< Previouson line 10 Food & Drink International www.fdiforum.net Ingredion acquires major stake in PureCircle, strengthens sugar reduction Ingredion, the plant-based ingredient solutions provider, is acquiring a controlling 75% stake in Malaysia’s PureCircle, one of the leading producers of stevia sweeteners. The deal, for an undisclosed amount, sees Ingredion strengthen its speciality in sugar reduction, an area it intends to invest in going forward. According to the company, stevia is a core product for the sugar reduction portfolio and the deal provides it with innovation and manufacturing expertise in stevia. The acquisition, which has been approved by the boards of both companies, will bring together PureCircle’s leadership in stevia together with Ingredion’s extensive portfolio of texturizers and functional build-back ingredients and expertise in formulating. The deal is expected to close in the second half of 2020 subject to approval by PureCircle’s shareholders and receipt of the required regulatory approvals. Nestlé expands blockchain to Zoégas coffee brand Nestlé has expanded the use of the IBM Food Trust blockchain technology platform to its Zoégas coffee brand. The company has launched select editions of Zoégas whole beans and roast & ground coffee in Sweden. This ‘Summer 2020’ range is a 100% Rainforest Alliance certified blend of arabica coffee beans from three origins – Brazil, Rwanda and Colombia. Through blockchain-recorded data, coffee lovers will now be able to trace their coffee back to the different origins. For the first time, Nestlé partnered with a trusted third party – 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. By scanning the QR code on the packaging, 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. Over the past three years, it has scaled up and diversified the use of blockchain platforms to bring its transparency and sustainability efforts to life for consumers. It started giving consumers access to blockchain with IBM on products such as Mousline purée and Guigoz infant formula in France. Together with OpenSC, Nestlé is also piloting open blockchain to monitor and openly communicate data related to the sustainability of milk and palm oil. Mondel ēz International accelerates plastic waste reduction efforts Snack food company, Mondel ēz International, is accelerating its plastic waste reduction efforts by joining two major sustainability initiatives. In becoming a signatory of both the Ellen MacArthur Foundation’s New Plastics Economy Global Commitment, and a participant in the New Plastics Economy Initiative, and a member of WRAP’s UK Plastics Pact, the company is doubling down on its zero-net waste packaging ambition. As part of the New Plastics Economy Global Commitment, Mondel ēz International will work towards the following eliminating problematic or unnecessary plastic packaging by 2025; making 100% of its plastic packaging reusable or recyclable; use 5% recycled content across all packaging used, and move away from single-use towards reuse models where relevant. As a member of the UK Plastics Pact, which is the first in a global network of Pacts which are aligned with, and support the New Plastics Economy initiative, Mondel ēz International c ommits to working towards delivering the UK Plastics Pact 2025 targets. These include eliminating unnecessary and problematic packaging and plastic products; ensuring all plastic packaging is recyclable in practice, and sing recycled plastic in our packaging wherever possible. As part of a long-term commitment to reduce environmental impact, the company set 2025 packaging innovation targets to ensure 100% of packaging is designed to be recycled, contains on-pack recycling information and contributes to the company’s commitment to reduce CO2 emissions. Today, 93% of the company’s total packaging, including both plastic and non-plastic, is designed to be recycled. Moreover, the company is calling for and participating in sector-wide collaboration to identify and scale up innovation, harmonise packaging formats to make recycling easier and improve waste management infrastructure. © Shutterstock/Kanittha Boon © Shutterstock/Teerasak Ladnongkhun © Shutterstock/Thasneem 04-11.qxp_Layout 1 04/05/2020 11:42 Page 7St Pierre Celebrates Evolution with Dynamic Brand Refresh UK brioche burger bun brand, St Pierre, has unveiled a new look that celebrates its French heritage and coincides with its launch into the multiple grocery channel with a national roll out in Tesco Supermarkets and Tesco Express stores from May. The refresh reinforces St Pierre’s rich Parisian heritage, which is at the heart of the brand and which continues to inspire it to this day. The new look retains the eye-catching signature orange colour of the brand and introduces an Art Nouveau style script for maximum stand out on shelf. Paul Baker, founder of St Pierre Groupe, explains: “For St Pierre, we wanted to celebrate our rich French heritage and this brand-new look does just that. Whilst we realise that this refresh and launch into the multiples comes at a challenging time for both the industry and the wider world, with rebranded packs heading into stores from May we felt the time was right to share our news.” Dash Water expands portfolio and introduces new peach flavour Dash Water, British Sparkling Water infused with wonky fruit and veg, has launched its new peach flavour for the summer. This will be the first time Dash Water has produced a new flavour since the launch of Blackcurrant in early 2019. Dash Peach is created using wonky peaches to naturally infuse the British sparkling water with a ‘dash’ of peach flavour. Dash Water is free from sugar and zero calories, offering a refreshing alternative to traditional soft drinks. Dash Peach will be available to purchase from off-trade stockists including Sainsbury’s and Ocado and available to purchase online at dash-water.com from the 9th April in 330ml cans, RRP £1.29. The new Dash Water uses peaches that are surplus due to overproduction or deemed too imperfect for supermarkets to delicately infuse the British sparkling water to create “the perfect soft drink choice for the summer months”. on the shelf Fridge Raiders launches Katsu flavoured chicken bites Fridge Raiders, part of Kerry Foods, has launched a limited- edition Katsu Chicken Bites flavour, the first launch in a series of new flavours that form part of the brand’s World Flavours range, initially launching exclusively with Asda. The new flavour will sit alongside the current Slow Roasted, Southern Style and Smoky BBQ Chicken Bites flavours. The launch responds to increasing consumer demand for Katsu flavoured products, with the flavour seeing a huge surge in popularity in the UK – 300% growth over the last five years, in fact. Within the ready meals category alone, Chicken Katsu is worth £16.9m RSV – demonstrating a huge opportunity for retailers to tap into. The new Fridge Raiders Katsu Chicken Bites flavour are made with 100% real chicken breast, making them a convenient and nutritious snack that truly delivers on the aromatic cues of spiced Katsu sauce. Harvey Nichols launches limited-edition Añejo tequila Harvey Nichols has teamed up with Patrón to create its very own one-of-a-kind Añejo Tequila. Exclusive to Harvey Nichols, this unique bottle is the first single cask Patrón to be made available in the UK. Patrón launched its single barrel program in 2014, allowing close friends and partners an opportunity to create their own Tequila. As guests of this iconic brand, Harvey Nichols travelled to Hacienda Patrón in Atotonilco El Alto, Jalisco and tasted through a variety of Tequilas. It was when Patrón poured the richest Añejo that Harvey Nichols decided, with a few additional months of ageing, that would become its Barrel Select. Distilled in January 2017, this 100% Blue Weber Agave Tequila was filled into a single Allier oak barrel. The Tequila was then matured in just such a barrel for 33 months – twenty longer than required by law to be called an Añejo and almost long enough to become an Extra Añejo. It was then filled into just 366 limited-edition bottles. Food & Drink International 11 www.fdiforum.net BrewDog teams up with metal band Lamb of God for AF beer launch Craft brewer BrewDog has teamed up with American heavy metal band Lamb of God to release the world’s first non-alcoholic collaboration beer. The beer is named after one of the band’s most popular songs, ‘Ghost Walking’, from their 2012 album Resolution. Lamb of God vocalist, Randy Blythe, wrote the lyrics as he started his journey toward an alcohol-free lifestyle. The collaboration, which started after Blythe was impressed by one of BrewDog’s AF (alcohol free) beers, provides non-drinkers, and people who may want a beer, but not the alcohol, a quality craft beverage option. Later this year, after the quarantine is lifted, Ghost Walker will be available to concert-goers attending Lamb of God shows in North America and Europe. The beer is available in BrewDog’s online shop for shipping anywhere in the world. 04-11.qxp_Layout 1 04/05/2020 11:42 Page 812 Food & Drink International www.fdiforum.net IMPORT AND EXPORT © Shutterstock /A vigator Fortuner Keeping trade flowing The global crisis created in the wake of the COVID-19 outbreak continues to wreak havoc on industries and markets around the globe and put increasing strain on supply chains. In our previous issue, we explored the measures being taken to try and curb the outbreak. Now the emphasis is on how the crisis is impacting international trade in the food and drink sector and what measures can be taken to try and limit the rise of protectionism. 12-15.qxp_Layout 1 04/05/2020 11:37 Page 1Food & Drink International 13 www.fdiforum.net IMPORT AND EXPORT In a joint statement released at the end of March, the director generals of the United Nations Food and Agriculture Organisation (FAO), the World Health Organisation (WHO) and the World Trade Organisation (WTO) claimed that uncertainty over food availability could light the touch paper on a wave of export restrictions and create a shortage on the global market. It should come as no surprise that such export restrictions are met with scrutiny and criticism on the world stage as they exacerbate and intensify pre-existing issues in the food supply chain such as food shortages and its subsequent price rises. With such restrictions in place, consumers – especially those on lower incomes and in poorer countries – will be met with higher prices, whilst food supply will be reduced all round. Speaking to The Guardian in March, Maximo Torero, Chief Economist of the FAO, said that while harvests have been good and the outlook for staple crops is promising, he cautioned that a dearth of field workers brought on by the coronavirus crisis and a move towards tariffs and export bans could mean that problems in the global supply could quickly emerge. So what can be done to try and avert this? In a three-point follow-up to its ‘Global food security during COVID-19’ analysis released in early April, The Atlantic Council GeoTech Center said that as ninety per cent of global trade volumes are from shipping, it is critical to keep ports and vessels functioning. In this latest report, it explores three food security issues posed by the crisis – food affordability; disruption of global supply chains, and trade policy – and outlines ways of mitigating these impacts. One of the biggest threats to the smooth running of ports posed by the pandemic and, thus, disrupting global supply chains, is, of course, staff sickness. As one sick staff member can infect many others, it can lead to several workers in a particular area of a port falling sick at once and result in difficulties in trying to replace them at short notice. But the fear of sickness, lockdown measures or a staff strike may also lead to disruptions, leading to workers staying away from their workplace. If the virus leads to food insecurity or other social problems within the local population around a port, the normal flow of freight may also be disrupted, the report said. Moreover, ship quarantines may delay the operations of ports if vessels must wait for a certain period before unloading/loading. These measures may be adopted in ports other than the one receiving goods but would still disrupt its operations. Mitigating these potential threats and keeping ports open will greatly depend on governments, the report says, especially in recognising that the port and associated operations are 14 Á 12-15.qxp_Layout 1 04/05/2020 11:38 Page 214 Food & Drink International www.fdiforum.net IMPORT AND EXPORT vital to food security, and all workers involved are essential. “Associated operations”, defined by governments, should extend all the way to those working in ship repairs/maintenance, it says, as delays in this could create bottlenecks further down the line. This means they must be able to access their place of work despite lockdown measures. In addition, lockdowns, when enacted by governments, should ensure that associated logistics operations are also not interrupted, such as road and rail freight, getting to and from ports. Where reducing staff sickness at ports is concerned, it says that, if possible, workers should be isolated within the port so that the spread of the virus among key workers is reduced and operations can continue. For seafarers, the report suggests implementing self-isolation for fourteen days prior to departure, pre-departure screenings and/or temperatures to prevent potentially affected individuals from starting a voyage. Crucially, it says that port operators should ensure they have reserve staff available so that even if workers fall sick, key operations can continue. However, this will most likely involve training new staff and will require flexibility and initiative from management and workers. Where health, safety and hygiene are concerned, the report suggests that strict hygiene measures must be adopted at the port so that the spread of the virus can be contained and offices/workplaces disinfected if workers with the virus are discovered. It also recommends medical agreements with destination port authorities, communication and agreements with destination port countries to determine offloading and treatment of sick or suspected infected personnel, along with the ability to obtain replacement personnel through air travel. Trade policy around the globe has been – and continues to be – affected by the pandemic. As of writing, at least sixteen countries have already issued food export restrictions or bans in a bid to bolster national stocks and keep domestic prices low. Real time tracking from the International Food Policy Research Institute (IFPRI) shows that 3.8 per cent of global calories are already restricted in binding and nonbinding measures. As the report points out, this figure is similar to 2007/08 when 4.7 per cent of global food calories were affected. Against this backdrop, countries such as Russia have threatened to escalate measure event further. Moreover, several countries have increased their grain import volumes in recent weeks, in response to the crisis and likely global shortages. Typically, the report says, these have been countries with large existing deficits in one or more key staples, such as Algeria, Turkey, Saudi Arabia and Egypt. While raising stockpiles helps to hedge against the risk of future disruptions to shipping, and provides reassurance for domestic consumers, it also places further pressure upon global trade, with upwards stresses on prices and scrambles for contracts. Unlike the financial crisis of 2008- 2009, recent harvests across most key grain producers have been good, and the current outlook for the coming 2020-2021 harvest is positive. However, the risk remains that individual concerns over food availability lead to countries scrambling to adopt protectionist measures, particularly as disruptions to trade from the virus rise and as governments wish to be seen to act. On top of export bans potentially inflating crop prices, most emerging market currencies have been depreciating relative to the US dollar due to the virus, exacerbating the impact of price rises in local currency terms, the report said. Due to the economic stress of COVID-19, there is a real risk that the poorest countries will struggle to afford the added cost of imports. Where governments are 12-15.qxp_Layout 1 04/05/2020 11:38 Page 3Food & Drink International 15 www.fdiforum.net IMPORT AND EXPORT Ukraine mulls ban on wheat exports, minister claims Ukraine, one of the world’s top grain exporters, has announced it will ban wheat exports if its sales exceed limits agreed with traders, according to Taras Vysotskiy, the deputy economy minister for agriculture. The move was preceded by a March call from Ukrainian bakers and millers to limit grain exports to maintain bread prices in light of the coronavirus crisis. In response, Maria Chaplia, European Affairs Associate, said that banning exports in order to ensure unimpeded and sufficient supply to the domestic market is a well-intended policy but one that will have adverse economic effects in the long-run. “Export bans are a natural response to the emergency situation caused by the pandemic. The aim is to prevent a shortage of supply and spikes in grain prices. But the worry is that this move will lead to losses in the future in the form of hijacked relationships with trading partners and damaged export capacity,” said Chaplia. “Grain exports are a crucial part of Ukraine’s economy, and banning or restricting them will hurt domestic exporters. It is likely that they will ask for some kind of subsidy from the state to sustain their production. Ukraine, a country simultaneously at war with Russia and coronavirus, indebted in and out, cannot afford it. “But it’s not just Ukraine. Multiple countries have signalled their willingness to turn inwards. Recently, Romania introduced a ban on the export of grains and processed grains (including bakery) outside the European Union, and Romanian farmers have already voiced their concerns. “Though tempting, economic nationalism is incredibly expensive, especially in the long run. It is a wolf in sheep’s clothing that will push the Ukrainian economy even further down.” resource constrained, this suggests rising prices will have to be passed on to consumers at exactly the time that they are losing purchasing power, causing many to lose food access. However, the report said it is important to stress to governments that none of this price rise is necessary from market fundamentals, with global crop production currently healthy as long as measures are taken to insulate systems from the virus. By adopting heavy-handed trade measures, major exporters run the risk of alienating key partners at a time of great global stress via unnecessary export bans/restrictions, and undermining their own long-term export markets. In turn this could affect traditional political allegiances, and could shift power dynamics where there are existing geopolitical tensions. Continuation of global trade in food and drink is imperative and keeping the import and export of food and drink flowing without restriction has never been more critical. But there exist a great many challenges in place putting pressure of ports and international markets. As this article has explored, however, there also exist solutions and measures that can be used to help mitigate these effects and ensure a free flowing, secure and stable supply throughout the pandemic and beyond. © Shutterstock /Subbotina Anna © Shutterstock /T ravel mania 12-15.qxp_Layout 1 04/05/2020 11:38 Page 416 Food & Drink International www.fdiforum.net SUPPLY CHAIN SPOTLIGHT Increasingly complex The food and drink supply chain is under increasing scrutiny from not only legislators but consumers. As a result transparency, traceability and sustainability must be heightened. 16-19.qxp_Layout 1 04/05/2020 11:44 Page 1Food & Drink International 17 www.fdiforum.net SUPPLY CHAIN SPOTLIGHT © Shutterstock /FGC The food supply chain continues to grow more complex, crossing numerous borders and switching between many hands while moving from farm to fork under quickening delivery times. It is vital that supply chains are fully traceable, not only for instances of food recall, fraud and to meet legislation, but as consumers increasingly demand full information on their food, where it comes from, what it contains, its production conditions, environmental impact and seek proof of statements like GMO- free. For members of food supply chains significant investment is entailed to meet these desires, however this simultaneously presents an opportunity for improvements. The supply chain management (SCM) systems of today are end to end suites helping food firms optimise supply chains as one system that diminishes silos. Organisations in the food supply chain can no longer only be responsible for tracing just one link up and down from themselves. With transparent supply chains now required, they must share real time information and enable interaction with all participants in the chain, whether the party is an importer, distribution centre, processing facility or farm. Software investments for supply chains are therefore focusing on cloud-based solutions or SaaS, with its benefits of data security, connectivity, lower total cost of ownership, future proofing and scalability. These software solutions feature transport, asset, inventory and warehouse management, as well as provide real time visibility and demand planning amongst other applications. As supply chains are adopting transparency solutions to gain consumer trust, blockchain and the Internet of Things (IoT) are allowing them to be tracked from farm to fork, while presenting data that can be utilised to uncover inefficiencies. Linking data across the supply chain, though still relatively experimental, blockchain can be used to encrypt vast amounts of data and provide it to others through for instance an RFID tag, which when scanned purveys product information for authentication and tracing. With blockchain - a secure and immutable shared digital ledger providing a permanent record of transactions - each aspect of the supply chain, from when a fish was caught to a product’s storage conditions, can be logged and made transparent to other members of the chain and potentially consumers. In this, blockchains are also a contender for speeding up recall processes. 18 Á 16-19.qxp_Layout 1 04/05/2020 11:45 Page 218 Food & Drink International www.fdiforum.net SUPPLY CHAIN SPOTLIGHT Blockchain also abolishes manual transitions between steps in the supply chain. With smart contracts of code written into the blockchain, as conditions are satisfied, it automatically moves the process on to the subsequent task, removing miscommunication and saving time. Predictive analytics can be further implemented to bolster the tracking abilities of blockchain to gain insight into future operational performance. The IoT and its associated technologies, meanwhile, are boosting the connectivity of the supply chain, offering enhanced food tracking - streamlining and recording all processes related to a product. IoT devices are able to collect information through sensors on machines and goods and convert it into digital data, increasing visibility of goods as they move through the supply chain. With this, companies can show that they source and produce their products ethically and are responsible. Not only does this allow for transparent marketing to socially conscious consumers but helps create a more responsive supply chain. With sensors enabled by the IoT, one can also keep track of shipments, their location and product conditions to provide accurate delivery ETAs, highlight delays and present updates on the environmental state products are being transported in. This is particularly important where perishables are concerned and within the cold chain where temperature variation can lead to spoilage, mass waste and threats to consumer health. IoT sensors offer sophisticated condition tracking to confirm factors like temperature exposure and any variations. In doing so, one can reduce rejected goods and recalls. One may employ wireless temperature monitoring devices to unlock interaction with real time information to mitigate problems as they arise, before products are harmed. IoT is just as useful in the warehouse, where sensors on goods communicate with warehouse management software to send alerts on items and inventory levels to supply chain managers. Able to analyse this information on inventory levels alongside data on product trends and use, firms can manage inventory more efficiently to avoid shortages or overstocking and subsequent waste. Additionally within the warehouse, with IoT asset trackers, real-time location data can be used to see the exact location of products, which is helpful in finding misplaced items fast. IoT sensors can also be utilised to predict equipment and vehicle wear and tear and notify maintenance teams for timely repairs and part orders to prevent downtime that can have a knock-on effect on the rest of the supply chain, causing major inefficiencies. Though IoT devices hold a key role in tracking goods and equipment they also offer significant benefits when coupled with AI to handle the vast amount of data collected. This data can be analysed by AI and machine learning to make predictions to optimise the supply chain. For example, more accurate demand forecasts can be made. AI makes probabilistic forecasting in particular easier, assessing large amounts of data from news, events and weather amongst other sources to predict demand more confidently. Those dealing with warehouse management can also use these predictions in automated processes that arrange stock for picking based on demand. While craving more transparency consumers are also asking for the supply chain to become more sustainable and responsible as purchasing decisions focus more on ethics. With the food supply chain accounting for twenty-four per cent of global carbon emissions from farm to fork much needs to be done. This is of course not easy with a plethora of suppliers and parties involved. Sustainability must be integrated into SCM and system inefficiencies addressed, such as uncovering and rectifying unnecessary energy use. One area in which sustainability can be enhanced is the transportation of goods. Alternative fuels are being explored for trucks and ships to reduce the environmental impacts of the supply chain. Hydrogen is a frontrunner amongst sustainable fuels, and when burned with oxygen releases just water. However it still needs to attract significant investment to be scaled up, though a number of feasibility studies are underway. Meanwhile route optimisation is being utilised to reduce mileage and carbon emissions. Demand is also seeing a shift to more sustainable packaging options. This is forcing adjustments in the supply chain, with plant facilities and production lines being switched over to accommodate new materials. New packaging products must too be closely monitored to see that they are performing as required. In shipping and transport, switching to new packaging may see changes in shipping weights and thus costs, while new handling and storage procedures may need to be introduced. Many will turn to scenario modelling software and 16-19.qxp_Layout 1 04/05/2020 11:45 Page 3Food & Drink International 19 www.fdiforum.net SUPPLY CHAIN SPOTLIGHT transport management systems to assess these impacts. Food waste in the supply chain is additionally of growing concern for conscientious consumers. This can initially be reduced in farming and sorting, to make use of as much of what is produced as possible. Repurposing is one important solution, where an apple may not be high quality enough to be sold in its own right but suitable for juice, to ensure waste is the last resort. With sensor-based sorting systems, a product’s quality level can be determined to enable those of a lower quality to be reused for another purpose, whether that be another food product or animal feed. This allows one to maximise yields and recovery. Further, with digitalised supply chains and IoT all members can gain access to information to be pre-warned on the specificities of a batch to adjust equipment to get the most value possible from said batch and plan to accommodate variation and reduce waste. Though all Food and Drink International has discussed is having a major influence on the evolution of the food supply chain, current concerns are hotly focused on Coronavirus and the challenges it has generated. As COVID- 19 reinforces the importance of a strong food supply chain, it also highlights its fragility. Recent stockpiling has seen supermarkets witness major product shortages, and the call for home deliveries has skyrocketed. As a result food and drink supply chains have been tested, dealing with serious disruption. While stores and warehouses look to restock as quickly and efficiently as possible, the shutdown of the hospitality industry has added to disruption, impacting a supply chain that is formed on predictability and ready to use goods, seeing heightened waste. Concurrently the supply chain is handling a reduction in staff availability due to illness and social distancing guidelines, which is providing an extra burden in logistics which already faced a significant worker shortage for warehouses and drivers, while reduced staff in skilled roles like butchery are compromising throughput. Alongside this shipping has seen slowdowns because of port closures. COVID-19 is touching all aspects of the food supply chain, causing delays in picking produce, processing, and transport. As a result major change is expected across food supply chains which will likely have a lasting impact for years to come, altering the industry. © Shutterstock /Aleksandar Malivuk 16-19.qxp_Layout 1 04/05/2020 11:45 Page 4Next >