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Bittersweet COVID-19

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Trends Report

Trends Report

Bittersweet:

Managing the impact of COVID-19

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The spread of COVID-19 pandemic has led to lockdowns in Europe and other international markets and cocoa production companies such as Italian-based GSR have had to incorporate new working methods into their daily lives, while understanding the importance of a local supply chain and their hard-working employees.

“…almost all GSR suppliers are Italian and in such a situation, having real ‘fixed points’ on the national territory has allowed GSR to safeguard the company itself and all its productivity.”

The last few months have marked an epochmaking change in economic, production and social terms. Covid-19 has brought everything into question, and many companies have found themselves facing new problems by putting in place all possible organisational resources and rethinking working methods, spaces, relationships.

Back in April, consumers rushed to the shops to stockpile on essential items to get through the pandemic and while chocolate might not be an essential item, it is a source of indulgence and comfort that consumers look for in times of uncertainty.

At that time, Nestlé CEO Mark Schneider warned that the confectionery business must ‘get ready for the storm’ as supply chain challenges were expected to intensify amid the global coronavirus pandemic. “Food and beverage products are essential to people’s lives,” Schneider explained. “In moments like these, our purpose and values matter a lot to the people and communities we serve.”

In Europe, the majority of chocolate is sold at supermarkets and other grocery shops and so while these retail outlets remain open, the e-commerce quickly gains market share. The chocolate market is therefore expected to survive the current lockdowns and the recessional impacts without too much damage.

At GSR, a leader in the production of presses for the cocoa and oil-based seeds market based in Italy, production has never stopped. During the whole complex period that Italy, and the rest of the world faced, GSR has continued to operate thanks to the collaboration of its employees and the exceptional organisational effort to secure all workers.

During this emergency, GSR had evidence of how important it is to have a local/national supply chain. In fact, almost all GSR suppliers are Italian and in such a situation, having real ‘fixed points’ on the national territory has allowed GSR to safeguard the company itself and all its productivity.

The main chocolate-consuming countries are at the centre of the COVID-19 pandemic. But, the impact on cocoa-producing countries is not yet clear. From country to country, COVID-19 measures will influence the availability of cocoa supplies. These measures include lockdowns and curfews, but also fostering actions within manufacturing facilities between employees.

The actions that GSR has put in place since the start of the so-called “phase two,” which began in May, require the social distancing between the employees with plexiglass separators between the various workstations. The supply of gloves, masks and hand-sanitizing gels together with the control of the daily temperature and the sanitization of all the workstations, have now a consolidated practise, being precautions adopted since the beginning of the emergency.

Precisely, it is to the employees that the most heartfelt thanks go to: “We thank our employees for supporting the country’s economy and for allowing the supply chain not to stop. It is thanks to them and to our suppliers that our customers have been able to continue their activities.

The company have stated: “We want to thank all our suppliers, who allowed us to be operational, delivering important material for our customers. We thank them because, those in smart working from home and those who present themselves in the company, continued to work with sacrifice. We thank them for have accepted and accepting today the change that this situation has brought in their lives and in the way they work. They are for us an example of dedication seriousness and professionalism and we are very proud of this.”

In the coming months GSR will continue with its strategic programs for 2020: several new features will be presented, including the inauguration of the new production unit. Main pic and above: Manufacturers like GSR have had to make sure their new methods of working are in keeping with the current climate as social distancing measures remain in place.

Below: The chocolate market is therefore expected to survive the current lockdowns and the recessional impacts without too much damage.

BENEO’s new organic variants for the confectionery market

BENEO offers functional ingredients derived from chicory roots, beet sugar, rice and wheat and their recent portfolio additions are set to offer great potential to the confectionery sector...

“Technical trials by experts at the BENEO-Technology Centre have shown positive results for these applications, as well as for improving the texture of creamy desserts and yoghurts…”

Consumers worldwide are increasingly seeking out organic products, with figures showing they have become more important to 1 in 4 consumers in the last yeari and many willing to pay a premium price for themii. This rising demand has been driven by the growing consumer perception of organic products as healthy and natural, and therefore an intrinsic part of a healthier lifestyle.

Organic products and ingredients are also considered a vital element for ethical and sustainable purchasing behaviour, a key trend being seen within the food and beverage industry. Around the world, there are high expectations for organic products, with a compound annual growth rate of 2% and 2.6% in value predicted between 2019 and 2022 in Europe and the USA respectivelyiii, the two largest organic markets.

With that, BENEO has recently announced the expansion of its chicory root fibre and rice starch ingredient portfolio with two new organic solutions – an organic waxy rice starch, Remyline O AX DR, and an organic chicory root fibre, Orafti®Organic.

The addition of BENEO’s new organic waxy rice starch, Remyline O AX DR, completes the existing portfolio of rice starches with the availability of organic solutions for both regular and waxy rice starch. Launching globally from

July onwards, Remyline O AX DR is the first of its kind to be brought to market, opening up new possibilities for product development. As a waxy rice starch, it contains no amylose and therefore delivers better stability and less syneresis, making it easier to maintain a stable texture throughout a product’s shelf life.

Remyline O AX DR is suitable for fruit preparations, as well as meat and poultry applications. Technical trials by experts at the BENEO-Technology Centre have shown positive results for these applications, as well as for improving the texture of creamy desserts and yoghurts.

Commenting on the launch of Remyline O AX DR, Marc-Etienne Denis, Commercial Managing Director Specialty Rice Ingredients at BENEO stated: “The launch of BENEO’s new organic waxy rice starch is an important milestone for us as it means we can now offer our customers organic variants for both our waxy and regular rice starches - we see great potential for this new solution.” BENEO’s new Orafti®Organic, is a carefully grown and selected organic variant of its popular chicory root fibre and yet another first to market. It is regionally grown and harvested by certified organic farmers in Belgium. Inulin and oligofructose remain the only proven plantbased prebiotics available, according to ISAPP (International Scientific Association for Pro- and Prebiotics).

Available to customers from September onwards, Orafti®Organic enables manufacturers to add natural prebiotic fibres that will improve taste and texture, while also allowing for fat and sugar reduction in products across key applications such as dairy, cereals, bakery and confectionery. Regarding the launch of Orafti®Organic, Eric Neven, Commercial Managing Director Functional Fibres at BENEO, commented: “Requests for organic chicory root fibre are constantly growing so we are pleased to be able to offer this solution to our customers, and be the first in the market to do so. BENEO is confident this move to expand our overall organic ingredients portfolio will be highly appreciated by the industry and shows particular promise for new product developments in this growing area of the market.”

FOOTNOTES

i HFI 2019 ii HFI 2019 iii Global Data 2019

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