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SPECIAL ISSUE

SUSTAINABILITY: THE NEXT BIG ISSUE FOR THE FOOD INDUSTRY

FOODBUSINESSAFRICA.COM MAR/APR. 2018 NO. 29

SPECIAL REPORT

AFMASS Conference & Expo Eastern Africa edition program

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A FOODWORLD PUBLICATION FOOD BUSINESS AFRICA |MEDIA MARCH/APRIL 2018 1


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SUSTAINABILITY: THE NEXT BIG THING IN THE FOOD INDUSTRY

CONTENTS ARTICLES

PAST ISSUES

FOOD SAFETY

SPECIAL AFMASS KENYA ISSUE

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Sustainability becomes top priority for the Food Industry Sustainability has become one of the key priorities for the food industry. Food retailers, manufacturers and distributors are jostling to deliver unique sustainability goals in the face of increased concerns for the future of the world in which we live.

IN THE NEXT ISSUE (MAY/JUNE 2018)

Take advantage of advertising opportunities in the AFMASS Kenya special issue to reach your audience in Africa’s industry. My Company, My Story: Proctor & Allan EA Ltd You can read this and past issues of this magazine for free on the website

Industry Report: Animal Feed Industry in Tanzania

www.foodbusinessafrica.com

Adverts deadline: May 20, 2018

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DST Dehumidifiers Keep The World’s Best Hamburgers Dry

DST East Africa Food Industry & Industrial Dehumidifiers In the processing and storage of sensitive products, companies have to not only worry about the temperature but also about the humidity of the surrounding air. An industrial dehumidifier takes away this concern. Our dehumidifiers are the solution to your moisture related problems, whether it’s about keeping an entire space dry or keeping a particular part of the production process dry, DST Dehumidifier will do the job.

Nacka Köttprodukter AB is a small meat packing company that provides all of Sweden with hamburgers. They produce up to 600 tons a year, using 250 different recipes. For Nacka Köttprodukter, the environment is a question near and dear to their heart. From not printing paper to only using electricity generated from wind turbines to dehumidify with Seibu Giken DST. In the food industry, there are strict rules and regulations regarding hygiene, both for how the food is handled and also for how the premises appear. Nacka Köttprodukter follows these rules very carefully and sanitizes their facility nearly 2 hours per day. At which time, they sanitize the entire room including all process machinery. This and the fact that they moisten the meat for it not to get stuck on the plates, and that the room is cooled, contributed to that the premises had a high humidity. Among other things, this caused Nacka Köttprodukter to have problems with condensation on the ceiling, and also frost build up in their freezer. The frost was a consequence of opening and closing the freezer doors more than 100 times a day, as all of their hamburgers have to remain frozen. As a result of this, the cooling coils became covered with frost and the freezer needed to be defrosted very frequently. Garnsviken Nacka Köttprodukter contacted Garnsviken, a DST representative, to obtain help with their moisture problem. Having already been told that a dehumidifier would not fit on their premises, they were relieved when Garnsviken proposed several solutions. The customer also needed the unit to be quiet, since there are residential flats above the production premises. A uniform climate Garnsviken met the customer’s requests by installing dehumidifiers in their production room and in their cold store. This ensures that the humidity does not differ as much between the different spaces, which makes it easier for them to maintain their desirable climate. To ensure the dehumidifiers were quiet, they were mounted on the walls with sound proof insulation. The dehumidifiers are set based on the customer’s needs instead of running all of the time, which makes them both more effective and energy-efficient. Dehumidified premises Following the installation of the DST dehumidifiers. Nacka Köttprodukter no longer has problems with condensation on their ceiling and the need to defrost the freezer has been greatly reduced. The electronics in the production room, which are rinsed off every day, are functioning better than before. One positive result that Nacka Meat Packing had not expected. Stefan Grahn, Nacka Köttprodukter’s owner, is very pleased with the results and warmly recommends DST’s dehumidifiers.

DST Dehumidifiers now in East Africa We are pleased to offer a complete line of desiccant dehumidifiers that are considered to be some of the best on the market today. With experience and know how in almost every humidity control application, it allows us to supply and service all industries and consumers. In our own product development, we will continue to embrace the same principles our parent company was founded upon, providing exceptionally well-engineered, environmentally responsible products of superior quality.

DST East Africa Nairobi Garage, M2, Mirage Towers, Westlands, Chiromo Road Nairobi, Kenya Visit us at www.dsteastafrica.ke or email info@dst-sg.com for more information


CONTENTS

www.foodbusinessafrica.com Volume 4 Issue 6, No.27 • ISSN 2307-3535 FOUNDER & PUBLISHER Francis Juma EDITORIAL LEADER Maureen Onyango ADVERTISING & SUBSCRIPTION: Jonah Sambai | Lavender Atieno DESIGN & LAYOUT Frank Bett

EDITORIAL 6

Africa must place food safety at the top of its agenda

EVENT PREVIEW 10

AFMASS Kenya edition 2018 Programme

EVENTS CALENDAR 10

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

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

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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. Copyright 2017. Reproduction of the whole or any part of the contents without written permission from the editor is prohibited.

SUPPLIER & INNOVATIONS NEWS 44

Tetra Pak debuts packaging material effects | Firmenich constructs new Chinafacility | Neogen win award for pathogen detection system

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MARCH/APRIL 2018| FOOD BUSINESS AFRICA

All information is published in good faith. While care is taken to prevent inaccuracies, the publishers accept no liability for any errors or omissions or for the consequences of any action taken on the basis of information published. FOODBUSINESSAFRICA.COM


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*Please contact your technical representative for further information on cross-reactivity capabilities for MAX range and full details of GIPSA approval


EDITORIAL

QUOTABLE QUOTES

Africa must place food safety at the top of its agenda

“Boiling and these gas bubbles are the sacred formula in the brewing process. Each brewer goes through a boiling process. Our innovation is to heat everything up to just below boiling point, which provides 80% energy savings at this point in time. There is he recent outbreak of Listeriosis, a lot less steam released, which allows food poisoning caused by you to spend less on water. In our case, the consumption of foods we managed to go from 5% evaporated contaminated with the Listeria water to less than 1%.” monocytogenes bacteria, in South David De Schutter, AB InBev’s Research Africa must be a wake up call to the Director for Europe, commenting on the new industry, Government regulators and energy-efficient brewing method the beer the public on how devastating food company revealed recently. safety incidents can be to consumers, food companies and the general public “As the first country in Africa to produce at large. geothermal power at 200MW and a The outbreak, the largest ever recorded notable solar energy producer, we have by the World Health Organisation the aptitude to lead in energy efficiency (WHO), has so far resulted in over through sustainable approaches such as 1,000 cases and over 190 deaths as recycling and reusing of our waste.” we went to press. The outbreak has KAM Chair Ms Flora Mutahi, while entangled one of Africa’s largest food commenting at the Energy Management companies, Tiger Brands after one of Award ceremony in Nairobi, Kenya. its subsidiaries, Enterprise Foods was mentioned by authorities as the possible “The result is Amatil X. Our aspiration center of the outbreak. The company is for Amatil X to set the benchmark has not only closed its factories but is for how to bridge the gap between large also facing a class-action lawsuit that established corporations and the agility could potentially hit its operations and and innovation of start-up businesses, finances in future. so that we leverage entrepreneurs to The outbreak of the disease in help fuel our growth agenda.” South Africa must serve as an Coca-Cola Amatil Group Managing Director’s important moment for the food Alison Watkins, on his company’s launch of an industry stakeholders in Africa, from innovations platform in Asia. manufacturers, retailers, distributors and food service to restaurant operators “As the company itself has made to take more action towards a better clear, its decision to transfer a small number of jobs to a corporate HQ in food safety environment in Africa. This stems from the fact that despite the Netherlands is part of a long-term its fairly sophisticated economy and restructuring of the company and is not regulatory environment, the authorities connected to the UK’s departure from in South Africa took several months to the EU.” identify the source of the outbreak. We Unilever as it announced its new sole should all be concerned if this outbreak headquarters in Rotterdam, Netherlands as happened in poorer, less sophisticated the company announced plans to shut its second corporate headquarter in the UK. sub-Saharan Africa countries!

T

Have a good read Francis Juma Publisher

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“The current unsustainable ways of threshing are the reason why majority of the wheat in the country is imported. We are trying to drive Nigeria to selfsustainability since we have huge arable land that can be used for the benefit of

MARCH/APRIL 2018| FOOD BUSINESS AFRICA

the country.”

Thabo Mabe, the General Managing Director, Dangote Flour Mill Plc., on the donation of threshers to Nigerian wheat farmers.

“We need a culture change to make the biggest difference – both in the way we use plastics for our products and how we use plastics in our everyday lives. So we’re totally committed to putting in place some stretching targets I know my teams in the business are eager to achieve in the next 20 months.” Ranjit Singh, president of UK’s poultry company 2 Sisters on the company’s new sustainable packaging strategy.

“On average, the UK population only eats about 18g of fibre a day, so here at Arla, we set out to change all that and created a tasty yogurt which equates to 16% of the 30g recommended by the UK Government in each 150g serving. And best of all … you can’t taste the fibre at all!” James Quayle, Brand Manager of Arla Foods, on the launch of new Arla Fibre yoghurt brand, which incorporates fibre into the yoghurt.

“During the development process, we believed we were creating an innovative new technology that would revolutionize the bacterial pathogen detection process for the food industry. This recognition validates all the work we put into the process.”

Neogen Europe’s Steve Chambers, commenting on the company receiving the 2018 CFIA innovation trophy award for its Listeria detection system.

“In a world where almost everything needs to be ‘personalisable’, we want to provide customers with something unique to help their brands rise above the noise and reach the shopper. The new suite of effects and expressions will help our customers enhance their brand.” Charles Brand, the Executive VP, Product Management and Commercial Operations at Tetra Pak on the launch of its new packaging material effects.

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WE THANK THE FOLLOWING COMPANIES FOR SUPPORTING US IN THE LAST 5YEARS TO DELIVER THIS MAGAZINE AND RUN AFMASS EVENTS

AMOR COCO

Milk pasteurizer

27 years of e

Milk collectio

Honey-Jam-M

Cheese produ Portable milking machine


AFMASS KENYA 2018 PREVIEW

AFMASS IS HERE

The event is set up to be the biggest food, beverage and milling industry trade event in Eastern Africa this year

F EVENT NAME: AFMASS KENYA 2018 DATE: April 25-27, 2018 VENUE: Nairobi Convention & Conference Centre (NAICC), opposite the new Hilton Garden Inn Hotel near the SGR Station on Mombasa Road. CONFERENCE & EXPO TIMINGS 08.00 am to 06.00 pm daily

Register today:

Online registration is required to access the conference and expo at AFMASS Kenya 2018. Please reserve your slot today by registering on the website www.afmass.com 10

oodWorld Media, the publishers of this magazine and the organisers of the Africa Food Manufacturing & Safety Summit (AFMASS) Conferences & Exhibitions, are pleased to announce that AFMASS Kenya 2018 edition is just a few weeks away, with arrangements in place to host the best AFMASS ever. This year’s edition of AFMASS Kenya is set for April 25-27, 2018 at the Nairobi Convention & Conference Centre (NAICC), which is located opposite the new Hilton Garden Inn Hotel near the SGR Station on Mombasa Road. With most of the exhibition floor taken up by some of the leading suppliers to showcase their products to the industry, and the conference sessions attracting some of the most outstanding keynote speakers, speakers and panelists from across the World, the event has is set up to deliver on its promise to the Eastern Africa’s largest food, beverage and milling industry conference and exhibition. Now in its fourth year, AFMASS Conference & Expo Kenya edition has carved a niche for itself, becoming the most widely recognized platform for the entire food manufacturing retail and foodservice industry in Eastern Africa in a matter of few years.

MARCH/APRIL 2018| FOOD BUSINESS AFRICA

THIS YEAR”S EVENT HAS SEEN MORE SPONSORS & EXHIBITORS FROM MORE THAN 14 COUNTRIES SIGN UP TO SHOWCASE THEIR PRODUCTS & SERVICES. “The entire food and agro industry in the region, be they suppliers, manufacturers, retailers, foodservice managers, researchers, students and entrepreneurs find AFMASS to be a unique platform. Technical and commercial oriented conference sessions presentations by leading subject matter experts highlight some of the latest technologies in the post-harvest, processing, packaging and food safety of food products, that the industry can use to build its capacity to meet local and export requirements,” says Francis Juma, the organizer of the AFMASS events. “Beyond the conference sessions, delegates and visitors to the Expo Hall also have face-to-face interactions with leading local, regional and international suppliers of equipment, packaging, food safety and laboratory, ingredients and chemicals, and industry services, providing a one-stop shop for latest information and industry solutions,” Juma adds. FOODBUSINESSAFRICA.COM


New Venue with Easier Access to Industrial Area, Airport Bigger, better AFMASS 2018

“AFMASS Keya 2018 is surely going to be better than any other event we have had over the last 3 years. This year, we have received more support from sponsors and exhibitors from diverse sectors of the industry and regions of the World,” Juma says. A number of leading industry players, including BioMerieux, Coca-Cola, DSM, BASF, DNV GL and Atlas Copco have confirmed their sponsorship for the event, indicating the important role AFMASS plays in their plan for the growth of their businesses in Africa. And a few more are lining up, with plans to sign up, say the organisers. “The fact that most of these brands are supporting AFMASS for at least a second consecutive year shows their belief that AFMASS is the most important event in this region,” he explains. With confirmed exhibitors from South FOODBUSINESSAFRICA.COM

Africa, Kenya, Germany, Norway, France, China, UK, Sweden, USA, Turkey and India, expo visitors will not only find the solutions at the show to be varied but also meet the unique needs of their businesses, with solutions for the small, medium and large manufacturer, retailer of foodservice provider at the Expo Hall. Many more are expected to sign up by the time the event is held.

Free entry to industry managers

AFMASS Conferences & Expos are unique for their admissions policy: free conference and expo entry to industry investors, managers and professionals from Africa’s food, beverage and milling industry from the manufacturing, retail and foodservice sectors; Government regulators and select number of managers from the NGO sector with a focus on those focused on the food

INDUSTRY MANAGERS FROM AFRICA’S FOOD MANUFACTURING, RETAIL & FOODSERVICE GET FREE ACCESS TO THE CONFERENCE & EXPO FOR THE ENTIRE DURATION OF THE EVENT. PRIOR ONLINE REGISTRATION IS REQUIRED and agro industry. Those who qualify through this route get access to teas, lunches and all other functions, except the Dinner and Awards ceremony that are charged at US$60 per person. Please note that conference seating is limited and that online booking is required to book your slot. The expo hall at the event is free to all delegates and visitors FOOD BUSINESS AFRICA | MARCH/APRIL 2018

11


DELEGATES AND VISITORS MEET SOME OF THE LEADING SUPPLIERS TO AFRICA’S FOOD, BEVERAGES & MILLING INDUSTRY.

Network, Discover, Be Inspired

For conference delegate and expo visitors, AFMASS has been the most outstanding networking forum for former colleagues, schoolmates, business associates and Government officials. With daily teas, lunches and other networking forums at the conference and expo, the event offers more than just networking opportunities. Get to discover some of the region’s leading suppliers to Africa’s growing food, beverage and milling industry all at the same place and venue. Discover also the latest technologies and market trends at the daily conference sessions.

New Venue, Easier Access

With a new venue, the organisers are confident that the bulk of the industry players will find the event to be easier to access from the main Industrial Area in Nairobi and surrounding towns. It is also strategically placed 5 minutes from the Jomo Kenyatta International Airport ( JKIA), Eastern Africa region’s largest airport, enabling travellers from across the region and the world to get into and out of the venue without going through the traffic challenges in Nairobi. “The Nairobi Convention & Conference Centre (NAICC) is a new events venue that has enables us to host this event on Mombasa Road. This will ensure that the main industry players from Industrial Area in Nairobi, all the way to Machakos, Athi River and Kajiado towns, which are critical drivers of industrial development, can find it easy to visit AFMASS over the three days of the event,” explains Juma, about the choice of the venue. He says that for international visitors, the choice of hotels near the venue including the recently opened Hilton Garden Inn, Four Points by Sheraton, Lazizi Premier, Ole Sereni Eka Hotel and many more are adequate to meet their specific accommodation, food and entertainment needs during their stay.

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AFRICA FOOD MANUFACTURING & SAFETY SUMMIT (AFMASS) CONFERENCE & EXHIBITION - KENYA EDITION DATE: April 25-27, 2018 THEME: DIGITAL TECHNOLOGIES AND THE FUTURE OF THE MANUFACTURE, RETAIL AND DISTRIBUTION OF FOOD PRODUCTS IN AFRICA. VENUE: Nairobi Convention & Conference Centre Opposite Hilton Garden Inn Hotel JKIA, Mombasa Road, Nairobi, Kenya www.afmass.com SPONSORS SILVER SPONSORS:

SESSION SPONSORS

NUTRITION & HEALTH SESSION

FOOD SAFETY, QUALITY & SYSTEMS SESSION

PROCESSING & FORMULATIONS SESSION

SESSION SPONSORS

SUSTAINABILITY SESSION

REGULATORY, STANDARDS & TRADE SESSION

FOOD SECURITY & POST-HARVEST SESSION

WOMEN IN INDUSTRY SESSION

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WINE, SPIRITS & CIDER SPONSOR

FOOD BUSINESS AFRICA | MARCH/APRIL 2018

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CONFERENCE PROGRAMME DAY ONE – APRIL 25, 2018 07.30-8.00 – Refreshments and registration of delegates

SPONSORED BY:

08.30-09.00 – OPENING CEREMONY SESSION 1 – 09.00-10.30 – FOOD SAFETY, QUALITY & SYSTEMS MANAGEMENT

This session highlights new food safety technologies, quality systems and practices that will ensure that Eastern Africa’s food, beverage and milled products and hospitality & foodservice industry meets local and international standards and customer requirements, while improving local, regional and international trade. SESSION Chair: Andrew Sulumet, QSHE Manager, Bidcoro Africa 09.00-09.30 – The role of oil-free compressors in food safety management in the food industry - Jesse Kamau, Sales Manager, Atlas Copco East Africa. 09.30-10.00 – Listeria management in the food industry - Linda Jackson, Director, Food Focus South Africa 10.00-10.30 – Let’s find new ways to protect your brand – Loucif Soumeya, Industry Business Manager, BioMerieux 10.30-11.00 – Take a break. Get to meet with the events sponsors and exhibitors at the Expo Floor as you network with peers while taking your mid-morning tea and snacks.

11.00-11.30 – KEYNOTE SPEAKER

SPONSORED BY:

SESSION 2 - 11.30-13.00 – REGULATIONS, STANDARDS & TRADE

SESSION Chair: Lois Ndiba, Founder, Food Safety International This session brings together the industry, regulators and other stakeholders in a single platform to discuss current and upcoming regulations, standards and other requirements in the region and how they impact the industry and regional and international trade between Africa and the World. 11.30-13.00 - PANEL DISCUSSION: Food Safety & Trade Policy Regulation in Eastern Africa: The present and future of food safety and trade regulation in the region and its impact on the industry, consumer health and regional and international trade. MODERATOR: Lois Ndiba, Founder, Food Safety International PANELISTS: Brenda Obura - Food Safety Officer, Ministry of Health, Kenya; Immaculate Odwori - Quality Assurance Manager, Agrochem, Kenya Bureau of Standards (KEBS); Julia Otaya, Scientific & Regulatory Affairs Manager, Coca-Cola Central, East & West Africa; Titus Kieni, Scientific & Regulatory Affairs Manager Nestle; George Atieno, Food Safety Manager, Carrefour Supermarkets; Gordon Mutugi, Corporate Affairs Manager, KWAL and Chairman, Alcoholic Beverages Association of Kenya (ABAK); Simon Mwangi – Quality Assurance Manager, Brookside Dairy OR Emmanuel Kabaki, Brookside 13.00-14.30 – Take a bite and a deserved longer pause from all the talking and listening. Meet the event’s sponsors and exhibitors at the Expo Hall while networking with industry peers you probably have not seen in decades


SESSION 3 - 14.30-16.00 - NUTRITION & HEALTH

SPONSORED BY:

This session highlights recent advances in technologies that will improve the nutritional status of food, beverage and milled products so as to meet new consumers’ rising need for more wholesome, safe and nutritious products. It will also include presentations on efforts to improve food security initiatives in the region. SESSION Chair: Charity Magwenzi, R&D Manager, Capwell Industries 14.30-15.00 – Food fortification and its role in nutrition - Monique Tredoux, Marketing Development Manager, DSM Nutritionals 15.00-15.30 – GI Smart, Fat Smart, Healthy Eating – Miranda Venter, Glycemic Index Foundation of South Africa (GIFSA) 15.30-16.00 – Financing small and medium (SME) enterprises for nutrition - Greg S. Garrett, Director, Food Policy & Financing, Global Alliance for Improved Nutrition (GAIN) END OF DAY ONE

DAY TWO – APRIL 26, 2018

07.00-8.30 – Join fellow attendees, sponsors and exhibitors at the Expo Floor for an easy morning tea and conversation session as you prepare for the day’s activities. 07.00-17.00 - Registration of delegates SESSION 4 - 08.30-11.00 – SUSTAINABILITY

This session will highlight technologies to reduce utilization of scarce resources (water, energy, waste, community welfare etc.) in the food and agro value chain (agriculture, processing, retailing, distribution) and case studies that showcase how organisations have succeeded in reducing their impact on the environment and the communities in which they operate.

SPONSORED BY:

SESSION Chair: Virginia Nyoro, Manager Quality Systems, Brookside Dairy 08.30-09.00 – Sustainable production systems in the food industry - Eric Nkanata, DNV GL 09.00-09.30 – South African packaging I ndustry – Waste management initiativwes Anton Hanekom, Executive Director, Packaging South Africa 09.30-10.00 – Sustainability initiatives in the beverage industry - Sammy Lamba, Director, Food Hygiene, Diversey Eastern Africa Ltd 10.00-11.00 - PANEL DISCUSSION: Sustainability in the plastics value chain in Africa: Implications of plastics ban on the packaging industry in Kenya and future trends in the packaging and retail of food and beverage products in Africa. MODERATOR: Virginia Nyoro, Manager Quality Systems, Brookside Dairy PANELISTS: Anton Hanekom, Executive Director, Packaging South Africa; Priv Haria; Business Development Head, PET Bottle Recyclers Ltd

11.00-11.30 – Take a break. Network with the events sponsors and exhibitors at the Exhibition Floor as you have your mid-morning tea and snacks


SESSION 5 - 11.30-13.00 – PROCESSING & FORMULATIONS TECHNOLOGY

SPONSORED BY:

This session will highlight technologies to improve processing and formulations of food, beverage and milling products with an emphasis on new technologies that can improve efficiency, improve nutrition, reduce costs and reduce impact on in the industry. SESSION Chair: Patrice Mumbo, Production Executive, Trufoods Ltd 11.30-12.00 – Industrial Food and Beverage Flooring Systems - Caleb Gekombe, Performance Flooring Manager, BASF 12.00-12.30 – The Kindness of Coconuts – How Kenya can put its coconut products on the World market - Nishant Garg, Director, Amor Coco Kenya EPZ Ltd 12.30-13.00 – Sugar reduction in food products - Tate & Lyle 13.00-14.30 – Take a bite and a deserved longer pause from all the talking and listening. Meet the event’s sponsors and exhibitors at the Expo Hall while networking with industry peers you probably have not seen in decades.

SESSION 6 - 14.00-15.30 – PACKAGING TECHNOLOGY

SPONSORED BY:

In this session, presentations will cover the various aspects of packaging with a focus on sustainability, productivity, efficiency and innovations that the food, agro and retail industry value chain in sub-Saharan Africa can adopt to improve consumer acceptance and meet industry and environmental regulation SESSION Chair: Mercy Chatyoka, QSHE Manager, Natfoods 14.30-15.00 – Packaging solutions with cost, efficiency in mind - Simiyu Wamalwa, Bosch Packaging 15.00-15.30 – Applications of sorption technology in the food industry – Mahran Ahmed, Marketing Manager, DST.

SESSION 7- 15.30-17.00 - FOOD SECURITY, POST-HARVEST TECHNOLOGY & COMMODITY MARKETS

This session will highlight technologies and activities by the private sector, Government and other actors to strengthen post-harvest, food security and formal commodity markets in the region. SESSION Chair: Tito Arunga, Agribusiness Head, FAO 15.30-16.00 – Post-harvest management through grain cooling solutions - Marc Berendsen, Sales Manager MEA, Frigortec 16.00-16.30 – Insects in human and feed nutrition – Experience in Kenya – Dr. Silvenus Konyole, Lecturer, Food Science & Nutrition, Masinde Muliro University of Science and Technology 16.30-17.00 – Improving food security through the blending of ancient grains with maize - Antony Masinde, Farm Concern International. END OF DAY TWO

SPONSORED BY:


DAY THREE – APRIL 27, 2018

07.00-8.30 – Join fellow attendees, sponsors and exhibitors at the Expo Floor for an easy morning tea and conversation session as you prepare for the day’s activities. 07.00-17.00 - Registration of delegates SESSION 8 – 09.00-10.30 – WOMEN BUSINESS FORUM BREAKFAST & PANEL DISCUSSION

SPONSORED BY:

MODERATOR: Julia Otaya, Scientific & Regulatory Affairs Manager, Coca-Cola Central, East &

West Africa

Panel Discussion: The role of Mentorship in building the next wave of women entrepreneurs, managers and researchers into Africa’s food and agro industry Leading women industry leaders, academicians and entrepreneurs discuss the challenges that they have faced as new investors and managers in the industry, academia and other ventures; and how mentorship has contributed to their professional and personal growth. They also discuss how Government and company policies on mentorship can catalyse and improve women leadership in the region PANELISTS: Prital Patel, Managing Director, Creative Y&R; Rachel Muli, Quality Assurance Manager, Unilever Ethiopia; Joyce Njogu, Head of Consulting, Kenya Association of Manufacturers (KAM); Kalpa Padia, Managing Director, Raka Cheese; Carol Mugo, Finance Controller, Cargill Agricultural Supply Chain Kenya; Alice Owambo, Senior Brand Manager, International Brand Spirits, Kenya Breweries Ltd (Diageo) 10.30-11.00 – Take a break. Network with the events sponsors and exhibitors at the Exhibition Floor as you have your midmorning tea and snacks SESSION 9 – 11.00-13.00

SPONSORED BY:

SESSION Chair: Gervasi Ngati, QA Manager, Unilever Kenya

11.00-11.30 – KEYNOTE SPEAKER DAY 3 – Vimal Shah, Chairman, Bidco Africa 11.30-13.00 – PEOPLE, MARKETING & INNOVATIONS MANAGEMENT

This session will highlight current trends in people, marketing and innovations management, with a focus on how Africa-based companies can tap into their human resource assets to boost people’s skills and performance; build market leading products and services and boost their innovations pipeline. 11.30-12.00 – Steam Infusion Technology applications in beverages processing in Africa – Ndopa Banda, Consultant on Project management for the food and beverage industry 12.00-12.30 – Innovating with consumer in mind – the case of Delamere brand in Kenya – Oliver Mary, Marketing Director, Brookside Dairy 12.30-13.00 – Recent consumer attitudes to brands in Eastern Africa - Julien Garcier, Managing Director, SAGACI Research

13.00-14.30 – Take a bite and a deserved longer pause from all the talking and listening. Meet the event’s sponsors and exhibitors at the Expo Hall while networking with industry peers you probably have not seen in decades.


SESSION 10 - 14.30-17.00 - INDUSTRY-FOCUSED PANEL DISCUSSIONS

14.30-15.30 – Panel Discussion – Digital Technologies & the future of processing, distributing and retailing food and beverage products in Africa MODERATOR: Devan Shah, Business Development Executive, Broadway Bakery

SPONSORED BY:

AFRICA Inc.

WWW.AFRICAINCORPORATED.COM

Africa has gone mobile. No region has taken advantage of mobile than Africa. But that’s not all. Digital technologies have brought new opportunities to buy, process food products, distribute, retail and even organize farmers, disrupting the way things have been done in a region that is forecast to take advantage of these new technologies better than any other in the world. This panel discussion will showcase some of the outstanding food and related industry users of these new technologies, while asking the question, “What’s the future of digital technologies in Africa?” It will also bring out some of the gaps that still exist in the adoption of these new technologies by the region. PANELISTS: Diana Swan, Sales and Partnerships Lead, OKHi; Shudhan Kohli, Co-founder and CEO, Grey Elephant Ventures; Shreenal Ruparelia, Country Managing Director, Jumia Food; Nikki Germany, Vice President, Sales & Marketing, Copia Kenya; Francis Mbaki, Area Sales Manager, Buhler. 15.30-17.00 – Panel Discussion – Industry Business Leaders’ Forum Panel Discussion MODERATOR: Francis Juma, Founder, FoodWorld Media

CEO-level business leaders from the manufacturing, retail and foodservice sector reflect on the key investments and projects; Government policy and regulations; and new people in the region in the past year and ponder on their impact on businesses, the industry, the consumer and regional and international trade. PANELISTS: Hiten Shah, Director, Bakex Millers; Duncan Kimani, Manufacturing Director, Coca-Cola Beverages Africa; David Kamau, MD & CEO, Proctor & Allan; Robert Kagunda, CEO, Britania Foods; Geoffrey Gangla; CEO, Genghis Capital; Quentin Rukingama, Business Development Director, Africa – Bunge. 17.00-18.00 – Relax and unwind now, and get ready for the fun side of the event. Grab a drink and network with sponsors, exhibitors and event attendees at the Expo Hall, as you discover new business opportunities and discuss the conference and expo’s key highlights. Plan for the next AFMASS editions in Zambia, Kenya and Nigeria in the next year or two.

18.00-19.30 - AFMASS EXCLUSIVE - SPECIAL SCREENING OF THE FOOD EVOLUTION MOVIE – a critical look at the role of science, GMOs regulation in food security – the first screening in Eastern Africa! 19.30 – TILL LATE – OFFICIAL AFMASS DINNER NOTE: Admission to the movie, Dinner ceremony is subject to terms and conditions. Contact the organisers for your tickets on +254 725 34 39 32 or info@foodworldmedia.net. Admission to this session only costs US$60 or KSH 5,000 plus VAT; sponsors, exhibitors and paid AFMASS delegates get free access to the movie, Awards and Dinner ceremony)

AFRICA MANUFACTURING & SAFETY SUMMIT (AFMASS)


SPEAKERS & PANELISTS

Jesse Kamau Sales Manager, Atlas Copco

Linda Jackson Director, Food Focus SA

Virginia Nyoro Manager - Quality Systems, Brookside Dairy

Grant Little Station Manager, DNV GL South Africa

Diana Swan Sales & Partnerships Lead, OKHi

Shreenal Ruparelia Country MD, Jumia Food

Devan Shah, Business Development Executive, Broadway

Alice A. Owambo Senior Brand Maneger, EABL

Charity Magwenzi R&D Manager, Capwell Industries

Monique Tredoux Marketing Manager, DSM Nutritionals

Greg Garrett Director, Food Policy & Financing, GAIN

Anton Hanekom Executive Director, Plastics SA

Nishant Garg Managing Director, Amor Coco Kenya

Neels Poesrstamper Technical Service Manager, Tate & Lyle

Silvenus Konyole, PhD Lecturer, MMUST

Caleb Gekombe Performance Flooring Manager, BASF

Priv Haria Business Development, PET Recyclers

Kalpa Padia MD, Raka Cheese

Hiten Shah Director, Bakex Millers

FOODBUSINESSAFRICA.COM

Duncan Kimani Director, Manufacturing, CCBA

FOOD BUSINESS AFRICA | MARCH/APRIL 2018 19 AFRICA MANUFACTURING & SAFETY SUMMIT (AFMASS)


Rachel Muli Quality Manager, Unilever Ethiopia

Loucif Soumeya Industry Manager, BioMerieux SA

Beatrice Atieno Manager, KEBS

Brenda Obura Food Safety Officer, Ministry of Health

Caroline Mugo Financial Controller, Cargill

Ndopa Banda Beverage industry Project Consultant

Sarah Ockman, Global Lead, IFC Food Safety Advisory

Grace Ngari Food Safety Consultant

Julien Garcier Marketing Director, SAGACI Research

Oliver Mary Marketing Director, Brookside Dairy Ltd

Patrice Mumbo Production Executive, Trufoods

Lois Ndiba Director, Food Safety International

Shudhan Kohli CEO, Grey Elephant Ventures

Quentin Rukingama Business Dev. Director, Bunge

Geoffrey Gangla CEO Genghis Capital Limited

Marinda Venter Dietitian, GIFSA South Africa

Gervasi Ngati Quality Assurance Manager, Unilever

Prital Patel MD, Creative Y&R

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MARCH/APRIL 2018| FOOD BUSINESS AFRICA

Joyce Njogu Head of Consulting, KAM

Sammy Lamba Director, Food Hygiene, Diversey

FOODBUSINESSAFRICA.COM


SAVE 2017 BROCHURETHE DATE

OCTOBER 3-5, 2018 LUSAKA, ZAMBIA

(VENUE TO BE COMMUNICATED SHORTLY)

Zambia & SADC region’s first Food, Beverage and Milling Industry Conference & Exhibition

ALL

MEET ^ REGIONAL AND INTERNATIONAL SUPPLIERS OF: Food, Beverage & Milling Equipment

Industry & Consultancy Services

Ingredients & Chemicals

Engineering Services & Solutions

Packaging Equipment & Solutions

Supply Chain & Warehousing

Laboratory & Food Safety Solutions

Solutions

FREE

EXPO ENTRY

FREE CONFERENCE ENTRY TO INDUSTRY LEADERS FROM MANUFACTURING, RETAIL & FOOD-SERVICE INDUSTRY IN AFRICA

LIMITED CONFERENCE SEATING. REGISTER NOW!

Tel: +254 725 343 932 • www.zambia.afmass.com 1

FOODBUSINESSAFRICA.COM

FOOD BUSINESS AFRICA | MARCH/APRIL 2018

21


WORLD IN NUMBERS

90%

UK

Target for cyclable plastics packaging committed by 2Sisters Group by 2020

IRELAND

85%

Rise in operating income of Dairy Gold after recording rise in volumes in 2017

SCOTLAND USA

35%

Increase in sustainably sourced cocoa by Mondelez International through its new Cocoa Life program a report

4 USA

USA

207M

FRANCE

Number of eggs recalled by American farm after a Salmonella scare

USA

Value of American craft beer exports after a 3.6% growth in the industry in 2017

US$1.9 B

American JM Smucker’s value of acquisition of Ainsworth Pet Company

36%

Amount of carbon emissions target by fast food giant McDonald’s by 2030, in new sustainability plans

WORLD

10.8%

Increase in sales at food company Danone in the first quarter of the year, driven by infant nutrition business in China

US$125M

USA

450

Number of jobs lost after 2 Sisters Food Group shut down its Scotland facility

12B

Tonnes of plastic waste projected by 2050, from 4.9 billion currently, if remedial measures are not put in place to manage plastics better around the world

NIGERIA

100%

Unilever Nigeria’s aim for local sourcing of raw materials by 2019 to meet its sustainability goals NIGERIA

20.4%

Increase in revenue of Dangote Sugar as high prices boost the company’s revenue and profitability

NIGERIA

US$694M

Value of investments by the Nigeria investors into the country’s rice industry value chain

ZIMBABWE

18%

Increase in revenues reported by Delta Corp in the year ending March 2018 as beer and beverages volumes rose

SOUTH AFRICA

45%

Decline of wheat import tariff in South Africa following drop in international prices in March

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MARCH/APRIL 2018| FOOD BUSINESS AFRICA

FOODBUSINESSAFRICA.COM


EUROPE

Danish dairy company Arla’s investment commitment in 2018, as it ramps up its 2020 growth ambitions

30%

SWITZERLAND

US$655M

Reduction of sugars in Nestle’s new chocolate bars using its new sugar technology

CHINA

7.4M

Estimated imports, in metric tonnes, of beef into China in 2018 as local demand continues to rise SWITZERLAND

FRANCE

US$648m

US$191B

Value of Givaudan’s acquisition of 40% stake in French company Naturex

Value of French food processing sector after a 5.6% increase in production

SAUDI ARABIA

INDIA

US$143 M

ISRAEL

Value of Danone’s stake it sold in Saudi Arabian dairy company Al Safi Danone to

18.8%

NADEC

Value of sales increase at flavour company Frutarom due to improved organic growth

INDIA

10%

Decrease in volume of beer sales after a ban on liquor sales on highways

SINGAPORE

US$163M

AFRICA

100

Fast food restaurant Pizza Hut opened its 100th store in 13 sub-Saharan Africa countries, plus another 90 in Northern Africa

NIGERIA

100M

Tonnes of wheat forecasted this year, following conducive weather conditions

12%

Projected increase in rice imports into Nigeria in the 2018/19 season to 2.9 million tonnes, consumption will rise to 4% to 6.7 million tonnes

KENYA

Amount of financing agribusiness giant Olam received form the Asian Development

AUSTRALIA

3.2M

4M

Forecasted production of oilseeds from canola and cotton seeds, in metric tonnes, for the 2018/2019 production season

Tonnes – Value of maize production forecast for 2018/19 after improved weather conditions TANZANIA DRC

TANZANIA

20%

Increase in rice imports from Pakistan in the last year, valued at US$29.6 million

US$100M

Investment of AB InBev in a new beer plant in Dodoma after its beer volumes jumped by 20% SOUTH AFRICA

DRC

45%

Reported fall in South Africa’s pork industry prices after the Listeria scare hit the country

SOUTH AFRICA

NEW ZEALAND

45,000

Tonnes of beef imports expected in 2018, flat from last year’s figures

FOODBUSINESSAFRICA.COM

US$348M B

Loss incurred by Fonterra after a 36% tax-loss in its half year to January

FOOD BUSINESS AFRICA | MARCH/APRIL 2018

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CALENDAR OF EVENTS

March 20-23, 2018

May 13-15, 2018

June 12-15, 2018

Anuga FoodTec Cologne, Germany Focus: Food & Beverages www.anugafoodtec.com

International Conference on Nutrition and Food Sciences (ICNFS) Lisbon, Portugal Focus: Nutrition www.icnfs.org

FOOMA Japan Tokyo, Japan Focus: Food Industry www.foomajapan.jp

May 15-17, 2018

June 19-20, 2018

Vitafoods Europe Palexpo, Geneva, Switzerland Focus: Nutraceuticals www.vitafoods.eu.com

International Grains Council Grains Conference Queen Elizabeth II Centre, Westminister, UK Focus: Grains www.igc.int/en/conference/confhome

April 8-11, 2018 Food Automation & Manufacturing Conference Hyatt Regency Coconut Point Bonita Springs, Florida Focus: Food Engineering www.foodautomationconference.com

May 22-23, 2018 April 11-12, 2018 Dairy Innovations Summit Amsterdam, Netherlands Focus: Dairy www.arena-international.com/dairy

European Coffee Expo Olympia, London, UK Focus: Tea, Coffee & Beverages www.europeancoffeeexpo.com

May 22-24, 2018 April 25-27, 2018 Africa Food Manufacturing & Safety Summit (AFMASS) Conference & Expo Eastern Africa edition Nairobi Convention & Conference Centre, Mombasa Road, Nairobi, Kenya Focus: Food, Beverage and Milling Contact: FoodWorld Media Ltd Tel: +254 725 34 39 32 Email: info@foodworldmedia.net www.afmass.com

Sweets & Snacks Expo McCormick Place, Chicago, USA Focus: Sweets & Snacks www.sweetsandsnacks.com

June 4-6, 2018 Dietary Fibre Conference Rotterdam, Netherlands Focus: Dietary fibre www.dietaryfibre.org

May 9-12, 2018

June 7-8, 2018

Bakery China Shanghai New International Expo Center, Shanghai, China Focus: Bakery & Confectionery www.bakerychina.com

Sustainable Foods Summit – European edition Focus: Sustainability Movenpick Hotel, Amsterdam, Netherlands www.sustainablefoodssummit.com/europe

June 20-21, 2018 European Halal Expo Utrecht, Netherlands Focus: Halal products www.europeanhalalexpo.com

June 24-26, 2018 Africa’s Big 7 Gallagher Convention Centre, Johannesburg, South Africa Focus: Food, Hospitality www.africabig7.com

October 3-5, 2018 Africa Food Manufacturing & Safety Summit (AFMASS) Conference & Expo – Southern Africa edition Lusaka, Zambia Focus: Food, Beverage and Milling 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 COMES TO ZAMBIA!! The fast growing industry-focused trade show Africa Food 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 is the first processing, packaging and food safety focused event of its type in the SADC 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 24

MARCH/APRIL 2018| FOOD BUSINESS AFRICA

FOODBUSINESSAFRICA.COM


NEWS AWARDS

Bidco Africa wins top most award at Energy Management Awards ceremony

KENYA – Agribusiness and manufacturing

compan Bidco Africa has been declared the overall winner of the coveted Energy Management Award at the awards ceremony held in Nairobi, Kenya. The awards, themed ‘Setting the pace in resource efficiency towards competitive

local manufacturing’, awarded over 20 companies that have achieved significant reductions in their energy consumption through implementation of energy efficient measures and technologies. Speaking during the event, Chief Administrative Secretary and Principal

Secretary, Renewable Energy, Prof. Colleta Suda noted the Government of Kenya’s commitment to providing universal energy access as a means to build and spur social economic development. “We are all aware that energy is a significant enabler in achieving the Big 4 Agenda. The Government is committed to the provision of affordable, reliable, quality and sustainable power. This is evident in the various projects that various government agencies have embarked on such as the Boresha Viwandani Initiative by Kenya Power, the development of various transmission lines by KETRACO and the geothermal development being steered by KenGen,” added Prof. Suda. The Kenyan Government has elevated manufacturing and food security as two of the four agenda items it is focusing on during the second term of President Uhuru Kenyatta’s second term.


NEWS M&A

NADEC buys Danone stake in Saudi Arabia’s Al Safi dairy The company, with expanded product range and capabilities will face off with regional dairy giant, Al Marai SAUDI ARABIA - The National Agricultural

Development Company (NADEC), the Saudi food and beverage company in which the kingdom’s sovereign wealth fund has a 20% stake, is buying its rival Al Safi Danone (ASD), in a deal that will be funded through a US$143 million capital increase. At the end of the transaction, Nadec’s existing shareholders will own 61.25% of shares and the remainder by existing Al Safi Danone shareholders, in a deal the company says will be a ‘transformative transaction that will reinforce its position as a leading regional dairy and beverage player,’ in Saudi Arabia and the Middle East region. It creates one of the Saudi Arabia and the region’s largest dairy producers, providing a critical competitor to the giant Al Marai. The deal is subject to approval by shareholders and regulatory authorities. “We are delighted to announce this Transaction and believe it will better position NADEC by creating a strong player in the Kingdom of Saudi Arabia (KSA) dairy market and reinforcing its status as a leading regional dairy and beverage company. ASD’s iconic product portfolio comprising Al

Safi and Danone-branded products will be highly complementary to NADEC’s existing product offering. The Transaction will allow both companies to better serve customers and realise benefits not available on a standalone basis. It will create a platform for future growth and, importantly, drive significant value creation for shareholders,” said Eng. Abdulaziz Al Babtain, Managing Director of NADEC when the announcement was made. A partnership between French dairy group Danone and the local Al Safi company since 2001, Al Safi Danone prides itself of having the world’s largest integrated dairy farm located in the Al Sahbaa Valley in Saudi Arabia, an all-inclusive operation that covers every operation of the dairy supply chain, from the growing of forage to the final distribution of milk and dairy products. Al Safi was established in 1981. According to the company, key strategic benefits will be created by the transaction, including increasing category participation through a broader brand portfolio in the fresh dairy, long life dairy and juice segments with the addition of well-established and complementary brands such as Al Safi and

Safio and entry to the value-added segment through the addition of a range of premium licensed brands Activia, Danette and Actimel from Danone. The company will also be better positioned to benefit from a large innovation pipeline of new products to support future growth from Danone. The deal will also enhance its regional reach in Saudi Arabia and beyond into the UAE, Kuwait, Bahrain, Jordan, Lebanon, the high-growth Iraqi market, Oman and other countries. It also expects significant synergy and potential cost optimization in its farming, manufacturing, supply chain and sourcing, sales and marketing and associated functions, plus potential revenue opportunities derived from a wider distribution network and customer reach, and trade optimisation. According to a recent report from law firm Baker McKenzie, mergers and acquisitions activity in the Middle East region has picked up 21% to US$6.6 billion in the last quarter of 2017, as companies seek to grow into new markets as investors zoom in to pick transactions.

INVESTMENT

Flour Mills of Nigeria commissions 100,000 tonnes sugar mill and estate NIGERIA - Flour Mills of Nigeria Plc, Nigeria’s food and agro-allied products leader, has commissioned the Sunti Golden Sugar Estate, located in Niger state of the country Valued at US$139.5million(N50 billion), it consists of a sugar estate and a mill, with a sugar plantation with capacity to produce 1 million tons of sugarcane per annum, roughly translating into 100,000 metric tons of sugar per year at full capacity. According to the company, the sugar estate features 17,000 hectares of irrigable farmland and a sugar mill that processes 4,500 metric tons of sugarcane per day. Located on the banks of River Niger, in Mokwa, Niger state, the Sunti Golden Sugar Estate is owned by Sunti Golden Sugar Estates (SGSE) Ltd., a subsidiary of Flour Mills of Nigeria Plc (FMN). According to the company, the estate is the purest representation of the Federal Government’s Nigerian Sugar Master Plan (NSMP) with an ambitious Backward

26

integration program that intends to set Nigeria on the path to self-sufficiency in sugar production. The farm, at peak production, will provide direct employment for about 10,000 people yearly, and impact up to 50,000 people indirectly, including 3,000 small-scale out growers who will be cultivating sugarcane to feed the mill. According to the Director Policy, Planning, Research and Statistics at the country’s National Sugar Development Council (NSDC), Hezekiah Kolawole, Nigeria losses US$600million foreign exchange annually to the importation of sugar for domestic consumption. The new plant will more than double Nigeria’s sugar production capacity, which the USDA in an April 2017 report said was set to produce 80,000 tonnes of sugar in the 2017/18 season. Sugar imports from Brazil make up more than 80% of Nigeria’s sugar imports, with the country projected by the USDA to consume 1.65 million tonnes this

MARCH/APRIL 2018| FOOD BUSINESS AFRICA

year. Sugar demand for both industrial and household use in Nigeria is set to rise this year after last year’s downturn, according to Dangote Sugar Refinery Plc. acting Managing Director Abdullahi Sule, in an earlier interview in January. Meanwhile, the company has announced a wheat seeds multiplication initiative providing farmers with certified high-quality wheat seeds and fertilizers, with an aim to collaborate with local farmers, giving them agronomic and extension services support. Alhaji Salim Muhammad, president of the Wheat Farmers Association of Nigeria said the program will help farmers address the issue of declining seeds availability as well as tackle the inadequacy of wheat seeds. Challenges surrounding wheat production in Nigeria has to be tackled according to Victor Oritedi, head of contract farming and extension services at FMN.

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APRIL 25-27, 2018

SAVE THE DATE

NAIROBI CONVENTION & CONFERENCE CENTRE OPPOSITE HILTON GARDEN INN HOTEL NEAR JOMO KENYATTA INT. AIRPORT MOMBASA ROAD, NAIROBI

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

ALL MEET REGIONAL AND INTERNATIONAL SUPPLIERS OF:

^

Food, Beverage & Milling Equipment

Industry & Consultancy Services

Ingredients & Chemicals

Engineering Services & Solutions

Packaging Equipment & Solutions

Supply Chain & Warehousing

Laboratory & Food Safety Solutions

Solutions

FREE

EXPO ENTRY

FREE CONFERENCE ENTRY TO INDUSTRY LEADERS FROM MANUFACTURING, RETAIL & FOOD-SERVICE INDUSTRY IN AFRICA LIMITED CONFERENCE SEATING. REGISTER NOW!

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

CONFIRMED FOODBUSINESSAFRICA.COM SPONSORS

FOOD BUSINESS AFRICA | MARCH/APRIL 2018

27


NEWS SUSTAINABILITY

Nestlé announces plan to switch to re-usable or recyclable packaging by 2025

SWITZERLAND – Nestlé, the multinational food and beverage company, has announced its ambition to make 100% of its packaging recyclable or re-usable by 2025, joining a growing list of companies to announce such ambitious goals in recent times. With a target to ensure that none of its packaging ends up in landfill or as litter,

Nestlé believes that there is an urgent need to minimize the impact of packaging on the environment, plastics included. The company’s announcement comes after CocaCola set the same goal, with a vision to help collect and recycle the equivalent of 100% of its packaging by 2030. Legislations are also increasingly tightening around plastic packaging around the world, with the EU setting a plastics strategy that aims to have all plastic packaging in the block reusable or recyclable by 2030. “Plastic waste is one of the biggest sustainability issues the world is facing today. Tackling it requires a collective approach. We are committed to finding improved solutions to reduce, re-use and recycle. Our ambition is to achieve 100% recyclable or reusable packaging by 2025,” said Nestlé CEO Mark

Schneider. Nestlé will focus on three core areas in its new strategy: elimination of non-recyclable plastics; encouraging the use of plastics that allow better recycling rates; and elimination or changing of complex combinations of packaging materials to simpler formats. It has also committed to playing an active role in the development of well-functioning collection, sorting and recycling schemes across the countries where it operates. The company will be working with value chain partners and industry associations to explore different packaging solutions to reduce plastic usage facilitate recycling and develop new approaches to eliminate plastic waste. It will also be labelling its plastic product packaging with recycling information to help consumers dispose of it well.

SUSTAINABILITY

Skol Brewery upgrades to a new waste-to-energy waste water system

RWANDA – Rwanda’s Number 2 brewery Skol Brewery has upgraded its Rwandan Kigali plant with a world-class waste-toenergy technology that turns wastewater organic pollutants into biogas, or green energy.

The new continuous system efficiently removes organic waste material from production wastewater, converting over 90% of the wastewater’s Chemical Oxygen Demand (COD), according to the Global Water Engineering (GWE) company. The new installation, incorporating some of the world’s most efficient and proven GWE waste-to-energy technologies, aligns Skol Brewery with top international environmental wastewater standards. “The methane-rich biogas produced by the ANUBIX process is reused to power an existing boiler unit, replacing baseline power requirements, which is a further benefit to the brewery,” said GWE Chairman and CEO Mr Jean Pierre Ombregt.

The new process at the Kigali plant involves GWE’s anaerobic waste digestion technology used in more than 150 wasteto-green energy plants worldwide, including dozens of breweries. The technology decreases operating costs while improving sustainability outcomes, says GWE. According to the World Health Organisation’s African Regional Office, the country has a strong need for sustainable technologies. “Rwanda undoubtedly faces significant environmental challenges, and needs to invest significantly in adapting to current climate challenges as well as in adaptation to future climate change,” the company said in a statement.

FINANCING

USAID Hub partners EAGC to address trade finance gap for traders and millers EAST AFRICA - The USAID Hub is working

with the Eastern Africa Grain Council (EAGC) to develop a Trade Facilitation Fund that will address gaps in access to trade finance for grain traders and millers across the East African Community. The fund will accumulate a capital base, which will provide a new financing option for EAGC members and facilitate regional grain trade. It follows recent work between the Hub and EAGC to support its Secretariat in the revision of nine staple grain standards and development of two new standards for 28

sampling and testing methods, which were recently introduced. The revised standards will reduce inefficiencies in region grain trade such as quality disputes and double testing of grain at borders, notes the Hub. The Hub has identified the lack of access to trade finance as a major barrier to increased regional grain trade following engagements with the EAGC. Evidence shows that grain traders and millers struggle to access working capital from traditional channels due to onerous application requirements and the need for collateral, which confines their

MARCH/APRIL 2018| FOOD BUSINESS AFRICA

capital bases, thereby inhibiting the volumes that traders and millers are able to purchase. The proposed fund will enable traders to access credit to significantly increase their trade volumes, contributing to the USAID Hub’s objective of doubling intra-regional trade of food staples within the EAC. It will also support the G-Soko system, EAGC’s online grain trading platform, by availing financing to facilitate deals created in the system, says the Hub.

FOODBUSINESSAFRICA.COM


NOMINATE YOUR NEW PRODUCTS AND INDUSTRY LEADERS FOR EASTERN AFRICA’S LEADING FOOD INDUSTRY AWARDS CEREMONY Awards ceremony postponed to August 10, 2018. Nominations close July 6, 2018.

NEW PRODUCT OF THE YEAR AWARDS Celebrate new products that stand out from the crowd for their uniqueness, innovative use of ingredients and packaging while meeting sustainability goals and consumer nutrition needs 1. Dairy Product of the Year 2. Milling, Cereals & Pulses 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. Alcoholic Beverage Product of the Year 7. Soft Drink Beverage Product of the Year 8. Hot Beverage Product of the Year 9. Sugar & Confectionery Product of the Year 10. Culinary & Condiments Product of the Year 11. New Product with Most Outstanding Packaging of the Year 12. New Product with most Innovative use of Ingredients

INDIVIDUAL AWARDS Celebrate 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 AWARDS CEREMONY TAKES PLACE APRIL 27, 2018 AT AFMASS KENYA EDITION. WELCOME

FOODBUSINESSAFRICA.COM

www.awards.foodbusinessafrica.com

FOOD BUSINESS AFRICA | MARCH/APRIL 2018

29


NEWS FINANCIALS

Cargill reports 22% fall in nine months results as soft commodity markets take toll

MINNEAPOLIS – Cargill has reported

financial results for the fiscal 2018 third quarter and first nine months ended Feb 28, 2018, reporting a 22% decrease in its net income from last year’s US$715 million to US$559 million, impacted by sluggish agricultural commodity markets. These earnings included a net charge of US$161 million related to the recently enacted U.S. Tax Cuts and Jobs Acts, which had adjusted operating earnings at US$559

million. Net earnings for the quarter on a U.S. GAAP basis were US$495 million compared with US$650 million last year, while the ninemonth net earnings equalled US$2.39 billion compared with last year’s US$2.49 billion. Third-quarter revenues rose 2% to US$27.85 billion, increasing the year-to-date figure to US$84.32 billion. “Our steady results from operations demonstrate that our strategic direction is the right one. The performance of our team worldwide keeps Cargill moving ahead, preparing us to continue to grow,” said David MacLennan, Cargill’s chairman and chief executive officer. MacLennan noted that the company is taking action to transform and differentiate itself, including taking an integrated approach

to its global operations, ongoing appraisal and enhancement of assets along supply chains, and investments in new capabilities and technologies, ‘in a time of continually changing expectations.’ Soft commodity markets have given major agricultural giants headache, with several realignments continuing in the sector. Two of Cargill’s competitors Bunge and ADM were reported to have discussed the possibility of ADM buying Bunge, but the talks broke down in the middle of March. In the grains seeds business, regulators in the key European Commission gave their node to the planned buy of Monsanto, the American seed giant by German agrochemicals leader, Bayer. With the EU’s node, it is expected that the deal will close in the near future.

M&A

American JM Smucker buys pet food producer as key giants focus on the sector USA – The American manufacturer of fruits spreads, JM Smucker, has become the latest food company to acquire or expand its portfolio of pet food products by announcing the buy out of Ainsworth Pet Nutrition for US$1.9 billion. The acquisition aims at driving growth and expanding the company’s presence in the fast-growing premium pet food category. The maker of Smuckers and JIF among other brands, is planning to buy the producer of Rachael Ray Nutrish brand of pet food, joining General Mills that entered the pet category in February by buying the Blue

Buffalo comnay for US$8 billion. Cargill also acquired pet food maker Pro Pet in January for an undisclosed sum, among other recent investments in its animal nutrition business around the world. Ainsworth is a US producer, distributor, and marketer of premium pet food and pet snacks under a leading brand, Rachael Ray Nutrish, covering a range of natural meats and long lasting chews category. Addition of Nutrish brand to its portfolio expands its cover in in the premium dry dog food segment within the grocery and mass channels, a key growth driver for the overall category, says Jm

Smucker. The transaction includes two manufacturing facilities owned by Ainsworth, located in Meadville, Pennsylvania and Frontenac, Kansas, and a leased distribution facility in Greenville, Pennsylvania. The company also plans to review its US baking business, with the possibility of a sale, which may include products sold in the US, along with all relevant trademarks and licensing agreements, and the company’s manufacturing facility in Toledo, Ohio in the US.

SUSTAINABILITY

AB InBev develops new-energy efficient brewing method to reduce emissions by 5%

– The world’s largest beer company AB InBev has developed a new energy-efficient brewing method that will reduce CO2 emissions by approximately 5%

BELGIUM

30

once the technique is adopted in its entire brewery network. With the new method, the company seeks to achieve boiling without emitting energy required to heat the water to boiling point, thus cutting on these emissions without compromising on taste of the beer. For the new technique, the brewer needs to heat the beer but does not wait to reach boiling point but adds nitrogen or CO2 into the tank. The new technique, developed over four years of testing in Belgium, has positive ecological implications, and could be adopted by other brewers to save on energy and about 80% water used in brewing. “Boiling and these gas bubbles are the

MARCH/APRIL 2018| FOOD BUSINESS AFRICA

sacred formula in the brewing process. Each brewer goes through a boiling process. Our innovation is to heat everything up to just below boiling point, which provides 80% energy savings at this point in time. There is a lot less steam released, which allows you to spend less on water. In our case, we managed to go from 5% evaporated water to less than 1%,” said David De Schutter, AB InBev’s research director for Europe. The company recently announced new sustainability goals, including a 25% total reduction target for CO2 emissions across its network of breweries around the world.

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NEWS M&A

Givaudan acquires French natural flavours company Naturex SWITZERLAND – Swiss manufacturer

of flavors and fragrances Givaudan has announced that it has entered into an agreement to acquire 40.6% of the shares of Naturex, a French public listed company for US$648 million. The agreement is part of Givaudan’s 2020 strategy to strengthen its capabilities in natural flavour solutions for its customers. “The acquisition of a significant shareholding in Naturex fits fully with our

2020 strategy to expand our offering to deliver natural products to our customers. We look forward to working with the management and shareholders of Naturex in the coming months to secure their support for the acquisition,” said Gilles Andrier, CEO of Givaudan. Louie D’Amico, President Designate of Givaudan’s Flavour Division also said: “Consumers around the world are increasingly demanding more natural and

organic products from food and beverage companies. Naturex will be extremely complimentary to the acquisitions we have announced in this space over the last few years, namely Spicetec, Activ International, Vika and Centroflora Nutra.” It also intends to launch a mandatory cash tender offer for all remaining outstanding shares of Naturex, at a price of US$168 per share.

SUSTAINABILITY

UK to introduce deposit return scheme for all bottlea and cans to tackle waste UK – The UK government has announced

that all bottles and cans whether plastic, glass or metal, will be covered by a deposit return scheme (DRS) to reduce on the amount of plastics and other waste going into the land or the sea. In a statement issued by Michael Gove, UK’s Environmental Secretary, the details of the DRS are not yet clear and are subject to further consultation set to happen later

in the year. “We can be in no doubt that plastic is wreaking havoc on our marine environment. It is absolutely vital we act now to tackle this threat and curb the millions of plastic bottles a day that go un-recycled. We have already banned harmful micro-beads and cut plastic bag use, and now we want to take action on plastic bottles to help clean up our oceans,” said Gove.

According to the authorities, consumers will have to pay an extra cost for their favourite drinks but in the long run they’ll receive their money back by recycling the containers at designated sites using ‘reverse vending machines’. Governments around the world, in collaboration with private sector organizations have come out strongly to advocate for clean environment by increasing recycling levels of packaging.

PARTNERSHIPS

Sangati Berga bags US and Canada distribution deal for milling equipment – Brazilian grains industry equipment provider Sangati Berga and American design and equipment company Kice Industries Inc. have announced the signing of an agreement to form a strategic alliance for joint distribution, sales and promotional efforts for new and existing grain milling projects in the United States and Canada. “Bringing together over 100 years of combined experience in the milling industry will bring great value to our customers in

BRAZIL

the U.S. and Canada,” said Andy Forrester, Director of Sales for Kice Industries. It will also allow both companies to combine their resources to deliver turn-key solutions and industry-leading customer support. “We are very excited to enter into this strategic alliance with such a renowned company as Kice Industries, who are known for the high quality of their equipment and excellent customer service”, said Ricardo Pereira, President of Sangati Berga.

Kice Industries designs complete industrial air systems and builds most of the equipment specified for these systems. It also has an extensive history in the grain milling industry. Sangati Berga was founded in 1992, with a manufacturing facility in Brazil, where the industry builds a complete range of equipment for grain milling, mix plants serving the food industry and animal feed plants.

REGULATORY

Kenya considers mandatory blending law to improve ancient grains utilisation KENYA – The Kenyan government is considering to enact a regulation that will require millers to include other local, underconsumed grains such as cassava, millet, and sorghum in flour blends to ensure sufficient production of food. The regulation to improve the use of these ancient grains is premised to enhance food security by including these crops into the national food chain, with the aim to tackle food deficits resulting from prolonged drought conditions in the country. FOODBUSINESSAFRICA.COM

In 2012, the Kenyan government joined more than 159 countries, which have endorsed the World Declaration on Nutrition by passing mandatory food fortification legislation, meant to reduce prevalence of vitamin and mineral deficiencies. Speaking at a meeting in Nairobi in April, officials from Ministry of Agriculture reiterated that apart from maize production, there was need to consider a number of policies focusing entirely on agriculture, food security and nutrition, including a revamped

cereals policy. “Food and nutrition security is an important pillar in the realisation of the Big Four Agenda. Blended maize flour enhances both food and nutrition security. As an initial step, maize flour blending shall include sorghum, millet and cassava because they are drought-tolerant and nutritious with highcalcium content,” said Dr Grace Chirchir, the deputy director of Agriculture in charge of agribusiness and value addition. FOOD BUSINESS AFRICA | MARCH/APRIL 2018

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NEWS NEW PRODUCTS

PepsiCo partners Suntory to launch new cola drink for the Japanese market

JAPAN – Japanese brewing and distilling company group Suntory and Pepsi have announced that they will release a cola drink exclusively for the Japanese market called J-Cola. The release of the drinks comes as part of a larger marketing movement by Suntory called ‘Japan & Joy’, which aims to ‘revitalise the cola market’ in the country by creating

products with Japanese consumer preferences in mind. The new flavours will be available as part of the new range, including a Regular cola drink, a zero calorie variant aptly named Zero and Midnight, which is aimed at consumers who will drink the beverage in the evening. Suntory distributes Pepsi products in Japan, and it claims the drinks were developed in response to feedback from over 100 Japanese consumers who desired a new soft drink option. The design for the bottles adheres to this strategy, as the pattern for each bottle features

a design reminiscent of Hokusai’s ukiyoe print ‘The Great Wave off Kanagawa’, as well as traditional calligraphy for the ‘J-Cola’ product name. This comes after their business rival CocaCola recently released special edition drinks such as Coca-Cola Peach in the country and has deployed a similar marketing strategy, as the peach drink was released to capitalise on the increased demand for peach-flavoured products during the Hina Matsuri festival, which celebrates the coming of spring

SUSTAINABILITY

Unilever partners to develop plastic waste recycling technology Company also targets 100% sourcing of materials in Nigeria in two years NETHERLANDS – Unilever has partnered

with Ioniqa, a high-tech chemical company and a producer of PET resin Indorama Ventures to develop a technology that would allow recycling of plastic waste into virgin grade material for the food industry. Unilever says upon successful prove at industrial scale, the technology will allow 100% recycling of PET into high quality, food-grade packaging, having seen only 20% of plastic waste into recycling worldwide. The technology, pioneered by Ioniqa, is able to convert any PET waste – including coloured packs back into transparent virgin grade material. “We want all of our packaging to be fit for a world that is circular by design, stepping away from the take-make-dispose model that we currently live in. This innovation is particularly exciting because it could unlock

one of the major barriers today – making all forms of recycled PET suitable for food packaging. Making the PET stream fully circular would be a major milestone towards this ambition, not just helping Unilever, but transforming industry at large,” said David Blanchard, Unilever Chief R&D Officer. The sustainable packaging innovation complements a commitment Unilever made in 2017 to make all of its plastic packaging being reusable, recyclable or compostable by 2025. Meanwhile, Unilever Nigeria has embarked on local sourcing of raw materials by partnering with local partners to enhance capabilities in production with an aim to achieve 100% in local sourcing by 2019. The company will be investing in both capacity and capabilities of the companies to enable them add value to farm produce

before supplying them to the company. Having achieved over 90% in local sourcing of packaging materials, the company is looking forward to overcoming challenges of local vendors’ capacity to meet international standards. Unilever West Africa Procurement Director, Thomas Mwanza said that the steps align with the government’s backward integration policy, which connects to its ‘Partner to Win’ initiative that will contribute technical skills for commercial farming in Nigeria. The company’s drive for sustainable production seeks to solve key challenges including failure to meet international standards and the fact that locally produced goods were more expensive than imported goods.

REGULATORY

South Africa’s sugar tax takes effect, as the UK also commences implementation SOUTH AFRICA – South Africa’s sugar tax billed as a new health-promotion levy has started to be implemented, requiring consumers to pay more for products with added sugar or other sweetening matter that exceeds four grams per 100ml. The proposed tax on sugar-sweetened drinks was proposed by the Finance Minister in February 2016 to address issues concerning diabetes, obesity and related diseases. The need to stem obesity, a disease regarded to stem from sugary soft drinks especially among children, has called for a caloriecontrolled diet around the globe, prompting similar sugar levies in other countries such as UK and Ireland, which also commenced 32

enforcing a sugar levy in April. As consumer attitudes, tastes and preferences change towards healthy living, food manufacturers are left with no other option but to embrace product formulation in order to cope with such legislation, even as the major producers of these sugary beverages continue to argue that taxation of a single product, which is not consumed by a majority of the population on a regular basis, will not be the silver bullet on the promise of a healthier population. Food companies in South Africa and the UK and Ireland have embarked on extensive reformulation of their drinks over the past two years exempting the majority of the

MARCH/APRIL 2018| FOOD BUSINESS AFRICA

companies’ portfolio from the government tax, with reports that the authorities’ financial targets that were set before the taxation came into force will be hard to deliver after these formulation changes. Coca-Cola UK, a major player in the country, announced in a recent post that it was not changing the formulation of its iconic Coca-Cola drink, to meet consumer tastes that prefer the product in its full sugar variant, but that it was reducing the package size of the 2-litre package to 1.75 litres. However, some of the other variants including Sprite and Fanta have been reformulated.

FOODBUSINESSAFRICA.COM


SUSTAINABILITY

Dangote Sugar breaks profitability records as high sugar prices boost earnings NIGERIA – Nigeria’s biggest refined sugar manufacturer, Dangote

Sugar, has grown its revenue by 20.44% to US$568.28 million in its fiscal year ended December 31, 2017, attributed to high prices of refined sugar in the country. The company posted a profit before tax of US$149m, a 173% increase from US$54.52million recorded in the corresponding period of last year. “We are very pleased with the 2017 business year, with an increased revenue growth of 20.4% over US$466.2m recorded during the same period in 2016, and US$77.84m gross profit increase of 121.8%, the best recorded in the history of the company,” said Abdullahi Sule, acting group managing director. According to Sule, the company remains committed to its Backward Integration Programme (BIP) plan with focus to achieve 1.08 million metric tonnes of refined sugar from its manufacturing facilities in the next 6 years.

FOOD SECURITY

Kenya’s maize production to bounce back in 2018 as weather improves KENYA – Kenya’s maize and wheat production is expected to

increase to 3.2 million tonnes and 360,000 respectively, in the 2018/19 production year, according to a report from the Foreign Agricultural Service of USDA. The country’s maize production will increase by 10% from 2.9 million tonnes in 2017-18 due to an improvement in weather conditions after a prolonged drought and ability to contain pests and diseases including fall army worm and maize necrosis. Based on USDA report, there will be a marginal increase in Kenya’s harvested maize area in 2018-19 due to the government’s efforts in enhancing agriculture for a food secure nation. Increased demand for maize, wheat and rice in Kenya is driven by surge in human consumption as there’s increased use of corn and wheat in livestock feeds manufacture. The Government of Kenya has elevated enhanced food security to be one of the key four agenda items to focus on, with the others being manufacturing, healthcare and affordable housing.

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

FROM FOOD TO FEED INDUSTRY AND MORE . . . The Africa Food Manufacturing & Safety Summit (AFMASS) Conferences & Exhibitions are the only regional events that bring together the food, beverages, milling, baking, foodservice and animal feed industry from Africa and beyond. With one exhibition floor and two conference streams, AFMASS Conferences and Exhibitions give a 360 degree view of the industry in Africa, like no other. Further, a new edition of AFMASS in Zambia from 2018 will open up the Southern-Central region of Africa. Sign up today on the website to sponsor, exhibit, visit and attend the conferences today.

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NEWS SUSTAINABILITY

Arla to introduce bumpy labels to reduce waste at retail level

– International dairy cooperative Arla is set to introduce new high-tech food labels to tackle food waste and prevent consumption of expired products in the UK. The Mimica Touch ‘bumpy’ label, developed by a start-up company Mimica, will protect consumers from picking potentially spoilt products, as it turns bumpy when the food has expired. To reduce food

DENMARK

waste, the label deteriorates at the same rate as the packaged dairy product, giving indication to whether the food is edible or is fit to go into waste. “In most cases, the worst case scenario never comes, and so with the Mimica Touch, we would allow supermarkets to display the longer ‘expected date’ because if something does go wrong, then the label will turn bumpy and the product can be pulled off the shelf,” said Solveiga Pakštaitė, Founder, and Director of Mimica. “By bringing in a biologically-accurate indicator, more often than not it will prove that our food lasts a lot longer than we think it does, and this has the potential to reduce enormous amounts of food waste,” he added. The technology was developed by the Mimica R&D team in collaboration with the University of Chester that that provided

the rare gels research lab. According to Solveiga, the label was calibrated specifically for each food product and gives a tactile response – smooth when fresh and bumpy when the food is no longer safe for consumption. If the food is spoiling quicker than usual due to an increase in temperature, so will the label. WRAP has estimated that dairy products could have an extra three days of shelf life with label technology such as Mimica Touch able to accurately indicate the freshness of products In anticipation for a commercial roll-out of the new labels, Arla will run consumer tests in the UK this year to measure acceptability of the product among consumers. Arla says that the innovation is part of itsGood Growth 2020 strategy that seeks to do business responsibly and sustainably.

SUSTAINABILITY

Hershey announces new cocoa sustainability strategy, to invest US$500 million by 2030

USA – American confectionery company,

Hershey one of the largest chocolate manufacturers in the world has announced a new holistic cocoa sustainability strategy. Called Cocoa For Good,the comprehensive strategy addresses the most pressing issues

facing cocoa-growing communities: poverty, poor nutrition, at-risk youth, and vulnerable ecosystems. The company says that it seeks to bring positive change in these areas through collaborative programs, partnerships and significant investment, including a US500 million commitment by 2030. “A sustainable cocoa supply depends on a multi-stakeholder collaborative approach to find solutions to the social, environmental and economic challenges facing cocoagrowing communities,” said Susanna Zhu,

Chief Procurement Officer. According to Zhu, the strategy focuses the company’s investments and work in four key areas: nourishing children, elevating youth, prospering communities and preserving ecosystems. It is expected to impact the lives of thousands of farmers in cocoa-growing regions with a focus on West Africa where about 70% of the world’s cocoa is grown.

AGRIBUSINESS

Olam to seek out investments in aquaculture in West Africa to meet rising protein demand NIGERIA – Singapore-based global

agribusiness company Olam is conducting a feasibility study on fish farming in West Africa, especially Nigeria as it considers expansion strategy in a continent where protein demand is rising. A surge in population growth, rising incomes and urbanization are mounting pressure on the livestock sector to meet the growing demand for high-value animal protein. According to Anantharaman, Chief Operating Officer, Olam was considering

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to start the venture with partner and shareholder Mitsubishi Corp, which owns fish businesses and provides a wide range of quality seafood. The partners are targeting the animal protein food business attracted by urbanization and infrastructure including cold chains, which permit trade in perishable goods. “There’s a strong growth pipeline for the next 20-30 years that we can see in Africa, as it has happened in Vietnam or Indonesia, or China. We think that as the African population grows and the economics

MARCH/APRIL 2018| FOOD BUSINESS AFRICA

improves, we could really shift to higher protein,” Anantharaman said. Olam operates poultry and fish feed facilities in Nigeria, in which it invested a total of US$150m in the last few years. According to Anantharaman, the expansion plan seeks to fill a gap where a lot of fish is imported. The investment is driven by potential to grow fish locally in the region and make it far more easily available and at cheaper cost in the region.

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

MEETING PLACE FOR INDUSTRY LEADERS

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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.

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NEWS M&A

Indonesian food delivery company acquires Uber Eats service in the country

INDONESIA – South East Asia’s giant food delivery service GrabFood has completed acquisition of the business of rival Uber Technologies, the largest-ever deal of its kind in the region.

The deal will not only make the Singapore firm a dominant player in the region’s ridehailing market but will also make GrabFood one of the biggest food delivery businesses in Southeast Asia, reports DealStreet Asia. “We will rapidly and efficiently expand GrabFood into all major SEA countries in the next quarter. We’re going to create more value for our growing ecosystem of consumers, drivers, agents – and now merchants and delivery partners,” said Grab co-founder Tan Hooi Ling. Grab and Uber are working together to promptly migrate Uber drivers and riders, Uber Eats customers, merchant partners, and delivery partners to the Grab platform.

“With the new GrabFood app, we strive to become one of Southeast Asia’s largest and most popular food delivery services, offering an expansive geographic reach and quality range to suit every palate and wallet,” said a Grab spokesperson. “Grab will continue to enhance and expand its suite of offerings under Grab Financial, including mobile payments, microfinancing, insurance and other financial services for millions of underserved and unbanked consumers, micro-entrepreneurs and small businesses in the region,” the company said.

REGULATORY

European Union launches knowledge centre for food fraud and quality EUROPE – The European Commission has launched a Knowledge Centre for food fraud and quality in Strasbourg, France, stepping up the fight against fraudulent practices which impact on food food in the European Union. The centre has been established with the aim of boosting the quality of foodstuff and address concerns about food fraud, which undermines consumer confidence, and in the long run damages the entire food supply chain in block. According to the Commission, the Knowledge Centre, a network made up of experts in and outside the Commission, will support EU policymakers and national

authorities by providing access to, and sharing up-to-date scientific knowledge on food fraud and food quality issues. “The Commission takes the issue of food quality and unjustified differentiation very seriously and has already taken a number of concrete steps to tackle the issue. Providing for better scientific evidence is a crucial part of this work,” said Vera Jourova, European Commissioner for Justice, Consumers and Gender Equality. “The Centre will further contribute to collecting and processing science-based evidence. Its work will also contribute to developing a common testing methodology, which in turn will help us apply

and enforce food and consumer protection laws.” The Knowledge Centre will coordinate market surveillance activities; operate an early warning and information system for food fraud; and link information systems of member states and the commission, generate country-specific knowledge. The Knowledge Centre for Food Fraud and Quality will produce newsletters, interactive maps, databases and regular reports and will make this information publicly accessible. It will be fully funded by the European Commission.

CORPORATE

Unilever ditches double HQ concept for Netherlands, ditches UK as Brexit jitters continue

NETHERLANDS – FMCG giant Unilever

has announced that it is moving from a dual head office structure to a single headquarter based in Rotterdam, the Netherlands, dealing a symbolic blow to Britain as it negotiates its exit from the European Union. 36

Critics of Brexit have argued that leaving the European Union could stifle Britain’s economy, particularly if companies who have used London as a European base decide to move some or all of their operations to the European Continent in order to stay within the bloc’s customs rules. However, Unilever officials said that Brexit did not factor into the company’s decision. “The proposed simplification will provide greater flexibility for strategic portfolio change and help drive long-term performance,” Unilever said in a statement. Unilever’s two headquarters mirrored its legal structure, in which the company maintained separate stock listings and corporate entities in both countries after its formation by the combination of the British

MARCH/APRIL 2018| FOOD BUSINESS AFRICA

soap maker Lever Brothers and the Dutch margarine producer Margarine Unie in 1930. According to Unilever CEO Paul Polman, Unilever had originally hoped to make a decision on its structure by the end of last year, but later decided to delay it amid rising tensions in the negotiations between Britain and the European Union. “Unilever has today shown its longterm commitment to the UK by choosing to locate its two fastest-growing global business divisions in this country. As the company itself has made clear, its decision to transfer a small number of jobs to a corporate HQ in the Netherlands is part of a long-term restructuring of the company and is not connected to the UK’s departure from the EU,” said a government spokesman. FOODBUSINESSAFRICA.COM


INVESTMENTS

Krispy Kreme enters Nigeria, targets 20 outlets by 2022 NIGERIA – American doughnuts and coffee brand Krispy Kreme

Doughnut Corporation is investing US$7 million in a network of outlets as it begins its journey into the Nigerian food and beverage market. Alexander Trotter a non-executive director of Krispy Kreme said the investments in Nigeria are expected to bring dynamism to the country’s food sector through offerings that differentiate the brand from others. “We are thrilled to be expanding into Nigeria, and we are looking at other cuisines over the next few years. Our expansion into Nigeria is informed by the potential in the domestic market and the need to do something rare,” said Trotter. Anson Markle, the firm’s director, international franchise operations, said the brands’ presence in Nigeria will make it the 34th country where the firm has established its presence. Quality Foods Africa (QFA), its Nigerian partners, will be responsible for implementing the expansion of Krispy Kreme brand into the country under a development agreement that will bring 20 Krispy Kreme shops to Nigeria over a period of five years. Markle explained that while the coffee is locally sourced, its materials for doughnuts were sourced internationally to retain the standards and recipe enjoyed across its stores when asked about backwards integration policy of the food company. Krispy Kreme had earlier ventured into the South African market in 2015, its first venture into Africa and currently operates ten outlets in the greater Johannesburg area. INNOVATIONS

Arla introduces high fibre yoghurts in the UK UK – Danish dairy co-operative Arla Foods has introduced a new

range of high-fibre yogurts called Arla Fibre, targeted at consumers who do not usually consume enough fibre. The Arla Fibre ranges is also low fat, and contain 27% of the UK recommended daily amount of calcium and is high in protein. New research released by Arla reveals that the nation’s diets are stuck in a rut, with nearly two thirds (61%) of the nation eating the same or similar foods every day. “On average, the UK population only eats about 18g of fibre a day, so when the UK Government released their 2015 guidelines advising that adults should eat 30g of a fibre, we realised just how much we are lacking from our diets,” said James Quayle, brand manager at Arla Foods. “It’s no surprise that we’re struggling to get enough fibre, when traditional fibre rich foods can be bland and uninspiring, so here at Arla Foods, we set out to change all that and created a tasty yogurt which equates to 16% of the 30g recommended by the UK Government.”

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

ALL-IN-ONE INDUSTRY SOLUTIONS’ MARKET PLACE 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.

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NEWS INVESTMENTS

Flour Mills of Nigeria opens 100,000 metric tonne sugar polantation and farm in Niger State

IN NUMBERS 100,000 CAPACITY IN METRIC TONNES OF THE SUNTI GOLDEN SUGAR MILL, VALUED AT US$140 MILLION

NIGERIA – Agribusiness giant Flour Mills of Nigeria has commissioned the Sunti Golden Sugar Estate sugar mill and plantation, valued at US$139.5million, located in Niger state of the country. Consisting of a sugar estate and a mill, the new sugar plantation has capacity to produce 1 million tons of sugarcane per annum, or 100,000 metric tons of sugar per year at full capacity. The new plant will more than double Nigeria’s sugar production capacity, which the USDA in an April

2017 report said was set to produce 80,000 tonnes of sugar in the 2017/18 season. The sugar estate features 17,000 hectares of irrigable farmland and a sugar mill that processes 4,500 metric tons of sugarcane per day. According to the company, over US$2.79million (N1 billion) was invested in the state-of-the-art irrigation system that will ensure the efficient cultivation of sugar cane, with infrastructure that includes drain pumps, pump stations, and a power grid.

The investment is part of Nigerian government’s Sugar Master Plan (NSMP), an ambitious backward integration program that intends to set Nigeria on the path to self-sufficiency in sugar production. It seeks to reduce sugar importation and will save the country significant foreign exchange. Sugar imports from Brazil make up more than 80% of Nigeria’s sugar imports, with the country projected by the USDA to consume 1.65 million tonnes this year. Sugar demand for both industrial and household use in Nigeria is set to rise this year after last year’s downturn, according to Dangote Sugar Refinery Plc acting Managing Director Abdullahi Sule, in an earlier interview in January this year.

INNOVATIONS

Nestle produces first product with its revolutionary sugar technology SWITZERLAND – Food and beverage company Nestlé has unveiled Milkybar Wowsomes, the first chocolate using its new structured sugar, reducing sugar content in the bar by 30% versus comparable bars. According to the company, the product achieved the sugar reduction using only natural ingredients and with no sweeteners, with milk as the main ingredient, containing crispy oat cereal. The sugar reduction comes thanks to a scientific breakthrough that Nestlé first announced in 2016. Researchers at the company changed the structure of sugar using only natural ingredients. They created an aerated, porous sugar that dissolves more

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quickly in the mouth. This allows someone to perceive the same sweetness as before while consuming less sugar. According to Nestlé, it is committed to further advancing the nutritional credentials and wholesomeness of its children’s confectionery. It therefore plans to apply the sugar technology to further children’s chocolate brands, with the goal of reducing sugar content naturally while maintaining great taste. Nestlé started its sugar reduction journey in 2000, when it made a first public commitment to reduce sugars in a range of products by 10% between 2014 and 2016. It has pledged to further reduce the sugars in its

MARCH/APRIL 2018| FOOD BUSINESS AFRICA

products by a further 5% on average as part of a range of 2020 commitments.

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CERTIFICATION

DanoneWave receives B Corp Certification, rebrands to Danone North America FRANCE – DanoneWave, a company formed by the merger of French dairy group Danone and the American alternative milk products company White Wave Foods, has been rebranded to Danone North America The new company has also achieved B Corp Certification 2 years earlier than planned, indicating the company’s commitment to ensure success of its business across borders as well ensuring sustainable development, becoming the biggest holder of the highly coveted accolade. The two certifications bring a total of eight Danone entities that have achieved the B Corp certification, including Danone’s subsidiaries in France, Spain and UK, Happy Family in the U.S., Aguas Danone de Argentina, and Aqua in Indonesia. According to Danone, about 30% of it’sglobal business has achieved B Corp certification, with plans to become B Corp Certified across all its subsidiaries around the world. The company says the endeavor adds to its ‘One Planet One Health’ tagline, which is a reflection of its vision that ‘our health is connected with and interdependent on the health of our planet’. “People rightly expect large organizations like Danone to use their scale for positive impact. We do not take this responsibility lightly. B Corp certification is one measure that provides consumers, investors and other stakeholders with a robust framework to assess whether the company they support is having a positive impact on society and the planet. As a company with annual revenue of approximately €25 billion and more than 100,000 employees across 120 countries, our progress towards global B Corp certification proves that profitable and sustainable business is possible, no matter how large your business is,” said Danone Chairman and CEO Emmanuel Faber. For a company to achieve B Corp certification, it must prove it is doing business in a way that meets standards of social and environmental performance, transparency and accountability. Danone worked closer with B Lab, a third-party certifier of the B Corp program, toBASF achieve theAfrica certification. East - Construction Chemicals

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“B CORP CERTIFICATION IS ONE MEASURE THAT PROVIDES CONSUMERS, INVESTORS AND OTHER STAKEHOLDERS WITH A ROBUST FRAMEWORK TO ASSESS WHETHER THE COMPANY THEY SUPPORT IS HAVING A POSITIVE IMPACT ON SOCIETY AND THE PLANET.” Danone Chairman and CEO Emmanuel Faber.

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SPECIAL REPORT | FOOD INDUSTRY

SUSTAINABILITY BECOMES TOP PRIORITY FOR THE FOOD INDUSTRY Francis Juma

Sustainability has become one of the key priorities for the food industry. Food retailers, manufacturers and distributors are jostling to deliver unique sustainability goals in the face of increased concerns for the future of the world in which we live.

I

n a fairly short span of time, sustainability has moved up the chain of concerns for the food industry. Rising concerns about dwindling resources in the face of increasing population around the world, and climate change, have caused the world to start asking tough questions about whether current wasteful practices can deliver safe, affordable food and clean environment in the face of the forecast that the population on the planet will rise to 9.7 billion by 2050, and 11.2 billion by 2100. Even though a

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drive towards delivering shareholder value still keeps business managers awake at night, the push to blend delivering to equity owners and delivering for the community in which companies operate has taken an invigorated focus in recent times. In the 1990s, it was difficult to come across individuals with the word ‘sustainability’ on their business cards. Or company websites with a menu on sustainability. Neither was it easy to find a company releasing a sustainability report

MARCH/APRIL 2018| FOOD BUSINESS AFRICA

Skol Brewery in Rwanda has installed a new water-to-waste system that will reduce the company’s impact on the environment

as a stand-alone document, separate from its financial reports. Not any more. A shift by the United Nations (UN) towards the Sustainable Development Goals (SDGs) after the expiry of the Millennium Development Goals in 2015, did reinforce the sustainability agenda on the world’s agenda, setting off a wave of breakthrough FOODBUSINESSAFRICA.COM


SPECIAL REPORT | SUSTAINABILITY

mind change in the minds of the food and agriculture industry towards delivering on a number of aspects of the SGDs. Food companies have joined the rest of the industry in driving the sustainability agenda, with the appointment of key people responsible for delivering the sustainability agenda across their operations, with clear strategies and goals, ensuring that food companies can finally move away from the tokenism of the past, when publicity focused donations or media activity were more cherished, whenever the industry engaged with its stakeholders. A number of them have also started releasing annual sustainability reports that track delivery on their sustainability goals and targets. Food companies are increasingly adopting environmental, social and governance policies that align with the

Sustainability does pay

One company that has made sustainability to be the base on which its business evolves is Unilever. The Dutch-British giant introduced its now famous Unilever Sustainable Living Plan (USLP) in 2010 one year after its current CEO Paul Polman took the helm of the maker of Knorr soup, Ben & Jerry’s ice cream and Lipton’s tea. According to the company, USLP is its blueprint for achieving its vision to grow its business whilst at the same time reducing its environmental footprint and increasing its positive social impact. In its 2016 sustainability report, the company reported that its 18 sustainable living brands grew 50% more than the rest of its business, with the company continuously reporting topline growth over the 8 years to 2016,

Cocoa industry stakeholders are concerned abot deforestation in the tropics where the crop thrives

communities in which they operate, to fit in this new paradigm. Several major food industry corporations have taken strategic decisions concerning their agricultural practices, packaging, food safety and health, energy and water management, life cycle and social impact analysis, women empowerment, sustainable sourcing, waste reduction, environmental issues among other issues better than at any time in history. Companies are also getting to appreciate better the needs of their stakeholders including employees, customers, farming communities, NGOs and civil society. And the results are starting to show. FOODBUSINESSAFRICA.COM

averaging twice the market average, while improving the bottom line. A survey by Harvard University professors Robert Eccles and Ioannis Ioannu in 2012 showed that companies that have adopted sustainability as a pillar to their strategy outperformed those that didn’t in a number of financial stock market and accounting metrics. “Our research provides convincing evidence that sustainability pays off. Critics of sustainability argue that it destroys shareholder value. We found exactly the opposite. Companies that manage their environmental and social performance have

IN NUMBERS 50% SUSTAINABLE BRANDS AT UNILEVER HAVE GROWN 50% MORE THAN OTHER BRANDS superior financial performance and actually create more value for their shareholders. They do this by attracting and keeping better and more committed employees and have more loyal customers,” noted the two researchers in an article in the Guardian newspaper. “As societal expectations for responsible environmental and social practices by companies continue to increase, the performance advantage of highsustainability companies will increase too, because they will be contributing to a sustainable society. Failure to have a culture of sustainability is quickly becoming a source of competitive disadvantage. The argument about sustainability is over. It is the key to creating value for shareholders and all other stakeholders over the long term, thus ensuring the sustainability of the company itself,” they continued. “Sustainability is not necessarily something we have to do that will have a cost that doesn’t help the business. Sustainability is our business. If there’s no water, there’s no beer; it’s that simple. Our consumers and our people also want to know where we stand on those issues,” says Carlos Brito, the CEO of AB InBev, the largest beer company in the world. Below are four initiatives the food industry is taking to become better citizens of the world:

Energy management initiatives

Bidco Africa recently triumphed at the Energy Management Awards ceremony in Nairobi, Kenya, taking the top prize for its energy management initiatives. Several other food industry companies including Farmers Choice, Frigoken, Premier Foods, James Finlay Tea – Saosa factory and a number of others, won or were finalists at the awards ceremony. The number of food industry winners at this event and the FOOD BUSINESS AFRICA | MARCH/APRIL 2018

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SPECIAL REPORT | FOOD INDUSTRY

IN NUMBERS 100%

COMPANIES HAVE COMMITTED TO SWITCH TO RENEWABLE AND RECYCLABLE PACKAGING number of past winners, including Kenafric Industries and Brookside Dairy shows the priority food companies have placed on energy management as a vital management tool to not only reduce costs but to reduce the environmental impact of their operations. According to George Ooko, an engineering consultant, the business case for energy savings, especially in a high energy cost environment like Kenya is a no-brainer, whether a company wins an award or not. But food companies around the world are taking a more wholesome view to energy management beyond cost savings. Food companies have adopted several measures to reduce their energy consumption and related green house gas emissions, from measures to adopt more efficient machinery and technologies, moving into greener energy solutions or simple actions like using LED lighting technology or energy saving appliances in their offices. Green energy solutions, including solar, wind and hydroelectricity are being adopted by food companies around the world, easing the load on the usage of fossil fuels that deplete the ozone layer and lead to climate change. When US President Donald Trump decided to withdraw his country from the Paris Accord agreement on climate change in 2017, US food industry leaders opposed the move, saying that their companies are still committed to a lower carbon future. “Exiting international accords like the Paris Agreement will negatively impact trade, economic vitality, the state of our environment, and relationships amongst the world community. And it positions the US as an outlier on this important issue,” said David MacLennan, Chairman and CEO of agribusiness company Cargill. He reiterated that Cargill would “remain fully committed to address climate change in supply chains around the world.”

In late 2017, Cargill inaugurated a fully automated, digital photovoltaic solar system at its Cocoa & Chocolate site in Tema, Ghana, which produces 764MWh of electricity annually, equivalent to powering nearly 400 homes with electricity for a year, part of its broader focus to reduce greenhouse gas intensity, improve energy efficiency and increase its renewable energy mix to 18%, from the current 14%. AB InBev, in its recently updated sustainability goals, has committed to reduce its CO2 emissions by 25% and to source 100% of its electricity by 2025. In a move to bring the sustainability issue closer to the consumer, the company has debuted a new symbol that will be used on all its beer that have been made using 100% renewable electricity, an industry first. “We know that climate change is an important issue for consumers, but they aren’t sure how their everyday actions can make a difference. The renewable electricity symbol can show consumers that their purchasing choices can have a positive impact,” said Brian Perkins, Global Vice President at the company’s Budweiser unit. In an industryfirst breakthrough technology, the company recently announced that its researchers had developed a new brewing method that will reduce its emissions by 5%, once it adopts the technology in all its breweries. Fast food restaurant chain company McDonalds has announced that it will reduce green house gas emissions from its restaurants and offices by 36% by 2030, by partnering with franchisees and suppliers in the beef production sector, at the same time investing in more energy efficient lighting, kitchen equipment and sustainable packaging solutions. Another beer producer Heineken announced early 2018 a new program to help it deliver on its renewable energy strategy. The ‘Drop the C’ program aims at increasing renewable energy composition of the company’s electricity mix from the current 14% to 70% by 2030. The company has opened what it calls its ‘greenest brewery’ in Mexico with unique circular economy principles that will drive its sustainability agenda. The brewery uses 100% renewable electricity, with 88% from wind and the rest from solar panels installed on windows at the brewery. Diageo, another beer maker plans to source 100% of its electricity from renewables by 2030. In India, the company’s United Spirits subsidiary installed new solar panels at its Baramati and Nasik sites

“CONSUMERS AREN’T SURE HOW THEIR EVERYDAY ACTIONS CAN MAKE A DIFFERENCE. THE RENEWABLE ELECTRICITY SYMBOL CAN SHOW CONSUMERS THAT THEIR PURCHASING CHOICES CAN HAVE A POSITIVE IMPACT.” Brian Perkins, Global VP, Budweiser

in Maharashtra State that are producing 1.2 MW of energy, 20% of the sites’ electricity needs. The brewer also adapted boilers at its Aurangabad Distillery from coal to biomass materials left over by farmers and its processes, including bagasse, rice husks and groundnut shell. And food industry suppliers are not left behind. Packaging materials producer Tetra Pak, plans to source 100% renewable electricity by 2030, and has reported increased change over to renewable electricity, with more than a third of its total annual consumption worldwide currently from renewable sources. DSM, the global ingredients and performance materials company plans to source 100% of its electricity from renewables, with an interim goal to source 50% by 2025, from 21% currently. Both are members of the Renewable Energy (RE100) initiative that currently has more than 100 member organisations transcending the manufacturing, IT, banking and other sectors, with a goal to bring together global companies to drive the 100% renewable energy agenda. Other food industry members of the group include AB InBev, Diageo, Coca-Cola European Partners, Carlsberg Group, IFF, Givaudan, Elopak, Hatsun Agro Products from India, Kellogg’s, Mars, Nestle, Organic Valley, Starbucks, Tesco, Unilever and Walmart. Apple, the computer giant and a member of RE100, recently achieved its 100% renewable energy target in all its facilities around the world. And renewables usage has gone beyond the food industry. Garden City Mall, a mixed-use real estate development in Nairobi, Kenya that hosts a number of restaurants, fast food outlets and retailers is the first Leadership in Energy and Environmental Design (LEED) certified development in Eastern Africa, a certification program established by the


SPECIAL REPORT | SUSTAINABILITY

Concerns withocean and marine life pollution has changed the game for plastics, with more regulators seeking ways to control their usage.

US Green Building Council that focuses on green and environmentally friendly buildings. The Mall’s carport solar energy system generates 858 KWp of electricity, or 30% of the Mall’s requirements and is touted as the largest solar carport in Africa and the largest rooftop solar project in East Africa by the installers. In the US, where LEED certification is highly adopted by the food industry, thousands of facilities have received this prestigious certification, with Starbucks reporting that its 1000th store received the certificate in 2016.

Water efficiency focus

Dutch brewery Heineken recently opened its ‘greenest brewery’ in Mexico that it says will be the most water efficient in the World, utilizing just 2 litres to produce every litre of beer, an eye-watering figure in the field of brewing. However, beyond the water saving initiatives, food companies have also adopted initiatives that enable the reuse and recycling of water as they aim for a more circular economy. From rainFOODBUSINESSAFRICA.COM

water collection systems, water efficient landscaping, efficient water treatment and water conserving fixtures and facilities, companies are increasing their focus on water efficiency efforts around the world. Skol Brewery has replaced its old sequential batch reactor at its Kigali, Rwanda plant with a new waste-toenergy technology that turns wastewater organic pollutants into biogas, or green energy, to profitably power plant boiler equipment while achieving environmental benefits, converting more than 90% of the wastewater’s Chemical Oxygen Demand (COD). Nestle’s Cero Agua (Zero Water) factory located in Mexico stands out as the company’s most water efficient factory in the world, which the company says it plans to replicate in its other facilities. The plant takes fresh cow’s milk and heats it at low pressure to remove some of its 88% water content. The steam from the boiling process is then condensed and treated and used to clean the evaporating machines themselves. The water can be recycled a second time.

Responsible and sustainable sourcing

The food industry is intricately connected to the farming communities from which the industry relies on to source agricultural produce and forestry products. Be it the sourcing of cocoa, coffee, cereals, fruits and vegetables, nuts, soya, palm, milk and myriads of other agricultural produce, the food industry is engaging with farmers in a closer manner to ensure that they can have a more reliable supply chain, while at the same time, opening their sourcing operations to scrutiny by interested parties. In a rare move, Unilever announced in February 2018 that it is opening its entire palm oil sourcing value chain to scrutiny, and will provide details of all its suppliers and mills from which it sources the oil. Marc Engel, Unilever’s Chief Supply Chain Officer, said the company hoped sharing the information would be the start of a new industry-wide movement towards supply chain transparency. “Unilever believes that complete transparency is needed for radical transformation, This is a big step towards

FOOD BUSINESS AFRICA | MARCH/APRIL 2018

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greater transparency, but we know there is more work to be done to achieve a truly sustainable palm oil industry and we will continue our efforts to make this a reality,” Engel said. He added that transparency and the ability to trace palm oil are vital in addressing deforestation and human rights abuses. In Africa, the brewing industry, reliant on the imports of vital agricultural commodities including barley for decades, continues to plug the gap of locally sourced products through initiatives to boost the

will provide environmental and social insights into the journey of agricultural raw materials sourced by the company. “Leading companies in the food sector have been investing significantly in social and environmental programmes to source their raw materials more sustainably, but change is not happening fast enough. In the current context I would say it is impossible to state how much of the world’s food supply can be considered truly sustainable. It is the old adage that if we cannot measure it, we cannot improve it,” said Co-Founder and Group CEO of Olam, Sunny Verghese. “AtSource will provide our customers with the most comprehensive sustainable supply solution for their raw materials. With AtSource we can now deliver the critical sustainability factors for the longterm resilience of a crop or ingredient from a particular producing country or region. Using this information we can drive meaningful improvements through the supply chain from farm to customer. Make

local production of alternatives to barley including sorghum, maize and cassava. East African Breweries Ltd (EABL), part of drinks conglomerate Diageo, recently announced the beginning of a farming project in western Kenya targeting over 12,000 tonnes of sorghum from a 3,500 acre communal farm to boost local sourcing of the commodity, vital for its Senator lager beer brand, the company’s low value beer that takes the bulk of its volume, as the brewer prepares to make a comeback to its old Kisumu brewery in 2019. Olam International, the Singapore based agricultural commodities trader and processor with many operations in Africa, has launched a new technology AtSource, a sourcing solution that

no mistake, capturing this information at scale and across all our supply chains will be a huge and costly task. But as the company closest to the farmer, we believe AtSource is a key driver in helping us to re-imagine global agriculture, by starting to mainstream sustainability before it is too late.” Deforestation that replaces forestry land with agricultural produce, especially in highly vulnerable tropical climates, is a leading cause of impoverishment of local populations, and increase of emissions around the world. Companies involved in the soya supply chain, under pressure from environmental activists including Greenpeace, in 2016 committed through the Soy Moratorium to stop purchasing

“WE WANT ALL OF OUR PACKAGING TO BE FIT FOR A WORLD THAT IS CIRCULAR BY DESIGN, STEPPING AWAY FROM THE TAKE-MAKEDISPOSE MODEL THAT WE CURRENTLY LIVE IN.” David Blanchard, Unilever Chief R&D Officer

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MARCH/APRIL 2018| FOOD BUSINESS AFRICA

IN NUMBERS 12,000

TONNES EABL PLANS TO HARVEST IN A SORGHUM PROJECT IN KENYA soybeans tainted by deforestation, encroachment on Indigenous Lands or slave labour, an effort called a ‘game changer’ by the environmental group. While up to 30% of the soya from Brazil came from deforested areas in 2004, only 1.25% was being sourced from these areas in 2016, notes Greenpeace. The Moratorium, since extended indefinitely, has also impacted other commodities, including beef. Still on matters, forestry, Hershey, the American confectionery company is undertaking a global initiative to end deforestation with a commitment to stop sourcing cocoa from areas affected with deforestation. “Deforestation in cocoa regions must end and every stakeholder in the cocoa supply chain needs to work together to protect the forests for future generations. We are committed to working with local governments and civil society to strike the right balance between producing cocoa for the world and conserving the precious natural ecosystem,” said Susanna Zhu, the company’s Chief Procurement Officer. On the supplier side, packaging solutions supplier Tetra Pak reports that it now sources 100% of its paperboard from FSC-certified and other controlled sources, as we continue our work to raise the quantity of responsibly sourced renewable materials, including bio-based polymers, in our package portfolio. “We are also making excellent headway in advancing our processing and packaging equipment technologies to help customers reduce their own environmental footprint. From the Tetra Pak E3 platform, featuring eBeam sterilisation that lowers energy consumption by almost 50%, to high-acid juice pasteurisation, which cuts energy use by up to 20%, we continue to bring innovative technology solutions to our customers that reduce energy, decrease water consumption and minimise waste,” says the company’s CEO Dennis Jonsson in its 2017 Sustainability Report.

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Packaging gets into the limelight

Plastics have become the face of what is wrong with humanity’s rapacious consumption habits. Changing consumer attitudes towards plastics packaging, famous around the world for its versatility and low cost, and rising evidence about the impact of plastics on the environment has of late placed food companies at a dilemma: continue using the easily adoptable plastic packaging or bow to consumer, and increasingly, regulatory pressure to eliminate or reduce their usage in the packaging of food products. The Ellen MacArthur Foundation predicts that by 2050, there will be as much plastics in the ocean as fish, choking vital marine sources of the world’s fish demand, with devastating effects. Kenya, Eastern Africa’s largest producer and consumer of plastic packaging, followed the footsteps of Rwanda in banning the commonly used plastics packaging, with plans underway to in future place to place an East African-wide ban as well, including on plastic bottles packaging. In the European Union (EU), the block for the first time agreed to a 2030 deadline to shift to recyclable and reusable plastics packaging, with further plans to curb

single-use plastics set to be revealed in May 2018. Food companies including Nestle and Coca-Cola have of late announced ambitious goals to move the packaging of all their products to recyclable and reusable plastics packaging. Bio Food Products, a specialty dairy company based in Kenya has debuted plastic bottles with 30% less PET, in its quest to reduce its environmental impact, debuting a take back program as well. Ekoplaza, a Dutch supermarket, unveiled the world’s first plastic free aisle, with plans to roll the concept into more than 700 of its outlets. In the UK, Aldi supermarket is also banning cheap, single use plastics. A UK based retailer Iceland has unveiled plans to eliminate plastic packaging from its own branded products by 2023, while Unilever has partnered with a chemical company and a producer of PET resin to develop a technology that would recycle plastic waste into virgin grade material for the food industry. The technology has successfully passed its pilot stage and is now moving towards testing at an industrial scale. Unilever says upon successful proof at industrial scale, the technology will allow 100% recycling of PET into high quality, food-grade packaging. “We want all of

our packaging to be fit for a world that is circular by design, stepping away from the take-make-dispose model that we currently live in. This innovation is particularly exciting because it could unlock one of the major barriers today – making all forms of recycled PET suitable for food packaging,” said David Blanchard, Unilever Chief R&D Officer, the project could be a major milestone towards transforming the food industry at large.

A sustainable future beckons

While these initiatives seem to have been taken by huge conglomerates, sustainability initiatives are trickling in to the fabric of the food industry. As demonstrated in some of the examples above, sustainability initiatives require management commitment and the development of a strategy with clear action plans and goals to be effective and to have a lasting impact. In many cases, one company may take the initiative on its own, with the rest of the industry standing by, but with consumer pressure and regulators on the side of those that take the plunge, sustainability is sure set to be part of the food industry for a long time to come

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SUPPLIER NEWS & INNOVATIONS INVESTMENTS

Firmenich starts construction of new facility in China

SWITZERLAND – Firmenich, the world’s

largest fragrance and flavor business, has officially started the construction of its new world-class manufacturing facility in China. The new plant, focusing on both technology and capacity perspectives, will enable Firmenich to provide superior service to its customers across China with increased speed-to-market and operational

excellence. “Our significant investment in Zhangjiagang (China) reinforces our longterm commitment to China, our second largest market worldwide,” said Gilbert Ghostine, CEO Firmenich. To advance Firmenich’s ambitious 2020 environmental goals, the site is being constructed according to the highest sustainability standards, particularly in the areas of water and emission management. The plant will have a state-of-the-art waste water treatment system, enabling the recycling of the water used on site. It will also use high efficiency processing equipment,

lighting, and building components to optimize energy consumption, while recovering heat from cleaning water and building ventilation. “By significantly increasing our flavor production capacity in China, we are accelerating our customers’ access to our Flavor solutions,” said Boet Brinkgreve, President of Firmenich China and Global Ingredients. The new site, expected to open in 2019, will complement the group’s existing manufacturing facilities in Shanghai and Kunming.

AWARDS

Neogen wins award for new environmental pathogen detection system SCOTLAND – Neogen Corporation has won the 2018 CFIA innovation trophy in the food industry technology with its revolutionary Listeria Right Now environmental pathogen detection system. The CFIA (Carrefour des Fournisseurs de l’Industrie Agroalimentaire) is an annual agro-food industry supplier fair held in France that showcases the latest developments in food industry technology. “It’s an honour to win recognition as prestigious as a CFIA innovation award. During the development process, we believed we were creating an innovative new technology that would revolutionize

the bacterial pathogen detection process for the food industry. This recognition validates all the work we put into the process,” said Neogen Europe’s Steve Chambers. Neogen’s new test system can detect all species of Listeria, including the pathogenic L. monocytogenes, in less than 60 minutes through their ribosomal RNA (rRNA). “The well-received and NSF International validated Listeria Right Now system has now been shown to provide the food industry with both the definitive test results they need, and the much easier and quicker methodology they want.”

INNOVATIONS

Tetra Pak debuts suite of packaging material effects

SWITZERLAND – Multinational food

packaging and processing solutions provider Tetra Pak has launched a suite of new packaging material effects, known as Tetra Pak Artistry, to help food and beverage producers revitalise the look and feel of their products. According to the company, the effects

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help brands attract shoppers’ attention without the need for the manufacturer to switch to a new packaging format or invest in new equipment. “In a world where almost everything needs to be ‘personalisable’, we want to provide customers with something unique to help their brands rise above the noise and reach the shopper,” said Charles Brand, Executive VP, Product Management and Commercial Operations at Tetra Pak. Tetra Pak Artistry include Tetra Pak Reflect to incorporate holographic effects onto the package, Tetra Pak Metallized to create a metallic effect and Tetra Pak Craft to give the package the natural look of bare paperboard with wood fibres. More

MARCH/APRIL 2018| FOOD BUSINESS AFRICA

offerings are in the pipeline, including Tetra Pak Sculpt, an embossed surface texture for an innovative consumer experience, says Tetra Pak. The whole range of effects will be available for the majority of Tetra Pak package formats and offered to customers worldwide. Tetra Pak said the packages have a high share of paperboard, a material made from wood fibres, a natural and renewable source. Tetra Pak Craft has been developed with the possibility to combine a new board with other environmental features, such as using material from renewable sources, to strengthen even more the environmental position of the packages. FOODBUSINESSAFRICA.COM


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