brewing companies create other businesses in the community as members of the society start activities around farming, transport services, and work as employees in these companies. In the long run, this helps in solving community issues such as reducing unemployment rates which is a major crisis in the continent.

The big question remains; how do we create jobs? As you know barley production in Africa is not sufficient to cater to the production needs. By adopting sorghum-which is majorly grown locally in large quantities-you are creating more jobs

through the local economy, and not just in the brewing world, but also other jobs throughout the value chain.

FBMEA: What are some of the challenges you face when using sorghum in brewing?

The major challenge is access to appropriate brewing technology. Most of the brewing systems that we currently use are not built for brewing with sorghum. For example, sorghum grain does not have a husk which brings a major struggle during lautering. Additionally, information on use of sorghum in brewing is scarce. Sorghum is handled differently and some of the brewers are not familiar with these handling techniques due to lack of adequate information. Most of the books written on brewing focus more on use of barley, so you find that information on use of sorghum is not readily available.

Enzymatic activity of sorghum brings another challenge. Sorghum has a lower β-amylase activity than barley malt, but a higher α-amylase activity. Reduced enzyme activity results in a decrease in the amount of fermentable carbohydrates produced, an increase in the concentration of dextrins, and ultimately an increase in viscosity. Kafirins present in Sorghum restricts gelatinization temperature. As a result, only a portion of starch is hydrolyzed into fermentable sugars. Therefore, using sorghum in brewing necessitates a suitable malting procedure to prevent technological issues.

FBMEA: How can brewers overcome these challenges?

Overcoming these challenges requires incorporating alternatives in the brewing process. For example, brewers can opt to use commercially available enzymes to supplement the enzymatic activity of sorghum. For my case, we do not rely on the use of 100% sorghum. We rely on the use of barley enzymes to facilitate the conversion. This requires playing with the ratio of barley to sorghum where the intention is not to brew a gluten free beer. When making a gluten free beer, that’s where one can opt to use enzymes. Brewers should also try to adopt new technologies capable of handling sorghum in brewing.

FBMEA: What would you say is the future of sorghum beer in the brewing industry?

The future looks bright! As you know, unlike barley which does not do so well in the African climate, especially the subSaharan Africa, sorghum holds immense potential in the brewing industry. Sorghum is drought-resistant and only requires fewer inputs making it cheaper and more sustainable for farmers unlike barley. Given these qualities, with the growing demand for beer in the continent, most brewers are increasingly adopting sorghum due to barley sourcing issues. In a world increasingly heavy on sustainable ways of doing things especially minimizing water usage, sorghum will hold an immensely huge role in the brewing industry.

Additionally, sorghum beer is gaining traction among consumers due to its intrinsic benefits. Craft breweries are increasingly changing how we consume our beloved traditional beers which have been around for long. The more we get more brewers using these local ingredients, the more we get

more consumers tasting the product and as a result get more people consuming the beer. Eventually, these will open up more opportunities for sorghum beer in the community.

FBMEA: Is there a role the government needs to play to promote sorghum beer production?

The government needs to incentivize the use of local ingredients in every industry. Even though some countries have incentives for such, I believe there is room for other governments that may not have these incentives in place to really encourage localisation and push the industry towards that narrative of utilizing local ingredients and not just talk about it. The government also needs to come to the party and encourage people to make that shift; appreciating drinks made with local ingredients.

FBMEA: What is your rallying call to brewers in the continent?

I believe that we as brewers within the African continent need to start creating our own unique beers using what is readily available to us. We need to be the champions of sustainable brewing and looking at future proofing the industry. From a tourist perspective, when tourists visit our land, they want to experience what we offer and part of that is the drinks.

For our industry to grow, we also need our brewers to start looking at their role in sustainable trading. How do the play their own part in that and not just rely on the government or other people to do it. As an industry, the question becomes, how do we then ensure sustainability within brewing?

Opportunities for Reverse Logistics in the Food Industry

IBenchmark Strategies

Across Africa, Middle East & Asia

By Fridah Chepkoech

n food supply chains, products don’t just move forward. Sometimes they need to come back because they are expired, damaged, or unsold. What happens next can either add to waste or open new opportunities. This is where reverse logistics comes in: the organised process of moving products back from the point of use to the point of origin for reuse, resale, recycling, donation, or safe disposal.

While traditionally overlooked in food systems due to perishability and complexity, recent innovations and regulatory pressures have pushed manufacturers and retailers to rethink their supply chains. Across regions like Africa, the Middle East, and Asia, food and beverage companies are increasingly adopting reverse logistics not just as a compliance measure, but as a competitive advantage.

THE

This article explores the opportunities reverse logistics presents for the food industry, drawing on successful regional strategies. To ground this discussion, we start with insights from two compelling studies on replicable implementation approaches in Malaysia and Kenya.

MALAYSIAN AND KENYAN

CASE STUDIES: LESSONS FOR THE FOOD INDUSTRY

Reverse logistics is gaining traction across both developed and emerging markets, but its drivers, challenges, and benefits often share common threads. Two examples, Coca-Cola Refreshment (M) Sdn Bhd in Malaysia and findings from a survey of 161 food processors in Kenya, illustrate how reverse logistics can serve as both an operational necessity and a performance driver.

Key drivers of adoption

In Malaysia, Coca-Cola’s approach is framed by three primary motivators: corporate citizenship, ensuring environmental responsibility and brand integrity; marketing needs, such as clearing shelf space for new product launches; and regulatory compliance, including alignment with domestic laws and international standards like the EU’s WEEE directive. Similarly, Kenyan manufacturers

cite economic gains, compliance requirements, and sustainability commitments as central reasons for adopting reverse logistics.

Shared challenges across regions

The challenges are also familiar across both contexts. Forecasting the volume of returns is inherently difficult, especially for perishable goods. Coordinating reverse flows through networks of retailers, distributors, and logistics partners adds complexity, while compliance with varied environmental regulations, local and foreign, can strain resources. Kenyan firms additionally report that reverse logistics, if not well-structured, can raise operating costs and slow order cycles, underscoring the need for efficient systems.

Recovery methods and results

Recovery methods in both cases combine reuse or resale, donation, recycling, and landfill disposal as a last resort. In Malaysia, tax incentives under Section 34(6)(g) encourage product donations; in Kenya, cost savings from reduced waste treatment fees, lower energy use, and fewer environmental fines show measurable financial returns. The Kenyan study also found that well-implemented reverse logistics correlated with higher on-time delivery rates, lower scrap levels, and stronger profitability over three years.

Taken together, these experiences highlight that reverse logistics can enhance performance when embedded in a broader supply chain framework. Whether in Malaysia’s beverage sector or Kenya’s diverse food processing industry, integrating environmental responsibility with operational efficiency can yield

tangible business and social outcomes.

Role of hypermarkets and consumers

To understand how these systems function beyond the factory gates, it helps to look at the two groups that set the process in motion, i.e. retailers and the consumers they serve. In Malaysia, 41.67% of carbonated soft drink returns were due to end-of-life expiry, with retailers using FIFO (First-In-First-Out) sorting to manage perishables. In contrast, consumers returned goods for quality or damage concerns. In both Malaysia and Kenya, retail partnerships are pivotal, acting as collection hubs and quality checkpoints that influence how efficiently goods move through reverse channels.

BENCHMARK COMPANIES ACROSS REGIONS

Building on the Malaysian and Kenyan case studies, it becomes clear that reverse logistics is not a one-size-fits-all solution; it must be tailored to regional contexts, product types, and supply chain structures. Across Africa, the Middle East, and Asia, several companies have emerged as leaders, each implementing reverse logistics in ways that reflect their operational realities and sustainability goals.

These firms demonstrate that reverse logistics can be more than a compliance exercise; it can be a strategic tool for brand differentiation, cost savings, and environmental stewardship.

Africa

Coca-Cola Beverages Africa operates across multiple African countries. The company has developed centralized bottle

Regional Opportunities

Africa Hypermarket Collaboration

Incentivized returns(e.g. tax deductions, CSR

recovery depots and reusable packaging systems. Their reverse logistics model is embedded in their distribution network, enabling efficient collection and reuse of PET bottles and glass containers. This circular packaging approach reduces waste and lowers operational costs.

Nestlé Nigeria’s reverse logistics strategy focuses on the safe disposal and recycling of expired or damaged goods. The company partners with certified waste handlers and recycling firms to ensure compliance with environmental

Asia Regional policy harmonization

standards. Their approach is integrated into broader sustainability reporting and community engagement programs, reinforcing their brand’s commitment to responsible business.

Pick’n Pay, one of South Africa’s largest retail chains, has embedded reverse logistics into its sustainability and waste management strategy. The company operates a centralized returns system for expired and damaged goods across its grocery and fresh produce segments. Returned items are sorted and

either recycled, donated, or processed for energy recovery. Notably, Pick’n Pay collaborates with local NGOs and food banks to redirect safe, unsellable food to communities in need, aligning reverse logistics with social impact. Digital tracking systems support their model and align with South Africa’s Extended Producer Responsibility (EPR) regulations, making it both compliant and community-oriented.

Middle East

Almarai (Saudi Arabia) operates a closed-loop packaging recovery system, particularly for dairy and juice products. Their reverse logistics network includes dedicated return routes for packaging materials, which are cleaned, refilled, and reused. This system supports their ISO 14001 environmental management certification and aligns with Saudi Arabia’s Vision 2030 sustainability goals.

Agthia Group (UAE) uses blockchain technology to track product returns and optimize reverse flows. This ensures transparency and traceability across their bottled water and packaged food operations. The blockchain ledger also supports regulatory audits and sustainability disclosures, making reverse logistics a pillar of their digital transformation.

IFFCO (UAE) employs AI-driven route optimization to collect expired or unsold goods from retailers. Their system dynamically adjusts reverse logistics routes based on product shelf life, retailer demand, and vehicle availability, minimizing emissions and operational costs.

Asia

Tata Consumer Products (India) has implemented IoT-enabled bins and smart tracking systems to manage expired product returns and packaging reuse. Their reverse logistics model is integrated with retail partners and supports circular packaging initiatives. This tech-driven approach enhances traceability and reduces waste.

CP Group (Thailand), part of the Charoen Pokphand Group, operates a circular logistics system for livestock and packaged foods. Their reverse flows include feed reuse, packaging recovery, and waste-to-energy conversion. The model is supported by digital platforms and regional partnerships, making it one of Southeast Asia’s most advanced circular supply chains.

Yili Group (China) operates a cold chain reverse logistics network for dairy products. Their system ensures temperature-controlled returns of expired or damaged goods, which are then processed for safe disposal or recycling. This protects product integrity and reduces environmental impact, especially in China’s vast and diverse market.

Taken together, these examples reveal shared themes and success factors that can guide companies seeking to design or refine their own reverse logistics systems.

STRATEGIC INSIGHTS AND OPPORTUNITIES

The regional benchmarks reveal a set of common success factors that transcend geography and product type. First, integration with digital systems – from IoT-enabled bins in India to blockchain in the UAE – enables traceability, efficiency, and compliance. Second, reverse logistics is most effective when aligned with sustainability and branding goals. Third, strategic partnerships – whether with recyclers, NGOs,

or hypermarkets – are essential for scale and credibility.

These insights point to replicable opportunities across emerging markets. Evidence from Kenya shows that these systems can deliver tangible business value: food processors

REVERSE LOGISTICS IS GAINING TRACTION ACROSS BOTH DEVELOPED AND EMERGING MARKETS, BUT ITS DRIVERS, CHALLENGES, AND BENEFITS OFTEN SHARE COMMON THREADS.

reported reduced material and energy costs, lower waste treatment fees, improved on-time deliveries, and stronger profitability over three years. Similar patterns appear in South Africa’s reusable packaging systems, the UAE’s tech-enabled return tracking, and Thailand’s circular livestock supply chains. Retailers can serve as collection hubs, data sources, and customer touchpoints. Incentivized returns, such as loyalty points or tax deductions, can shift consumer behavior while supporting CSR goals. Lastly, at a policy level, harmonising Extended Producer Responsibility (EPR) frameworks and waste recovery quotas across regions can reduce compliance friction and encourage cross-border innovation.

As reverse logistics evolves from a reactive process to a strategic capability, companies that embed it into their digital, environmental, and customer engagement frameworks will be best positioned to lead. The next frontier lies in scaling these models across regions, adapting them to local infrastructure, and measuring impact not just in tonnes recycled, but in brand equity, emissions avoided, and livelihoods supported. FBMEA

KKenya’s Meat and Poultry Industry

Confronting Challenges, Seizing Opportunities, and Shaping a Sustainable Future

By Nicholas Ng’ang’a

enya is a meat-loving nation. According to the Kenya National Bureau of Statistics’ National Agriculture Production Report 2024, total meat production in 2023 reached 556,653 tonnes valued at KES304.6 billion (US$ 2.4 billion), up from 464,512 tonnes worth KES240.7 billion (around US$ 1.9 billion) in 2022. Despite this growth, the sector continues to face significant challenges. Kenya’s meat sub-sector remains largely informal and fragmented, with persistent gaps between production, consumption, and profitability. Addressing these issues requires coordinated effort and innovative solutions.

To explore these challenges and uncover opportunities, three industry leaders took part in a panel discussion at the recently concluded AFMASS Food Manufacturing Expo, held on July 2-4 at Sarit Expo Centre, Nairobi, Kenya. Represented by Dr. William Akwimbi, Senior Deputy Director at the Ministry of Agriculture & Livestock Development; Kevin Getobai, Manager at Ololo Farms; and Marvin Murphy from ISM Agri, together, they shared insights on how Kenya’s meat and poultry sector can improve value chains, increase market access, and boost profitability.

HOW CAN KENYA BRIDGE THE PROTEIN GAP?

Much work remains if Kenya’s meat and poultry industry is to reach its full potential. According to the panellists, several key recommendations stand out. Below are some of the major steps they highlighted.

MODERNISING PRODUCTION TECHNOLOGIES

The industry must modernise to keep up with growing demand. Population growth is driving higher protein needs, making it urgent to update how animals are bred and raised. Dr. William Akwimbi emphasised the need to modernise animal production by adopting new breeding techniques and improving breed technologies. Enhancing the quality of animal feed and implementing modern farming practices are also critical. Access to essential inputs such as veterinary drugs and farming equipment must be improved to support these changes and boost productivity.

“70% of the meat produced in the country is normally wasted because of the storage. So we need freezers, storage facilities that can keep our products safe and maintain the issue of food safety,” He added.

ADOPTING SUSTAINABLE AND REGENERATIVE AGRICULTURAL PRACTICES

Kenya is steadily embracing circular and regenerative farming methods that reduce dependence on synthetic chemicals and improve environmental outcomes. Circular agriculture helps fight climate change by reusing agricultural by-products as animal feed, cutting waste, and boosting overall farm efficiency. These approaches enhance food security, raise the quality and affordability of protein, and support environmental health by reducing pollution linked to conventional farming inputs.

ACCESS TO ESSENTIAL INPUTS SUCH AS VETERINARY DRUGS AND FARMING EQUIPMENT MUST BE IMPROVED TO SUPPORT QUALITY OF THE ANIMAL

Kevin Getobai, who manages Ololo Farms with a strong focus on regenerative agriculture, highlighted the benefits of this approach. At his farm, innovative poultry farming methods allow chickens to roam outside traditional confined spaces. They use mobile “chicken tractors” that are moved every two days, giving birds daily access to fresh pasture and a more natural life.

This system creates a healthier environment for the chickens and results in more nutritious meat and eggs. Ololo Farms also integrates poultry with other enterprises like cattle and insect farming, which helps reduce production costs. Overall, their circular food production system promotes sustainability and environmental awareness, setting an example for the industry. By improving farm efficiency and reducing waste through circular practices, more protein-rich food can be produced

From left: Dr. Akwimbi, Kevin Getobai of Ololo Farms and Marvin Murphy of ISM Agri.

using fewer resources. Healthier, free-range animals raised with natural diets often yield higher-quality meat and eggs, meeting growing consumer demand for nutritious protein.

GOVERNMENT POLICIES TO SUPPORT LIVESTOCK FARMERS

IN NUMBERS

KENYA’S MEAT

PRODUCTION IN 2023

It might sound like a cliché, but the government’s role in livestock development is crucial and cannot be overstated. Through effective policies, the government can enhance food and nutrition security, promote economic empowerment, and encourage sustainable farming. Strategic plans embedded in county development projects aim to intensify poultry production by promoting hybrid breeds and better farming practices. However, many farmers remain unaware of free public extension, veterinary, and livestock services, limiting their access to vital support.

Dr. William Akwimbi highlighted the importance of veterinary and national livestock policies. The policy should focus more on

animal health, regulate livestock trade, and address animal welfare concerns. Kevin Getobai emphasised the need for financial support policies that develop tailored financing products for small-scale farmers, reduce financial barriers, and create risk-mitigation strategies to encourage agricultural investments.

Marvin Murphy suggested the government could further assist by reducing import barriers such as lowering duties on raw materials, easing restrictions on lesser-known ingredients, and making imports more cost-effective. He also called for better support for smallscale processors, recognising their challenges competing with larger firms and the high costs of processing equipment. Lastly, he stressed the need for market development initiatives that open opportunities for SMEs in meat processing, support innovation, and lower entry barriers for new entrepreneurs.

TRAINING AND CAPACITY BUILDING

Beyond improving inputs, Kenya’s meat industry urgently needs to strengthen human capital across the entire value chain. Training and capacity building equip farmers, processors, and other stakeholders with the skills and knowledge required to boost productivity, maintain quality, and adopt modern, sustainable practices. This includes mastering animal husbandry, disease management, and nutrition optimisation. Processors also benefit from training on modern hygiene standards, advanced processing technologies, and quality control measures. These improvements reduce post-slaughter losses, extend product shelf life, and ensure compliance with regulatory standards crucial for market access.

Dr. William Akwimbi stressed that these trainings should be delivered as targeted projects, focusing on specific regions rather than broad nationwide programs. This approach helps tailor support to local production systems and provides relevant information throughout the value chain. Examples include milk cooler distribution programs and farmer training on milk aggregation, processing, and meeting breed and quality standards for export markets. Kevin Getobai added that many farmers struggle to grasp complex production techniques, highlighting the need for capacity building in sustainable farming practices. Together, these targeted efforts can empower stakeholders with practical knowledge, bridging gaps in Kenya’s meat and poultry sector.

WHAT THE FUTURE LOOKS LIKE FOR THE INDUSTRY

Even with the numerous challenges facing Kenya’s meat and poultry sector, the future still holds strong promise. Kenya’s meat market volume is projected to reach approximately 1.57 billion kilograms by 2030, supported by steady annual growth. The government is also taking deliberate steps to transform the sector through strategic commercialisation, with a focus on improving livestock breeds for higher productivity and disease resistance, particularly in arid and semi-arid zones.

A key driver of this transformation is the adoption of new technologies in processing. One perfect example is the Kinamba Laikipia Modern Abattoir, a state-of-the-art slaughterhouse designed to support local beef farmers and traders. The facility offers enhanced sanitation, hygiene, storage, health protocols, and packaging standards, ensuring that Kenyan meat products meet high-quality market requirements and remain competitive in domestic and export markets.

County-level initiatives are also making a difference. In Nakuru County, a programme was recently launched to encourage smallholder poultry farmers to adopt dual-purpose breeds that address the long-standing challenges of poor genetics and low productivity. The initiative aims to unlock an estimated KES3 billion (US$ 23 million) potential in the

county’s poultry sub-sector. It specifically promotes improved Kienyeji chicken varieties, which begin laying eggs just five months after hatching and produce an average meat weight of 1.5 kg. At the same time, cocks can reach at least 2 kg. These advancements in breeding promise to boost incomes, enhance food security, and strengthen the sector’s competitiveness over the coming years.

Industry experts call for every stakeholder in Kenya’s meat and poultry value chain to have a role to play if the production–consumption–profitability gap is to be bridged. Farmers must commit to adopting improved breeds, sustainable production methods, and modern animal husbandry practices. Processors need to uphold strict quality standards, invest in better technologies, and create value-added products. The government must strengthen supportive policies, provide financing mechanisms, and ensure access to extension services.

Meanwhile, consumers can help shape the industry by demanding high-quality, sustainably produced meat, thereby reinforcing the economic case for reform. If executed collaboratively and with urgency, these strategies can unlock the sector’s vast potential, positioning Kenya not just as a meatloving nation but as a competitive and sustainable producer on the African and global stage.

A Rampant Crisis in Plain Sight Food Fraud as a Public Health Threat in Africa:

By Lydia Khasoa

In Africa’s expanding food systems, shaped by rapid urbanization, expanded informal markets, and persistent regulatory weaknesses, food fraud has become a visible, recurring threat that endangers lives, destabilizes livelihoods, and erodes public trust in daily staples. Recent multi-agency enforcement operations, legislative reviews, and peer-reviewed studies across African countries and globally paint a vivid picture of how food fraud has infiltrated value chains, turning what should be nourishing into a potentially toxic fare.

UNDERSTANDING THE SCOPE OF FRAUD

Often for economic gain, food fraud takes many forms: deliberate substitution of ingredients, dilution with non-food extenders, repackaging and relabeling of illicit imports, reuse of genuine packaging for counterfeit goods, and the intentional use of industrial chemicals to preserve or enhance appearance. These practices cut across value chains and affect staples, processed foods, and agricultural inputs alike.

Globally, adulteration remains the most studied and most common type of food fraud, making up about 50% of

Fruit products - Bananas, Apples, Mangoes, Water-melons

Oils - Mustard Oil, Sunflower Oil, Extra-virgin, Ghee, Peanut oil

Dals and Vegetables - Tumeric, Green chillies, Toor dal, Green peas, Mustard seeds, Cereals and Pulses

Drinks and Beverages - Beers, Juices, water, other alcoholic beverages

Methyl parathion, Calcium carbide, Wax coatings

Palm oil, Olive oil, Papaya seeds, Mineral oil, Butter yellow Argemone oil, Cyanide

Rhodamine B, Rhodamine 6G, Metanil yellow, Malachite green, Kesari dal, Argemone seeds, Metallic adulterants

Ketamine, Metamizole, Midazolam, Paracetamol and other Sedatives

documented studies. It is followed by mislabeling (23.3%), species substitution (13.3%), counterfeit food (6.7%), and unauthorized enhancement (6.7%). South Asia and Southeast Asia dominate the research landscape with 40% of studies, Latin America follows at 23.3%, Africa accounts for 20%, and the Middle East/North Africa for 16.7%.

Low- and middle-income countries, particularly in South Asia, Latin America, and Africa, face the highest susceptibility. In Africa, published research is concentrated in a few countries, focusing on a narrow set of commodities such as meat, milk, fish, beverages, and spices, leaving gaps in coverage for staples like roots, legumes, leafy greens, and local grains.

While several countries have made strides in curbing the food fraud burden, enforcement remains weak, especially where informal markets dominate and traceability is minimal.

HOW FRAUD CONTAMINATES AFRICA’S FOOD CHAIN

The dangers of food fraud are both chemical and biological, and in some cases, the harm begins long before the food reaches the consumer’s plate. In Kenya, parliamentary scrutiny and investigative reporting during the 2023 review of the Food and Feed Safety Control Bill uncovered a disturbing reality: sodium metabisulfite was being applied to meat and produce to preserve

Food poisoning

Anemia (Low red blood cell count), Cardiac damage, Liver damage, Stomach, intestine – Diarrhoea, Constipation

Epidemic dropsy, glaucoma, blindness, cardiopulmonary arrest, diarrhea, vomiting, cancer, etc.

Brain damage, Paralysis of legs, Anemia (Low red blood cell count), Cardiac damage, Liver damage, Stomach, intestine – Diarrhoea, Constipation, Food Drop, Lead Poisoning

Liver damage, Brain damage

color, transglutaminase was being used to bind scraps of meat into cohesive cuts, and calcium carbide was being employed to accelerate fruit ripening. These are practices recorded in parliamentary proceedings and confirmed through television exposés.

The health consequences are wellestablished: sodium metabisulfite can trigger severe asthma and allergic reactions; transglutaminase can

Algeria, Nigeria, Zimbabwe, Kenya, Uganda, Rwanda

Ghana, Nigeria, Ethiopia

Nigeria, Ghana, Egypt Anozie

Nigeria, Ghana

conceal bacterial contamination in meat, masking spoilage and raising food poisoning risks; calcium carbide contains impurities like arsenic and phosphorus, which can cause neurological damage and cancer with chronic exposure.

The situation is not confined to Kenya. In Ghana’s Tamale region, semiprocessed staples such as groundnut paste, powdered melon seeds, and fermented locust beans have been

Milk and dairy products - Yoghurt, Condensed milk, Ice cream

Melamine, urea, Starch, salt, Detergent, Products of other milk in sheep or cow’s milk

Kidneys - Formation of melamine, Cyanurate Cocrystals (Kidney stones)

Kenya, Egypt, Ethiopia Nyokabi et al. (2021); El-Loly et al. (2013); Ayza and Yilma (2014); Wanjala et al. (2018)

Meat Products - Poultry meat, Pork, Beef Nitrite, Dopamine, Meat of one animal adulterated with meat of the other animal

Cardiac damage, cancer, Salmonellosis,

Kenya, South Africa Njaramba et al. (2021); Cawthorn et al. (2013); Abuelnaga et al. (2021)

Islam et al. (2016); Odewale et al. (2021); Sharma et al. (2010); Gaouar et al. (2021)

Andoh et al. (2019); Andoh et al. (2020); (Assefa et al., 2013)

et al. (2018); Abayase and Mohammed, 2022; Youssef et al. (2017)

Kenya,

Bansal et al. (2017); Lakshmi, (2012); Darkwah et al. (2020)

found adulterated before reaching market shelves. Honey, oils, spices, and baked goods have also been implicated. In Ethiopia and Uganda, formalin, a potent carcinogen and embalming agent, has been used to preserve milk, meat, and fish, keeping them superficially fresh while inflicting hidden chemical damage to the consumer. Ethiopian vendors have also been caught using excessive sodium benzoate in injera to extend shelf life from three to ten days, exceeding safe limits and risking gastrointestinal harm.

In Cameroon, a troubling practice has emerged in which fish is smoked over leftover tailoring fabrics rather than traditional wood, introducing toxic residues into a staple protein source. Across West Africa, the banned industrial dye Sudan IV has been detected in palm oil to enhance its visual appeal, despite its clear carcinogenic risks. Excessive use of Ethrel, a ripening agent approved only in small doses, is reported in plantains, pineapples, and bananas across Sub-Saharan Africa, altering texture and potentially creating long-term toxic effects.

Food fraud also strikes at earlier stages of the supply chain, corrupting agricultural inputs before crops even grow. In Kenya, enforcement agencies have intercepted counterfeit fertilizer packaging, branded bags destined to be filled with substandard or fake agrochemicals. Such compromised inputs diminish yields, increase contamination risks, and undermine food quality from the outset. Later in the chain, powdered milk consignments diluted with maize starch and unlabelled animal material have been seized, a particularly dangerous crime given milk’s central role in infant and child nutrition.

In the beverage sector, counterfeit alcoholic drinks,

some laced with lethal concentrations of methanol, continue to circulate in Kenya, Nigeria, and other African nations. Outbreaks linked to such drinks have resulted in blindness, organ failure, and death, underscoring the life-or-death stakes of effective fraud prevention.

CURRENT READINESS AND COUNTRY PROGRESS

A 2025 review in Agriculture & Food Security assessed food fraud mitigation readiness in developing countries, finding most to have low to moderate preparedness. Globally, India and Brazil dominate research output, but Africa’s share remains small and uneven.

South Africa is currently the best-performing African country in fraud detection, recognized internationally for its

meat species substitution testing. Kenya has made legislative advances through its Food and Feed Safety Control Bill and stepped up multi-agency enforcement against counterfeit agro-inputs, dairy products, and alcoholic beverages. Nigeria has tightened enforcement against counterfeit packaged foods and drinks and launched consumer campaigns, although laboratory capacity remains a hurdle. Ghana’s Food and Drug Authority has pursued trader education and market inspections, while Sudan I–IV food dyes have been outlawed continent-wide, with contaminated products seized and removed from sale.

On the global stage, there are lessons Africa can borrow. India, once labelled “a paradise for food fraudsters”, has reduced dairy and spice fraud through improved testing and traceability. China and Vietnam are applying isotope ratio mass spectrometry to combat honey adulteration, and Thailand and Indonesia are piloting blockchain for seafood and livestock traceability. However, even in these countries, gaps in enforcement, weak penalties, and low consumer awareness keep fraud alive.

GAPS THAT LET FRAUD FLOURISH

Fraud persists thanks to structural vulnerabilities. Many African public health systems still prioritize infectious disease surveillance over food authenticity testing. Laboratories often lack the reagents and equipment needed for chemical analysis, and enforcement agencies are underfunded.

Informal markets, where a majority of the population sources food, rarely maintain traceability records. When illness occurs, it is often misattributed or goes uninvestigated, and the link between contamination and health outcomes is lost. Low consumer purchasing power compounds the problem. For many, safety takes a back seat to affordability, especially when possibly adulterated goods are cheaper.

Digital commerce has introduced new challenges, as counterfeit and adulterated foods now circulate through online platforms with little oversight. The anonymity of digital trade makes

tracking offenders even more complex.

WHAT MUST BE DONE: A PUBLICHEALTH-FIRST APPROACH

Fraudulent foods not only deliver direct toxic harm but also contribute indirectly to malnutrition by replacing nutrientrich foods with adulterated, low-quality substitutes. The unsafe fraudulent practices present acute hazards, with some killing within hours, while others build up over time, contributing to longterm health deterioration.

The impact is most devastating in regions where health systems are already stretched, diagnostic capacity is limited, and symptoms caused by adulterated food can be mistaken for other common illnesses. In such contexts, every untraced case of poisoning or malnutrition allows present food fraud as an invisible epidemic.

The urgency is therefore both visible and undeniable. In addition to the enforcement crackdowns, addressing it demands a sustained, public-healthfirst strategy. This means expanding

laboratory capacity to enable chemical analysis, DNA-based authenticity testing, and rapid on-site screening; embedding fraud detection into national foodborne disease surveillance systems; and strengthening legal frameworks so that penalties are not merely symbolic but act as a real deterrent.

A regional dimension is equally important. Harmonized standards across African countries can help close the loopholes that allow fraudulent goods to slip across borders unchecked. The fight must also broaden beyond the usual high-risk categories, meat, milk, fish, and alcohol, to include staple crops, spices, oils, and locally processed products, where adulteration may be just as widespread but far less studied. By mapping risks across the full breadth of the African diet, policymakers can identify vulnerabilities before they are exploited.

Tackling food fraud as a publichealth threat, rather than a secondary trade issue, can shift it from a tolerated hazard to a shrinking crime. FBMEA

SEALED for SUCCESS

How Aseptic Packaging is Shaping the Future of Food Marketing

By Mary Wanjira

Once regarded as a niche solution for specific shelfstable products, aseptic packaging has emerged as a critical enabler of modern supply chains, offering extended shelf life without the need for refrigeration, safeguarding food safety, and opening up entirely new possibilities for distribution. Today, the aseptic packaging sector stands at the intersection of innovation, sustainability, and shifting consumer expectations, positioning it as a force that is likely to influence global food and beverage strategies for decades to come.

The essence of aseptic packaging lies in a deceptively simple idea: sterilize both the product and its packaging separately, then seal them in a sterile environment. The result is a product that can remain fresh at ambient temperatures for months, often a year or more, without preservatives. While the principle has been around for decades, the last several years have seen a surge in adoption, spurred by a convergence of factors, rising demand for preservative-free products, the need to reduce cold-chain dependency, and the relentless push for more sustainable solutions.

REGIONAL CHALLENGES AND CONSUMER TRENDS

In the Middle East and Africa (MEA) region, the food and beverage industry is grappling with a complex array of challenges that threaten supply chain stability and product quality. Rapid urbanization, extreme climatic conditions, and inadequate cold-chain infrastructure have often led to high levels of food spoilage, with estimates indicating that up to 40% of perishable goods are lost before reaching consumers, exacerbating food insecurity in a region where population growth outpaces agricultural output.

In urban centres across Africa and the Middle East, younger demographics, particularly millennials and Gen Z, are prioritizing preservative-free, halal-certified products that fit busy lifestyles. A 2025 survey by Innova Market Insights reveals that 65% of MEA consumers rank ingredient quality and naturalness as top priorities when purchasing beverages and ready-to-eat foods, driven by rising awareness of health issues like diabetes and obesity. In the Middle East, demand for functional beverages infused with natural flavors has surged, while in Africa, affordability remains key, with 52% of consumers opting for value-packed, shelf-stable options amid economic pressures, as noted in a McKinsey State of the Consumer report for 2025.

According to a report by Grand View Research, these issues are compounded by volatile geopolitical tensions and economic fluctuations, which disrupt imports of essential ingredients and packaging materials. This situation not only inflates costs for manufacturers but also limits access to fresh, safe products for consumers, highlighting the urgent need for resilient packaging solutions like aseptic technology to preserve nutritional value and extend shelf life without refrigeration.

A MARKET ON THE RISE

The current MEA aseptic packaging market reflects this consumer-driven momentum, with robust growth underpinned by increasing adoption in dairy, juices, and ready-to-drink beverages. According to Mordor Intelligence’s 2025 report, the market is valued at US$4.43 billion in 2025 and is projected to reach US$6.82 billion by 2030, growing at a compound annual growth rate (CAGR) of 9.03%. Grand View Research estimates that the MEA aseptic packaging market generated US$1,263.3 million in revenue in 2023, expanding at a 7% CAGR from 2024 to 2030, with cartons dominating due to their cost-effectiveness and recyclability. In the broader Europe, Middle East, and Africa (EMEA) context, Knowledge Sourcing Intelligence projects the aseptic packaging market to grow from US$16.926 billion in 2025 to US$21.582 billion in 2030 at a 4.98% CAGR, with MEA contributing significantly through demand in high-growth countries like Egypt, South Africa, and the UAE. Trends indicate a shift toward paperbased aseptic cartons, which hold over 50% of the market share in beverages, according to these reports, aligning with regional preferences for sustainable and ambient-stable products.

INNOVATION AT THE CORE OF GROWTH

Upcoming influences on the MEA aseptic packaging landscape include digitalization, e-commerce expansion, and a stronger emphasis on circular economy principles. As online grocery platforms proliferate in the Middle East, expected to grow by

15% annually through 2030 according to McKinsey, aseptic formats will gain traction for their lightweight, durable nature, facilitating efficient delivery. In Africa, the rise of functional foods and beverages, infused with local ingredients like baobab or hibiscus, will drive innovation, as highlighted in

AS ONLINE GROCERY

PLATFORMS PROLIFERATE,

ASEPTIC

FORMATS

WILL GAIN TRACTION FOR THEIR LIGHTWEIGHT, DURABLE NATURE, FACILITATING EFFICIENT DELIVERY.

Tastewise’s Q3 2025 Food and Beverage Trends report. Global multinationals like Tetra Pak and SIG Combibloc are influencing this by localizing production, integrating AI for supply chain optimization, and responding to consumer demands for transparency, such as QR-coded packaging for traceability.

OPERATIONAL AND REGULATORY CHALLENGES

However, infrastructural limitations, including unreliable electricity and poor road networks, exacerbate spoilage rates and increase reliance on imported materials, inflating costs by up to 30%, as reported by Drinktec’s 2025 analysis of North Africa and Middle East markets. Regulatory inconsistencies across countries, such as varying halal certification standards and import tariffs, create barriers for manufacturers, while fluctuating raw material prices due to global supply chain disruptions pose risks, according to a report on MEA juicebased beverages. In Africa, limited access to skilled labor and high energy costs for sterilization processes further complicate

operations, with the World Bank’s 2025 assessments noting that these factors contribute to a 20-25% higher production expense compared to global averages. Geopolitical instability in regions like the Middle East adds uncertainty, affecting export-oriented sectors like Egyptian juices and South African dairy.

TECHNOLOGICAL ADVANCEMENTS AND INVESTMENTS

To overcome these hurdles, industry players are leveraging technological advancements and innovations tailored to MEA needs. In Egypt, Uflex’s subsidiary Flex Asepto invested US$126 million in a new aseptic packaging facility in 2024, incorporating high-speed filling lines that reduce energy consumption by 25%, as detailed in Sustainability MEA’s coverage. Innovations like Elopak’s reduced-plastic aseptic bottles, introduced in 2024, are being adapted for Middle Eastern markets to enhance recyclability. Multinationals such as Tetra Pak are advancing AI-driven predictive maintenance for aseptic equipment, minimizing downtime in volatile environments, according to Future Market Insights’ 2025 forecast, which projects the aseptic equipment market to reach US$99.5 billion globally by 2025, with MEA benefiting from localized tech transfers.

Investments and acquisitions are accelerating solutions, with Napco Investment LLC acquiring Arabian Flexible Packaging in 2025 to expand aseptic capabilities in the UAE, focusing on sustainable formats. Data Insights Market notes moderate M&A activity in MEA aseptic packaging, with strategic deals enhancing supply chain resilience. Regulatory frameworks are evolving to support these efforts; Egypt’s Extended Producer Responsibility (EPR) scheme for plastic bags, implemented in March 2025, encourages aseptic alternatives, while South Africa’s proposed ban on plastic microbeads promotes eco-friendly packaging, per the Food

Packaging Forum’s 2025 updates.

SUSTAINABILITY AS A CORE STRATEGY

Sustainability initiatives form a critical pillar in addressing regional challenges. Coca-Cola HBC’s 2025 commitment to 100% recyclable aseptic packaging in MEA operations reduces plastic waste, aligning with broader goals outlined in their factsheet. In the Middle East, events like Sustainability in Packaging MENA 2025, held in Dubai, foster collaborations for compostable materials, as per Smithers’ announcements. Archive Market Research’s 2025 report highlights the growing adoption of bio-based aseptic cartons in Africa, which has led to a 33% reduction in emissions during trials. These efforts mitigate environmental impacts, such as plastic pollution in the Nile and Arabian Gulf, while complying with tightening regulations.

WHAT’S THE FUTURE

Looking ahead, the future outlook for aseptic packaging in MEA is optimistic, with sustained growth driven by these adaptive strategies. Data Insights Market projects a 9.03% CAGR through 2033, fueled by infrastructure investments and consumer trends. Packaging MEA’s 2025 forecast anticipates significant expansion through economic diversification and retail growth, with multinationals like Amcor and Tetra Pak leading localization efforts. While short-term volatility from raw material costs persists, the long-term trajectory, as per MarkWide Research, points to resilience, with the MEA halal food and beverage market overcoming certification challenges to reach new heights by 2034. By integrating technology, sustainability, and regulatory compliance, the industry is poised to enhance food security, reduce waste, and meet evolving consumer demands in this dynamic region.

FOOD INGREDIENTS

MIDDLE EAST & AFRICA

Exploring the Future of BEYOND COCOA CHOCOLATE ALTERNATIVES

By Nicholas Ng’ang’a

The cocoa and chocolate sector is in the middle of a major transformation. Rising commodity costs, growing sustainability demands, and changing consumer tastes are reshaping the market. Brands are turning to cocoa replacers, from cocoa butter alternatives to cocoa powder substitutes and new ingredient blends. Climate risks and social issues in cocoa farming are adding pressure for ethical and sustainable sourcing. At the same time, more shoppers are seeking minimally processed, clean-label, and plant-based options. This shift

is opening opportunities beyond traditional cocoa products.

Market dynamics and drivers

The global cocoa and chocolate market continues to show strong growth potential. In 2024, the cocoa bean market was valued at USD 17.2 billion and is projected to expand at nearly 7% annually, reaching USD 24 billion by 2029. The industrial chocolate market is also on an upward trajectory, with an expected compound annual growth rate of 4.5% between 2023 and 2030.

IMCD opens food & nutrition laboratory in Zurich, Switzerland

SWITZERLAND – IMCD has officially opened its new Food & Nutrition Laboratory in Zurich, marking a pivotal expansion in its innovation and technical support capabilities. This state-ofthe-art facility will serve key market segments such as bakery, savoury, dairy, beverage, and broader nutrition markets, reinforcing IMCD’s status as a leader in specialty ingredients distribution and formulation.

Natalie Wahren, Business Unit Manager for Food & Nutrition in Switzerland, described the opening as “not just a

FINANCIALS

physical expansion, but a leap forward in our mission to deliver cutting-edge solutions and collaborate more closely with our customers to meet their evolving needs.”

Her remarks underscored how the lab will enable handson technical support and real-time co-creation with customers to develop market-ready formulations. IMCD’s food experts bring deep formulation expertise, consumer trend insights, and scientific know-how to the table, enabling brands to stay ahead of evolving preferences while delivering sensory appeal and nutritional value.

In addition to enhancing IMCD’s market presence in Swiss and European markets, the new facility aligns with the company’s diverse portfolio of business groups, which include food & nutrition, home care, industrial solutions, lubricants, and pharmaceuticals. Many of these groups rely on laboratorybacked support to stay at the forefront of innovation. IMCD’s commitment to innovation reflects its mission to be a global leader in the distribution and formulation of specialty chemicals and ingredients.

The Zurich laboratory joins other IMCD innovation hubs, including a recently launched Life Science Laboratory Hub in Shanghai, reinforcing IMCD’s global strategy of delivering localized technical excellence and formulation insight across multiple business sectors.

Kerry Group reports US$4B in H1 2025 revenue

IRELAND – Kerry Group has announced a 1.3% rise in revenue for the six months ending June 30, 2025, reaching €3.5 billion (US$4.0B), up from €3.419 billion (US$3.9B) during the same period last year. The Irish food technology and ingredients company also posted an increase in profits and earnings, despite challenging market conditions worldwide.

The group’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew to €556 million (US$641.6M) from €517 million (US$596.6M) in the first half of 2024. Profit after tax rose to €303.1 million (US$349.7M), compared to €291.5 million (US$336.3M) in the previous year. Kerry attributed the overall performance to continued volume growth and improved product mix, supported by operational efficiency measures.

The company’s Americas division reported a 3.7% increase in revenue to €1.911 billion (US$2.2B), driven by growth in key categories such as snacks, bakery, and beverages. In the Europe division, revenue edged up by 0.2% to €731 million (US$843.5M). In the Asia Pacific, Middle East, and Africa (APMEA) region, revenue rose by 4.2% to €821 million (US$947.3M). This growth was attributed to strong performance in Southeast Asia and steady gains in the Middle

East and Africa. However, Kerry reported that demand in China remained subdued during the period. Kerry Group CEO Edmond Scanlon noted that the company delivered volume growth and a 9.8% increase in constant currency earnings per share, despite ongoing global uncertainties.Kerry reaffirmed its full-year guidance of 7% to 11% constant currency adjusted earnings per share growth.

Novonesis launches Vertera Velvet enzyme to elevate plant-based beverage quality

DENMARK – Novonesis, a global biosolutions leader, has unveiled Vertera Velvet, a new enzyme-based ingredient aimed at transforming the quality of plant-based beverages. Vertera Velvet addresses key formulation challenges faced by producers in the plant-based beverage sector. These include foam quality, texture enhancement, protein functionality, and coffee stability, factors that often impact consumer acceptance and product performance.

A standout feature of the ingredient is protein deamidase, an enzyme that converts protein-bound glutamine into glutamic acid without degrading the protein structure. This modification improves protein solubility, leading to smoother textures, enhanced emulsification, and better beverage stability, without affecting flavor.

Vertera Velvet is compatible with a wide range of plantbased substrates. It enables manufacturers to develop oat drinks with long-lasting foam, pea protein beverages with improved coffee stability, and soy-based drinks with better emulsification. Its adaptability allows formulators to address multiple issues using a single solution. Birgitte Borch, Head of Plant & Food at Novonesis, said, “Biosolutions unlock the full potential of plant-based drinks by enhancing taste, texture, and functionality, without adding complexity or compromising on sustainability. We help plant-based producers in meeting consumers’ expectations, from protein nutrition to improving foaming and coffee stability.”

The launch follows the formation of Novonesis in 2024 through the merger of Novozymes and Chr. Hansen, creating a company with annual revenues of approximately €3.7 billion and around 10,000 employees across over 30 industries. Novonesis focuses on two core areas: Human Health & Food, and Planetary Health, with solutions spanning enzymes, probiotics, prebiotics, and other functional ingredients. For 2025, the company has maintained its forecast of 5–8% organic sales growth (6–9% excluding country exits) and expects an adjusted EBITDA margin of 37–38%, despite currency-related challenges.

Food ingredients industry to reach US$567B by 2034 fueled by health trends, innovation

GLOBAL – The global food ingredients market is projected to grow from US$368.7 billion in 2025 to about US$567.1 billion by 2034, reflecting a 4.9% CAGR, according to new research from Towards FnB, a sister firm of Precedence Research.

Food ingredients, including additives, flavoring agents, preservatives, sweeteners, enzymes, emulsifiers, colors, and functional components, are used to enhance flavor, texture, nutrition, and shelf life in categories such as bakery, meat, beverages, and convenience foods. Market expansion is driven by rising disposable incomes, increasing demand for nutritious and premium products, and a global shift toward clean-label, plant-based, and minimally processed ingredients. Sustainability expectations and stricter environmental regulations pose challenges, as eco-friendly ingredients can cost around 20% more than conventional options, creating affordability hurdles for smaller manufacturers.

The Asia-Pacific region led with a 35% market share in 2024, fueled by urbanization, health awareness, and functional food demand in China, India, Japan, South Korea, and Indonesia. By ingredient type, flavors and enhancers held 18% of the market, while proteins and amino acids are positioned for strong growth. Natural ingredients accounted for 56% of sales, with bio-based inputs gaining ground in biopharmaceutical applications. Bakery and confectionery dominated applications at 22% in 2024, while functional and fortified foods are expanding rapidly. Dry and powdered ingredients, led by form, hold a 45% share, while liquids are experiencing rapid growth in the beverage sector. By function, flavoring held 26% of the market, while nutritional enrichment is accelerating with demand for protein-rich and functional foods.

Innovation is reshaping the sector: companies such as Nuritas utilise AI to accelerate R&D and develop bioactive compounds like PeptiStrong for muscle health. Meanwhile, advances in enzyme engineering, nanotechnology, and encapsulation are enhancing performance and shelf life for clean-label products.

Bunge strikes strategic deal with IFF to expand its plant-based ingredients business

U.S.A - Global agribusiness giant, Bunge Global S.A, has signed a definitive agreement to acquire key assets from International Flavors & Fragrances Inc. (IFF), marking a significant step in Bunge’s expansion into plant-based ingredients. The deal, announced in early August 2025, includes IFF’s lecithin, soy protein concentrate, and soy crush operations, businesses that generated approximately US$240 million in revenue in 2024 and employ around 250 people worldwide. The transaction is expected to close by the end of 2025, pending regulatory approvals and customary closing conditions.

The company, which recently completed a US$8.2 billion merger with Viterra, continues to strengthen its foothold in major soybean-producing regions, including Brazil, the U.S., and Argentina. For IFF, the divestiture reflects a broader portfolio optimisation strategy. CEO J. Erik Fyrwald described the assets as “commoditised” and better suited to Bunge’s operational model. The move is part of IFF’s ongoing transformation, which includes shedding non-core or lower-margin operations to sharpen its focus on highvalue segments like flavors, fragrances, and health solutions. Earlier in 2025, IFF also divested its Nitrocellulose business, signalling a consistent effort to streamline operations and enhance shareholder value.

For Bunge, the acquisition strengthens its vertical integration and expands its footprint in the plant-based protein and oilseed processing space. The newly acquired assets will be integrated into Bunge’s agribusiness segment, which processes oilseeds into vegetable oils and protein meals used in cooking oils, animal feed, and biodiesel production. This strategic deal underscores the shifting dynamics in the global food ingredients market, where companies are increasingly focusing on core competencies, innovation, and sustainable growth.

INVESTMENTS

Novella, Metaphor team up on cell-based natural preservatives for clean-label foods

ISRAEL – Biotech startup, Novella, and Australian ingredient specialist, Metaphor Foods, have entered a strategic partnership to introduce cell-based natural preservatives aimed at the food industry’s growing demand for clean-label solutions. The collaboration combines Novella’s precision-controlled, AuraCell technology with Metaphor’s Hela Natvance range of natural food protection solutions.

Novella’s AuraCell plant cell technology for precision botanical ingredients enables the direct growth of bioactive compounds from plant cells, reducing resource use by 99 per cent, resulting in pure bioactive ingredients with guaranteed consistency and zero waste. The goal of this partnership is therefore to deliver plant-derived antioxidant and antimicrobial ingredients that are resource-efficient, consistent, and wastefree, starting with meat and poultry applications, with plans to expand into seafood, dairy, baked goods, alternative proteins, and pet food.

Valued at US$10 million over seven years based on projections for the meat industry alone, Novella’s plant cellderived compounds were able to replace current natural antioxidants, reduce costs, and extend shelf life by 30% in meat products. The agreement between the companies includes a long-term supply plan, regulatory support, application studies, and commercialization strategy. The team is in the final stages of scaling production and validating batch-to-batch consistency, with plans to launch commercially by early 2026.

Meanwhile, Metaphor Foods serves as the innovation and accelerator arm of Hela APAC, drawing on the experience of its affiliated companies, Schwarz and Hela. Metaphor’s core mission is to connect advanced food technologies to evolving needs across the APAC region, where the demand for natural, clean-label ingredients is growing rapidly. This collaboration comes at a pivotal time for the natural food preservatives market, which is valued at US$3.18 billion and projected to surpass US$4.5 billion by 2033.

Olam Group posts strong H1 2025 results as food ingredients arm drives growth

SINGAPORE - Olam Group has reported a 573% profit increment in the first half of 2025, lifted by strong performance in its food ingredients business and better results across its remaining operations. Group profit after tax (PATMI) surged to S$323.8 million (US$240 million), more than five times higher than a year earlier, while revenue climbed 23.8% to S$33.3 billion (US$24.6 billion).

Operating profit (EBIT) rose 35.5% to S$1.2 billion (US$888 million), supported by a turnaround in Olam’s non-agri portfolio and double-digit earnings growth at its food ingredients arm, ofi. The company declared an interim dividend of 2.0 cents per share. As part of its updated 2025 Re-organisation plan, Olam intends to sell Olam Agri to Saudi Agricultural & Livestock Investment Company (SALIC) and responsibly divest assets and businesses within the Remaining Olam Group. The group

INVESTMENTS

will prioritise its food ingredients arm, ofi, to help the division realise its full potential value.

ofi, which supplies cocoa, coffee, dairy, nuts, spices and customised blends to global food and beverage brands, recorded EBIT growth of 12.7% to S$535.8 million (US$397 million). The division secured US$2.45 billion in new loan facilities to fund expansion, and it expects steady sales growth and high singledigit profit gains over the medium term. ofi’s CEO, A. Shekhar, said the first half remained challenging, with persistent supply risks and commodity volatility. However, disciplined execution and a focus on value-creating opportunities drove strong EBIT growth in Global Sourcing, while Ingredients & Solutions continued to expand volumes. Despite the expected continued volatility in the near term, the team remains confident in its ability to adapt, create value, and deliver on medium-term guidance of high single-digit EBIT growth.

Palsgaard expands in India with new application centre for enhanced product development

INDIA – Palsgaard, the inventor of the plant-based food emulsifier, has launched its advanced Application Centre in Navi Mumbai, India, designed to enhance product development capabilities and provide localised technical support across key food categories in India.

The Application Centre will support Indian food manufacturers in accelerating innovation, optimising formulations and responding to evolving consumer needs. It will also provide customers with access to Palsgaard’s global expertise while offering hands-on, locally accessible support for recipe development, product stability, shelf-life improvement and clean-label reformulations. Helle Müller Petersen, CEO,

Palsgaard, describes the new Application Centre as a tangible expression of Palsgaard’s mission to provide customer-tailored emulsifier and stabiliser solutions, backed by novel technology and a strong workplace culture.

The facility is co-located with Palsgaard’s new Indian commercial offices and housing industrial-scale pilot plants equipped to simulate real-world production conditions. It features advanced technology tailored to bakery, dairy, ice cream, chocolate and confectionery applications, with state-ofthe-art equipment. These capabilities enable manufacturers to trial and upscale recipes efficiently, under conditions that closely mirror their production environments. Supriyo De, Managing Director, Palsgaard India, emphasized that the centre would strengthen the company’s ability to support customers with locally accessible, pilot-scale innovation tools.

The Navi Mumbai facility is part of Palsgaard’s global network of application centres, located in Denmark, Mexico, Brazil, Singapore, China, Türkiye and now India. It reflects the company’s strategy of strengthening regional capabilities to support customer innovation. In 2024, Palsgaard reported a turnover of €312 million (US$364 million), affirming its position as a specialist in plant-based emulsifiers and stabilisers for the food, polymer, and personal care sectors. The Navi Mumbai centre not only strengthens regional innovation but also reinforces Palsgaard’s commitment to combining technical excellence with market proximity, delivering faster turnaround times, tailored support, and deeper collaboration in India.

However, this growth is unfolding against the backdrop of a sharp rise in cocoa prices. West Africa, the world’s largest cocoa-producing region, has experienced a decline in yields due to adverse weather conditions and disease outbreaks. This reduction in supply has coincided with steady global demand for chocolate and cocoa-based products, creating significant market tension. According to CNBC, cocoa prices have surged by 129%, forcing some manufacturers to consider price increases to protect profit margins, a move that could influence consumer purchasing behaviour.

The volatility of cocoa prices adds further uncertainty for food and beverage companies, complicating production planning and long-term pricing strategies. As Celine Pannuti, Head of European Staples & Beverages at J.P. Morgan, notes, businesses must manage demand elasticity carefully, as consumers may be unable to absorb the steep price increases required to offset rising costs. One strategy to mitigate this challenge is the adoption of cocoa replacers as part of broader cost-optimisation efforts.

A new dawn for the cocoa industry

Rising costs and supply challenges have pushed some confectionery producers to seek out cocoa replacers. Cocoa butter, the fat responsible for chocolate’s smooth texture and distinctive melt, has become the main focus for substitution due to its high price and limited availability. In 2024, the global cocoa butter alternatives market was valued at around USD 1.65 billion and is expected to expand at a strong pace of 7–9% annually through 2032, reaching between USD 2.6 billion and more than USD 3.3 billion.

These alternatives are specialty vegetable fats designed to mimic cocoa butter’s functional qualities. They have solidity at room temperature, a melting point just below body temperature, and a smooth mouthfeel, while offering a more

stable supply and lower costs.

Cocoa Butter Equivalents, sourced mainly from shea butter, mango kernel fat, and palm kernel oil, closely match cocoa butter’s chemical and physical profile, making them a preferred choice in premium chocolate. Cocoa Butter Substitutes and Cocoa Butter Replacers, made from a wider variety of vegetable fats including coconut, palm, and lauric oils, are often used in more cost-sensitive applications.

Plant-Based Blends Open New Opportunities for Chocolate Innovation

Beyond fats, alternatives for cocoa powder and cocoa mass are also emerging as manufacturers respond to price pressures and look for functional innovation. One of the most widely accepted replacers here is carob powder. Made from the pods of the carob tree, which grows in the Mediterranean, it is processed into a powder similar in colour and application to cocoa but with notable differences.

Carob offers a naturally sweet, mild flavour with hints of caramel and honey, avoiding the bitterness often associated with cocoa. Nutritionally, it is low in fat and calories yet rich in dietary fibre, calcium, magnesium, and potassium. In fact, it contains around three times more calcium than cocoa powder and far less fat, making it appealing to health-conscious consumers. Its nutritional profile also allows manufacturers to lower the fat content of products without sacrificing flavour.

Supply Chain Resilience in a Volatile Market

While cost remains a key driver, shifting consumption patterns are playing an equally important role. In mature markets such as Europe and Japan, consumers are eating chocolate less often but are gravitating toward premium, organic products with short ingredient lists. This trend is prompting manufacturers to reformulate, carefully optimising cocoa content and

CONTINUED FROM PAGE 57

incorporating replacers to control costs without reducing perceived quality.

In July 2025, reports emerged that Voyage Foods is preparing to scale its cocoa substitutes as rising prices prompt more manufacturers to reassess their dependence on the ingredient. The company is opening a manufacturing facility in Ohio dedicated to cocoa-free chocolate. It has partnered with food giant Cargill to extend its presence in both the consumer packaged goods and foodservice sectors. Voyage’s cocoa alternatives are formulated with clean-label ingredients such as vegetable oil, cane sugar, grape seeds, and sunflower protein flour. As price volatility continues, ingredient suppliers are stepping up with more solutions to reduce reliance on cocoa.

Additionally, Ardent Mills, a joint venture between Cargill, Conagra, and CHS, recently introduced a wheat-based product for the industrial baking market that can replace up to 25% of cocoa powder in applications like cakes, brownies, and cookies. According to Mia Divecha, senior product line specialist at Cargill, cocoa-free chocolate products offer a viable path forward in a supply-constrained market, in some cases costing up to 50% less than traditional chocolate and avoiding the impact of volatile cocoa prices. Ingredient suppliers have not been left behind. Ingredion is already producing cocoa producer alternatives under its DOLCERRA™ product line. These products are designed to replace various cocoa powders, helping manufacturers manage high cocoa costs and supply shortages while maintaining quality. DOLCERRA™ allows producers to achieve the desired colour, texture, and sensory attributes, such as creaminess, smooth mouthfeel, and intensified cocoa notes, even in reduced-cocoa or cocoa-free formulations.

T. Hasegawa, a recognised name in the flavour industry, has also developed an alkalised, low-fat cocoa flavour specifically designed to replace traditional cocoa powder. Available in both liquid and powdered forms, it provides a “no-compromise” option that enables food and beverage manufacturers to lower raw cocoa powder usage without losing flavour or aroma.

What does the future look like for cocoa replacers?

The outlook for cocoa replacers is strong, with market growth expected to accelerate as industry challenges and shifting trends persist. Research from Innova Market Insights shows

that three in four consumers are willing to buy more sustainable chocolate but remain unsure about the available options, adding pressure on manufacturers to act.

Alongside plant-based and ingredientblend solutions, companies are also exploring more advanced technologies to create cocoa alternatives. Mondelēz International has invested in AI-driven, cell-based cocoa production, backing Israeli startup Celleste Bio, which recently secured US$4.5 million in a new funding round. The company plans to use the investment to boost research and development, expand its facilities, and advance the technology needed to pilot and scale its cell-based cocoa ingredients.

Celleste Bio is among a small group of players in this emerging field. Another Israeli startup, Kokomodo, exited stealth mode in mid-2024 with US$750,000 in funding, beginning with high-value cocoa powder and aiming to follow with cocoa butter. In the United States, California Cultured is supplying its Flavanol Cocoa Powder to Japanese confectionery giant Meiji, while Finnish food company Fazer is also exploring the potential of cell-based cocoa.

RISING COSTS AND SUPPLY CHALLENGES HAVE PUSHED SOME CONFECTIONERY PRODUCERS TO SEEK OUT COCOA REPLACERS.

SPECIALTY INGREDIENTS

The Hidden Power Behind Tomorrow’s Foods

By Mercy Mukiri

The demand for specialty ingredients is soaring, driven by evolving consumer tastes, heightened health awareness, and a more sophisticated understanding of food composition. This sector develops flavors and ingredients that perform sensory roles, enhancing taste, appearance, aroma, and mouthfeel, while also offering functional benefits, including nutraceuticals, enzymes, cultures, and preservatives. Although specialty ingredients typically account for less than 10% of the finished product cost, their impact on performance is critical.

These ingredients improve the nutritional profile of food and processed products. Natural preservatives, plantbased proteins, and sugar alternatives are gaining traction, while health-conscious lifestyles are driving the inclusion of probiotics, antioxidants, and dietary fibers in formulations. Technological innovations such as microencapsulation and enzyme technology are further enhancing ingredient stability and functionality. The rise of vegan, keto, and gluten-free diets is also shaping product development.

According to Towards FnB, the global specialty food ingredients market is valued at USD 113.01 billion in 2025 and is expected to reach USD 179.87 billion by 2034, growing at a CAGR of 5.3% during the forecast period.

Global Specialty Food Ingredients Market Segmentation

The market is commonly segmented by product type; enzymes, emulsifiers, antioxidants, and others, including hydrocolloids, cultures, specialty sweeteners, acidulants, preservatives, colors, and flavors. By application, demand is concentrated in bakery, confectionery, convenience/ready foods, and dairy, with additional use in beverages, meat and alternative proteins, and infant nutrition.

North America and Europe remain mature markets, while Asia–Pacific leads global growth, driven by rising processed food consumption in China, India, and Southeast Asia. Latin America and the Middle East & Africa are smaller but steadily growing.

In Africa, the specialty food ingredients sector is expanding alongside increased food processing capacity,

urbanization, and middle-class growth. South Africa remains the largest market, with well-established bakery, dairy, and beverage manufacturing. Nigeria, Kenya, Egypt, and Morocco are emerging hubs, where rising demand for packaged and fortified foods is boosting use of enzymes, emulsifiers, and natural antioxidants.

The bakery segment dominates much of Sub-Saharan Africa due to high wheat-based consumption, while dairy and beverage applications are strong in North and Southern Africa. Multinational suppliers are increasingly investing in regional distribution and technical support to serve local manufacturers. Industry estimates project Africa’s specialty food ingredients market to grow at 5–6% CAGR through 2030, with cleanlabel and fortified product trends driving demand for natural emulsifiers, plant-based antioxidants, and functional enzymes tailored to local processing conditions.

How Key Players are Transforming the Food Sector

Driven by demand for healthier, cleaner options, the specialty food ingredients market is seeing innovation in plant-based and functional products. Below are key examples of how manufacturers are leveraging these ingredients to meet market needs

DuPont’s YO-MIX PRIME Yoghurt Cultures

Launched in 2020, DuPont’s YO-MIX PRIME cultures enable manufacturers to produce yoghurts with a mild flavor and premium creamy texture. These cultures support reduced sugar content and high probiotic counts while maintaining quality through challenging distribution channels. By minimizing the need for additional protein in recipes, they offer cost savings and greater process flexibility through faster fermentation and precise acidity control before cooling and packaging. The YO-MIX PRIME 900 variant allows manufacturers to tailor yoghurt textures to specific consumer preferences, enhancing

product appeal.

Corbion’s PURAC® Powder MAX Acidulants

Corbion’s PURAC® Powder MAX and PURAC® Powder MAX Fine are patented acidulants designed for confectionery applications, including hard panning, tablets, and nonpareils. These ingredients deliver intense, long-lasting sourness while preserving texture and color stability, critical for high-quality sour candies. A Chemical Engineering report highlights that within the $17.4 billion global gums and jellies market, sour gummies are outpacing overall category growth, increasing at a CAGR of 8.15% from 2018 to 2022 compared to the segment’s 2.5% CAGR. However, tightening supplies of stable acid powders pose challenges for manufacturers.

dsm-firmenich’s Vibelly™ β-Carotene

dsm-firmenich’s CaroCare® β-carotene, produced via advanced fermentation, offers exceptional purity and meets USP standards. Ideal for ready-to-drink beverages and

functional foods, this natural-source beta-carotene provides vibrant coloration and potent antioxidant properties, supporting eye health, skin vitality, and immune function. Carotenoids like lutein and zeaxanthin are widely used in fortified beverages, dairy products, and dietary supplements, enhancing both nutritional value and visual appeal.

ADM’s Soprotex® N-Slices

ADM’s Soprotex® N-Slices, a textured soy protein designed for plant-based whole muscle applications, mimics the structure and mouthfeel of traditional meat cuts like steaks or chicken drumsticks. Produced through an advanced extrusion process using high-protein soy flour, these vegan, halal, kosher, and GMO-free slices align with consumer demand for cleanlabel, ethically sourced ingredients. Their versatility enables manufacturers to create cost-effective, protein-rich products without compromising taste or texture.

BASF’s Vitamin A

BASF’s Vitamin A (retinol) is a cornerstone of its vitamin portfolio, critical for vision, immune defense, and cellular growth. Its stable, microencapsulated beadlet formulations ensure long shelf life and consistent performance in fortified foods, beverages, and dietary supplements. By supporting epithelial tissue integrity and reproductive health, Vitamin A plays a vital role in global health initiatives.

Kerry’s Natural Preservatives and Specialty Oils

Kerry’s natural preservatives, such as rosemary extracts and fermented vinegars, provide antimicrobial protection while maintaining clean-label status. These solutions are ideal for snacks, sauces, and ready meals, addressing spoilage and oxidation challenges. Kerry’s medium-chain triglyceride (MCT) oil, popular in keto-friendly and performance nutrition products, enhances mouthfeel, flavor, and satiety in applications like dressings, baked goods, and beverages, appealing to health-conscious consumers.

Meeting Evolving Consumer Demands in Africa

The African food ingredients market, valued at $1.9 billion in 2024, is expected to reach $3 billion by 2034, growing at a CAGR of 4.7%, according to Global Market Insights. This growth is driven by the incorporation of locally sourced, indigenous ingredients that enhance authenticity and sustainability. Urbanization, a growing middle class, and technological advancements have shifted food preferences

toward convenience foods. The expansion of supermarkets and e-commerce platforms has made specialty ingredientbased products more accessible, while multinational companies invest in local partnerships to navigate regulatory complexities and tailor products to regional tastes.

Cameroon-based MonDawa is a leader in this space, transforming traditional African crops like moringa, fonio, and baobab into high-value, nutrient-rich food products. Similarly, South Africa’s Oya Foods, founded in 2020, leverages underutilized crops like sweet potato leaves, amaranth, and beetroot greens to create plant-based, shelf-stable products. Using modern dehydration techniques, Oya Foods preserves nutritional value without additives, minimizing waste by utilizing entire plants, such as producing beetroot crisps and dried leaves.

The Future of Specialty Ingredients

The specialty ingredients industry is poised for a future defined by innovation, sustainability, and personalization. AIdriven ingredient discovery is accelerating the development of novel plant compounds, optimizing flavors, and enhancing nutritional profiles. Precision fermentation, which produces proteins and bioactive compounds without traditional agriculture, is revolutionizing ingredient manufacturing. The global fermented food market is projected to exceed US$1.5 trillion by 2027, expanding into dairy-free cheeses, fermented sweeteners, and probiotic-rich desserts.

However, challenges persist. Cost inflation, driven by complex sourcing and processing, affects ingredients like vanilla beans, which have spiked over 300% due to production fluctuations in Madagascar, and sunflower lecithin, which saw a 35% price increase in Europe following supply disruptions. Evolving regulations, such as HFSS restrictions and EFSA bans on smoke flavorings, force costly reformulations. Additionally, some specialty ingredients raise health concerns, including allergic reactions and long-term risks like obesity when overconsumed.