Food Business
AFRICA’S NO.1 FOOD, BEVERAGE & MILLING INDUSTRY MAGAZINE
COVER STORY
COVID-19
ITS IMPACT, HOW TO MANAGE
& HOW THE FOOD INDUSTRY
HAS RESPONDED IN AFRICA
COUNTRY FOCUS
FOOD INDUSTRY IN
UGANDA
COVER STORY
MAKERERE UNIVERSITY
FOOD TECHNOLOGY &
BUSINESS INCUBATION
CENTRE
INNOVATION CENTRE TO
NURTURE UGANDA’S NEXT
FOOD ENTREPRENEURS
A FOCUS ON UGANDA’S FOOD,
BEVERAGE AND MILLING INDUSTRY
WWW.FOODBUSINESSAFRICA.COM
YEAR 8 | NO. 40 | MARCH/APRIL 2020
The Art of European Meat
artofmeat.eu
Picture this: Quality Meat from the heart of Europe − bringing together
Craftsmanship, Food Safety and Tailor-Made Service.
That is what the Belgian meat suppliers proudly present to you.
As one of Europe’s leading meat producers and exporters,
they have turned their expertise into an art form. Up to you to savor it.
THE CONTENT OF THIS PROMOTION CAMPAIGN REPRESENTS THE VIEWS
OF THE AUTHOR ONLY AND IS HIS/HER SOLE RESPONSIBILITY.
THE EUROPEAN COMMISSION DOES NOT ACCEPT ANY RESPONSIBILITY
FOR ANY USE THAT MAY BE MADE OF THE INFORMATION IT CONTAINS.
EVENTS PREVIEW
Event: AFMASS FoodTech Uganda edition
When: November 12-14, 2020
Where: UMA Multi-Purpose Hall, Kampala, Uganda
Timings: 09.00 am to 06.00 pm daily
AFMASS Food Expo Uganda postponed to November
2020 in face of Covid-19 outbreak
T
he inaugural edition of AFMASS
Food Expo Uganda edition which
was prevously slated for March 2020
has been postponed again to November
12-14, 2020 in Kampala, Uganda due to
the Corona virus pandeimic that continues
to hit not only Africa but other leading
economies across the world.
The event is set to showcase the rise
and sophistication in Uganda and Great
Lakes region's growing food, beverage
and milling industry and open the way for
entrepreneurs, industrialists, academicians,
researchers and Government agencies meet
and network with peers, industry leaders,
suppliers, financiers and more from across
Africa and the World.
The region's vast agricultural potential
in grains, coffee, tea, meat, milk, fish and
fruits and vegetables are increasingly being
turned into value added processed and
packaged goods for local, regional and
international markets, attracting small and
medium enterprises and multinationals
to invest in the region - including beer
giants AB InBev, Heineken and Diageo;
soft beverages majors Coca-Cola and
Pepsi; plus thousands of local and regional
investors.
This trade event, which marks the first
time an all-encompassing food, beverage
and milling industry event has been held
in this region, will showcase the vast array
of locally manufactured food, beverage and
milled products plus the latest processing,
packaging, supply chain and food safety
technologies.
when we had made all the plans. However,
we believe that the postponement has
also given us time to engage with more
stakeholders with a view to make the
upcoming event a memorable one for all
concerned. But for now we have to join
every one to ensure Covid-19 is contained
and that normal life returns, for us to
hold the event," says Francis Juma, the
team leader at FW Africa Conferences &
Events, the organisers of the event.
AFMASS Food Expo Uganda is
supported by a number of industry of
Government agencies and industry
associations, including the Uganda
Manufacturers Association, Uganda Small
Scale Industries Association, Makerere
University, Uganda Industrial Research
Institute and Kyambogo University.
Excellent venue in Kampala
Set to be held at the perfectly-located
UMA Multi-Purpose Hall in Lugogo,
Kampala, it will showcase technologies
from more than 50 local, regional and
international companies from Kenya,
South Africa, Europe and Asia. At the
Expo Hall, delegates will have the unique
opportunity to network and trade with
some of the region's key decision makers
in the private sector, Government, NGOs
and other stakeholders.
More than 3,000 delegates and visitors
from across Uganda and the Great Lakes
region - comprising of Rwanda, Burundi, Strong speaker and panelist profiles
DRC, South Sudan and northern Tanzania A number of industry leaders, Government
and beyong - are expected to grace the policy makers and other vital contributors
event, where there will also be a high-level to the growth of the food industry in
conference addressed by some of the most Uganda and the Great Lakes Region,
important industry leaders, consultants and consultants and suppliers have confirmed
academicians.
their participation as speakers and panelists
"We have always wanted to host this at this year's event, to contribute to the
event in Uganda, where we have witnessed growth of the food industry in the region.
the fantastic growth of the food industry
in general over the years. The Covid-19
outbreak, sadly, stopped us in our tracks,
You can sign up to attend this edition of the event at
www.afmass.com/uganda2020
AFMASS
FOOD EXPO
UGANDA EDITION
NOVEMBER 12-14, 2020
UMA MULTI-PURPOSE HALL,
LUGOGO, KAMPALA, UGANDA
Uganda & Great Lakes
Region’s Largest Food,
Beverage & Milling Industry
Conference & Expo
REGISTRATION OPEN.
FOR REGISTRATION, SPONSORSHIP EXHIBITION OPPORTUNITIES,
CONTACT:
INFO@FWAFRICA.NET OR CALL: +254 725 34 39 32
WWW.AFMASS.COM/UGANDA2020
NEW
DATES
CONTENTS
ON THE COVER
Food Business
COUNTRY FOCUS: FOOD INDUSTRY IN UGANDA
COVER STORY - COVID-19
PANDEMIC
73
AFRICA’S NO.1 FOOD, BEVERAGE & MILLING INDUSTRY MAGAZINE
COVER STORY
COVID-19
ITS IMPACT, HOW TO
MANAGE & HOW THE
FOOD INDUSTRY HAS
RESPONDED IN AFRICA
COUNTRY FOCUS
FOOD INDUSTRY IN
UGANDA
COVER STORY
MAKERERE UNIVERSITY
FOOD TECHNOLOGY &
BUSINESS INCUBATION
CENTRE
INNOVATION CENTRE TO
NURTURE UGANDA’S NEXT
FOOD ENTREPRENEURS
A FOCUS ON UGANDA’S FOOD,
BEVERAGE AND MILLING INDUSTRY
WWW.FOODBUSINESSAFRICA.COM
The Covid-19 makes it to the cover
of the magazine as we feature a
number of articles on how it has
impacted the food industry and
to manage during and after the
crisis.
YEAR 8 | NO. 40 | MARCH/APRIL 2020
www.foodbusinessafrica.com
COVER STORY: MAKERERE UNIVERSITY FOOD
TECHNOLOGY & BUSINESS INCUBATION CENTRE
43
REGULARS
6
Editorial
8
What they said
8
Events Calendar
16 African & International News
29 Sustainability Business Africa News
78 Supplier news & Innovations
DAIRY BUSINESS AFRICA
33
Health and pleasure focus for dairy as
ice cream goes guilt free
COVER STORY: COVID-19 AND FOOD SAFETY GUIDANCE
FOR FOOD BUSINESSES
66
BEVERAGE TECH AFRICA
35
Hard Seltzer take US by storm, set for
global growth
MILLING & BAKING AFRICA
37
Fortification of industrially milled cereal
grains
FOOD NUTRITION AND HEALTH
39
Nutty nutrition with abundant benefits
to human health
42
10 reasons why you should include
pulses in your diet
HOW CONSUMER GOODS COMPANIES CAN PREPARE FOR
THE NEXT NORMAL AFTER COVID-19 PANDEMIC
THE EMERGENCE OF PLANT-BASED FOOD AND
BEVERAGE INDUSTRY
48
6
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
55
FOODBUSINESSAFRICA.COM
FOODBUSINESSAFRICA.COM
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
7
EDITORIAL
Covid-19 outbreak brings hygiene and food safety
to the fore in Africa
It is unprecedented.
T
he Corona virus pandemic has changed
the world in many ways. From disruption of
farming operations, to closure of markets and
retail shops to impacting the operations of the food
industry in many African countries.
This is not only unprecedented. It is beyond
anybody’s comprehension or belief. No one saw that
coming . . . and in the scale it did! The food industry
supply chains are disrupted in ways that will take a
long time to recover from, especially in the export
markets that we have so gotten used to.
One aspect of the industry which will change
considerably is the way hygiene and food safety
practices are adopted and enforced by the food
industry supply chain players – manufacturers,
farmers, transporters, hoteliers/food service
operators or retailers.
It is fair to say that the food industry in Africa
FWAfrica
FOODBUSINESSAFRICA.COM
Year 8 | Issue 2 | No.40 • ISSN 2307-3535
FOUNDER & PUBLISHER
Francis Juma
EDITORIAL
Clement Muriuki I Catherine Wanjiku
ADVERTISING & SUBSCRIPTION
Jonah Sambai | Hellen Mucheru
CONTRIBUTORS
Ronald Onsare | Virginia Nyoro
DESIGN & LAYOUT
Frank Bett
8
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
has had its fair share of poor hygiene and not-upto-par food safety practices that can barely pass an
audit. The Covid-19 pandemic has shown that the
industry must up its game in these two key related
areas. After this pandemic, the industry must find
ways to enforce hygiene and food safety throughout
the supply chain to ensure that in case another one
comes along in future, we are better prepared than
we were this time round.
With the food manufacturing sector coming into
the limelight because of crowding, which has made
social distancing measures impossible to enforce,
and with cases rising in some of the world’s leading
food companies – especially the meat industry in the
US – the food industry post COVID-19 must look at
better design of plants, improve employee welfare
and facilities within the plants and put in place the
right systems to manage such a pandemic in the
future.
There is a serious need to start thinking of the
food industry of the future, considering the glaring
gaps that have been exposed by this pandemic.
The food industry is not alone. The airline industry
is already talking about the changes that will be
required to ensure safe flying post Covid-19. The food
industry must prepare now or be caught unawares
next time!
In this issue, we review the investments
opportunities in Uganda’s food, beverage and milling
industry, in one of the most exciting countries in
Africa. We also have a number of articles related to
the Corona outbreak and how to manage after the
crisis, plus articles on nuts, plant-based food and
market trends in the industry. FBA
INFORMING AFRICA’S BUSINESS GROWTH
FW Africa
P.O Box 1874-00621, Nairobi Kenya
Tel: +254 20 8155022, +254725 343932
Email: info@fwafrica.net
Company Website: www.fwafrica.net
RELATED PUBLICATION
AFRICA Inc.
Have a good read
Food Business Africa (ISSN 2307-3535) is
published 6 times a year by FoodWorld Media
Ltd. The magazine is distributed for free to food,
beverage, milling and foodservice companies and
Government regulatory agencies in Africa. The
magazine is available through paid subscription
for the other stakeholders in the food chain,
including suppliers to the sector.
Copyright 2020. Reproduction of the whole or any
part of the contents without written permission
from the editor is prohibited.
All information is published in good faith.
While care is taken to prevent inaccuracies, the
publishers accept no liability for any errors or
omissions or for the consequences of any action
taken on the basis of information published.
FOODBUSINESSAFRICA.COM
WHAT THEY SAID
“This investment affirms Tomra Food’s
wholehearted and long-term commitment to
South Africa, Kenya and Tanzania. These are
growing markets that we take very seriously.”
Albert du Preez, Senior Vice-President at Norwegian multinational
corporation and provider of equipment to the food industry Tomra,
indicated during the launch of new regional headquarters in
Johannesburg, South Africa.
“Our system is committed to contributing more than
$100 million and is focused on community relief
programs, medical supplies, and equipment during
the outbreak phase, as well as on developing other
actions for the recovery phase in markets hit hardest
by the pandemic.”
James Quincey, Chairman and CEO of The Coca-Cola Company
highlighting the beverage giant’s commitments to support relief
efforts in markets impacted by the Covid-19 across the globe.
“Now, more than ever, we need to support African
agrifood entrepreneurs and the small and medium
agribusinesses on the continent. They are the people
who produce food and get it to the people who need
it. They will be the people who help to rebuild our
economies after the pandemic is over.”
Svein Tore Holsether, President and CEO of Yara International,
during the launch of the second annual US$100,000 GoGettaz
Agripreneur Prize to strengthen the ecosystem for youth
entrepreneurs in the agri-food sector in Africa.
“The typical customer wants to meet all their basket
requirements in a single location and in order to
facilitate customers so that they do not feel they have
to move elsewhere for these purchases. We took the
decision to set up and run the shops ourselves.”
Willy Kimani, the Chief Commercial Officer of Naivas remarks
on the retailer’s diversification into selling alcohol, joining French
giant, Carrefour and South African retailer Shoprite who sell beer,
whisky and wines in their outlets.
“We believe in developing robust, sustainable and
inclusive value chains and are positive about our
partnership with FtMA and WFP, the farmers will get
production support in the form of seeds, training
materials and agronomic extension services which
will in turn help to raise sorghum production.”
Philip Redman, the managing Director of Tanzania Breweries
commenting on the partnership with the Farm to Market Alliance
(FtMA) and the World Food Programme (WFP) to support
smallholder sorghum farming in Tanzania.
“Our food supply system will remain functional
during this period. Agricultural production in all its
forms will remain uncompromised.”
South Africa’s Minister of Agriculture, Land Reform and Rural
Development, Thoko Didiza announcing a US$68.4 million
financial package to address effects of the coronavirus and ensure
sustainable food production after the pandemic
“Our new partnership with IDH will increase the
capacity of farmers to produce high-quality crops
that will enhance local supply and help develop
local economies – this is all part of our commitment
to improving 30 million livelihoods in communities
directly connected to our business activities.”
Rémy Ejel, CEO of Nestlé Central and West Africa on Nestlé’s
partnership with IDH Sustainable Trade Initiative to support
farming communities and local sourcing practices in West and
Central Africa.
“FES is a world-class operation in a developing
country. This investment is fully in line with
Norfund’s mandate to support economic growth
and development impact in these countries.”
Said Olav Akrawi, Senior Associate – Scalable Enterprises at
Norfund after acquiring Southern African integrated agricultural
solutions provider, Farming and Engineering Services Limited (FES).
“We are encouraged by the growth factors that we
see in the food brand sector in Asia, which we believe
offers attractive and defensive qualities in the
current environment with consumers increasingly
seeking access to trusted quality food products.”
Mohammed Alardhi, Executive Chairman of Investcorp after raising
US$275 million for its Asia food brands private equity platform that
the investment firm jointly runs with its Chinese partners.
“Maxim Agri Limited with the help of Cargill will
provide Kenyan’s farmers with the highest-quality
animal nutrition products which are specially
formulated to meet the local market needs.”
Pakistan-based Maxim Agri said in a statement following a
partnership with Cargill to distribute in animal products in Kenya.
Maxim has agreed put up an animal feed plant worth US$10 million
in Kenya.
"This pandemic is threatening the gains we have
made in reducing poverty over the past years. To
avoid serious disruption to rural economies, it is
essential to ensure agriculture, food chains, markets
and trade continue to function.”
Gilbert F. Houngbo, President of IFAD during the launch of the
COVID-19 Rural Poor Stimulus Facility targeting seeking raise
at least US$200 million to avert rural food crisis in the wake of
COVID-19.
“We have so far acquired a 100-hectare land in
Missenyi District. The project would include rearing
dairy cows and fish farming. It will also create
employment for youths. We are doing this basically
to support the government efforts in building an
industrial economy.”
Kaderes Managing Director, Leonard Kachebonaho, on the
company’s plan to invest US$10 million in a diary and aquaculture
project in Missenyi Ditsrict, North Tanzania.
EVENTS CALENDAR
May 16-19, 2020
November 3-5, 2020
American Food Fair
Chicago, USA
Focus: Food & Beverages
www.tradefairdates.com
Gulfood Manufacturing
Dubai, UAE
Focus: Food & Beverage
www.gulffoodmanufacturing.com
June 28-30, 2020
November 8-11, 2020
Food Ingredients China
Shanghai, China
Focus: Food & Beverages
en.fic.cfaa.cn
Pack Expo International
Chicago, USA
Focus: Food & Beverage packaging
www.packexpointernational.com
September 22-24, 2020
PackTech & FoodTech
Auckland, New Zealand
Focus: Food processing tech
www.foodtechpacktech.co.nz
September 15-18, 2020
Seoul Food
Kintex, South Korea
Focus: Food & Beverage
www.seoulfood.or.kr
October 25-28, 2020
IOAM MEA Conference & Expo
Oman
Focus: Milling
www.iaom-mea.com
October 11-13, 2020
Africa Food Manufacturing
Cairo, Egypt
Focus: Food Processing & Packaging
www.africa-foodmanufacturing.com
Focus: Food & Beverage
www.fhafnb.com
November 12-14, 2020
AFMASS FOOD EXPO Uganda
Kampala, Uganda
Focus: Food, Beverage & Milling
www.afmass.com
February 25-March 3, 2021
Interpack Expo
Düsseldorf, Germany
Focus: Processing & Packaging
www.interpack.com
March 2-5, 2021
FHA Singapore Expo
Singapore, Asia
October 7-9, 2020
Africa Dairy & Drinks Innovation Summit &
Expo
Nairobi, Kenya
Focus: Dairy & Beverages
www.afmass.com/dairydrink
Africa Food Safety & Quality Summit
Africa Food Industry Excellence Awards
Kampala, Uganda
Focus: Food, Beverage & Milling
www.awards.foodbusinessafrica.com
Gulfood
Dubai, UAE
Focus: Food & Beverage
www.gulfood.com
Food Expo Greece
Athens, Greece
Focus: Food & Beverage
www.foodexpo.gr/en
March 24-26, 2021
November 13, 2020
February 21-25, 2021
March 6-8, 2021
Nairobi, Kenya
Focus: Food Safety
www.foodsafetyafrica.net
March 9-21, 2020
Foodex Japan
Chiba, Japan
Focus: Food & Beverage
www.jma.or.jp/foodex
April 13–15, 2021
ProFoodTech
Chicago, USA
Focus: Food & Beverage
www.profoodtech.com
May 24-27, 2021
Sweets & Snacks Expo
Chicago, USA
Focus: Confectioneries & Snacks
www.sweetsandsnacks.com
Advertise in Food Business Africa magazine
and website. Reach the Key Decision Makers
in Africa’s Food, Beverage & Milling Industry.
Build confidence in your company and brand,
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of Africa’s food industry moving.
Talk to us at info@fwafrica.net today.
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At The Nest Africa, we are
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EVENTS PREVIEW
Africa’s industryfocused food safety
and quality summit
posponed to March
2021
and stakeholders to discover
the latest trends in science and
technology, regulatory policy,
standards, compliance, operations
and sustainable adoption of safe
and efficient safety, quality and
management practices in the
entire agriculture and food value
chain in Africa.
Food safety challenges weigh
heavily on Africa, negatively
impacting
consumer
health,
business performance and regional
and international trade. From
incidents related to Aflatoxins
frica’s
first
industry- contamination, food poisoning,
focused, regular food safety heavy metals contamination, to
Summit is slated for March emerging issues including new
2021, as African countries grapple bacteria, toxins and antibiotic
with food safety challenges and resistance, the Continent is
consumer interest in the subject disproportionately affected by
rises exponentially.
food safety challenges.
The Africa Food Safety &
There is an urgent need to
Quality Summit is planned to find new ways and technologies
be the Africa’s only regular food to protect Africa’s consumer due
safety, regulatory policy, quality to changes in consumer habits,
and laboratory management a rapidly globalising food supply
conference and exhibition.
chain, changes in testing protocols
It will be held at the Nairobi for diagnosing food borne illnesses
Hospital Conference Centre in and challenges with regulating
Nairobi, Kenya with delegates and policing food systems in the
already signed up from across region.
Africa, indicating the growing
importance Africa has taken food Attendees from food companies,
safety matters.
Govt. agencies and more
The Summit brings together Over 1,000 delegates from
regional and global experts Africa and across the World
A
are expected to grace the 2021
edition of the Summit to discover
the latest trends, opportunities
and challenges and learn how to
improve systems and reduce risks.
With delegates from the food,
animal feed and pharmaceutical
manufacturing,
retailing
and
distribution;
hospitality,
restaurants
and
catering;
healthcare and other institutions
managers; Government ministries
and
regulatory
agencies;
agriculture and agribusiness;
academicians and researchers,
the high-level conference is the
best platform for you discover the
latest trends and technologies that
resonate with the growing industry
in Africa.
Excellent venue
The 2021 edition of the Summit
takes will take place at the
magnificent Nairobi Hospital
Conference Centre, with plans to
have the Summit hosted across
Africa in subsequent years.
Located in the Upper Hill
district of Nairobi, Kenya, this is
an outstanding venue with some
of the most modern conference
facilities, with easy access to the
rest of the city and within reach
to shopping and leisure locations,
which are located within walking
distance from the venue.
HOW TO SIGN UP
Registrations are open for the Africa Food Safety & Quality Summit, with Early Bird rate of US$250 per delegate
(university students US$149 per delegate), for payments received by February 1, 2021.
The registration fee covers 3 days of conference attendance, drinks and meals, a cocktail, a dinner, a certificate
of attendance and other unique benefits.
More information about the event and registration details can be found at
www.foodsafetyafrica.net
12 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
FOODBUSINESSAFRICA.COM
EARLY BIRD
/Person
$400
$250
Regular Delegate Rate
$400
$149/
Person
Student Delegate Rate
Group Rates Available
>3 delegates = 10% off
>5 delegates = 15% off
Today’s Challenges . Tomorrow’s Solutions . One Safe Africa
NEW
DATES
MARCH 24-26, 2021 • NAIROBI HOSPITAL
CONFERENCE CENTRE, NAIROBI, KENYA
Africa's Food Safety, Regulatory, Quality &
Laboratory Management Conference & Expo
Join over 1000 food and agro industry leaders, Government
regulators, NGOs and development organisations at
this Africa-wide, industry-focused food safety, quality,
regulatory and laboratory management conference and
expo.
Meet and network with delegates from the food, animal
feed and pharmaceutical manufacturing; hospitality,
restaurants and catering; healthcare and other institutions;
Government ministries and regulatory agencies;
agriculture and agribusiness; academics and research
institutions as you discover the latest trends, opportunities
and challenges and learn how to improve systems and
reduce risks in the food safety landscape in Africa.
For more info on participation, exhibition and sponsorship:
+254 725 343 932 Email: info@fwafrica.net
FOODBUSINESSAFRICA.COM
www.foodsafetyafrica.net
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
13
EVENTS PREVIEW
AFRICA
Dairy&Drink
INNOVATIONS
SUMMIT & EXPO
SUSTAINABILITY • TECHNOLOGY • INNOVATIONS
and innovative industry in the
Continent.
T
he dairy, soft and alcoholic
beverages sectors in SubSaharan Africa has a new
high-level event to look forward
to, with the planned Africa Dairy &
Drinks Innovations Summit, which
is set to take place in Kenya this
year.
The regional Summit, which is
scheduled to take place on March
10-12, 2021 at Safari Park Hotel in
Nairobi, Kenya will bring together
the key decision makers in the
dairy and drink sector in Africa
to discover new ways towards
a more sustainable, efficient
High level platform
The Summit is a high level platform
for world-class education, capacity
building and networking with a
focus on the technical/scientific,
nutrition/health, new product
development
and
marketing
aspects of the dairy, soft drinks
and alcoholic beverage sectors.
At the base of all discussions,
will be how sustainability, be
it in sourcing of raw materials;
processing
and
packaging
technology; and utilization of
resources can be mainstreamed
across the industry in Africa.
Leading decision makers from
big multinationals, medium scale
processors and start-ups from
across the processing, packaging,
engineering,
sustainability,
QA/R&D,
marketing/brand
management functions of the
industry are expected to attend,
with registrations already received
from delegates in Nigeria,
Zambia, Kenya and Uganda.
More registrations from across
Africa are expected in the coming
months.
The Summit will consist
of two days of high-impact
conference sessions, where the
latest
sustainability,
market
trends, investment opportunities,
First regional
sustainable
dairy and drink
innovations forum
postponed to
October this year
technology
and
quality
management fundamentals will
be discussed. On the third day, the
delegates will take the opportunity
to see first-hand the applications
of various technologies and ideas
when they shall take a tour of a
number of companies near Nairobi.
A number of leading providers of
processing and filling equipment,
ingredients, engineering and
automation, food safety and supply
chain solutions will be showcased
– enabling the delegates to
have first-hand networking and
discovery opportunities for the
latest technologies they can utilize
in their own operations.
“The dairy and drink industries
in Africa are some of the most
vibrant, with a surge in investments
and new product innovations. But,
they are also the sectors where
the opportunity for disruption,
new investments and new ways
of innovation lie. This Summit
will bring experts and industry
veterans who will dissect some of
the new technologies and ideas
that will propel the dairy and drink
industry to meet the ever changing
needs of the consumer in Africa –
who are yearning for more trendy
but sustainable solutions from
the industry,” explains Francis
Juma, the team leader for FW
Africa Conferences & Events, the
organisers of the Forum.
HOW TO REGISTER
Delegates from the manufacturing and retail sector in Africa have been offered a discounted rate of KSH 9900
(inclusive of VAT) or US$99 per delegate (Early Bird rate ends February 1, 2020) to attend the Summit & Expo, with
further savings being passed on for more than 3 delegates (10% off) and above 5 delegates (15% off). Delegates
from non-exhibiting supplier companies will part with US$599 to access the Summit.
More information about the event and registration details can be found at
www.afmass.com/dairydrink
14 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
FOODBUSINESSAFRICA.COM
AFRICA
Dairy&Drink
INNOVATIONS
SUMMIT & EXPO
EARLY BIRD
Regular Delegate Rate
$149
$99/
Person
Supplier Delegate Rate
$599/
Person
Group Rates Available
>3 delegates = 10% off
>5 delegates = 15% off
SUSTAINABILITY • TECHNOLOGY • INNOVATIONS
OCTOBER 7-9, 2020 | NAIROBI, KENYA
NEW
DATES
HOW CAN AFRICA’S DAIRY, SOFT &
ALCOHOLIC DRINK INDUSTRIES BE MORE
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INVESTMENT
M&A
Tanzanian company to Ingredion to acquire controlling stake in stevia sweeteners
undertake US$10.3m dairy producer PureCircle
and aquaculture project
USA – American-based ingredient innovation and manufacturing
TANZANIA
–
Karagwe
Development Public Company
Limited in Tanzania is set to
establish a dairy and aquaculture
project in Missenyi Ditsrict, North
Tanzania by investing up to TZS24
billion (US$10.3m).
The company’s Managing
Director, Leonard Kachebonaho
revealed that the company is in
discussions with experts from
Israel for the implementation of
the project, which is expected to
kick off next year. “We have so
far acquired a 100-hectare land
in Missenyi District. The project
would include rearing dairy cows
and fish farming. It will also create
employment for youths. We are
doing this basically to support the
government efforts in building an
industrial economy,” he said.
In other related news, a stateof-the-art cassava processing
factory is set to be established
in Dodoma by Indian investor, Dr
Ramani Veerappan of the KAK
High Tech Agricultural Limited
Company.
Targeted to produce cassava
starch and animal feeds, the
projected will occupy a total of
100 acres of land in addition to the
establishment of a major cassava
plantation to the tune of 1000
acres. The investment is expected
to play a major role in stimulating
cultivation of cassava in the region
as farmers will have an assured
market for their produced by enter
into contract farming with the
company.
solutions provider, Ingredion
has reached an agreement to
acquire a controlling 75% stake
in PureCircle, one of the leading
producers and innovators of stevia
sweeteners for the global food and
beverage industries.
The deal is expected to boost
Ingredion’s investments in the
sweeteners
industry.
Sugar
reduction is one of Ingredion’s five
specialties growth platforms that
the company has committed to
invest in its growth, of which stevia
is a core product for the sugar
reduction portfolio.
Ingredion said that it has
followed the development of
PureCircle for several years and
believes that it is a fundamentally
strong and attractive business that
will be a great fit with Ingredion’s
long-term
strategy,
given
PureCircle’s leadership position in
this space. Beyond its leadership
in the market, the company said
that PureCircle brings unrivalled
16 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
expertise related to stevia.
PureCircle has significantly
invested in advanced plant
breeding as well as R&D and
innovation, which has seen the
company obtain over 214 steviarelated patents with more than
300 applied for patents pending.
The company has also made
expansions and investments in
new manufacturing technologies,
including the latest expansion of
its Malaysian stevia extract facility
in 2017.
Upon completion of the
transaction, both companies
are expected to build on these
strengths while leveraging on
Ingredion’s global go to market
network and capabilities to drive
growth synergies.
The companies did not reveal
the financial details of the
proposed acquisition but said that
the deal has been approved by the
boards of both companies. The
transaction is expected to close
during the second half of 2020.
M&A
Nampak finalizes sale of its glass business to Isanti Glass 1
SOUTH
AFRICA
–
Africa’s
largest diversified packaging
manufacturer,
Nampak
has
announced the completion of sale
of its glass packaging business,
Nampak Glass, after having
announced its intention to sell in
September 2019
Nampak
Glass,
which
manufactures beer, spirit and
wine, water and juice bottles, as
well as food jars to is being sold to
Isanti Glass 1, a local subsidiary of
beer maker AB InBev for about R1.5
billion (US$81.3m). “The proceeds
were received in cash on 31 March
2020,” the company said in an
update to shareholders.
Nampak previously said the
payment would consist of R992
million (US$53.7m) for the
property, plant and equipment
of Nampak glass, plus the value
attributable to the agreed levels
of net working capital of the
business at the closing date, which
was estimated to be R500 million
(US$27.1m). The Competition
Tribunal of South Africa approved
the sale of the business in February.
For Nampak, the sale was
earmarked to improve the
company’s gearing by reducing its
debt levels and enable it to focus
on the metals business, which
generates more than 60% of the
company’s trading profit. The glass
business is one of two primary
glass container manufacturers in
South Africa, servicing beverage
and food manufacturers, with an
estimated market share of 25%.
FOODBUSINESSAFRICA.COM
M&A
Pernod Ricard acquires full
ownership of dry gin brand
Monkey 47
FRANCE – Wines and spirits
giant, Pernod Ricard has acquired
the remaining stake in dry gin
brand Monkey 47 in a transaction
that makes the French beverage
company the exclusive owner of
the brand.
Pernod Ricard initially acquired
a majority stake in Monkey 47 in
2016.
The French wine and spirits
company
made
its
initial
investment in the brand through
an agreement with German
company, Black Forest Distillers as
part of the company’s expansion
plan into the fast growing super
premium gin category.
Monkey 47 gin, which was
created more than 60 years ago,
has enjoyed growth at a global
scale and is currently available
in over 50 countries on four
continents. The company said that
the brand’s founder Alexander
Stein will remain involved in the
brand’s ongoing development
“The agreement is the logical
consequence of the brand´s
progress following the partnership
with Pernod Ricard,” Stein said. “I
would like to thank Pernod Ricard
for walking the talk. It has been
a fantastic journey and I look
forward to personally contributing
to Monkey 47’s future trajectory.”
The deal further enables the
Seagram’s and Beefeater brands
owner, to augment its position
in the global gin market, which is
poised to grow by US$3.71 billion
during 2020-2024, progressing at
a CAGR of 5% during the forecast
period, according to a Research
and Markets projections.
Pernod Ricard is already a
major competitor in the category
which counts of other globally
renowned distillers such as Asahi
Group, Bacardi, Berry Bros. &
Rudd, Davide Campari – Milano
Spa, Diageo, Remy Cointreau,
San Miguel, Suntory and William
Grant & Sons among others.
INVESTMENT
Kaap Agri invests US$8.62m in plastics subsidiary to
bolster its manufacturing capabilities
SOUTH AFRICA – Kaap Agri,
a South African group trading
in agricultural, fuel and related
retail markets, has made its first
major investment of more than
R150million
(US$8.62m)
to
further bolster its manufacturing
capabilities.
The investment entails the
establishment of Tego Plastics, a
new subsidiary of the Kaap Agri
Group, based in Brackenfell, Cape
Town, which will be making large
format, injection-moulded plastic
products.
Set to provide 33 new job
opportunities at the facility, Tego
Plastics will initially produce food
grade bulk bins for the agricultural
market, with the opportunity to
manufacture additional solid form
products at a later stage.
The Tego Bulk Bin is used in the
harvesting and post-harvesting
processes of fresh fruit and
vegetables and are essential to
the pome, citrus and stone fruit
sectors.
Kaap Agri chief executive
Sean Walsh said the launch of
Tego Plastics was in line with
the group’s strategy to diversify
its manufactured product range
and to offer more value to its
agricultural
customer
base.
“With limited availability of new
bins and product options it was
clear to us that we could help
address challenges that producers
face with the storage and
transportation of fresh produce,”
he said.
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REGULATORY
Kenya imposes 10% import levy on dairy products to boost local industry
KENYA – Kenya has imposed a
10% import levy on dairy products,
a move that seeks to cushion the
local dairy farmers from unfair
competition brought about by
unregulated imports.
Earlier this year, a mini trade
war erupted between Kenya and
Uganda, after milk imports from
the latter were impounded at the
border on claims that the products
had been illegally imported in the
country, leading to a temporary
ban on the importation. This
was followed by the Kenyan
government resolving to impose
16% value added tax (VAT) on
milk imports from Uganda in
January after a bilateral meeting
between trade officials from the
two countries.
To
further
protect
the
local industry, the Ministry of
Agriculture has published the
dairy industry regulations that
have introduced other stringent
conditions where milk processors
in Kenya will no longer set and
adjust farm gate prices at will. The
regulations are a departure from
the controversial draft published
last year, which was shelved after
farmers termed it punitive and
draconian.
According
to
the
new
regulations,
the
Agriculture
cabinet secretary in consultation
with the Kenya Dairy Board will
determine the minimum farmgate prices based on factors such
as cost of production, transport
and statutory deductions.
Even though Kenya has about
40 milk processors, the top
three—Brookside, New KCC and
Githunguri Dairy—control about
80 per cent of the formal milk
industry.
PARTNERSHIP
Danone partner impact fund manager to invest in water businesses across Africa, Asia
investors to invest in innovative
water businesses that provide
affordable and safe drinking water
to underserved populations to
catalyse further growth for the
entire water sector. Some of the
targeted water businesses include
decentralized solutions such as
water kiosks, which deliver safely
treated drinking water in gallons
to the home or to the local store.
The investments will also be
made in water pipes and water
technologies.
Loïc De Cannière, Founder
AFRICA – Danone, the French and Managing Partner Incofin
multinational
food-products IM stated that, “We see a vast
corporation has partnered with amount of young emerging water
Incofin IM, leading international companies in Africa and Asia.
impact fund manager to jointly But the capital needs of these
invest in businesses providing companies are relatively high.”
access to clean water in Africa By investing in these companies
and Asia.
and offering technical assistance,
The partnership will entail Danone and Incofin are pioneering
pooling capital from major an investment approach in
18 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
the water sector – building on
Danone Communities’ experience
investing in safe water enterprises
since 2007.
“We are convinced that our
participations in the young water
sector will allow us to build a
strong, overarching partnership.
Just as with the investments in our
microfinance portfolio, we want to
be a co-pilot for the entrepreneurs
in which we invest,” Loïc De
Cannière.
The
investment
initiative
is expected to help social
entrepreneurs scale their impact
with all necessary resources.
The joint initiative comes at an
opportune time. According to
the UN, 3 out of 10 people do not
have access to safe drinking water,
while inadequate or unreliable
access to safe water is a harsh
reality, especially in large parts of
Africa and Asia.
FOODBUSINESSAFRICA.COM
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PEOPLE
TECHNOLOGY
Nestlé expands blockchain technology to Zoégas coffee brand
PZ Cussons Nigeria
appoints new CEO, sells its
Nigerian dairy business to
FrieslandCampina
NIGERIA – PZ Cussons Nigeria
Plc, a subsidiary of UK-based PZ
Cussons Holdings has announced
the appointment of Panagiotis
Katsis as the company’s new CEO,
effective July 1, 2020.
Panagiotis
will
replace
the current CEO, Christos
Giannopoulos who will be retiring
from the company with effect from
June 30, 2020 after serving in the
position for about 11 years. Katsis,
joined the PZ Cussons Group in
1998 and has worked in a variety
of senior roles at the company
which includes but not limited to
General Manager Commercial and
Deputy Managing Director, PZ
Cussons Nigeria Plc. He has been
the Managing Director, HPZ/TEC
since 2018.
The appointment comes at a
time when the consumer goods
manufacturer has reached an
agreement to divest its Nigerian
dairy business, Nutricima to
Holland’s Royal FrieslandCampina
Nigerian subsidiary, for an
undisclosed sum.
Nutricima manufactures and
distributes beverages in Africa.
Its product portfolio includes
milk and yoghurt-based drinks
such as Nunu, Yo, and Olympic.
Under Nunu brand, the company
offers a wide range of powdered,
evaporated and ready-to-drink
(RTD) milk beverages, while under
Yo brand the company offers
yoghurt drinks, as well as an RTD
yoghurt range.
PZ Cussons executive chair
Caroline Silver said that the
proposed sale of Nutricima
is a further step towards the
company’s ‘Focus, Scale and
Accelerate’ strategy, which seeks
to streamline the Group to focus
its investments to core personal
care and beauty brands. “This
will enable us to deliver highermargin earnings, in geographies
which can scale, and support the
return of the Group to sustainable,
profitable growth.”
SWITZERLAND – Nestlé has
expanded the use of the IBM
Food Trust blockchain technology
platform to its Zoégas coffee
brand, enabling consumers to
trace the coffee back to the
different origins.
The expansion follows the
launch of select editions of Zoégas
whole beans and roast & ground
coffee in Sweden tagged the
‘Summer 2020’ range, which the
Nestle says is a 100% Rainforest
Alliance certified blend of Arabica
coffee beans from three origins
– Brazil, Rwanda and Colombia,
and consumers can are now able
to trace the coffee back to the
origin, thanks to the blockchain
technology.
To effect the traceability
technology, Nestlé has partnered
with The Rainforest Alliance to
independently provide reliable
data beyond what is usually
disclosed by the company. “The
Rainforest Alliance provides their
own certification information,
guarantying the traceability of the
coffee. This information is directly
accessible to everyone with
the IBM Food Trust blockchain
platform. Through blockchainrecorded data, coffee lovers will
now be able to trace their coffee
back to the different origins,” the
company explains.
By scanning the QR code
on the packaging, Nestlé said
that consumers can follow the
coffee journey from the growing
locations to the Zoégas factory in
Helsingborg where the beans are
roasted, grounded and packed.
The data includes information
about farmers, time of harvest,
transaction certificate for the
specific shipments, as well as
roasting period.
Nestlé started using blockchain
in 2017 when it joined the IBM Food
Trust as a founding member. The
IBM Food Trust aims at reinforcing
traceability of food products.
OPERATIONAL EXCELLENCE
Chinese brewing giant Tsingtao Brewery taps software
firm to drive its innovations
CHINA – Tsingtao Brewery,
China’s second-largest brewer
has partnered with Nutanix to
help streamline its management
operations and increase its focus
on infrastructure modernization to
evolve customer experience.
Through
the
partnership,
Tsingtao Brewery will leverage
Nutanix’s cloud software and
hyperconverged
infrastructure
solutions to enhance reliability of
mission critical systems for the
company’s more than 60 breweries
across the country.
China is home to the world’s
largest beer market by volume and
is the center of intense competition
locally and globally. Xu Haiqing,
20 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
Head of Information Management
Department at Tsingtao Brewery
says that to face this competition,
companies should focus on
innovation to meet consumer
demands. “As a global leader in
the beer industry, we have placed
great emphasis on modern IT
infrastructure. We now have an
advanced IT platform that provides
the confidence and assurance to
match our ambitions,” he said.
In an on-going effort to improve
product quality, service and
management, and create more
value for consumers, Tsingtao
launched an initiative to upgrade
its core business operations and
support an intelligent retail model.
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FUNDING
Twiga Foods secures US$5m financing from American development bank
KENYA – Twiga Foods, a Kenyan
online B2B food distribution
platform has received a US$5
million loan from the United
States International Development
Finance Corporation (DFC) to
improve food security in Kenya.
The investment from DFC seeks
to empower smallholder farmers
and urban produce vendors,
especially women to have access
to markets and also to improve the
agricultural supply chain with cold
storage, by enabling Twiga Foods
to buy additional transportation
and cold storage equipment.
DFC’s investment in Twiga
supports its 2X Women’s Initiative
by empowering a network of
mostly female produce vendors
to increase sales and profits. The
initiative has already catalyzed
more than US$1 billion to
economically empower women
across the developing world.
“Twiga is advancing an
innovative solution to create
economic opportunity particularly
for women, while ensuring
dependable
and
affordable
sources of food across Kenya,” said
DFC Managing Director of Global
Women’s Issues Charity Wallace.
“DFC is proud to support this
project, which will help strengthen
food security and unlock untapped
economic potential across Kenya,”
she added.
Twiga
operates
collection
centres across Kenya, and also
a central packhouse with cold
storage facilities. It owns a fleet
of mobilized trucks and vans for
collection and distribution of
produce, thus creating an efficient
logistics system that limits its postharvest losses to 5%, compared to
30% at informal markets. It’s main
objective is to link farmers and
vendors to fair, trusted, modern
markets by providing a complete
supply chain in Kenya for quality
produce in urban areas.
The financing comes months
after Goldman Sachs, American
multinational investment bank
acquired a stake in the food
distribution platform in October
last year, following a KSh 2.44
billion (US$23.75 million) deal
aimed to widen its footprint in
Kenya and Africa.
AGRICULTURE
Zimbabwe’s winter wheat production receives US$7.57m financial boost
tonnes is expected, surpassing
the required 400,000 metric
tonnes achieved annually. The
government plans to increase the
planted area to 80,000 ha (from
last year’s 74,184 ha) with CBZ
farming 65,000 ha whilst the
private sector 15,000 ha.
The country is also expected to
record wheat reserves for the first
time in decades if the programme
is well undertaken. Zimbabwe
has had to import wheat from
neighbouring countries following
almost two decades of poor
yields due to several challenges
ZIMBABWE – The Commercial that included lack of funding by
Bank of Zimbabwe (CBZ) and commercial banks and electricity
private partners in the country will shortages among others.
this year fund the winter wheat
However, the sector has
production under contract farming received some relief. Chiwenga,
by the government to the tune of who chairs the Food and Nutrition
ZWD 2.74 billion (US$7.57m).
Committee, revealed that the
According to Vice President Cabinet has approved a preConstantino
Chiwenga,
an planting winter wheat producer
increased yield of 415,000 metric price pegged at ZWD14, 143
22 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
(US$39) per metric tonne. Despite
the producer price being subject
to review in line with changes in
input prices using a cost plus 20%
margin price, the move is aimed at
ensuring prices remain attractive.
Chiwenga added that electricity
would be uninterrupted at wheat
clusters from April to September,
with an added 55% tariff of
commercial rates. The farming
season will not be affected by
the poor rains as all winter wheat
cluster dams are almost full at
68%, Lands minister Perrance
Shiri highlighted.
Other initiatives by CBZ
aimed at boosting agricultural
production includes the rolling out
a US$50 million bond to finance
the 2019/20 agriculture season to
finance the importation of farming
inputs specifically for maize and
soya beans as part of efforts to
improve production of the two
essential food crops.
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23
M&A
East African Breweries to raise stake in Serengeti Breweries by 30%
million (US$2.9m) last July to
acquire 4% additional stake in
Serengeti.
“EABL intends to enter into
a conditional transaction to
purchase an additional 30
percent shareholding in Serengeti
Breweries. Completion of the
transaction is subject to various
regulatory approvals in Kenya
and Tanzania,” EABL said in
a cautionary statement to
shareholders.
In the year ended June 2018,
EABL announced the conversation
of Sh15.3 billion (US$147.2m)
loans receivable from Serengeti
EAST AFRICA – East African into equity sought to ease the
Breweries Limited (EABL) is set to Tanzanian brewer’s debt burden.
acquire an additional 30 percent
This transaction increased
stake in its Tanzanian subsidiary, EABL effective interest in Serengeti
Serengeti Breweries Limited, in from 51% to 72.5%. However,
a deal that will deepen its grip, Tanzanian authorities previously
shortly after the firm spent Sh313 opposed EABL’s acquisition and
forced it to pay an unspecified
fine to settle alleged flouting of
takeover rules.
This led to the agreement that
the legal shareholding remains
unchanged and that minority
shareholders be using 50% of
dividends declared to gradually pay
off the EABL debt. The agreement
was that upon repayment of
the debt by Serengeti through
dividends, the effective economic
interest of EABL would revert back
to the original 51% status.
According to the brewer’s half
year ended December financials,
Serengeti is the group’s fastest
growing business, expanded by
19%, it accounted for 12% of the
total sales. Net sales from this
unit rose 26% during this period,
the fastest among the three units,
driven by growing interest in
Serengeti Lite among consumers.
M&A
Coca-Cola venture fund invests in Indonesian logistics startup Kargo Technologies
INDONESIA – Amatil X, the corporate venture
capital platform of Coca-Cola Amatil Indonesia has
made a strategic investment in Indonesian logistics
startup, Kargo Technologies as part of the bottler’s
broader strategy to digitize its operations.
Kargo Technologies is a freight logistics startup
that integrates shippers and logistics providers onto
a single marketplace, aiming at digitizing Indonesia’s
freight logistics industry by leveraging technology
to drive efficiency, transparency and accountability.
The startup has developed a platform that enables
shippers, transporters and truckers to connect,
transact and track shipments in real time through its
website or app.
The deal makes this Amatil X’s first startup
24 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
investment in Indonesia. The Coca-Cola bottler
revealed that Kargo is currently fulfilling two of its
key land transportation routes and expects this to
increase over time as Kargo’s network expands. It
said that investing in Kargo Technologies will enable
the company to optimise its logistics capability by
increasing productivity and efficiency on some of its
key trucking routes.
“Our investment in Kargo Technologies supports
our ambition to be a leading player in the digital
ecosystem here in Indonesia,” Coca-Cola Amatil
Indonesia President Director, Kadir Gunduz said. He
maintains that technology plays a crucial role in the
company’s transformation journey, and especially so
in the last decade.
In achieving its commitment and targets, CocaCola Amatil Indonesia has invested heavily in
state-of-the-art systems and technology to support
its nation-wide operations and partnered with
Indonesia’s leading technology providers.
Gunduz said that the company is focusing on
developing its people and embedding disruptive and
breakthrough problem-solving culture, for example,
through introducing Artificial Intelligence and Virtual
Reality experience. “The new partnership will help us
to extend our competitive advantage by improving
the way we do business or the way we service our
customers,” Gunduz added.
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INVESTMENT
Alapala completes installation of a new flour mill in Morocco
MOROCCO – Alapala, one of
the leading brands in flour milling
equipment and mill projects has
completed the installation of the
newest flour mill reference at Flour
Mills company in Morocco.
Flour Mills is a family-owned
company that is in a long time
business partnership with Alapala.
Currently it has a processing
capacity of 900-tonnes of wheat
in two locations, with the new mill
located in the El Jadida region.
The new plant has a processing
capacity of 300 tonnes per day,
processing local semi-hard wheat
and three different variants of
bakery flour mainly for domestic
consumption.
Making it Alapala’s third turnkey flour mill project in Morocco,
the new mill is installed in a sixfloor concrete building, which
also is designed and constructed
in conformity with high sanitation
standards.
It is equipped with the latest
Alapala technology consisting of
Similago II roller mills (DAVG),
Quadro Plansifters with larger
sieve boxes (GPAK) and control
sifters (RKEM). An optical sorter
is also used in the plant for very
fine cleaning of wheat before
milling, to ensure the highest level
of food safety is achieved.
Alapala says that the plant
operates efficiently with an
advanced automation system, that
allows the centralized monitoring
and management of the complete
cleaning, milling and packaging
processes. The system enables
generating detailed production
reports, with also real-time error
diagnosis
and
long-distance
connection functions.
The new project adds to
Alapala’s over 650 references
worldwide in 100 countries
including Senegal, Zambia, Angola,
Kenya, Tanzania, Mozambique
and Ghana.
TRADE
COVID-19 crisis devastates African farmers as export markets shutter
AFRICA – Millions of family farmers across Africa are
facing economic devastation as COVID-19 pandemic
disrupts exports and global food supply chains.
This is according to the Impact of Coronavirus on
Africa’s Agriculture April 2020 report released by
Selina Wamucii that gives a most-recent and groundup perspective on how the pandemic is affecting
African farmers.
Notably,
the
COVID-19
pandemic
has
unfortunately come at a time when farmers depend
largely on exports to markets outside the continent
and also before the commencement of trading under
the African Continental Free Trade Area (AfCFTA)
that was scheduled to commence on July 1, 2020.
According to John Oroko, CEO of Selina Wamucii,
intra-Africa trade is around 2% while exports from
Africa to the rest of the world range from 80%
to 90% of total exports, of which a huge share is
made up of agricultural produce. “COVID–19 is
severely disrupting trade in key markets for Africa’s
agricultural produce and African farmers are bound
to experience a nightmare in export market access,”
says Oroko.
Morocco tops the list of African countries whose
agricultural exports face the highest risk largely
due to the country’s over-reliance on the European
market given its close proximity and well-established
traditional trading ties. Kenya’s agricultural exports
also face a great risk mainly due to the over-reliance
on fresh-cut flower exports, the bulk of which end
up in the European Union and a substantial portion
to China, which are markets that have already been
shaken up.
While the agricultural production in South Africa
has not been adversely affected by the Coronavirus
pandemic, logistics and border restrictions are likely
to affect South Africa’s agricultural exports. Other
African countries that will experience significant
drops in the FFV, fish and seafood exports are, in
order of the projected severity: Tunisia, Senegal,
Cameroon, Uganda, Mauritania, Tanzania, and Egypt.
BUSINESS STRATEGY
Distell to consolidate core wine brands, offload some assets to balance books
SOUTH AFRICA – Africa’s leading spirits maker
Distell has announced that it will consolidate its core
wine brands and capabilities to focus on growth in
mainstream and accessible premium segments and
offload its struggling wine farms in a bid to improve
financial performance.
According to its five-year strategy, presented at
its recent interim results presentation, the company
plans a further focus on sustainable growth and
returns, “leveraging core strengths and capabilities
to drive, defend, and expand its markets on the
African continent and select International markets.”
Distell has decided, after careful analysis that
the Libertas Vineyards and Estates (LVE) business
entity will reintegrate back into the company. It said
that it foresees the Nederburg, Durbanville Hills and
Pongrácz brands continuing to play a significant
role in its wine portfolio, as will the Fleur du Cap,
Zonnebloem and Chateau Libertas brands.
Distell said it will also continue the process of
selling certain assets. To utilise its strengths in the
mainstream and accessible premium wine segments,
the company says it will unlock value from certain
assets on the balance sheet with Alto and Plaisir de
Merle being put on the market. “These iconic, ultrapremium brands compete and focus in the superpremium categories and would be sold to owners
more focussed in this segment, to make them thrive,”
said Richard Rushton.
The company says that managing its wine
brands collectively will bring significant synergy
to the business locally and internationally, further
enhancing its ability to meet customer’s needs.
Distell says it will continue to focus on scaling
accessible premium and mainstream wines, which
are key to profitability and returns. Therefore, it will
continue to support and investment in the industry
to ensure local and global success.
M&A
Tongaat Hulett offloads starch business for US$342.6m in debt recovery efforts
Tongaat Hulett is offloading its
100-year-old starch business to the subsidiary
of logistics company Barloworld for R5.35billion
(US$342.6m) in an effort to reduce its debt and
cover on-going operations.
This comes as the group resumed trading its
shares in the JSE in February with the restatement
of the group’s September 2018 results. Tongaat has
issued a notice to shareholders indicating that the
starch business would be sold to KLL Group, a wholly
owned subsidiary of Barloworld.
“Tongaat has undertaken to its funders to reduce
its debt levels by R8.1bn (US$543.2m) by March
2021 in line with the debt reduction plan,” it said in
a stock exchange announcement. “Management and
SOUTH AFRICA –
the board have initiated various processes, including
implementing greater operational efficiencies to
improve the group’s cash flow considering potential
non-core and core asset disposals and considering
potential equity capital raising initiatives.”
The starch business, established in 1919, is one
of the largest wet millers in sub-Saharan Africa and
operates four plants in SA, producing modified and
unmodified starch, as well as a powdered glucose
and agri-products and a total installed capacity to
process more than 850,000 tons of maize a year.
Group chief executive Gavin Hudson said
Tongaat had already met and exceeded the first debt
repayment milestone agreed with its lenders. He
said the group is considering a number of options
for reducing its debt, apart from selling non-core and
core assets. The other options include accelerating
operational efficiencies, and a potential strategic
equity capital raising initiative.
“The sale of the starch business will allow us to
make excellent progress on paying down our debt,
and that in turn will give us breathing room and free
us up to put measures in place to grow the business.
The sale positions us for longer-term sustainability
and value creation for our shareholders,” Hudson
said.
M&A
Cairo Poultry approves sale
of its stake in Egyptian Starch
and Glucose Company to
Cairo 3A
EGYPT – The board of directors
of Cairo Poultry Company, a
subsidiary of the Americana
Group, have approved the final
offer submitted by Cairo 3A to
acquire its stake in the Egyptian
Starch and Glucose Company
(ESGC).
ESGC is a public traded
company,
whose
major
shareholders are the Americana
Group, leading Restaurants &
Foods Company in MENA and
its subsidiaries. Cairo 3A, an
integrated agri-commodity trader
and manufacturer, had submitted
its initial offer in February to the
three major shareholders of ESCS
to acquire the company’s 91.5%
stake valued at between LE 450510 mn (US$28m – US$32m).
The offer included acquiring
Americana Egypt’s 11.6 million
shares in the company, amounting
to a 23.2% stake, Cairo Poultry’s
13.65 million shares amounting
to 27.3% stake and Americana
Group’s 41% stake in the
company.
Cairo Poultry has accepted
to sell its 13.65 million shares
and has further clarified that the
final decision is still pending the
approval of the ordinary general
meeting (OGM) set to be held on
May 5.
ESGC provides a broad portfolio
of products for customers in the
confectionary, dairy, meat, and
beverage industries, as well as
non-food markets such as paper,
textile, and board manufacturing,
in addition to the ruminant
feed market. They specialize in
producing and marketing corn
starch, glucose syrup, corn oil,
gluten feed and meal.
28 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
M&A
Diageo injects US$48.7m for additional stake in India’s
United Spirits Limited
INDIA – Diageo has acquired
additional
shareholding
in
India’s leading liquor company
United Spirits Limited (USL),
in a transaction that increases
Diageo’s stake in the company to
55.9%.
Diageo paid US$48.72m to
acquire additional 5,075,000
shares (approximately 0.70%
shareholding) in the National
Stock Exchange of India listed
company at a per share price of
INR693.25 (US$9.6).
While Diageo first acquired
a controlling stake in United
Spirits in 2014 through a US$1.4
billion tender offer, the company
has progressively increased its
shareholding in United spirits
over the years. In August last
year, Diageo purchased a further
3,310,515 shares (approx. 0.46%
shareholding) in United Spirits for
about US$27 million.
The London-based brewer
says that United Spirits is a highly
strategic asset for Diageo and
positions the company well to
capitalise on opportunities within
India, one of the most exciting
growth markets in the world for
total beverage alcohol, where
during the first half of fiscal 2020,
the “Prestige and Above” segment
in India grew by 5%, driven by
Johnnie Walker and Black & White.
“India remains one of the
most exciting growth markets
in the world for total beverage
alcohol. This transaction forms
part of Diageo’s long-term
strategy of premiumisation within
the market,” Diageo said in a
statement. The transaction comes
at a time when United Spirits has
reportedly proposed a merger
with its majority owned and listed
subsidiary
Pioneer
Distillers
Limited.
Headquartered in Bengaluru,
USL employs more than 6,000
people and is represented in
81,000 outlets across India. It has
over 88 manufacturing facilities
across 23 states and three union
territories in India, and exports its
products to over 37 countries.
PRIVATE EQUITY
Investcorp closes US$275m Asia food brands private
equity joint venture vehicle
ASIA – Bahrain-headquartered
global alternative investment
manager,
Investcorp
has
announced the first closing at
US$275 million, of its Asia food
brands private equity platform
that the investment firm jointly
runs with its Chinese partners.
The platform, which was
established in November last year
by Investcorp, China Resources,
one of the world’s largest owners
and distributors of food brands in
Greater China and Fung Strategic
Holdings Limited, a member of
Fung Investments, aims to invest
US$500m in food brands and
manufacturing sites in Asia.
In the past several months,
Investcorp has seen strong interest
in platforms of this type given
the food sector’s traditionally
defensive and resilient qualities
especially in the current market
landscape. With a potential of
120 million Chinese households
set to become middle class
consumers over the next decade,
the investment firm believes that
China can provide a significant
surge in domestic consumption
growth.
China counts as the world’s
largest
and
fastest-growing
consumer market and it is poised
for further growth as Chinese
millennials spend more on
premium and healthier brands.
FOODBUSINESSAFRICA.COM
Sustainability
BUSINESS AFRICA
TRENDS IN RENEWABLE ENERGY
• WATER • WASTE • AIR •
MANUFACTURING • MOBILITY •
INFRASTRUCTURE • COMMUNITIES •
RESOURCES • POLICY & REGULATION
RECYCLING PLANT
Global packaging giant DS Smith opens its first US recycling plant
USA – DS Smith has opened its first recycling facility
in the United States located in Reading, Pennsylvania
aimed at driving a circular economy and designed to
eliminate waste and encourage sustainability.
According to the company, the new 43,000-squarefoot plant utilizes the innovation and processes that
have enabled DS Smith to globally manage more than
5.5 million tons of material for recycling annually.
In addition to material from DS Smith’s Reading
corrugated packaging plant, the local team will work
with others in the region to recover paper for recycling
from local distribution centers, packaging facilities,
retailers and print shops. DS Smith said that the
facility, which is the latest expansion of its business
operations in North America, creates a closed loop
manufacturing model that enhances its customers’
sustainable packaging credentials.
“This new plant can recycle over 36,000 tons of
old corrugated cardboard each year, creating new
fully recyclable packaging for our customers in this
region,” said Toby Earnest, head of recycling for DS
Smith in North America. “Our goal is to achieve zero
cardboard and paper going to landfill after packaging
is used.”
The recycling plant has the capability to segregate
other materials, such as plastic, glass and metal,
compressing the remaining recyclable cardboard
and paper into large bundled bales, as heavy as a ton
each. DS Smith explains that the process allows for
corrugated packaging to be made, used, collected
and recycled into corrugated boxes again within just
14 days while at the same time reducing the amount
of fiber in its boxes by up to 30%.
The company added that the facility is well
positioned to service the paper mill and sell recycled
packaging products to its partners and others.
CLIMATE GOALS
Givaudan commits to global initiative addressing water challenges
across six key areas including the
use of water in direct operations,
supply chain and watershed
management, and community
engagement. The endorsement of
the mandate builds on Givaudan’s
commitment to water stewardship,
which earned a CDP A grade in
January this year.
The ingredient supplier views
water as an essential element both
in its manufacturing activities and
SWITZERLAND – The global in its entire value chain, and the
flavor and fragrance company, company is “looking to consume
Givaudan has endorsed the CEO and discharge this increasingly
Water Mandate, a UN Global precious natural resource in a
Compact initiative which brings socially equitable, environmentally
together major business leaders to sustainable and economically
address global water challenges.
beneficial manner.”
As the latest company to
“Water stewardship is a global
endorse the mandate, the Swiss challenge which requires a global
company has committed to action response,” said Gilles Andrier, the
FOODBUSINESSAFRICA.COM
chief executive officer, Givaudan.
“Driven by our purpose, we must
lead the way by delivering on our
own ambitious commitments
to protect this precious natural
resource, while harnessing the
power of collaboration across
sectors to drive change.” The
company has already surpassed
its 2020 target for reducing global
water consumption per tonne of
production by 15% against a 2009
baseline three years ahead of
schedule.
Givaudan now joins over 170
companies including Ferrero, The
Coca-Cola Company, Danone
Ambev, Bunge, Firmenich, AB
InBev, Bayer, Braskem, Heineken,
Keurig Dr Pepper, Diageo, PepsiCo,
Mondi, Neste, Olam and Cargill
that have endorsed the mandate.
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
29
INNOVATIONS PARTNERSHIP
CLIMATE GOALS
Unilever joins Greentown Labs to support
advancements in sustainability
Huhtamaki renews its 2030 sustainability
ambitions
USA – Global consumer goods company, Unilever,
has joined Greentown Labs, one of the largest
cleantech start-up incubators in North America, as
a Terawatt-level Partner. The partnership seeks to
support the advancement of sustainable products
and supply chains.
Greentown Labs’ network of early-stage startups
will now have the unique opportunity to connect and
potentially collaborate with one of the world’s largest
consumer goods companies.
“Unilever has been a pioneer in deploying
science-based sustainability goals and incorporating
them into the DNA of the organization,” said Emily
Reichert, CEO of Greentown Labs. “We’re thrilled
to partner with them and eager to see how our
organizations will collaborate this year and, in many
years, to come!”
Key elements of Unilever’s partnership include: a
Startup Pitch Day, Sector Pitch Days and a Corporate
Innovation Day.
Wendy Herrick, Vice President of Digital Supply
Chain, will join also Greentown Labs’ Advisory
Board which provides strategic guidance and input
to the incubator on growth planning, partnership
development, and other areas. Unilever executives
will also host office hours and informational
sessions with Greentown Labs’ startup community
to showcase their areas of expertise, innovation
priorities, and engagement opportunities for startups
to connect with the company.
Greentown Labs operates a 100,000 sq. ft. campus
which provides startups with a robust network of
strategic partners, prototyping lab space, a wet lab, a
machine and electronics shop, office space for more
than 500 entrepreneurs, a 600-person event space,
and a variety of flexible membership options.
Located in Somerville, Massachusetts, Greentown
Labs is home to more than 100 startups and has
supported more than 250 startups since its inception
in 2011. According to Greentown Labs, these startups
have collectively created more than 6,500 direct
jobs and have raised more than US$750 million in
funding.
30 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
FINLAND – Food packaging solutions provider,
Huhtamaki has unveiled its renewed long-term 2030
strategy and sustainability ambitions as part of the
company’s strategy to maintain a growth trajectory
and meet future transformative trends.
Going forward, Huhtamaki said that it will focus
on growth, competitiveness, talent and sustainability
as the company seeks to become the first choice
in sustainable food packaging. As part of it’s new
2030 sustainability ambitions, the Finish packaging
supplier has set a goal to become carbon neutral in
its production and adopted science-based targets.
Huhtamaki also plans to make 100% of its
products recyclable, compostable or reusable and
further source 100% of fiber from recycled or certified
sources by 2030. Within the next ten years, the
company also intends to make more than 80% of its
raw materials either renewable or recyclable, ensure
that over 90% of non-hazardous waste generated is
recyclable or compostable as well as source 100% of
electricity from renewable sources.
While acknowledging that packaging has a
significant role to play industry in addressing the
global challenges of circularity and climate change,
Huhtamaki said that the commitments will ensure
the company plays a leading role within the food
packaging industry.
Charles Héaulmé, President and CEO of Huhtamaki
pointed out that the company’s 2030 strategy will
emphasize on strong various core values: Care,
Dare, Deliver, as paramount in driving this successful
journey. Charles added that the company will continue
to grow through a relentless focus on innovation,
scaling up in growth markets and developing new
businesses to meet changing consumer needs.
“We have set very high sustainability ambitions,
amongst them a commitment to achieving carbon
neutrality in our production and Science Based
Targets by 2030. We want to become world-class
in all three areas of sustainability: environmental,
social and governance. We will also strengthen and
focus our innovation, designing all our products to be
recyclable, compostable or re-usable,” he said.
FOODBUSINESSAFRICA.COM
MB PLC INTERVIEW
INDUSTRY INITIATIVES
UK dairy industry reinforces sustainability
commitments, joins global initiative
UK – The UK dairy industry, under the banner of the
Dairy Roadmap has signed up to a global sustainability
initiative, becoming an aggregating member of
the Dairy Sustainability Framework, pledging its
commitment to global indicators of sustainability.
The global initiative represents a commitment
from signatories to monitor and report data on
sustainability in a globally aligned and consistent
way.
As aggregating members, The Dairy Roadmap,
comprised of Dairy UK, The National Farmers
Union (NFU) and the Agriculture and Horticulture
Development Board have joined an aligned global
network for sustainable dairy. The UK will therefore
begin reporting across the Dairy Sustainability
Frameworks, on up to eleven sustainability indicators
and strategic intents.
This commitment builds on the achievements
made by the UK dairy sector over more than a
decade through The Dairy Roadmap, and reaffirms
the sector’s commitment to reporting sustainability
both nationally and globally. “Joining the Dairy
Sustainability Framework will ensure that the UK is
at the forefront of sustainability reporting globally,”
Policy and Sustainability Director of Dairy UK Peter
Dawson said.
NFU dairy board chairman Michael Oakes
added that signing up to the Dairy Sustainability
Framework would enable British dairy farmers to
better understand how to compare environmentally
on a global scale. “It’s also important that we work
together with dairy farmers in other parts of the world
to actively improve the dairy industry’s commitment
to environmental sustainability,” Dawson said.
The UK dairy sector, through the Dairy Roadmap,
has made significant progress in its efforts to reduce
its environmental footprint through commitments to
reduce greenhouse gas emissions, improving energy
efficiency, water usage and waste management
on farm. Over the coming year, the Dairy Roadmap
will implement a process of materiality and priority
setting, to deliver a new vision for UK Sustainable
Dairy.
FOODBUSINESSAFRICA.COM
Is your African
Strategy
taking longer
to deliver than
you planned?
11%
Africa is full of potential
but is a tough place to
do business, we agree.
Our magazines can help
you unlock the potential
there is in Africa’s food
and agro sector.
Advertise on our print
and online resources.
Contacts us on:
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Email: info@fwafrica.net
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
31
INDUSTRY INITIATIVES
Mondelez International accelerates transition to a circular economy for plastic
USA – Mondelez International has joined the Ellen
MacArthur Foundation’s New Plastics Economy
Global Commitment and the UK Plastics Pact and
has additionally become a participant of the New
Plastics Economy Initiative, as the chocolate and
confectionery maker accelerates its efforts to reduce
its impact on people and the planet.
The initiatives share a collective ambition to
address plastic waste and pollution at its source,
by moving toward a circular economy where plastic
stays in the economy and out of the environment.
Christine Montenegro McGrath, VP of Sustainability
at the confectionery giant said that the announcement
advances the company’s leadership role in calling
for and participating in sector-wide collaboration to
identify and scale up innovation, harmonize packaging
formats to make recycling easier and improve waste
management infrastructure. “We believe that sectorwide initiatives, in collaboration with government,
are key to reducing the impact of packaging on our
planet,” Christine said.
The New Plastics Economy Global Commitment
has set ambitious 2025 targets which Mondelez
International, along with signatories from
government, business and other organizations, have
formally endorsed. The company will work towards
taking action to eliminate problematic or unnecessary
plastic packaging by 2025 and ensuring that 100% of
its plastic packaging is reusable or recyclable.
The initiative also requires the Oreo, Milka and
Cadbury brands owner to use 5% recycled content
(by weight) across all plastic packaging used and
further take action to move from single-use towards
reuse models where relevant. The company has
also committed to ensuring all plastic packaging is
recyclable in practice and to using recycled plastic in
its packaging wherever possible.
The company said that the initiatives support its
ambition to create zero net waste packaging and
furthers reinforces the company’s 2025 sustainability
goals.
SOLAR ENERGY
CLIMATE GOALS
Greenfields secures solar energy deal for its
Indonesian milk processing plant
ADM unveils new plan to cut greenhouse
gas emissions, energy consumption
SINGAPORE – Greenfields, the largest dairy
company in Southeast Asia has partnered with Total
Solar Distributed Generation (DG) to supply solar
power for its biggest milk processing plant in Palaan,
East Java, Indonesia.
The Indonesian plant, which processes 70
million litres of milk annually will be equipped with
a 1,300kWp solar power system by Total Solar DG,
a wholly-owned subsidiary of French energy group,
Total S.A. The solar system will have a capacity to
generate 1,770MWh of electricity annually, covering
around 20% of the plant’s power needs. With 3,750
modules, the dairy processors said that the system
will reduce carbon dioxide emissions by around 1,482
tons every year, in line with Greenfields’ commitment
to sustainable farming.
“Greenfields is pleased to partner with Total Solar
DG on this project, which will not only broaden our
energy sources and improve our resource’s efficiency,
but also reduce our environmental footprint and help
build a more sustainable future,” said Edgar Collins,
CEO of AustAsia Food. Greenfields said that the
system is expected to be running in the third quarter
of 2020.
USA – Multinational agricultural trader and food
processor, ADM has advanced its sustainability
commitments with a new ambitious plan to reduce
its absolute global greenhouse gas emissions by 25%
and energy intensity by 15% by 2035.
The Chicago-based company noted that the
new goals follow on its original 2011 sustainability
plan, in which the company committed to perunit improvements in energy use, greenhouse gas
emissions, water and waste to landfill by 2020.
Among ADM’s goal was to reduce emissions
intensity by 15% over the 2010 baseline by 2020.
After meeting those goals ahead of schedule, the
company says that it engaged WSP Global, one of
the world’s leading engineering professional services
firms, to conduct an in-depth feasibility study to help
shape a new set of commitments to combat climate
change.
According to a statement issued by the company,
WSP’s study identified several pathways toward
success, including purchasing renewable electricity,
increasing use of biomass fuels, transportation fleet
changes and equipment changes in some locations.
ADM’s Chairman and CEO Juan Luciano said that
the greenhouse gas emissions reduction targets will
enable the company to save the equivalent of those
from charging every single smart phone on the planet
250 times.
Luciano believes that this is going to have a real
impact adding that it is a key way in which ADM
is going to continue to give its customers an edge
in meeting the market challenges of today and
tomorrow.
32 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
FOODBUSINESSAFRICA.COM
Dairy
BUSINESS
TRENDS IN FORMULATING, PROCESSING, PACKAGING & CONSUMPTION OF DAIRY PRODUCTS
Health and pleasure focus for dairy as ice cream goes guilt free
T
he dairy category is facing key challenges in
remaining viable amid changing consumer
tastes in the US market, which could impact
the rest of the world in due course mainly
due to the strong growth in interest in plant-based
alternatives, according to a new report by Innova
Market Insights.
However, the sector has remained resilient even
as the ‘the plant based revolution’ upsets the sector,
with the dairy industry responding with innovations
focusing on other 2020 top trends, including ‘the
right bite’, ‘macronutrient makeover’, ‘tapping into
texture’ and ‘hello hybrids’, further developing its
emphasis on health and pleasure.
Meanwhile, in the ice cream aisle, the balance
between health and indulgence is increasingly
important according to a new report from Innova
Market Insights which highlights the ice cream
category’s growing focus on delivering pleasure
without the guilt.
‘The right bite’ describes the quest of busy
consumers to maintain healthy lifestyles, both
physically and mentally, raising the demand for
FOODBUSINESSAFRICA.COM
nutritious foods that are easy to prepare, convenient
and portable. Indulgent, treats also play a role in
relaxation and enjoyment, adds Innova.
‘Macronutrient makeover’ highlights attention
being paid to changing perceptions of macronutrient
content and balance, not only in dairy, but in food
and drinks as a whole. Innova reveals that typically
one macronutrient at a time is the focus of consumer
concern, with low-/no-sugar currently leading from
low fat and low calorie as the claim most influencing
purchasing decisions in the 2019 Innova Consumer
Survey that was carried out in the UK, the US, Spain,
France, Brazil, Germany, Mexico and China. As a
result, the search for natural sugar reducing solutions
goes on in dairy, with the use of cultures and enzymes,
which also have clean label benefits, being an area of
particular interest.
Texture and hybrids rise
The ‘tapping into texture’ trend focuses on
consumers’ increasing recognition of the influence
of texture on dairy, allowing a heightened sensory
experience and often a greater feeling of indulgence.
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
33
DAIRY TRENDS | DAIRY & ICE CREAM
According to the research, an average 45% of US and
UK consumers are influenced by texture when buying
food and drinks, while 68% share the opinion that
textures contribute to a more interesting food and
beverage experience.
Terms such as ‘thick & creamy’, ‘smooth’,
‘crispy’ and ‘crunchy’ are increasingly in evidence in
products as varied as milk drinks, yogurt and cheese.
Products such as milk and milk drinks, for example,
are being given added indulgence through texture
and mouthfeel claims, which were previously not in
widespread use in the subcategory.
The ‘hello hybrids’ trend recognizes the growing
interest in products that combine two different
features. Increasingly adventurous consumers tend to
be highly receptive to hybrid concepts, with interest
in blending ingredients, combining food types and
mixing flavor profiles. According to Innova Market
Insights research, 70% US and 50% UK consumers
like products that mix flavors, such as sweet and salty.
The report notes that hybrid concepts in dairy
products are taking a variety of formats, including
category fusion, such as ice cream flavored yogurts;
mixed taste profiles, such as drinks with sweet and
savory flavor blends; and blended ingredients, such
as dairy and non-dairy milk combinations, featuring
options such as oat and almond.
Ice cream shifts to greater pleasure and less guilt
In the ice cream space, Innova reveals that leasure
is still the driving force behind ice cream purchases,
with consumers naming ice cream’s taste, the fact
that it’s a treat and that it makes people feel happy
as the top three reasons for splurging on this old time
favourite.
However, the balance between health and
indulgence is increasingly important for the
contemporary consumer environment, Innova Market
Insights reveals and a new report, which highlights
the ice cream category’s growing focus on delivering
pleasure without the guilt.
As far as the key macronutrients are concerned, for
example, the focus within ice cream development is
clearly shifting from fat to sugar. Through 2015-2019,
global launches of low sugar ice creams increased at
a CAGR of 48%, while launches of low/no/reduced
fat ice creams dropped at a CAGR of 12% over the
same period.
The report adds that the non-dairy movement is
also impacting on ice cream innovation as significantly
growing numbers of consumers explore plant-based
eating. “Non-dairy ice creams tripled their share of
total ice cream launches in North America between
2015 and 2019, reaching a significant figure of 18%
penetration,” reports Lu Ann Williams, Director of
Innovation at Innova Market Insights. “Meanwhile,
Australasia and West Europe are other important
34 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
stamping grounds with 15% and 9% non-dairy
penetration, respectively.”
Even within these healthier ice cream categories,
however, indulgence is never far away and the idea of
‘permissible indulgence’ is leading to the combination
of healthier formulations with decadent tastes. For
example, salted caramel is an indulgent flavor that has
exploded into the mainstream in recent years. It was
ranked as the fifth most popular taste within launch
activity in 2019, up 10 places since 2015. However, it
is even more popular in helping to deliver an indulgent
image to guilt-free products, taking fourth place in
non-dairy ice cream launches, third place in low fat
ice cream and second place in low sugar new product
development.
Adults influence baby foods innovation
Meanwhile, the influence of adults on the innovation
pipeline for baby foods and snacks is strong, according
to a report by Innova.
The report reveals that while early stage infant
nutrition is firmly focused on the developmental
needs of babies, it is evident that parents’ interests
shift as their children grow and that adult themes
become increasingly important in post-weaning
categories, adding that prepared foods categories
are leading growth in infant nutrition new product
development, with segmentation continuing.
The innovation in the baby snacks are leading
the charge, with innovation rising at a CAGR of 33%
over 2015-2019 in the category, while fruit, desserts
and yogurts introductions grew at 21% CAGR. The
average annual growth in the baby formula/milks
category is 13%, reveals Innova, adding that the
activity in baby snacks, desserts and meals is firmly
centered on natural and unadulterated formulations.
“Additive free claims appeared on around two-thirds
of new products in these areas of infant nutrition in
2019,” said Lu Ann Williams, Director of Innovation at
Innova Market Insights, “While around one half also
carried organic claims.”
In line with adult interests, there is also growing
attention being paid to “super” ingredients from the
plant world, protein and fiber claims, and “free from”
positionings. Innova adds that no added sugar claims
are also growing and, although they remain relatively
niche, ethical claims are gaining ground rapidly.
Meanwhile, in baby snacks – which are generally
aimed at older infants and toddlers – there is even
12% penetration for vegan claims, compared with 4%
in infant nutrition as a whole.
In contrast, early-stage nutrition is firmly focused
on the science of nutrition, with ongoing development
in the push towards ever closer mimicry of breast
milk. At the same time, personalization is important
so parents can choose milk formulas suited to their
babies’ specific needs, the report concludes. FBA
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Beverage TECH
TRENDS IN FORMULATING, PROCESSING, PACKAGING &
CONSUMPTION OF BEVERAGE PRODUCTS
Hard Seltzer take US by storm, set for global
growth
I
t may be one of those trends that will remain a
largely US trend, but the rise of the hard seltzer
drinks category is creating waves that may make
it a category of note around the world in a few
short years.
Hard seltzer, which is basically sparkling water
spiked with alcohol, usually with about 5% alcohol
by volume, has had a meteoric rise across the US
beverage alcohol industry that has been nothing short
of phenomenal. Already a US$550 million category, it
is slated to grow to US$2.5 billion, an annual growth
rate of 66% per year, led by the US, according to an
analysis by UBS.
The phenomenon has also seen recent spate
of introductions in the UK, with research from a
comprehensive new Hard Seltzer Report from IWSR
Drinks Market Analysis forecasting that consumer
interest in the will continue to grow, with the category
crossing borders into new countries and regions – and
on the way overtaking other drinks categories.
Led by the brands White Claw and Truly, according
to the IWSR, the hard seltzer volume in the US at the
end of 2019 was about 82.5 million nine-liter cases
- which is already larger by volume than the leading
spirits category in the US – vodka – with forecasts
that by 2023, the category will more than triple, to
reach over 281 million cases.
The report adds that hard seltzer and other
“seltzer-like” products commanded a market share of
2.6% of all beverage alcohol in the US, up from only
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0.85% at the end of 2018, with ecommerce sales of
the category set to increase from 0.8% to nearly 2%
by 2023 as more consumers realize they can purchase
these products online.
The category includes malt-based products and
those produced from wine and spirits. Seltzer-like
products, with similar product attributes as leading
malt-based brands, add another 7m cases to the total
seltzer universe in the US.
“Hard seltzers are far from a fad, they’re growing
at a spectacular rate, and increasingly, hard seltzer
producers are pulling consumers from other beverage
alcohol categories, not just beer. Combined, hard
seltzers and other canned seltzer-like products
(vodka soda, as an example) will drive the total readyto-drink category, making it the fastest-growing
beverage alcohol category in the US over the next five
years,” says Brandy Rand, COO of the Americas at
IWSR Drinks Market Analysis.
A consumer opinion and attitude study done
by IWSR about hard seltzers found that over half
(55%) of US alcohol consumers surveyed drink them
regularly, at least once a week, and while hard seltzers
appeal to younger generations of consumers, the
category spans all ages and demographics, reaching
a broader segment of the population. Consumers
cited ‘refreshment’ as the top hard seltzer attribute
that appeals to them.
“The rise of hard seltzers shows there was a
segment of consumers underserved by the current
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
35
BEVERAGE TRENDS | HARD SELTZER
beverage alcohol market who were looking for
alternatives that were refreshing and flavorful, but
also low-calorie and low-sugar,” adds Rand. “These
products also meet the growing consumer demand
for convenience, and appeal to people that enjoy
popular cocktails like the vodka soda, and wine
spritzers. We definitely expect to see more brands
taking advantage of this fast-growing trend.”
Research suggests drinkers are still picking their
way through the segment, and opportunities exist for
brands outside of the category leaders to grow, says
Danielle Rappoport, marketing director of ciders,
Mexican imports and flavored malt beverages at
MillerCoors, adding that the new category is taking
advantage of consumers’ preference for flavour
exploration.
Consumers jump into the craze
According to Mintel, although many beer drinkers are
reducing their alcohol consumption entirely, some
are trading beer for drinks they perceived as more
healthful than beer. Hard seltzers are a small but
rapidly growing segment of the alcohol market due
to health-conscious consumers latching onto these
low-carb, low-calorie, easy-drinking flavored malt
beverages. Younger adults are particularly trading
beer for hard seltzers, with those aged 25-34 twice
as likely to drink hard seltzers, according to Mintel
research on ready to-drink beverages.
Molson Coors reveals that the rise of hard seltzers
follows the rapid growth of the non-alcohol variety
led by the rise of sparkling water brand LaCroix, and
comes as more drinkers are gravitating toward light,
lower-calorie alcohol beverages, typically with subtle
fruit flavors. It also adds that it follows the explosion
of Tito’s Vodka, which grabbed a group of healthconscious drinkers with its “hand-crafted” neutral
spirit that undercut the industry with lower prices.
Kate Bernot, managing editor of The Takeout, a
food-and-beverage focused publication says that
hard seltzers offer a similar proposition with an added
benefit: the convenience of being packaged in a can.
“Just lower-calorie doesn’t explain why it’s popular.
It’s not just fruit flavors. It’s not just the popularity
of sparkling water. It’s not just that they’ve created
lifestyle brands that are all about having fun. It’s all of
them happening at the same time. If you combine all
of those (attributes) in 2019, somehow it all makes
sense.”
Big beer joins the queue
The leading companies that have defined the category
have so far been small players in the US brewing
sector. White Claw, the leading brand in the category
with a 50% market share is owned by Mark Anthony
Group, a private company that also makes Mike's
Hard Lemonade. The second biggest brand Truly is
owned by the Boston Brewing Company, the number
36 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
two craft brewery in the US.
As the hard seltzer converts beer, wine and spirits
drinkers to its side, the category has become a hot
item for some of the world’s largest brewers who
are jumping into the queue to quench the thirst of
drinkers who have been swept off their feet with the
new craze.
AB InBev may be the king of beers, but recent surge
in craft beer and a preference for more wine and spirits
in the US, amid changing consumer preferences have
dealt the beer leader significant blows. However, the
phenomenal growth of the hard seltzer segment has
provided an opportunity for the company to take a
slice early on, before the market becomes saturated
by announcing a US$100 million investment drive to
introduce its ‘beyond beer’ categories, of which the
hard seltzer line is a key area of focus. The company
has early this year introduced its Bud Light Seltzer
brand on top of its earlier brands Bon & Viv and Natty
Light.
“Our overall investment in innovation next year
will grow by 20% in the U.S. Just behind seltzers we
will be investing more than US$100 million. We really
want to make this category fly,” the company’s US
business CEO Michel Doukeris told CNBC, adding
that the financial infusion fits perfectly within AB
InBev’s forward-looking growth strategy in the U.S.
“The market is ever-changing; consumers are always
evolving. Change is an unbelievable opportunity for
companies that embrace it. If we continue to take care
of our own brands and add an innovation capability,
where we understand what consumers want, then
we can have the best of two worlds. It’s not a choice
between established brands and innovation. The
combination will make the company stronger.”
Other beer giants have also joined the game.
Molson Coors, the Canadian beer giant has recently
launched its Vizzy Hard Seltzer, the first hard seltzer
made with antioxidant vitamin C from acerola
superfruit in four flavors: pineapple mango, black
cherry lime, blueberry pomegranate and strawberry
kiwi. Each 340 ml can serving containing 100 calories,
1 gram of sugar and 5% alcohol by volume.
“The thing we have seen consistently with this
category is that all of the big hard seltzers are following
the same playbook: same flavors, low calorie count,
low sugar,” says Elizabeth Hitch, director of hard
seltzers for Molson Coors. “When we created Vizzy,
we knew we needed to come to the segment with a
distinct point of difference that consumers actually
care about, and antioxidant vitamin C consistently
rose to the top.” The company also has Henry’s Hard
Sparkling Water in its product portfolio.
Diageo, the UK based spirits major has also joined
the craze, introducing its Smirnoff Spiked brand, while
Constellation Brands Inc. plans to bring its Corona
Seltzer to market in 2020. FBA
FOODBUSINESSAFRICA.COM
C E R E A L S | P U L S E S | T U B E R S | O I L S E E D S | C O F F E E | M I L L I N G | PA S TA | B A K I N G | S N A C K S | F E E D S
Fortification of industrially milled cereal grains
By Milan Shah
A
s supplier of cerealbased foods products,
flour millers have a
responsibility to help
feeding the world in
healthy and enriched
ways. In addition, they can have
a role in prevention of chronic
diseases such as iron deficiency
anemia and birth defects. globally
only 82 countries have legislation
to mandate fortification of at
least one industrially milled
cereal grain while there are about
195 countries in the world today.
In addition, eight countries
fortify more than half of their
industrially milled wheat flour
through voluntary efforts and these
countries include Afghanistan,
Democratic Republic of Congo,
Gambia, Lesotho, Namibia, Qatar,
Swaziland, and the United Arab
Emirates. Most of these countries
mandate fortification of wheat
and maize flour with at least iron
and folic acid. Very recently, The
National Fortification Alliance of
Pakistan, NFA is partnering with
the United Nations World Food
Program, WFP and the government
of Australia to launch a pilot
project to fight malnutrition by
fortifying wheat flour in Islamabad
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and Rawalpindi.
According to World Health
Organization,
WHO
and
Centers for Disease Control and
Prevention, CDC; Iron deficiency
anemia is the most widespread
nutritional deficiency in the world
and has importance consequences
for child development and
enormous
economic
costs.
Likewise, according to WHO, CDC
and International Clearinghouse
for Birth Defects Surveillance
and Research, ICBDSR; Neural
tube defects are among the most
common structural congenital
anomalies worldwide, with an
estimated 300,000 cases per year
and contribute to 10% of deaths
during the first 28 days of life.
Obviously, the best way
of
preventing
micronutrient
malnutrition
is
to
ensure
consumption of a balanced diet
that is adequate in every nutrient.
Unfortunately, this is far from
being achievable everywhere
since it requires universal
access to adequate food and
appropriate dietary habits. From
this standpoint, food fortification
has the dual advantage of being
able to deliver nutrients to large
segments of the population
without requiring radical changes
in food consumption patterns.
Definition of Food Fortification
and Flour Fortification
There always has been a
confusion between enrichment
and fortification terms and
most of the times, they are
used interchangeably. Pyler and
Gorton describes “enrichment”
as the practice of adding back
vitamins and minerals lost during
processing while “fortification” as
supplementation with nutrients
not previously present in the food
or not naturally occurring at such
high levels. They also indicated
that enrichment describes the
addition of the B vitamins and iron
to flour because losses in these
materials range from 60 to 80% in
flours with an extraction rate of 70
to 75%.
WHO/FAO
defines
food
fortification as “the addition of
one or more essential nutrients
to a food, whether or not it is
normally contained in the food,
for the purpose of preventing
or correcting a demonstrated
deficiency of one or more nutrients
in the general population or
specific population groups.” This
process usually takes place during
the processing of staple foods at
a central level so that it reaches a
considerable proportion of the atrisk populations without requiring
their active participation.
Flour Fortification adds nutrients
to flour to help people thrive
throughout their lives.
Food fortification is one of the
leading public health interventions
recommended to prevent and
control micronutrient deficiencies.
Staple foods and condiments are
among the foods most commonly
fortified with vitamins and
minerals. Wheat flour was the first
cereal grain product to be widely
fortified, and the first cereal grain
recommendations issued by the
WHO pertained to maize and
wheat flour.
Fortification of industrially
processed
flour,
when
appropriately implemented, is an
efficient, simple and inexpensive
strategy for supplying vitamins
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
37
MILLING TRENDS | FORTIFICATION
and minerals to the diets of large
segments of the population.
Adding iron to flour during the
milling process helps reduce the
risk of iron-deficiency anemia
since it is caused by iron deficiency
and wheat flour is the staple most
commonly fortified with iron in
large-scale fortification programs.
The mandatory fortification of
wheat flour with iron significantly
furthered the reduction in
the prevalence of inadequate
intake, except among women of
reproductive age, and changed the
main contributors to this nutrient in
the studied population. Therefore,
monitoring of iron addition in flour
is essential to assess compliance
to the fortified flour policy and to
guarantee a safe iron intake for all
the population.
Iron, zinc, folic Acid (B9),
thiamine (B1), riboflavin (B2),
niacin (B3), B12, vitamin A and
vitamin D are minerals and
vitamins commonly used in flour
fortification. The most common
practice is to add multiple
vitamins and minerals using a
single ingredient called a premix
and premix includes: fortificants
(powdered vitamins and minerals),
excipients
(carriers,
fillers),
and free-flow agent. Premix
manufacturers usually include
nutrients at levels approximately
2% to 5% higher than listed on the
label. This accounts for potential
nutrient loss and ensures that the
premix meets the label claims.
During fortification process in
the mill, use of micro dosing and
proper mixing mechanism are
important for correct amount and
uniform distribution of fortification
agents in flour.
The most common way to
38 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
fortify flour is to use the equipment
called feeder or in practice a micro
doser machine, which is used at
flour blending stage just before
packaging operation. This adds
premix to flour precisely at predetermined rates in the process of
flour production.
The micro doser device is
easily reachable that it is supplied
by Alapala, Henry Simon and
other leading milling equipment
manufacturers. Three types of
feeders are available: screw,
revolving disk and drum or roller.
Mills generally need one feeder
per for each type of flour or meal
line to be fortified, and the size
and number of feeders needed
depends on the amount of flour
produced per hour. The operating
principle of micro doser unit is
basically pre-mixing of product
and ingredients with a steel palette
mixer, then adding into flour
sensitively in gram levels with a
discharge mechanism. The unit is
also an electronically controlled
for a sensitive adjustment of
feeding speed and amount etc.
according to the process.
Example of Global Grain Fortification
Progress: Africa Case
In Africa, 26 countries have
mandates to fortify wheat flour.
Nine of these countries also
require fortification of maize flour.
Six countries in this region fortify
more than half of their industrially
milled wheat flour even though it
is not mandatory. In early 2011, FFI
conducted an exhaustive analysis
of flour fortification opportunities
in Africa and found that seven
countries were fortifying at least
75% of their industrially milled
wheat flour. FFI believes that
currently 19 countries are fortifying
at least 75% of their industrially
milled wheat flour with at least
iron and folic acid at levels that are
expected to make a health impact.
In Africa, South Africa and Nigeria
were the first two countries to
fortify flour.
preventive food-based approach
to improve micronutrient status
of populations over time that
can be integrated with other
interventions in the efforts to
reduce vitamin and mineral
deficiencies when identified as
public health problems. Wheat
flour fortification programs could
be expected to be most effective
in achieving a public health impact
if mandated at the national level
and can help achieve international
public health goals.
Decisions about which nutrients
to add and the appropriate
amounts to add to fortify flour
should be based on a series of
factors including the nutritional
needs and deficiencies of the
population; the usual consumption
profile of “fortifiable” flour (i.e.
the total estimated amount of
flour milled by industrial roller
mills, produced domestically or
imported, which could in principle
be fortified); sensory and physical
effect of micro ingredients on flour
and flour products; fortification of
other food varieties; population
consumption of vitamin and
mineral supplements; and costs.
Flour fortification programs
should include appropriate Quality
Assurance and Quality Control
(QA/QC) programs at mills as well
as regulatory and public health
monitoring of the nutrient content
of fortified foods and assessment
of the nutritional/health impacts
of the fortification strategies. In
addition, those requirements, to
have a sustainable and successful
flour fortification program, local
culture and multi-sector national
fortification alliance are also
utmost importance.
In conclusion, as flour millers
we have a responsibility of to
feed billions of people throughout
the world, not only satiate them
but also make healthier. Fortified
foods have health and nutrition
value added so it will increase the
competitiveness of the industry.
Future Strategies
Wheat flour fortification is a Milan Shah is the Technical Director at Alapala
FOODBUSINESSAFRICA.COM
Edible nuts: Nutty nutrition with abundant benefits
to human health
N
uts have been part of
the human diet since
Palaeolithic
times
and there has been
increasing interest in
their consumption due
to the associated health benefits
and outcomes. They are nutrient
dense foods with each having a
unique composition.
Botanically, tree nuts are dry
fruits with one seed in which
the ovary wall becomes hard
at maturity. The most popular
edible tree nuts include almonds,
Brazil nuts, cashews, hazelnuts,
macadamias, pecans, pine nuts,
pistachios and walnuts. Ground
nuts, commonly known as
peanuts, are actually legumes
but are identified as part of the
nuts food group as they share
similar nutrient profile with tree
nuts. On the other hand, although
chestnuts are botanically tree
nuts, they differ from other nuts
because they are starchy and have
a different micronutrient profile.
One other commonly asked
question while classifying nuts is
whether coconuts are a nuts or
not. Botanically speaking they
are not nuts but a one-seeded
drupe. A drupe such as an olive,
almond, or apricot is a fruit with a
central stone containing the seed
and has three layers: the exocarp,
mesocarp, and endocarp. Even if
coconuts and nuts seem to have a
hard shell and a seed, true nuts are
indehiscent, that is, they don’t split
open to release their seeds when
ripe. In the case of a coconut, the
seed germinates and then sprouts
from the end of the shell, which
eventually splits (dehisces).
FOODBUSINESSAFRICA.COM
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
39
NUTRITION & HEALTH | NUTS
Nutrients packed offering
Nuts are consumed either as snacks or part of a meal.
They are eaten whole (fresh or roasted), in spreads
(peanut butter, almond paste) or hidden (e.g.
commercial products, mixed dishes, sauces, baked
goods, and oils). In whatever form you can enjoy your
nuts to bring texture, crunch, and flavour to so many
of your favourite cookies, pastas, salads, pestos, and
even fish, chicken, and beef recipes. Combined with
honey, sugar, maple syrup or chocolate, these savoury
nuggets become sweet while retaining their bite and
base flavours. The extraction of oil content in nuts
is presented as an interesting alternative due to its
high lipid content, such as almonds (53%), pistachios
(50%), and walnuts (65%). This oil can be used in
food and cosmetics industry, which would add value
to them.
More than just nutrition
In terms of their nutritional composition, nuts are
well known for their generous contents of healthy
monounsaturated (MUFA) and polyunsaturated
(PUFA) fatty acid profiles. They are also famous for
having high quality proteins, soluble and insoluble
fibers, vitamins E and K, foliate, thiamine, minerals
such as magnesium, copper, potassium and selenium
and substances such as xanthophyll carotenoids,
antioxidants, and phytosterols compounds, with
recognized benefits to human health.
As important sources of food however, it is their
especially high content of MUFA and PUFA, linoleic
and alpha-linolenic fatty acids that adds the extra
punch to their contribution to human health. These
fatty acids have various exceedingly important
functions in the human being, from improving the
development and proper function of the brain, plus
extra benefits on inflammation, immunity and mental
health.
Prior reviews and epidemiological/clinical trials
have suggested that regular nut consumption has
beneficial impact on health outcomes, such as obesity,
40 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
hypertension, diabetes mellitus, and cardiovascular
diseases with reduction in mediators of chronic
diseases such as oxidative stress, inflammation,
visceral adiposity, hyperglycaemia, insulin resistance,
endothelial dysfunction and metabolic syndrome.
Due to the increasingly demonstrated health
benefits, nuts are currently considered fundamental
to several dietary guidelines worldwide. In 2003, a
qualified health claim (QHC) was approved by the
FDA for nuts and cardiovascular disease, which read,
“Scientific evidence suggests but does not prove that
eating 1.5 ounces (42 g) per day of most nuts, as part
of a diet low in saturated fat and cholesterol, may
reduce the risk of heart disease.”
Trends in global production and consumption
According to the International nuts and dried foods
statistical year book, global tree nut production has
kept growing at a steady pace over the last decade,
reaching around 4.6 million metric tons in the
2019/2020 season. Almond and walnut were the top
produced crops, accounting for 31% and 21% of the
world share respectively, followed by cashews (17%),
pistachios (14%) and hazelnuts (12%). The remaining
5% was distributed among pecans, macadamias,
Brazil nuts and pine nuts.
With 38% of share in 2018/2019, the USA kept
leading world tree nut production with almonds
accounting 62% of the share, pistachios (19%) and
walnuts (15%). Turkey produced 11% of the world
tree nut crops. Hazelnuts accounted for 78% of
Turkish tree nut production, followed by pistachios
(17%). The third biggest producing country was
China, which added up to 10% of the world share.
Walnuts amounted to 96% of the country’s tree nut
production. Iran, India and Cote d’Ivoire accounted for
the following 6%, 4% and 3% of the global production
respectively. Iran stood for its pistachio production
while India and Cote d’Ivoire for their cashew crops.
World peanut production reached over 41 million
metric tons in the season under review which was 3%
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down from the previous season.
But this was 7% above the prior
10-year average reflecting the
total production growing trend
observed over the last decade. The
average growth rate for this period
was estimated at over 1.1 million
metric tons/year. China accounted
for 38% of the world peanut crop,
followed by India with 15%. The
next 20% was produced by Nigeria
(8%), the USA (6%), Senegal
(3%) and Argentina (3%).
In terms of the 2019/2020
production by region, North
America was the biggest tree nut
producer worldwide accounting for
40%, followed by the Middle East
(18% of global volume), whose
production consisted of mainly
hazelnuts (50% of the region
share) and pistachios (37%). In
Asia, tree nut production was
dominated by walnuts (56%) and
cashews (36%), while cashews
amounted to 88% of the African
crop. As for peanuts, 70% of world
production was concentrated in
Asia (mostly China with 67% of
the region share and India with
27%).
Consumption wise, almonds
and walnuts accounted for half
of the total tree nut estimated
consumption worldwide in 2018
(30% and 20% of the world share,
respectively), followed by cashews
and pistachios with 16% each one.
After Europe, which was the chief
consumer, North America and
Asia were the second and third
biggest consuming regions with
similar shares.
FAT AND FATTY ACID PROFILE OF COMMON NUTS
Total Fat Saturated
fatty acid
Monounsaturated
fatty acid
Poly-unsaturated Linoleic
fatty acid
acid
Alphalinolenic acid
Almonds
50.6
3.9
32.2
12.2
12.2
0
Brazil nuts
66.4
15.1
24.5
20.6
20.5
0
Cashew nuts
46.4
9.2
27.3
7.8
7.7
0.15
Hazel nuts
Macadamia
Pea nuts
60.8
4.5
45.7
7.9
7.8
0.09
75.8
12.1
58.9
1.5
1.3
0.21
49.2
6.8
24.4
15.6
15.6
0
Pecan nuts
72
6.2
40.8
21.6
20.6
1
Pine nuts
68.4
4.9
18.8
34.1
33.2
0.16
Pistachio nuts
44.4
5.4
23.3
13.5
13.2
0.25
Walnuts
65.2
6.1
8.9
47.8
38.1
9.08
Africa. India imported 993,021
MT of Cashew nuts mainly from
Western Africa (78%) and Eastern
Africa (10%) to be processed
therein.
Likewise,
Vietnam
imported 522,198 MT, from which
87% came from Western Africa.
Global macadamia production
keeps increasing year on year.
The 2019 total crops amounted
to over 60,000 metric tons with
South Africa leading the world’s
production accounting for 29%
of the world share. Malawi and
Kenya accounted for 12% and 2%
production share respectively.
The USA accounted for almost
half (47%) of the South African
overseas shipments, followed
by the European Union (33%).
Other than macadamia, South
African production of pecans
keeps growing at a steady pace
as new plantings begin to bear
nuts. In 2019/20 the crop was
increased by 5% compared with
the previous season and doubled
up from the prior 10 years average.
Africa’s position in the US$88.94bn South Africa, Australia, and Brazil
accounted for 10% of the world’s
market
Some of the notable statistics production of pecans.
With the world peanut
in regards to nuts production in
production
slightly
down
Africa according to the report
compared
to
the
previous
season,
are, cashews amounted to 88%
of the African crop during the African producing regions such
2019/2020 season. Cote d’Ivoire as Nigeria and Senegal also
remains as the biggest producing registered a decline of between
country from Western Africa with 21% and 24%.
World nut production continues
its crop amounting to 136,000 MT,
to
rise year on year. The global
followed by Ghana (65,340 MT).
edible
nuts market accounted for
Estimated at 55,000 MT, Tanzania
US$
88.94
billion in 2018 and is
led the production in Eastern
expected to reach around US$
FOODBUSINESSAFRICA.COM
92.1 billion by 2026, at a CAGR of
around 3.5% between 2019 and
2026. The market is likely to grow
notably in the years ahead, owing
to their growing use in the global
food industry worldwide due to
their high nutritional value. Bakery
and confectionary and breakfast
cereals are the major products
that use edible nuts.
Some key players operating in
the edible nuts market globally
include Diamond Foods, Olam
International, Waterford Nut,
Farm Breeze International, Just
Almonds, Blue Diamond Growers,
Mariani Nut, Select Harvests,
Global Nut and Archer Daniels. FBA
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
41
NUTRITION & HEALTH | PULSES
10 reasons why you should include pulses in
your diet
I
n many cultures, pulses are considered as ‘protein
for the poor’ and their high nutrient content
makes them ideal for vegetarians and vegans to
ensure adequate intakes of protein, minerals and
vitamins.
We see them at the grocery store, the farmer’s
market and as side orders served with our favourite
dish. In many countries, they are part of the cultural
heritage and are consumed on a regular or even daily
basis. In other parts of the world, they hardly garner
a mention except when served in a soup on a cold
winter’s day.
However, these tiny, multi-coloured seeds have
been one of nature’s nutritious foods since time
began. Here is why:
1. Pulses are naturally low in fat and contain no
cholesterol, which can contribute to reducing the
risk of cardiovascular diseases.
2. Pulses are also low in sodium. Sodium chloride or salt - is a contributor to hypertension and can
be avoided by consuming foods with lower sodium
levels such as pulses.
3. They are a great source of plant-based protein.
Surprisingly, 100 grams of dry lentils contain a
remarkable 25 grams of protein! During cooking,
pulses absorb considerable amounts of water thus
reducing their protein content to around 8 percent.
Yet, you can still increase the protein quality of
cooked pulses by simply combining them with
cereals in your meal, for example, lentils with rice.
4. Pulses are a good source of iron. Iron deficiency
is considered one of the most prevalent forms of
42 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
malnutrition and is one of the most common types
of anaemia. To help optimize the absorption of
iron in our bodies from pulses, combine them with
foods containing vitamin C (lemon juice on lentil
curry for example).
5. Pulses are high in potassium, which supports heart
health and plays an important role for digestive
and muscular functions.
6. Pulses are often quoted among the top high fibre
foods, necessary for supporting digestive health
and helping to reduce the risks of cardiovascular
diseases.
7. Pulses are an excellent source of folate – a
B-vitamin naturally present in many foods – that
is essential to the nervous system function and
especially important during pregnancy to prevent
foetal defects.
8. Pulses can be stored for a long time and therefore
can help to increase the diversity of diets, especially
in developing countries.
9. Pulses are low glycaemic index foods. They help
to stabilize blood sugar and insulin levels, making
them suitable for people with diabetes and ideal
for weight management.
10.
Finally, pulses are naturally gluten-free. This
makes them an ideal option for coeliacs.
The United Nations declared 10 February World
Pulses Day, keeping alive the positive momentum
surrounding these healthy, nutritious and proteinrich legumes after FAO's successful International
Year of Pulses Campaign in 2016. FBA
Source: FAO
FOODBUSINESSAFRICA.COM
COVER STORY
INNOVATION CENTRE TO NURTURE
UGANDA’S NEXT FOOD ENTREPRENEURS
Makerere University’s Food Technology and Business Incubation Center
(FTBIC) provides the platform to improve value addition of Uganda’s
agricultural produce. The Food Business Africa team set out to Kampala,
Uganda to have a chat with Professor William Kyamuhangire, the Manager of
the Centre to hear about its beginning, growth and future plans.
By Ronald Onsare
I
n a continent heavily reliant on foreign investment
and technologies, and for a long time, that has
shipped its commodities in the raw form to the rest
of the world, Uganda is a country bulging with an
abundance of agricultural produce that has long
been sold in its raw form internally and externally
yet the need for innovations on value addition,
financial and institutional support is glaringly stark to
turn around this potential into locally produced goods
through sound and competitive investments.
The government of Uganda has in the last decade
encouraged, promoted and supported business
incubation centers with the aim of stimulating local
innovations, technologies and investments. One of
the country’s standout incubation centers is found at
Makerere University.
The Makerere University’s Food Technology and
Business Incubation Center (FTBIC) is the leading
agro-processing incubation center in the country and
prides itself in having built the capacity of graduates,
the youth, women and even ordinary farmers in rural
Uganda over the years.
FOODBUSINESSAFRICA.COM
The Center has set the pace, from being the brain
child of a university department to attracting full
government support and stirring the President to let
out a clarion call to all universities in the country to
set up incubation centers in their stables.
The Incubation Centre is home to hundreds
of incubatees and employees of the various
enterprises trained in market-responsive standards
in agribusiness, producing well packaged, valueadded foods which are displayed at the Food Parlour
at Makerere University and marketed to all major
supermarkets and agribusiness outlets on the market,
where the brands have gained high-level demand
from buyers in the country.
Nascent beginning
‘‘To nurture and sustain food and allied businesses
especially among women and young graduates by
providing innovative research, practical solutions,
linkages, entrepreneurship development and
outreach leading to wealth creation and nutrition
enhancement.’’ This is the mission statement of
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
43
COVER STORY | FTBIC
One of the incubatees labels yoghurt for delivery to the market
the FTBIC, which is housed at
the School of Food Technology,
Nutrition and Bioengineering
(STFNB) and prides itself in
nurturing business start-ups
on food value addition, food
processing as well as catering.
While Makerere University,
sitting on one of Kampala’s original
seven summits, is the oldest and
arguably the most prestigious
universities in East Africa, the
STFNB equally scored a first by
being resident to this premier
incubation center of its kind in the
region.
“The Center began from the
point of view that the University
had been blamed for a long time for
producing theoretical graduates,”
begins
Professor
William
Kyamuhangire, who manages the
centre, in retrospect, adding that
they were increasingly concerned
about that blame.
“We began the incubation
center purposely to translate from
rolling out theoretical graduates
to practical graduates; graduates
who can go out there and create
44 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
their own employment. Secondly,
to translate the research findings
from our academic work into
actual products themselves. The
other reason was to serve the
wider community.”
Riding on this conviction the
“WE BEGAN THE INCUBATION
CENTER TO TRANSLATE FROM
ROLLING OUT THEORETICAL
GRADUATES TO PRACTICAL
GRADUATES, TO TRANSLATE THE
RESEARCH FINDINGS FROM OUR
ACADEMIC WORK INTO ACTUAL
PRODUCTS THEMSELVES AND TO
SERVE THE WIDER COMMUNITY"
University is no longer a university
for the sake of it; it’s a university
that is serving the public. Through
the initiative, the Professor tells
us, they can go out and work with
the community to set-up food
facilities in line with the right food
processing and value addition
essentials. Those were the
cardinal issues they had envisaged
to address in setting up the center.
The Center was started by the
Makerere University team that
planned and created the space
on their own. However, around
2009 an appeal to government for
partnership passed through with
a ministerial visit. Consequently,
the initiative caught the attention
of President Yoweri Museveni’s
ear, who in turn visited the nascent
center personally.
“We were able to present our
proposal to him; for the support
and equipping of the center. He
took it wholesale and indeed from
2009 to date, this is a project that
is directly and fully funded by
the Government,” Kyamuhangire
beams.
Citing examples such as
the Kiira EV (a vehicle design
project) and a variety of quality
products produced under the
FTBIC, he added that Makerere
University had earned the trust
of Government that has provided
funds. He expressed hope that
the progress would encourage
Government to allocate further
funds for requisite expansions to
meet the ever-growing demand.
To go by the Professor’s insights,
the Center’s results have been
tremendous. When they began,
they were the darling of every
exhibition, but this has changed
with time. The technologies and
products that they exhibited then
have been taken up by the small
and medium industries and they
are churning them out the same
way the FTBIC did and are doing.
“When we go for exhibitions
there are so many other people
alongside us. This incubation
concept has caught on in such
a manner that the Government
directed that all universities setup incubation centers. Within
Makerere University, we were the
first to set an incubation center.
This has been positive to the
university, positive for us and it has
moved on. If you look at the number
of people we have nurtured, many
have come out and set up their own
industries, including farmers. So,
the issue of community challenges
have been addressed,” elaborates
Kyamuhangire, an indicator that
FOODBUSINESSAFRICA.COM
WE KEEP THE INCUBATEES LONGER THAN
WOULD BE REQUIRED BECAUSE OF EXISTENCE
OF LACK INFRASTRUCTURE OF A SIMILAR KIND
OUTSIDE THE INCUBATION CENTRE IN UGANDA.
THE INCUBATEES ALSO LACK FINANCING TO
SOURCE THE STATE-OF-THE-ART EQUIPMENT
THAT THEY UTILISE AT THE CENTRE.
Prof. William Kyamuhangire in his office during the interview
the University has been demystified; that it’s not
only for academic work but also for development of
society.
“When you see a farmer coming from the grass
roots to our Center and going back to set up a business
or industry back home, then the University is playing
its developmental role alongside that of Government.
In that same process the Government realized that
the University is a partner as opposed to being an
academic island,” he adds.
More than an Incubator
The FTBIC is arguably, in terms of capacity, the best
equipped incubation center in the East Africa and
Central Africa region.
It has five processing lines: meat, fruit and
vegetables, dairy, bakery and extrusion lines, with
capability to process various products in these
areas. The Center has also acquired a mobile fruit
and vegetable processing plant which is capable of
processing the produce at the farm level, thereby
is reaching out to the people who need its services
in that respect in the remotest of locations. This
has facilitated processing of fruits and vegetables
within the production areas right next to the farms,
reducing substantially the vast post-harvest loss that
permeates the sector.
Using the abundantly available local raw materials
and adopted technologies, the Incubator facilitates
value addition in food processing as well as supporting
analytical activities to assess the quality of food
products.
With this wide array of modern food processing
equipment, the FTBIC focuses on developing worldclass products from local raw materials and to
contribute to the overall food industry development,
the Center provides technical support to existing food
processing SMEs and conducts hands-on training to
prospective entrepreneurs.
It has also trained over 500 youth and women
in the areas of fruit and vegetable processing, dairy
FOODBUSINESSAFRICA.COM
processing, cereal processing and entrepreneurship
in Uganda. Many of those trained have created or
improved their enterprises.
The processing units have been consistently
equipped and revamped to a level that most food
processing operations can be carried out in-house
with regard to meat processing, dairy processing,
fruit and vegetable processing, extrusion technology,
confectionery and bread processing, he reveals.
Overwhelmed by demand
However, the facility’s capacity is constrained by
the ever-increasing number of groups and people
seeking services there. “We can only host as much
at a given time,” laments Kyamuhangire. “Another
niggling drawback is that those who complete the
incubation and nurturing process have nowhere to
go to set-up their hatched ventures. Whereas it has
been successful, it has created a new problem of
people not having a place to launch their businesses.”
So, what creates this bottleneck in transitioning
from the center to the next level? “We keep them
a little bit longer than would be required. What is
necessary for them to move out are two or three
things. One, is the existence of infrastructure of a
similar kind. Food processing is not done in a home.
You have to play within the stipulated standards
for a food processing premise to have the premise
approved by the authorities as well. Food processing
has to be done in a purpose-built facility. It’s not like
repairing a car that can be done from anywhere,
provided one is skilled.
“Two, is financing. Whereas, here we have stateof-the-art equipment on our processing lines that
produce products that can compete with any other
product in the market, the incubatees may not have
the financial muscle to replicate that outside the
Centre. We need venture capital funds to support
this. Thirdly, we need institutional support. The
incubatees need to be assisted to settle in the new
environment outside the center, in the real world of
business. When they leave here, the task is different
for, they have to scale up, they will meet competition
in the market out there. So, how do they position
themselves on that path to success?” Kyamuhangire
weighs in, as he breaks down the challenges post the
incubation process.
Nonetheless, with the ballooning number of
incubatees, including those on the queue, the Centre
has endeavored to coordinate specific groups to fully
benefit from the its services. Normally it has around
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
45
COVER STORY | FTBIC
IN NUMBERS
3,000 SQ. METRES
SIZE OF THE CENTER AFTER THE
ADDITION OF TWO NEW BUILDINGS
20 incubatee groups, with four groups working at a
given time. While the Center is open for business day
and night, even with this arrangement, each group is
allowed a maximum of two days in a week. With this
approach the Center has been able to accommodate
more people.
Our team is taken through the processes at the Incubation Centre
The Centre's shop has a number of products on sale to customers
The baking unit is busy churning out bread, scones and more
46 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
R&D with market penetration
The FTBIC carries out Technology and Food Product
Development and value-addition, riding on the
research conducted at Makerere University.
Buoyed by the wide array of modern food
processing equipment, the FTBIC continues to focus
on developing world class products from locally
abundant raw materials. It has nurtured Enterprise
Development and Outreach Young graduates’ ideas
that have translated and transformed them into
businesses that are delivering products. The products
have reached most upscale market outlets with a
number of them have graduated from the Incubator
to go and set up their own businesses outside.
He informs us that the project has led to creation
of more than 100 direct jobs in production and
marketing of value-added foods and has created
jobs for over 500 raw material suppliers, with these
numbers growing steadily.
According to Prof. Kyamuhangire, who is also
teaches at the School, the products are developed
by start-up enterprises nurtured by the FTBIC with a
unique product range including traditional products
that are produced through the value addition
processes carried out by the incubatees. The
production of nutritious, safe and quality products
such as the energy biscuits, Ntalike smoked beef,
obushera, omulondo liqueur, ntuntunu and ensenene,
among others, highlights the destination of Uganda’s
budding agricultural industrialization to which
Makerere University has a major contribution.
Success story
One such success story out of the Incubator is
Smart Foods Limited, a firm that started in the Food
Technology Laboratories of Makerere University.
Its backdrop was a result of exciting lab work on
transforming whole soybeans into tofu that is
acceptable to the African taste.
The company’s CEO, Martin Ssali, had precociously
ventured into the novel theory of soybean, on the way,
ingeniously perfecting the art of tofu making over time
while still a student at the University. Started in 2008,
FOODBUSINESSAFRICA.COM
One of the incubatees is busy cutting and portioning meat for further processing
a year before the Government
came fully on board for the Center,
the company’s products are found
in leading retailers that include
Capital Shoppers, Tuskys, Quality
Supermarket, Italian Embassy,
Jazz Supermarket among other
outlets, just to underline the effect
the Incubator has had.
“The idea hatched when I
was in the third-year of my Food
Technology course. We had been
encouraged to come up with
new ideas that could move the
Ugandan food processing industry
to another level,” says Martin,
a benefactor of the Mandela
Washington Fellowship. The firm
has rolled out tofu that is variedly
spiced, soy yoghurt and soy nuts.
Speaking at the inaugural
Makerere University Food Science
and Technology Career Day held in
February 2020, Dennis Kasirye, the
proprietor of Elma Foods Consults,
spoke glowing of the role the
Center had played in developing
his business. An alumnus of the
University, he passed through
the Center and now produces
pineapple juice among other
products as he prides in running
a successful business thanks to
the FTBIC. He encouraged the
graduates in-waiting to take full
advantage of the FTBIC. The
Career Day was fully sponsored
by the producers of this magazine,
FW Africa through the AFMASS
FOODBUSINESSAFRICA.COM
Food Expo program, and is part of
the mentorship program that are
held in the region by the company
to improve industry-academia
linkages.
Prospects for the future
The incubation activities have
reached an exciting time since the
Center was officially opened, with
tremendous progress on all fronts,
says Prof. Kyamuhangire.
Given the history and the
achievement the Center has made
so far one would like to probe
into what the future holds for the
Center and the agro-processing
industry in Uganda. “First and
foremost, we want to have a
sustainable incubation center. For
that matter, we are expanding the
space at the Center to deliver on
our mandate better and to take on
more incubatees.
We have a new building which
is phase 1 of its construction and
another one coming up later.
These two buildings will give us
a total working space of about
3,000 square meters that will
be adequately and appropriately
equipped. They will accommodate,
to a certain extent, comfortably
the 20 groups of incubatees on a
daily basis. Secondly, we have put
a proposal to the government to
establish a Science and Technology
Park that will have bespoke
facilities where the incubatees can
rent at subsidized rates and can
seek funding to equip and run their
enterprises,” the Professor delves
into the Center’s future prospects.
The Center had, by mid-2019,
initiated the Phase II of the FTBIC
that was valued at US$ 4.06 million
(UGX 20 billion) and had already
secured US$1.25 million (UGX5bn)
under the Presidential Initiative
on Science and Technology that
was earmarked for Phase I, apart
from the amount now required for
Phase II.
Once completed, the facility will
allocate 1,200 of the total 7,000
square meters space to the FTBIC;
a huge boost to the current 1,200
square meters achieved by Phase I,
to facilitate innovations and boost
food business entrepreneurship in
the country.
Professor
Kyamuhangire
reiterates that the University,
through the Center, has society in
mind as a whole and would like to
call upon society to be free to come
in and get the necessary skills to
add value, process food products
and take them to the market.
“FTBIC is a unit of Makerere
University that is open to all staff,
students and the greater public
with no strings or qualifications
attached. We want to move away
from selling raw commodities
from Uganda to the outside world;
the end game is in value addition,”
he quips while appealing for
partners who can take the project
to a higher level. “We are talking
of a science and technology park;
we are talking about indigenous
technologies so that we can
upgrade our traditional products
to another level like it happened
with obushera. Obushera started
here; how to process it, package
it and market it. Right now, it has
proliferated into each and every
corner of Uganda.”
However, he maintained that
applicants must present a product
with an aim of value addition, upon
which the Center will offer training
and necessary skills to allow for
effective commercialization of the
product. FBA
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
47
The emergence of the plant-based food and
beverage industry
By Clement Muriuki
F
or quite some time, the global food
and beverage industry has experienced
relatively stable conditions, with minimal
change around key product categories
sold through the various retail and
food service channels. However, the
skyrocketing demand of sustainable food options as
well as changing consumer trends has ignited a new
revolution in the food and beverage industry.
From burgers and meatballs to milk, yoghurt and
fish products, recent industry changes illustrate that
the phrase ‘plant-based’ has been a game changer in
the food industry, and more so in the meat and dairy
sectors.
Plant-based foods - simply defined as food and
beverage products entirely derived from plants
without any animal constituent - have been in the
market for decades, but until recently has the sector
been coined as the epicenter of a revolutionary and
sustainable food and beverage industry. A few years
48 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
ago, the plant-based diets were only adopted by a
handful of people popularly known as vegetarians,
and later expanded to include flexitarians. However,
this is currently not the case. Adoption of plant-based
foods has registered exponential growth in the recent
past and subsequently evolving from a niche market
to a stand-alone industry. The ever-growing need for
a sustainable ecosystem has been one of the major
drivers in the sector.
Companies across the spectrum are now investing
heavily in existing brands as well as creating new
products and brands which will appeal to the surging
consumer demand for plant-based products.
“Plant-based foods aren’t new, but what’s
happening now is it’s gone from being a niche industry
targeting mostly vegetarians and vegans, who are still
an important part of the market segment, but now it’s
grown into a mainstream industry that is targeting
everyone, and that’s really what’s causing it to explode,
combined with the innovation that’s happening,”
FOODBUSINESSAFRICA.COM
MARKET
TRENDS
affirms Michele Simon, founder and executive
director of the Plant Based Foods Association.
Fast growth and adoption
According to the Plant Based Foods Association and
The Good Food Institute, in 2018 U.S. retail sales of
plant-based foods grew 11% over the 2017 figures,
bringing the total plant-based market value to US$4.5
billion, growing faster than the total U.S. retail food
market which grew at only 2% in value, showing that
plant-based foods are a key driver of growth for the
retail industry in the country.
“Plant-based foods are a growth engine,
significantly outpacing overall grocery sales,” said
PBFA Senior Director of Retail Partnerships Julie
Emmett. “We are now at the tipping point with the
rapid expansion of plant-based foods across the
entire store, so it is critical for retailers to continue to
respond to this demand by offering more variety and
maximizing shelf space to further grow total store
sales.”
According to the study, the plant-based meat
category was worth more than US$800 million in
2018, up 10% in the past year, and accounting for 2%
of total retail packaged meat sales, led by refrigerated
plant-based meat, where sales jumped 37%, driving
the category growth.
“PLANT-BASED FOODS AREN’T NEW, BUT
WHAT’S HAPPENING NOW IS IT’S GONE FROM
BEING A NICHE INDUSTRY TARGETING MOSTLY
VEGETARIANS AND VEGANS, WHO ARE STILL
AN IMPORTANT PART OF THE MARKET SEGMENT,
BUT NOW IT’S GROWN INTO A MAINSTREAM
INDUSTRY THAT IS TARGETING EVERYONE, AND
THAT’S REALLY WHAT’S CAUSING IT TO EXPLODE,
COMBINED WITH THE INNOVATION THAT’S
HAPPENING."
MICHELE SIMON, FOUNDER AND EXECUTIVE DIRECTOR
OF THE PLANT BASED FOODS ASSOCIATION
In the plant-based segment plant-based milks;
plant-based dairy such as cheese, yoghurt, and ice
cream have seen a surge in consumer demand as
more and more consumers ditch regular milk for a
growing list of plant-based milk alternatives.
According to the report, the sales of plant-based
milk alternatives grew 6% in the year, making up 13%
of the entire milk category in the US, at a time that
cow’s milk sales declined 3%. It also adds that plantbased yogurt has grew a massive 39%, while sales of
conventional yogurt declined 3 percent; plant-based
cheese upped 19%, while conventional cheese sales
remained flat; while plant-based ice cream and frozen
novelty grew 27%, when conventional ice cream and
frozen novelty grew a paltry 1%.
FOODBUSINESSAFRICA.COM
IN NUMBERS
US$800M
RETAIL VALUE OF PLANT-BASED MEAT
CATEGORY IN THE US IN 2018.
Understanding the plant-based food industry
With growing demand comes market segregation as
players look to achieve greater margins. The plantbased food industry has not been spared from this.
Like whey and curd, the market has clearly defined
itself into a modern industry majorly comprising
of plant-based meats, dairy alternatives and plantbased meals in general.
According to research by Barclays and JPMorgan,
the alternative protein market is valued at US$19.5
billion and is expected to capture 10% of global meat
market in a few years, reaching US$100 billion in
value in 15 years.
Plant-based meat, also termed as meatless meat,
meat analogous, meat alternatives or meat aisles
is one of the major categories in the overall plantbased food. Plant-based meat products are made to
mimic properties found within natural meats and are
therefore, considered to be meat substitutes.
Alternative meat companies are working to
develop plant-based meat with the same texture and
functionality as natural meat, presenting a product
that cooks and tastes just like animal meat. The meat
analogous can hence be used as a stand-in for real
beef, pork, fish or chicken. Plant based meat is just
getting traction with consumers and food service
operators.
While there have been vegetarian meat options
for decades (Morning Star Farms launched in 1975),
there have not truly been meat-like products until the
entry of Beyond Meat (2012) and Impossible Foods
(2016).
Plant based products have been used in burgers,
meatballs, tacos, meatloaf and pretty much any other
recipe that calls for ground meat. Almost every plantbased meat has different ingredients, but they're
usually made from extracted plant protein, spices
and binding ingredients. Nutrition-wise, while they
typically are higher in sodium, plant-based meats are
similar to ‘real meat’ in terms of calories and have
more fiber and less to no cholesterol.
Alternative meat is the second biggest category by
sales in the plant-based food industry. With one-third
of consumers choosing to actively reduce their meat
consumption, the demand for plant-based innovation
is expected to grow at a rapid pace.
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
49
MARKET TRENDS | PLANT-BASED FOODS
Leading the pack in the plant-based food and
beverage industry are dairy free products, also
referred to as dairy alternatives. Plant-based dairy
free products, ranging from yoghurts, ice creams,
milk and cheeses are gaining wide popularity among
vegan population as well as consumers with lactose
intolerance condition. The products are however
providing unparalleled competition due to their
lactose free nature. Plant-based dairy products are
majorly sourced from soy, coconut, cashew, oat,
almond, pea, quinoa, flax, rice and in some cases
hemp. However, unlike plant-based meats, dairy
alternatives have a relative difference compared to
animal sourced milk especially in terms of taste. They
are also considered to have a much dense nutritional
profile compared to bovine milk.
Other emerging plant-based categories include
spreads, dips, sour cream, sauces and ingredients.
Start-ups take the pie
“There are a significant number of start-up and
disruptor companies in many geographies that are
launching new and exciting products into the market
to meet the increasing consumer base and demand
for innovative products and flavours,” observes
Deloitte in one of its recent report on plant-based
alternatives.
From big corporates to startups, the plant-based
food market has amassed greater investment
FIRMENICH SAYS IT IS PREPARED TO BE A LONGTERM PASSIVE SHAREHOLDER IN ROBERTET BUT
MAY CONSIDER TAKING A CONTROLLING STAKE
IN THE FUTURE BUT MAY CONSIDER TAKING A
CONTROLLING STAKE IN THE FUTURE FUTURE BUT
MAY CONSIDER TAKING A CONTROLLING STAKE
IN THE FUTURE
and further stoked the appetite of the investment
community boosted by the promising growth
prospects in the sector.
According to Michele Simon, founder and executive
director of the Plant Based Foods Association, plantbased food and beverage start-ups have raised more
than US$17 billion in funding in the last ten years.
Recently, Silicon Valley-based foodtech startup,
Impossible Foods raised US$500 million in a Series
F funding round, which brought the total capital that
the industry-leading plant-based food company has
raised to nearly US$1.3 billion, since it was established
in 2011. Impossible Foods said that it will use the
funds in part to invest in fundamental research and
innovation; accelerate its manufacturing scaleup;
expand its retail presence and its availability in key
international markets.
This followed a previous announcement from
global plant-based food company, Food United
that it had raised US$200million in a founders’
50 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
funding round to fuel the company’s ambitions of
becoming one of the world’s largest plant-based
food companies. Canadian plant-based foods and
beverages manufacturer, SunOpta has also secured a
financing agreement amounting to US$60 million to
support its expansion. Perfect Day, a California-based
dairy alternatives startup raised US$140 million in its
Series C Funding. Califia Farms, a Los Angeles-based
plant-based food and beverage company has also
closed its Series D financing raising US$225 million.
Last year, the US-based beef alternatives producer,
Beyond Meat was seeking to raise US$183 million in
funding, in a deal that would have valued the company
at US$1.2 billion.
Startups are warming up to brace the plant-based
revolution. This year alone, US-based Rebellyous
Foods raised US$6 million in a Series A funding round;
Alpha Foods, a New-York based maker of convenient
plant-based foods has raised US$28 million in a
Series A round; Hodo has secured an investment;
Noquo Foods, based in Sweden, raised US$3.7 million
in a seed funding round; while Australian plant-based
meat startup, v2food has raised US$35 million in
Series A funding.
Startups such as New Wave Foods, Nutriati and
Israeli Yofix Probiotics have also received capital
injections to support their expansion. A recent
FOODBUSINESSAFRICA.COM
intensive sources that are plant-based,” said Jeremy
Coller, founder of FAIRR.
The three giants were awarded top marks for their
work in understanding the impact and reducing risks
associated with intensive animal agriculture, such
as the emission of greenhouse gas; and they also
had strong sustainable sourcing programs and had
targets to reduce emissions.
The report found 87% of retailers were increasing
their own-brand plant-based products, while 64%
of the 25 firms had referred to “vegan” and “plantbased” in their annual reports.
After investing US$7 billion globally in animal
protein in the last five years, the global food and
agriculture company, Cargill has now forayed into the
alternative meat market. In February this year, Cargill
announced that it is introducing its new private
label plant-based patties and ground products.
Marfrig Global Foods, one of the world’s leading beef
producers and the world’s largest beef patty producer,
has also made a debut of its plant-based burger in the
Burger King chain in Uruguay.
Another meat giant, JBS has also announced that
its will be launching a range of plant-based foods and
further expand its Friboi portfolio. Other companies
that have joined the bandwagon include Nestle,
ADM, Conagra Brands, Unilever, Maple Leaf and
Kroger among others.
For Nestle, already the world’s largest food and
beverage company, the alternative meat industry is
invention, Impossible Foods has also launched the
Impossible Sausage and Impossible Pork, which
debuted in January 2020 to expand its plant-based
offering.
Industry titans seek a piece
However, the plant based sector has not only
attracted start-ups. Food industry titans such as
Danone, Tyson Foods, Kraft Heinz, Nestle, Unilever,
Müller and Maple Leaf have either directly invested
in new investments or brands, set up venture capital
arms to invest in emerging plant-based food brands
or sought alliances with start-ups to ensure they are
not left behind.
A new report lends credence to the big giants taking
a shot at the emerging sector. The report by the Farm
Animal Investment Risk and Return (FAIRR) coalition
revealed that 25 major retailers and manufacturers
were developing strategies for sustainable protein
products, due to the risk of a strategy reliant on
animal protein.
The study showed that Unilever, Tesco and Nestlé
are among the best prepared companies to capitalize
on the trend for plant-based meat substitutes. “Many
have now begun a journey to diversify the protein
products away from being predominantly animalbased, and towards low carbon and less resource
FOODBUSINESSAFRICA.COM
IN NUMBERS
US$12.5B
AMOUNT DAIEY COMPANY DANONE
PAID TO ACQUIRE US PLANT-BASED
MILKS PRODUCER WHITEWAVE IN 2017
of critical importance. In 2017, the company acquired
Sweet Earth, a plant-based foods manufacturer based
in California, USA, adding such products as frozen
meals, burritos, breakfast sandwiches to its portfolio.
In mid 2019, it launched a plant based burger in
Europe and plans to introduce plant based sausages
in the US and Europe.
In the dairy alternative market, Arla Foods, one
of the world’s largest dairy cooperatives based
in Denmark, announced an entry into the dairy
alternative market with the launch of new oat drinks
under a new brand called JÖRĐ. Arla says that JÖRĐ
is an umbrella brand for 100% plant-based products
and plans to expand the brand to provide an entire
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
51
MARKET TRENDS | PLANT-BASED FOODS
selection of plant-based food products. Arla joins
Danone, which has made significant advancements
in providing plant-based products.
Danone, which bought WhiteWave Foods, the
US-based leader in plant based foods and beverages
in 2017 for US$12.5 billion, recently expanded its
offering with the launch of dairy free ready-to-drink
coffee lattes, DHA Omega-3 plant-based beverages,
a new dairy-free half & half alternative and the Silk
Dairy Free Heavy Whipping Cream. Danone’s largest
acquisition ever, the deal offered the leader in dairy
products a fast way to gain significant market share
in the growing dairy alternatives market.
The future of the industry
According to a report by BIS Research, the plantbased food and beverage alternatives market is
expected to reach US$80.43 billion by 2024, rising
at a CAGR of 13.82% during the forecast period from
2019 to 2024.
The report states that the global food and beverage
industry is undergoing “unparalleled technological
disruption”, which is driven by the enormous growth
of viable plant-based alternatives. In 2019, data
released by the Plant Based Foods Association and
The Good Food Institute (GFI) shows U.S. retail
sales of plant-based foods grew by 11.4%, bringing
the total plant-based market value to US$5 billion.
Research indicates that Asia is already a leader in the
plant based food and beverage industry with Europe
following closely. Increasingly health conscious
populations, investments by food and beverage
industry giants, animal and environmental concerns
among the consumers are the factors supporting the
growth of plant-based food and beverage alternatives
products, globally.
Regulatory bottle-necks
The regulatory framework in what has been termed
as the next big thing in the food industry is on its early
stages of development. In fact, there is little to be
shown as most of the efforts have been initiated by
the companies themselves, on the back of resistance
by the leading dairy and meat companies on the way
such alternative meat and dairy products should be
labelled.
52 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
PLANT-BASED FOOD & BEVERAGES MARKET
IS EXPECTED TO RISE TO US$80.43 BILLION
BY 2024. THE INDUSTRY IS UNDERGOING
UNPARALLELED TECHNOLOGICAL DISRUPTION AS
CONSUMERS BECOME MORE HEALTH CONSCIOUS
AND ANIMAL AND ENVIRONMENTAL CONCERNS
RISE.
In December last year, the industry leader in
plant-based food advocacy, The Plant Based Foods
Association (PBFA) introduced a voluntary standard
to promote consistency in labeling across the plantbased meat category. PBFA noted that as consumers
are increasingly seeking out plant-based meat
options, the labeling standard suggests clear labeling
terms that consumers understand.
PBFA’s meat alternative standards allow for
references to the type of animal-meat (such as meat,
chicken, hamburger) and the form of the product
(such as nuggets or burger) along with a qualifier
that clearly indicates that the food is plant-based
or vegetarian. These qualifiers include: plant-based,
vegan, meatless, meat-free, vegetarian, veggie, made
from plants, and other similar phrases. In addition
to the voluntary labeling standards, PBFA says that
it is also actively engaged in policy battles to defend
its members constitutional rights to common sense
labeling.
The US Food and Drug Administration (FDA)
has also approved the use of soy leghemoglobin
as a color additive in uncooked ground beef analog
products. The approval, which was granted in August
2019, follows meat-alternative company Impossible
Foods’ 2018 petition to have the ingredient accepted
as a color additive. The additive imparts a reddishbrown color and is used by Impossible Foods to give
an optimized beefy flavor. The approval now allows
Impossible Foods to use soy leghemoglobin in its
plant-based burger and sell the products directly to
consumers, instead of cooked via restaurants.
While there are little regulations developed around
plant-based food and beverages, experts argue that
balancing consumer understanding and perception
against the laws on the books will be key in shaping
the regulatory framework in this sector. FBA
FOODBUSINESSAFRICA.COM
FORMULATIONS
Jack of all trades - Hydrocolloids & Gums show
their might in food and beverage industry
Hydrocolloids and gums provide unique taste, texture and mouthfeel to many
foods and beverages. A versatile lot, these ubiquitous ingredients appear in
all manner of products where they add unique benefits, even in some of the
most challenging conditions
E
very food and beverage
has a unique characteristic
that
determines
its
degree of excellence
and acceptability. This
measure of quality is
attributable to the type, quantity,
formulation and combination of
ingredients and additives used.
One group of food additives that
can be termed as the “Jack of all
trades and master of all” in foods
are Hydrocolloids, also referred to
as Gums.
Creating foods and beverages
with certain viscous, textural,
thickness and mouth feel qualities
is the job of hydrocolloids. In
addition to that they inhibit
crystallization, act as emulsifiers,
stabilizers,replace some food
FOODBUSINESSAFRICA.COM
components such as fats, act as
films and even extend product
shelf life.
As a food additive, hydrocolloids
can be used alone while others are
used in synergistic combinations
in a range of foods and beverages
to yield the most advantageous
results. They originate from plants,
seaweeds, microbial, insects
and crustaceans and can also be
synthetically made.
Some
of
the
notable
hydrocolloids include starch,
cellulose, hemicellulose, pectins,
exudates, mucilage, fructans,
alginates, carrageenans, agar,
xanthan, pullulan, gellan, chitin
and chitosan, among others.
Multifunctional ingredients
The
multi-functionality
of
hydrocolloids is attributed to
its molecular structure and its
behaviour in an aqueous medium.
They are a heterogeneous
group of long chain polymers
(polysaccharides and proteins)
characterised by their property of
forming viscous dispersions and/
or gels when dispersed in water.
Presence of a large number of
hydroxyl (-OH) groups markedly
increases their affinity for binding
water molecules rendering them
hydrophilic compounds. Further,
they produce a dispersion, which
is intermediate between a true
solution and a suspension, and
exhibits the properties of a colloid.
In these regard, they are chiefly
used to modify the rheology of the
food system, specifically viscosity
and texture. As a thickening
agent hydrocolloids are added to
foodstuffs such as sauces, gravies,
instant soups, cake batters, jam and
other salad dressings to promote
evenly textured thickening. This
is also applied to the processing
of puddings and desserts. The
thickening effect produced by
the hydrocolloids depends on
the type of hydrocolloid used, its
concentration, the food system in
which it is used and also the pH of
the food system and temperature.
Hydrocolloids that have been
used as thickening agents in
various food systems include
starch, modified starch, xanthan,
galactomannans like guar gum
and locust bean gum, gum
Arabic or acacia gum, gum
karaya, gum tragacanth and
carboxymethyl cellulose. Starch
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
53
FORMULATION | HYDROCOLLOIDS & GUMS
THE EXTENSIVE SERIES OF FUNCTIONS
PERFORMED BY HYDROCOLLOIDS IN FOOD
INDUSTRY, COUPLED WITH INCREASE IN HEALTH
AWARENESS AND GROWTH IN DEMAND OF
CONVENIENCE FOOD ARE KEY DRIVING FORCES
FOR THE GROWTH OF THE MARKET.
Healthy option applications
With the rise in consumption of gluten free products
by many dieters across the globe, addition of
hydrocolloids to food is used to create low-fat, lowcalorie products. They can be used to retain qualities
such as texture and stability in the absence of fat and
help with taste when alternative sweeteners are used.
is the most commonly used hydrocolloid thickener,
as it is relatively cheap, abundant and possibly it
does not impart any noticeable taste if used at a low
concentration of 2% to 5%.
As a gelling agent, the gelation is a phenomenon
involving the association or cross-linking of the
polymer chains to form a three dimensional network
that traps or immobilises the water within it to form
a rigid structure that is resistant to flow. In other
words, it becomes visco-elastic exhibiting both
characteristics of a liquid and a solid. Different
food stuffs use different hydrocolloids to form gels
depending on the characteristics of the agent. For
example, alginate can form gels without prior heating
because sodium alginate is cold water soluble and
these cold-formed gels are heat stable. This makes
alginate a preferred gelling agent for re-structured
foods and for cold-prepared instant bakery custard
that are bake-stable. Carrageenan is a hydrocolloid
that finds maximum application in dairy desserts
like puddings, milk shakes, ice cream and chocolate
milk because of its ability to form gels in milk at much
lower concentrations.
Growing demand
The extensive series of functions performed by
hydrocolloids in food industry, coupled with increase
in health awareness and growth in demand of
convenience food are key driving forces for the growth
of the market.
The hydrocolloids market was estimated at US$8.8
billion in 2018 and projected to grow at a CAGR of
5.3%, to reach US$11.4 billion by 2023. The growth
of the hydrocolloids market is also driven by factors
such as the expansion of the processed food industry
in the emerging countries of the Asia Pacific, South
America, and the Middle East & African regions.
North America is expected to be the most lucrative
region in the global gum hydrocolloid market. The
growing consumption of processed foods and
rising nutritional trends in the US and Canada will
continue to drive the growth of the North American
hydrocolloids market. The changing lifestyle and
food consumption in developing countries such as
China and India are also anticipated to develop the
expansion of the hydrocolloid market in Asia Pacific.
In order to increase the consumption demand,
Emulsification properties and more
Other useful functions of hydrocolloids include
emulsification i.e. they help prevent the separation
of oil droplets from water. This is important when
products such as margarine are produced as their
ingredients contain both water and fats. The same
case applies to the production of ice cream. On the
other hand they also act as crystallization inhibitor.
Manufacturers of ice cream, candies, sugar syrups
etc. use hydrocolloids such as guar gum to prevent
ice crystallization.
Hydrocolloids are also used as stabilizers. Their
ability to hold together components of a food product
thus preventing physical changes from occurring
make them great stabilizers. They increases the shelf
life of processed foods, keeping them fresh for longer
and they are also good at retaining moisture. This
has vital applications in the baking industry to keep
the dough from drying out. They also retain moisture
in frozen foods, which prevent a common problem
in such products, syneresis, or the release of water.
Hydrocolloids like xanthan gum can be used in dough
production to prevent lumps from forming when it
is kneaded; it also improves consistency and final
product volume.
IN NUMBERS
54 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
US$11.4B
PROJECTED MARKET FOR
HYDROCOLLOIDS BY 2023 DRIVEN BY
EXPANSION IN PROCESSED FOODS
manufacturers are aimed at inculcating scientific
developments in the production techniques of gum
hydrocolloids. The leading competitors in the global
gum hydrocolloid market include Cargill, Kerry Group,
Archer Daniels Midland Company (ADM), Ingredion,
Du Pont, Royal DSM, and Danisco, among others.
Shortage of natural raw materials can be observed
as a major challenge restraining the growth of the
hydrocolloids market. The irregular supply of such
raw materials will subsequently hike their prices,
and increase the production costs of using gum
hydrocolloids as additives. The seasonal production
nature of hydrocolloids can also limit the usage of
available raw materials and affect the growth of the
global hydrocolloids market. FBA
FOODBUSINESSAFRICA.COM
COVER STORY
How consumer goods companies can prepare for
the next normal after Covid-19
By Raphael Buck, Tracy Francis, Eldon Little, Jessica Moulton, and Samantha Phillips
Consumer-packaged-goods manufacturers must anticipate changes in
consumer behavior and set up plan-ahead teams to guide and accelerate
decision making.
have withstood the initial economic shock, all will
need to prepare for the longer-lasting effects,
including an erosion in consumer confidence that will
drive recessionary behavior.
In this article, we describe five trends in the
consumer and retail landscape that have emerged
during the crisis and, we believe, will persist in the
aftermath. We then recommend the creation of
a plan-ahead team to equip CPG companies for
whatever the next normal may turn out to be.
A
s the coronavirus pandemic spreads
across the globe, threatening both lives
and livelihoods, consumer-packagedgoods (CPG) manufacturers continue
to play an important role: producing
essential items we all rely on for our
health and well- being. CPG leaders have focused
on meeting this demand while guarding the safety of
employees and customers.
At the same time, forward-thinking CPG companies
have begun to think about the “next normal”—what
the world may look like after strong virus-control
measures are lifted. The measures in place are
expected to lead to the largest quarterly decline in
economic activity since World War II.
An unprecedented 40 to 50 percent decline in
discretionary spending will translate to a roughly 8 to
13 percent drop in GDP. While many CPG companies
FOODBUSINESSAFRICA.COM
CONSUMER TRENDS AND CHANNEL SHIFTS
We map four horizons of the crisis and beyond. At
the time of this writing, most countries around the
world—with notable exceptions in Asia— are still
navigating the crisis. The questions many are now
grappling with include: What will the next normal
look like? And how long will the intervening period of
partial restrictions last?
It’s increasingly clear that the intervening period
will be lengthy. Consumers and retailers will need
to adjust to ongoing physical distancing and travel
restrictions. Outlets and venues where physical
distancing cannot be achieved will be among the last
to reopen.
Current sentiment, the trends we are seeing in
Asia, and lessons from the last recession lead us to
anticipate at least five behaviors to “stick” through the
prolonged recovery and the next normal: increased
price sensitivity, higher digital engagement, rise in
attention to wellness and hygiene, “nesting” at home,
and a redefinition of brand purpose.
We also expect to see important channel shifts:
a smaller food-service sector, retailer consolidation,
the rise of value retailers, and Amazon’s growth in
grocery (a sector in which the e-commerce giant has
historically had lower share).
Economic insecurity, leading to price sensitivity
Already, two-thirds of consumers are pessimistic or
unsure about the pandemic’s lasting effect. Despite
their comparative optimism for economic recovery,
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
55
COVER STORY | COVID-19
46 percent of US consumers and
28 percent of Chinese consumers
said they plan to reduce spending
in the coming weeks.
The 2008 recession is an
imperfect analog to the COVID-19
crisis—which is more of a
shock, with many governments
introducing bold, unprecedented
fiscal measures—but we believe it
offers valuable lessons about how
consumers behave under financial
stress.
That recession had a lasting
effect on consumer confidence,
which didn’t return to prerecession
levels until 2011 in Germany, 2014
in the United Kingdom and the
United States, and 2017 in China.
Consumers reduced their spending
in several ways:
• Refocusing on home occasions
- Many consumers spent less
outside the home; 55 percent
of Germans and 63 percent of
Americans said they ate out
less.
• Cutting back on nonessentials
- Two-thirds of US shoppers
said they cut back on high-end
luxury goods; one-third cut
back on cosmetics.
• Deal seeking - Shoppers
became increasingly promotion
conscious. In the United
Kingdom, the percentage of
products sold on discount
climbed from 26 percent in
2002–06 to 36 percent in 2011.
• Trading down - Consumers
switched to cheaper brands
or private labels. UK privatelabel sales increased by 10
percentage points from 2008
to 2010.
• Shifting channels - Many
consumers began shopping
at value retailers. Discounters
now account for 10 percent of
grocery sales in the UK market,
up from 3 percent in 2006.
56 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
A seismic shift in digital engagement
Physical-distancing rules have
increased consumption of online
media and significantly accelerated
e-commerce,
particularly
in
markets that already had a head
start. In the United Kingdom, for
example, where online’s share of
grocery shopping was 7 percent
before the crisis, grocers are
furiously increasing capacity to
meet demand: the three largest
grocers have added more than
500,000 new delivery slots—an
increase of more than 30 percent.
For many discretionary categories,
e-commerce has become the
channel as stores have closed.
We expect this channel shift to
endure to some extent, especially
in countries where retailers had
enough preexisting capability to
offer a positive online experience.
Early lessons from China
suggest that three to six percentage
points of online market share
will be “sticky,” driven by older
generations newly comfortable
with digital channels and by new
consumer segments who have
overcome barriers to trial (such
as account setup). Also, in the
medium term, we expect shoppers
to prefer the “safe” experience of
shopping online to the prospect of
shopping in crowded stores.
Amazon is likely to build
momentum in fresh food and
packaged goods, especially in
markets where the major grocers
lack e-commerce “legs.” In the
month leading up to March 14—
even before governments issued
shelter-in-place
guidance—
Amazon US saw year-on-year
growth of 41 percent in household
goods, 25 percent in health
products, and 23 percent in
groceries.
Rise in attention to wellness and
hygiene
The wellness trend has endured—
and even gained strength—during
the outbreak.
“Healthy eating” has remained
FOODBUSINESSAFRICA.COM
IN NUMBERS
55%
SHOPPERS WHO HAVE A NET POSITIVE
SCORE FOR HEALTHY EATING IN
EUROPE AFTER COVID-19 OUTBREAK
bought equipment for new hobbies and routines. Next
to groceries, the category that saw the highest growth
in US e-commerce in recent weeks has been bread
makers (652 percent growth). Other nonessentials,
such as weight-training gear (307 percent), computer
monitors (179 percent), and craft kits (117 percent)
also made the top-100 list.
Redefinition of purpose
Large CPG companies have prioritized crisis-related
communications (such as announcements of new
safety protocols and charitable donations). Digitalnative brands have nimbly connected with their
social-media communities about how they’re helping
people affected by COVID-19. Consumers may expect
companies to continue this heightened emphasis on
the highest priority of food shoppers across Europe: social responsibility after the crisis ends.
net sentiment (positive responses less negative) was
In the previous recession, more than 75 percent of
55 percent, rising to 82 percent in Italy.
consumers agreed that “corporations should operate
Consumers are also investing in at-home exercise: in a way that aligns with society’s interests, even if
in Germany and the United Kingdom, Amazon’s
fitness-equipment sales spiked by approximately 60
EARLY LESSONS FROM CHINA SUGGEST THAT
percent each week in March.
THREE TO SIX PERCENTAGE POINTS OF ONLINE
We expect this upward trajectory to continue into
MARKET SHARE WILL BE “STICKY,” DRIVEN BY
the next normal. Hygiene will become a core element
OLDER GENERATIONS NEWLY COMFORTABLE
of wellness. The speed of the virus’s spread has
WITH DIGITAL CHANNELS AND BY NEW
highlighted the level of connectedness in society—
CONSUMER SEGMENTS WHO HAVE OVERCOME
and the associated risk. Brands should consider the
BARRIERS TO TRIAL
implications for their strategy and communications
(for instance, reassessing manufacturing processes that means sacrificing shareholder value.” That said,
and packaging, as well as emphasizing health and brands must be careful to strike the right tone. During
cleanliness in marketing messages). The battle to this pandemic, 77 percent of consumers said they
eradicate COVID-19 will be a long one, and CPG appreciate CPG companies communicating how their
manufacturers will need to prove their safety and brands can be helpful in daily life, but an almost equal
trust credentials.
percentage said brands shouldn’t “exploit” COVID-19
as a commercial opportunity.
Nesting at home
It will be essential for companies to balance existing
Staying in is the new going out. Once restrictions are focus areas with emerging consumer concerns.
lifted, we expect consumers to continue spending Sustainability, for instance, continues to be important
more time at home, driven by a desire to save money, to consumers in many markets (60 percent of UK
persistent safety concerns, and a newfound pleasure consumers cited it as a top consideration when food
in nesting. Through the crisis period, many have shopping). Yet consumers who have become more
invested in upgrading their homes and gardens or price sensitive or more concerned about hygiene may
FOODBUSINESSAFRICA.COM
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
57
G
E
COVER STORY | COVID-19
favor single- use packaging.
CPG companies should examine the potential
impact of these trends on the categories in which
they play. Besides these, we are also monitoring
two other trends, whose longevity is less clear:
deurbanization and big-brand growth. With cities
becoming COVID-19 epicenters, urbanites may
move to the suburbs, or cities could see a significant
reduction in traffic as people stay local. Big brands
may benefit over the longer term, as retailers’ current
focus on high-volume SKUs will change the consumer
decision set. (In the United States, for instance, large
and midsize brands captured 60 percent of recent
growth, compared with only 20 percent in previous
years).
crisis-response teams monitoring the situation and
reacting accordingly. Preparing for the next normal,
however, calls for a distinct working group: a planahead team tasked with planning across multiple
time horizons.
WHILE THE IMMEDIATE NEED DURING THIS CRISIS
IS AN OPERATIONAL SUPPLY CHAIN, THE NEXT
FOCUS WILL BE TO BUILD A SMARTER, MORE
FLEXIBLE, AND, ESPECIALLY, MORE RESILIENT
ONE.
As our colleagues explain in a recent article,
“Getting ahead of the next stage of the coronavirus
crisis,” the plan-ahead team should work through
five frames: a realistic starting position, scenarios, a
broad direction of travel, strategic moves, and trigger
Channel shifts
These consumer trends will have channel implications, points.
In the remainder of this article, we discuss CPGeach of which will have varying impact on different
countries and categories. Most significantly, food- specific considerations for each of these frames.
service operators — particularly independents — will
experience substantial contraction and consolidation 1. Gain a realistic view of your starting position
as a result of physical-distancing restrictions and The plan-ahead team should review the company’s
the recessionary environment. Food-service closures financial assumptions, ongoing initiatives, and
have accounted for 10 to 20 percent grocery growth strategic choices, and sort them into three buckets:
in Western markets; when the food-service sector “still about right,” “wrong,” and “unsure.”
CPG companies should reevaluate their 2020
reopens, we expect a few percentage points to remain
growth expectations and key drivers, including the
in grocery.
We also expect to see significant retailer markets, categories, and customers that will deliver
consolidation, especially in sectors that were less growth; the role of planned product launches and
well capitalized and struggling before the outbreak, campaigns in light of store closures and recessionary
such as small US quick-service restaurants. Some pressure; and the allocation of resources, including
distributors will go out of business, creating route-to- talent. This exercise will clarify your starting point
market challenges for some CPG players, especially and provide a clear picture of the challenges you need
to address.
in the fragmented trade.
Amazon and other e-marketplaces were already
growing by 25 percent a year from 2013 to 2018 2. Develop scenarios for multiple versions of your
but had previously struggled with the supply-chain future
complexity of fresh food and the economics of Scenario planning for the next normal is a daunting
delivering CPG products. During the crisis, however, task, with many macroeconomic possibilities, vast
these players are likely to capture an outsize share of differences in markets (and even regions or cities), and
only an early view of the consumption implications.
core grocery.
In offline grocery, discounters and other value “Bound the uncertainty” by considering at least four
retailers will benefit from the downturn, as they did in discrete scenarios—each covering country, category,
2009. Major grocers will rationalize their assortments and channel outcomes— underpinned by clearly
based on learnings during the crisis. They will also stated assumptions about containment measures
likely invest more in neighborhood proximity formats: and financial aid.
in China, for instance, convenience-store sales were 8
percent higher in March than in January. And grocers 3. Establish your posture and broad direction of
will ask CPG companies for support in making the travel
After a detailed scenario-planning exercise, it may
economics of e-commerce work.
seem odd to make macro choices—but they help
to align companies on the direction of travel. CPG
Getting ahead of the next phase
By now, most CPG companies have well-established companies might consider their stances on the
58 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
FOODBUSINESSAFRICA.COM
following:
• Global business. Will you focus on your
previous priority growth markets or review your
segmentation based on new behaviors and
economic outlook?
• Portfolio. Will you continue to prioritize at-home
essentials or invest in rebuilding demand for
products that consumers largely held off buying?
• Value proposition. Will you reposition premium
offerings or prioritize cheaper brands?
• Discretionary categories. Is your primary aim to
restart operations and manage your bottom line,
or will you invest—for example, in marketing or
direct to consumer (DTC)—to capture share?
• Essential categories. Will you focus on traditional
retail partners or on growth channels, such as
e-marketplaces?
• Challenger brands. Will you wait to bounce back
or create a marketing and promotional growth
plan?
• Think about how to align your operating model
with these stances and about which new “muscles”
you might have to build. Establishing your posture
and broad direction of travel will help you decide
on strategic moves.
hard-to-come-by digital talent.
Revisit your channel strategy and customer segmentation
In light of the aforementioned retail dynamics, reset
your channel strategy around both the enduring
global trends and smaller, local shifts. This will in
turn require a review of your customer-segmentation
strategy and growth targets, and an understanding of
the capabilities you may need for new partnerships.
Rebase overall investment across tiers as needed
and build up new priority customers with stronger
ways-of-working agreements. Decide how you’ll
manage the trade spend you’d previously allocated
to now-lower-priority customers, while maintaining
those relationships and your fair share of sales. Also,
decide how you’ll support the return of food service,
if it’s important to your mix—especially in the difficult
period immediately after lockdowns are lifted.
Revise assortment and pricing
After the crisis, retailers are likely to want to reevaluate
their category vision and assortment, which could be
good news for CPG companies that play in multiple
categories and price tiers. To prepare action plans,
know your category consumer better than anyone
else: test ranging and new promotional mechanics,
4. Determine actions and strategic moves that are revisit insights from the previous recession, and,
later, supplement in-store learnings with primary
robust across scenarios
The plan-ahead team can then draft and pressure- consumer and shopper research to understand posttest action plans for each scenario. CPG players have crisis perspectives.
Reprioritize your portfolio based on shifts in
a range of commercial, operational, and strategic
consumer and customer needs and on changes in
areas to cover.
sourcing and the supply chain. And get granular: one
size will not fit all. Build shopper-, occasion-, channel-,
Accelerate e-commerce and digital marketing
The specific actions will depend partly on your and customer-specific plans.
posture and business model, but all CPG companies
should deepen their relationships with third-party Strengthen your purpose orientation
e-commerce partners and work with them in new A company’s actions during times of crisis are
ways, such as category captaincy, deeper data written into its history and make a lasting impression
on consumers. To lead with purpose, understand
exchange, or shared warehousing.
At the same time, avoid overreliance on the your stakeholders’ needs and review the trade-offs
e-marketplace giants—strengthen your relationships in addressing them. Think about how to bring your
with second-tier e-tailers and owned e-commerce greatest strength or “superpower” to bear, perhaps
(such as DTC websites, owned marketplaces or more creatively than before.
Communicate frequently and clearly, but you don’t
ecosystems, or partnerships in which you control your
brand presence and own the consumer relationships need to have all the answers—you can crowdsource
ideas and involve your employees. Your jointly created
and data.)
With customer decision journeys encompassing purpose can then be a source of energy and renewal.
more digital touchpoints and increasing in complexity, Finally, use purpose as a filter for your action plans. If
shoppers will expect CPG companies to have a they don’t stack up against your values, identity, and
consistent presence online and offline. Capturing and legacy, look for alternatives.
managing data will be essential and can help deliver
precision marketing at lower cost. Finally, despite the Build a resilient supply chain
uncertainty, consider actively recruiting otherwise While the immediate need during this crisis is an
FOODBUSINESSAFRICA.COM
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
59
COVER STORY | COVID-19
operational supply chain, the next focus will be to
build a smarter, more flexible, and, especially, more
resilient one. Heads of operations and CIOs should
review the strategy, footprint, assets, processes, and
tools along the entire supply chain. They will have to
decide whether efficiency and centralized footprints
remain the answer to manage future risk. They will
also need to determine whether legacy infrastructure
and systems should be upgraded to autonomous
end-to-end planning systems or to a combination
of advanced analytics and end- to-end visualization
THE CONSUMER TRENDS THAT ARE
CRYSTALLIZING DURING THE CRISIS AND WILL
MOST LIKELY PERSIST WILL AFFECT EVERY CPG
CATEGORY. BY ESTABLISHING PLAN-AHEAD
TEAMS AND ACTING ON THE FIVE FRAMES, CPG
COMPANIES CAN EMERGE STRONGER FROM THE
CRISIS
Accelerate the role of digitization and automation
in supply chain, back-office functions, procurement,
and even route to market. Done right, automation
transformations can have an impact on both the top
and bottom lines in as little as three months.
Stay abreast of regulatory changes
Pay close attention to government mandates
and regulatory actions, which may become more
interventionist in areas such as consumer health,
control over national or local food ecosystems, and
employee safety. If you lack an experienced publicaffairs department, consider temporarily devoting
resources to government relations and making it part
of the crisis-response team’s remit.
Scan for small-brand M&A
Consider updating your M&A strategy in the context
of your posture—for example, buying rather than
building new capabilities or reframing priorities
solutions, for better complexity management.
Embed new ways of working based on lessons from (for example, resilience over pure efficiency). If you
the crisis. Complement monthly sales and operations decide to look for complementary assets, focus
planning (S&OP) cycles with weekly control towers, on strategic acquisitions: brands that expand your
which help balance service, cost, and cash (that is, portfolio, challengers within your major categories,
or resilient adjacent players.
inventory).
While industry players are balancing many
Last year’s sales and traditional forecasts will
be less valuable, so dial up planning across sales challenges, private-equity firms are single-mindedly
and operations and jointly make decisions about focused on preparing for transactions. Make sure
demand—for example, is a huge order a true uptick that any asset-valuation work is risk-managed and
in demand, a one-time effect of new ranging, or the rooted in your scenarios. Also, consider divestments
of your own underperforming or less-strategic assets
same demand pulled forward a week?
For priority customers, short- term solutions (such to free up cash and ensure longer-term resilience.
as connected inventory or simplified routes from
factory to store) could be leveraged on a more regular 5. Set trigger points that drive your organization to
act at the right time
basis to manage new demand levels.
Finally, time is of the essence. Lay out key indicators
and set clear trigger points for each scenario; ensure
Define the next level of productivity
Any short- to medium-term falloff in spending that your teams have the data and processes to
(resulting, for example, from store closures and travel identify these trigger points as soon as possible.
restrictions) should be swept into updated budgets. It’s then up to the top team to give the go-ahead to
Rigorously allocate all remaining funds toward the execute the plans.
The consumer trends that are crystallizing during
highest-ROI activities. Steer demand to customers
and brands with excess supply, and functional the crisis and will most likely persist—recessionary
behavior, greater digital engagement, attention
capacity to more urgent needs.
Given COVID-19’s immediate impact, planning to wellness and hygiene, nesting, and heightened
for the next normal can feel like a real-time zero- expectations of corporate purpose—will affect every
based- budgeting effort. Analyze performance at the CPG category.
By establishing plan-ahead teams and acting on
lower spend levels and then build back investment
the
five frames, CPG companies can emerge stronger
in priority categories, brands, and channels, with
monthly monitoring of triggers to start “investment from the crisis and be well positioned to succeed in
spend” as you emerge from the crisis. In the 2008 the next normal. FBA
downturn, the top 20 percent of performers reduced
costs more quickly and were faster to invest as the
economy recovered.
Source: McKinsey
60 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
FOODBUSINESSAFRICA.COM
COVER STORY
6 Lessons from China’s recovering food and
beverage sector after Covid-19
By Ming Rodrigues – Kerry
A
s China emerges from COVID-19,
food and beverage manufacturers
worldwide can learn from the country’s
recovery efforts and changing consumer
landscape
As one of the world’s largest
manufacturers of ingredients and commodities,
China’s lockdown from the COVID-19 pandemic
delivered a major hit to every aspect of life, from the
economy to day-to-day tasks. In the food and beverage
industry, the long arm of disruption tightened its lock
around the global supply chain, foodservice sector,
commodity prices and demand for essential and nonessential items as China’s major cities shut down for
several months.
China is now entering the recovery phase of postCOVID-19 life, with food and beverage operations
beginning to resume some normal activity. As
COVID-19 continues to spread and impact other
locations, food and beverage manufacturers from
around the globe can look to China for lessons on
how plan for the future.
FOODBUSINESSAFRICA.COM
A brief recap of China’s COVID-19 outbreak
China was the epicentre of the COVID-19 outbreak
which gained global attention in mid-January 2020
though, according to the Chinese Center for Disease
Control and Prevention (CDC), the first known
patient experienced symptoms on December 1, 2019.
The situation escalated rapidly and by January 23
Wuhan, the capital of Hubei province, went under
lockdown. This was just before the start of lunar new
year holiday period, which lasted from January 25 to
30.
By January 29, provincial regions had activated
first-level emergency responses to the epidemic and
the majority of China's residents remained home
to avoid infection. The central government also
extended the lunar new year holidays to February
2, with many local governments stretching it till
February 9 to prevent mass travel back to the cities.
The move proved effective. By March 9, though China
reported a total of 80,754 infection cases, the day's
increase of new cases stood at just 19, signalling that
efforts to contain the epidemic were finally gaining
ground.
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
61
COVER STORY | COVID-19
China eventually lifted its lockdown on March
25, with Wuhan following on April 8. As of April 7,
for the first time since January, China reported zero
deaths from COVID-19, thanks in part to tightening
restrictions on foreign travellers amidst rising
imported and asymptomatic cases.
China’s food and beverage sector during COVID-19
With the COVID-19 situation evolving at
unprecedented levels, it was not business as usual for
China's food and beverage industry. Just as quickly
as the virus spread, by February, both manufacturing
and non-manufacturing sectors bore the brunt of the
pandemic fallout, with the non-manufacturing sector
taking the biggest blow. During the lunar new year
period, the Chinese Cuisine Association reports that
93% of foodservice companies ceased operations,
while BCG data saw the retail sector (including
grocery stores, ecommerce and department stores)
taking an overall drop of 50%. A Kantar report
revealed that food and beverage fell 46% between
January 25 and February 7 alone.
More recent insights from the Streetbees
COVID-19 Human Impact Tracker indicate that 80%
of Chinese citizens have changed their consumption
and shopping habits. In early February, Kantar
market research showed people were stocking up
on ‘necessity foods’ and non-perishables like instant
noodles, instant soups and frozen foods as these are
long-lasting and easy-to-store, minimising frequency
of grocery purchases and thereby the risk of infection.
IN NUMBERS
80%
PORTION OF CHINESE CONSUMERS
WHO HAVE CHANGED THEIR
CONSUMPTION & SHOPPING HABITS
POST CORONA
Meanwhile, demand for liquid dairy, confectionary,
beverage and alcohol, regarded as unnecessary
foods, saw a sharp decline for that same period.
Food and beverage in China after COVID-19
Today, even with the trajectory of COVID-19 shifting
heavily to western nations and the situation gradually
improving in China, the country’s GDP growth rate
for 2020 is projected at below 6%. The outcome will
depend on how other major economies including the
U.S. and Europe manage the epidemic.
Business in China is gradually resuming, but we’re
seeing a different tack across the value chain. From
expanded group purchases for corporations; the
62 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
launch of automated, contactless coffee machines
to address food safety concerns; packaged products
to meet the rise of in-home consumption; safe online
purchasing and offline food delivery involving ‘no
touch’ technology to the surge in immune health
foods and products, the food and beverage industry
is rolling out new initiatives and offerings to meet the
seismic shift in consumer mindset and purchasing
behaviour.
Here's a look at how COVID-19 has changed
shopping habits in the Chinese market, what and
where people are choosing to eat and the implications
for the food and beverage sector and consumers
everywhere.
Outcome 1: Opportunity for tasty, convenient and
nutritious DIY home meals
Despite the spike in instant foods, the tide appears to
be turning as people start to explore more nutritious
meals beyond canned or frozen. To avoid crowds
and control what goes into their food, consumers
are spending more time in the kitchen cooking from
scratch. A Mintel survey of Chinese consumers who
are grocery shoppers found 69% are spending more
on in-home food and 49% are spending less on eating
out. In addition, with more people working from
home, 40% of that segment are now cooking dinner
from scratch, compared to just 26% pre-COVID-19,
as highlighted in Streetbees.
This shift has led to the increasing popularity of
online cooking videos as consumers rediscover the
pleasures of whipping up wholesome meals at home,
according to Ipsos ‘Insight of consumer purchase
behavior on daily necessities during coronavirus
FOODBUSINESSAFRICA.COM
of the virus has made consumers in China wary of
fresh meat and fish. With the COVID-19 outbreak
threatening consumers’ trust in meat, the spotlight
may well turn to plant-based proteinsources like
soy, mushroom and rice. This is not a new concept
to the Chinese palate, which has been familiar with
mock meat ever since the Tang dynasty, some 1,400
years ago, when an imperial official served vegetarian
mutton and pork at a banquet. Also popular among
consumers in China are protein bars as a meatless
and convenient protein source.
Outcome 4: Health and foods supporting wellness
and immunity are priority
With so much at stake, a fact that cannot be overlooked
in the Ipsos report is that health and wellness rank
high for 75% of consumers in China today. People
are paying more attention to their nutrition and
what they eat, looking at supplements that support
wellbeing and immunity, and underlining all that is
the paramount importance of food safety. Consumers
are also seeking out natural ingredients believed to
enhance health and fight infections such as ginger
outbreak’. Couple that with 58% saying they ‘care and lemon. Products recently launched include drinks
more about daily life’, and the implication is that with functional ingredients, for example milk with
while dining out may be still enjoyed, the balance will immune globulin and vitamin C fruit tea.
continue to tilt as consumers gravitate increasingly
PREVIOUSLY AMBIVALENT ABOUT ONLINE
towards preparing home-cooked meals and place
PURCHASING, MORE CHINESE ELDERLY
greater stock in simple joys like dining in with family
HAVE DISCOVERED HOW QUICK, EASY AND
and friends.
CONVENIENT SHOPPING CAN BE WITH APPS
This changing consumption landscape can be
AND SOCIAL MEDIA.
viewed as an opportunity for the industry. Food
manufacturers and brands can help consumers enjoy
Pre-COVID-19, the importance of good health was
better-for-you home meals, whether it’s providing
already
evident in the Chinese market. According
healthy yet delicious and easy-to-prep meal solutions
to
a
2019
Kerry global consumer survey on immune
or devising nutritious menus, which would come as
health,
90%
of respondents in China identified
a boon to consumers new to cooking and looking
themselves
as
“health
conscious”, with supplements,
for guidance. Even companies specialising in frozen
sports
nutrition
and
yoghurt
products with immunity
meals can educate consumers on the nutritional
benefits
seeing
the
highest
interest.
value of frozen fruits, vegetables and fish.
A key factor motivating consumers to buy healthy
foods
and products was transparent information on
Outcome 2: Demand for visibility on product
ingredients—around
half of people want to see the
sourcing and safety
benefits
and
efficacy
explained
and supported clearly
With consumers keenly aware of the importance
on
the
packaging.
of strict hygiene and food safety, technologies like
blockchain in supply chain processes are critical in
allowing better visibility and transparency on product Outcome 5: Seniors are catching on to online buying
Previously ambivalent about online purchasing, more
sourcing and manufacturing.
This dovetails with 62% of Chinese consumers Chinese elderly have discovered how quick, easy and
saying that they are now more rational in their convenient shopping can be with apps and social
purchases, preferring to take a long-term view and media.
What this means for manufacturers is that
putting more thought into what goes into their to-buy
clear
images and easy-to-read product names and
list.
descriptions are crucial to ensure a smooth buying
Outcome 3: Potential growth in plant-based protein experience, especially as more easy ordering apps
become available and the popularity of food delivery
as a clean and safe meat alternative
The fear that animal products are the root cause continues to rise. FBA
Source: Kerry
FOODBUSINESSAFRICA.COM
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
63
FOOD SAFETY
Stopping corona virus a huge challenge at
crowded us meat plants
By Josh Funk
D
aily reports of giant meat-processing
plants closing because workers tested
positive for the coronavirus have called
into question whether slaughterhouses
can remain virus-free.
According to experts, the answer
may be no. Given that the plants employ thousands
of people who often work side by side carving meat,
social distancing is all but impossible. Because of
that, the risk of catching the virus will likely remain
even as companies take numerous steps to increase
protections for workers. “It’s not that people aren’t
64 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
trying. It’s just that it is very difficult to control this
illness,” said Dennis Burson, an animal science
professor at the University of Nebraska-Lincoln.
The list of companies dealing with infected
workers has been growing every day at plants across
the country. Among the latest was the closure
Wednesday of Tyson Foods’ huge pork-processing
plant in Waterloo, Iowa, after numerous workers
tested positive. That follows closures of a Smithfield
Foods pork plant in Sioux Falls, South Dakota; a JBS
beef plant in Greeley, Colorado; and many others.
Some, including the Tyson pork plant in Perry, Iowa,
FOODBUSINESSAFRICA.COM
COVER STORY
"WE ARE LOOKING FOR COUNTLESS WAYS
OF ENSURING WE HAVE GOOD HEALTHY
SOCIAL DISTANCING IN OUR PLANTS. IT’S NOT
IMPOSSIBLE DESPITE THE NUMBER OF PEOPLE IN
OUR PLANTS"
HECTOR GONZALEZ - SENIOR VP, HUMAN RESOURCES,
TYSON FOODS
cases, plants may be able to spread workers out by
slowing down operations, but the feasibility of the
change depends on the layout of each plant and would
reduce a plant’s capacity. “They were constructed to
have people stand next to each other and work, and
that’s very difficult to change,” he said.
Edgar Fields, president of the Southeast Council of
the Retail, Wholesale and Department Store Union,
which represents thousands of poultry workers, said
it’s hard to know if the precautions at plants will
protect workers.
“We say 6 feet … but what is enough?” Fields
asked. “What else is it that we can ask them to do to
try to protect their employees when they walk in the
door and when they walk out. I don’t know. All of this
is new.”
Alejandra Wehunt, 22, of Gainesville, Georgia, said
she stopped going to work at a poultry processing
plant as soon as she found out a male worker she
knew had tested positive for COVID-19, the disease
caused by the coronavirus.
“I have a young daughter. I live with my grandmother.
have reopened after deep cleanings.
The closures shouldn’t cause any immediate meat
shortages or big price jumps at supermarkets, but as
Purdue University economist Jason Lusk noted, “It’s a
very fluid and volatile situation to keep an eye out for
in the days to come.”
Iowa Gov. Kim Reynolds, whose state leads
the nation in pork production, acknowledged the
likelihood of “clusters of positive cases” at meatprocessing plants but said the operations must
remain open. “Without them, people’s lives and our
food supply will be impacted,” Reynolds said.
In an attempt to protect workers, companies have
started checking employee temperatures before
they start their shifts, staggering breaks and altering "WE SAY 6 FEET … BUT WHAT IS ENOUGH? WHAT
ELSE IS IT THAT WE CAN ASK THEM TO DO TO
start times. Owners said they have also done more to
TRY
TO PROTECT THEIR EMPLOYEES WHEN THEY
clean plants, added space for workers to spread out
WALK
IN THE DOOR AND WHEN THEY WALK
on breaks, slowed production lines so workers can
OUT.
I
DON’T KNOW. ALL OF THIS IS NEW.”
spread out and added plastic shields between work
stations.
EDGAR FIELDS, PRESIDENT OF THE SOUTHEAST
“We are looking for countless ways of ensuring
COUNCIL RETAIL, WHOLESALE AND
we have good healthy social distancing in our plants.
DEPARTMENT STORE UNION
It’s not impossible despite the number of people in
our plants,” said Hector Gonzalez, Tyson’s senior vice
I have seizures and heart problems. I can’t catch
president of human resources.
anything,” said Wehunt, a single mother who trims
and marinates the chicken with seasoning at the
Taking precautions
Major meat companies, including Smithfield, Tyson, plant. “If one person got it, probably many others have
Cargill and JBS, said they also relaxed their attendance it too. He was around other people.” Wehunt said the
and sick leave policies to encourage sick workers plant manager at the Gold Creek Foods plant had told
to stay home and allow them to be paid. The North workers that, despite the pandemic, they had to show
American Meat Institute trade group says companies up to work or they could risk losing their jobs. “Why
are sharing information about their safety practices are we losing our jobs because we don’t want to put
our health in jeopardy,” she said.
to help the industry respond to the outbreak.
A Gold Creek Foods spokesman did not respond to
Still, workplace safety expert Celeste Monforton
phone
calls seeking comment.
said some companies are doing more than others,
Joshua
Specht, a University of Notre Dame history
and it’s difficult to ensure people working so closely
professor
who
has studied the meat industry, said it
together won’t spread the virus. “The scary thing is
relies
on
workers
at the margins of society — including
you know if it could happen in one plant, the potential
recent
immigrants
— who don’t have a safety net and
is there for a lot of other plants,” said Monforton, a
therefore
feel
pressure
to continue working even if
lecturer in public health at Texas State University.
they
are
ill.
“Unless you’re super vigilant, this is a recipe for
“With workers in close proximity, working long
disaster.”
hours,
and feeling pressure to continue even when
Even companies with the best intention may have
sick,
the
meat industry is at particular risk for
trouble given that plant layouts make 6-foot distancing
pandemic-related
disruptions,” Specht said. FBA
difficult, said Jim Roth, director of the Center for Food
Security and Public Health at Iowa State University.
Precautions like face masks and plastic shields can
help but likely won’t stop the risk, he said. In some
Source: CNN
FOODBUSINESSAFRICA.COM
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
65
Covid-19 and food safety - guidance for food
businesses
T
he world is facing an unprecedented threat
from the COVID-19 pandemic caused
by the Covid-19 virus. Many countries
are following the advice from the World
Health Organization (WHO) regarding
the prevention measures such as physical
distancing.
Food industry personnel, however, do not have the
opportunity to work from home and are required to
continue to work in their usual workplaces. Keeping
all workers in the food production facilities and
supply chains healthy and safe is critical to surviving
the current pandemic. Maintaining the movement of
food along the food chain is an essential function to
which all stakeholders along the food chain need to
contribute.
It is reasonably expected that the food industry
should have a Food Safety Management Systems
(FSMS) based on the Hazard Analysis and Critical
Control Point (HACCP) principles in place to manage
food safety risks and prevent food contamination. The
FSMS is underpinned by prerequisite programmes
that include Good hygiene practices, Cleaning and
sanitation, Zoning of processing areas, Supplier
66 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
control, Storage, Distribution and transport, Personnel
hygiene and fitness to work.
These are the basic conditions and activities
necessary to maintain a hygienic food processing
environment. The Codex General Principles of Food
Hygiene lay down a firm foundation for implementing
PRPs. There is now an urgent requirement for the
Food Industry to ensure compliance with measures to
protect food workers from contracting COVID-19, to
prevent exposure to or transmission of the virus, and
to strengthen food hygiene and sanitation practices.
The purpose of these guidelines is to highlight
these additional measures so that the integrity of the
food chain is maintained, and that adequate and safe
food supplies are available for consumers.
NO POTENTIAL TRANSMISSION OF COVID-19 VIA
FOOD
It is highly unlikely that people can contract COVID-19
from food or food packaging. COVID-19 is a respiratory
illness and the primary transmission route is through
person-to-person contact and through direct contact
with respiratory droplets generated when an infected
person coughs or sneezes. Alternatively, as the
FOODBUSINESSAFRICA.COM
COVER STORY
respiratory droplets are too heavy to be airborne, they
land on objects and surfaces surrounding the infected
person. There is no evidence to date of viruses that
cause respiratory illnesses being transmitted via
food or food packaging. It is possible that someone
may become infected by touching a contaminated
surface, object, or the hand of an infected person and
then touching their own mouth, nose, or eyes.
It is imperative for the food industry to reinforce
personal hygiene measures and provide refresher
training on food hygiene principles to eliminate or
reduce the risk of food surfaces and food packaging
materials becoming contaminated with the virus
from food workers. Personal protective equipment
(PPE), such as masks and gloves, can be effective
in reducing the spread of viruses and disease
within the food industry, but only if used properly.
In addition, the food industry is strongly advised to
introduce physical distancing and stringent hygiene
and sanitation measures and promote frequent and
effective handwashing and sanitation at each stage
of food processing, manufacture and marketing.
FOOD WORKERS: AWARENESS OF COVID-19
SYMPTOMS
Staff working in the food sector need to be aware
of the symptoms of COVID-19. Food business
operators need to produce written guidance for staff
on reporting such symptoms and on exclusion from
work policies. The most important issue is for staff
to be able to recognise symptoms early so that they
can seek appropriate medical care and testing and
minimise the risk of infecting fellow workers.
The most common symptoms of Covid-19 include:
a fever (high temperature – 37.5 degrees Celsius or
above; a cough - this can be any kind of cough, not
just dry; shortness of breath; breathing difficulties
and fatigue.
PREVENTING THE SPREAD OF COVID19 IN THE
WORK ENVIRONMENT
It is important for staff to be provided with written
instructions and training on how to prevent the
spread of COVID-19 and they must practice personal
hygiene and appropriately use of PPE at all times to
prevent Covid-19.
Food businesses must introduce a high level
of security and staff management to maintain a
disease-free working environment, while staff who
are unwell or who have any symptoms of COVID-19
should not work and their contacts (those with
exposure to confirmed cases) must be excluded
from food premises. Meanwhile, a procedure to allow
staff to report illness by phone (or email) should
be established so that workers with early stages of
COVID-19 can receive reliable information and be
quickly excluded from work environments.
It is critical that food safety practices in food
FOODBUSINESSAFRICA.COM
IT IS IMPERATIVE FOR THE FOOD INDUSTRY TO
REINFORCE PERSONAL HYGIENE MEASURES
AND PROVIDE REFRESHER TRAINING ON
FOOD HYGIENE PRINCIPLES TO ELIMINATE OR
REDUCE THE RISK OF FOOD SURFACES AND
FOOD PACKAGING MATERIALS BECOMING
CONTAMINATED WITH THE VIRUS FROM FOOD
WORKERS
premises should continue to be delivered to the
highest hygiene standards in line with established
FSMS, while proper hand hygiene – washing with
soap and water for at least 20 seconds as per WHO’s
advice is maintained and enforced for all employees
and visitors to the premise. The use of alcohol-based
hand sanitizers must also be enforced.
Workers must be adviced to practice good
respiratory hygiene while cleaning/disinfection of
work surfaces and touch points such as door handles
must be done frequently.
USE OF DISPOSABLE GLOVES BY FOOD WORKERS
Gloves may be used by food workers but must be
changed frequently, but it’s important that hands
must be washed between glove changes and when
gloves are removed, while gloves must be changed
after carrying out non-food related activities, such as
opening/closing doors by hand, and emptying bins
and the workers should avoid touching their mouth
and eyes when wearing gloves. Disposable gloves
should not be used in the food work environment as a
substitute for handwashing.
Food businesses need to ensure that adequate
sanitary facilities are provided and ensure that food
workers thoroughly and frequently wash their hands.
Normal soap and warm running water is adequate
for handwashing. Hand sanitizers can be used
as an additional measure but should not replace
handwashing.
PHYSICAL DISTANCING IN THE WORK ENVIRONMENT
Physical distancing is very important to help slow the
spread of COVID-19. All food businesses should follow
physical distancing guidance as far as reasonably
possible. WHO guidelines are to maintain at least 1
metre (3 feet) between fellow workers.
Employers should also consider other measures
to protect employees including staggering of
workstations on either side of processing lines so that
food workers are not facing one another; provision of
PPEs such as face masks, hair nets, disposable gloves,
clean overalls, and non-slip safety shoes for staff;
space out workstations, which may require reduction
in the speed of production lines; limiting the number
of staff in a food preparation area at any one time;
and organise staff into working groups or teams to
facilitate reduced interaction between groups.
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67
COVER STORY | COVID-19
COVID-19 ILLNESS IN THE WORKPLACE
If a food worker becomes unwell in the workplace
with typical symptoms of COVID-19, they should be
removed to an area away from other people, into a
room or area where they can be isolated behind a
closed door such as an office with an open a window
for ventilation and arrangements made for the unwell
employee to be removed quickly from the food
premise. National guidelines for reporting cases/
suspect cases of COVID-19 must be then followed by
management.
All surfaces that the infected employee has come
into contact with must be cleaned and sanitized,
including toilets, door handles, and telephones,
desks, tables, plus all surfaces and objects visibly
contaminated with body fluids. All staff should wash
their hands thoroughly with soap and water after any
contact with someone who is unwell with symptoms
consistent with coronavirus infection.
If an employee is confirmed to have COVID-19 it is
necessary to notify all close contacts of the infected
employee so they too can take measures to minimise
further risk of spread by going into quarantined for
14 days.
The company should draft a return to work policy
for staff who have been infected and recovered from
COVID-19. WHO recommends that a confirmed case
could be released from isolation once their symptoms
resolve and they have two negative PCR tests at
least 24 hours apart. If testing is not possible, WHO
recommends that a confirmed patient can be released
from isolation 14 days after symptoms resolve.
IF A FOOD WORKER BECOMES UNWELL IN THE
WORKPLACE WITH TYPICAL SYMPTOMS OF
COVID-19, THEY SHOULD BE REMOVED FROM
OTHER PEOPLE, INTO A ROOM OR AREA WHERE
THEY CAN BE ISOLATED BEHIND A CLOSED DOOR
SUCH AS AN OFFICE WITH AN OPEN A WINDOW
FOR VENTILATION
TRANSPORT AND DELIVERY OF FOOD INGREDIENTS
AND FOOD PRODUCTS
To avoid any risk of contamination, it is important
that drivers and other staff delivering to food and
from premises be made aware of the COVID-19
transmission and preventive measures, including
potential hot spots, including steering wheels, door
handles, mobile devices, etc.
Drivers and other delivery staff should be supplied
with an alcohol-based hand sanitizer, paper towels
and they must sanitize their hands before passing
delivery documents to food premises staff. They
must be aware of physical distancing when picking
up deliveries and passing deliveries to customers;
be informed of the need to maintain a high degree
of personal cleanliness and to wear clean protective
68 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
clothing at all times. They must also be aware of
the need to ensure that all transport containers are
kept clean and frequently disinfected, foods must be
protected from contamination, and must be separated
from other goods that may cause contamination.
RETAIL FOOD PREMISES DURING THE COVID-19
PANDEMIC
The food retail sector faces the greatest challenges
in maintaining the highest standards of hygiene,
protecting staff from the risk of infection, maintaining
physical distancing when dealing with large numbers
of customers, remaining open, and ensuring that
adequate supplies of foods are available on a daily
basis.
Employers should stress the importance of
more frequent handwashing and maintaining good
hygiene practices, and of more frequently cleaning
and disinfecting surfaces that are touched regularly.
They need to be aware of symptoms of COVID-19 and
inform their employer and seek medical advice if they
think they have symptoms of the disease.
Maintaining physical distancing in retail food
premises is critical for reducing the risk of transmission
of the disease. Some practical measures that may be
used by retailers include the following:
• Regulating the numbers of customers who enter
the retail store to avoid overcrowding;
• Placing signs at entry points to request customers
not to enter the shop if they are unwell or have
COVID19 symptoms;
FOODBUSINESSAFRICA.COM
IN RETAIL ESTABLISHMENTS, CONSUMERS
SHOULD ALWAYS BE ADVISED TO WASH FRUIT
AND VEGETABLES WITH POTABLE WATER BEFORE
CONSUMPTION. BOTH CUSTOMERS AND STAFF
SHOULD STRICTLY OBSERVE GOOD PERSONAL
HYGIENE PRACTICES AT ALL TIMES AROUND
OPEN FOOD AREAS
• Managing queue control consistent with physical
distancing advice both inside and outside stores;
• Providing hand sanitizers, spray disinfectants, and
disposable paper towels at store entry points;
• Using floor markings inside the retail store to
facilitate compliance with the physical distancing,
particularly in the most crowded areas, such as
serving counters and tills;
• Making regular announcements to remind
customers to follow physical distancing advice
and clean their hands regularly;
• Introducing plexiglass barriers at tills and counters
as an additional level of protection for staff;
• Encouraging the use of contactless payments;
• As consumers increasingly bring their own
shopping bags, advice to consumers to clean
their shopping bags before every use shall be
posted in the food retail premises (shops, outlets,
supermarkets).
• Minimise the risk of transmitting COVID-19 by
identifying high touch points in the retail premises
and ensuring these are cleaned and disinfected
regularly. These include shopping trolleys, door
handles, and weighing scales for customer use.
fruit and vegetables with potable water before
consumption. Both customers and staff should
strictly observe good personal hygiene practices
at all times around open food areas. In order to
hygienically manage open food displays and to
avoid the transmission of COVID-19 through surface
contact, food retailers should:
• Maintain frequent washing and sanitizing of all
food contact surfaces and utensils;
• Require food service workers to frequently wash
hands, and, if using gloves, these must be changed
before and after preparing food;
• Require food service workers to frequently
clean and sanitise counters, serving utensils and
condiment containers;
• Make available hand sanitizer for consumers on
their way in and out of the food premises;
• Should consider not openly displaying or selling
unwrapped bakery products from self-service
counters. Bakery products on open, self-service
displays in retail stores should be placed in plastic/
cellophane or paper packaging. Where loose
bakery products are displayed in retail stores, these
should be placed in plexiglass display cabinets and
placed in bags using tongs when customers are
served.
Food workers in staff canteens
Workplace canteens in essential frontline services,
such as food processing and food retailing, need to
remain open where there are no practical alternatives
for staff to obtain food. High standards of the public
health measures for handwashing and respiratory
etiquette need to be maintained in work canteens.
Operational standards staff canteens should include:
• Maintaining a physical distance of at least 1 metre
between an individual and other workers, including
in seating arrangements;
• Staggering staff work and break times to reduce
staff numbers in a canteen at any one time;
• Restricting non-essential physical contact as much
as possible;
• Visible notices for staff promoting hand hygiene
and physical distancing;
Cleaning and disinfection procedures for
Open food display in retail premises
It is important to maintain good hygiene practices equipment, premises, contact surfaces/ high touch
around open food displays, such as salad bars, fresh points, e.g. counter tops/tongs/service utensils/open
self-service displays/door handles. FBA
produce displays, and bakery products.
Consumers should always be advised to wash
Source: FAO
FOODBUSINESSAFRICA.COM
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
69
The food and beverage industry steps us efforts
to combat covid-19
By Virginia Nyoro
T
he Covid-19 pandemic has impacted
the food industry in Africa and beyond
more than anyone could have imagined
possible.
Even some of the most outrageous
predictions on calamities of this kind had
never thought the world could face such uncertain
and unprecedented times, threatening human life and
thereby upending the very nature of food industry
supply chains that are important for trade.
Beyond supply chain disruptions, food companies
in the Continent continue to face challenges with
getting vital supplies in, be they agricultural produce,
packaging, ingredients and other vital industry
services as travel bans and quarantine take their toll
on operations. Retailers have not been left behind,
with shortened operational hours and reduced sales
in most categories due to low customer numbers,
which could be further strained if the current situation
continues into May, June and the rest of the year.
The pandemic will surely hit Africa’s poor food
supply chains harder than most regions on the
world, with most companies putting in measures to
put the well-being of their employees’ health; safety
of production and distribution facilities; adopting
remote working for non-essential workers; serving
their customers; ensuring product safety and
70 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
availability; stopping business travel and supporting
communities in which they serve during the crisis
period.
“This pandemic is perhaps the greatest challenge
our country has faced since democracy and calls
on business, the private sector and communities to
work together to overcome the virus,” says Richard
Rushton, CEO of South Africa-based Distell Group.
The outbreak of the Coronavirus, which has
devastated the global economy and subjected
millions of consumers into economic hardships, has
indeed called for sector-wide collaboration, and the
food industry has not been left behind.
As government and corporates team up in efforts
seeking to bring to a close this period of uncertainty,
the food and beverage industry across the continent
has also been on the fore front in mobilizing resources
to provide the much needed support.
From alcoholic beverage manufacturers, canned
food producers, milk processors and millers, food
and beverage companies have brought to the table
their strengths in the fight against Covid-19, with
hundreds of companies providing support and relief
to communities most affected by the pandemic as
well as strengthened efforts to mitigate the spread
of the virus.
A vital part of managing the pandemic, many food
FOODBUSINESSAFRICA.COM
COVER STORY
companies also used their TV advertising platforms,
bill boards and social media platforms to pass on
critical information on how communities could
keep themselves free from the virus, including hand
washing tips – one of the key actions to control the
spread of the virus.
Below are some examples, not exhaustive of how
the food industry has come together to support the
communities
Enhancing consumer safety
In the East African region, The Uganda Manufacturers
Association (UMA) has unveiled plans of using up
to 7.3 million litres of alcohol in the stores of their
members to produce affordable sanitizers in efforts
to fight spread of coronavirus.
In Kenya, members of the Kenya Association of
Manufacturers have provided essential items such as
water storage tanks, hand-washing facilities, alcoholbased sanitizers and soaps, to create awareness on
the importance of washing hands and facilitate the
public actualize hygiene.
"THIS PANDEMIC IS PERHAPS THE GREATEST
CHALLENGE OUR COUNTRY HAS FACED SINCE
DEMOCRACY AND CALLS ON BUSINESS, THE
PRIVATE SECTOR AND COMMUNITIES TO WORK
TOGETHER TO OVERCOME THE VIRUS"
RICHARD RUSHTON, CEO - DISTELL GROUP
Kenya Breweries, a subsidiary of brewing giant,
East African Breweries Limited (EABL) committed
KSH 50 million (US$500,000) to facilitate the
production of 135,000 litres of sanitisers by two
Nairobi-based industries to distribute free sanitisers
to vulnerable Kenyans, while leveraging its extensive
supply and logistics network to distribute the hand
sanitizers across the country. It also distributed
awareness posters. In Uganda, Uganda Breweries, its
other affiliate donated sanitizers, food, mattresses
and fuel to be used by the authorities to facilitate and
feed the community.
In Tanzania, leading sugar producer Kilombero
Sugar Company donated 30,000 litres of alcohol to
the Tanzanian government to aid in the production
of hand sanitizers amid the spread of the corona
virus in the country. “One of the major challenges
facing the country during this crisis is limited
availability of affordable hand sanitizers as well as
increased demand for alcohol for manufacturers of
the sanitizers,” said Fimbo Butallah, KSC commercial
director while making the donations.
In Kenya Wine Agencies Limited (KWAL) is also
contributing to efforts to fight the spread of the
Coronavirus. The company donated 105,000 litres of
ethanol to Kenya Pipeline Company (KPC) who are
mandated to oversee a government initiative for the
FOODBUSINESSAFRICA.COM
mass production and distribution of hand sanitizers.
Other breweries that donated sanirizers include
Accra Brewery while Ghana Guinness Breweries
donated 1,500 Malta Guinness packs to the Ministry
of Information and also supported the Ministry with
the printing educational materials to be distributed
across the country using its existing distribution
channels. Further, Delta Beverages, Zimbabwea’s
leading beverage producer, donated USD$100,000
to Red Cross Zimbabwe for COVID-19 fight on behalf
of The Coca-Cola Foundation.
Food donations to vulnerable communities
Restriction of movement, as part of the containment
measures imposed by governments, has posed a
major challenge to majority of families who need to
leave their homes daily to earn an income to feed
themselves. To cushion the vulnerable communities,
companies have provided support in form of food
donations.
In Kenya, leading bakery and milling group
Broadway Group of Companies that brings donated
KSH 25 million (US$250,000) to the National
Covid-19 Emergency Fund. The donation consisted of
10,000 bales of wheat flour and cash to the national
and county to feed vulnerable communities.
Pearl Dairy Farm Limited, the largest dairy
processor in Uganda marketing its products under
the flagship brand LATO, donated liquid milk worth
UGX 345 million (US$91,600) to help in the fight
against the coronavirus pandemic, while Uganda’s
leading beer manufacturer, Nile Breweries donated
25,000kgs (25 tons) of maize flour to the ministry of
Health. The company said that the 4,166 bags each
containing 6kgs of maize flour will go towards catering
for the feeding needs of vulnerable Ugandans whose
lives have been disrupted by the on-going coronavirus
lockdown in the country. In addition, NBL also donated
1,600 litres of fuel to the local coronavirus task forces
IN NUMBERS
US$1.51M
TRADE KINGS CONTRIBUTION IN
ZAMBIA FOR COVID-19 ACTIVITIES
to facilitate movements of the district task forces.
Further strengthening community resilience
was Unilever East Africa, which spelt out a wideranging set of measures in the fight against Covid-19
pandemic that focused on people’s safety, essential
supplies and community support. The move came at
the back of Unilever’s global announcement that it
will contribute a total of US$649m through cash flow
relief as well as donations.
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71
COVER STORY | COVID-19
(US$3.22m) as a result of the incentives and staff
transport arrangement during the 21-day shutdown.
Bidco Africa, one of the leading consumer good
company in East Africa also provide the much-needed
boost to the Covid-19 Emergency Response Fund with
a KSh25 million (US$233,000) donation. Capwell
Industries, based in Thika Kenya, contributed food
products and other essential supplies worth KSH
20 million (US$200,000) while in Rwanda, Africa
Improved Foods offered free delivery services to its
customers across Kigali, Rwanda.
Distell, Trade Kings in the south
Distell, the South Africa-based producer and marketer
of wines, ciders, spirit and ready-to-drinks (RTDs)
has also joined its peers in the Southern Africa region.
The Amarula and Four Cousins brands owner
has adopted its production process to produce
hand sanitizers and other hygienic products at
its production facilities. As a result, the company
committed 100,000 litres of alcohol, which will be
used to produce sanitisers as well as a variety of other
hygienic and sanitising products.
The company also has taken further measures
to ensure it supports the government-sanctioned
lock-down by cancelling all events and closing all its
experiential and product tasting facilities until further
notice. Distell also announced a work-from-home
policy for all its employees who are not involved in
the production.
Trade Kings Group, a leading manufacturer of
fast-moving consumer goods in Zambia, through its
foundation has partnered with the Ministry of Health
and the Ministry of Information to launch the “Trade
Kings Foundation Campaign against the spread of
Coronavirus.” The company committed to providing
US$1.51 million towards this endeavour which have
been channeled into prevention efforts, providing
medical supplies and spreading awareness.
While the crisis has led to increase in prices of
necessities in retail outlets, South African processed
foods producer, Tiger Brands has made a commitment
not to increase the prices of any of its products during
the lockdown period. The company revealed that the
move would result to additional costs of R60million
72 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
Nigerian giants come to the fore
Nigeria, Africa’s most populous country, stands out
as a sore thumb in the continent, considering the
vast country and challenges the healthcare system in
the country could face in case of a significant corona
virus outbreak.
It is therefore encouraging to see the strong support
food companies have provided to the government to
mitigate and manage the pandemic in the country,
where numbers have been steadily rising.
Flour Mills of Nigeria (FMN), one of Nigeria’s
leading food business and agro-allied groups, has
strengthened the fight to curtail the spread of the
pandemic by redeeming a US$2.8 million pledge
to the Nigerian Private Sector Coalition Against
COVID-19 (CACOVID).
FMN revealed that it is procuring US$1.5 million
worth of medical supplies, which will rapidly beef up
Nigeria’s COVID-19 testing capability. The company
has also commenced deployment of US$840,000
worth of food relief packages in 12 states across the
nation to vulnerable communities hit by the lockdown.
Nigeria’s industrialist and the founder of BUA
Group, Abdul Samad Rabiu, has donated N1billion
(US$2.73 million) in cash through the BUA Foundation
to support the Federal Government’s bid to effectively
tackle the coronavirus scourge in the country. He also
donated testing kits and medical protective gear to
nine states in the country.
In his address at the presentation of the money
and medical equipment, the BUA Chairman said that
it was very important for the private sector to support
the government’s effort to curb the spread of the
coronavirus pandemic.
Honeywell Flour Mills, a flour-milling company in
Nigeria is partnering with the government in feeding
200,000 low-income families during the COVID-19
crisis. Other companies in West Africa such as
Accra Brewery Limited in Ghana have launched their
support to the communities to fight the spread of
COVID-19 with 10,000 Bottles of Hand Sanitizers in
150ml containers.
Efforts in the continent is also set to benefit from
a US$7.2 million donation from American food and
beverage firm, PepsiCo, which will be channeled into
Africa, the Middle East, and South Asia.
PespsiCo said that it will be is investing to scale
meal distribution among the most food insecure
populations in partnership with leading NGOs and to
support government-led responses to local needs.
As countries continue to impose more measures
aimed at curtailing the spread, experts have called
for more industry-wide collaborations in order to
strengthen these measures and accelerate recovery
of the global economy. FBA
FOODBUSINESSAFRICA.COM
COUNTRY
FOCUS
Uganda's Food, Beverage &
Milling Industry Makes it Mark
By Francis Juma
Uganda’s food, beverage and milling industry has made great strides, with
increased investments by local, regional and international companies. Food
Business Africa reviews the trends in investments in one of the most promising
African countries.
T
he East African country of Uganda has a
unique profile: vast agricultural potential,
a young and fast growing population and
a country that is well located at the entry
point to one of Africa’s remaining frontiers:
the Great Lakes region. After decades of
war and poor governance after its independence,
the country has increasingly become one of the best
options in Africa to set up businesses related to the
food industry
Uganda offers a wonderful location for businesses
that are looking at the emerging Great Lakes region
market - which comprises Uganda, Rwanda, Burundi,
Democratic Republic of Congo and South Sudan. Its
vantage position at the entry point to the Great Lakes
region provides businesses with access to a market
FOODBUSINESSAFRICA.COM
size of more than 120 million in one of the remaining
frontiers in Africa.
Uganda’s food industry has existed for a long
time, with some of the leading sectors like sugar
industry, where leading lights like Kakira Sugar and
Sugar Company of Uganda (SCOUL) having been
established in the early 1900s. Uganda is a leading
coffee and tea producer, as well as a leading oilseeds
producer in the region.
The country continues to draw in investments
led by a strong local entrepreneur base; regional
giants like Mukwano Group, Bakresa Group, Pembe
Flour Millers and Bidco Africa who have significant
operations in the country; and international giants
including Coca-Cola, PepsiCo, AB InBev and Diageo.
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73
COUNTRY FOCUS | UGANDA
Uganda's dairy sector has become one of the most vibrant in Eastern Africa, with investors lining up to boost the sector's performance
The fundamentals
With a population of nearly 45.5 million according
to the United Nations, the population of Uganda is
expected to rise to nearly 60 million in less than a
decade to 2030 and pass the 100 million people mark
by 2050, by which time it will be 18th in the world in
terms of countries with the highest populations, and
number 6 in Africa. The fast-paced population growth
rate in Uganda is due to the country’s exceedingly
high population growth rate of 3.32% per annum and
the total fertility rate of 6 children per woman – some
of the highest in Africa.
Uganda stands to gain great economic dividends in
terms of stable economic growth and available work
force due to its very young population. According to
the UN, 48.5% of its population is aged 0-14 years,
while 21.2% is between the ages of 15-24, meaning
that a whooping 69.7% of the country’s population is
below 25 years. Only 2% of its population is aged 65
years or older.
To add to the impressive population growth
numbers, is the surge in urbanization being
experienced in the country. According to the World
Bank, Uganda’s annual urban growth rate of 5.2% is
among the highest in the world and is expected to
grow to 22 million people by 2040, from 6.4 million
in 2014. The country therefore provides an abundant
resource base and a young consumer market for food
companies targeting the youth market.
Uganda is a country blessed with vast agricultural
potential, driven by good quality soils and a tropical
climate that opens up the country to abundant rainfall
and many water sources, including lakes, rivers
and swamps. The country has a substantial portion
of Lake Victoria, which is the source of River Nile,
74 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
Africa’s longest river and a lifeline to many countries
along its 6,400 km journey to the Mediterranean
Sea. Despite the agriculture sector lagging behind in
the adoption of the latest technologies, agricultural
productivity country has grown enormously with
the return of peace in the country over the last 30
years, with the country becoming a leading producer
of meat, poultry, fish, pork, coffee, tea, grains, milk,
fruits and vegetables, maize, oilseeds and may more,
which has earned the country the distinction of a
leading exporter of such commodities into the East
African market and beyond.
The vast agricultural resources have attracted
a growing list of local, regional and international
companies to set foot in the country to add value
to the produce, buoyed by the strong economic
prospects of the country and a young population.
In this analysis, we are reviewing some of the
emerging and interesting sectors to invest in in
Uganda.
KEY FOOD INDUSTRY PROSPECTS
Grain milling and bakery
The grain milling sector has grown extensively in
Uganda over the last 10 years, following the changes
in consumption habits as urbanization takes its
toll. Although bananas and other tubers including
cassava, continue to be part of the diet in the country,
the growth in consumption of maize (locally called
posho), rice and wheat flour continues to thrive
as young urban consumers dictate more of the
consumption habits in the country.
According to the United States Department of
Agriculture (USDA), in the latest available estimates,
FOODBUSINESSAFRICA.COM
Milled flour products on the shelf in one of the many supermarkets in Kampala
Uganda produced about 2.8 million
tonnes of maize, with consumption
of just above 2 million tonnes, while
rice production stood at 238,000
MT, compared to 346,309 MT
consumed in the country. Wheat
consumption stands at 500,000
MT compared to 20,000 MT
produced locally. From the above
figures, Uganda fails to meet its
demand for rice and wheat from
local production, key commodities
where local demand is forecast to
rise substantially, while although
local processing of maize is
increasing, the country is a critical
supplier of the commodity to the
East African market, especially
to Kenya, South Sudan and other
countries.
The grain milling industry in
Uganda is in its nascent stages,
even as regional giants Bakhresa
and Pembe continue to lead the
sector, and having invested more
than a decade in the country.
The recent entry of Mandela
Millers, with a new 300 tonnes
per day wheat and a 48 tonnes
per day maize milling plants, is
an indication that the country’s
milling sector has many untapped
opportunities. Another recent
investment in the sector was by
Master Grain Millers based in the
FOODBUSINESSAFRICA.COM
second city of Jinja, which was a
300 TPD plant. Uganda has also
seen the entry of tens of small scale
millers, which are increasingly
visible at the retail trade across the
country, to meet the rising demand
for maize meal and rice. The sector
has also witnessed some exits,
with Unga Millers closing its loss
making maize milling plant in the
country in 2017. In the rice sector,
one of the largest rice growing and
processing plants in East Africa,
the Kibimba Rice factory, which
packages the popular Tilda rice,
has been in operation for nearly
20 years.
The rising demand for wheat
flour in Uganda is largely driven
by the surging demand for baked
goods, including bread, biscuits,
cakes and cookies, as home
consumption of wheat flour
lags behind other East African
countries like Kenya and Tanzania.
The bakery sector in the country
is thriving, but from a lower base
and phase of sophistication. Some
of the most popular brands are
owned by Ugandan entrepreneurs,
including Hot Loaf, Ntake and
many others. Specialty bakeries
and cake shops, mainly located
within high end malls that dot
the main city Kampala, are also
growing in prominence.
An important component of
the grains sector, the animal feed
manufacturing industry in Uganda
is still at the development stage but
with huge potential, considering
the country is the leading supplier
of animal feed grains, oilseeds
and cakes to the region. A 120
tonnes per day chicken feed plant
by HRM-Rainbow a few years ago
at their farm indicates the huge
potential that investments of this
kind can help add value to the
livestock sector in Uganda.
Soft and alcoholic beverages
The soft and alcoholic beverages
industry in Uganda is one of
the most vibrant in Eastern
Africa, with a mix of local and
international brands sitting side
by side in the many retail outlets
and bars that give Uganda’s urban
and rural areas the famed fun and
entertainment hot spots in the
region.
In the soft alcoholic sector,
Coca-Cola
Beverages
Africa
(CCBA) and PepsiCo through their
local bottling partners Century
Bottling and Crown Beverages
Fresh Cuts is one of the leading meat processors in Uganda.
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
75
COUNTRY FOCUS | UGANDA
UGANDA HAS UNMATCHED COMPARATIVE
ADVANTAGE FOR GROWING FRUITS &
VEGETABLES DUE TO ITS WARM, LESS HUMID
TROPICAL CLIMATE. SOILS OF pH 5 TO 6.5 ARE
MOST IDEAL FOR THE FRUITS AND VAST AREAS
OF THIS TYPE OBTAIN IN UGANDA
- UGANDA INVESTMENT AUTHORITY
Uganda's brewing industry is vibrant, with AB InBev and Diageo
respectively, have invested heavily in the country,
with each seeking to be the leading producer of
carbonated soft beverages, energy drinks and water,
but they are not alone. An increasing number of
local companies led by the Hariss International, the
makers of the Riham brands have made their mark
in the growing and highly competitive market that
has seen several entrants in the last 10 years. CCBA,
which had acquired the country’s leading water brand
Ruwenzori from SABMiller, recently invested in 2018,
breaking ground on a new US$8.35million (UGX30.7
billion) packaged water bottling line more, part of its
US$15 million investment plan for Uganda in 2018.
Recent entrants in the soft beverage sector include
Kiri Bottling.
The alcoholic beverages sector in Uganda has also
witnessed a resurgence of investments, as the two
leading multinationals AB InBev (Nile Breweries – 2
brewing plants) and Diageo (Uganda Breweries –
one brewery and a distillery) jostle for the leadership
position. The sector has seen phenomenal growth
in the spirits market where tens of companies have
entered in the last 10 years, with one of them Premier
Distilleries recently investing in a new modern
processing and packaging plant, that takes the sector
into new territory, where other players include Chief
Distillers, among many more new entrants. Uganda’s
alcoholic beverages sector is also unique for its
proliferation of cottage makers of wine from local
produce, some of which have become known brands
in the region e.g. Bella Wine.
with pineapple the most widely developed and grown
commodity in the country, with mango not far behind.
“Uganda has unmatched comparative advantage
for growing fruits and vegetables due to its warm,
less humid tropical climate, plentiful rainfall and vast
opportunities for irrigation. Soils of pH 5 to 6.5 are
most ideal for the fruits (such as oranges, mangoes
and pineapples) and vast areas of this type obtain in
Uganda. These soils are rare in the world,” notes the
UIA.
There are about 4 main fruit processing companies
in Uganda, led by Britania Allied Industries and House
of Eden, while about 15 companies export fruits to the
European market regularly, leaving huge potential for
investments in the fruits and vegetables value chain
in the country. Opportunities exist in the production
and processing of a number of fruits and vegetables in
the country, including banana, avocado, macadamia,
tomato, onions and hot pepper.
The government has been a keen player to the
development of the fruit processing sector in the
country to tap into the huge potential, recently
commissioning a US$12.88 million pineapple
processing plant in Soroti and another one in
Nyakihanga worth US$380,000 to improve the fruit
supply chain in the country.
Meat, poultry and fish
The meat, poultry and fish value chains in Uganda are
very vibrant due as the country takes advantage of
vast land and water resources, abundant feed stock
from the crop value chain and a population that
consumes such products in many forms.
Uganda is a regional leader in the production of
fish, chicken, eggs, pork and other products, while the
livestock sector is thriving again after many decades
of low production. Opportunities exist to produce
and process poultry and meat products for the
growing local demand, regional and export markets,
especially for those markets that are seeking organic
products. However, apart from fish and some poultry
processors that have grown accustomed to the strict
requirements for the export market, the potential in
the poultry and meat value chain in Uganda to enter
the export market faces many barriers, including
failure to meet these requirements.
Fruit and vegetables processing
Some of the leading companies in this sector
According to the Uganda Investment Authority, include HMH-Rainbow, Fresh Cuts, Ugachick,
Uganda is the leading producer of fruits in Africa, Biyinzika, Uganda Meat, Sokoni Africa, Lake Bounty,
76 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
FOODBUSINESSAFRICA.COM
Greenfields Uganda, Fresh Perch,
Infra Uganda and Nyanza Perch
among others. The entry of RCL
Foods, South Africa’s largest
chicken producer and marketer
into the Uganda poultry industry
has changed the game, with the
firm’s products currently being
sold into the regional markets in
East Africa.
Dairy processing
The dairy industry has made great
strides in less than 15 years to be
the fastest growing and the number
two player in Eastern Africa in the
dairy sector.
With a production of about
2.4 billion litres per year, Uganda
is performing way below the
10 billion litres that the Dairy
Development Authority says is
its true potential due to a myriad
of challenges, chief of which is
the lack of adoption of the latest
practices and technologies at the
farm level.
However, on the processing
side, Uganda has made extremely
good progress, with leading player
Pearl Dairy, having an installed
capacity of 800,000 litres per day
and producing a array of products
including fresh and long life milk,
milk powder, butter, yoghurt,
flavoured milk and ghee for local,
regional and export markets. USbased Rise Fund managed by TPG
Capital recently took a 34% equity
investment in the company, joining
another investment by Kenyanbased Brookside Dairy that took
over the operations of Sameer
Agriculture and Livestock. Danone,
the French dairy giant owns a 40%
in Brookside Dairy. Other players
in the dairy sector include Amos
Dairy that processes anhydrous
milk fat, ghee, casein, and whey
for the export market; Jesa Dairy,
Rainbow dairy and many others.
The dairy industry in Uganda
continues to offer stiff competition
to other dairies in the region, with
milk products from the country
on sale and loved by consumers
across Eastern Africa. FBA
UGANDA - FACTS & FIGURES
GEOGRAPHY & POPULATION
Bordering Countries – DRC, South Sudan, Kenya, Tanzania, South Sudan
2020 Population – 45.5 million; Number 31 in the world
Population Growth Rate - 3.32%
Population distribution: Uganda’s population density is relatively high in
comparison to other African nations; most of the population is concentrated in
the central and southern parts of the country, particularly along the shores of
Lake Victoria and Lake Albert; the northeast is least populated
Total Area - 241,550 km2
Capital City – Kampala
Other important towns – Entebbe, Jinja, Mbarara, Gulu, Mbale and Masaka.
Languages - English, Swahili
Total Area – 241,550 km2; Land - 197,100 km2; water: 43,938 km2.
Capital city – Kampala
Currency – Uganda Shilling
Geographical features of note: Uganda is a landlocked country with fertile
soils. The country is has an abundance of water resources, with many lakes
and rivers. The country relies on neighbouring countries Kenya and Tanzania to
access port services, with which it also shares Lake Victoria, the world's largest
tropical lake and the second largest fresh water lake.
Climate – Uganda’s climate is tropical. The country is generally rainy with
two dry seasons (December to February and June to August). It is semiarid in
northeast, near the border with Kenya
ECONOMY
Economic prospects - Uganda has substantial natural resources, including
fertile soils, regular rainfall, substantial reserves of recoverable oil, and
small deposits of copper, gold, and other minerals. Agriculture is one of the
most important sectors of the economy, employing 72% of the work force.
Substantial investments have been made in the nascent oil sector, with
production expected to begin within 5 years, providing substantial potential
uptick in the economic prospects of the country.
GDP (IMF) - US$33.62 Billion
GDP Per Capita - US$735.01
Macroeconomic issues: The Ugandan economy reported strong growth
in 2019, estimated at 6.3%, largely driven by the expansion of services.
Services growth averaged 7.6% in 2019, and industrial growth 6.2%, driven
by construction and mining. Agriculture grew at 3.8%. Retail, construction,
and telecommunications were key economic drivers. Inflation is expected to
remain below 5%, strengthening the domestic economy. More than two-thirds
of the working-age population is in agriculture. The country is an important
exporter of food to the East Africa region.
Land use: Agricultural land: 71.2%; arable land: 34.3%; permanent crops:
11.3%; permanent pasture: 25.6%; forest: 14.5%; other uses: 14.3%
Natural resources: Uganda has a number of natural resources including copper,
cobalt, hydroelectric power, limestone, salt, arable land, gold.
GDP composition - agriculture: 28.2%; industry: 21.1%; services: 50.7%
Agricultural products: Coffee, tea, cotton, tobacco, cassava, potatoes, maize,
millet, pulses, cut flowers; beef, goat meat, milk, poultry and fish
Key Industries - Sugar processing, brewing, tobacco, milk processing, grain
processing; textiles; cement, steel production
Exports destination - Kenya 17.7%, UAE 16.7%, Democratic Republic of the
Congo 6.6%, Rwanda 6.1%, Italy 4.8% (2017 figures)
Main export commodities - Coffee, fish and fish products, tea, cotton, flowers,
horticultural products; gold
Source: World Bank; CIA, Government of Uganda, IMF
FOODBUSINESSAFRICA.COM
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
77
South Africa coronavirus lockdown: is the alcohol
ban working?
The ban on the sale and transportation of alcohol during the coronavirus
lockdown in South Africa has emptied hospital beds, ruined businesses,
provoked violence and political disputes, and has led to a surge of interest in
pineapples, writes the BBC's Andrew Harding from Johannesburg.
T
he idea was simple.
Ban all booze, and you'll prevent drunken
fights, reduce domestic violence, stop drunk
driving, and eliminate the weekend bingedrinking so prevalent across South Africa.
Police, medics and analysts estimate - conservatively
- that alcohol is involved in, or responsible for, at least
40% of all emergency hospital admissions.
In normal times some 34,000 trauma cases arrive
at emergency departments in South Africa every
week.
But since the nationwide lockdown came into force
last month to prevent the spread of coronavirus, that
figure has plummeted, dramatically, by roughly two
thirds, to about 12,000 admissions. "It's a significant
impact," said Professor Charles Parry, with some
understatement.
He has been modelling the extent to which the
alcohol ban has been responsible for the decline in
those numbers for South Africa's Medical Research
Council. "If we end the prohibition on alcohol sales,
we're going to see about 5,000 alcohol admissions
78 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
in trauma units coming back into the system [each
week]," he predicted.
Police minister 'gone rogue'
The fact that those 5,000 extra hospital beds now
stand empty could soon prove invaluable if the
pandemic - which has been held, impressively, in
check here for several weeks - begins to spread again
exponentially, as government advisors predict it may.
But medical experts, while urging the government
to keep the alcohol ban in place, also point out that
heavy drinking weakens the immune system and may
have a particular effect on respiratory conditions.
"Covid-19 is going to have a more severe impact on
heavy drinkers… and in South Africa many people live
in crowded conditions.
"So, alcohol sales… may increase community
transmission [as people often drink socially]… and
we're likely to see an increase in gender-based violence
and harm towards children," warned Professor Parry.
But how to enforce such a draconian and
unprecedented clampdown for five weeks, or possibly
FOODBUSINESSAFRICA.COM
THE ARGUMENTS AGAINST
LIFTING THE BAN MAKE
SENSE. A LOT OF PEOPLE
ARE UNEMPLOYED AND USE
ALCOHOL AS A GET-AWAY
DRUG. BUT AN APPROACH
THAT ALLOWS LIMITED SALES
MAY SAVE THE INDUSTRY
- APIWE NXUSANI-MAWELA CHAIR, SOUTH AFRICA BEER
ASSOCIATION
more if South Africa's lockdown,
due to end on 30 April, is extended
once again?
The man responsible for
policing the new prohibition has
provoked anger in some quarters
by appearing to encourage the
security forces to take heavyhanded, and potentially illegal,
action against those caught
breaking the rules. There have
already been numerous worrying
examples, including the alleged
beating to death of a man caught
drinking in his own yard.
Police Minister Bheki Cele, wellknown for his abrasive language
and his swaggering enthusiasm for
the alcohol ban, recently warned
that his forces would "destroy the
infrastructure where the liquor is
sold".
"It's deeply concerning when
you have senior political leaders
encouraging police officers to
use violence or force, or to break
the law. It seems as if the police
minister has gone rogue," said
Gareth Newham, a crime expert at
South Africa's Institute for Security
Studies.
South Africa's alcohol industry
initially sought to challenge the
ban in court, arguing that it was
unconstitutional and introduced
without consultation. It has since
backed down.
But while many in the industry
acknowledge the importance of
supporting national efforts to fight
the virus, there is frustration about
a "one-size-fits-all" approach that
is causing significant damage to
many businesses.
FOODBUSINESSAFRICA.COM
'It could be game over'
"It's not looking good at all,"
said Apiwe Nxusani-Mawela,
the country's first black female
brewery owner and chair of South
Africa's Beer Association, who
fears her small business may go
under if the ban continues for
much longer.
"The arguments against lifting
the ban do make sense. A lot of
people are unemployed and use
alcohol as a get-away drug," she
acknowledged, but she said a
more sophisticated approach perhaps allowing limited alcohol
sales - could save her industry
from collapse.
"It could be game over for us,"
agreed Nick Smith, an American
who owns a craft brewery outside
Cape Town. "This one-size-fitsall rule is having a major impact
on smaller businesses like ours,"
added Mr Smith.
Rise in home brewing
That argument is echoed by South
Africa's official opposition party,
the Democratic Alliance (DA),
which is in favour of a "smart
lockdown model" that would allow
people to buy alcohol for a few
hours each day.
But another party, the radical
Economic Freedom Fighters (EFF),
has called the DA's proposal
"murderous" and "racist" since
the current ban appears to be
having the most positive impact
on health in poorer, largely black,
communities.
Many people have compared
South Africa's prohibition to
the US's famous, decade-long
crackdown which began in 1920
in response to campaigning by
religious and moral groups, and
was immortalised by Hollywood in
films like Some Like It Hot and The
Untouchables.
As with Chicago's notorious
gangster, Al Capone, there are
concerns that the alcohol ban
could push the sector here into the
hands of criminals who already
control a lucrative chunk of South
Africa's cigarette industry.
"The longer the lockdown goes
on, the more criminal networks
will be able to entrench their ability
to sell and distribute alcohol,"
confirmed
Gareth
Newham,
warning that the government was
already losing a fortune in taxation
because of the ban.
The ban has certainly tapped
into deep undercurrents here in
South Africa - a country with a
history of apartheid where black
citizens were once banned from
drinking in public, and some
workers were even paid in alcohol,
causing huge social problems.
"We, South Africans, don't have
a good relationship with alcohol.
Over the years, it's something
that has to a certain extent got
out of control," said Ms NxusaniMawela.
But as things stand, one aspect
of the ban does appear to be uniting
people from different walks of life.
It has created a new enthusiasm
for home brewing, which has
always been a firm fixture in rural
communities.
Videos
and
recipes
for
pineapple beer and the more
traditional corn and sorghum
known as "umqombothi", are
now being widely touted on social
media, alongside warnings that
such drinks, if wrongly prepared,
could prove dangerous. FBA
Source: BBC
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
79
INVESTMENT
M&A
Neogen acquires food safety assets of Australia-based
Austrian packaging
manufacturer Alpla sets up Cell BioSciences
a new plant in South Africa USA – Neogen Corporation, an under Neogen’s name from Cell
SOUTH AFRICA – Alpla, an
international manufacturer of
plastic packaging based in Austria,
is building a new production site
near Johannesburg, which will
combine activities from its five
existing plants.
As part of the consolidation,
the production at its plants in
Harrismith,
Denver,
Isando,
Kempton Park and Samrand will
be transferred to the new plant
with more than 50 employees
impacted. The factory aims
to
simplify
and
optimise
manufacturing processes while
also contributing to improving
logistics
and
transport.
Construction of the new plant
began in February 2020 and is
expected to be completed by next
year. Standard bottle solutions
and tailor-made packaging for
the food, personal care, home
care, chemical, detergent and
pharmaceutical industries will
continue to be manufactured at
the new plant.
“Our new plant in Lanseria gives
us the opportunity to produce
according to modern, globally
applicable corporate standards,”
said Christoph Riedlsperger, Alpla
regional director for Africa, the
Middle East and Turkey. “In this
way, we not only improve the
quality of our products, but also
meet the high demands of our
global customers.”
In the past five years, Alpla has
significantly expanded its market
presence in Africa with several
acquisitions, in particular SouthAfrican based Boxmore Packaging,
which specialises in creating
PET bottles, PET pre-forms and
closures for drinks bottles. With
the construction of the new site,
the company aims to create longterm growth and competitiveness
in the Sub-Saharan African region.
America food safety test kits
supplier, has acquired the food
safety assets of Australia-based
Cell BioSciences, a major supplier
of food safety and industrial
microbiology products.
With these asset acquisition,
Neogen will now have a direct sales
presence across Australasia for
its entire portfolio, including food
safety, animal safety and animal
genomics. The US-headquartered
company
founded
Neogen
Australasia when it acquired The
University of Queensland-Animal
Genetics Laboratory in September
2017 and subsequently added
animal safety and life science
products to its offerings.
Neogen noted that it will
continue
to
operate
Cell
BioSciences’ food safety business
BioSciences’ existing Melbourne
location to ensure excellent
customer continuity, as Neogen
Australasia looks to centralize its
expanding operations in a future
location.
“This acquisition completes
the Neogen food security trifecta
of our genomics, animal safety
and food safety businesses under
the umbrella of our Neogen
Australasia operations,” said
Dr. Jason Lilly, Neogen’s VP of
international business, adding
the ability to directly sell to our
food safety customers allows us
to promote, market, and sell our
Neogen solutions throughout
the region, including to the large
vertically integrated beef and
dairy companies across Australia
and New Zealand.”
M&A
Tate & Lyle invests in Zymtronix’s enzyme immobilization
technologies
UK – Tate & Lyle has partnered
with Zymtroxin and made an
undisclosed sum of investment
in its cutting edge enzyme
immobilization platform that will
enable the US-based company to
drastically scale up its production.
Zymtronix has developed an
enzyme immobilization platform
that helps to transform ingredient
manufacturing
by
improving
the productivity of biocatalysis.
This is achieved through the
immobilization
of
enzymes
onto magnetic metamaterials
to increase the efficiency and
sustainability
of
enzymebased industrial processes. The
technology,
originating
from
Cornell University in Ithaca, New
York, has broad applications in
the food and beverage, flavour
and fragrances, pharmaceutical,
chemical
and
agricultural
80 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
industries.
Tate & Lyle’s investment
in Zymtronix will enable the
company to improve and innovate
upon their technology, with the
goal of scaling up their platform to
support process scale production.
Zymtronix is initially working with
Tate & Lyle to improve the use
of enzymes in the production of
certain ingredients and improve
cost efficiency.
“We are excited to harness
the power of Zymtronix’s enzyme
immobilization platform, which
will make our manufacturing
processes more efficient. The
platform also has the potential to
accelerate our ability to make our
ingredient solutions accessible to
more consumers,” said Andrew
Taylor, President of Innovation and
Commercial Development, Tate &
Lyle.
FOODBUSINESSAFRICA.COM
SUPPLIER
NEWS &
INNOVATIONS
INVESTMENT
BASF opens Customer Experience Centre in Kenya to support application of food
solutions
KENYA – German human nutrition
company and food ingredients
supplier, BASF has opened a
Customer Experience Centre in
Nairobi, Kenya to provide tailormade support for formulation and
application of food solutions.
The center offers an open space
architectural design that fosters
closer collaboration and nurtures
cross industry pollination, allowing
BASF and its customers to develop
tailor-made solutions. BASF said
that the Customer Experience
Centre, strategically located in the
capital of East Africa’s most vibrant
economy, will service the East
Africa market providing customers
with formulations and applications
that blend with local functionalized
solutions adapted for local taste,
texture and products.
“We know that food is closely
linked to culture – and that culture
is local. With our concept, we are
able to stay in close contact with
our customers and thus meet
their specific needs,” said Diana
Wairimu,
Account
Manager,
Human Nutrition. “Furthermore,
we can proactively work on
new food concepts to show
our customers how their future
products could potentially look
like.”
The company said that it will
also be able to proactively work-out
food concepts with its customers.
The food performance ingredients
manufacturer said that its experts
will support and work together with
customers to develop applications
for the specific needs and trends
in the food industry such as in
the development of cake, muffins,
creams and desserts.
BASF noted that facility is open
to offer support to all customers
in East Africa and will further
enable the company to work
collaboratively with distributors
and other partners, including
universities. The Nairobi Customer
Experience Centre joins a global
network of application centres
that BASF operates in various
continents. Including the Kenyan
centre, the company has a total of
8 application centres worldwide.
INVESTMENT
Bühler and Givaudan team up to open plant-based food innovation center in Singapore
SWITZERLAND – Bühler has
partnered with flavor and
fragrance house Givaudan to open
an Innovation Center dedicated to
plant-based food in Singapore. The
new facility, located at Givaudan
Woodlands site, will be jointly run
by the two companies, bringing
together a pilot plant featuring
Bühler extrusion and processing
equipment and a kitchen and
flavor laboratory by Givaudan.
FOODBUSINESSAFRICA.COM
The facility will be supported by
experts from both companies and
is planned to open in Singapore
later this year to enable the
companies better serve the Asian
market. The companies said that
the innovation center will welcome
food processing firms, start-ups
and university researchers looking
to develop novel plant-based food
products.
The investment will leverage
Bühler’s equipment and processing
expertise
combined
with
Givaudan’s flavor, taste, ingredient,
and
product
development
expertise. Both firms believe that
this combination will create a
unique offering and synergy that
will be greatly advantageous to
those developing new products,
particularly when using wet or dry
extrusion.
“We are very proud to launch
this initiative. It is a testament
that industry leaders can come
together to the benefit of the whole
food innovation ecosystem,” says
Fabio Campanile, Head of Science
and Technology at Givaudan.
“We are especially excited that
this project will take place in
Singapore, a diverse country at
the heart of Southeast Asia with
strong ambitions for the future of
food.
The firms forecast a lot of
market potential for plant-based
products in the coming years in
Asia, in particular, the alternative
meat sector. The Innovation Center
is currently under construction
at Givaudan Woodlands site in
Singapore while the full facility
opening is planned for the fourth
quarter of 2020.
MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
81
PARTNERSHIP
Symrise joins KitchenTown Berlin to support creation of a new sustainable food system
food products.
KitchenTown Berlin is the
European platform and second
location of the global innovation
network, KitchenTown founded
in 2014 in the San Francisco Bay
Area, USA.
Kitchen Town supports food
startups from initial product
concept, to scaling and market fit
through providing entrepreneurs
with access to facilities and
industry know how on product
development, commercialization,
and market launch. It creates an
EUROPE – Symrise has teamed up active global community of food
with KitchenTown Berlin, a food entrepreneurs and innovators to
and foodtech innovation network support one another and create a
set up to positively impact the new sustainable food system and
food system, to strengthen the in addition offers an accelerator
platform’s concept of scaling program where startups an
impact driven and transformational apply for funding and venture
development.
Through the partnership with
Symrise, KitchenTown will provide
the infrastructure and network
in EMEA while the ingredients
supplier will contribute expert
guidance, to jointly deploy the
right tools at the right time.
Symrise said that it will leverage
its state-of-the-art food facility
and co-working spaces to
facilitate collaboration and cocreation between its taste experts,
foodies, entrepreneurs and their
customers, the manufacturers of
food and beverage products.
“We have entered the innovation
network to ideate, create, and
grow new food and beverage ideas
in the smartest way possible and
we look forward to partnering with
KitchenTown Berlin and its startup
ecosystem,” Heinrich Schaper,
President Flavor at Symrise said.
INVESTMENT
Green Plains opens high protein ingredient production facility in the US
USA – Agricultural commodity processing company,
Green Plains has kick-started operations of its high
protein ingredient production facility located at its
Shenandoah Biorefinery in Iowa.
The company revealed that it has also made
the first shipment of the product from the facility
destined for one of the premier ingredient processors
and suppliers in the pet food industry.
“The completion of our first high protein ingredient
production project represents a major milestone in
our strategy to diversify our earnings and transition
towards the creation of more sustainable high value
products,” said Todd Becker, president and CEO of
Green Plains. “We can now provide a high-quality
82 MARCH/APRIL 2020 | FOOD BUSINESS AFRICA
protein feed product to the pet and aquaculture
markets, extracting additional value from each kernel
of corn we process in order to meet the growing
worldwide demand for protein and novel feed
ingredients.”
The high protein feed ingredient is produced
using Fluid Quip Technologies’ patented Maximized
Stillage Co-products system which the company said
adds a high value product to its portfolio. According
to a statement released by the company, the newly
constructed MSC system at Shenandoah represents
a US$38 million investment.
Shenandoah now has capacity to produce up to
50,000 tons of high protein feed ingredients annually
and has increased the annual corn oil production
capacity at Shenandoah by 20%.
Green Plains said that the Shenandoah Biorefinery
is now a complete end to end biorefining campus
with the capacity to process approximately 28
million bushels of corn annually and produce 50
thousand tons of high protein pet and aquaculture
feed ingredients.
The facility also has the capacity to produce 82
million gallons of low carbon, closed loop biofuels,
160 thousand tons of post MSC dried distillers’ grains
and 31 million pounds of corn oil.
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BROOKSIDE
DAIRY
BAKING:
CASHEW NUTS IN
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Replacing sugar functionality in
baked goods
UPCOMING AFMASS FOODTECH EVENTS IN AFRICA
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