Page 1

EXECUTIVE INTERVIEW:

Michele Perchonok IFT President-elect iNDUSTRY FOCUS:

Craft Beer in Africa PERSPECTIVE

How FSSAI is reforming India’s food safety NOV/DEC. 2017 NO. 27

MY FACTORY, MY STORY

Nairobi Bottlers Ltd

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AFMASS KENYA: APRIL 25-27, 2018

AFMASS ZAMBIA: OCTOBER 3-5, 2018

To be at the top of your game in the changing food and agro industry in Africa, you need the right ideas and technologies to execute your plans. Join your industry peers at AFMASS 2018 editions in Kenya and Zambia where you will: • Source hundreds of Processing, Packaging, Food Safety and more industry solutions from leading local and international suppliers • Network with over 3,000 industry and Govt. opinion shapers and leaders • Learn the latest technologies and trends in cost savings, efficiency, food safety and sustainability

TALK TO JONAH TODAY ON: TEL: +254 20 81 55 022 / +254 725 343 932; EMAIL: INFO@FOODWORLDMEDIA.NET ON HOW TO PARTICIPATE.

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CONTENTS FEATURES

PAST ISSUES

IN THE NEXT ISSUE (JAN/FEB 2018)

MY COMPANY, MY STORY

My Company, My Story:

32

Proctor & Allan EA Ltd

NAIROBI BOTTLERS LTD Nairobi Bottlers has recently opened a new juice processing plant to meet its ambition to serve more nutritious beverages to its consumers

SPECIAL REPORT Craft Beer takes the flow into Africa

39

A review of the potential of craft beer in Africa as the industry takes the world by storm.

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NOV/DEC 2017 | FOOD BUSINESS AFRICA

Industry Report: Grains & Milling Industry in Zambia EXECUTIVE INTERVIEW:

Michele Perchonok IFT President-elect iNDUSTRY FOCUS:

Special Report:

Craft Beer in Africa PERSPECTIVE

How FSSAI is reforming India’s food safety

MY FACTORY, MY STORY

Nairobi Bottlers Ltd

You can read this and past issues of this magazine for free on the website www.foodbusinessafrica.com

Sustainability in the food and beverage industry

Reach your audience in Africa’s industry. Take advantage of advertising opportunities in this issue Adverts deadline: January 15, 2018

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Weighed and measured to the point of perfection

Precision shouldn’t come at the cost of speed. Our world leading weighing technology combines fast processing with unparalleled accuracy and reliability. It’s how you can reduce your product giveaway while increasing your efficiency. Work in harmony with Ishida.

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CONTENTS

www.foodbusinessafrica.com Volume 4 Issue 6, No.27 • ISSN 2307-3535 FOUNDER & PUBLISHER Francis Juma ADVERTISING & SUBSCRIPTION: Jonah Sambai DESIGN & LAYOUT Kibiwot Bett

EDITORIAL 6

Zimbabwe’s new leadership must invest in agriculture and industry

EVENTS 10

Calender of events - A run down on the key industry events in Africa and the World

RELATED PUBLICATIONS

NEWS 12

Chobani rebrands, to build innovations centre

16

Bidco Africa opens juice and noodles plants in Kenya

17

Nestle to close its DR Congo factory next year

18

Mindful Choices to drive the food industry in 2018

19

Global Food Safety Initiative to open India unit to build local capacity

20

Coca-Cola HBC appoints new CEO Zoran Bogdanovic

PERSPECTIVE 26

Reforming India’s food safety and standards the FSSAI way

FOOD SAFETY 30

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

Zoning to manage chemical hazards in your facility

www.industrybusinessafrica.com 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 subscription for the other stakeholders in the food chain, including suppliers to the sector. Postage is paid at Nairobi, Kenya. Send address changes to FoodWorld Media Ltd by phone or email.

EXECUTIVE INTERVIEW 42

Dr. Michele Perchonok, IFT President Elect 2018/19

SUPPLIER & INNOVATIONS NEWS 44

Chr. Hansen launches probiotic culture to tap into kids market

44

Bühler Group introduces new digital rice analyser TotalSense

44

Ingredion Board of directors announces executive leadership changes

44

DSM, partner acquires majority stake in Chinese hydrocolloids business

Copyright 2017. 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.

COVER PHOTO: DUNCAN KIMANI, NAIROBI BOTTLERS LTD 4

NOV/DEC 2017 | FOOD BUSINESS AFRICA

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EDITORIAL

Zimbabwe’s new leadership must put interest of agriculture and industry first

T

he Mother Continent of Africa is going through some interesting and challenging times. Not only is Africa’s prospect looking brighter by the day, but also the political situation has improved quite noticeably from the 1960s, 1970s and even the 1980s when bloodshed and political strife was the order of the day. However, of late, the continent seems to be stagnating on its quest to put behind past ills by successive regimes across the continent, pulling down with it the substantial increase in agricultural production, manufacturing and trade that continues to grow in the Continent, be it with neighbours or with other continents. Across Africa, countries that have hitherto been the bedrock of the continent’s progress, like Kenya, Nigeria and South Africa are struggling with new challenges brought about by poor leadership. A longdrawn disputed election in Kenya has this year impacted Eastern Africa’s leading economy. In South Africa, allegations of ‘state capture’ by the regime stand in the way to a transition of power in 2019, when the next elections are slated to be conducted. In Nigeria, conflicts in the north and secessionist talk in sections of the south could derail Africa’s largest population’s quest to grow more local produce, boost local manufacturing and feed the region. And it is not just these three countries. Smaller countries including those in the Great Lakes region continue to struggle with instability that could eliminate any

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gains made over the last 20 years of largely, peace and stability. Perhaps one country that seems to have reversed the roles, from teetering towards a failed state to one with abundant hope for its citizens and to all people across the region is Zimbabwe. Having experienced a leadership transition in the month of November from the regime of President Robert Mugabe who was reviled by the West for having brought immense suffering to its people, a new regime lead by former deputy Emerson Mnangagwa is now in charge of the southern Africa country, once referred to as the ‘bread basket of the region’ for its abundant agricultural produce. We believe that the journey to reviving Zimbabwe as a country will start from the soil, that is agriculture, and the policies that govern agricultural production, food security and manufacturing. One statistic would suffice here: According to figures availed by USDA, between 1992-2001, Zimbabwe produced an average of 1.8 million tonnes of maize per annum. During the same decade span from 2002 to 2011, the country managed a significantly reduced average of 703,500 tonnes of maize per year, a drastic drop even if one was to account for periodic droughts that have hit the southern Africa region over the years. This year, the country has managed a high of 2.1 million tonnes, the highest figure since 1995, when it harvested 2.6 million tonnes. In contrast with the drop in Zimbabwe’s

maize production, neighbouring countries that used to rely on the country for food imports like Zambia, Malawi and Mozambique have done much better with their agriculture. Zambia has increased its maize production from a paltry 800,000 tonnes in 2001 to 3.6 million tonnes in 2017; while Malawi, despite its small size harvested 3.6 million tonnes in 2017 from 1.6 million tonnes in 2001. We urge the new regime in Zimbabwe to put emphasis on the agriculture and manufacturing sector, by eliminating restrictions and policies that had existed in the country, which strangled the vibrant economy of Zimbabwe. We appreciate and laud the recent announcement that indigenization laws do not cover the food processing and retail sector and other manufacturing industries. Removal of these restrictions will eventually remove the fears that have hung around the industry for a long time and give the desired boost to the country’s quest to be food secure, create jobs and prosperity across one of Africa’s most outstanding countries. Hundreds of investors continue to invest their money in Africa’s food processing and retail industry. It is high time that they set up shop in Zimbabwe to give the country the jolt it so requires and deserves. We wish you a good read Francis Juma FOODBUSINESSAFRICA.COM


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WORLD IN NUMBERS

UK

US$ 21.4B

Value of UK food exports in Jan-Sept period in 2018, with Ireland, France and US leading destinations

WORLD

US$16.8B 4

Projected value of plant-based dairy alternative drinks market in 2018, up from just US$ 7.4 billion in 2010

USA

US$300M

Investment by Tyson Foods in a new chicken processing facility in Tennessee

GHANA

US$37B CUBA

US$ 54M

Value of Nestle’s investment in a plant to for its Nescafe brand and other food products

Annual capacity of Cargill’s solar power plant in its Cocoa & Chocolate site, enough to power 400 homes yearly

NIGERIA

US$60M

Value of shareholding majority shareholders plan to buy out minority ones at Seven Up Bottling Plc

NIGERIA

US$250M

Value of investment in AB InBev’s new brewery in Sagamu, Ogun State in southwestern Nigeria

ANGOLA

400,000

Rice imports into Angola in tonnes, with the country producing 25,000 tonnes per year.

ZAMBIA

US$ 255.8 M

Turnover of Zambeef Products in the 2017 financial year to September, up 16.6% from a year earlier

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NETHERLANDS

US$ 384 M Value of Unilever’s acquisition of Tazo tea brand from Starbucks

EU

152.5M

SWEDEN

100%

Amount of biogas and green electricity that is used at Carlsberg’s Falkenberg brewery, reducing carbon emissions to zero

Tonnes of wheat forecast to be harvested in the EU-28 countries in the 2017/8 season, up by 7.5 million tonnes from 2016/17

CHINA

US$ 40B FRANCE

7,000

Value of infant nutrition market in the world, with China accounting for 45% of retail value

WORLD

815 M

Tonnes of infant formula that could be affected by a worldwide recall by dairy company Lactalis, possibly due to a Salmonella problem

Number of undernourished people in the World in 2016, up from 777 million in 2015

CHINA

US$ 145M

Amount to be raised by Nissin Foods’ instant noodle unit in an initial public offering to fund expansion

SAUDI ARABIA

495,000 MT

Amount of wheat imports into Saudi Arabia Feb-April 2018, part of 3 million planned for the year

INDIA

INDIA

Expected investment in India’s food industry by 2024 - study

Coca-Cola’s target sales figures for Thums Up soft drink brand by 2020

US$33B

30%

US$1B

ETHIOPIA

US$ 37 M

Amount paid to Ethiopian shareholders of East African Bottling Share Co. by SABCO to take over the company

ETHIOPIA

US$120M

KENYA

Amount spent by Ethiopia to import 400,000 MT of wheat this year

US$ 7 M

Amount released to retailer Uchumi by the Kenyan Govt this year to restock its stores

AUSTRALIA

41%

KENYA

Drop in Australian crop production in this year’s winter season, to 35.1 million tonnes due to lower average yield

US$68M

Loss registered by Mumias Sugar in the year ending June 30, 2017

DRC

KENYA

200M

TANZANIA

US$ 99.9 M

Planned investments in Kenya by retailer Choppies to open new stores in Kenya by end 2018

Revenue generated by Tanzania Breweries in the half year to September 2017, up 14% on last year

ZIMBABWE DRC

14,000

Reduction in volumes at National Foods due to bird flu outbreak that hit southern Africa, driving down Innscor Africa’s revenue

DRC MADAGASCAR

1600

Tonnes of vanilla pods projected to be produced in Madagascar in the 2017 season

NEW ZEALAND

15%

Extra cost south-east Asian consumers are willing to pay for products containing butter compared to those with margarine according to Fonterra,due to young, rich consumers rising.

SOUTH AFRICA

100

Number of Burger King outlets that could be opened in South Africa by franchisor Grand Parade, from 70 currently

FOODBUSINESSAFRICA.COM

B

Billion

M

Million FOOD BUSINESS AFRICA | NOV/DEC 2017

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CALENDAR OF EVENTS

January 31- Feb 3, 2018

February 18-22, 2018

April 25-27, 2018

Eurocarne Focus: Meat & Fresh produce Location: Veronafiere Exhibition Centre, Verona, Italy Tel: +39 045 8298 111 www.eurocarne.it/en/

Gulfood Focus: General food & beverage products Contact: Dubai World Trade Centre Location: Dubai, UAE www.gulfood.com

African Food Manufacturing & Safety Summit (AFMASS) Conference & Expo Kenya edition Focus: Food, Beverage and Milling Location: Nairobi Convention & Conference Centre, Nairobi, Kenya Contact: FoodWorld Media Ltd Tel: +254 725 34 39 32 Email: info@foodworldmedia.net www.afmass.com

February 1-3, 2018

March 14-15, 2018

World Cashew Convention Focus: Cashew nuts Location: Macau Tel: +91 9342840609 www.cashewconvention.com

European Food & Beverage Plastic Packaging Summit Focus: Packaging Location: Amsterdam, Netherlands Tel: +44 (0)20 3141 0641 www.wplgroup.com

February 2-6, 2018

March 12-14, 2018

Europain Focus: Baked goods Location: Parc des Expositions, Paris, France Tel: +33 04 78 176 351 www.europain.com

Snaxpo 2018 Focus: Snacks and confectionery Location: Georgia, USA Contact: SNAC International Tel: +1 703 836 4500 www.snaxpo.com

February 4-7, 2018 International Spice Conference Focus: Spices Location: Jaipur, Rajasthan, India Tel: + 91 9895 762 793 www.internationalspiceconference.com

February 7-9, 2018 Fruit Logistica Focus: Fresh produce Location: Berlin, Germany Contact: Messe Berlin www.fruitlogistica.de

February 14-16, 2018 African Fine Coffee Conference & Expo Focus: Coffee Contact: African Fine Coffees Association Location: Kampala, Uganda Tel: + 256 414 269140/1/7 Email: secretariat@africanfinecoffees.org www.afca.coffee

February 27-March 1, 2018 Propak East Africa Focus: Packaging Contact: Montgomery East Africa Location: Nairobi, Kenya Tel: + 254 704 523 835 Email: angelakinyua@eco.co.ke www.peopakeastafrica.com

March 20-23, 2018 Anuga FoodTec Focus: Food & Beverages Location: Cologne, Germany Contact: Koelnmesse GmBH Tel: +49 1806 578 866 www.anugafoodtec.com

May 13-15, 2018 International Conference on Nutrition and Food Sciences (ICNFS) Focus: Nutrition Location: Lisbon, Portugal www.icnfs.org

October 3-5, 2018 African Food Manufacturing & Safety Summit (AFMASS) Conference & Expo – Zambia edition Focus: Food, Beverage and Milling Location: Lusaka, Zambia Contact: FoodWorld Media Ltd Tel: +254 725 34 39 32 Email: info@foodworldmedia.net www.zambia.afmass.com

For event listings, contact us at info@foodworldmedia.net for consideration. Terms and conditions apply

AFMASS CONFERENCE & EXHIBITION GOES TO ZAMBIA!! The fast growing industry-focused trade show Africa Manufacturing & Safety Summit (AFMASS) Conference & Exhibition is expanding in 2018 with a new edition in Lusaka, Zambia. The event, planned for October 3-5, 2018 in Lusaka, Zambia is the first processing, packaging and food safety focused event of its type in the Southern-Central Africa region, and will bring together industry leaders, Government regulators, NGOs and suppliers to the industry to discuss the future of the food and agro industry in the region - while providing a platform to identify technologies required by the industry to do value addition, store and trade food and agro produce. AFMASS Zambia edition will bring together the stakeholders from Zambia, Zimbabwe, Malawi, Botswana, Mozambique, Angola, DRC, Tanzania and other African countries into Lusaka for three days of technical conferences, exhibitions and field vists to leading companies to share the future of the industry in the region. More information can be found at www.zambia.afmass.com

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NEWS MARKET TRENDS

Production growth, increased competition and technology to drive animal protein in 2018 WORLD - Animal protein production

is expanding around the world, and increasing competition between the species for share of consumer wallet and between exporters for access to import destinations is creating many areas of opportunity for both producers and processors, according to Rabobank Research’s Animal Protein Outlook for 2018. “Rabobank expects animal protein production to increase in all regions, with total production growth once again surpassing the ten-year average,” says Justin Sherrard, Global Strategist – Animal Protein at Rabobank. “This strong production increase is mainly being driven by Brazil, China, and the US.” In 2018, global beef production is expected to expand for a third consecutive year, and global pork production is expected to see another year of significant expansion. Poultry production is also expected to grow, but will be down slightly on 2017. In seafood, aquaculture continues to drive seafood supply growth. Sustainable

growth in the seafood industry solely depends on aquaculture, although we expect the wild catch industry to recover after El Niño recedes in 2017. Zooming in, the salmon market is recovering, fishmeal prices will stabilize, and the shrimp industry is likely to continue growing. While specific trade outcomes will also reflect growing demand, access issues and policy decisions, Rabobank expects trade to represent an important area of both opportunity and uncertainty over the coming year. Uncertainty in 2018 will come from the heavy overlay of politics in trade policy, such as the NAFTA negotiation, Brexit and the US-China trade relationship, and from biosecurity issues - such as Avian Influenza, African Swine Fever and EHP (a fungal infection in shrimp), which again appear susceptible to political involvement. “Trade should be the top-of-mind issue for global animal protein as we head into a new year, and enhancing competitiveness is going to be critical for success.”

Rabobank sees four other issues that will dominate the headlines for animal protein in 2018, increasing although uneven industry consolidation, the evolving retail landscape, alternative proteins, and technology. The evolving food retail landscape with more product options, and more velocity for instance due to blurring retail channels will bring new areas of opportunity, such as online fresh food sales in China, and more opportunities to strong and agile animal protein supply chains. Alternative proteins will grow further from their small base and continue to capture consumer interest in innovative food. At the same time, the animal protein production chain, and especially aquaculture, will focus on alternative proteins as an innovative feed ingredient. According to Rabobank, when it comes to innovation, data-driven technology is starting to deliver value along the animal supply chain. www.anugafoodtec.com

Internattionaal sup pplier trade fair fo for the fo ood aand drink indusstry

COLOGNE, 20.–23.03.2018

ONE FOR ALL. ALL IN ONE. Food Processing | Food Packaging | Safety & Analytics Food Ingredients | Services & Solutions

Koelnmesse GmbH Messeplatz 1 50679 Köln, Germany Tel. +49 1806 578 866 Fax +49 221 821-991020 anugafoodtec@visitor.koelnmesse.de


NEWS INVESTMENT

Chobani rebrands, lays ground on innovations centre, hints of going beyond yoghurt

USA – Famous Greek yoghurt processor Chobani has unveiled a new brand identity and launched new yogurts to commemorate ten years since it began national distribution, changing its visual identity with a new word-mark and packaging design with a goal of disrupting the yogurt category. Though famous for its industrychanging Greek yoghurt, the company has however broadened its scope over the last year, introducing Chobani Smooth regular low-fat yoghurt, after having grown the category from a market share below 1% at launch in 2017, to nearly half the US yoghurt market. The new brand identity has downplayed the Greek yoghurt branding, instead letting ‘Chobani’ the brand to stand out on the packaging. The rebranding exercise, says Peter McGuinness, the Chief Marketing and Commercial Officer of Chobani is to enable Chobani to stand out in an increasingly crowded yoghurt aisle. “It makes it confusing. There are too many SKUs and

too much similarity. “Virtually everybody’s copied us,” McGuinness told AdWeek. “I’m not here to pick on the competition, but it’s not been good for the category Meanwhile, the company has hinted that its may expand its scope as it enters the second decade of operation, with possibility of moving ‘beyond yoghurt’, details of which have not been released. The brand’s new identity merges with the broader positioning of the company as basically a wellness company, says the company’s CCO Leland Maschmeyer. “While our product is yogurt, our business has always been wellness - nutritional and community wellness, and how food can be a source of good in the world.” “As we approached ten years as a national brand, we spent the past ten years focusing on the impact our company can and does have on communities across America, using food as a force for good. That’s framing how we’re looking at the next decade, and our new packaging is the first glimpse

into that. It’s a beautiful translation of our brand and our purpose that moves us closer to becoming a food-focused wellness company,” added McGuinness. Chobani has also unveiled a new slogan – fighting for Happily Ever After – which is shaping everything from the brand’s packaging, website and campaigns to its cafés. The anniversary comes a few weeks after Chobani announced it would spend US$20 million to expand its Idaho yogurt plant, which will serve as the company’s global research and development centre. The 70,000-square-foot facility represents the future of U.S. manufacturing, with 30,000-square-feet of glass putting transparency and sunlight at the center of its design, says Chobani. It will also have a 2,000-square-foot fitness center where employees can exercise and a dedicated visitor entrance. Wellness rooms for new mothers will also be available throughout the facility.”

REGULATORY

India’s food safety authority to adopt technology to enforce food safety compliance Regulator to mandate food businesses to employ a food safety supervisor INDIA – India’s food safety regulator, the

Food Safety & Standards Authority of India (FSSAI) plans to boost its adoption of new technology to enforce its norms to bring consistency and transparency in its inspections and ensure compliance, its CEO Pawan Agarwal has said, reports ET Retail. The Authority will soon make it mandatory for all food businesses to employ food safety supervisor, he said, adding that the move would be a game changer and reduce compliance burden. The CEO believes that the adoption of technology will be key to its goals

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NOV/DEC 2017 | FOOD BUSINESS AFRICA

and has set up an IT platform to achieve efficiency and scale. “To reach scale, we need technology. We have started using technology in registration and licensing of the food business operators (FBOs). All our systems are IT-based,” he said. Agarwal said the authority has strengthened its internal IT team to ensure effective compliance of food safety law. He said the regulator has developed standardised testing methods and protocols for food products and launched the IT enabled Indian Food Laboratory Network (INFoLNet). All food labs, which are FSSAI notified, are submitting food testing reports online on this network, he added.

He also added that the FSSAI has created a smart and digital compliance system, which comprises a large-scale IT platform for Food Safety Compliance through Regular Inspections and Sampling (FoSCoRIS), which is being put in place for adoption across all States in India. He said the smart-phone based system is being tested in two states by the food safety officers and will soon be rolled out across the country. He reiterated that the regulator is partnering with other stakeholders, including corporates and consumer organisations, to achieve its mandate to make India’s food system safe and secure. FOODBUSINESSAFRICA.COM


APRIL 25-27, 2018

NAIROBI CONVENTION & CONFERENCE CENTRE OPPOSITE HILTON GARDEN INN

NEAR JOMO KENYATTA INT. AIRPORT MOMBASA ROAD, NAIROBI, KENYA

SAVE THE DATE FOR

Eastern Africa’s Largest Food, Beverage and Milling Industry Conference & Exhibition

MEET REGIONAL AND INTERNATIONAL SUPPLIES OF: Processing Equipment

Industry & Engineering Services

Packaging Equipment & Solutions

Supply Chain & Logistics Solutions

Laboratory & Food Safety Supplies

Grains & Commodities

FREE TO ATTEND TECHNICAL & COMMERCIAL CONFERENCES TO MANUFACTURING, RETAIL & FOOD SERVICE INDUSTRY MANAGERS

RELATED EVENT

REGISTER TODAY! Tel: +254 725 343 932 • www.afmass.com

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FOOD BUSINESS AFRICA | NOV/DEC 2017

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NOMINATE YOUR NEW PRODUCTS & PROJECTS AND INDUSTRY LEADERS FOR EASTERN AFRICA’S LEADING FOOD INDUSTRY AWARDS CEREMONY PRODUCT OF THE YEAR CATEGORIES Celebrates new products that stand out from the crowd for their innovative use of ingredients and packaging while meeting sustainability goals and consumer’s nutrition needs 1. Dairy Product of the Year Fermented Dairy Product of the Year Fresh & UHT Dairy Product of the Year Cheese Product of the Year 2. Milling & Cereals Product of the Year 3. Bakery & Snack Product of the Year 4. Chilled & Fresh Produce Product of the Year 5. Meat, Poultry & Fish Product of the Year

6. Beverages Product of the Year Alcoholic Beverage of the Year Soft Drink Beverage of the Year 7. Sugar & Confectionery Product of the Year 8. Processed Food Product of the Year 9. Most Outstanding Packaging of the Year 10. New Product with most Innovative use of Ingredients Award 11. Most Innovative SME Company of the Year

PROJECT OF THE YEAR CATEGORIES Celebrates new projects or expansion of existing facilities for their adoption of technology while meeting sustainability goals and improving company efficiency and community impact 1. 2. 3. 4.

Dairy Industry Project of the Year Milling Industry Project of the Year Bakery & Snack Industry Project of the Year Chilled & Fresh Produce Industry Project of the Year 5. Meat, Poultry & Fish Industry Project of the Year

6. Beverage Industry Project of the Year 7. Sugar & Confectionery Industry Project of the Year 8. Processed Foods Industry Project the Year 9. Animal Feed Industry Project of the Year

INDIVIDUAL AWARDS CATEGORIES Celebrates individuals who have over the years made noticeable contribution to the food and agriculture industry as investors, managers, academicians, researchers, policy makers etc 1. Industry Champion Award

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2. Person of the Year

www.awards.foodbusinessafrica.com

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Nominations open January 5, 2018. Open to companies and individuals in Kenya, Uganda, Rwanda and Tanzania. Eligible new products and projects must have been launched or commissioned from January 1, 2016 and December 31, 2017.

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FOOD BUSINESS AFRICA | NOV/DEC 2017

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NEWS INVESTMENTS

Bidco Africa opens juice and noodles plants in Kenya

KENYA – Bidco Africa has opened a new juice plant in Ruiru, Kenya in partnership with Danish soft drink manufacturer CORO, to fulfill its ambitions to serve the growing market in Eastern Africa. The new 11,000 square metre juice factory has two production lines, producing Suntop, a brand of fruit juices in four flavours, with room for further expansion in line with market demand and new products in future. The company has also commenced production in its noodles factory, producing its Noodies brand of noodles, joining the fast growing noodles market in the country. In the juice factory, the two companies have joined forces in a shared company called Bidcoro that seeks to succeed on the East African beverage market, that has been dominated by the likes of Del Monte, Kevian and Coca-Cola. “We are

excited to have CO-RO on board as this is a great milestone towards our growth and expansion plan. We both have a great heritage built over the years and are proud to be associated with the company,” said Bidco Africa Chairman Vimal Shah. The new plant is located just north of the capital city Nairobi at the Tatu City industrial park.It will provide Bidcoro with access to 16 East African countries and a market of 400 million people, greater than the entire European Union, say the companies. We are excited to have CO-RO on board as this is a great milestone towards our growth and expansion plan. We both have a great heritage built over the years and are proud to be associated with the company,” said Bidco Africa Chairman Vimal Shah.The new plant is located just north of the capital city Nairobi at the Tatu City industrial park’’.It will provide Bidcoro with access to 16 East African countries and a market of 400 million people, greater than the entire European Union, say the companies. “With our partner Bidco Africa we have built a new factory in Kenya. We are right now launching Suntop as our first product

– in four flavors and two sizes,” Søren Holm Jensen, President CO-RO said. “Suntop is our first product in Kenya, but over time we will launch more products and expand to more markets in East Africa. We get access to a market with 390 million Africans – and we hope East Africa in the mid-term will become one of our key markets,” he added. According to CO-RO, the partnership with Bidco Africa will complement the company’s strength and heritage in the juice industry around the world with Bidco Africa’s local knowledge and strong distribution network, enabling Bidcoro access to all the countries in Eastern Africa. “Both we and our partner are bringing special competencies to the shared company named Bidcoro. Our partner has a strong distribution network that can ensure availability in more than 40,000 Kenyan shops and access to neighboring countries such as Uganda and Tanzania. We bring high quality products, technology, and marketing excellence to the partnership,” said Søren Holm Jensen. The investment fits into Bidco Africa’s plans to be a US$1 billion company by 2021 through boosting its investments in new plants in a number of African countries.

TRADESHOW

Sign up to speak at Africa’s leading food industry conferences

KENYA – The Africa Food Manufacturing

& Safety Summit (AFMASS) Conferences & Exhibitions are seeking thought leaders to speak at the 2018 editions of the event to be held in Kenya and Zambia. AFMASS, which will celebrate 4 years in 2018 and started as a small food safety conference in 2015, has grown to be a respected forum for Africa’s food, beverage and milling to network, trade and learn the latest technologies and trends. In 2018, the events are planned to take place in Kenya (April 25-27, 2018) and Zambia (October 3-5, 2018). The events provide a platform for industry leaders, academicians, researchers

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and Government regulators and other food and agro industry stakeholders to learn the latest regulations and trends and postharvest, processing, packaging and food safety technologies focused on Africa. Prospective presenters are expected to make presentations covering technical, commercial and market trends at the industry-focused conference sessions at the event. The organisers are looking for presenters on the following issues, including food safety, quality & systems management; sustainability in the food and agro value chain; processing, formulations & trends of food, beverage and milled products and latest nutrition & health research and trends focused on Africa. Presenters are also encouraged to submit papers on post-harvest management, commodity markets and food security; packaging technologies and trends for the food & agro produce; and regulations and standards.

Conference sessions at AFMASS Conferences & Expos are primarily targeted at the key decision makers in the food, beverage, milling and animal feed manufacturing and the hospitality and foodservice sector in sub-Saharan Africa. FoodWorld Media, the publishers of the respected publication Food Business Africa magazine, are the organisers of AFMASS Conferences & Expos, are, which is distributed to most countries in sub-Saharan Africa. Those interested in participating as speakers at the conference sessions in Kenya and Zambia can reach the organisers on: Tel: +254 725 34 39 32 or email: info@foodworldmedia.net. More information about the two events can be found at www.afmass.com (Kenya edition) and www.zambia.afmass.com (Zambia edition). FOODBUSINESSAFRICA.COM


M&A

Retail behemoth Stainoff Africa acquires major stake at Shoprite chain SOUTH AFRICA – Listed special vehicle Steinhoff Africa Retail (STAR) has acquired 23% of the shares and a 50.6percent voting stake of Africa’s biggest food retailer, Shoprite, reports Business Report, exercising its the call options to acquire the retailer with a focus on growth in the rest of Africa as a unified retailer. “The implementation of the investment by STAR in Shoprite Holdings is subject to a number of conditions precedent, including various merger filings. Shareholders will be informed once all the conditions precedent for the implementation of the transaction have been met,” the company said. Star was founded in July, following the restructuring of Steinhoff ’s African retail assets and was listed in September in a

move to allow Steinhoff to issue shares to help fund the move for Shoprite. Star comprises retail chains including Pep,Ackermans,Timbercity,Pennypinchers, HiFi Corporation, Incredible Connection and Shoe City. The merger is the brainchild of Christo Wiese, South Africa’s fourthrichest person, witha fortune of about $5.7billion, says the Report. Wiese, who owns 16 per cent of Shoprite and 23 per cent of Steinhoff, plans to create the continent’s largest retailer by combining the African operations of Shoprite and Steinhoff. With operations in 15 countries with 2689 stores in South Africa, the new company will be seeking to grow tentacles in a market that has been hit with challenging times, for example in Kenya, but where Shoprite

grew its trading profit by 11.6% in its latest full year, showing its resilience in a tough market with huge potential. Meanwhile, the company has hinted that its may expand its scope as it enters the second decade of operation, with possibility of moving ‘beyond yoghurt’, details of which have not been released. The brand’s new identity merges with the broader positioning of the company as basically a wellness company, says the company’s CCO Leland Maschmeyer. “While our product is yogurt, our business has always been wellness - nutritional and community wellness, and how food can be a source of good in the world.”

DIVESTMENT

Nestle to close its DR Congo factory next year NIGERIA – Swiss food giant Nestle has announced that it plans to close its factory in Kinshasa, the capital of the Democratic Republic of Congo, reports Channel News Asia “We will close our factory and offices by the end of January and continue developing our economic distribution model through third parties,” a spokeswoman for the group told AFP. The decision affects 120 people

and Nestle will offer laid-off employees “a series of compensatory measures more favourable than required by local labour laws,” she said.Nestle has been in the country since 2009 and opened a factory producing Maggi stock cubes, but has posted losses ever since. The food giant’s investment of 15 million Swiss francs (US$15 million) was a boost to DR Congo, whichlike other

central African nations is seeking to grow its industrial base and move away from being merely an exporter of minerals. In October the Congolese affiliate of Dutch brewing giant Heineken, Bralima, announced its own restructuring plan, with a company official saying that “a complete overhaul is necessary if the economy is going to function.”

INVESTMENTS

Heineken lays foundation stone for new US$100 million Mozambique brewery

MOZAMBIQUE – The World’s number 2

brewery Heineken has laid the foundation stone to set up its first brewery in Mozambique, as it boosts its investments in Africa and other developing economies to cushion stagnant or slow growth in developed economies. This new brewery, valued at US$100 million is located in the province of Maputo, the capital city of the country. The brewery will have a production capacity of 800,000 hectoliters and make beers targeting the domestic market. The brewery is expected to commence production in the first half

FOODBUSINESSAFRICA.COM

of 2019, says Heineken. Heineken started its activities in the country in 2016 through a sales and marketing office, importing international beers into the country. According to Heineken, the construction of the company’s first brewery in the country is a major step forward for the company’s presence in the country, where it expects to create 200 direct jobs. “We are delighted to enter Mozambique, where we see promising long-term economic perspectives. Investing in a new market like Mozambique supports Heineken’s ambition to expand its footprint and be the number one or a strong number two in all markets in which it operates,”
said Boudewijn Haarsma, Heineken’s International’s Managing Director East & West Africa. This latest investment becomes Heineken’s latest foray into Africa, following the opening of its first brewery in Ivory Coast last year, where it has

announced to bring forward investments that will double its beer capacity, earlier than anticipated due to strong demand in the country.Heineken is also a recent entrant into Ethiopia’s rapidly growing beer sector, where its Walia brand has gained enthusiastic consumers as rising economies and increasing urbanization drives beer consumption across the country Blighted by civil war that continues to simmer, Mozambique could offer similar scenarios as Ivory Coast, where the company came into the market to face a monopolistic market structure led by Castel Group and has managed to cut its niche in a country also recently ravaged by civil war. In Mozambique, Heineken will have to contend with AB InBev’s stranglehold on a market where the brewing giant launched Africa’s first cassava beer, Impala, an affordable beer to quench the thirst of the country’s 30 million people. FOOD BUSINESS AFRICA | NOV/DEC 2017

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NEWS RESEARCH

Mindful Choices to drive the food industry in 2018, as lighter formulations shine USA - The increasingly thoughtful and mindful consumer will continue to catalyze changes in the way that companies produce, package and label their products, reveals a new study by research company Innova Insights. Dubbed ‘Mindful Choices’ by Innova, it is the leading trend in the company’s Top Ten Trends for 2018, where the company analyzed global developments in food and drinks launch activity and consumer research to highlight the trends most likely to impact the food and drinks industry over the coming year and beyond. According to the study, 40% of US and UK consumers increased their consumption of “healthy foods” and 70% want to know and understand the ingredient list. Further, 20% in US consumers are most influenced by “real” ingredients while ethical claims on packaging are top of mind, indicating that consumers are more conscious than ever about making responsible food choices. In response, food and beverage companies have responded by incorporating

better-for-you claims, with more than 49% of new products having some form of ethical claim this year, from 42% in 2012. “Today’s consumer displays a high level of mindfulness about well-being and the environment,” reports Lu Ann Williams, Director of Innovation at Innova Market Insights, “so it is no surprise that consumers are becoming increasingly mindful in their food choices, wanting to know what is in their foods in order to make decisions about health, sustainability and ethical issues.” Other trends identified by the study include lighter enjoyment, where as consumers continue to look for ways to eat and drink more healthily, lightness in terms of alcohol content, sweetness, flavor, texture or even portion size is increasing its appeal, although definitely not at the expense of a familiar, high quality and indulgent taste profile. A rising trend is the revival of traditional processes such as fermentation of foods and cold brewing of tea and coffee, as consumers become more concerned

about naturalness and minimal processing techniques. Consumers are having expectations that companies and brands will be more resource-smart via developments such as tip-to-tail eating, innovative uses for food waste and more biodegradable and renewable packaging, enabling the utilization of resources full circle. Innova also says that tea is set to make a strong resurgence after decades of domination by coffee. “While coffee is clearly trending among Millennial and Generation Z consumers, tea is also seeking to reinvent itself among the younger generations. With the taste and experiential associations of coffee and the healthy image of tea, the industry is increasingly using coffee and tea as ingredients and flavors outside the hot drinks and iced tea and coffee sub-categories across a wide variety of products as varied as energy bars, yogurt and jam,” says the study

INVESTMENTS

Afgri’s food unit to take aim at Africa, forms Mozambican JV poultry business

SOUTH AFRICA – Philafrica Food, a

recently launched subsidiary of agricultural investment holding company Afgri Group, says it plans to transform food processing in sub-Saharan Africa through investments of between R50m (US$3.66 million) and R100m (US$7.32 million) over the next 18

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to 24 months. Philafrica CEO Roland Decorvet told Business Daily that his company aimed to become a big food operator in Africa over the next 25 years in support of the continent’s transformation from subsistence agriculture to a food-secure net food exporter. Decorvet said the robust and growing demand from African consumers and global markets, and Africa’s vast tracts of uncultivated arable land meant African agriculture provided an “incredible” opportunity. The company intends to build green field sites and strategic investments in at least 12 sub-Saharan countries over the years to deliver on this ambitious goal. By 2030, said Decorvet, sub-Saharan Africa’s food and beverage market was likely to have tripled to US$1 trillion, with the middle class projected to grow from 123 million people to more than a billion by 2060, making it the fastest-growing middle class in the world. Meanwhile, the company has already set the ball rolling by investing in a new 50-50 joint venture poultry enterprise in northern Mozambique, Novos Horizontes, which is an integrated chicken producer

focusing on smallholder production, with the company’s parent company Afgri reentering the poultry business, which it had exited in 2015. “The company sees immense potential to replace imported products with local production in Mozambique and has secured a strong operating partner there with decades of experience in the poultry value chain.” About 60% to 70% of the poultry consumed in Mozambique is imported from South Africa, Brazil and USA, affecting local production. However, local production continues to rise, with 75,000 tonnes of poultry produced in 2016, from less than 6,000 tonnes a decade ago, according to Deutsche Welle. The South African Poultry Association said in a report that the African market for poultry was expected to grow rapidly, notes Business Daily. “What’s less certain is which countries will grow fastest and, more importantly, whether those countries will be able to develop and enforce trade policies that allow them to grow through their own production, rather than through imports from a range of potential countries,” it said. FOODBUSINESSAFRICA.COM


COOPERATION

Global Food Safety Initiative to open India unit to build local capacity

4 Good Reasons to be at AFMASS 2018 in Kenya & Zambia Reason #1

INDIA – The Global Food Safety Initiative (GFSI), which is

managed by France-headquartered international trade organization Consumer Goods Forum, is planning to establish an Indian arm to help build local food safety capacity which will help its member organisations avoid the same challenges some multinationals have faced in the country in the recent past. “India will be the seventh Local Group of GFSI that we are aiming to formalize early next year,” Mike Robach, Chairman of the board of directors of GFSI, told Mint. The core team of the GFSI India wing, which will have 20-25 members to start with, will have representatives from most of the firms that constitute the Board of GFSI. It will bring GFSI’s global practices to India and mobilize the local food industry, besides engaging with the regulator and other government authorities regarding food safety issues and practices followed by companies, said Robach. According to Mint, global food manufacturers want to avoid a fiasco like the one Nestle India Ltd, the local unit of the Swiss packaged food maker Nestle SA, had to face in 2015 after the regulator Food Safety and Standards Authority of India (FSSAI) declared a nationwide ban on Maggi Noodles over safety concerns. Global food companies such as Cargill, Nestle, Coca-Cola, Danone, Tesco, Metro Group and Amazon have come together in India to work with the government, the regulator and academia to ensure food safety. India is among the fastest growing markets for packaged goods. In 2015, cumulative revenue of fast moving consumer goods firms in India was about US$47.3 billion, which is predicted to cross US$103 billion in 2020, according to data by market research firm Statista. GFSI works around the World to improve food safety management systems across the world. It presently has six local groups in South Latin America, Mexico, Japan, China, Europe and US-Canada. The concept of local groups is part of GFSI’s plan to implement its global strategy at a local level and exchange local knowledge with the global team. Besides benchmarking of food safety schemes, enhancing food safety management systems, GFSI is currently working on bringing the farm-to-fork food supply chain under a food safety management system. In June 2007, eight major retailers—Carrefour of France, Tesco of UK, ICA Gruppen AB of Sweden, Metro AG of Germany, Migros of Switzerland, Ahold of Netherlands, WalMart of the US, and Delhaize of Belgium—agreed to follow a common food safety scheme benchmarked by GFSI.

FOODBUSINESSAFRICA.COM

FROM FOOD TO FEED INDUSTRY AND MORE . . .

www.afmass.com www.zambia.afmass.com FOOD BUSINESS AFRICA | NOV/DEC 2017

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NEWS INVESTMENTS

Zambian Breweries more than doubles capacity at Ndola brewery ZAMBIA – The Zambian Breweries Ndola plant has increased the production of its beverages by one million hectoliters (100 million litres) following the investment of US$30 million dollars, increasing its production capacity from 75 million to 175 million litres per annum. Head of corporate communications Exekiel Sekele told Lusaka Times that the company invested at the plant to sustain the growing demand of its products in the region.

“In the previous year, demand had outstripped supply, this lead the board of directors to approve the US$30 million investment into new production line to increase production and sustain the growing demand,” he said. Mr Sekele said the Market for Eagle lager had tripled in the last one year and projected that the mainstream brand would soon be at the same level with Mosi, Zambia’s leading beer brand.

IN NUMBERS 100 MILLION LITRES

ZAMBIAN BREWERIES NDOLA PLANT ANNUAL CAPACITY

STRATEGY

Tiger Brands eyes Africa expansion, with caution AFRICA – Diversified food products producer Tiger Brands is looking for acquisitions in the rest of Africa and will place more emphasis on due diligence than in the past, when several entries into Africa have led to the company retracting after painful experiences. CEO Lawrence MacDougall has said that the consumer goods group had a “clearer” acquisition strategy that focused on core product categories. Tiger had also “upweighted” due diligence considerations and would closely assess all aspects of target firms, including routes to market. In 2012, former CEO Peter Matlare led the acquisition of a 65.7% stake in Nigeria’s Dangote Industries. Successive losses prompted the company to sell the business back to tycoon Aliko Dangote in late 2015.

SOUTH

Tiger’s Chief Financial Officer, Noel Doyle, said the group was pursuing bolton deals – “which we’ve generally executed quite well” – and larger opportunities at the right price. “It’s just so tough to find value ” seller expectations are still very high,” Doyle said. Tiger’s strong balance sheet meant it had “significant capacity” for takeovers, he said. “We’re starting to build a pipeline and we might have something to talk about at the half-year mark next year, but there’s no imminent transaction,” he said. Tiger saw East Africa as an attractive market, Doyle said. The group also planned to manufacture some of its South African “power brands” in other African states, partly in response to trade tariffs and a lack of foreign exchange liquidity in certain markets.

PEOPLE

Coca-Cola HBC appoints new CEO Zoran Bogdanovic – Europe’s largest Coca-Cola bottler Coca-Cola HBC has announced the appointment of Zoran Bogdanovic as the Company’s new Chief Executive Officer. Bogdanovic succeeds Dimitris Lois who passed away in October 2017. He will also be nominated as an executive director on the Board of the company at next general meeting of shareholders. Mr. Bogdanovic, currently a Regional Director, responsible for operations in 12 countries and has been a member of Coca Cola HBC’s Operating Committee since 2013. He joined Coca Cola HBC in 1996 and has held a number of senior leadership positions, including as General Manager of the Company’s operations in Croatia,

SWITZERLAND

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Switzerland and Greece. “Following a thorough process and benchmarking exercise, the Board is delighted to announce Zoran’s appointment as Chief Executive Officer. Zoran has a track record of delivering results in diverse markets across our territories. His ability to bring out the best in people and apply innovative thinking to new challenges makes him the ideal choice to lead Coca Cola HBC through its growth era,” said Anastassis David, Chairman of the Board of Directors of Coca Cola HBC.

FOODBUSINESSAFRICA.COM


MARKET TRENDS

Private-label brands continue rise in the retail category in South Africa

4 Good Reasons to be at AFMASS 2018 in Kenya & Zambia Reason #2

MEETING PLACE FOR AFRICA’S INDUSTRY LEADERS SOUTH AFRICA - Improving consumer perceptions and greater focus by retailers to further develop the private label (PL) category, despite the tough trading conditions in South Africa have seen the private label category show an upward trend in the country. According to a study by leading research firm Nielsen, there is excellent growth potential within South Africa’s R43-Billion (US$3.2 billion) private label retail category, with the segment maintaining its growth rate, with its share of total sales climbing to over 20% in 2017. Although this represents a small 0.2% gain over the previous year, this growth is ahead of branded product sales and is expected to continue into 2018, says Nielsen, with the lower LSM 1-4 showing double digit growth and an increasing share of spend, compared to the higher LSM 7-10 markets, which already account for 50% of private label spend. This therefore provides an excellent opportunity for the growth of PL within the low to mid LSM groups, the study notes. “The fact that PL share has moved over the 20% share of sales mark also shows the country is more willing to try these brands. With more investment into these brands from retailers this trend is set to continue into 2018,” says Nielsen. “Private label products are no longer the poorer cousin of retail - they’re well researched, manufactured, and packaged. They reflect consumers’ appetite for private label brands, catering to their requirement of reasonably priced but quality products, offering a wide range similar to branded products.” The study shows that consumer perception around the quality and value of PL products is improving driven by increased innovation and differentiation in the category as compared to a few years ago, it adds. Overall, the biggest incremental gains have occurred in food categories, with staples showing high value growth. Long-life milk has passed individually quick frozen (IQF) chicken as the biggest PL category in terms of value sales. The study found that in terms of purchase drivers, quality and value drivers are more favourable. One of the biggest movers in 2017 are frozen prepared meals, with 25% annual value growth. FOODBUSINESSAFRICA.COM

Hundreds of industry experts, Government regulators, technology suppliers and other industry stakeholders from Africa and the World come together every year at AFMASS Conferences & Expos where they network, trade and learn the latest technologies and trends in Africa’s industry. Delegates at AFMASS events gain industry insights, meet new and old industry acquintances and interact with industry leaders from the region for their personal and business growth. Sign up today on the website to participate at the next conferences and exhibitions today.

www.afmass.com www.zambia.afmass.com FOOD BUSINESS AFRICA | NOV/DEC 2017

21


NEWS INVESTMENTS

Nestlé invests US$ 54m in new Nescafé and beverages plant in Cuba

CUBA – The world’s biggest food ad beverage company Nestlé is investing US$54.4 million in a joint venture in Cuba with local company Corporación Alimentaria, S.A. (Coralsa). Located at Mariel city, a port city an hour’s drive from the capital Havana, the plant will produce the Nestlé’s coffee brand Nescafé, local Cuban roast and ground coffee brand Serrano, Nestlé Fitness cereal based snacks, Nesquik powdered beverage, as well as Maggi

cooking aids. The parners have started the construction of the food production plant in the Mariel Special Development Zone (ZEDM), which will employ 260 people at the time of opening in 2020, with annual production capacity of 18,500 tons in total, for local consumption and export. “This new factory will help meet growing consumer demand and further strengthen our presence in Cuba. Local production capacity combined with Nestlé’s know-how will benefit the local food industry and create new chances for growth,” said Laurent Freixe, CEO, Nestlé Americas.

“This production plant represents a great opportunity to develop new categories with high demand in Cuban market. We seek to offer products with nutritional value, in coherence with our Nutrition, Health and Wellness strategy, while expanding the business in the region,” Harold Hoffmann, Country Manager for Cuba, said. Nestlé, which has been present in Cuba since 1908, produces mineral water, carbonated soft drinks and ice cream at two other plants in the country, both joint ventures with Coralsa. The company reveals that it has seen tremendous growth in the country over the last few years.

MARKET TRENDS

E-commerce sales of groceries grew by 30% in 2017 – study

WORLD – The global sales of groceries through e-commerce platforms grew by 30% in the 12 months to March 2017, according to a new report by Kantar Worldpanel. According to the report, online sales value increased by 52% in China, 41% in South Korea, 8% in the UK, 7% in France and 5% in Japan and the US. A report published last year revealed China’s online FMCG market has reached a value of more than $25.3 billion, making it worth more than the American and

British markets combined. Known for its attachment to large format hypermarkets, online grocery penetration has increased rapidly in the US in recent months, reaching 30% of the total population. Annual spending on food and alcohol through e-commerce in the US is this year predicted to reach US$20 billion. While online grocery growth has been in developed economies, the sector is also expanding into new markets, where there has been significant value growth, for example, in Thailand (+104%), Malaysia (+88%) and Vietnam (+69%) where e-commerce is in its early stages. In Latin America, e-commerce is lagging far behind traditional methods of shopping, with an exception of Argentina, where e-commerce is growing compared to the rest

of the region. Kantar Worldpanel said the lack of trust in payment methods coupled with the overwhelming popularity of discount formats makes Latin America one of the most difficult regions for brands to succeed in the online world, as the e-commerce has been lagging behind traditional methods of shopping. “The fourth annual Future of E-commerce in FMCG study shows that e-commerce now accounts for 4.6% of all FMCG sales,” said Stéphane Roger, global shopper and retail director at Kantar Worldpanel. “Whilst the e-commerce channel is growing, the FMCG market as a whole is sluggish, increasing just 1.3% during the same period.” Kantar Worldpanel projections also showed that by 2025, online FMCG will be grow to US$170 billion, with a 10% total market share worldwide.

INVESTMENTS

India’s food processing sector to get US$33b investments by 2024 INDIA – India’s food processing sector has the potential to attract US$33 billion investment by 2024, according to a study released recently, reports ET Retail. The country’s food and retail market is expected to reach US$482 billion by 2020, up from US$258 billion in 2015, with recent reforms making the sector more competitive and market- oriented, the report said. “There is a huge scope for large investments in food processing technologies, skill development and equipment as total food production in India is estimated to double in next 10 years,” said the joint study done by Indian industry body Assocham 22

NOV/DEC 2017 | FOOD BUSINESS AFRICA

and professional services firm Grant Thornton. As a result, the food processing sector in the country has the potential to attract US$33 billion investment and generate employment of 9 million persons days by 2024, it said. While the sector provides opportunity for growth, the study suggested that it needs to focus on product conformity with global standards and quality together with factors like logistics traceability and safety, quality of packaging and delivery. “There is a need for policy intervention and field level changes for India to develop global competitiveness in many related

sub-sectors and ensure that they are firmly entrenched in global value chains,” the report adviced. Fast growth in food processing and simultaneous improvement in the development of value chain are of great importance to achieve favourable terms of trade for India s agriculture sector both in domestic and international markets.

IN NUMBERS

US$33 BILLION INVESTMENT BY 2024

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SUSTAINABILITY

Cargill opens solar facility at its Ghana site to modernize renewable energy infrastructure

4 Good Reasons to be at AFMASS 2018 in Kenya & Zambia Reason #3

ALL-IN-ONE INDUSTRY SOLUTIONS’ MARKET PLACE

GHANA – Leading US agribusiness giant Cargill has opened a new solar power facility at its Cocoa & Chocolate site in Tema, Ghana. The new solar plant is a fully automated, digital photovoltaic solar system, according to Cargill and augments energy needs at the site, boosting Ghana’s renewable energy portfolio by producing 764MWh of electricity annually. The solar energy produced at the plant is equivalent to powering nearly 400 homes with electricity for a year, says Cargill. The solar project consolidates Cargill’s continued support towards a sustainable cocoa business in Ghana. “Cargill sets ambitious targets every five years to reduce greenhouse gas intensity, improve energy efficiency and increase renewables as a part of our portfolio. One of those targets is to increase renewables to 18% of our global energy portfolio by 2020. Today, 14% of our energy needs are met by renewables, and this solar project will help us realize our 2020 goal,” Pieter Reichert, Managing Director of Cargill Cocoa and Chocolate in Ghana, said at the launch. The company has also implemented a number of environmental initiatives at the Tema site, including the installation of LED lighting, an energy-efficient grinding facility and a biomass boiler, which have collectively reduced energy consumption by 32% reduced CO2 emissions by 71%, achieving 66% renewable energy generation. According to Cargill, the facility has LED lighting and PV solar installations mounted in an open field ground mount system of 413KWp and a car-port system of 152KWp. A total of 2,136 solar panels were used, each with a capacity of 265Wp.

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Leading regional and international suppliers of equipment, chemicals, ingredients, food safety & laboratory systems, packaging, industry services and more converge at AFMASS Conferences & Exhibitions each year to showcase the right technologies to take Africa’s industry forward. AFMASS events provide solutions to both the big and small-scale industry players, better than any other event. Looking for supplies for your next project? Seeking partners or distribution opportunities with international or regional brands? Visit the website today to sign up to attend the conferences and exhibitions today.

www.afmass.com www.zambia.afmass.com FOOD BUSINESS AFRICA | NOV/DEC 2017

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NEWS PEOPLE

Tim Pollock to become MD as Carl Irwin to retire from Zambeef in 2018

ZAMBIA – Leading Zambia-based agribusiness and food manufacturer and retailer Zambeef Products has announced that its Joint Chief Executive Officer Dr. Carl Irwin will retire from the business in March 2018, as part of a restructuring

exercise of its top executive managers. Dr. Irwin founded Zambeef in 1994 together with Francis Grogan, who will take over the CEO role on a temporary basis. He has been with the company for more than 23 years. Tim Pollock, Investment Director for Food & Agriculture for CDC Group, has resigned from CDC and will join Zambeef on January 1, 2018, initially as Group Managing Director. He will subsequently take over the Joint Chief Executive Officer role from March 31, 2018, taking over Dr. Irwin’s role after appropriate regulatory approvals. He has been a Non-Executive Director of the company since September 2016. CDC holds 17.5 percent of Zambeef Product’s ordinary share capital. Zambeef is one of the largest and most successful Zambian companies, with operations beyond the region, in Ghana and Nigeria, and export markets to a number of

African countries. It is listed in both the Zambia and London stock exchanges. Dr. Irwin and the Joint CEO Grogan have been hailed for growing Zambeef from a small butchery business into the region’s greatest success stories, with 197 retail outlets throughout Zambia and West Africa and more than 7,000 employees. The company has also announced that Mike Lovett, General Manager of the Cropping Division, has been appointed Chief Operations Officer and Director of Agriculture, while Walter Roodt, General Manager of the company’s Novatek Stockfeed Division, has been appointed Deputy Managing Director. Walter will also lead the implementation across the company’s Cold Chain Foods Division of a food safety management system and certification to ISO standards.

NUTRITION

WHO report highlights rise in malnutrition, obesity in Africa, decries data gaps AFRICA – A newly released nutrition report by the World Health Organization (WHO) Regional Office for Africa has revealed that under-nutrition is still persistent in the Continent, while the number of stunted children has increased and a growing number of children under five years old are overweight. The Africa Nutrition Report, which was launched in Abidjan, Ivory Coast, describes the current status in relation to six global nutrition targets that member states in the continent have committed to achieve by 2025, and underscores findings from the recently released Global Nutrition Report. The Report, the first of its kind by WHO in the African region uses data from national surveys of 47 countries dating from 2000, as well as joint malnutrition estimates published annually by UNICEF, WHO and the World Bank. The report also raises the alarm on critical gaps in the nutrition data available across the countries in Africa. For 19 out of the 47 countries, the ‘current’ nutrition data reflects the situation in 2012 or earlier. In two countries, the most recent surveys were done before 2000. “The numbers and trends highlighted in the report show that we need to work 24

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harder to avoid the long-term consequences of malnutrition and poor health on our children’s future prosperity, including the increased risk of diet-related noncommunicable diseases such as diabetes and hypertension,” said WHO Regional Director for Africa, Dr. Matshidiso Moeti. The Report points out that while the prevalence of stunting decreased between 2000 and 2016, the absolute numbers of stunted children actually increased from 50.4 million in 2000 to 58.5 million in 2016, with devastating long-term consequences on Africa’s children and later on, adults, while harming economic growth. Dr. Adelheid Onyango, WHO Africa Adviser for Nutrition and the lead author of the report, says while overweight rates in children might still be low, the proportion and numbers are increasing in all age groups in the continent, with overweight issues affecting about 30% women, with rates of over 40 percent in Gabon, Ghana and Lesotho. The Report finds that many countries in the African region still have wasting rates above the target of 5 percent or below, with some countries in critical situation: Eritrea (15.3%), Niger (18.7%), and South Sudan (22.7%).Overweight numbers increase

significantly Estimates by UNICEF, WHO and World Bank in 2016 show that the number of overweight children in Africa increased by more than 50 percent between 2000 and 2015, with 24 countries having rates between 3 and 10 percent. Algeria (12.4 percent), Botswana (11.2 percent), Comoros (10.9 percent), Seychelles (10.2 percent), and South Africa (10.9 percent), however, have much higher rates than the rest of the continent’s population. “African Governments can, and should, take measures to prevent and reduce under-nutrition by creating favourable environments for improved infant and young child feeding, improved water supplies and sanitation, and offering healthier foods in schools among other measures,” said Dr. Francesco Branca, Director of the Nutrition Department at the WHO. Dr Branca emphasized the need to reduce consumption of refined carbohydrates and foods high in sugars and fat, which can be achieved by making sugary drinks less affordable and less appealing through taxation, labelling, and changing marketing practices. FOODBUSINESSAFRICA.COM


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PERSPECTIVE

Reforming India’s food safety and standards the FSSAI way

How the regulator is upgrading regulations and collaborating with food companies to modernize testing standards for food safety India’s food safety regulator has been in the headlines during the last few years on its efforts to streamline food safety compliance in the country, often blamed by the industry players for being unfair and abrasive in its approach. Then entered a new Chief Executive Officer Pawan Kumar Agarwal, who has been credited with turning around the approach of the organisation in delivering its mandate, with impressive results. This article first appeared on Mint. instant noodle. This led to the product being withdrawn from the market for five months. Yet now the relationship has been turned on its head, and India will seek guidance from Nestle on food safety standards and testing methods.

From administrator to friend

Chief Executive Officer Pawan Kumar Agarwal

I

t was an unexpected handshake. On 6 September (2017), Food Safety and Standards Authority of India (FSSAI) agreed with Nestle India Ltd to establish a food safety institute in India that will train officials of FSSAI as well as other companies in food safety. A little more than two years ago, FSSAI had accused Nestle India of selling unsafe instant noodles. The Manesar-based Nestle Food Safety Institute was inaugurated by FSSAI Chief Executive Officer Pawan Kumar Agarwal. The institute, a replica of the Swiss company’s units in China, and Lausanne, Switzerland, will conduct training programmes on food safety management 26

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systems, testing methods and regulatory standards in India. The idea for the partnership, which Agarwal termed a “well-thought strategy,” came in February, when top officials of Nestle India visited Agarwal’s office. The meeting ended with an agreement on the initiative that would help the company mend fences with India’s food regulator, a tribute to Agarwal’s open mind as he sought ways to engage with food multinationals, even while aiming to ensure marketed food was safe for every Indian. In June 2015, the regulator had questioned the safety standards of Nestle’s flagship brand in India, Maggi, the popular

Regulators are typically not friendly with corporate entities. A regulator’s job is to keep companies under its ambit in check. So what led to the change in FSSAI’s mindset? “If you want to ensure food safety, you have to work with them (companies),” said Agarwal. “You can’t fight them. We can engage with them not only to improve their own practices, but to improve the entire ecosystem. That’s been our approach. Make them more responsive. A healthy, trustworthy relationship is required between the regulator and the companies and other stakeholders.” When Agarwal took charge of FSSAI in December 2015, the food regulator was seen as a prosecutor, especially by multinational firms. Importers as well as foreign companies with manufacturing units in India suspected the administrator of being biased in favour of Indian companies. But consumers were happy the regulator had begun to take erring companies to task - something it hadn’t really done since its inception in 2011, until Yudhvir Singh Malik, Agarwal’s predecessor, banned manufacturing and sale of Nestle India’s largest revenue-earner, Maggi instant noodles, on 5 June 2015, citing the alleged presence of monosodium glutamate and excess lead. Malik did not respond to queries from Mint for this story. Until then most consumers were not aware of FSSAI. But once the Maggi controversy hit the national headlines, consumers started checking FSSAI labels on food packets before buying them. For the next six months, FSSAI stayed firmly FOODBUSINESSAFRICA.COM


in the news, courtesy the courtroom battles between Nestle India and the food regulator.

Mending fences

In August 2015, Nestle appointed Suresh Narayanan, then chairman and CEO of Nestle Philippines Inc., as the boss of its India business, in a bid to stem the crisis. His primary mandate was to bring Maggi noodles back to retail shelves. To do this, Nestle had to make the regulator understand that Maggi was safe. This required an engaged discussion between Nestle and FSSAI, but the regulator was not keen to mend fences. Even as the court battles continued, Nestle reached out to the government in every possible way.

“IF YOU WANT TO ENSURE FOOD SAFETY, YOU HAVE TO WORK WITH THE FOOD COMPANIES. YOU CAN’T FIGHT THEM. WE CAN ENGAGE WITH THE TO IMPROVE THEIR PRACTICES AND THE ENTIRE ECOSYSTEM. THAT HAS BEEN OUR APPROACH.” On 8 July 2015, food processing minister Harsimrat Kaur Badal slammed FSSAI at a conference organized by the Confederation of Indian Industry, accusing it of “creating an environment of fear” and hurting foreign investments in the food processing sector. At the time, Badal’s father-in-law was Chief Minister of Punjab, where Nestle has its oldest factory in India. Malik and his team, on the other hand, continued their analyses of packaged food brands, especially the ones sold by multinationals. State food safety departments joined hands. Nestle started taking measures to tackle the mess. It communicated with every stakeholder— the regulator, government authorities, consumers and the media. FSSAI did not pay much heed. Nestle reached out to Badal. “She was the only person who was open to discussion,” said a person who was part of the team that met Badal. “She understood the company’s seriousness about food safety and other things.” The person didn’t want to be named. The narrative started to change for Maggi. In September 2015, a month after FOODBUSINESSAFRICA.COM

the Bombay High Court overturned the ban, Malik was shifted to NITI Aayog as additional secretary. FSSAI got its next CEO only in December. In the intervening period, Nestle successfully re-launched Maggi noodles in the market, but only after a massive recall, in which 38,000 tonnes of packaged noodles were destroyed. Narayanan needed to do one more thing: mend fences with FSSAI.

Building public confidence

After taking over as Chief Executive of FSSAI, Agarwal’s priority was building public confidence that food available in the market was safe for consumption. In the next few months, Agarwal, who says his views align well with FSSAI’s chairperson Ashish Bahuguna, abolished product approval—a process that every company questioned. Instead, Agarwal started setting standards for each product category, emulating international regulators. His agenda was simple: establish FSSAI as a trustworthy regulator for both citizens and food companies. He wanted to streamline regulations: reduce the regulatory burden on food companies, ensure single-window clearance for food importers, and make inspection risk-based, where “everything needs to be tested.” Agarwal believes that big businesses will maintain food safety in self-interest, as they will not risk damage to their reputation. To build confidence in his agency among consumers, Agarwal expanded the regulator’s vision, focusing on various kinds of edibles and potables: the quality of street food, food at restaurants, prasadam (A devotional offering made to a god, typically consisting of food that is later shared among devotees: Oxford Dictionary) available at shrines, tap water provided by the government, food served by Indian Railways. They examined the packaging and labelling of food products. The food items consumed by the citizens daily finally came under the FSSAI lens. “My concern is that the overall culture of food hygiene in this country is not so good,” Agarwal said in an interview on 13 April 2016. “We need to bring behavioural changes in society, and work with small and medium businesses to improve standards.” Every day, for more than a year, FSSAI notified multiple standards of food products and regulations for food businesses. It then shifted the focus to ensuring nutritious food, by educating every citizen about safe food. Agarwal also started revamping the

IN NUMBERS US$75MILLION FUNDING TO BOOST FOOD TESTING INFRASTRUCTURE infrastructure of food testing laboratories. It was clear that a different FSSAI was coming into its own.

Not just Nestle

Agarwal was different from his predecessors in that he did not favour an adversarial approach. Soon after he took over as CEO he began to share public forums with corporate leaders. At first, these discussions were focused on how the FSSAI can extend food safety to every Indian. Agarwal started announcing partnerships with multinational companies that he believed would ultimately ensure food safety. On the 10th anniversary of the Food Safety and Standards Act, Agarwal announced a 10-point agenda to ensure safe food in all places, including homes, schools, offices, eateries, even religious places. On 28 March this year, FSSAI formally signed a memorandum of understanding with American beverage maker Coca-Cola Co. Under the agreement, the local entity of the beverage-maker will train 50,000 street food vendors, over a period of three years, on how to prepare safe food, ensure hygiene and manage waste. In addition, FSSAI inked a deal with Nestle India to train 700 street food vendors in Goa. “We are also working with companies like ITC Ltd, Mondelez India, Tetra Pak, Jubilant FoodWorks, Yum! Brands, among others, for different projects related to nutrition and food safety,” Agarwal said. Kolkata-based ITC has been working with FSSAI to ensure nutritious food in about 10,000 schools. Mondelez India Foods Pvt. Ltd does the same at 40 underprivileged schools in north Delhi, as well as looking at points of sale in the retail market. Then came the Nestle Food Safety Institute. “Nestle Food Safety Institute will conduct training programmes on food safety management systems, testing methods and regulatory standards,” Agarwal said after he inaugurated the institute, the first of its kind FOOD BUSINESS AFRICA | NOV/DEC 2017

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PERSPECTIVE

in India. “Partnerships with private parties on food safety and standards are imperative for FSSAI. This is our effort to implement a first world regulatory ecosystem in India.” Narayanan believes that creating the institute is a milestone. “Nestle can also help with its global expertise in areas of food science,” he said, “which will help FSSAI in taking informed decisions while formulating regulations.”

Reactive corporations

A lot of FSSAI’s actions are in line with how corporations think. In an interview in February this year, Narayanan said: “The relationship with FSSAI is professional. Things are better, in general. The regulator has been putting practical views. The hope is that these get translated into momentum.” Most spokespersons of food firms refrained from criticizing FSSAI, but a few, on condition of anonymity, said it favoured some Indian companies, such as yoga-guru-turned-businessman Baba Ramdev’s Patanjali Ayurved Ltd. Agarwal insisted that most Patanjali products do not fall under the ambit of FSSAI. A Patanjali spokesperson echoed this view, saying that most of its products fall under the ambit of the ministry of Ayush, and that FSSAI does not have set standards for the ones that could fall under its purview. T. Krishnakumar, president (India and south-west Asia), Coca-Cola, said life is easier when companies and the sector regulator work in a “collaborative manner”. “The dynamic leadership of FSSAI has been focusing on ensuring the highest standards of foods safety for over a billion Indians,” said Hemant Malik, divisional chief executive, foods division, ITC Ltd. “It has also proactively engaged in consultations with all stakeholders, including the industry, in several issues related to food safety, nutrition, fortification, hygiene and others. We are encouraged to see FSSAI play a pioneering role in taking all industry participants on board in its common mission of ensuring a healthier India.” But not everyone is happy with FSSAI’s willingness to collaborate with companies. “There’s no doubt that the current CEO is better than all the previous ones,” said a top executive of a food company, asking not to be named. “But lately the regulator is asking companies to invest more and more in things which the regulator should do on its own. There’s a limit to how much a company can invest in social initiatives.” 28

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Towards a larger goal

Agarwal has big ambitions. “Every morning when I get up, I say, my responsibility, and the responsibility of the authority where I work, is to ensure safe and nutritious food for (1.3 billion) citizens,” he said. “You start with the bigger vision and translate that into small implementable activities and you’ll automatically reach there. Our vision is to ensure safe food for citizens, not to make lives difficult for food businesses”. Under Agarwal, FSSAI wants to develop a system that encourages food businesses to innovate and bring new food products into the market. It also wants to do away with unnecessary processes. “We have changed a few things and are working towards creating an FSSAI interface that every citizen can understand.” Agarwal wants to set comprehensive standards. He has accelerated the process of setting standards with the help of scientific panels and international references, creating standards where they did not exist. “Standard setting is a dynamic, ongoing process,” he said. “Something is always better than nothing. Setting fresh standards take a lot of time. Codex references are helpful and can be used as standards until we come up with our own.” Codex references are standards, codes of

practice, guidelines on food, food production and food safety that are recommended by The Codex Alimentarius Commission, a joint intergovernmental body of the Food and Agriculture Organization of the United Nations and World Health Organization. FSSAI’s aim is to operationalize standards without compromising public health and public safety. Of course, there are problems in the formative stages. In the first five years, systems were just being established. “There were issues with product approval, which was taking too much time and effort of the authority. We found that product approval processes can be simplified and even done away with in many cases. They are only to be used in cases where there is a concern with safety.”

Strengthening surveillance

The biggest challenges for Agarwal were to ensure proper inspection and stop the misuse of power. At the time of his appointment, FSSAI’s inspection capacity was very limited, he says. There are about 18,000 food safety officers in the US and about 6,000 officers engaged in food inspection in Canada. These are all federal staff. In contrast, FSSAI did not have a single food inspector in its employ. “In India, we depend on food safety officers FOODBUSINESSAFRICA.COM


Authority will finalize short courses and conduct training. FSSAI has decided to standardize the procedures around inspection. State-level food safety inspectors will have to follow centrally set standards. Agarwal has also restricted state-level food inspectors from divulging details to the media. Only FSSAI can do so. “Misinformation can cause real reputation damage to brands,” he added.

Making tests flawless

in the field,” Agarwal said. “There are wide variations from state to state. This is a challenge that we are trying to address as we move forward. We are working with state governments, persuading them to have adequate number of food safety officers. We’ve made some progress.” FSSAI is also building its own team of food inspectors. “A small number initially, we can’t ask for 16,000-18,000 people.” Agarwal said. “We have to be reasonable and look for a staff of a few hundred. We are building numbers at FSSAI headquarters and at regional offices.”

“FSSAI HAS PROACTIVELY ENGAGED WITH THE INDUSTRY ON FOOD SAFETY, NUTRITION FORTIFICATION & HYGIENE.” Hemant Malik, divisional chief executive, foods division, ITC Ltd

But FSSAI’s priority is to slowly inculcate self-regulation. Towards this, the agency recently finalized regulations on third-part audit of food businesses, and has asked the units to have at least one food safety expert trained. Educational institutes and the National Skill Development FOODBUSINESSAFRICA.COM

Agarwal is also overseeing the modernization of food testing laboratories across the country. The regulator, which owns and operates two laboratories and has approved 82 others in various states, recently allocated Rs 482 crore (US$75 million) to strengthen the food testing infrastructure, including upgrading and modernizing laboratories. Under this scheme, 45 food testing laboratories across the country and 14 referral food testing laboratories will be upgraded, enabling them to obtain accreditation from National Accreditation Board for Testing and Calibration Laboratories (NABL). Besides, FSSAI will also set up 62 mobile testing labs. There are currently four mobile food testing labs in Punjab, Gujarat, Kerala and Tamil Nadu (states).

Building partnerships

Over the past 19 months, Agarwal has established standards and won the trust of corporations. FSSAI has begun working closely with several ministries, especially towards skill development. It is also ensuring that fortified staples are served in the national government’s midday meals scheme. The food regulator was also instrumental in ensuring that a bill proposing much-needed amendments to the Food Safety and Standards Act, 2006, was placed before Parliament. Despite all this, the Comptroller and Auditor General of India (CAG) began looking at FSSAI. Late in 2016, CAG decided to conduct a comprehensive performance audit, a process that continued for months. CAG’s audit examined how FSSAI fixes standards, finalizes regulations, approves products, ensures compliance and conducts surveillance. The audit results are awaited. “It was a routine exercise,” said Agarwal. “It wasn’t just FSSAI. The audit includes the food safety offices of the states. This is not a matter of concern. Rather, what comes

out of the report will help us improve our work.”

Look beyond the US

To set standards and regulations, FSSAI primarily follows the example of the US Food and Drug Administration. Experts say this is not enough. Earlier this year, FSSAI requested the Global Food Safety Partnership (GFSP), a public-private initiative of the World Bank Group, to advise it on international engagements. Donald Macrae, senior consultant on regulatory reform, World Bank Group, submitted a report in July arguing that FSSAI needs to look beyond food regulations in the US and learn from middle-income countries such as Vietnam and China. Only this will ensure food safety across the country. “Most of its (FSSAI’s) partnerships have been with developed countries but it has much to learn from other middle income countries that are facing similar issues at present or have faced them recently and moved through them,” Macrae said in the report. The report lists the areas India can benefit from others’ examples. FSSAI can learn about the impact of slow urbanization, and how to help significant rural populations, from countries like Vietnam. It could learn how to scale up from China. FSSAI should emulate the UK in matters like regulatory delivery, third-party certification, risk-based inspection and planning, consumer focus and trust. It should look at the Netherlands and New Zealand for risk communication and compliance support. “For FSSAI, the regulatory objective is to ensure a supply of safe and wholesome food, not to ensure a revenue stream of fines for violations,” Macrae said in an emailed response to queries from Mint. “Punishing those who do not comply because of capacity issues does not solve their capacity issues or deliver safe and wholesome food.” Under Agarwal, said Macrae, FSSAI is focusing on the new approach of “supporting those willing to comply, in order that their challenges in complying are overcome and they then deliver safe and wholesome food. This focus is in line with what is happening across the world and FSSAI is being truly innovative in tackling this new approach,” he added This article first appeared in Mint. Reproduced with thanks. FOOD BUSINESS AFRICA | NOV/DEC 2017

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FOOD SAFETY

Zoning to manage chemical hazards in your facility MIXING

FILLING

BLENDING WAREHOUSE

PACKING

A well-laid out factory floor ensures the risk of cross-contamination is eliminated. Image courtesy: CRC Industries

T

he concept of managing cross contamination is a foundation principle in an effective food safety management system. Chemical products can cause cross contamination if not managed correctly in a food facility. The reality is that not all chemicals can be completely excluded from a food facility. Cleaning chemicals and other industrial chemicals such lubricants and solvents are essential to equipment maintenance and processing activities. Applying zoning principles is often used for management of microbiological hazards. The definition of zoning is “the division of areas of the facility based upon the barriers, cleaning procedures, employee practices and control of movement of people, equipment and materials necessary to protect products from potential hazards originating from the manufacturing environment and its surroundings”. Usually a hazard assessment determines potential contamination sources, susceptibility of the product and control measures suitable for these areas. The facility is then designed and constructed to separate areas where high-risk foods are processed, exposed or stored from areas where lower-risk foods and raw foods are processed, exposed or stored, and from utility areas such as equipment washing areas, microbiological laboratories, maintenance areas, waste areas, offices, and toilet facilities. Based on the assessment, the facility is divided into areas or zones with different allowable processing steps, different 30

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hygiene rules and/or procedures for persons who are allowed entry, and/or different levels of cleanliness. Generally, the more sensitive the product or the consumer, the more important it is to separate the facility into different hygiene areas. Each manufacturing operation requires an appropriate environmental cleanliness level in order to minimize risks of contamination. Buffer zones including hand and boot wash areas, change stations and other physical (or other) barriers are often placed between the basic GMP areas to the high hygiene areas. These zoning principles can also be used for chemical hazards. Industrial chemicals should be classified according to their use in relation to food processing equipment and the potential for direct food contact. There is a lot of focus placed on industrial lubricants but it is important to ensure that these controls also extend to Protection and corrosion inhibitors, precision cleaners, industrial degreasers and cleaners that can also be a source of contamination. Given that industrial chemicals are not intended to be consumed, their safety is related to the potential exposure to food. Terms like “food grade” are bandied about but are less well understood. A well recognized classification system distinguishes products in the following way: H1 - Acceptable as a lubricant with incidental food contact for use in and around food processing areas. Such compounds may be used on food processing equipment as a protective anti-rust film, as a release agent on gaskets or seals of tank closures,

and as a lubricant for machine parts and equipment in locations in which there is a potential exposure of the lubricated part to food. H2 - Acceptable as a lubricant where there is no possibility of food contact in and around food processing areas. Such compounds may be used as lubricants, release agents, or anti-rust films on equipment and machine parts in locations in which there is no possibility of the lubricant or lubricated part contacting edible products. 3H - Acceptable as a lubricant with incidental food contact for use in and around food processing areas. Such compounds may be used on food processing equipment as a protective anti-rust film, as a release agent on gaskets or seals of tank closures, and as a lubricant for machine parts and equipment in locations in which there is a potential exposure of the lubricated part to food. These products will have direct food contact. The facility is then zoned according to risk of food/drink contamination. Green zones are where only the “safest” products are authorized such as 3H or H1, whereas amber and red zones have decreasing product controls such as H2. The diagram below indicates how the zoning would take place to ensure no accidental contamination can take place. All industrial chemicals in the zoned area would be the same classification. Rationalising the number of type of chemicals would also greatly assist the maintenance team in providing the appropriate food safety support in a practical easy-to-implement way. Using classified and registered products verified by credible third party agencies in the Zoned Areas is best practice that reduces contamination risk. Registered nonfood compound products were assessed, classified and their production facilities are inspected and audited. These products have supporting documents such Product Data Specs, Safety Data Specs (SDS), Certificates (Eg COA’s) Registration Letters as well as batch controls and traceability to provide you with the assurance you need Linda Jackson is a Director at Food Focus - a South Africa based consultancy company.

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NAIROBI BOTTLERS LTD: INVESTING IN JUICE ON THE JOURNEY TO A TOTAL BEVERAGE COMPANY Nairobi Bottlers Ltd commissioned a new juice manufacturing plant in May 2017, as the company expands its products offering to meet new consumer requirements for healthier beverages. Food Business Africa had a discussion with Duncan Kimani, the Manufacturing Director for Coca-Cola Beverage Africa’s portfolio of companies in Kenya to discuss the importance of this new investment.

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MY FACTORY, MY STORY | NAIROBI BOTTLERS

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MY FACTORY, MY STORY | NAIROBI BOTTLERS

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here is a noticeable excitement at the Nairobi Bottlers factory located at Embakasi near the Jomo Kenyatta International Airport in Nairobi. Excitement brought by the new state of the art juice plant, which stares down at the rest of the sprawling facility that is the home to Nairobi Bottlers Ltd – the largest bottling partner of Coca-Cola in Kenya and the region. Part of Coca-Cola Beverages Africa (CCBA), the recently set up bottling behemoth that bottles Coca-Cola beverages including carbonated soft beverages and water across 16 countries in Africa, from 34

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South Africa to Ethiopia, Nigeria, Kenya and the Indian Ocean islands, Nairobi Bottlers is a critical cog in the wheel of CCBA – and an important partner as Coca-Cola builds on its strategy to become a total beverage company across the world. CCBA fits into the bigger Coca Cola ambitious goal of investing in Africa some US$17 billion over the years to 2020. No one can explain the importance of this new KSh 3 billion (US$30 million) investment better than Duncan Kimani, the Manufacturing Director of Coca-Cola Beverages Africa. We last had a discussion with Mr. Kimani in early 2016, when

he discussed at length the plans of the company to boost its investments in the factory, with the juice plant being one of the priority investments. He was again at hand when Food Business Africa visited the factory in mid October to show us around the new facility, with an air of excitement on his face. “The scope of the project is a juice manufacturing plant. It is a completely stand-alone project involving complete new civil works, new building for both packaging line, processing and raw material storage as well as a state of the art packaging line and processing equipment,” Mr. Kimani FOODBUSINESSAFRICA.COM


manufacturing process.” According to Mr. Kimani, products made at this facility will serve the greater Eastern Africa markets of Uganda and, with Kenya acting as the hub for some of the specialized products for the region.

Reinvigorating Minute Maid

informed us. “It is a very exciting time for me because what we have done is we have closed the old juice facility on Likoni road and the adopted new hot filling juice manufacturing technology at this new plant, with numerous advantages to our efficiencies and capabilities. I must also say that this is the first hot fill line in Kenya and the region, for which we are very proud,” he added. “The strategy was to have a plant with more superior technology so that we could automate the process, make it seamless, minimize human interactions on the whole process of juice making to ensure we have a high-quality product at the end of the FOODBUSINESSAFRICA.COM

Mr. Kimani believes that Africa is in a critical growth phase, with Kenya forming the gateway into Eastern Africa and subSaharan Africa as a whole. The growing middle class has seen customers begin to ask for diverse range of products, which from the CCBA perspective is actually Coca-Cola’s area of strength, considering that the largest beverage producer in the world has over 3000 brands in its portfolio around the World. CCBA has been adding extra capacity in a number of its African operations to meet this rising demand, while innovating at the same time, ahead of the curve. The new plant at Nairobi Bottlers fits into the investment focus, while the newly reformulated Minute Maid juice brands add to the product diversification strategy. The new plant currently produces four variants of Minute Maid Juice, namely Minute Maid Pulpy Orange, Minute Maid Mango, Minute Maid Tropical and Minute Maid Apple. Mr. Kimani says that Minute Maid Pulpy Orange is the lead flavor in the reformulated Minute Maid Juice range, with a unique addition of orange pulp, giving consumers the opportunity to get as close to nature as possible. The variants are currently available in 400 ml and 1 litre plastic bottle packaging.

“Our long-term strategy is to focus on juice and what I would call alternative beverages in these new segments where consumers are asking for more nutritive sort of range of products. We have positioned ourselves for health and wellness type of products, and that is the focus for the new facility. The main carbonated beverages and water factory will continue to provide the favorite Coca-Cola, Fanta, Stoney, Krest and Sprite brands. However, for this new plant there is a 10-year strategy in regards to innovation on alternative beverages that provide nutrition. You will see very different categories coming through this facility because a lot of people know we have over 3000 products as the Coca-Cola Company globally. The focus will now be to pull some

IN NUMBERS US$17BILLION COCA-COLA PLANNED INVESTMENT IN AFRICA BY 2020 of those into the Kenyan market. This is just phase one. We have space for moving into Tetra packaging of juice and other products soon. We also have space to move into bulk juice segment, as well. The space is really going to innovate based on consumer requirements and based on the research we have done,” Mr. Kimani revealed, with the project taking up to 6 phases, up to 2020. FOOD BUSINESS AFRICA | NOV/DEC 2017

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MY FACTORY, MY STORY | NAIROBI BOTTLERS

The plant produces mango, tropical, apple and tropical variants in 400 ml and 1 litre pack sizes

State-of-the art plant

The imposing 3-floor plant looks deceptively small from outside, despite the fact it is the tallest building in its vicinity, and is hard not to notice by anyone driving on the busy Eastern Bypass road that connects JKIA with the northern parts of Nairobi. Setting foot inside the plant, one comes face to face with shining, complicated equipment that exude a sense of massive investment in the latest technology, and that’s when the size and scale of the investment hits home. “The design of the building took into consideration a number of issues, especially considering the fact that we had limited space to build the new plant. By having three floors, we managed to create enough

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room to put up the plant in a fairly restricted space, which is a big positive for us. The layout was designed to deliver optimized flow of raw materials and processing, right through to the finished juice product. Further, with a vertical building, we are able to transfer some material by gravity, with significant savings on energy,” explained Staneu Muriuki, the Manufacturing Manager, Juice Plant. The plant hosts a Visitor Centre that overlooks the production floor, where stakeholders, including school children, are given the opportunity to interact with the company’s staff on a regular basis. A closed platform runs from the Visitor Centre, hanging above the production floors, right across the factory, giving the visitors a clear

“THE MINUTE MAID APPLE VARIANT IS FREE FROM PRESERVATIVES. WE ARE WORKING ON REMOVING SOME OF THE SMALL TRACES OF PRESERVATIVES WE HAVE ON THE OTHER VARIANTS.” Duncan Kimani, Manufacturing Manager

view and experience of the goings-on at floor below. The plant has adequate storage for raw materials and packaging that are ready for the production process on its upper floors. With the ground floor of the plant hosting the packaging equipment and processing, the juice preparation starts on the first floor, where the Cold Storage Room, Simple Syrup Room and Juice Processing Room are located. Here, the juice is blended 10%-14% content depending on the flavor, according to the specifications of the Coca-Cola Company. The blended solution is then transferred into three 35,000-litre final beverage tanks awaiting further processing and packaging. For the Minute Maid Pulpy Orange blend, two process streams are used in order to ensure delicate handling of pulp and avoid maceration of fruit pieces. The entire process is carried out in the highest sanitary standards to protect the preservative free product from any possible microbial contamination. The final processing before packaging is pasteurization, where the product undergoes FOODBUSINESSAFRICA.COM


Duncan Kimani (Manufacturing Director, third left) and Staneu Muriuki (Manufacturing Manager, Juice Plant, third right) with some of the Plant’s team members.

heat treatment, followed by packaging at a rate of 40,000 bottles per hour. The plant has invested in an integrated blower-filling block which further reduces the risk of microbial contamination. For Minute Maid Pulpy Orange and fruit pieces processing, a smaller filling machine, doses the pulpy orange blend into the bottle, after which the partially filled bottle moves into the main filling machine for the incorporation of the regular orange juice blend.

Hot fill process advantages

Mr. Kimani is proud of the new hot filling technology that has been used at the new plant and believes that it will be a game changer at the company and in the region. “At this plant we have gone with a state of the art line from a German company. What this line does is highly automated and is a much newer technology. We have taken the latest technology in juice manufacturing and brought that to Kenya. The strategy is to have a line that is more advanced, a superior technology so that we can automate the process, make it seamless, minimize human interactions on the whole process of the FOODBUSINESSAFRICA.COM

“THE HOT FILL PROCESS IS KEY FOR US, ESPECIALLY AS CONSUMERS SEEK HEALTHIER, NUTRITIOUS PRODUCTS ” Staneu Muriuki, Manufacturing Manager

juice manufacturing to ensure that we have a high-quality product at the end of the process,” Mr. Kimani said. “The hot fill process is key for us, especially as consumers seek healthier, nutritious products. With this technology we are able to produce juice and other products without the need for chemical preservatives. The Hotfill process also offers improved shelf-life of 6-months on the preservative free products. This opens up opportunity for introduction of more sensitive and rich products into the Kenyan market,” Mr. Muriuki elaborated. The company’s decision to procure the hot filling process over the other alternative, aseptic packaging, was also due to the lower costs of capital investment and running costs. According to Mr. Kimani, the new technology also delivers on reduced energy

and water consumption by the plant, a key metric for the company’s goal to reduce its environmental impact.

Meeting consumer’s focus on health

According to the Manufacturing Director, from an innovations point of view, 2017 has been a very aggressive year for the company. The newly reformulated Minute Maid juice brands have a 25% reduction of sugar in their formulations to address some of the consumer health concerns. Further, the new brands have achieved either a total elimination or significant reduction in added preservatives, meeting consumer requirements to eat or drink food products with no preservatives. “The Minute Maid Apple variant is free from preservatives. And by the next six months we are also working on removing some of the small traces of preservatives we have on the other variants. Even though we have very small traces, we are calling it out, since it is a legal requirement. That is something we pride ourselves in,” Mr. Kimani says. The company has also recently FOOD BUSINESS AFRICA | NOV/DEC 2017

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MY FACTORY, MY STORY | NAIROBI BOTTLERS

introduced two variants of sweetened, flavoured water beverages available in lime and strawberry flavors for consumers “wanting refreshments and hydration at the same time,” reveals Mr. Kimani. “It is very difficult when doctors tell you that you need to drink two litres of water every day. But now we are making easier for our consumers who actually have highlighted flavoured beverages as an opportunity they would want to consume. Globally we have very strong flavoured water but not in this market,” he explained. Further, the company recently launched a reformulated version of the sugar free Coca-Cola Zero Sugar, at the same time that Coca-Cola was launching the brand around the World. According to Mr. Kimani, the new Coca-Cola Zero Sugar, which has replaced the former Coca-Cola Zero has a well-rounded taste profile and a more original Coca-Cola taste with no after taste. “We are saying you are enjoying your Coca-Cola but with zero sugar.” To add to the changing consumer needs, the 400 ml pack of Minute Maid juice brands that has been introduced by the company enables the consumer to consume the product in one seating, meeting the consumer’s nutrition needs at one go. “Consumer research has shown that 500 ml is too much of a particular offering for proper consumption to be finished in one consumption opportunity.”

Community impact

Mr. Kimani reiterates that the impact of the project both to the economy and the company cannot be overestimated. Apart from the economy benefiting directly from the KSh. 3 billion (US$ 30 million) project, local civil mechanical and electrical engineering contractors and consulting engineers were hired to execute the project, adding to its overall impact on the economy. The company has also hired 25 new technical operators and other personnel for the juice factory. He reveals that the investment, upon completion, could go way up to KSh. 5 billion (US$ 50 million).

Taking advantage of CCBA’s scale to drive value

With the completion of the formation of CCBA this year, the company has already delivered on some of its stated goals to leveraging its scale to serve the growing market for beverages in Africa – and the juice plant is just one of the examples. In Kenya, CCBA has operations at Nairobi Bottlers and two other beverage producers: Crown Beverages, the producers of Keringet brand of mineral water and Equator Bottlers, which was acquired by CCBA in July 2017. According to Mr. Kimani, the combined group will continue to use its capability to boost the skills of its employees, utilizing existing skill sets to boost the entire group in Kenya and the region. For example, the Technical Training Centre, which was opened in 2016 and is located at Nairobi Bottlers Ltd will be used that to train team members from the other facilities. “The goal is to evolve into what we call manufacturing specialization. In this regard, we are looking at the different businesses and will choose the business segments that perform well in specific kinds of environment and then leverage on their capabilities. We shall also synergize a number of functions, including procurement, finance and sales and marketing functions to deliver value to the business. These synergies will also provide more choice to our consumers and customers, beside providing more value to them,” he concludes 38

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FOODBUSINESSAFRICA.COM


SPECIAL REPORT

Craft Beer takes the flow into Africa

The craft beer industry is on a roll worldwide. We review the progress around the World and look at the prospects of the industry in Africa

I

t is a Friday evening on Ngong’ Road Nairobi, Kenya. On a cool November evening, young men and women make their way into the Brew Bistro & Lounge to quench their thirst as they watch Nairobi’s busy traffic pass by. Sipping glasses and jugs full of servings of freshly brewed ales, IPAs and stouts brewed by Aleem Ladak, the Master Brewer and Managing Director of Big Five Breweries that runs the Brew Bistro and another outlet located in the Westlands suburbs of Nairobi, the Brew Bistro Rooftop, the young patrons give a fresh approach to present day drinking: interspersing their beers with shots of mojito and other weird-named cocktails served by tattoo-laden young men and women. Aleem Ladak is not alone. Africa’s thirst for beer, craft or regular is growing at an abrasive pace. Global Data, a leading research company, predicts that Africa’s beer volumes will increase 5% per annum till 2020, driven by booming urbanization, rising incomes and a more travelled, young, connected populace. Africa’s beer prospects increase significantly if population and per capita consumption figures are thrown into the mix. Huge population increases that are forecasted in Africa make the likes of Nigeria, Ethiopia, Uganda and Tanzania a brewer’s paradise, and that is why the big four brewing conglomerates AB InBev, Heineken, Diageo and Castell have amongst themselves about 90% of the highly consolidated beer market in Africa. One way to grab a share of the growing beer market in Africa from these multinational behemoths? Put up your own micro-brewery, like Aleem has done. And that’s where craft beer production comes into the mix.

Craft beer takes the world by storm

Craft beer, defined by the Brewers Association, a US based trade association for the small and independent brewers, as small (producing less than 6 million barrels per year, quite a frothy figure in Africa), independently-owned (less than 25% owned by other non-craft players in the alcohol industry) and that uses traditional and innovative ingredients and innovations. Craft breweries are mainly made up of FOODBUSINESSAFRICA.COM

FOOD BUSINESS AFRICA | NOV/DEC 2017

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SPECIAL REPORT

Mr. Aleem Ladak, the Master Brewer and Managing Director The Big Five Breweries tastes beer at his brewery in NAirobi, Kenya

micro-breweries and brew pubs. According to data from Technavio, a research company, craft beer volumes are projected to grow 11% worldwide from 2017-21. The US market, the origin of the craft beer ‘craze’ totaled US$23.6 billion in sales, with the Europe, Middle East and Africa (EMEA) market received US$38.36 billion in sales. The Asia/Pacific region is growing at a frothy 16% per annum. The US, where more than 6,000 breweries exist, from a low 1,574 breweries in 2008, more than quadrupling in less than 9 years, the craft beer market currently

constitutes about a 12% share of the total beer market by volume. IN the UK, the number of breweries has surpassed the 2,000 mark, driven by the rising craft beer segment. India’s thriving craft beer market has over 100 facilities, driven, while China, the biggest craft beer market in Asia has reported a yearly growth rate of over 20%, according to various sources.

Africa comes to the fore of craft

Down at the very tip of Africa, JC Steyn is in charge of brewing operations at Cape Town based Devil’s Peak Brewery. With

Stellenbrau brewery was bought by global giant Heineken in March 2017, the first such deal in Africa. 40

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great views of Devil’s Peak and Table Mountain, the brewery which started its operations in 2012 in a small building soon strip demand and the brewer moved its operations near Devil’s Peak mountain to fulfill rising demand for its unique line of beers, opening its first tap room to serve the clients. Three years down the line and the company recently opened a new, larger brewery located in Epping, where the brewery has put up a new sour facility with an in-house barrel-aging program that will place the company at the very edge of craft brewing in Africa. “We are very excited with the new brewery,” Steyn told us when we caught up with him on phone, as the brewery was being opened way back in September 2017. He is confident that despite the growing number of craft breweries in South Africa, Devil’s Peak has weathered the storm and shown its consumers what separates them from other breweries: quality and innovation. Though the statistics show that Steyn should somehow be worried, considering that South Africa has the largest number of craft breweries in Africa, numbering 215 by the end of 2017, according to Craftbru.com, a website dedicated to the craft beer industry. Latest figures from the website show that the mainly affluent Western Cape with 105 breweries (48.8%) and Gauteng 42 (19.5%) constitute about 70% of the total breweries. The other provinces include KwaZuluFOODBUSINESSAFRICA.COM


Natal: 20 (9.3%), Eastern Cape: 20 (9.3%), North West: 8 (3.7%), Free State: 8 (3.7%), Mpumalanga: 4 (1.9%), Limpopo: 2 (0.9%), and Northern Cape: 3 (1.4%). The message is the same from Kenya, where despite having a fewer number of craft breweries, the Big Five and Sierra Brewery, which brought the brew pub concept to Eastern Africa, Aleem, the MD of Big Five Brewery is confident of the future and is putting up a new brewery in the suburb of Karen, making his company to have three own locations from where his beers can be found, plus another 80-90 partner hotels and establishments around Nairobi, from where the beers are served. “Our target market is the young professional between 25-45 years old. These people have travelled the world and experienced various forms of craft beer and food that they would like to experience at home. They are also technology-oriented; want to try out new tastes and experiences. They also appreciate quality and want to spend their time in a nice atmosphere and are ready to spend for this,” says Aleem. With a vast experience in the world of brewing, Aleem came back 9 years ago to set up the brewery in 2009. The idea I had

Bature Brewery is Nigeria’s first craft brewer, aiming to quench the thirst of Abuja’s local and tourist community

industry in the continent, while the beer and wine culture in South Africa has acted as an enabler of the growth of the craft industry. Aleem agrees, saying that the emergence of the informed consumer with money to spend has played into the rise of the craft industry be it in wine or cheese, and that it will continue to spread beyond the two countries into the rest of the continent. Devil’s Peak Brewing is looking at exporting its beer beyond the borders of

“OUR TARGET MARKET IS THE YOUNG PROFESSIONAL BETWEEN 25-45 YEARS OLD. THEY ARE TECHNOLOGY ORIENTED AND WANT TO TRY OUT NEW TASTES AND EXPERIENCES” Aleem Ladak, MD, The Big Five Breweries

was to come back home, create this beer industry and probably encourage others. Over the last 9 years, we have proved that this business is feasible,” he added. The company has regional ambitions to take its beer beyond Nairobi and Kenya in future because of a rising demand for beer. But Aleem has noted a changing palate among his customers, with an increasing demand for stronger beers, while the demand for American style IPAs, Belgian ales and stouts increasing, from the days that many would have preferred lighter ales. Steyn meanwhile reveals that despite the consumer perception that lager beers are not really for the craft market, he has seen a rise in lager beer consumption in his brewery, with 70% of the volume being lager beers. Pale ales, IPAs and other varieties make up the rest of the volume. “The weather in South Africa is very conducive to the consumption of lager,” he informs us. Both agree that consumer education will be key to the growth of the craft beer FOODBUSINESSAFRICA.COM

South Africa into countries in sub-Saharan Africa.

Beyond South Africa and Kenya

While the demand for craft beer is growing in South Africa and Kenya, the flames are beginning to flicker in other countries in the continent. In Nigeria’s capital Abuja, one enterprise is angling at serving its beer to potentially half the 170 million inhabitants of the country in future. Bature Brewery, a crowd funded craft brewery has raised cash on IndieGogo, an online fundraising platform and is building the brewery already. Kevin Conroy, Andrew Seward and James Turley went to Nigeria to originally work in development projects and have turned their energy on making Nigeria and West Africa’s first craft brewery a reality. With four brands on its staple, including three pale ales and a heady stout with 10% alcohol by volume which is infused with coffee and oak chips, making the brew to have a real Nigerian flavour to it, despite the

higher alcohol that many beer consumers may not be used to. But, this is Nigeria! Further growth in Kenya, Nigeria or in most other African countries will follow the socio-economic influence of the population, notes Steyn. He gives the example of South Africa, where the craft beer industry has taken hold majorly in high-income regions of the country. “The same will happen in the rest of Africa,” he says.

Big beer fights back

The big beer giants have not failed to notice the accelerated growth curve of craft beer around the World, knocking their doors to tap into their growth trajectory. In South Africa, the No. 2 beer maker Heineken acquired Stellenbrau, a Stellenbosch based craft brewer and among the pioneers of the business in March 201, the first of what could be a regular occurrence in future. Heineken’s, and other global giants AB InBev, have acquired a number of smaller breweries including in the UK, US and China. When not acquiring smaller brands, big beer majors have recently decided to develop their own craft beer lines. In South Africa, AB InBev’s SAB Breweries launched a microbrewery in Cape Town last year to make ‘specialty’ beers that are already availed in their own tap room and in several establishments around the city. “It is actually a good move to see big beer companies support the smaller craft ones,” says Aleem. “For the industry to grow in Africa, we need both the small and big brewers. We saw it coming when they started buying out craft brewers in the US. We knew it was going to reach here. But am glad that such partnerships are happening in the sector,” concludes Steyn FOOD BUSINESS AFRICA | NOV/DEC 2017

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EXECUTIVE INTERVIEW | DR. MICHELE PERCHONOK, IFT PRESIDENT ELECT 2018/19

Ensuring that food products that got into space were consistently safe but also tasted the same, but that they were also handled, stored and processed the same way all the time. It not only looked at the critical control points but even what further to define the key ingredients specifications that were needed to make these foods, which obviously have a different profile because you don’t want to end up with sick astronauts in space because of eating unsafe food.

“I WOULD LIKE TO URGE YOUNG PEOPLE TO FIND A CAREER AND A JOB THAT THEY LOVE. BECAUSE IF YOU DON’T FIND THAT PASSION IN YOUR CHOSEN CAREER PATH, YOU WILL BE SO UNHAPPY” What continues to be a challenge is that ingredients will not always be the same especially when using fresh ingredients. When using fresh fruits or vegetables and then dehydrating them, when using fresh spices and dehydrating them, based on even the properties and weather of that year you are going to have some differences. Being aware of those differences and solving these new challenges as they arise is where we still have to continue working a lot more into the future.

D

r. Michele Perchonok recently retired after 17 years of working at the National Aeronautics & Space Administration (NASA) Johnson Space Center as manager of the NASA Human Research Program Science Management Office. Previously, she was the HRP Advanced Food Technology Project Manager and the space Shuttle Food System Manager. Michele is a Certified Food Scientist and holds a B.S. in Chemistry from Brown University and a M.S. and Ph.D. in Food Science with minors in Nutritional Biochemistry and Marketing from Cornell University. She is the President-Elect for the 2018/19 year for the Institute of Food Technologists, which brings together food technology and related life science professionals from around the World.

How was your experience of working with NASA in managing the food systems for the space shuttle program?

It was an exciting program than I could ever have imagined. It is unique. It is multidisciplinary. It is a challenge. It allowed me to work not only with other government officials but also with academia, industry, making contacts and just learning and trying to figure out a large problem that has a lot of different facets. NASA does not work on its own to deliver food to the space program, but works in a way to ensure that other people and organisations get involved. NASA believes that it cannot have experts in everything. It therefore looks to the outside for those experts and finds the right people who want to work with it to deliver on its goals and mandate.

What could we learn from the NASA space shuttle program to ensure food safety for the general population around the World?

NASA in partnership with Pillsbury Company and the US Department of Defence developed the HACCP program. NASA participated in the HACCP formulation because it needed to figure out how to always get the same food products into space. 42

NOV/DEC 2017 | FOOD BUSINESS AFRICA

From nutrition loses over time, to reducing bulk and packaging, which of these three still remains the big problem for NASA space program?

Maintaining nutrition over time is going to be the biggest challenge for NASA going forward. NASA is looking for space life supply of over 5 – 7 years in future, especially with plans to some day to have space missions to Mars. For example, if you fortify food products, the challenge remains in ensuring that the food eaten on Day 1 retains the same nutrition over the 5-7 years, or else you may run into challenges with over nutrition or under nutrition. So, to extend the space program into 5-7 years is going to ask for new, innovative to retain nutritional quality more than NASA has current capability for. Further, understanding the physiological changes and nutritional needs of the crewmen in long-term space residency and the stresses that kind of environment puts on the body and mind of the space crew is still uncertain. We know what the nutritional requirements are out of space but are they the same on space long life? When we talk of space life, we talk about safety. Safety should be first.

Into the future, how feasible is the government partnership with the private sector and what are still the challenges?

HACCP is very important. HACCP has been taking over to become the standard and many of the industries in the US are actually required by law to have a HACCPP-type process. Working with the government and industry, the biggest challenge that NASA has seen is there is wonderful excitement about working with NASA. This is great! This is Great! But our value is so little. We are feeding 6 people over a year. The industry is not going to get rich or even make a profit by working with NASA. No matter how much we would like to, we cant drive an industry to work on a process because it if good for NASA. It has to be for the consumers of their business also. FOODBUSINESSAFRICA.COM


As the President-elect, what are the key things that IFT still has to grapple with?

We have to understand our members better and we still need to grow our numbers.

Any advice on what struggling membership based food technology associations in Africa need to do to gain traction?

I would urge the organisations to always strive to find a purpose. It is a hard path but you have to figure out what will keep people together, excited and passionately doing the work that needs to be done. How do your prospective members get their excitement and passion? The general human nature is when you find that passion you are able to stick to the path you have chosen. But these organisations also require people who didn’t end up being in the profession just because it gives you them a lot of money. I would like to urge young people to find a career and a job that they love. Because if you don’t find that passion in your chosen career path, you will be so unhappy. It really will be work. But if you can find something that pays you and also that you love, it is a hobby. It is fun. Having a common goal and a passion behind it is how you can keep your people in the right place. That is how you are going to keep the work flowing. That is how you are going to maintain that community. People like to feel like they are part of the community, part of the organization and part of something that is meaningful.

How was it for you growing up and getting yourself elected as the incoming President of IFT?

It has been quite a challenge. In my generation I have experienced that if I say something more aggressively, I am branded too aggressive. But when my counterpart has said who is a male, they say he is just doing his job. I look at the young people like my daughters and I see the way I had a fight versus the way they do is different. There is now more of an acceptance that women are able, scientists. Everyone still plays the politics at work but it is a different type of politics. I won’t say it has been easy but on the other hand I did it. I had a lot of good mentors that were telling me what to do and how to do it. I had to learn on my own. I guess I fought my way but more so I just did my job well. I just worked hard and I always worked hard. And I would say that my daughter has looked at me and said, “Mum, you got it. You made it. And I know I can do it because you did it.” That is how we make progress for the future generations and they too will make progress for their future generations. Look at women in the early 1900s and now as we are in the 21st Century a whole lot better. We talk of Food Science versus may be Physics and you are still going to see more women in the Food Science class than in Physics. Part of that is still because of the culture that women can’t do science. Well, Physics is a hard-core science. It is harder compared Food Science. Maybe it will get a bit easier with time

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4 Good Reasons to be at AFMASS 2018 in Kenya & Zambia Reason #4

TWO CONFERENCES, TWO COUNTRIES, ONE CONTINENT The industry in Africa’s is thirsty for knowledge that will reduce their costs, improve efficiency and eliminate risks to their businesses. The conferences at AFMASS 2017 are designed to inform investors, industry managers, Govt. regulators and other stakeholders of the latest innovations, policies and technologies that Africa must adopt to meet the needs of a growing industry and population And, with two locations in Kenya and Zambia in 2018, AFMASS continues to be the perfect location where learning about Africa’s industry is taken to new levels. Sign up today on the website to sponsor, exhibit, visit and attend the conferences and expos today

www.afmass.com www.zambia.afmass.com FOOD BUSINESS AFRICA | NOV/DEC 2017

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SUPPLIER NEWS INNOVATIONS

Chr. Hansen launches probiotic culture to tap into kids market DENMARK – Danish supplier Chr. Hansen has launched a new probiotic culture solution for kids’ drinking yogurt, seeking to tap into the market for dairy products targeted at children. The new product, ProKids, a concept solution for probiotic children’s drinking yogurt, is a newly developed freezedried DVS culture, nu-trish GY-1, which contains the LGG probiotic strain together with a compatible yogurt culture.

“We have brought out the best of the LGG probiotic strain by combining it with a carefully compounded yogurt culture. The result is a very mild, tasty yogurt drink with a high cell count of live probiotic bacteria that will appeal to young taste buds and health conscious parents,” says Dorte Eskesen, Global Marketing Manager Fresh Dairy. “With the ProKids concept, which is available worldwide and can be merged

into the dairy’s own brand portfolio, we are filling a hole in the dairy market. We believe there is an untapped potential for functional dairy products specifically for children.” According to the company, the LGG strain has been studied in more than 300 clinical studies and described in more than 1100 scientific publications, making the LGG probiotic strain the natural choice for a kid’s product.

INNOVATIONS

Bühler Group introduces new digital rice analyser TotalSense SWITZERLAND – The Bühler Group has introduced a new digital rice analyser dubbed TotalSense, which enables the reduction of costs, improvement of yield and improvement of quality for rice processors. According to the company, the innovation features a number of new solutions that leverage the power of Internet of Things (IoT) with increased customer value, adding to Bühler’s digitalization initiatives.

“We are positioning ourselves at the forefront of this accelerated transformation. Digitalisation can bring consumers and producers closer together and increases performance, efficiency, and quality” says Stefan Scheiber, CEO of the Bühler Group. Buhler notes that rice processing has been slow, subjective, and prone to errors. TotalSense, a mobile rice analyser speeds up the quality process and introduces objective and traceable data through the use of the

Internet of Things and cloud technology. Bühler has also introduced a food safety alert system designed to mitigate these risks by combining food safety databases and early warning systems under one coherent, cloud-based solution. “Now we have the opportunity to connect with our partners, flagging risks but also giving insights on potential solutions”, says Béatrice CondePetit, Bühler’s Food Safety Officer.

PEOPLE

Ingredion Board of directors announces executive leadership changes USA - Jorgen Kokke has been promoted to

Executive Vice President, Global Specialties, and President, North America, effective February 5, 2018, as the ingredients provider fills executive leadership team vacancies created by the promotion of Jim Zallie to President and CEO of the listed company on January 1, 2018. Pierre Perez Y. Landazuri will also be promoted to senior vice president and

president, EMEA effective January 1, 2018 from his current role as Vice President And General Manager EMEA. Joining Landazuri will be Ernesto Pousada, Senior Vice President And President, South America, with both becoming officers of the company and members of the executive leadership team, effective January 1, 2018. According to the company, Kokke, who joined Ingredion in 2009 as vice president and

general manager of EMEA, will be responsible for leading the US$3.5 billion North America business, overseeing all operational and strategic management decisions. He served as senior Vice President And General Manager, Asia-Pacific, from 2014 - 2016, and has been senior Vice President And President, Asia-Pacific and EMEA since January 2016.

M&A

DSM, partner acquires majority stake in Chinese hydrocolloids business

CHINA – Leading health, nutrition and

materials company Royal DSM (DSM) and its partner Zhejiang Haixing Investment Co. Ltd (Haixing), have announced the acquisition of a majority equity stake in Inner Mongolia Rainbow Biotechnology Co. Ltd. The company, renamed DSM Rainbow (Inner Mongolia) Biotechnology Co., Ltd. Will enable DSM and Haixing to expand

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their global business of hydrocolloid solutions used in the food, beverage and personal care products to provide texture and stability. After an injection of new capital, DSM will own 65% of the shares in Rainbow with Haixing taking 27%, with the remainder owned by Mr. Gu Li Quan, the founder of the company, for an undisclosed amount. According to the two companies, the investment strengthens DSM and Haixing’s ability to serve their global customer base by meeting growing demand for gellan gum and widening their hydrocolloid product portfolio with the addition of xanthan gum and welan

gum. DSM and Haixing already have a 60/40 joint venture in gellan gum company DSM Zhongken Biotechnology Co., Ltd., in China. The acquisition also enhances DSM and Haixing’s texture and blending solutions development capabilities. Globally, increasing urbanization, trends towards “clean” labelling and growing demand for healthy and convenient food formats, as well as innovation in dairy, confectionery, oils and meat products, continue to boost demand for certain food hydrocolloids, such as gellan and pectin gum, note the two companies. FOODBUSINESSAFRICA.COM


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Food Business Africa incorporating Dairy Business Africa  
Food Business Africa incorporating Dairy Business Africa  

Africa's Processing, Packaging & Food Safety magazine