Page 1

IN THIS ISSUE: GRAINS

SORTING | REVERSE OSMOSIS | HAND WASHING ESSENTIALS

WWW.FOODBUSINESSAFRICA.COM | SEP/OCT. 2018 NO. 32

INSIDE: EVENT REVIEWS:

AFMASS Southern Africa edition - Lusaka, Zambia

Wheat Milling in Kenya:

Investors ramp up new plants

Food Fortification:

Africa Food Industry Excellence Awards -

Africa makes significant progress

Nairobi, Kenya

MY FACTORY • MY STORY

REPORT

RETAIL INDUSTRY IN KENYA

Broadway Bakery celebrates 60 years of growth, taste and health

Change on the way

AFMASS CONFERENCE & EXPO EVENTS IN AFRICA IN 2019 AFMASS FOODTECH CONFERENCE - TANZANIA - FEB 27-28 AFMASS EASTERN AFRICA - KENYA - MAY 2-4 CONFERENCES & EXHIBITIONS

AFRICA HAPPENS AT AFMASS

WWW.AFMASS.COM

TM

AFMASS FOODTECH CONFERENCE - RWANDA - JULY 10-11 AFMASS SOUTHERN AFRICA - ZAMBIA - OCTOBER 3-5

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CONFERENCES & EXHIBITIONS

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AFRICA FOOD MANUFACTURING & SAFETY SUMMIT

Africa’s Largest Food, Beverage & Milling Industry Conferences & Exhibitions DISCOVER • NETWORK • BE INSPIRED Africa’s food, beverage and milling industry leaders and executives meet at the only series of events that reflect the heart beat of Africa’s industry: AFMASS Conferences & Exhibitions. AFMASS Conferences & Exhibitions bring world class technologies and ideas to Africa’s growing manufacturing, retail and food-service industry, better than any other trade event in the Continent.

Seeking to discover the pulse of Africa? Come on. Discover the Continent’s industry, its people and market trends at an AFMASS event near you.

UPCOMING AFMASS EDITIONS IN AFRICA • AFMASS Foodtech Conference: February 27-28, 2019 - Dar Es Salaam, Tanzania • AFMASS Eastern Africa Edition: May 9-11, 2019 - Nairobi, Kenya • AFMASS Foodtech Conference: July 11-12, 2019 - Kigali , Rwanda • AFMASS Southern Africa Edition: October 3-5, 2019 - Lusaka, Zambia • AFMASS Western Africa Edition: February 20-22, 2020 - Lagos, Nigeria

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DISCOVER

NETWORK

BE INSPIRED

Discover latest technologies and innovations from world leading suppliers. Have quality face-to-face meetings with business prospects and future partners in a businessfriendly atmosphere.

Network with your colleagues, industry peers, Govt. regulators and thought leaders from Africa and the World. Meet key stakeholders who matter to your business and personal growth.

Get inspiration for your next projects at career-changing daily conference sessions, where you will gather unique ideas you can adopt into your business immediately.

EASTERN AFRICA

WESTERN AFRICA

MAY 2-4, 2019 • NAIROBI, KENYA

APRIL. 15-17, 2020 • LAGOS, NIGERIA

FOODTECH CONFERENCE & EXPO RWANDA EDITION - JULY 10-11, 2019

FOODTECH CONFERENCE & EXPO TANZANIA EDITION - FEB. 27-28, 2019

SAVE THE DATES. REGISTRATION OPEN. FOR REGISTRATION & SPONSORSHIP/ EXHIBITION OPPORTUNITIES, CONTACT: INFO@FOODWORLDMEDIA.NET OR CALL: +254 725 34 39 32

SOUTHERN AFRICA OCTOBER 3-5, 2019 • LUSAKA, ZAMBIA

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contents

53

FORMULATIONS

FOOD FORTIFICATION TAKES ROOT IN AFRICA ARTICLES

ON THE COVER

IN THE NEXT ISSUE

(NOVEMBER/DECEMBER 2018)

INDUSTRY FOCUS:

44

Dairy Industry in Ethiopia

FORMULATIONS: FOOD FORTIFICATION

COMPANY PROFILES:

Big Five Breweries

Food fortification has taken root in Africa, despite the existence of challenges with implementation, weak regulation.

COMPANY FOCUS:

Danone in Africa

DAIRY BUSINESS AFRICA:

47 INDUSTRY FOCUS: WHEAT MILLING IN KENYA Investors in the wheat milling industry up the stakes as they seek to meet rising demand for wheat flour and baked goods in Kenya - and keep up with the latest milling, storage and food safety technologies. 6

Modified Starch | Lactose-free dairy products Peter Cottan, the Managing Director of Superior Milling, gives his keynote speech at the just concluded AFMASS Southern Africa edition in Lusaka, Zambia. Read this and other past issues of the magazine at www.foodbusinessafrica.com

SEPTEMBER/OCTOBER 2018 | FOOD BUSINESS AFRICA

BEVERAGE TECH AFRICA: Spirits in Africa | Caps and closures

FOOD SAFETY: Allergens management

ADVERTS DEADLINE: November 5, 2018

FOODBUSINESSAFRICA.COM


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contents www.foodbusinessafrica.com Volume 6 Issue 5, No.32 • ISSN 2307-3535

REGULARS 8

Editorial

10

World in Numbers

12

Events Calendar

14

International & African Industry News

26

Supplier News & Innovations

IN THE NEWS

FOUNDER & PUBLISHER Francis Juma EDITORIAL TEAM Maureen Onyango | Godfrey Anunda ADVERTISING & SUBSCRIPTION Jonah Sambai | Lavender Atieno CONTRIBUTORS Virginia Nyoro | Ronald Onsare

16

FoodBusinessAfrica.com records increased reader numbers

17

AFMASS FoodTech Conferences to debut in Tanzania and Rwanda in 2019

20

SA brewery launches Africa’s first cannabis lager beer

21

Danish Govt, Arla Nigerian state on dairy development

22

Carlsberg debuts recyclable glue to replace plastic packaging

24

Nestle announces investment to revive Zimbabwe’s coffee industry

26

EFSA to review potential hazards and safety levels of BPA

24

Coca-Cola Company to enter coffee retail, acquires Costa coffee

24

Industry leaders, companies feted at regional Awards ceremony

50

Egypt wheat imports to rise despite strong local production

50

Honeywell Flour Mills rise, to open new Sagamu mill

FoodWorld Media P.O Box 1874-00621, Village Market, Nairobi Kenya Tel: +254 20 8155022, Cell: +254 725 343932 info@foodworldmedia.net www.foodworldmedia.net

51

Unga to commission Kenyan plant, plans soy meal facility in 2019

RELATED PUBLICATIONS

51

International Rice Institute opens Kenyan office

DESIGN & LAYOUT Frank Bett

EVENTS REVIEW & PICTORIALS 27

AFMASS Southern Africa edition, Lusaka, Zambia - October 3-5, 2018

31

Africa Food Industry Excellence Awards, Nairobi, Kenya - Sept. 14, 2018

INDUSTRY FOCUS 47

Wheat Milling Industry in Kenya

OPERATIONS 52

Reverse Osmosis

56

Grain sorting: The future becomes more digital

FORMULATIONS 53

Food Fortification takes root in Africa, despite many challenges

SPECIAL REPORT 57

Retail Industry in Kenya - Foreign retai giants zero in on Kenya

FOOD SAFETY 59

Hand washing - the foundation of food safety

MY FACTORY • MY STORY 62

Broadway Bakery - celebrating 60 years of growth, taste and health!

68

Broadway Bakery instas first automatic mandazi line in Eastern Africa

8

SEPTEMBER/OCTOBER 2018 | FOOD BUSINESS AFRICA

SUBSCRIPTION

Email: info@foodworldmedia.net Food Business Africa (ISSN 23073535) is published 6 times a year by FoodWorld Media Ltd. The magazine is distributed for free to food, beverage, milling and foodservice companies and Government regulatory agencies in Africa. The magazine is available through paid subscription for the other stakeholders in the food chain, including suppliers to the sector. Copyright 2018. 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. FOODBUSINESSAFRICA.COM


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editorial

African countries must join hands to eliminate food-borne and infectious diseases

T

he year 2018 has been a bad one for Africa due to several headline grabbing disease outbreaks. Foodborne (for example Salmonellosis, Campylobacteriosis, E.coli, Taenia solium, and Listeriosis) and infectious diseases (including malaria, cholera, typhoid among others) continue to plague Africa, with significant sickness and death incidents reported each year. According to the World Health Organisation (WHO), Africa and south east Asia suffer the biggest food-borne and infectious disease burden in the World. One in ten people, or 600 million people fall ill after eating food around the world every year, says the WHO. 420,000 of these people die every year, including 125,000 children. Be they caused by bacteria, fungi, yeasts, parasites, toxins or chemicals – or 25 other causative agents - Africa has experienced a number of disease outbreaks this year that are a cause of concern for all involved. Consumers are getting more exposed every day to unsafe food and environments in the continent, and the problem is only getting worse, not better.

GOVERNMENTS, THE FOOD INDUSTRY AND OTHER STAKEHOLDERS HAVE A ROLE TO ENSURE FOOD-BORNE AND INFECTIOUS DISEASES ARE ELIMINATED IN AFRICA Early in the year, South Africa, the continent’s largest economy, was hit by the world’s most widespread and deadliest outbreak of Listeriosis. The country is only getting back to normal after the outbreak, with the facility fingered by the authorities to be one of the focal points for the outbreak, a meat processing company, just reopening this October after a long period of closure. An infectious disease that is very common in Africa, cholera, continues to wreak havoc in the continent, with more than 150,000 cases reported in 17 countries in Africa in 2017, including more than 3,000 deaths, according to WHO. More than ten African countries are either currently battling or have battled cholera outbreaks in 2018, including Zambia, Zimbabwe, Uganda, Nigeria, Niger, Cameroon, Chad, Democratic Republic of Congo, Algeria, Mozambique and Ghana. The two examples show the extent to which the continent is faring badly in controlling infectious and food-borne diseases. It doesn’t show the complete picture though, considering the millions of cases of stomach upsets and illnesses caused every day across Africa, with devastating effects, that go unreported. Data is difficult to gather and even harder to come across in Africa, considering the sensitivity with which governments hold such information, refusing to 10

SEPTEMBER/OCTOBER 2018 | FOOD BUSINESS AFRICA

IN NUMBERS

3,000

NUMBER OF DEATHS CAUSED BY CHOLERA IN AFRICA IN 2017, FROM 150,000 AFFECTED PEOPLE share with the public for fear of the public getting to know the full extent of the problem.

Collaborative effort welcome

It therefore was good news when health ministers from 47 African countries recently committed to adopt and implement key strategies to end cholera outbreaks in Africa by 2030. The countries within the Regional Framework for the Implementation of the Global Strategy for Cholera Prevention and Control have agreed to take evidencebased actions to tackle outbreaks, including enhancing epidemiological and laboratory surveillance, improving access to timely treatment, strengthening cross-border surveillance, promoting community engagement and increasing the use of the oral cholera vaccine. They further pledged to reduce by 90% the magnitude of cholera outbreaks particularly among vulnerable populations and in humanitarian crises. Speaking at the 68th session of the WHO’s Regional Committee for Africa in Dakar, Senegal, Dr Matshidiso Moeti, the WHO Regional Director for Africa said: “Cholera is a symbol of inequity, it’s an ancient disease, which has been eliminated in many parts of the world. Every death from cholera is preventable. We have the know-how and today countries have shown that they have the will to do whatever it takes to end cholera outbreaks by 2030.” It is such collaborative efforts that will eventually lead to the elimination of cholera and other infectious and foodborne diseases in Africa, coupled with investments in water and waste handling infrastructure, streamlining food safety policies and public health capabilities and improvement in food storage and processing capabilities. Governments, the food industry and other stakeholders have a huge role to ensure these diseases shall be gone sooner rather than later in Africa. Let’s set the ball rolling. Wish you a good read Francis Juma Founder & Publisher

FOODBUSINESSAFRICA.COM


FOODTECH

FREE CONF & EXPO ENTRY

CONFERENCES & EXPOS PROCESSING • PACKAGING • FOOD SAFETY

Welcome to Africa’s Food, Beverage & Milling Technology Conferences

FOODTECH

FOODTECH

CONFERENCE & EXPO

CONFERENCE & EXPO

TANZANIA EDITION - FEB. 27-28, 2019

RWANDA EDITION - JULY 10-11, 2019

Welcome to AFMASS FoodTech Conferences - the technical conferences that are aimed at imparting the latest technical skills and ideas to the key decision makers in Africa’s food, beverage, milling and hospitality industry. Run over two days, AFMASS FoodTech Conferences bring together the industry, Government regulators and other stakeholders to discover the latest trends in processing, packaging and food safety technologies, plus regulatory, nutrition, innovations and sustainability trends. Join us in Dar es Salaam, Tanzania on February 27-28, 2019 and in Kigali, Rwanda on July 10-11, 2019 as we discover Tanzania and the Great Lakes regions of Africa.

Register today at: www.afmass.com


CANADA:

62.6%

Percentage interest acquired by Premium Brands Holdings in Ontario based chicken producer, Yorkshire Valley Farms UK

USA

50%

US$5.1B

UK

USA

3

Number of US based beer companies that formed the Craft Brew Alliance

Value of in cash agreed on by Coca-Cola to acquire Costa Coffee.

4

USA

US$2.16B

Amount agreed by Tyson Foods to buy the Keystone Foods business from Marfrig Global Foods. USA

52%

Percentage of British consumers interested in plant-based diets

Percentage of expansion of Kroger’s delivery distribution service after Instacart partnership USA

US13.9M

UK

Value of acquisition of Haydens Bakery Limited by Bakkavor

US$144

Amount per share agreed on by PepsiCo to acquire all outstanding shares of SodaStream

US$150M

USA

Value to be invested by Cargill in a new pectin production facility in Brazil to meet demand USA

51%

USA

Percentage of Scandi Standard’s investment into Danish poultry producer Rokkedahl Foods Aps. USA

38%

118%

USA

100%

Percentage of shares in chemicals distributor E.T. Horn Company acquired by food ingredients specialty IMCD N.V

US$115M

49%

ALGERIA

Percentage growth of readyto-eat (RTE) popcorn in US between 2012 and 2017 backed by flavour innovation

120MMT

Volume in metric tonnes of US feed grain exports and co-products for the 2017/2018 marketing year

SPAIN

Amount invested by Ball Corporation to expand its metal packaging operations in Spain

Percentage of ownership of Constellation Brands in cannabis company Canopy Growth Corporation USA

100%

Percentage of Finsbury’s acquisition stake of UK’s gluten free bakery manufacturer Ultrapharm Ltd

Percentage interest in Algerian fruit producer acquired by Austrian ingredients producer Agrana

NIGERIA

US$12.78M

FrieslandCampina investment in Nigeria’s “ready-to-drink milk project”

NIGERIA

US$26M

Amount to be invested by FrieslandCampina in local milk production under its Dairy Development Programme (DDP)

BOTSWANA

19M

Amount planned to be raised by Zimbabwe’s Seed Co after Botswana listing

SOUTH AFRICA

US$864M

Value in cash of South Africa’s Aspen baby unit sold to French dairy cooperative Lactalis SOUTH AFRICA

85%

Increase in Earnings per Share of Astral Foods in 2018 annual results

12

SEPTEMBER/OCTOBER 2018 | FOOD BUSINESS AFRICA

FOODBUSINESSAFRICA.COM


INDIA

World in Numbers

US$858M

Value in cash of acquisition of India’s edible oil manufacturer Ruchi Soya by Fortune GERMANY

US$10.6M

INDIA

Amount secured by smart home water system, Mitte in financing led by Danone’s venture arm, Danone Manifesto Ventures

US$700M

Utmost value in funding to be INDIA US$584M raised by India’s Swiggy with Value offered by Amazon interest from the Chinese investment company, Tencent to acquire Asia’s grocery store, Birla Group EUROPE

INDIA

US$500M

Amount to be raised by Asia investors to join India’s delivery platform Swiggy

100%

Percentage of plant-based hamburgers introduced by meat alternatives firm Vivera ITALY FRANCE

6%

Percentage increase in sales posted by the French distiller Pernod Ricard in its 2018 full year results

US$215M

Amount offered by Maple Leaf Foods to acquire Canadian VIAU Foods

100%

US$25M

INDIA

US$286M

INDIA

ETHIOPIA

US$145M

Investment of Heineken Ethiopia at its Kilinto plant to increase production capacity KENYA

US$1.3M

Amount lost by Kenyan confectionery firms in export earnings on Tanzania’s sweets ban TANZANIA

US$16B

Value of Walmart-Flipkart acquisition approved by Competition Commission of India in August this year

Amount in loan earmarked by Ethiopian Sugar Corporation for Omo Kuraz Sugar Factory projects

Share that Coca-Cola plans to acquire in Nigeria’s Chi Limited

10%

Percentage market share Cargill targets to gain following its entry into rice bran oil segment

10.5K

INDIA

Number in thousands of unsafe eateries delisted by food delivery platforms Zomato, Swiggy, UberEats and FoodPanda

ETHIOPIA

NIGERIA

INDIA

PepsiCo India’s profit valuation for 2017/18 after seven consecutive years of losses

SINGAPORE

US$1.4M

Amount of funding to be received by IRRI for worldwide rice variety distribution and conservation INDONESIA

25%

Percentage less sugar in Nestle’s newly launched and improved MILO AUSTRALIA

45%

Percentage stake bought by Coca-Cola Co and Coca-Cola Amatil in Made Group

AUSTRALIA

11.2%

Percentage stake taken by dairy company Bega Cheese in Capilano Honey after significant investment

21.5%

Percentage increase in East African Breweries Limited’s (EABL) stake in Serengeti Breweries Limited (SBL) ZIMBABWE

US$200K

Amount in thousands provided by Food and Agriculture Organization (FAO) to rehabilitate two major irrigation schemes SOUTH AFRICA

US$15M

Investment of PET bottle recycler Extrupet into South Africa recycling economy

FOODBUSINESSAFRICA.COM

SEPTEMBER/OCTOBER 2018 | FOOD BUSINESS AFRICA

13


Events CALENDAR

October 14-17, 2018

November 16-18, 2018

February 17-21, 2019

PackExpo International Chicago, USA Focus: Packaging www.packexpointernational.com

China International Fruit & Vegetable Trade Fair

Focus: Horticulture www.en.chinafvf.com

Gulfood, Dubai, UAE Focus: Food & Beverage www.gulfood.com

October 20-23, 2018

November 18-20, 2018

February 19-21, 2019

National Frozen & Refrigerated Food Convention San Diego, CA Focus: Frozen & Refrigerated Foods www.nfraconvention.org

Middle East Organic & Natural Products Expo Dubai, UAE Focus: Organic and natural food products www.naturalproductme.com

Beviale Moscow Moscow, Russia Focus: Beverages www.beviale-moscow.com

October 22-25, 2018

November 21-23, 2018

29th Annual IAOM MidEast & African Conference & Expo Nairobi, Kenya Focus: Grain & Milling www.iaom-mea.com

October 24-26, 2018 Drink Technology India Mumbai, India Focus: Beverages www.drinktechnology-india.com

October 30- November 1 Yummex Middle East Dubai, UAE Focus: Sweets & Snacks www.yummex-me.com

November 5-8, 2018 Aquatech Amsterdam Focus: Water Technology www.watertechtrade.com/amsterdam

November 6-8, 2018 Gulfood Manufacturing Dubai, UAE Focus: Food & Beverage www.gulfoodmanufacturing.com

Anufood China Beijing, China Focus: Food & Beverage www.anufoodchina.com

BrauBeviale Nuremberg, Germany Focus: Beer www.braubeviale.de/en

AFMASS Foodtech Conference Dar es Salaam, Tanzania Focus: Food, Beverage & Milling www.afmass.com

March 5-8, 2019 November 28-30, 2018 Food Ingredients Europe Focus: Food & Beverage www.figlogal.com/fieurope

Foodex Japan Tokyo, Japan Focus: Food & Beverage www.jma.or.jp

December 8-10, 2018

May 7-9, 2019

Food Africa Cairo Cairo, Egypt Focus: Food & Beverage www.foodafrica-expo.com

Vitafoods Europe Geneva, Switzerland Focus: Nutrition, Health & Wellness www.vitafoods.eu.com

February 4-5, 2019

May 8-10, 2019

American Food Innovate Summit Chicago, USA Focus: Innovations & Consumer trends www.americanfoodinnovative.com

AFMASS Conference & Expo Eastern Africa Nairobi, Kenya Focus: Food, Beverage & Milling Email: info@foodworldmedia.net www.afmass.com

February 4-6, 2019 The Packaging Conference Nevada, USA Focus: Packaging technologies www.thepackagingconference.com

February 6, 2019 Dairy-Tech UK Coventry, England Focus: Dairy www.dairy-tech.uk

November 13-15, 2018

February 27-28, 2019

July 10-11, 2019 AFMASS Foodtech Conference Kigali, Rwanda Focus: Food, Beverage & Milling www.afmass.com

October 3-5, 2019 AFMASS Conference & Expo Southern Africa Lusaka, Zambia Focus: Food, Beverage & Milling www.afmass.com

For event listings, contact us at info@foodworldmedia.net for consideration. Terms and conditions apply AFMASS CONFERENCE & EXPO EVENTS IN AFRICA IN 2019 AFMASS FOODTECH CONFERENCE - TANZANIA - FEB 27-28 AFMASS EASTERN AFRICA - KENYA - MAY 9-11 CONFERENCES & EXHIBITIONS

AFRICA HAPPENS AT AFMASS TM

AFMASS FOODTECH CONFERENCE - RWANDA - JULY 10-11 AFMASS SOUTHERN AFRICA - ZAMBIA - OCTOBER 3-5

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Thank You!!

to the following sponsors, exhibitors and partners for your support in making AFMASS Southern Africa edition the pioneer and industry-changing food, beverage and milling industry event in Zambia and the SADC region!

Sponsors

Exhibitors

Partners

DAIRY ASSOCIATION OF ZAMBIA

www.AFMASS.com


news M&A

Coca-Cola to complete acquisition of Nigeria’s largest juice company NIGERIA – The world’s soft drinks giant

Coca-Cola is planning to acquire the remaining 60% stake in Nigeria’s leading juice and snacks producer, Chi Limited with the deal set to close early 2019. The Coca-Cola company entered an agreement to acquire an initial minority equity shareholding of 40% in the juice and snack producer Chi Ltd in 2016, with plans to increase ownership within three years, subject to regulatory approvals. The move is part of the US based beverage firm’s global strategy to diversify from its core business of making carbonated soft drinks even as consumers turn away to ‘healthier’ drinks. This was evident when Coca-Cola bought

the Costa Coffee chain from Whitbread this year in a near US$5.2 billion deal, giving it a foothold in one of the world’s fastest growing categories. “We are still on track to complete the acquisition (of Chi Ltd) by the end of the first quarter of 2019,” said Peter Njonjo, president of Coca-Cola’s west Africa business. Njonjo said the company is looking for ways to present hot-coffee drinking to the Nigerian culture. Coca-Cola will be offering drinks at a range of price points to improve affordability in Nigeria which has seen high inflation and modest economic growth. It is focusing on smaller bottles and cans as a way to boost

IN NUMBERS

60%

PERCENTAGE OF CHI LTD THAT NIGERIA PLANS TO ACQUIRE, TO COMPLETE TAKEOVER OF THE JUICE COMPANY sales in a country with consumers who are cash-strapped from years recession which just ended in 2017.

M&A

Drugmaker Aspen sells baby formula unit to French dairy group Lactalis for US$860m

SOUTH AFRICA – Aspen Pharmacare, the South African pharmaceuticals concern firm and Africa’s largest drug company has agreed to sell its infant formula business to French

dairy group Lactalis for US$864 million. Aspen is looking to focus on core activities including distribution of generic medicine and making of generic versions of antiretrovirals (ARV) while for Lactalis, the world’s largest dairy firm, the deal helps to rebuild its baby milk business. “We are pleased to announce that an agreement has been signed to divest of our Nutritionals Business to French-based Lactalis Group, a leading multinational dairy corporation. The disposal is in line with our strategic intention to focus our attention on our core pharmaceutical business, which includes the anaesthetics, thrombosis and

high potency & cytotoxic portfolios. The heightened focus is expected to drive increased business efficiency and performance,” said Stephen Saad, Aspen Group chief executive. The drug maker had in January said it was weighing options for the infant formula unit after it received a bidding approach last year. The infant formula business contributed US$209.17 million to group revenue in the year to June 30 during which it reported 5% increase in earnings to US$810 million. The infant formula market is dominated by Nestle, Danone and Reckitt Benckiser, which acquired Mead Johnson of the United States last year.

REGULATORY

Product reformulation, not taxes, a success in Ireland – association IRELAND – The Irish trade association, Food

Drink Ireland (FDI) has said that product reformulation efforts rather than taxes, have brought tangible results for public health, a critical indicator for the success of the industry, according to Euractiv. The 2016 Reformulation Project report indicated that food and drink companies are continuously reformulating their products, reducing nutrients without compromising food product safety, integrity and taste. These include significant reductions in fat, saturated fat, sugar, salt and calories in light of rising obesity rates across Europe. “The impact of reformulation variations is approximately twice as effective as a tax in achieving calorie reduction,” FDI director

Paul Kelly told Euractiv. “The report was the first of its kind in the world. Never before had the impact of reformulation on the diet of an entire nation been analysed.” Based on the World Health Organisation recommendations, a number of European Union countries have moved to impose taxes on sugary products with the aim of reducing consumption of sugar. Nevertheless, no significant measurement has been made to highlight positive impacts of taxation on public health. The research, which measured both the impact of reformulated products on quantities of nutrients and that of the reformulation on the population, showed that the sugar content in 600 products from 14 of Ireland’s major

food and drink companies fell by 14% during the 2005-2012 period. According to Kelly, product reformulation is much more effective than taxation: “And this happens at no cost to the consumer, unlike a tax.” Data from the Irish Department of Health revealed that the impact of taxation amounts to 2.1 Kcal per day for the adult population and 4.5 Kcal per day reductions for the young. On the other hand, FDI’s research says that the impact of reformulation of product variation is 4.02 Kcal per day for the adult populations, and 10.1 Kcal per day for teenagers.


M&A

Firmenich to acquire the US taste innovation and biotechnology firm Senomyx SWITZERLAND – The Swiss fragrance and flavour solutions company Firmenich has reached an agreement to acquire Senomyx Inc., an American based flavours and taste firm with the deal expected to close in the fourth quarter of 2018. According to Firmenich, this builds on their long-term partnership in taste and nutrition with Senomyx, a market leader in taste innovation, and a pioneer in sweet, cooling and bitter solutions.

“Building on our world-class science and pioneering taste platform, this strategic acquisition confirms our commitment to being the partner of choice in taste and nutrition,” said Gilbert Ghostine, CEO Firmenich. “Adding Senomyx’s leading taste technologies and strong natural ingredients pipeline to our taste platform, uniquely positions us to create healthy and great tasting food, drink and oral care experiences for our customers.”

While Senomyx R&D operations will remain in San Diego, Firmenich is looking to advance product innovation and capabilities in developing natural taste solutions for customers. International Flavors & Fragrances Inc. (IFF) on the other hand has completed the acquisition of the Israeli-based flavor and fragrance company Frutarom for US$7.1 billion.

SUPPLY CHAIN

AB InBev opens new automated ‘robo-warehouses’ in UK brewery UK – AB InBev, a multinational drink and brewing company, is opening a new automated warehouse with space to store 23 million pints of beer at its largest UK brewery in Magor, South Wales. The 80,000 cubic metre warehouse will enable AB InBev to meet growing UK demand for beer brands, including Stella Artois, Budweiser, Bud Light and alcoholfree Budweiser Prohibition. The warehouse’s technology will reduce the brewery’s carbon

footprint by 605 tonnes of CO2, the equivalent to the electricity consumption of 600 homes, by reducing transportation between warehouses. It builds on several investments at the Welsh brewery, including a CO2 recovery system and a waste-to-energy power generator. Robotic cranes operating across six stories and 9 miles of racking will be able to retrieve any one of the stored pallets in under 60 seconds. “I’m proud that this technology is a

global first for AB InBev and look forward to seeing its implementation all over the world,” said Lloyd Manship, Brewery Manager for AB InBev. The investment reinforces the brewer’s commitment to its 2025 Sustainability Goals, which includes the target of a 25% reduction to carbon emissions across its value chain against a 2017 baseline – the equivalent of taking more than 1.5 million cars off the road each year.

REGULATORY

FDA to examine use of ‘milk, cheese, and yogurt’ terms in labeling plant-based products USA – The Food and Drug Administration (FDA) of the United States is reviewing the use of dairy food names like ‘milk’, ‘cheese’, ‘yogurt’ in the labeling of plant-based food and beverages. Foods may require to be labeled with information about what is in the food, its health benefits, and place of origin, where it was grown and how it was prepared. The initiative looks to address concerns that some plant-based products are named with certain terms associated with dairy products, even though they vary widely in their nutritional

content. Many dairy products, such as milk, yogurt, and certain cheeses, have standards of identity set by regulation but they have more recently, appeared in the labeling of plant-based products as part of the name or statement of identity of the product. According to Renub Research, global dairy alternatives market is expected to exceed US$34 billion by 2024, and this rapid growth has seen products with names like “soy milk,” “almond milk” and “vegan mozzarella cheese” hit market shelves.

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TECHNOLOGY

FoodBusinessAfrica.com records increased reader numbers, migrates to a single server

KENYA – Africa’s leading food, beverage and

milling industry website Foodbusinessafrica. com has over the last year received overwhelming growth in traffic, with a record 10.4 million hits over the past year to the end of September 2018, thanks to the website’s dedicated readership in Africa and across the world. According to FoodWorld Media, the publishers of Food Business Africa magazine and owners of the website, there has been a 50% increase in hits on the site, which have hit 1.1 million from 595,000 hits per month at the same time last year. The website also recorded a 36% rise

in visitor numbers to 68,000 visitors per month in September compared to 50,000 visitors in 2017. It has over the last 5 months continuously recorded more than 1 million hits per month, placing it as the best visited website in the food, beverage and milling industry in Africa. “We are proud of achieving these milestones. The increase in traffic on the website goes a long way in showing the interests of our target audience to the daily news updates, which capture the key industries in the milling, baking, dairy, agribusiness as well as retail businesses in Africa,” says Francis Juma, the team leader at FoodWorld Media. “As a result of the increase in traffic on the site, we have now migrated to a single server, thereby adding resources to handle the improved traffic on the site. The move has eliminated down time that we have experienced on the site since we hit the 1 million hits landmark in May this year,” Juma revealed. Juma says that the increase in numbers is good news to the companies that would like to utilize the website to reach out to the

industry in Africa and beyond. “We have run a number of website advertising campaigns for the likes of DSM, bioMerieux, Emirates Cargo, Sendy, Kerry Ingredients, Omas, Pingle Group, Anuga FoodTech, IAOM and more companies and organisations we have worked with over the years. In operation since 2013, FoodBusinessAfrica.com has become a critical portal for the leading suppliers to interact with the key decision makers in Africa and beyond, considering its worldwide readership.” The website is Africa’s first food, beverage and milling industry focused on the technologies and ideas to the growing retail, manufacturing and food-service industry in the continent. Updated daily, the website also sends out two e-newsletters every Monday and Thursday morning to its growing list of subscribers from Africa and the rest of the World, who rely on the e-newsletters to keep abreast of the latest happenings in the food industry around the World.

AWARDS

Fortification solutions supplier wins Tanzania’s innovations award

TANZANIA - A new fortification device, the Sanku dosifier machine, that collects mill production data and transmits it automatically to a central, cloud-based platform by SankuProject Healthy Children (PHC) in Tanzania has won the IoT Evolution Product of the Year Awards. Partnering with communications technology provider Vodafone, Sanku-PHC 18

redesigned a new fortification device, that collects mill production data and transmits it automatically to a central, cloud-based database via the Vodafone Managed IoT Connectivity Platform. The IoT Evolution Product of the Year Awards are regarded as some of the most prestigious and respected awards in the communications and technology sector worldwide. The dosifier enables small flour mills in rural areas to fortify flour with precise amounts of key nutrients during the milling process. The innovation by Sanku-PHC reduces costs while remotely monitoring, streamlines staffing, improves efficiencies, and ultimately scales up technology and business solutions to put lifesaving nutrients into the food that hundreds of millions of malnourished people eat every day, says Sanku. “This kind of technology has been available to large production sites for some time,” says Felix Brooks-Church, Co-founder & CEO of Sanku, “but not small, remote mills. And 95% of the population is reliant on small

SEPTEMBER/OCTOBER 2018 | FOOD BUSINESS AFRICA

mills. We installed a Vodafone global sim into every Sanku dosifier machine responsible for delivering the health ministry’s standard of required nutrients into the flour at local mills. “The Vodafone global sim allows for incountry roaming reaching the most remote areas, allowing access to up-to-the-minute information on maintenance, power supply and machine tracking via GPS. Performance data is transmitted every five minutes, from nutrient ratios, weight readings to feed screw speeds. It transforms Sanku-PHC’s reach, operational efficiency and effectiveness of each mill.” He says that currently, 100% of Sanku’s dosifier machines installed at mills across Tanzania and Rwanda have since been upgraded with the solution. The new Sanku Smart Dosifier orange generation, which has the Vodafone cellular component built into the dosifier, is due to be installed across Tanzania during September – December 2018, with plans to double the reach of the company’s solutions to over 2 million people in 2019. FOODBUSINESSAFRICA.COM


EVENTS

New AFMASS FoodTech Conferences to debut in Tanzania and Rwanda in 2019 industry, government agencies, academia and other stakeholders in the two countries. They are also aimed at providing unique CONFERENCES & EXPOS networking platform PROCESSING • PACKAGING • FOOD SAFETY while enabling the industry in the two EAST AFRICA – A new set of events with countries to identify some of the most critical a focus on the food, beverage and milling suppliers of equipment, packaging, food safety industry in Africa have been unveiled as the and related industry solutions. AFMASS series of events are set to expand to They will be attended by top managers more countries in Africa. and investors; technical managers and The AFMASS FoodTech Conferences professionals; Government regulatiors, cover the latest trends in processing, academicians and researchers; NGO and packaging, food safety and nutrition and development institution investors and health, with a focus on the industry in Africa. suppliers to the industry in Tanzania and the They will be the first technical conferences region. targeted at Tanzania and Rwanda’s food, AFMASS FoodTech Conference – beverage and milling industry. Tanzania edition is planned for February 27The Conference sessions will cover the 28, 2019 in Dar es Salaam in the commercial latest trends in processing, packaging, food capital of Tanzania. safety and nutrition and health, with a focus The event targets the food and agriculture on the industry in Tanzania and Rwanda, industry stakeholders from Tanzania and with the aim of building the capacity of the Zanzibar, where the food, beverage and

FOODTECH

milling industry has gone through a major transformation, with major investments in agriculture and agribusiness opening many opportunities in the milling, beverages, meat, dairy, fruits and veg, bakery, animal feed and other associated food industries. AFMASS FoodTech Conference – Rwanda edition will take place on July 1112, 2019 in Kigali, Rwanda, with a focus on the industry in Rwanda and the Great Lakes Region of Africa. The food, beverage and milling industry in Rwanda and the Great Lakes Region is growing rapidly, with agriculture acting as the back bone to the growth of the dairy, milling, beverages, poultry, fruits and veg, bakery, animal feed and other associated food industries. This event will tap into and support the growth of the milk, beverages, milling, meat, poultry, fish, fruits and veg and related food processing, packaging and handling industries in Rwanda and the region at large. More information about the AFMASS FoodTech Conferences can be found at www. afmass.com


INNOVATIONS

Brewery launches Africa’s first cannabis lager beer, wins backing from top CEOs

SOUTH AFRICA – Poison City Brewing, which launched the first cannabis-infused lager beer in South Africa, has received funding from Durban-based investors, including RCL Foods CEO Miles Dally and Spar CEO Graham O’Connor, reports Business Day.

According to the brewer’s co-owner Andre Schubert, it started selling its lager containing hemp - made with cannabis sativa

as an ingredient in September to become the first in the country. The company plans to make cannabis drinks through its own joint venture in Canada which is in the process of legalizing recreational use of marijuana after the senate vote. “Cannabis beers are becoming a massive worldwide trend … We’re setting a precedent for other breweries in South Africa by being the first to experiment with this ingredient here,” said Graeme Bird, co-owner and founder of the Durban-based Poison City Brewing. “Hops and cannabis are very closely related and share many similar chemical characteristics, which means that hemp is an interesting and viable ingredient for beermaking.” Global brewing giants are increasingly linking up with marijuana producers even as alcohol sales drop, seeking tie-ups especially in areas where cannabis has been legalized. According to a 2017 Georgia State University

study, alcohol sales had fallen 15% in US states where medicinal marijuana had been legalised. New York based maker of Corona beer, Constellation Brands announced a US$4 billion investment in Canadian marijuana company Canopy Growth in August this year, the largest ever in the space. In the same month, Heineken launched its new brew, Hi-Fi Hops, from California beer brand Lagunitas, made with marijuana instead of alcohol. Diageo, which makes Guinness beers and Johnnie Walker whiskey, is reportedly in talks with Canadian marijuana producers about a possible deal, and Molson Coors Brewing Company, through its own joint venture, plans to make cannabis drinks in Canada. Coca-Cola is the latest, yet to enter the cannabis space as it was reported to be in talks with Canadian licensed cannabis producer, Aurora Cannabis for a possible foray into cannabis-infused beverages.

REGULATORY

McDonald’s scraps all artificial flavours, colors and preservatives from burger portfolio

USA – McDonald’s US, the fast food giant, is scrapping all artificial flavors, colors, and preservatives from artificial sources from its

top-selling classic burger portfolio. The ingredient change is part of McDonald’s ongoing strategy to offer healthier versions of iconic and classic products which they’re famous for and is the latest in a long line of McDonald’s menu innovation. “From switching to 100% fresh beef in our quarter-pound burgers, cooked right when ordered, to removing artificial preservatives in our Chicken McNuggets and committing to cage-free eggs by 2025, we have made significant strides in evolving the quality of our food,” said Chris Kempczinski, McDonald’s US President. “We know quality choices are important

to our customers and this latest positive change to our classic burgers demonstrates our committed journey to leading with the customer and building a better McDonald’s.” This is the latest in McDonald’s US customer-driven initiatives. Previous commitments include sustainably sourcing all McCafé coffee by 2020, and transitioning to cage-free eggs in US and Canada by 2025. By 2020, the company has also committed to sourcing a portion of its beef from its top 10 beef-sourcing countries from suppliers participating in sustainability programs aligned with the Global Roundtable for Sustainable Beef principles and criteria.

AGRIBUSINESS

Cargill doubles volume of sustainable sourced cocoa to benefit farmers in Ghana - The food, agriculture and industrial products company Cargill has doubled the volume of sustainable cocoa sourced, with an estimated 13,000 cocoa farmers who benefit from its own licensed buying company (LBC) initiative. According to Cargill, developing a direct sourcing capability in Ghana, the world’s second largest cocoa producing country would enable it meet growing demand for sustainable, certified cocoa. For the 2017/18

GHANA

20

crop season, Cargill has purchased 10,000 metric tons of certified cocoa and is making its second sustainable premium payment of US$ 870,000 to farmers since establishing its own direct sourcing model in 2016. The premium payments currently represent the highest payments paid per bag of certified cocoa in the industry for the 2017/2018 crop season in Ghana, said the company. “Direct sourcing puts cocoa farmers at the heart of our business and it means

SEPTEMBER/OCTOBER 2018 | FOOD BUSINESS AFRICA

Cargill has become the partner of choice for cocoa farmers in Ghana,” said Pieter Reichert, Managing Director of Cargill’s cocoa and chocolate business in Ghana. LBC which is e-money enabled, allows Cargill to pay farmers directly by electronic transfer, ensuring the money reaches the grower swiftly, safely and accurately.

FOODBUSINESSAFRICA.COM


RETAIL

Shoprite’s Checkers launches Ready to Chef meal kits that makes cooking easier SOUTH AFRICA – Checkers, a South African FMCG retailer owned by Shoprite has launched Ready to Chef meal kits aimed at making cooking at home much easier, a report by IOL reveals. The meal kits, first for South African retailers have been developed by chefs and each meal kit has fresh and locally-sourced ingredients, a step-by-step recipe card and a QR code a how-to video. The company said the development, which took a period of over 6 months places a huge focus on increasing the range and quality of their convenience offering. “The Ready to Chef meal kits were specifically developed to enable time-pressed consumers to make delicious, yet effort-free dinners at home,” said Checkers. The meal kit is perfectly portioned for

two people allowing consumers to improve the way that they handle their food waste at home, available in stores in four different recipes including a vegetarian option. Checkers is the first South African supermarket to enter the meal kit space, which has become increasingly popular among time-pressed consumers looking to cook effort-free dinners at home. Meal kit market aims at offering convenient and affordable ready-to-cook meals to consumers looking for a more simplistic and streamlined culinary experience. Acrylamide is a chemical produced in the bean roasting process that is a known carcinogen and has been at the heart of an eight-year legal struggle between a tiny nonprofit group and Big Coffee. U.S. Department of Health and Human Services and the

U.S. Department of Agriculture state that moderate coffee consumption (3-5 cups a day or up to 400 mg/day of caffeine) can be incorporated into healthy eating patterns.

M&A

PepsiCo to acquire Israeli manufacturing company SodaStream USA – Beverages and food company

PepsiCo, Inc. has entered into an agreement to acquire all outstanding shares of SodaStream, an Israeli manufacturing company, for US$144.00 per share in cash, subject to regulators and shareholders’ approval, in a transaction valued at US$3.2 billion. “PepsiCo and SodaStream are an inspired match,” said PepsiCo Chairman and CEO Indra Nooyi. “Daniel and his leadership team have built an extraordinary company that is offering consumers the ability to make great-tasting beverages

while reducing the amount of waste generated.” PepsiCo’s strong distribution capabilities, global reach, R&D, design and marketing expertise, combined with SodaStream’s differentiated and unique product range will position SodaStream for further expansion and breakthrough innovation, says PepsiCo. The transaction is another step in PepsiCo’s Performance with Purpose journey, promoting health and wellness through environmentally friendly, costeffective and fun-to-use beverage solutions.

AGRIBUSINESS

Palm oil plantations across Africa forecast to rise as demand increases, study says

AFRICA – A new study forecasts a rise

in palm oil plantations across Africa as the global demand for the commodity continues to grow, as the continent offers

FOODBUSINESSAFRICA.COM

the low-lying tropical ecosystems palm oil prefers, hence an opportunity for businesses and local farmers to generate income. The new study – which examines palm oils potential effects on Africa’s biodiversity – closely follows global investors calling for stronger standards from the Roundtable on Sustainable Palm Oil (RSPO). More than 90 institutional investors representing more than US$6.7 trillion in assets have called on the RSPO to strengthen its standards for certifying the sustainable production of palm oil. In the study from CIRAD – Agricultural Research for Development, the researchers set out to identify “areas of compromise” in which oil palm cultivation would be most

productive while having little impact on primates. Currently, most of the world’s palm oil is produced in Indonesia and Malaysia. Palm oil plantations replaced 2.7 million hectares of tropical forest between 1990 and 2005, leading to a loss of biodiversity and an increase in greenhouse gas emissions. “If we combine these figures with the data on primate vulnerability, oil palm could only be grown with little impact on primates on 3.3 Mha. That figure drops to 0.13 Mha if we only consider highpotential land,” said Ghislain Vieilledent, CIRAD ecologist and co-author of the study.

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REGULATORY

Japan scraps ban on liquid baby formula with new standards for manufacturers JAPAN – Japan has scrapped its ban on the milk industry that prohibited the production and sale of liquid baby formula, giving manufacturers new standards for infant liquid formula, reports justfood. The country says that manufacturers will be permitted to produce and market new items after the ministry ministry of health, labour and welfare and the Consumer Affairs Agency approves the products. The Japan Dairy Association, which represents farmers, business and retailers across the nation’s milk supply chain, has been calling for the regulations to be changed since 2009. “This is going to mean more choices for Japanese consumers and increase the

varieties that are available here,” said Keishiro Shin, a spokesman for the Tokyo-based organisation. “I had to use powdered formula when my children were young, and I think that my people will be glad to at least have an alternative,” he said. Historically, Japan has favoured powdered milk formula because it was easier to produce and more stable. The dairy association has worked with the ministry to develop the regulations and conducted a series of tests on ingredients and packaging. However, the association estimates that the first domestically produced liquid baby formulas will not be on the shelves for another year.

INVESTMENT

RC Cola enters Nigerian beverage market with new plant NIGERIA – The American beverage company and maker of a cola-flavoured soft drink Royal Crown Cola (RC Cola) Company has entered the Nigerian beverage market and has invested in a stateof-the art factory in Agbara, Ogun state, reports Vanguard.

The firm said it was ready for competition in the market dominated by Coca-Cola and 7-Up by leveraging on the brand’s legacy and consistency since its inception in 1905. The company’s Managing Director, Moshy Cohen said the brand is presently in 65 countries where it competes favourably, and Nigeria was not only a huge but also an interesting market. “We produce 35,000 bottles per hour, 11

lines with more than 40,000 per hour and we are setting more lines that will give us 90,000 per hour, to enable us meet up with demands of our customers,” he said. “Our idea in Nigeria is to supply the demand because it is huge. So, the magic is not only to supply the demand, but to be consistent and keep to our value, quality over time.” The company is looking to partner with distributors, wholesalers and retailers to ensure an efficient supply chain. The Head of Marketing Shakiru Briamo said: “We have a lot of plans, and we have been doing our marketing experiential to make this product go all over Nigeria, because it’s not about distributing to the distributors alone but helping them to push this product out.”

FOOD SAFETY

African Health Ministers adopt framework to end cholera outbreaks by 2030

AFRICA – Health Ministers from 47 African countries have committed to adopt and implement key strategies in efforts to end cholera outbreaks in the African region by 2030. The ministers have adopted Regional Framework for the Implementation of the Global Strategy for Cholera Prevention 22

and Control to end the epidemic that has found ground especially in sub-Saharan Africa. Represented countries agreed to take evidence-based actions to tackle outbreaks, including enhancing epidemiological and laboratory surveillance, improving access to timely treatment, strengthening crossborder surveillance, promoting community engagement and increasing the use of the oral cholera vaccine. They further pledged to reduce by 90% the magnitude of cholera outbreaks particularly among vulnerable populations and in humanitarian crises. “Cholera is a symbol of inequity, it’s an ancient disease, which has been eliminated in many parts of the world. Every death from cholera is preventable. We have the knowhow and today countries have shown that

SEPTEMBER/OCTOBER 2018 | FOOD BUSINESS AFRICA

they have the will to do whatever it takes to end cholera outbreaks by 2030,” said Dr Matshidiso Moeti, the WHO Regional Director for Africa. Cholera remains a disease that easily strikes in Africa. Zambia early this year reported an outbreak that killed 114 people and affected over 5000 people, according to the CDC. The European Centre for Disease Prevention and Control (ECDC) recently issued a travel advice regarding cholera outbreak in Algeria where over 160 cholera cases have been reported. Zimbabwe also reported an outbreak in September that had not been contained as we went to press. WHO, the UN’s health agency is working in partnership with other partners to build a comprehensive and sustainable response throughout the region. FOODBUSINESSAFRICA.COM


AGRIBUSINESS

Danish government and Arla to partner Kaduna State on dairy development NIGERIA - Kaduna state government and

Denmark are planning to establish a dairy farming scheme involving 1,000 families of herdsmen with 12,000 heads of cattle in a location with an overall objective of developing the dairy sector. While the Kaduna state will provide initial infrastructure and funding, the Danish government will bring investors through its Agriculture Counsellor in the country. Denmark together with some companies had pledged to support Nigeria in boosting her local milk production even though Nigeria imports large amounts of milk from Denmark. To that effect, Arla Foods, a Danish dairy cooperative signed a Memorandum of Understanding (MoU)

with the Nigerian Ministry of Agriculture to increase local milk production in the country. Arla Foods introduced ‘The Milking Way to Development’ aimed at making Nigerian local farmers become better milk producers for local consumption and even for export. “A Danish company, Arla, will then buy the milk off the cattle farmers,” said Mr Torben Gettermann, the outgoing Ambassador of the Kingdom of Denmark. “Dairy farming is not exactly the same thing as ranching, it will yield better milk, and the Danish company will buy the milk from the farmers.”

FINANCIALS

Simbisa Brands revenue increases 33% as it consolidates regional hold

ZIMBABWE – Zimbabwe’s Quick service restaurant (QSR) group, Simbisa Brands Limited’s revenue for the year ended 30 June increased 33% from US$151.1 million to US$204.7 million on expansion, consolidation and acquisitions in the regional markets. A trading update issued by the company stated that cash generated from operations after changes in working capital increased to US$28.3 million while cash utilised in investing activities of US$11.1 million was incurred mainly for expansion activities in Kenya and Zimbabwe. Simbisa is looking

to maintaining the growth trajectory in the region in the year. It plans to further grow its core QSR business in both existing and new markets in Africa while expanding casual dining services in Zimbabwe where high income demographic is expected. “I am optimistic that a stabilisation in the socio-political environment and the impending economic reform in the wake of elections in Kenya and Zimbabwe will pave way for continued growth and new opportunities in these two markets where we are most developed,” said the group chairman Addington Chinake. The group said it managed to reach a record high in customer count in its 30 years trading history. The company acquired additional interests in Zambia, Ghana and Mauritius and secured 49.9% interest in voting shares in

its Ghanaian operating entity, increasing its ownership to 100% during the year. In July, the restaurant chain acquired an additional 36.5% in its Mauritius operating entity, increasing its ownership to 87.5% valuing it at US$1.28 million. In Zimbabwe, the group also expanded its casual dining segment after adding RocoMamas and Ocean Basket as well as Mugg and Bean in Zambia, while its interest in the Zambian entity reduced from 100% to 51% after it issued shares to its local partner in exchange for their 50% share of assets and liabilities in a joint operation. Chinake said that due to continued macroeconomic challenges and the rising financial and operational risk of operating in the DRC, the company had disposed of its interest in that country.

Would you want us to Share your Story with our readers? Are you a Manufacturer, Retailer, Supplier or Distributor in the food, beverage and milling industry? We would like to share the story of your great company with our readers in Africa and beyond. Contact us today

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SEPTEMBER/OCTOBER 2018 | FOOD BUSINESS AFRICA

23


COMMERCE

Walmart unveils new last-mile delivery pilot to expand its grocery delivery services

USA – The American retail corporation

Walmart, has announced a new last-mile delivery pilot programme, Spark Delivery, that will see timely grocery deliveries from their stores to customer’s front doors.

The crowd-sourced delivery platform allows Walmart to learn more about the full last-mile delivery process by using an in-house platform that provides drivers with flexibility and navigation assistance regarding grocery delivery order details. Powered by Bringg, a leading delivery logistics technology platform, the system uses the company’s 25,000 personal shoppers who will fulfil customer orders and ensure timely delivery. The expansion of its grocery delivery service gives customers options to shop when and how they want as they ensure complete deliveries and management of last-mile contractor. “We’re saving customers’ time by

leveraging new technology, and connecting all the parts of our business into a single seamless shopping experience: great stores, easy pickup, fast delivery, apps and websites that are simple to use,” said Greg Foran, president and CEO, Walmart U.S. According to Walmart, the company is on its way to bringing grocery delivery to 100 metro areas covering 40% of U.S. households given that the service is available in nearly 50 markets including Atlanta, Chicago, Denver, Miami and Seattle. Walmart recently partnered with Microsoft Corp for wider use of cloud and artificial intelligence technology to boost ecommerce against Amazon.

INVESTMENT

Nestle announces long-term investment to revive Zimbabwe’s coffee industry

ZIMBABWE – Nespresso, a coffee operating unit of the Nestlé Group, has announced a long-term investment plan to revive Zimbabwe’s coffee industry and stimulate the rural economy. The company announced that it will

provide training and technical assistance to 400 smallholder coffee farmers over the next five years, with the goal of increasing the country’s production of quality sustainable coffee through climate smart, sustainable farming practices. It will work with TechnoServe, an international non-profit organization specializing in business solutions to poverty “We are investing in reviving coffee farming in different regions of the world, where adverse conditions have impacted the lives of farmers and their ability to grow and nurture their coffee industries,” said JeanMarc Duvoisin, CEO of Nespresso. The revival of the Zimbabwean coffee

industry is part of Nespresso’s commitment to investing in coffee communities to create sustainable sources of income, preserve the environment and ensure coffee availability for future generations. Nespresso’s investment in Zimbabwe follows similar efforts the company has made to revive coffee production in South Sudan and in former conflict zones of Colombia. From a high of about 12,000 tonnes bags in the late 1980s to the early 1990s, coffee production in the country has plummeted to 430 tonnes in the 2017/18 season, with acreage dwindling from 8,000 hectares to 379 hectares last year.

SUSTAINABILITY

Carlsberg replaces plastic pack rings with recyclable glue to tackle plastic waste

DENMARK – The Danish brewer Carlsberg has unveiled innovative solutions to reduce plastic waste including the launch of ‘Snap Pack’, which it says will reduce plastic waste globally by more than 1200 tonnes, or about 24

60 million plastic bags a year. With the new technology, Carlsberg has become the first in the beer industry to eliminate pack rings, plastic wrapping used around its cans that will be replaced with recyclable glue. Plastic pack rings known in the industry as hi-cones or yokes, are connected plastic rings used to hold together multi-packs of canned drinks, particularly beers, and in the recent past have raised concerns on their contribution to oceanic pollution. The glue can hold cans in four, six or eightcan packs and can be recycled along with the aluminium can. The company plans to roll out

SEPTEMBER/OCTOBER 2018 | FOOD BUSINESS AFRICA

the packs in some Tesco branches in the UK on its Carlsberg Export and its entire drinks portfolio, including Tuborg and San Miguel, followed by Norway. “It’s an important day for Carlsberg, we are working hard to deliver on our ambitious sustainability agenda and to help tackle climate change,” said Cees’t Hart, CEO of the Carlsberg Group. Snap Pack is one of Carlsberg’s sustainable packaging solutions and part of the group’s sustainability programme, Together Towards zero which includes ambitions of a zero carbon footprint and zero water waste. FOODBUSINESSAFRICA.COM


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FOOD SAFETY

EFSA to review potential hazards and safety levels of food contact material bisphenol A EU – The European Food Safety Authority

(EFSA) has unveiled a new working group of scientific experts to evaluate recent technological data on the potential hazards and safety limits of the food contact material bisphenol A (BPA). The re-assessment will be carried out by EFSA’s Panel on Food Contact Materials, Enzymes and Processing Aids (CEP) to review the temporary safe level set in EFSA’s previous full risk assessment

from 2015. According to EFSA, the new assessment should be ready by 2020. “I’m pleased to announce that we have selected the experts for our new BPA working group. They will be aided in this work by the scientific protocol for the hazard assessment of BPA, finalised by EFSA and a group of international experts in 2017 and then discussed during a public workshop,” said Dr Claudia Roncancio Peña, head of food ingredients and packaging at EFSA.

“As a first step, the experts will test EFSA’s new methodology for appraising evidence on BPA toxicity on a representative selection of key studies from previous assessments and publish the results,” added Dr Roncancio Peña. On the other side of the Atlantic, the U.S. FDA has ended its authorization of the use of BPA in baby bottles and infant formula packaging, based on market abandonment, not safety.

M&A

Coca-Cola Company to enter coffee retail, acquires Costa coffee for US$5.1b

USA – The Coca-Cola Company has

announced that it has reached a definitive agreement to acquire Costa Limited, valued at US$5.1 billion, giving it a strong coffee platform across parts of Europe, Asia Pacific, the Middle East and Africa, with the opportunity for additional expansion. According to the company, Costa operations include a leading brand, nearly 4,000 retail outlets with highly trained

baristas, a coffee vending operation, forhome coffee formats and Costa’s state-ofthe-art roastery. The company added that upon the closing of the deal, the CocaCola Company will acquire all issued and outstanding shares of Costa Limited, a wholly owned subsidiary of Whitbread. For Coca-Cola, the expected acquisition adds a scalable coffee platform with critical know-how and expertise in a fast-growing, on-trend category. Costa ranks as the leading coffee company in the United Kingdom and has a growing footprint in China, among other markets. It has a solid presence with Costa Express, which offers barista-quality coffee in a variety of on-thego locations, including gas stations, movie theatres and travel hubs. “Costa gives Coca-Cola new capabilities and expertise in coffee, and our

system can create opportunities to grow the Costa brand worldwide,” said Coca-Cola President and CEO James Quincey. Coffee is a significant and growing segment of the global beverage business. Worldwide, coffee remains a largely fragmented market, and no single company operates across all formats on a global basis. The sector is undergoing somewhat of a renaissance, with a focus on upscaling premium coffee experiences or remaking them in the comfort of consumer homes and several major acquisitions taking place last year among key manufacturers, including Nestlé and Unilever. The focus seems to be on upscaling premium coffees, exploiting the growing market for cold-brewed coffee and the sector has experienced dramatic growth in recent years.

M&A

Campbell Soup announces plans to sell its international fresh food businesses – Campbell Soup Company, has announced intentions to sell its international and fresh food businesses to focus and improve the company’s portfolio, with the proceeds used to significantly reduce debt. According to the company, it is selling its non-core businesses as part of its Boardled strategy and portfolio review to improve performance and drive shareholder value. Campbell International consists of Arnott’s and the Kelsen Group, along with the company’s manufacturing operations in Indonesia and Malaysia and its businesses in Hong Kong and Japan. Campbell Fresh includes Bolthouse Farms, Garden Fresh

USA

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Gourmet and the company’s refrigerated soup business. Fiscal 2018 net sales of these businesses totalled approximately US$2.1 billion. “Our plan will build upon our existing strengths. Our new leadership team will concentrate on significantly improving operational discipline through a rigorous management model that aligns the enterprise from strategy through execution,” added Keith. The company added that because of this more focused portfolio, Campbell is increasing its cost savings target by US$150 million. It plans to achieve these additional savings by streamlining

SEPTEMBER/OCTOBER 2018 | FOOD BUSINESS AFRICA

its organizational structure, expanding its zero-based budgeting efforts and continuing to optimize its manufacturing network. The company’s CEO Denise Brown resigned abruptly in May due after the company reported after an effort to make a turnaround failed. FOODBUSINESSAFRICA.COM


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SUPPLIER NEWS & INNOVATIONS

DuPont announces expansion plans for the R&D team with a new clean label hub facility DENMARK – DuPont Nutrition & Health

has announced it is expanding its R&D team by creating a “clean label hub” at the Brabrand, Denmark facility. According to the company, it intends to boost its project pipeline in healthy nutrition and clean label texturant offerings. The hub will feature experts with backgrounds in clean label and sustainability – two fields that often work together and serve related

purposes. It is seeking creative scientists and engineers to identify ways to convert sustainable and natural raw materials into clean label solutions that meet consumer demands for simplicity and authenticity, all without compromising taste, texture and nutritional qualities. “Clean label is about creating foods and beverages with ingredients that consumers recognize, feel good about putting into

their bodies, and that respect the Earth and its resources,” said Gerard Lynch, R&D Leader, Systems & Texturants, Emulsifiers & Sweeteners. Planned to be in place by early 2019, the clean label texturants team will have the opportunity to tackle exciting projects to provide texture and stability for multiple food applications.

SUPPLIER NEWS & INNOVATIONS

Buhler and Microsoft partner to launch digital service for optimizing food and feed processing SWITZERLAND – Swiss-based technology

company Buhler has, in partnership with Microsoft, launched MoisturePro a cloud based framework for digital services in the food and feed processing industry. Powered by Bühler Insights platform, the digital service can reduce energy consumption for industrial drying processes, thus checking on the customers’ energy costs as well as the environmental footprint of thermal processing.

“Microsoft’s technology has made it possible to accelerate time to market and has allowed us to deliver real benefits and value to our customers,” said Stuart Bashford, Digital Officer at Bühler. “For manufacturers, that means reaching new levels of productivity. With the Bühler Insights, every machine in your plant can run as if your best operator is on the job around the clock.” Buhler said the digital service can deliver

a return on investment of US$300,000, translating to an annual energy savings of US$20,000. According to Bashford, applying blockchain in the food industry could help reduce contamination and increase awareness. Bühler said its goal is to build sustainable food value chains, reduce 30% of waste and 30% of energy in the processes of their customers by 2020.

SUPPLIER NEWS & INNOVATIONS

Neogen’s one-hour listeria test kit Listeria Right Now receives AOAC approval USA – Neogen’s environmental pathogen

detection system, Listeria Right Now, has received official approval from AOAC, an internationally recognized scientific association. Validated by AOAC and NSF International, the technology allows food production and processing facilities to seek

and eliminate Listeria more quickly, which can reduce the risk of cross-contamination of food products, keeping consumers safe. The system provides results in under one hour, much faster than traditional methods, which can take up to several days. “It’s extremely gratifying to receive this approval,” said John Adent, Neogen’s

president and chief executive officer. The test-kit offers rapid tests by using a technology that targets rRNA, which is present in much greater numbers than the traditional DNA target.

SUPPLIER NEWS & INNOVATIONS

US FDA approves GEA’s aseptic technology USA – The U.S. Food and Drug Administration (FDA) has awarded GEA a letter of no objection (LONO) for its ABF 1.2 technology, an integrated blowing, filling and capping solution featuring a fully aseptic rotary blowing machine. According to GEA, that is the only system equipped with a 100% aseptic blower that is allowed to produce shelf-stable low acid (LA) beverages free from preservatives for distribution at ambient temperature in the U.S. market. The solution is based on an integrated 28

blowing, filling and capping process that runs within a 100% aseptic environment. “The FDA certification is an accolade for the ABF 1.2 technology – the world’s first fully aseptic blow-fill-cap system,” said Alessandro Bellò, Head of Blowing, Filling and Packaging applications at GEA. According to GEA, the FDA testing is considered one of the most comprehensive validation protocols available in the aseptic beverage market. Their stringent requirements ensure enhanced product safety, and their approval is highly valued even outside the U.S.

SEPTEMBER/OCTOBER 2018 | FOOD BUSINESS AFRICA

The FDA clearance confirms that GEA’s ABF 1.2 technology ensures maximum sterilization efficiency and reliability during every step of sensitive beverage bottling. GEA successfully passed the validation tests which were performed on an ABF 1.2 system installed in the U.S. – and which is now already producing and delivering shelf-stable liquid dairy products to the North-American market.

FOODBUSINESSAFRICA.COM


Event Review

FOODBUSINESSAFRICA.COM

PICTORIALS: AFMASS Southern Africa edition, Lusaka, Zambia - October 3-5, 2018

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PICTORIALS: AFMASS Southern Africa edition, Lusaka, Zambia - October 3-5, 2018

FOODBUSINESSAFRICA.COM

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We would like convey special thanks to all the companies, sponsors and attendees at the 2018 edition of:

Celebrating Africa’s most innovative food industry projects, people, products & initiatives

for making the event one of the region’s best ever networking and celebration ceremonies. SPONSORED BY:

CONFERENCES & EXHIBITIONS

POWERED BY:

www.awards.foodbusinessafrica.com FOODBUSINESSAFRICA.COM

SEPTEMBER/OCTOBER 2018 | FOOD BUSINESS AFRICA

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MILLED, CEREALS & PULSES PRODUCT OF THE YEAR

NEW PLANT OF THE YEAR CATEGORIES WINNERS COMPANY

DETAIL

DAIRY PLANT OF THE YEAR 1. Sameer Agriculture & Livestock Ltd

New dairy plant in Nakuru, Kenya

2. New KCC Ltd

Expanded dairy plant in Eldoret, Kenya

SOFT BEVERAGES PLANT OF THE YEAR 1. Coca-Cola Beverages Africa, Kenya

New beverage plant in Nairobi, Kenya

2. Fairy Bottling, Zambia

New beverage plant in Lusaka, Zambia

3. Tropikal Brands Ltd

New bverage plant in Nairobi, Kenya

ALCOHOLIC BEVERAGES PLANT OF THE YEAR 1. East African Breweries Ltd ( EABL), Kenya

New beer canning line in Nairobi,Kenya

CHILLED AND FRESH PLANT OF THE YEAR

1. Nootri Family of nutritious flours

Africa Improved Foods Ltd, Rwanda

2. Noodies Ugali Noodles with Sukuma wiki

Bidco Africa Ltd

3. Mhogo Cassava Flour

Mhogo Foods

SUGAR AND CONFECTIONERY PRODUCT OF THE YEAR 1. Dairyland Chocolart bars

Glacier Products Ltd

2. Dairyland Compound Chocolate

Glacier Products Ltd

INGREDIENTS & PACKAGING CATEGORY WINNERS COMPANY

DETAIL

NEW PRODUCT WITH MOST INNOVATIVE INGREDIENTS 1. Coca-Cola Beverages Africa, Kenya

Minute Maid Fruity Boost

2. Bio Food Products Ltd

Bio Fruit on the Bottom Yoghurt

3. Bidco Africa Ltd

Noodies Ugali Noodles with Sukuma Wiki

NEW PRODUCT WITH MOST INNOVATIVE OF PACKAGING 1. Caliber Foods Ltd

Aunty Betty’s Ready Rice

2. Squishy Drinks

Squishy Fruit Drink

3. Bio Food Products Ltd

Bio Fruit on the Bottom Yoghurt

1. Kenchic Ltd

New chicken processing plant in Thika, Kenya

2. Quality Meat Packers Ltd

New chicken nuggets factory in Nairobi, Kenya

COMPANY

1. Africa Improved Foods Ltd

New milled products plant in Kigali, Rwanda

1. East African Breweries Ltd (EABL), Kenya

Energy efficiency improvement program in Nairobi, Kenya

2 .Proctor & Allan EA Ltd

New breakfast cereals plant in Limuru, Kenya

2. Bio Foods Products Ltd

Lighter PET milk bottle introduction and used bottle return program in and energy efficiency program in Nairobi, Kenya

3. New KCC Ltd

Water, energy and waste management initiative in Dandora plant, Kenya

MILLING PLANT OF THE YEAR

COMPANY INITIATIVES OF THE YEAR WINNERS

SUSTAINABILITY INITIATIVE OF THE YEAR

SUGAR AND CONFECTIONERY PLANT OF THE YEAR 1. Wrigley’s East Africa Ltd

New sweets Factory in Athi River, Kenya

2. Glacier Products Ltd

New chocolate factory in Magana, Kenya

NEW PRODUCT OF THE YEAR CATEGORIES WINNERS

DETAIL

TRAINING/CAPACITY BUILDING INITIATIVE OF THE YEAR

COMPANY

1. Coca-Cola Beverages Africa, Kenya

Apprentice program at the factory in Nairobi, Kenya

1. BIO Yoghurt fruit on the bottom

Bio Foods Ltd

2. Delamere Fruit Yoghurt

Brookside Dairy Ltd

2. East African Breweries Ltd (EABL), Kenya

Training program at the factory in Nairobi, Kenya

3. BIO Barista Milk

Bio Foods Ltd

3. Fairy Bottling, Zambia

Training program at the factory in Lusaka, Zambia

CATEGORY OF PRODUCT DAIRY PRODUCT OF THE YEAR

SOFT BEVERAGES PRODUCT OF THE YEAR

SUPPLIER PROJECT/INITIATIVES OF THE YEAR WINNERS

1. Minute Maid Fruity Boost with Milk and Nutrients

Coca-Cola Beverages Africa, Kenya

COMPANY

2. Minute Maid Juice with Fruit Bits (Orange & Mango)

Coca-Cola Beverages Africa, Kenya

SUPPLIER PROJECT OF THE YEAR

3. Squishy fruit drink

Squishy Drinks

HOT BEVERAGES PRODUCT OF THE YEAR 1. Minute Maid Fuze Tea

Coca-Cola Beverages Africa, Kenya

2. Attitude teas

Gold Crown Beverages Ltd

ALCOHOLIC BEVERAGES PRODUCT OF THE YEAR 1. Orijin AHS (Spirit)

East African Breweries Ltd (EABL), Kenya

2. Zinga Beer

East African Breweries Ltd (EABL), Kenya

3. Tusker Cider

East African Breweries Ltd (EABL), Kenya

CHILLED AND FRESH PRODUCT OF THE YEAR 1. Aunty Betty’s Ready Meal Rice

Caliber Foods Ltd

2. QMP Chicken Nuggets

Quality Meat Packers Ltd

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SEPTEMBER/OCTOBER 2018 | FOOD BUSINESS AFRICA

DETAIL

1. Capel Food Ingredients Ltd

New flavors factory in Nairobi, Kenya

2. Afribon Ltd

New flavors factory in Kiambu, Kenya

SUPPLIER TRAINING INITIATIVE OF THE YEAR 1. Buhler Ltd

Millers training program in Ethiopia

2. Ingredion Holding LLC

University students training program in Kenya and Uganda

RESEARCH & DEVELOPMENT (R&D) TEAM OF THE YEAR WINNERS COMPANY

DETAIL

RESEARCH & DEVELOPMENT TEAM OF THE YEAR 1. Coca-Cola Beverages Africa, Kenya 2. East African Breweries Ltd (EABL), Kenya 3. Bio Food Products Ltd FOODBUSINESSAFRICA.COM


AWARDS 2018

Industry leaders feted at industry excellence awards for their leadership, impact on the growth of the organisations they work in and the greater industry, seven individuals were given the prestigious Awards of appreciation. They included Davis Heath, the Manufacturing Director of Brookside Dairy Ltd, Gaudence Mukolwe, the former Brewing Manager at Tanzania Breweries Ltd, Grace Ngari, who is the MD of Syncom Consultancy and former Regional QA Manager at Nestle EAR, Professor Mbugua, who was a lecturer at the Food Science Department at the University of Nairobi. Other winners were Caroline Outa, the Head of KEBS Certification, Lawrence Lusiola, a pioneer in the training and

Kevin Ashley, founder and former CEO Java House Group (Java Restaurants, Planet Yoghurt, 360 Degrees Pizza and Mercury Lounge), is awarded his trophy by Jeremy Awori, the CEO of Barclays Bank of Kenya Ltd. KENYA - Some of the most important founders, managers, academicians, government and NGO shapers and other change makers in Africa’s food, beverage, milling and hospitality industry were feted at the Africa Food Industry Excellence Awards ceremony that was held on September 14, 2018 in Nairobi, Kenya. This Award, which is similar to a Lifetime Achievement Award, and is bestowed upon individuals who have through their dedication, focus and drive made the biggest impact on the food industry in Africa. “These Africa Food Industry Champion Award winners have one thing in common: deep passion that has driven them to be the very best in their industry sectors and in the region. The companies they founded or manage have some of the most noticeable impact on the economy and the food industry. They are leaders of the pack in many ways and they keep shining the light into the future of the food industry in Africa,” says Francis Juma, the team leader FOODBUSINESSAFRICA.COM

at FoodWorld Media, the organisers of the Awards. At this year’s ceremony, Kevin Ashley, the founder of Java House Group, Khalid Mohammed, the founder and Group Chairman of Trade Kings Group, Dr. Carl Irwin, the former co-CEO of Zambeef Products PLC, Mustafa Awel, the MD of Mullege PLC and Andrew Rugasira, the founder of Good African Coffee were feted with the Award. Others were Jane Karuku, the MD of Kenya Breweries Ltd, Lucy Karuga, the founder of Eldoville Dairy, Dipam Shah, the CEO of Glacier Products Ltd, Dr. Mohammed el Sahili, the CEO of Fairy Botling Ltd, OP Narang, the former Resident Director of Agrochemical and Food Company Ltd and Gavin Bell, the founder of Kengeles Restaurants. In the newly introduced Most Influential Food Industry Leader category, which celebrates individuals who have over the years offered leadership as managers in the food industry, with significant impact

“THESE INDIVIDUALS AND THE COMPANIES THEY FOUNDED OR MANAGE HAVE SOME OF THE MOST NOTICEABLE IMPACT ON THE ECONOMY AND THE FOOD INDUSTRY IN AFRICA. THEY ARE LEADERS OF THE PACK IN MANY WAYS AND THEY KEEP SHINING THE LIGHT INTO THE FUTURE OF THE FOOD INDUSTRY IN AFRICA.” certification systems including quality and food safety systems in the region and previously working at SGS Kenya and Dr. Jan Low, the Principal Researcher at the International Potato Center in Nairobi, Kenya.

Young entrepreneurs receive accolades

Also feted during the awards ceremony were young entrepreneurs under 40 who have made their make as founders of companies in the region, in the Young Entrepreneur of the Year award. The winners of the this year included included Elizabeth Gikebe, the founder of Mhogo Foods, Martin Ssali of Smart Foods Uganda, Senai Wolderufael of Feed Green Exports in Ethiopia and Eric Muthomi, the founder of Stawi Foods Ltd.

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AWARDS 2018

CCBA, Bio Food, EABL and Caliber Foods take top new product innovations accolades KENYA - Coca-Cola Beverages Africa (CCBA), Bio Food Products, EABL and Caliber Foods were the big winners in the new product categories at the Africa Food Industry Excellence Awards ceremony that took place in Nairobi, Kenya in September 2018. CCBA Kenya, won the soft beverages product of the year award for its Minute Maid Fruity Boost with Milk and Nutrients, which is a blend of fruit juice, milk powder plus vitamins and minerals, a first in the region. The new product also grabbed the most outstanding New Product with the most Innovative use of an Ingredient, for its unique blend of fruit juice, milk powder, vitamins and minerals; a first in the region. CCBA also took home the number two position for its Minute Maid with Fruit Bits, that incorporates fruit pieces into its mango and orange juice products, thereby improving the fibre content and texture to the consumer. Squishy juice drink, made by Squishy Drinks, also made it to the final list of the most outstanding soft beverage products in the region. The product stood out for its unique packaging and ease of use by its target consumers, who are largely young kids in the family.

Bio Food rules the dairy categories

In the dairy category, Bio Food Products took number one and three positions for its Bio Fruit Yoghurt on the Bottom and its Bio Barista Milk, which is targeted at the foodservice and restaurants trade. Brookside Dairy took the second position in the dairy category for its re-launched version of Delamere Fruit Yoghurt in a cup, which according to the judges, stood out for its incorporation of new fruit mix varieties in the market (lemon biscuit, pear caramel and choco chips) and convenient packaging on the go. In the alcoholic beverages category, EABL took home all the awards for its new beer and spirits brands. The company’s Orijin AHS Spirit, Zinga spirit infused beer and Tusker Cider grabbed the three positions available, showing the brewer’s focus on innovations is paying off. In chilled and fresh product category, Aunty Bettys ready meal rice topped the chart emerging number one to provide consumers with a ready meal in a microwavable packaging that is easy to dispose in the environment. QMP chicken 36

David Kamau, the CEO of Proctor & Allan poses with the team from Caliber Foods, which took the top spot in the New Product with the Most Outstanding Package category.

nuggets scooped the second position in this category to a thunderous applause by the guests gathered at the event.

from glacier were the winners.

Nootri flours win for nutrition and impact

CCBA’s Minute Maid Fruity Boost with Milk and Nutrients, Bio Food Products’ Bio Yoghurt Fruit on the Bottom and Bidco Africa’s Noodies Ugali Noodles with Sukuma Wiki emerged the best in the novel way of ingredient application at the Awards, taking positions one, two and three respectively. Bio Yoghurt Fruit on the Bottom, which also came first in the Dairy Product of the Year category, is the first dairy product in the region to incorporate real fruit filled separately from the yoghurt white mass, allowing the consumer the indulgence to mix for themselves at the point of consumption. Coming in at position three, Bidco’s Noodies Ugali Noodles with Sukuma Wiki stood out for the utilization of a common staple sukuma wiki (kales), in addition to the usage of maize flour in addition to the common wheat flour. This category provides a platform to celebrate companies that have uniquely utilized ingredients in their new product applications, taking into account the ingredient’s nutrition and taste profile.

It was a big win for Nootri family of nutritious flours from Africa Improved Foods Rwanda Ltd in the milled and cereals category. The team of 10 who travelled to Nairobi from their ultra modern plant in Kigali to receive their award could not hide their excitement when their product was announced the winner. Noodies ugali noodles with Sukuma wiki was a delightful win for Bidco Africa Ltd team who took the number two position for their ingenious incorporation of the common staple food sukuma wiki into noodles. Mhogo cassava flour won the judges heart for innovation that has placed cassava on the shelves in Kenya and has received positive consumer acceptance in the country and abroad. Glacier Products Ltd had a double win and double celebration as they were feted with two trophies for winning the number one and two positions in the sugar & confectionery category amid loud cheers from the guests. The Dairyland Compound Chocolate and Dairyland Chocolart bars

SEPTEMBER/OCTOBER 2018 | FOOD BUSINESS AFRICA

Fruity Boost shines for new ingredient application

FOODBUSINESSAFRICA.COM


Packaging that stands out feted

Calibre Foods, Squishy Drinks and Bio Foods Ltd were the winners of the most sought after New Product with the Most Innovative use of Packaging. Aunty Betty’s Ready Meal Rice, a product from Calibre Foods, won the most innovative packaging award for its laminated cellulose biodegradable pack, which captures the sustainability concept as compared to other plastic packaging products in the category. The free-standing package, with a transparent bottom and

perforated opening, makes it possible to heat the food in a pan, as well as microwaving while the rice is still in the package. The product also won in the Chilled and Fresh product of the year award, for its unique value proposition and convenience to the user, who is faced with time constraints these days. Squishy juice drink, made by Squishy Drinks, was came in at number two in the most innovative packaging category, as it stood out for its flexible and convenient stand-up pouches. The pouches, made from

layers of aluminium and plastic, make it possible to enhance quality and safety of the drinks as they can stand up in a shelf, can be hooked or pegged with a mini straw, with its target being young kids. Bio Foods Ltd took number three in this category with its Bio Fruit Yoghurt on the Bottom, for its unique application of transparent packaging of the 150ml cup that appeals to the target consumers as they can to see the product, enhancing transparency in the dairy category.

AWARDS 2018

Most outstanding new investments take top spot at Awards ceremony KENYA - The food industry in sub-Saharan

Africa is on the upswing in terms of new investments in new plants and expansions, as evidenced in the just concluded Africa Food Industry Excellence Awards, held in Nairobi, Kenya. Courtesy of the entries received in the highly prestigious and competitive Awards, the combined new investments in new plants that were submitted for the New Plant of the Year category in the region was well over US$350 million in the last four years or so. In a category where the uniqueness of the plant in terms of design and technology and efficiencies were the major judging factors, the entries revealed that a number of the new investments match world class facilities, debunking the myth that the food industry in Africa is lagging behind. Other critical aspects assessed were sustainability, food and personnel safety and community and social benefits of the new facilities. “The entries received at this year’s Awards are a true reflection of what is happening in the food industry in Africa. Investments are increasing, and with it the quality of these investments are going

FOODBUSINESSAFRICA.COM

up. The judges were impressed by the way these new investments have adopted the latest technology and their focus on efficient, sustainable and safe operations,” said Francis Juma, the team leader at FoodWorld Media, the organisers of the Awards ceremony. On the supplier projects front Capel Ingredient and Afribon were first and second for their respective flavor factories.

Soft Beverages Plant of the Year

Coca Cola Beverages Africa (CCBA) emerged the best facility in this category for its new US$30 million hot-fill juice beverages in Nairobi, Kenya. The plant, located in CCBA Kenya’s Embakasi site, is an ultra-modern establishment with installation of the latest technology. It has a hot-fill bottling and packaging facility, materials warehouse, goods warehouse, a processing room for dairy and one for juice, utilities space and raw materials store. Coming in second was Fairy Bottling Ltd, with its new beverages plant in Lusaka, Zambia. The US$50 million facility is set on a 70,000 square meter area and

IN NUMBERS

US$350M TOTAL VALUE OF NEW PLANTS ENTERED FOR THE PLANT OF THE YEAR AWARD CATEGORY encompasses a state-of-the-art high-speed technology bottling equipment, two PET lines, one canning line, in-house preform and closures production, in-house stretch and shrink film production, in-house carbon dioxide production, fully automated syrup preparation plant and in-house recycling plant for PET and plastic waste material among other features. Tropikal Brands from Kenya came in a decent third. The new plant meets all the requirements of a food processing facility. The plant can package 5,000 bottles per hour of fruit juice. Material used are all

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OEEs have improved to 80% on some SKUs (especially the sleek can), with a flight plan to deliver the same efficiencies across all SKUs.

Dairy Plant of the Year

Africa Improved Foods's new nutritious foods plant based at the Special Economic Zone in Kigali, Rwanda, was one of the most outstanding plants at this year's Awards, scooping the Milling Plant of the Year Award.

made of stainless steel that is ideal for cleaning. It comprises of an automatic pasteurization and filling units.

Milling Plant of the Year

This category was a close affair between Africa Improved Foods (AIF) Rwanda Ltd and Proctor & Allan, Kenya with AIF claiming the top accolade. The US$60 million AIF new milled products plant in Kigali, designed to produce 45,000 tonnes per annum stood out in its design, technology, safety and community and social benefits. The silo infrastructure and cleaning is from Cimbria, Denmark and the process infrastructure is from Buhler, Switzerland. The Proctor & Allan plant, commissioned in 2016, produces cornflakes, white oats, quick porridge oats, oat flakes, baby porridge, Nutri-rich porridge, cake mix and porridge. The plant with an investment value of US$20 million, has an installed capacity of 40 million tonnes of products per annum. The equipment and systems were sourced from Buhler and Bosch.

Sugar and Confectionery Plant of the Year

Wrigley’s East Africa’s plant wriggled out Glacier Products to scoop the top honors with their ultra-modern new factory at Athi River Kenya. Wrigley’s facility, commissioned in January 2018, sits on a 20-acre space and cost the investors US$70 million, the 38

highest in investment value across all plants of the year applications. The factory has been built to United States Green Building’s Council Leadership in Energy and Efficiency Design (LEED) Gold certification status and apart from the plant itself, includes a reception area, canteen, recreation room, meeting rooms, open plan office space and new changing rooms. Glacier Products on its part scored highly for being the only local chocolate manufacturing plant, earning it the second slot with their plant is situated in Magana Kikuyu, and registered under Glacier Products Ltd. The equipment were obtained from Italy from a renowned chocolate making equipment manufacturer, who also installed and commissioned them. Currently the Plant has a capacity of producing 150 kgs of chocolates per hour, based on market demand.

Alcoholic Beverages Plant of the Year

This was really a one-horse race which saw EABL the only firm making the final cut with its new beer canning line in Nairobi, Kenya. The US$43 million line was supplied by Krones of Germany and commissioned in 2014 with a capability of producing 550,000 hectoliters per annum at a nominal rated capacity of 36,000 cans per hour. The Canning line was commissioned at an Overall Equipment Efficiency (OEE) of 60% and a Mechanical Efficiency of 90%.

SEPTEMBER/OCTOBER 2018 | FOOD BUSINESS AFRICA

Sameer Agriculture & Livestock Ltd (SALL)’s new dairy plant in Nakuru, Kenya and New KCC Ltd expanded dairy plant in Eldoret, Kenya made it to the final list. SALL’s plant emerged winners through their US$50 million facility that occupies a total plant area of 200,000 square meters with a capacity of 300,000 bottles per hour (500ml). The robust facility employs state of the art aseptic technology which is a flashheating process, that retains more nutrients and allows the product to remain fresh for a longer period without any refrigeration, given that 65% of lower middle class Kenyan homes have no refrigeration. The New KCC plant expanded at a cost of US$5 million, with a capacity of processing 320,000 liters of milk per day, was aimed at upgrading the processing capacity to cope with increase in demand for long-life milk products and to create market outlet for dairy farmers, job creation, linkages to financial institutions and other service providers through extension services.

Chilled and Fresh Plant of the Year

Kenchic Ltd’s chicken processing new plant in Thika, Kenya, ranked first followed by Quality Meat Packers (QMP), which entered their new fish and chicken nuggets factory in Nairobi, but equally process beef and lamb. The Kenchic Thika Processing Plant has the capacity to process 6,000 birds per hour as well as to supply the market with 60 tonnes of further processed products e.g. sausages and cold cuts per week. The firm invested US$3.5 million in this ultramodern facility that scored very highly on bio-safety protocols and stands out as the most advanced poultry processing plant in sub saharan Africa (excluding South Africa), hence elevating the Kenyan poultry production to global standards. The QMP new chicken facility is equally set up with international standards to focus on exports. The facility meets the norms required in the international market for export. The Baadan Linco machines follow the European standards, with capacity of 25,000 birds per shift with line speed of 3000 birds per hour. Separate to this, about 20 metric tonnes of chilled meat can be handled alongside for dispatch. FOODBUSINESSAFRICA.COM


AWARDS 2019

Rwanda to host the 2019 edition of the Awards ceremony

RWANDA – The 2019 edition of the Africa Food Industry Excellence Awards ceremony will be held in Kigali, Rwanda on July 12, 2019, at a venue to be announced later. The Awards ceremony, which is Africa’s most prestigious food industry awards, celebrate some of the most outstanding people, new products and company initiatives in the food, beverage and milling industry in Africa. Preceding the Awards ceremony, the organisers of the Awards, FoodWorld Media, have also organized a two-day AFMASS FoodTech Conference to be held in Kigali. The technical

conference is aimed at building the processing, packaging and food safety capacities of the food manufacturing, retail and foodservice industry in Rwanda and the Great Lakes region of Africa, including Uganda, Burundi and Eastern DRC, say the organisers. Now into its third year, the Awards ceremony attracted the who-is-who in the food manufacturing, retail and foodservice industry in Africa, with over 450 people attending the event, which took place in Nairobi this September. The Ministry of Trade, Industry and Co-operatives’ Acting Director of Agroprocessing, Mr. Simon Atebe, was the Chief Guest supported by the Acting Managing Director of the Kenya Bureau of Standards (KEBS), Mr. Benard Nguyo. Other notable attendees included the Barclays Kenya CEO, Mr. Jeremy Awori, several Managing Directors and CEOs from the industry, government agencies, supplier companies and other stakeholders. This year’s Awards had a larger and expanded category profile, with new categories (new plants, new products, sustainability and training initiatives) added on top of the individual award categories from the 2017 edition of the Awards. The Awards nomination process open on November 1, 2018. Individuals and companies are encouraged to enter their applications for next year’s Awards process. The categories to be vied for in the 2019 edition will be communicated shortly.

AWARDS 2018

CCBA, EABL, Fairy Bottling, Bio Foods and New KCC top sustainability and training KENYA - Coca-Cola Beverages Africa (CCBA), East African Breweries Limited (EABL) and Fairy Bottling Ltd took home the most prestigious awards for the Training Initiative of the year awards at the recently concluded Africa’s Food Industry Excellence Awards. Meanwhile, East African Breweries Ltd (EABL), Bio Food Products and New KCC took first, second and third positions respectively from their unique sustainability initiatives. CCBA took the top slot for its technical apprentice program that has been running for about 3 years, and which trains technicians in mechatronics with the stated aim of raising the standards of engineering training in Kenya. The initiative consists of a 2 years' ‘apprentice’ program at a “master” technician level in which Diploma holders from TVET institutions are admitted. The initiative has created employment to over 200 technicians as well as gave advanced experience to trainers in the bottling industry. EABL, the Kenya-based also took home a training initiative award for its training FOODBUSINESSAFRICA.COM

program of the departmental energy champions as Certified Energy Managers. Fairy Bottling Ltd from Zambia took the third position for its water sustainability training initiative award for co-hosting the Alliance for Water Stewardship Masterclass training where the company is spearheading the implementation of international standards on water stewardship in Zambia.

Suppliers shine in training too

Buhler Limited took top honours in the Supplier Training Initiative of the Year for its millers’ training program in Ethiopia, an ongoing initiative that focuses on improving the application and adoption of present day milling technology in the country. Ingredion Holding LLC came number two in the same category for its on-going program that targets university students who receive training on food starch and hydrocolloid technologies and also offers information on careers and food industry entrepreneurship.

Sustainability wins

EABL won the Sustainability Initiative of the Year award for its Energy Efficiency

Improvement Program at its Ruaraka brewery in Nairobi, Kenya, which has also seen them named the best in energy management in the Diageo Group for breweries using returnable bottles. The three-pronged Bio Food Products Sustainability Program ranked second after scoring highly on the PET reduction and recycling pillar, in which they have managed to reduce their PET bottle weight by 30% and are now recycling 95% of their industrial waste in partnership with Taka Taka Solutions. Energy efficiency was the other pillar. New KCC initiative, code named, Resource Efficient and Sustainable Cleaner Production, has enabled the government owned milk processor to make substantial strides in cost reduction through reduced energy and water wastage. The initiative also has a take back program for their plastic packaging materials which they shred and sell to recycling entities. With sustainability gaining more traction in the industry, this Award was the first effort to highlight how companies have incorporated sustainability in their local operations in the region.

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Safari Park Hotel, Nairobi, Kenya September 14, 2018

Dr. Mohammed el Sahili (CEO, Fairy Bottling), Arthur Peywa (New KCC) and (CEO, Bio Food Products discuss their sustainability projects

Delegates keenly listening to proceedings at the panel discussions that preceeded the Awards ceremony

New products innovators panel discussion involving Prosoya Kenya, SEPTEMBER/OCTOBER 2018 | FOOD BUSINESS AFRICA Caliber Foods, Gold Crown Beverages and EABL.

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Investing in the food industry panel discussion brought together Glacier Products, QMP, Afribon and Africa Improved foods

Delegates follow proceedings at panel discussions

Proctor & Allan MD, David Kamau participating at panesl discusion FOODBUSINESSAFRICA.COM

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Exhibition visitors have a discussion with staff from Sendy Logistics that was the Platinum sponsor

Promaco Ltd’s staff attend to visitors at their booth at the Expo Hall. Promaco was one of the sponsors of the Awards

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Kerry Ingredients booth at the Expo Hall was buzzing all day and night. Kerry sponsored the Beverage Product of the Year Awards

Priscilla Muhiu, the Marketing Manager for Sendy delivers a speech at the start of the Awards ceremony.

Brookside Dairy's team receives their trophy from Lau Larsen, CEO of Promaco

The Buhler team of Abdia, Sang’ and Solomon Mwangi at the Awards. The company sponsored the Milling Plant of the Year Award.

The team from Coca-Cola Beverages Africa receives the Soft SEPTEMBER/OCTOBER FOOD BUSINESS Beverage Product of the 2018 Year|awards from KerryAFRICA Ingredients

Acting KEBS CEO Benard Nguyo hands the team from EABL their trophy in one of the categories at the Awards FOODBUSINESSAFRICA.COM


The Awards ceremony attracted more than 450 visitors from Africa and other regions.

The team from Coca-Cola Beverages Africa wait eagerly to know if their nominations won

Kevin Ashley, the founder and former CEO of Java House Group, with his guests

Bio Food Products team chat as they wait for their nominations to be called out. FOODBUSINESSAFRICA.COM

BD Shah (right) and the Bidco Africa team

The team from Africa Improved Foods Rwanda wait patiently as the Awards ceremony proceeds

Kenchic Ltd team led by Philip Carolan enjoy some drinks during the Awards ceremony SEPTEMBER/OCTOBER 2018 | FOOD BUSINESS AFRICA

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Proctor & Allan receives the Milling Plant of the Year finalist award from Buhler

Ingredion Holding LLC receives the Supplier Training Initiative of the year finalist award

Mhogo Foods CEO Elizabeth Gikebe receives the Milled/Cereal Product of the year finalist award

Quality Meat Packers (QMP) team receives the Chilled & Fresh Plant of the Year finalist award

Glacier Products team receives the Sugar & Confectionery Plant of the Year winner award

Gold Crown Beverages receives the Soft Beverage Product of the year finalist award

Fairy Bottling Zambia receives the Sustainability 46 SEPTEMBER/OCTOBER 2018 | FOOD BUSINESS AFRICA Initiative of the year finalist award

Buhler team receives the Training Initiative of the Year Award from Mwenda Kageenu of KWAL. FOODBUSINESSAFRICA.COM


EABL team receives the coveted Alcoholic Beverage Plant of the Year winner Award

Kenchic team receives the Chilled & Fresh Plant of the Year winner award

Coca-cola team recieves Training Initiative award

Brookside team receives the coveted Dairy product of the Year finalist Award

Africa Improved Foods team receives the coveted Milling Plant of the Year winner Award

Bidcoro team receives the milled product of the year award for their innovative product - noodies.

The team from Sameer Agriculture & Livestock receives the Dairy Plant of the Year Award FOODBUSINESSAFRICA.COM

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Dr. Mohammed El Sahili receives the Africa Food Industry ChampionAward

Dipam Shah of Glacier Products receives the Africa Food Industry ChampionAward

Gavin Bell of Kengeles receives the Africa Food Industry ChampionAward

Grace Ngari receives the Most Influential Industry Leader Award

Professor Mbugua receives the Most Influential Industry Leader Award

O.P. Narang receives the Africa Food Industry Champion Award

Some entertainment before the Awards ceremony started

EABL Manager, receives the Africa Food Industry Champion Award on behalf of KBL CEO

Elizabeth Gikebe of Mhogo Foods receives the Young Entrepreneur of the Year Award 48

Carol Outa receives the Most Influential Industry Leader Award from her boss

Lawrence Lusiola receives the Most Influential Industry Leader Award

Carol receives the Most Influential Industry Leader Award on behalf of David Heath

Erick Muthomi of Stawi Foods receives the Young Entrepreneur of the Year Award

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C E R E A L S | P U L S E S | T U B E R S | O I L S E E D S | C O F F E E | M I L L I N G | PA S TA | B A K I N G | S N A C K S | F E E D S

WHEAT MILLING IN KENYA: INVESTMENTS UP AS KENYA SEEKS TO MEET RISING DEMAND

All the wheat flour millers in Kenya have either invested in new plants in the last 3-5 years or are at advanced stages of investing in the same,” says Solomon Mwangi, a leading consultant for milling technologies provider at Buhler in Kenya. “Some have invested in these new plants more than once during this very short time,” he adds. Solomon, who has witnessed the transformation of the wheat milling sector in Kenya for more than a decade, says that the industry is at the most critical phase of its development, and that more is still expected from the sector, as it changes to meet rising consumer demand for wheat flour in a population that has fallen in love with the consumption of wheat-based products in the last 15 years or so. Kenya does not appear among the top producers of wheat in the world, but it has since 2000 moved up the chain in the league of the largest wheat products consumers, standing at No. 40 presently, and a respectable No. 9 in Africa, behind such mammoth consumers like Egypt (20.1 FOODBUSINESSAFRICA.COM

million metric tonnes, MMT), Morocco and Algeria (both consume 10.6 MMT). Others in the league include Ethiopia (6.6 MMT), Nigeria (5 MMT), South Africa (3.38 MMT), Sudan (3 MMT), Tunisia (3 MMT), and Kenya (2.42 MMT). In the Eastern Africa region, the country stands shoulders above other countries like Tanzania (1.225 MMT) and Uganda (0.45 MMT), according to Index Mundi.

Changing consumers drive wheat demand

Kenya has recorded a meteoric rise in consumption of wheat products. The country consumed 852,000 tonnes of wheat in 2005, rising to 2.41 million tonnes in 2018, arise of nearly 200% within 13 years. The USDA projects that in 2018/19, the country will consume 2.57 MMT of wheat. The growth of wheat products consumption in the country has been faster than the common staple maize by a significant margin, while the value of the commercially processed maize is lower

than that of wheat in Kenya. According to a report by Report Buyer in 2013, the Kenyan wheat flour market was expected to reach US$1.15 billion per annum by 2020 at a compounded annual growth rate (CAGR) of 9.2%, accounting for 47.2% of the market by 2020, from US$738.1 million in 2015. In comparison, the commercial maize flour market was expected to increase from US$315.8 million in 2015 to US$444 million by 2020 at a CAGR of 7.1%. The US Department of Agriculture contends that wheat consumption in Kenya continues to increase due to changing dietary patterns and an expanding and robust food service sector. Kenya has not only seen the rise in numbers but also the entry of several big chain food service majors in the recent past, including KFC, Pizza Hut, Subway, Simbisa Brands’ Galitos and more. The retail environment, despite some recent setbacks, has also grown extensively in the last 15 years, with Kenya recording one of the highest formal retail rates in sub-Saharan Africa. Solomon adds that economic growth in

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Wheat Production 105 Wheat Consumption 911

230 863

300 856

196 815

197 671

225 852

300 898

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Wheat Consumption & Production in Kenya 2000-2018 - 1000 MT 2 500

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Wheat Consumption

Source: USDA

Kenya and the region, coupled with rising urbanization of 4.23% a year in Kenya have boosted the consumption of not only wheat flour but also bread and snacks made from wheat flour. From a product that many Kenyan consumers who grew up before the 2000s used to be a special meal taken only during important occasions, chapati, a local variant of the Indian-origin delicacy, has become a common food item on the plates of Kenyan families. The USDA says that a growing preference for wheat products is evident across the income groups in both rural and urban area and manifests itself in the increases in both commercial and homebaking. “The proliferation of international pasta, confectionery, and breakfast cereals brands in the Kenyan market also points to the new dietary patterns. A limited amount of wheat is also used in the manufacture of livestock feeds,” the agency’s report in early 2018 explains. An increasing demand for bread and other baked goods like cakes, cookies, biscuits and other baked snacks has added to the rise in wheat products consumption.

Investments in new plants rise

Kenya based wheat millers have been on an investment drive in the last 3-5 years to take advantage of the increased interest in wheat based products. The USDA reveals that about one million metric tonnes of new private investments in the sector have happened in the last few years. Mombasa based Grain Industries 50

Ltd entered the fray making a significant investment in a wheat milling plant in 2017, plunging head fast into the sector. Pembe Flour Mills, Kitui Flour Mills and Mombasa Maize Millers have also recently added more capacity to their mills, with Mombasa Maize Millers opening its expanded plant in Kisumu, Kenya in the western region this year. The company has also enhanced milling capacity in Mombasa and Nairobi. Alpha Grain Millers has also recently opened a new mill at its Athi River factory, expanding its mill to meet rising consumer demand. Listed human and animal nutrition miller Unga is set to open a new wheat milling plant in Eldoret in the Rift Valley region, adding to its current plant in the same location to serve the western Kenya market and that in Uganda and the Great Lakes region, having closed its Uganda plant in the last year. Further, breakfast cereals major Proctor & Allan last year opened a new plant near Nairobi that has extra capacity and will enable it produce more diversified products. Other players who have also recently invested include Capwell Industries which has just opened its new wheat plant, adding to its Soko maize meal brands. Bakex Millers, also based in the industrial town of Thika as Capwell Industries has invested in two milling plants in the last 5 years. McNeel Millers, part of the Kenblest Group, has also invested to boost the capacity of their wheat milling plant. Uzuri Foods, Baraka Millers and Golden Flour

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512 1350

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Mills have been busy adding more capacity to meet rising demand. Maisha Flour Mills, located in Kiganjo, Central Kenya also increased its capacity and upgraded to the technology recently. In western Kenya, United Millers has also installed a new wheat mill as well. New entrants in the sector, including Jamii Milling, located near Eldoret town, is also investing in the process of in a wheat mill to add to its maize meal plant. Solomon explains that the rise in investments are an indication of the confidence the millers have in the rising demand in the consumption of wheat flour and related products. He says that the bulk of the new mills have been installed with the need to meet rising consumer demand in the country and also to adopt the mills to new, more efficient technologies in a market that is increasingly becoming competitive, reducing costs of energy and enhancing final product quality. “The current technologies that we avail to millers enable the investors to have the benefit of the new mill pay for itself. It is a nobrainer, considering that with the increased competition in the market, millers are looking for ways to produce the best quality flour at minimal cost,” he says. According to Buhler, the new milling technologies allow the miller to diversify its market potential, including the possibility of availing noodle and pasta flour from basic flour. Bakex Millers, a pioneer wheat miller in Kenya has for the first time began the production of wholemeal flour using a regular meal, expanding the scope of its investment and product variety. Further, advantages accrue in the utilization of waste streams like bran to the advantage of the miller. Breakfast snacks and cereals can also be made from wheat and maize products extruded allowing modern flavours for the young generation. Related to the wheat value addition, in the maize value chain, opportunities of adding value to raw products, for example, clean maize germ/ bran can be extruded to yield a product of high monetary and nutrition value with long shelf life. The investments in the new technologies have also taken a food safety angle, with Buhler noting that they have introduced optical sorting technology in local mills, enabling the millers to ensure their products are aflatoxin free, a big boost to population which is faced with cancer diseases which could come from aflatoxin contamination. As the investments in new milling FOODBUSINESSAFRICA.COM

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technologies increase in Kenya, one noticeable area that millers have also invested a lot of money on has been in the grain storage and handling facilities. Storage silos have become a common sight in the majority of the mills, adding a vital component to the industry that has been missing for a long time: quality storage. Solomon notes that with the right storage and handling infrastructure, the millers have reduced the high cost of handling that has been prevalent in the sector while at the same time improving the quality of the grain. They are also able to hold adequate quantities of grain to meet the market requirements while taking advantage of bulk importation of grain and better prices, where possible.

Your needs – Our Solutions

Production challenges, export beset sector

Rising wheat products consumption aside, Kenya is forecast to continue to rely vastly on imports to meet its demand, which will continue to grow in the short to medium term, according to the USDA. The bulk of the imports are from Russia, Argentina, Canada, Latvia, Lithuania, Germany, Poland, and Australia. The country has seen local production fall to about 250,000 tonnes per annum in the last five years, due to unstable weather conditions, widespread use of recycled seed by farmers, and the prevalence of the wheat stem rust (Ug99) disease, notes the USDA. Wheat farming in the country will also be constrained by land subdivision and shifts to other more competitive crops such as barley, horticulture, dairy, and sorghum. With opportunities for wheat flour exports from Kenya minimal due to the limited cross-border trade with the neighboring countries, Kenyan millers will have to find new ways to remain efficient, focus on distribution and innovation to survive to take advantage of these new investments. Concerted efforts by millers to export wheat flour into the region continue to face barriers, says Hiten Shah, the Managing Director of Bakex Millers, which despite meeting customer’s quality requirements had to stop exporting the flour some time back due to new barriers created by the Ugandan government. Kenya and Tanzania are also in the middle of a trade war on wheat products that has affected the entry of wheat products from either country into the other. Solomon argues that the new investments in wheat milling will spur a new wave of investments in related and downstream areas, including in maize milling, animal feed processing and the bakery sector to take advantage of the new technologies and market opportunities FOODBUSINESSAFRICA.COM

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IMPORTS

Egypt wheat imports forecast higher in 2018-19 despite strong local production EGYPT – Egypt’s wheat imports are projected to increase from 12.3 million tonnes to 12.5 million metric tonnes (MMT) in the year 2018/19 despite strong local production forecasts, according to USDA’s Global Agricultural Information (GAIN) September report. Wheat consumption in 2018-19 is forecast at 20.1 million tonnes by the USDA, up 1.5% from the 2017-18 estimate of 19.8 million tonnes due to a 1.6% increase in food, seed and industrial use consumption as well as population growth of about 2.5%. Egypt is traditionally the largest importer of wheat, as its per capita consumption of bread products ranks among the highest in the world. To sustain its bread subsidy program, the government

announced the purchase of 3.15 MMT of domestically produced wheat. Egypt’s largest wheat purchaser, General Authority for Supply Commodities, an agency of the government issued 28 import tenders for 6.64.MMT of wheat in the year 2017/18 compared to 5.85 MMT the previous year. The largest foreign suppliers to Egypt included Russia, Romania, Ukraine, France. The USDA estimates 2018-19 corn imports at 9.5 MMT, up 1% from the previous year. Rice production is expected to fall significantly in 2018-19 to 2.8 MMT, a downward revision from an earlier figure of 3.3 million tonnes due to a decrease in planted area. 2018-19 rice imports are expected to be significantly higher at 300,000 tonnes compared to 50,000 tonnes in 2017-18.

M&A

US seed firm partners to form sorghum and sunflower joint venture deal SOUTH AFRICA – The US based propriety

seed company S&W Seed Co. and AGT Foods Africa Pty Ltd have partnered to form a new joint venture to deal with seed products such as sorghum and sunflower. The new company registered in South Africa under the name of SeedVision SA will produce and commercialize seed products in Africa, and will be 50.1% owned by S&W and 49.9% owned by AGT Foods Africa. “We are pleased to partner with AGT to expand the availability of our sorghum and sunflower products into the African

market. AGT is a large international provider of food ingredients throughout the world and the addition of sorghum and sunflower expands their already large menu of staple foods and food ingredients. Africa represents a large market and we look forward to a successful collaboration with AGT to develop this critically important market for these important products,” said Mark Wong, chairman and CEO of S&W. AGT Foods Africa has agreed to utilize its production resources in South Africa, Zambia and Tanzania, and its seed cleaning and warehousing facilities in South Africa.

S&W has a portfolio of hybrid sorghum and hybrid sunflower developed to bring varieties with attributes such as high yield, tolerances to extreme weather conditions (such as drought), insect and disease resistance, grain quality and harvestability. It also has disease resistance sunflower seed hybrids and partners with leading global companies to develop herbicide resistant characteristics, specific oil profiles, both oleic and linoleic and maximize yield potential for different growing conditions around the world.

FINANCIALS

Honeywell Flour Mills revenues grow 34% as it plans to open new Sagamu factory

NIGERIA – Nigeria’s leading wheat based

products manufacturer Honeywell Flour Mills Plc has announced 34% growth in revenue to US$197.8 million from US$147.17 million recorded in the year 2017, even as it plans to start production on the new factory in Sagamu in November 2018.

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The company’s gross profit grew by 26% from US$35.13 million in previous year to US44.54 million, as well as improved profit after tax of US$12.17 million. The company said the period was helped by its continued focus on consistent delivery of profitable top line growth through high capacity utilisation. Speaking on the yearly financial report, Chairman of Honeywell Flour Mills, Dr. Oba Otudeko said the firm will remain committed to its vision to build strong market, highly desired and recognisable consumer products that are well distributed across the country in the new financial year.

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The results were weighed down by macroeconomic challenges, including higher energy and transportation costs but the company was able to offset this through meticulous execution of its Continuous Improvement Strategy. The company implemented strategic projects to limit production losses, conserve energy, and to reduce downtime from equipment failure. The management also implemented a carefully planned input-cost management strategy to ensure profitability, even amidst the pressures of the tough operating environment. FOODBUSINESSAFRICA.COM


PRODUCTION

South Africa’s sorghum output to drop 9% to 100,000 tonnes in 2018/19 SOUTH AFRICA – Sorghum production

in South Africa is on the decline and according to GAIN report from the U.S. Department of Agriculture, this will drop by 9% in 2018-19 to 100,000 tonnes from 109,855 tonnes in 2017-18. The drop was attributed to a 32% decrease in area planted as many producers substituted sorghum for more profitable crops like soybeans. “Sorghum yields have remained fairly stagnant over the past decade at an average yield of about 2.7 tons per hectares, while average corn yields increased by around 20% to reach almost 6 tons per hectare. Unless drastic technology changes occur that could improve sorghum productivity, producers will continue to switch to more profitable crops and the

decreasing trend in hectares planted with sorghum in South Africa will continue,” the report said. Total sorghum consumption decreased by about 20% in the past 10 years, mainly due to the decrease in the usage of sorghum for malt. For the 2017/18 and 2018/19 period, sorghum consumption is estimated to remain at 165,000 tonnes, same level as in the 2016/17 MY. The report indicated that South Africa moved from being a net exporter of sorghum to a net importer of in the past 10 years as producers preferred to plant more profitable crops like maize and oilseeds. Imports are expected to increase by 17% during the period to reach 70,000 tonnes, primarily from the US.

INVESTMENT

IRRI opens regional office in Kenya to boost Africa’s rice productivity and sufficiency

KENYA – The International Rice Research Institute (IRRI) has opened a new regional office in the Kenyan capital Nairobi to help Africa achieve self-sufficiency and productivity in rice production. The new regional hub, hosted by CGIAR center, the International Livestock Research Institute (ILRI) will work in collaboration with AfricaRice to offer

training and research services on rice production in Africa. AfricaRice and IRRI will work to deliver on the rapidly growing needs of the African rice sector in line with the Sustainable Development Goals. According to IRRI, rice is the fastestgrowing staple food in Africa, attributed to growing population numbers, rising urbanization, higher per capita incomes and changing consumer preferences. While over 130 million hectares of inland valleys are suitable for rice farming, only about 10 million hectares are utilized, thus many African nations have had to import 50%

to 90% of their rice due to insufficient production. Efforts to boost agricultural priorities falls in line with the continent’s ‘Boosting Africa’s rice sector’ developed by AfricaRice and national partners. The program aims to reduce reliance on rice imports and for the continent to reach 90% rice selfsufficiency by 2025. According to IRRI, rice consumption in sub-Saharan Africa is growing at the expense of traditional staples like cassava, millet and sorghum, and demand continues to surpass local production.

INVESTMENT

Unga Group to commission new Eldoret wheat mill, plans soya meal facility KENYA – Seaboard-backed grain miller, Unga Group is set to commission a new 300 tonnes-a-day wheat milling plant in October, an expansion of the Eldoret facility that currently handles 250 tonnes and plans to install a soya meal production facility at its Nairobi plant by June 2019. Unga’s investment seeks to solidify its position in the wheat processing market while gaining a regional foothold given the increasing competition in the milling space. “The new 300 tonnes per day wheat mill FOODBUSINESSAFRICA.COM

in Eldoret is scheduled for commissioning in October 2018. The company will be installing a soya meal production facility at the Dakar Road plant during the course of the 2018/19 financial year,” the firm said in a statement. Unga chief executive Nick Hutchinson said the new Eldoret plant will help reduce expenses through efficiency and lower wage bills. “This is a state-of-the-art machine that will be more economical to run and efficient on production, it is going to cut

down on our expenses,” noted the CEO in a statement last year. The company however expects a more difficult and less profitable financial year 2018/19 due to increased competition in the flour milling business. Unga reported a profitable year ended June 2018 after discontinuation of firm’s operations in Uganda, cutting some of the losses experienced in the previous year.

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TRENDS

FOOD SAFETY

OPERATIONS

FORMULATIONS

REPORT

Applications of Reverse Osmosis in the Industry By Ronald Onsare

R

everse osmosis or RO, as it’s known by its popular acronym, relies on a process whereby high-pressure feed water is directed into a semi-permeable membrane from which clean water is permitted to flow through the membrane and to exit as pure permeate water. Dissolved mineral salts (and other contaminants) are blocked from getting through the membrane and are subsequently directed to a drain. In normal osmosis water molecules move accross a semi-permeable membrane from a higher concentration liquid to a lower one with no extra energy expenditure nor any external process. RO requires pressure to be applied in the lower concentration liquid to overcome the osmotic pressure, and thus, extra energy. The heart of any RO system are the membranes/elements contained in special pressure vessels. A RO membrane consists of a supporting layer with 50 microns in thickness and a barrier with about 0.2 micron in thickness that removes the contaminants in the problem water. The level of filtration and the process determine the type of membrane to use. Most common types are spiral, ceramic, stainless steel, hollow fiber and plate & frame membranes.

Application of reverse osmosis

RO systems have a wide range of applications that include municipal water treatment, food preparation steam sterilization, ice and beverage water, food processing, metal plating and finishing, and a pre-treatment option for ion exchange deionization systems. Commercial RO units are designed to effectively, efficiently and safely reclaim large amounts of water from tainted sources. RO is the preferred choice for purifying water with a rather high Total Dissolved Solids (TDS), which in any case other membrane systems like nanofiltration (NF) and ultrafiltration (UF) cannot ordinarily handle. With the correct set up and operation RO systems are known to provide high quality water consistently albeit at a relatively higher cost than other applications. There is also the constant concern of the amount of waste water generated by RO systems. Typically, the ratio of rejection is 4:1, meaning for every 1 litre of pure water 4 litres are rejected! 54

INEFFECTIVE PRE-TREATMENT IS THE MOST COMMON CAUSE OF RO SYSTEM APPLICATION FAILURE. Worse still, with membrane degradation the product water is bound to decrease as the reject increases proportionately due to the back pressure created while trying to force the feed water forward against the osmotic pressure through the membranes.

System choice and pre-treatment critical

When investing in a RO system, most buyers already know or ought to know the contaminants in their water, because a system can only be designed and tailored to handle a specific range or type of contaminant(s). Thus, other than the initial water tests an effective RO must be well designed and sized. Also removing key contaminants – which lead to fouling - before they enter a RO system is of immense importance. Pre-treatment for RO is critical for overall performance, operating costs management and return on investment. The better the pre-treatment in place, the longer the life and efficiency of the membranes. Ineffective pre-treatment is the most common cause of RO application failure. Polyamide thin-film membranes, which are common in many systems, has chlorine as its number one enemy. When exposed to chlorine, membrane damage occurs and worsen if iron or other transition metals have fouled the membrane as well. Fridah Moya, Regional Sales Engineer, at Sagisa Process Engineering, providers of a wide range of filtration and purification solutions, agrees that, when investing in a RO system its prudent to look at equipment quality, sizing and the measurements and controls required. “To get the best from your system, you must have it designed according to the feed water quality, then monitor the running of the system and maintain the equipment correctly,” she advises.

Keeping operating costs low

Longevity of service alongside lowering the overall operating cost of RO systems has been a big concern in this application. This has been centered on lowering energy consumption by targeting the RO membrane product category. Some

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manufacturers have managed to lower operating costs by increasing the square footage of the elements, consequently reducing the size of the system by more than 10%. This means users are getting more through-put per element, driving more water through a similar system as you could 5 to 10 years ago hence addressing energy demands. A combination of the improvements in the membranes and the energy recovery devices has managed to lower costs. Due to the high rejection values in the RO process, contamination is the most important cause of membrane malfunction (membrane fouling). Common causes of contamination are because of scaling when the concentrations of salt in the concentrate exceeds the solubility product of the salt, colloids, precipitates of iron, algae, biofilms and organic compounds such as oil or grease from industrial wastewater. Membrane fouling leads to higher operating pressure, flux decline, frequent chemical cleaning and shorter membrane life. With these varied contaminations, cleaning for the membranes will depend on the characteristics of the feed water, type of membrane and the very nature of contamination. On the flipside, successive cleaning causes membrane deterioration given that the manufacturer guarantee is normally 1-2 years. Nonetheless, with good cleaning the lifespan can be extended to 3 years, rarely up to 5 years. Pretreatment is widely used in practice to reduce the burden for the following RO operation, while real time monitoring of RO has the advantage and potential of providing support for effective and efficient cleaning. “Customers should be adequately informed before settling on a choice, they should know the problem in their water and more importantly they should be aware of the differences between alternative technologies nanofiltration (NF), ultrafiltration (UF) and reverse osmosis (RO) to avoid the common disappointments and downsides associated with erratic purchases and installation of these filtration technologies,’’ says Fridah

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FOOD FORTIFICATION: African countries make significant progress

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ood fortification offers an opportunity for food, beverage and milling companies to improve the nutritional status of their consumers and achieve their business goals. Food manufacturers face a huge challenge that is unique to this sector: provision of safe, wholesome, nutritious foods to the general population. So the question has always been how food manufacturers can meet these internal goals, while meeting the public good. Food fortification easily brings the food industry closer to narrowing this gap, for fortification enables manufacturers to provide more wholesome and nutritious foods that meet the needs of the general or specific parts of the population. Fortification therefore opens up a huge opportunity for food companies to, together with other stakeholders; improve the general nutritional and economic wellbeing of their consumers.

The public good of fortification

Fortification of food with micronutrients has played an important role in reducing common nutrient deficiencies in many countries around the world, including the use of iodine to prevent goiter, vitamin D to prevent rickets, thiamine to prevent FOODBUSINESSAFRICA.COM

beri-beri, niacin to prevent pellagra, and iron to prevent anemia. These fortification policies have been great successes for public health, according to the American Society of Clinical Nutrition. “For decades, food fortification has been recognised as an effective way of delivering specific nutrients to people who can’t obtain them from a balanced diet. By fortifying foods that most people eat regularly, and that they can afford, it’s possible to help them increase their vitamin or mineral intake without changing their existing eating habits. Staple food fortification programs – such as adding vitamin A to cooking oil or sugar, and iron and folic acid to bread – have been very successful in reducing the micronutrient deficiency disease burden,” says Nestle, the world’s largest food and beverage company. According to WHO/FAO, over 2 billion suffer from a variety of micronutrient deficiencies, many of them in Africa, while 1 in 3 people worldwide are at risk of iodine, vitamin A, or iron deficiency. A case in point is that congenital hypothyroidism due to iodine deficiency is the most common preventable cause of mental retardation in the world. Vitamin A, D, iron and zinc, also referred to as the ‘Big 4’, are the most prevalent micronutrients that are lacking

in the world today. Recent research shows that Kenya has a biting shortage of zinc, with alarmingly low levels in the general population. The public health burden of nutrient deficiency in developing countries is huge. According to a joint assessment report on adolescent nutrition policy and programming in Kenya released by the Ministry of Health, the World Food Program and Unilever, micronutrient deficiencies, particularly zinc, iron, and vitamin A are highly prevalent in Kenya. While there are business considerations to carrying out food fortification, it is such dire statistics that have forced the Government’s hand in enforcing mandatory fortification in many countries. The Ministry estimates that more than 80% of children below 5 years do not get adequate levels of Vitamin A and that 60% of these children have iron deficiency anaemia. An estimated 1,000 women of child-bearing age die during pregnancy and child birth due to severe iron deficiency anaemia. This sad state of affairs is replicated in many African and developing countries. Of concern to policy makers is also the rising incidences of ‘hidden hunger’ around the world, caused by a chronic lack of essential nutrients in a person’s diet.

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“Deficiencies in the vitamins and minerals essential for achieving good nutrition continue to plague countries across the globe, including developed nations, where it has been shown that it is possible to be both overweight and malnourished at the same time. Governments, organizations and non-governmental organizations (NGOs) worldwide now have an opportunity to address these deficiencies, working with food manufacturers to integrate essential micronutrients into staple food products through fortification,” notes DSM, a supplier of fortification solutions around the World. According to a recent survey, countries like Kenya, DRC, Ghana, Mozambique, Niger and Mali are some of the African countries that indicate an alarmingly high incidences of hidden hunger, while Ethiopia, Sudan, Tanzania, Angola and Zambia have severe cases of hidden hunger, with the bulk of the continent To compound the problem, “people who do not consume a sufficient proportion of micronutrients, particularly in utero and as children, are more likely to face cognitive and physical difficulties for the rest of their lives. Conditions such as stunting, reflected by a failure to reach linear growth potential as a consequence of suboptimal nutritional intake, remain a major public health concern in a number of developing countries, including many in sub-Saharan Africa and the Middle East,” says DSM. Good nutrition also plays a significant role in physical and mental health and development of individuals, and is a key trigger in ending the ongoing vicious cycle of poverty that traps millions of people Africa. The Copenhagen Consensus concluded that improving nutrition was one of the best, most cost-effective development investments to address the major challenges facing the planet today investing, revealing that investing US$60 million in nutrition a year on micronutrient provision could yield benefits in terms of improved health, lower mortality and increased income opportunities worth US$1 billion. Incomes could also rise by US$510 million per year with an annual investment of US$19 million in food fortification.

African countries take up fortification

“There is significant progress in fortification of staple food products in Africa. Some countries like Kenya, South Africa, Malawi, Zimbabwe and a few others have not only put in place adequate legislative structures to implement and enforce fortification, what we have seen is that many countries are willing to walk the path to fortification in the continent,” says Felistus Mutambi, who heads the fortification program at the Global Alliance for Improved Nutrition, GAIN, in Eastern and Southern Africa. Felistus says that salt iodization has been one of the most effective interventions in the food sector in Africa, with about 36 countries currently having mandatory salt fortification with iodine, while 39 have the relevant legislation to enforce the practice (see graph). Salt was the first food product to be fortified at the national level in Kenya in 1972, almost eliminating the occurrence of goitre in the general population in Kenya, with the Ministry of Health reporting a reduction of goitre to about 6% as at 2004. Other successful interventions include mandatory fortification of wheat flour, where 26 countries in the continent have adopted fortification and also have legislation. Cooking oil has also been mandated in 21 African countries, with 26 having legislative standards, with the maize flour fortification, despite its immense contribution to the total diet in Africa, remains low, with only 9 countries having mandatory fortification programs, and only ten putting in place fortification standards, while rice, whose 56

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CONSUMERS HAVE POSITIVE VIEWS ON FORTIFICATION A 2017 study by DSM shows that consumers have a positive view on fortification in Africa. The study, which was carried out in Nairobi and its environs involved 1591 people in-home face-to-face interviews, revealed that majority of Kenyan consumers are aware of the role of vitamins and minerals in their diets and are likely to prefer products with them. They also believe that they get sufficient vitamins in their diets. But they are less likely to be aware that bread, maize and cooking oil are fortified, and are less likely to distinguish fortified products from those that are not. Majority of consumers, however, will likely buy fortified products. The survey also showed that there is need for public campaign in rural areas and for those with primary education on the role and importance of fortification, through radio, community newspapers, etc.

consumption is rising rapidly in the continent, has not seen any fortification activities reported in the entire continent. Some country-wide programs are beginning to bear fruit in Africa. “In Cameroon, officials carried out a national scale survey in 2009, to investigate the prevalence of micronutrient deficiencies in the country’s residents, highlighting the issue as a significant public health concern. In response, a mandatory food fortification program was launched nationwide in 2011, which saw wheat flour fortified with micronutrients, such as iron and vitamin B12. A follow up study in 2017 revealed an improvement in micronutrient status in women and children, as well as a decrease in the prevalence of maternal anemia – significant evidence of the potential that such initiatives hold for improving global public health," reports DSM. Gaps, however, still exist, with a report in 2017 that Zambia’s mandatory sugar fortification initiative has failed to meet the requirements, with a majority of samples failing to meet Vitamin A levels, according to a study by the Zambia Zambian National Food and Nutrition Commission. Similar challenges exits in most African countries.

Investments in fortification infrastructure pick up

As Africa takes the queue on fortification, investments in fortification related activities are also being ramped up in the region. Jomo Kenyatta University of Agriculture & Technology based in Kenya, has launched a US$4 million laboratory that aims to enhance the country’s capacity to monitor and evaluate the level of compliance of different fortified food products to uphold national standards. “The project aims to strengthen the capacity of cereal millers to deliver micronutrient rich staple foods to target populations, particularly women, girls and children who are most vulnerable to malnutrition,” according to EU Delegation in Kenya, Head of Cooperation, Erik Habers. Buhler, the milling technology provider, has also invested in a micro-nutrients blending plant to serve the milling sector in the region. “This kind of technology has been available to large FOODBUSINESSAFRICA.COM


Fortification standards

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Status of mandatory fortification and legislation in Africa Rice Cooking Oil Sal t Maize flour Wheat flour 0

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Fortification standards

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30

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Mandatory fortificati on legislation

Source: Global Fortification Data Exchange

production sites for some time,” says Felix Brooks-Church, Cofounder & CEO of Sanku, “but not small, remote mills. And 95% of the population is reliant on small mills.” A first-of-its-kind dosifier machine by Sanku-PHC technology recently won the Product of the Year award at the IoT Evolution Product of the Year Awards. It collects mill production data and transmits it automatically to a central, cloud-based database via the mobile phone connectivity, enabling small flour mills in rural areas to fortify flour with precise amounts of key nutrients during the milling process.

Food companies take the queue

While Africa has seen a number of adoption and enforcement of mandatory fortification of salt, sugar, milled cereals, edible oils and fats over the years, some companies have adopted voluntary fortification where such mandatory measures are lacking, with a goal to contributing to the public good, while also positioning their products to better meet the needs of the consumers better than the competition. Complementary food products including Unimix, a cornsoy blend have been fortified with vitamins and minerals as per specifications of the FAO/WHO for a number of years in the region. Meanwhile, millers infant formulas have for decades been fortifying various cereals and meals with vitamins and minerals. Bidco Africa also recently introduced a fortified noodle product in Kenya. Unilever, which reveals that over 33% of its fortified products are sold in developing and emerging countries, where micronutrient deficiencies, particularly zinc, iron, and vitamin A are highly prevalent, has launched an iron fortified seasoning (bouillon) cubes in Nigeria and Kenya, on top of its fortified margarine products. “The drive towards zero hunger can only be achieved through public and private sector partnerships to champion key elements of the targets set to eliminate malnutrition and world hunger as a whole,” Dr. Myriam Sidibe, Hygiene & Nutrition Social Mission Director Africa, Unilever and Senior Fellow at the MossavarRahmani Centre for Business and Government at the Harvard Kennedy School, said while announcing its commitment to the FOODBUSINESSAFRICA.COM

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eradication of iron deficiency in Kenya, as part of its commitment to the World Food Day nutrition targets. Nestle, in 2009, decided to incorporate iron into its immensely popular seasoning cubes in Central and West Africa, despite the challenges it faced with this plan. Altered taste, discoloration of the final product and an increase in production cost were some of the worries the company grappled with, before its scientists tweaked the formulation and sought out the right iron compound to use. The result? In 2012, Nestle launched its reformulated Maggi bouillon cubes across Central and West Africa. “Public health data shows us that Central West Africa suffers from a high prevalence of iron deficiency,” says Petra KlassenWigger, Scientific Advisor at Nestlé’s Nutrition, Health and Wellness department. “We looked at our product portfolio to identify potential carriers for fortification. Maggi bouillon cubes and tablets were widely consumed across the region, making them an ideal vehicle for iron fortification.” The company says that in West Africa it delivered 64 billion servings of fortified food and beverages in Central and West Africa through its Maggi bouillons, Nido milk, Milo beverages, Golden Morn breakfast cereals, Cerelac infant cereals and Ideal milky choco, milky tea and milky coffee drinks among others. In Rwanda, a new investment, Africa Improved Foods, inspired by the impact the first 1000 days has on future development of the child, has invested in processing high-quality fortified products targeting the World Food Program’s activities in the Great Lakes region, but also has a line of retail products that are contributing to good nutrition in Rwanda and the region.

Progress made but rice lags behind

Mandatory or not, food fortification uptake in Africa is on the rise, with opportunities being taken by food producers to expand the scope of products that could be carriers to vital minerals and vitamins. Wheat flour fortification has made significant strides, buoyed by mandatory fortification programs in 26, or half of African countries. Progress has also been made in maize, cooking oil and seasoning cubes, sugar and salt fortification, but barriers remain while rice, a staple that feeds millions mainly in Central and Western Africa, and is growing in popularity in many countries, remains the grain that must be focused on in the next wave of fortification activities. Rice consumption is increasing in the continent. Nigeria consumes 6.9 million tonnes of rice a year, from 3 million tonnes in 2000, while Tanzania has seen rice consumption rise to 2.1 million tonnes in 2018 from 761,000 tonnes in 2000. Kenya, has seen consumption rise almost four times from 272,000 tonnes in 2000 to 820,000 tonnes in 2018, while Mozambique has recorded a rise from 293,000 tonnes to 984,000 tonnes in 2018. Felistus, from GAIN, says that with rice becoming a vital part of the continent, rice fortification should be prioritized, adding that some of the Southern African countries are considering introducing legislation on mandatory rice fortification as rice constitutes a significant portion of the diet in some of the countries. “Most of the nutritional value of rice is lost during milling of the kernels, meaning that it is not a rich source of the essential vitamins and minerals. . . . Hidden hunger is widespread in most countries that consume high levels of rice; even if its residents are consuming enough to address physical hunger requirements,” says DSM SEPTEMBER/OCTOBER 2018 | FOOD BUSINESS AFRICA

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GRAIN SORTING: THE FUTURE GETS MORE DIGITAL By Godfrey Anunda

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rain sorting is as old as agriculture itself. Harvested grains tend to carry with them foreign matter and grains that do not meet the specifications of the user. This is where sorting comes into the picture. Optical sorters were devised to replace manual sorting which is subjective and inconsistent. Advanced technologies in sorting grain seed, rice, pulses, fruits and vegetables help deliver highest quality of grain by ensuring consistent high performance and productivity. They feature new, sophisticated detection and lighting systems suitable for wider grain applications. Global leaders in sorting solutions are guided by increased requirements on food safety, something that has made optical sorters key in cleaning raw food materials. Innovations are centred at developing highspeed grain sorting equipment in single kernel technology used in durum wheat, soft wheat, malting barley, spelt and oats based on Fusarium (DON), protein, vitreousness, seed quality and falling number.

Grain sorting application possibilities

For soft, hard or durum wheat, grain sorters are suitable for removing subtle defects, discolouration and mycotoxins such as vomitoxin (DON), spot defects, foreign grains such as barley, oats, soya, broken, insect damaged and low protein grains while delivering consistency in terms of appearance and quality. Sorters are suitable for all corn/maize, from field corn to grits as they remove both common and challenging defects including black tips, straw, cob, foreign materials and reduce mycotoxins such as aflatoxins and DON. Optical sorters are critical in eliminating naked, cracked kernels and foreign grains in barley to deliver the best possible barley quality and prevent cross-contamination. Used further in the processing of beer, sorting enables the removal of mycotoxin infected grains to prevent gushing of the beer. Other grains include oats, buckwheat and rye applications that requires removal of diseased rye, ergot, discolouration and various foreign materials. 58

New generation with highest capacity solutions

Global brands like Cimbria, which utilizes colour sorting technologies in its grain and seed handling profile, are leveraging their capabilities in superior machine performance, stable sorting and revolutionary technologies to be at a better competitive edge. The sorters feature latest technologies in detection, lighting and proprietary to help grain processors meet requirements on different grain variety, applications, capacity and yield. High resolution cameras and LED lighting delivers the colour recognition needed to detect defects and foreign materials, within the entire visible spectrum. They have simplified operating system and high speed ejection system equipped with precision ejectors to minimize false rejects while delivering uniform appearance on colour, size and shape. Such technologies are a success to food waste reduction in the feed grain industry. Instead of rejecting the entire load, one can use the technology to sort out contaminated grain, protecting the animals that eat the grain and those who eventually consume the milk or dairy products. To reduce cases of contamination, Africa needs the appropriate sorting technology possibly through partnerships with suppliers. Infrared technology is the latest to get support from the industry. It uses visual, gravitational and colour sorting means by looking at the chemistry of each seed and provides higher volumes sorting capacity while eliminating the subjective visual element. Producers can gain more on grading of crops and also increase the value of grain. Grain that could probably be downgraded, that is graded as feed could be recaptured and become ‘malt barley’ or ‘good milling wheat’, or ‘good pasta type durum’.

Breakthrough in food safety

While aflatoxin is little heard of in rich societies, Forbes indicates that it could be one of the largest causes of cancer in developing countries especially Africa. The continent is a home for warm and humid conditions, thus aflatoxins like Aspergillus flavus and Aspergillus parasiticus can affect crops like corn, peanuts and tree nuts when

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damaged by insects or stress from drought. Countries in the United States or Europe are at little risk of the toxins as farmers exercise insect and disease control measures based on stringent requirements like those of EU that dictates maize with less than five parts per billion of aflatoxin. In Kenya for example, only 20% of maize supply meets that standard blamed on presence of multiple and uncoordinated agencies, weak inspection capacities, and lack of clarity on roles and responsibilities of food regulatory bodies. Modern optical sorters are coming into light to solve the aflatoxin problem which impacts safety and quality of the end product. Food technology companies are at the verge of succeeding fight against toxic grains through optical sorters which eliminate any grains which show signs of fungal infections (e.g. Fusarium), resulting in a significant reduction in mycotoxins. In addition to removing foreign material and seeds or any foreign adulteration, they can get rid of discoloured, damaged or insect infested grains. This protects the miller or grain trader from financial losses as the high-precision rejection system minimizes the loss of good grain into waste. Recently, Swiss grain handling equipment company Buhler partnered Microsoft on a ground-breaking digital technology with the aim to address food safety, waste and product quality. It has the ability to process corn at a rate of 15 metric tons per hour and reject any of the kernels that are contaminated with aflatoxin. The system uses high-speed imaging technology using LED lights by analysing the color each kernel fluoresces as it passes through the sorter. Contaminated kernels are easily identified as they fluoresce a specific bright green colour. It utilizes Microsoft’s Azure Cloud where visualization of the data, tracking, and reporting are possible in real time. It can achieve a 90% or better degree of contamination with about 5% level of grain rejection. According to Buhler, the use of infrared transmittance kernel sorting technology has the capability of salvaging high quality grain from grain downgraded due to Fusarium Head Blight (fungal infestations)

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RETAIL INDUSTRY IN KENYA

Kenya’s formal supermarket sector set for alignment as foreign chains move in

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he formal supermarket industry in Kenya is primed for a major revolution. Revolution from the days when the sector was largely owned by families, to one that has some of the largest global supermarket chains joining the fray. The 2016/18 period has seen significant changes to the industry that will resonate for many years to come. Kenya holds a unique potential in the retail sector in Africa that is buoyed by one of the largest markets in sub-Saharan Africa in terms of shopping center floor space. By 2016, Nairobi, in particular, has seen a number of retail spaces open up in the past decade with more than 600,000 square meters of mall space supply available in 2018, which is expected to grow to 725,000 square metres by 2020, growing at a CAGR of 9.5% over the two years, according to Cytonn Investments, a research firm. This compares positively with the 185,800 square metres in 2010, a huge jump in retail space in the country. According to Cytonn, in the report released in September 2018, the sector is rebounding from the effects of the tough economic environment in 2017, which was characterized by a prolonged FOODBUSINESSAFRICA.COM

electioneering period and reduced private sector credit growth. The entry and expansion of international retailers, supported by a widening middle class and provision of high-quality spaces in line with international standards as well as infrastructure have added more fire to the growth of the sector. Further, increasing purchasing power, with GDP per capita growing at a rate of 7.9% per annum over the last 5-years, has sustained demand for retail products in the country. However, the report says that low private sector credit growth, which averaged 4.3% as at June 2018, compared to a 5-year average of 14% in 2013-2018 period continues to slow down full recovery of the sector.

Family owned retailers under pressure

The Kenyan formal supermarket scene has been under the control of family-owned enterprises, which grew over the two decades period to 2016 substantially, with Nakumatt and Tuskys Supermarkets even opening outlets into Uganda and Tanzania. Nakumatt expanded its stores presence to about 65 units, with operations also in Rwanda. The number 3 player Naivas

Supermarkets remained a medium player with operations largely around Nairobi’s lower and middle income areas. Uchumi Supermarkets, in which the government of Kenya had a significant stake, also opened outlets in the two East African countries. But prospects have changed drastically for Nakumatt, which has been forced to close nearly all of its stores in the region and currently runs only 6 outlets, 4 of them in Nairobi and one each in Nakuru and Kisumu. As we went to press, the retailer was in the process of closing its prime Nakumatt Mega, which it had operated for 27 years. The company is under administration. Tuskys, considered Kenya largest retailer at the moment, now operates 64 stores in Kenya and seven in Uganda. It is followed by another family-owned store, Naivas Supermarkets that has 46 stores, which has revitalized itself to take advantage of the tribulations of Nakumatt, opening new stores in middle and high income areas of Nairobi, from which it has benefited immensely. After its share of tribulations in the market, Uchumi, the oldest supermarket chain in Kenya, continues to promise to secure a long-awaited deal with

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"WE ARE MOVING INTO KENYA WHERE WEAKENED COMPETITOR POSITIONS HAVE OPENED A WINDOW OF OPPORTUNITY TO STRENGTHEN OUR GROUP'S PRESENCE IN EAST AFRICA." Pieter Engelbrecht, CEO, Shoprite

an undisclosed equity investor to boost the health of its operations. The family-owned structure of the retail sector in Kenya has continued to impact the future of the industry. Family feuds, poor governance and strategic alignment have continued to weigh down the local retailers, with disagreements even standing on the way of the company’s signing important acquisition or investment deals with key international players. Game Supermarkets, which maintains a single store in Nairobi, and an important player considering its ownership by Massmart South Africa, which is owned by the world’s largest retailer, Walmart, tried and failed to acquire a stake in Naivas Supermarkets a few years back due to family feuds, according to reports in local media. Several reports have talked of the same setback whenever investors had discussions with Tuskys and Nakumatt Supermarkets.

Big international giants zero in

Perhaps the most noticeable change in the retail environment in Kenya is the entry of large, international brands that have struggled to enter the country after many years of trying to, as they seek to take advantage of the problems faced by local brands that have always stood in their way to the entry into Kenya’s formal supermarket market. Recent arrivals Carrefour, Choppies and Game are angling to take over Kenya’s retail sector, at a time that consumer sentiment is picking up and the jitters of the 2017 elections are fading away. Africa’s largest retailer, Shoprite, has also finally made a move into Kenya after mark timing in Uganda and Tanzania for more than 15 years, waiting for the opportune moment to enter Eastern Africa’s largest market. The retailer is set to take over six prime locations from Nakumatt in Nairobi and Mombasa as its launching pad into Kenya, “where weakened competitor positions have opened a window of opportunity to strengthen the group’s presence in East Africa” said Pieter Engelbrecht, the firm’s 60

CEO. It plans to open its first set of stores in December 2018. Carrefour, the French retailer, through the franchise owned by UAE-based Majid Al Futtaim of Dubai has introduced a new

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NUMBER OF NAKUMATT RETAIL OUTLETS REMAINING, FROM 65 TWO YEARS AGO perspective to the retail industry in Kenya, focusing on the retailer’s owned bakery, meat, fish, cafe and fresh produce sections that Kenyans have taken a liking to. With a good blend of local products and a few of its imported private label brands, the retailer’s focus on large outlets with a wide variety of products has attracted consumers to its stores in droves, as Kenyans move their shopping to malls that offer more variety of products and services. The retailer operates six outlets in Nairobi at Two Rivers Mall, Thika Road Mall, the Junction Mall, the Hub Karen, Sarit Centre and Galleria Mall, with Village Market in the pipeline by December 2018, many of them taken from its rivals Nakumatt and Uchumi Supermarkets. Some of the stores are not fully functional yet, as the retailer works to fit them to meet its customers’ needs. Game, which has been dormant with one store, is set to open a second one by December.

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Battle moves to regional markets

Cytonn in its report notes that the markets of Mombasa, Central Kenya, Kiambu, Machakos, Kajiado, Kisumu and Uasin Gishu offer excellent opportunities to develop the retail industry. As Nairobi continues to attract the bulk of the mainstream retailers, a war of smaller players continues to be fought almost unnoticed. In western Kenya, regional giants Khetia’s and Shivling Supermarkets are in a rush to be the regional favourite, even as Nairobi-based Tumaini Supermarkets tries to establish itself in the biggest market in the region, Kisumu. In Central Kenya and areas surrounding Nairobi, Cleanshelf, Quickserve, Mathai, Maguna Andu Selfridges, Jaharis, Kassmart, Mulleys and Eastmart Supermarkets compete against the giants with impressive growth reported at a number of these smaller, local players. After some years of operating on the periphery of Nairobi, some of these retailers are beginning to break into the mainstream Nairobi market, taking a bite from the shambles that has been created as Uchumi and Nakumatt scramble to remain in business. Experts contend that for any of the new big international supermarket giants to have a strong country-wide coverage, which has been tried by Nakumatt (with devastating results), Tuskys, Naivas, Uchumi and Choppies Supermarkets through its acquisition of the former Ukwala Supermarkets three years back, they may have to strike a deal to acquire some of these regional heavy weights to strike a chord with consumers who have grown fond of these retailers FOODBUSINESSAFRICA.COM


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HAND WASHING - THE FOUNDATION OF FOOD SAFETY By Virginia Nyoro

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recent study of handwashing at a restaurant in the US by the Environmental Health Specialists Network (EHS-Net), in year 2017 found out that handwashing compliance rates by workers were low at the facility, despite the installation of adequate hand washing facilities and the staff being aware of the need to wash their hands regularly. According to the study, the workers washed their hands in only 27% of activities in which they should have!! The study noted that handwashing rates differed by activity with the level of compliance highest just before preparation of food at (41%), followed by before putting on gloves to prepare food (30%), after eating, drinking, smoking, coughing, sneezing (26%), after preparing raw animal products (23%) and after handling dirty equipment (23%). The lowest level of compliance was after the workers touched their bodies, at 10% compliance!! The study also reported that workers were more likely to wash their hands at the right time when they were not wearing gloves than when they were, confirming that gloves actually do affect compliance in food establishments. WHY HANDWASHING MATTERS… The spread of germs from the hands of workers to food is an important cause of foodborne illness outbreaks in restaurants, causing 89% of outbreaks in which food was contaminated by food workers according to the EHS-Net. Proper handwashing can reduce germs on workers’ hands and also reduce the spread of germs from hands to food and from food to other people, thereby avoiding the negative repercussions that go with food contamination. In any food production environment, be it a small food preparation enterprise or a large industrial concern, food safety is of paramount concern and is a business issue. Food safety is a broad topic, but it is hand washing that forms the basis of food safety and is what we will talk about in this article Hand washing is a basic requirement in meeting Good Manufacturing Practice (GMP) and HACCP requirements. Proper handwashing is an effective way to avoid contamination of food with microbes, chemicals or physical hazards. These contaminants include bacteria such as

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Enterococcus, E. coli and Enterobacter spp, viruses (including flu viruses), chemicals (including grease and other chemicals) and physical hazards like soil. The effect of hand washing in reducing respiratory infections and diarrhea cannot be over emphasized. Hand washing is an activity that is appreciated more in hospital environments, with dust coat and dust mask clad surgeons common on our TVs, vigorously washing their hands and arms in many a movie scene, ready to get into surgical theatres. It is this mindset that needs to be transferred to our kitchens and food processing factory floors if we are to reduce infections or meet the increasing needs of our customers and regulators. It is therefore imperative to the management of any food facility to ensure that proper hand washing is enforced in the facility to meet food safety standards. While it is appreciated by many that hand washing contributes to reducing crosscontamination of food during preparation, processing or post processing handling, the level of compliance in many facilities remains quite low, with considerable effect on consumer health. The net effect of this is that food products fail to meet set microbial and chemical standards and may cause illness or death or lead to a food recall situation! FACTORS THAT REDUCE COMPLIANCE WITH HAND WASHING AND HOW TO IMPROVE

Lack of a food safety policy by the facility

Each food facility needs to have in place a clear and concise policy on food safety. This not only shows commitment by the Management but also provides a basis on which everything else lies, from provision of resources to how employees will identify with the need for following laid down guidelines.

Lack of training at the facility on hand washing and food safety in general

The need for training cannot be overemphasized. Frequent, well coordinated training plans have to be part of the food safety program, which should incorporate

hand washing. Once the training has been done, the use of easy to understand posters placed at strategic locations within the facility and other means shall be used to encourage compliance.

Lack of enforcement of laid down hand washing guidelines

Once drafted, any regulation requires enforcement. Management has the responsibility of ensuring complete compliance with hand washing procedures and guidelines. Tied to this is the responsibility of Management to monitor, analyze and find out any reasons for noncompliance and putting in place corrective actions

Hand washing points far from users

Plant design and any associated facilities can hinder the employees’ ability to meet requirements on hand washing. The plant should be designed such that hand washing points are put in strategic areas that can easily be reached, and where the biggest risk is envisaged

Lack of adequate hand washing points in the facility

The Management has to ensure that adequate sinks, detergents, water, sanitizers, gloves, and drying aids are available in available at the point of use. Responsibility for regular checks, replenishment and repairs in case of breakdowns should be clearly defined. Further, cases of unexplained breakdowns or consumables running out should be investigated and sorted out without compromising the product safety, and decisions made on products manufactured during the breakdown

Improper food production procedures and systems

Proper procedures should be put in place to ensure proper work flow and procedures to reduce cross contamination, and thereby reduce the need for regular hand washing. Raw products should not be allowed to be handled in between ready products and where complicated process flows exist, simplification is key in meeting food safety goals, and ensure compliance with hand washing guidelines

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BROADWAY BAKERY CELEBRATING 60 YEARS OF GROWTH, TASTE AND HEALTH!

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MY FACTORY, MY STORY – BROADWAY GROUP

By Francis Juma

This year, Broadway Bakery Ltd is celebrating a landmark – 60 successful years in business! The company, part of Broadway Group of Companies and established in Kenya during the pre-independence era, has steadily grown from a small bakery to become one of the largest and most loved industrial bakeries, wheat millers and even entered the real estate industry.

T

he Group prides itself for its many firsts and its story begins in 1912 when two young men began a journey from Gujarat in India and found themselves in Thika, a small town north of Nairobi, Kenya’s capital city, from where the Broadways name has become synonymous with the growth of the town and the industry in Kenya. The Group, which presently consists of Broadway Bakery, Bakex Millers Ltd, Broadwalk Ltd and Albizzia Downs Estate Ltd, was established in 1958 by Ratilal and Sobhagchand Fulchand Shah as a small bakery with just the one-deck oven serving mainly their hometown of Thika. Their younger brothers – Dalichand and Chunilal – joined the bakery in 1964, and their youngest brother – Amichand – joined in 1979. 66

Among the Group’s many firsts, Broadway Bakery was the first to install Baker Perkins, Spooner and Werner & Pfleiderer (W&P) bread making plants in Kenya – three famous and respected brands in the global baking industry. The bakery also took the plunge earlier on by introducing plastic crates for the storage and transportation of bread, which have become the standard packaging medium for bread not only in Kenya but also in the region. The bakery has also gone ahead to be the first to start a staff provident and life assurance scheme for its staff. To improve its baking technology further, the company was the first to install Diosna mixing systems and the first to put up a fully automated Rondo plant that produces a range of sweet goods for the Kenyan market, including the popular snacks of

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mandazi and donuts. To add to these, the company’s sister company, Bakex Millers, has a knack for breaking barriers as well. Bakex Millers will be the first millers to install a Buhler specialised Atta mill in the region. It was also the first private miller to import a full 30,000 metric tonne vessel of wheat into Kenya and was the first miller to install metal silos and a 300 tonne steel structure mill at its Thika facility. The Group has undergone a huge transformation from the early days when the founders had to commute upcountry to sell their produce, transitioning from one generation into the next over the last 60 years. The third generation has joined the business and are being trained and mentored to take the business onto greater heights in the future. FOODBUSINESSAFRICA.COM


TRENDS

FOOD SAFETY

OPERATIONS

FORMULATIONS

REPORT

“I WOULD LIKE TO EXPRESS OUR GRATITUDE TO OUR FATHERS ON WHOSE VISION WE ARE CELEBRATING THIS YEAR’S 60TH ANNIVERSARY OF THE COMPANY.” Hiten Shah

The company this year celebrated its 60th anniversary with pomp and colour at an evening event in Nairobi, Kenya, where family members, friends and business associates from across the world congregated to mark this significant milestone.

Investments in growth and new markets

Broadway Bakery began its journey making bread and scones for sale in Thika town in 1958. After Kenya gained independence in 1963, an additional deck oven was purchased and installed, enabling the bakery to supply its products to regions outside Thika, such as Kitui and Mwingi. Further growth in the 1970s made the company start planning for the future. In 1977, it bought land for a new site in the industrial part of Thika where the current bakery plants are located, equipped to cater for any sort of future demand. Ratilal and Sobhagchand travelled to Peterborough, UK, to purchase the first Baker Perkins plant, which cost about US$300,000 with a production capacity of 70,000 loaves per day. The new plant began operations in 1979 and was soon running at full capacity as customers noticed the improved quality of the bread. The company soon extended its market into Meru, Nyeri and Embu in Central Kenya. The resounding success of the Baker Perkins plant led to the purchase of a Spooner plant in 1981, which also had a capacity of 70,000 loaves per day. With the installation of the new plant, the markets of Nairobi and Machakos opened up for the company. In 1985, the first W&P bakery plant with a capacity of 100,000 loaves per day was installed at a cost of about 3 million Deutsche Marks, expanding the bakery’s market to Nakuru in the Rift Valley.

Expansion into milling

The company’s ambitious growth was however impacted when in 1982 it faced headwinds in sourcing bakers flour from local millers after the drought that hit the country. Rather than take the challenge negatively, the company acquired a milling license from the National Cereals and Produce Board of Kenya to start their own wheat flour mill. To set up the mill, the company bought a Buhler wheat mill from Spain with a capacity to produce 150 tonnes per day, and also installed three 1,000-tonne silos to store the raw wheat, and thus Bakex Millers began operations in 1983. It was the first private mill in Kenya to install wheat storage silos. Bakex Millers currently produces the Bakex Standard bakers flour, Bakex Biscuit flour, Oboma Home Baking and Atta Mark 1 flours and Vitafla Home Baking and Atta Mark 1 flours which are known for their unique, flexible packaging format. Five more 1,000-tonne silos were installed at Bakex Millers in 1985. In addition, the company started distributing bread in plastic crates, replacing cardboard boxes, and thus by doing so became the first bakery in Kenya to use plastic crates in the storage and transportation of bread products. A second W&P plant was installed in 1992 at a cost of approximately 2.5 Million Deutsche Marks that doubled the production capacity of the bakery. FOODBUSINESSAFRICA.COM

In 2013, a second Buhler wheat mill with a capacity of 250 tonnes per day was bought to replace the first one, which had been running for close to 30 years. In preparation for this, four 4,000-tonne silos were also installed. With capacities increasing, a new distribution centre for bread was set up in Eldoret to cater for the growing Western Kenya market. “Today, Bakex Millers imports 85% of wheat from different parts of the world, such as Russia, Canada, Argentina, USA, the Black Sea and Australia. Broadway Bakery is supplied with 2,000 metric tonnes of baking flour from Bakex Millers a month. Bakex Millers also supplies flour to more than 30 medium-sized bakeries, three of the largest biscuit manufacturers and the home-baking market and is currently churning out 550 tonnes of flour a day,” Hiten, who manages Bakex Millers, says. To move forward with diversification, the company ventured into real estate with the launching of Albizzia Downs Estate in 2013 along with three other partners. This project involves a mixed used development whereby the vision is to create a microcity encompassing residential, commercial, industrial, educational, medical and other facilities. Both the baking and milling sides have expanded greatly over the last few years. A new 300 tonnes-per-day Buhler wheat mill and another 100,000 loaves-per-day W&P bakery plant were installed in 2017. In addition, new mixing technology from Diosna was introduced that enhanced the quality of the bread. The combined investment of this expansion is close to Kenya Shillings 2 billion (US$20 million). Further, a small Rondo plant specialising in the manufacture of mandazis and donuts was started this year. The Group will be adding a new Buhler Atta mill, the first of its kind in Africa, along with five more 4,000-tonne silos to the current set-up at Bakex Millers as it celebrates 60 years. The company appreciates the great work by the more than 200 distributors and over 50 supermarkets that handle the company’s products. “Owing to the nature of the business, the company must ensure that bread is delivered very early in the morning, every day of the year. We have a very strong distribution network across the country that is growing as we speak,” Bejul, who handles the transport and logistics for the entire Group, says. Hiten adds that as they celebrate the 60th anniversary, they are glad that the new wheat mill commissioned last year can also SEPTEMBER/OCTOBER 2018 | FOOD BUSINESS AFRICA

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IN NUMBERS

550 MILLING CAPACITY PER DAY INSTALLED BY THE COMPANY SINCE 2013

produce pasta flour, eliminating the need to import pasta flour into the region.

New generation takes over and systems improved

The Group has managed a number of transitions in its 60-year history, tapping into the energy and innovations of the younger generations to move the company forward. In the year 2000, the Group’s founding brothers decided to retire together and hand the baton over to the next generation. The new management team of Bimal (son of Sobhagchand), Hiten (son of Ratilal)

and Bejul (son of Chunilal) took over the reins of managing the bakery and milling business. They soon installed an in-house wax coating and printing plant for bread packaging, which had always been the company’s trademark since 1978. But the retired generation still continued to provide guidance to Bimal, Hiten and Bejul. “Even though our fathers and uncles all officially retired together, they still used to provide their support and guidance whenever Bejul, Hiten or I required it. As we had been ingrained in the businesses for a few years and had been planning for this shift in power, it

was relatively straightforward for us to take over the running of the businesses. Our main aim was to steadily grow both core businesses, as well as to diversify into related and relevant areas,” says Bimal. “I would like to express our gratitude to our fathers on whose vision we are celebrating this year’s 60th anniversary of the company. I did my milling technology in Switzerland and then I went to do further milling training in India. I came back in 1984 and joined the family business after having started the milling plant in 1983. My father and my uncles used to come to the mill every day. Because of their guidance, that is the reason we have excelled and grown as a company’” says Hiten. “We were the first private miller to get a licence to import wheat into Kenya,” he added, saying that the pace of growth has picked up, with more than 80% of flour demand from biscuit manufacturers being supplied by Bakex Millers. Due to the rise in demand, the company has installed two new milling plants in the last 5 years. The past decade has been about growth, stability and computerisation of the accounting software, with reported

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MY FACTORY, MY STORY – BROADWAY GROUP

“THERE HAVE BEEN SEVERAL CHANGES IN THE WAY ONE PERCEIVES OUR GROUP AND WE ARE IMMENSELY PROUD OF HOW OUR TEAM HAS BROUGHT IN THE CHANGES TO SUIT THE TRENDS AND TENDENCIES OF OUR CLIENTS AND CUSTOMERS. WE LOOK FORWARD TO FURTHER GROWING OUR BUSINESSES IN THEIR RESPECTIVE MARKETS.” Bimal Shah

increased incomes at both Broadway Bakery and Bakex Millers. The Group in 2012 celebrated 100 years of the family residing in Thika. Bejul says that the support and mentorship from his father, uncles and cousins enabled him to join the family business at a young age, and that through their guidance, the business and the fleet of vehicles grew aggressively. “As Broadway Bakery is celebrating 60 years, I am celebrating my 50 years and I feel age is beginning to catch up with me. I hope my nephews will continue the same legacy, and soon my young son will follow the footsteps of our forefathers to continue making Broadway Group No.1,” he asserts.

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New wave of young leaders being groomed

The Group is currently in the early stages of bringing on board the new generation of young managers into its businesses. This third generation made up of Devan (son of Bimal) and Rohin (son of Hiten) joined in 2015 and have ably supported their fathers and uncles and are eager to carry on the baton moving forward. In the same year, two more 4,000-tonne silos were installed at Bakex Millers. Bimal, now 60, says, “There have been several changes in the way one perceives our Group and we are immensely proud of how our team has brought in the changes to suit the trends and tendencies of our clients and customers. Business has developed strategically, growing with each opportunity. We look forward to further growing our businesses in their respective markets.” The young lads have set their eyes on broadening the focus of the Group and improving the marketing capabilities of the companies. Just a year old in the business, Devan and Rohin launched the #BeSugarSmart campaign, which is aimed at educating Kenyans about the negative impact of sugar on health. The bold campaign took a stance against sugar and enabled the company to directly connect with customers and educate them on eating healthy. To supplement this campaign, the company started conducting regular diabetes screening camps around the country at no cost to the public. The

company also brought on board a famous Kenyan gospel artist, DJ Mo, as its brand ambassador, a first in the bakery industry in Kenya to help drive the campaign among the youth. The diabetes screening camps and the brand ambassador have helped position the Broadways brand in a unique space, focusing on the best quality, good health and general happiness. They also started small, franchised outlets in the form of kiosks under the trademark of Seven 2 Seven, which is run under Broadwalk. These kiosks sell fast-moving consumer goods and were introduced to allow the Group to take control of prices and supply at the retail customer level of their core products, as well as provide opportunities for young Kenyans who want to start their own business.

The future is bright

The Group believes that the future is bright and that with a focus on innovation, they can carry the mantle of its founders into the next generation. “Bimal, Bejul and I want to continue expanding our business with the goal of the company being one of the international companies to be recognised in the region,” says Hiten. According to Bimal, the 60year anniversary is a significant milestone for the company and will drive the Group to further grow its influence across Kenya, including in Western Kenya where the company has plans to strengthen its distribution and market channels

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MY FACTORY, MY STORY – BROADWAY GROUP

BROADWAY BAKERY INSTALLS FIRST AUTOMATIC MANDAZI LINE IN EASTERN AFRICA

B

roadway Bakery has installed the latest and most advanced automatic Rondo mandazi and donut line in Kenya and the Eastern Africa region. Supplied by German industrial bakery technology company Rondo Burgdoff AG, the plant, which has been installed in a new facility by the bakery, has enabled Broadway Bakery to stand shoulders above other bakers in the region for its versatility, efficiency, hygiene and ease of operations. “We are proud of our partnership with Rondo in this new plant. The plant enables us to diversify into the confectionery category that we have seen grow over the last few years in Nairobi and surrounding areas. With this plant, we are confident of making superior products and to meeting the rising demand for these products in the market,” says Bimal Shah, the Managing Director of the company. The new plant provides Broadway Bakery with the first industrial scale plant to make all manner of small confectionery products in the region, with the plant currently producing a local favourite, mandazi, with plans to grow the product line into more categories. The plant produces a range of products from soft, highly hydrated dough. A gentle dough band system and the sophisticated accessories expose the dough to minimum stress, delivering the dough with the right structure at the end of the process. The plant has an automatic divider that ensures the dough weight and size can be maintained, thereby delivering superior products. The divided pieces of dough are then passed into a proofer before frying in cooking oil. The company has registered

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the new brands of Mando Bites, Maicho Donuts and Solja Block for the new confectionery snack line that it plans to expand over the next year. According to Andre Hoffman, the Sales Manager for Rondo, the company has developed specialized systems for processing any type of dough for all manner of bakery applications across the continents that Rondo can deliver to each customer’s specification. “Our project with Broadway Bakery is a clear example of our capabilities in this respect. We believe it has opened for us many opportunities to work with bakeries in Africa,” he says FOODBUSINESSAFRICA.COM


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Food Business Africa Sept/Oct 2018  

Africa's Food, Beverage and Milling Industry magazine

Food Business Africa Sept/Oct 2018  

Africa's Food, Beverage and Milling Industry magazine