< PreviousADM to meet demand for alternative proteins with significant capacity expansion ADM is to invest approximately $300m to significantly expand its Decatur, Illinois, alternative protein production, as the company continues to add capacity to meet strong demand growth. ADM will further enhance its alternative protein capabilities by opening a new, state-of-the-art Protein Innovation Center, also in Decatur. “The global trends of food security and sustainability are driving structural changes in the food industry, including strong growth in alternative proteins, and we’re investing to ensure ADM remains a leader in this vast and exciting space,” said Leticia Gonçalves, ADM’s president of Global Foods. The production increase represents a significant expansion of ADM’s alternative protein capabilities. The project – which is expected to be completed in the first quarter of 2025, subject to all applicable approvals and permits – will significantly strengthen ADM’s ability to meet growing global demand by increasing soy protein concentrate capacity and nearly doubling extrusion capacity at ADM’s Decatur complex. Smithfield Foods and Lineage Logistics unveil fully-automated, next-gen distribution center Smithfield Foods and Lineage Logistics have opened an automated, next-generation distribution center in Olathe, Kansas. Lineage designed and built the new facility to enhance Smithfield’s complex distribution network, which supplies thousands of destinations with frequent shipments of protein in varying quantities. Spanning nearly 20 million cubic feet with over 62,000 pallet positions, the distribution center’s innovations provide new levels of operational efficiency and reliability via automation. At the facility’s core are 18 automated cranes that move inventory into, out of and within the facility, which also features one of the largest temperature-controlled layer-picking systems in the world. Layer-pickers disassemble and reassemble pallets of goods, a process previously performed manually. As a result, the robotics and software fully automate over 97% of the product movement through the facility. “Our new facility in Olathe represents the pinnacle of supply chain technology. It combines innovations in robotics, numerical simulation, thermodynamics, algorithms, computer vision and software to enable reliable and efficient access to food,” explained Sudarsan Thattai, chief information officer and chief transformation officer of Lineage. 10 Food & Drink International www.fdiforum.net on line Key Technology introduces VERYX® digital sorters for fresh cut, hydroponically-grown leafy greens Key Technology, a member of the Duravant family of operating companies, introduces its VERYX® digital sorters for fresh cut, hydroponically-grown leafy greens. Combining Key’s expertise in sorting and conveying, VERYX sorters integrate with Iso- Flo® vibratory conveyors to find and remove defective product, as well as foreign material (FM), to improve product quality while simultaneously increasing yield. “Demand for hydroponic leafy greens is skyrocketing for a variety of reasons – superior taste, minimal water usage, zero pesticides and production location flexibility, since environmentally-controlled greenhouses can be built virtually anywhere,” said Marco Azzaretti, Director of Marketing at Key. “Hydroponic greens are a premium product, typically costing two or three times the price of traditional, field-raised greens. Hydroponic growers must consistently achieve the best quality to meet their customers’ high expectations. They want every single leaf to be perfect. This is why they partner with Key.” For more information visit www.key.net Diageo to make £40.5m investment in beer packaging facilities Diageo is making a £40.5m investment to expand capacity at its packaging facilities in Belfast, Northern Ireland and Runcorn, England, which is set to support the growth of Guinness Draught and Guinness Zero. The facility in Belfast will see its canning production more than double with a £24.5m investment that will convert existing warehouses into a new state-of-the-art packaging line capable of producing 72,000 cans per hour. A further £16m will be invested at the Runcorn site to significantly upgrade its bottling line and expand warehousing capacity. Diageo is making the investment to meet global demand for Guinness products from domestic and export markets, with the expansion set to support accelerated production and product innovation. It will enhance efficiency and competitiveness at both sites. Construction is set to begin immediately with capacity at both facilities expected to come online in 2023. © stock.adobe.com/ritablue Deirdre Delaney, operations manager at Diageo’s Belfast packaging site ©Matt Mackey New facility to bolster Singapore’s food innovation scene The Singapore Institute of Technology (SIT), Enterprise Singapore (Enterprise SG) and JTC have launched FoodPlant, Singapore’s first shared facility for small-batch food production that is licensed by the Singapore Food Agency (SFA). Located in JTC Food Hub @ Senoko, the facility’s opening was officiated by Mr Heng Swee Keat, Deputy Prime Minister and Coordinating Minister for Economic Policies. A key FoodInnovate initiative, FoodPlant provides affordable access to a wide range of pilot scale equipment, research and development (R&D) consultancy services, and upskilling courses. These services aim to equip local companies with enhanced capabilities to develop new, innovative food products in response to evolving consumer preferences. FoodPlant is expected to benefit at least 200 food manufacturers and support the development of at least 400 new food products by 2026. The 1,107 square metre facility boasts 12 rooms with specialised food production equipment. © stock.adobe.com/whitcomberd © stock.adobe.com/Africa Studio 04-11.qxp_Layout 1 25/04/2022 14:42 Page 7Fountain Hard Seltzer announces two brand-new flavours for spring and summer Fountain Hard Seltzer has announced two new flavours, which will be added to their hard seltzer range. The flavours, Watermelon and Raspberry, are being introduced this May, accompanying the brand’s existing Passionfruit and Mango flavours, perfectly timed for summer sipping. The two new products, Watermelon Fountain Hard Seltzer (5% ABV) and Raspberry Fountain Hard Seltzer (5% ABV), are bold and punchy, making the perfect refreshing drink for the warmer months ahead. Unlike most hard seltzer brands, Fountain is brewed using clean fermented alcohol, with no wines or spirits added – this process takes place in their Liverpool brewery and ensures a flavour-first experience. The drink is vegan with no added sugar, using only premium natural fruit, with sparkling water. Watermelon Fountain Hard Seltzer and Raspberry Fountain Hard Seltzer will be priced at £14 for a pack of six, £25 for a 12 pack. They will be available exclusively on the Fountain website and on Amazon. on the shelf Müller relaunches branded milk range with focus on health, recyclability and responsible sourcing Müller Milk & Ingredients has relaunched its branded liquid milk range, with a focus on health, recyclability of the packaging and responsible sourcing. The packaging has been redesigned to add further inspiration to the dairy aisle and informs consumers that the product is fresh from one of Müller’s supplying farms in Britain. Messaging to inform shoppers that the bottle is 100% recyclable and contains at least 30% recycled material have been added, while high in protein and 100% natural claims have also been incorporated, following consumer research by the business. Müller has also increased the amount of blue, green and red colour used on the labels to maximise visibility on shelf. The optimised designs will be visible across the fresh milk range, which includes Müller Milk, Müller Milk Organic, Müller Milk Extra and Müller Mini Milk. It will roll out across Müller Butter and Müller Cream in the coming months. Weetabix partners with Lyle’s Golden Syrup for new cereal Weetabix is teaming up with Lyle’s Golden Syrup to launch a new, HFSS-compliant cereal. Available from 24 May, the partnership between two of Britain’s best-loved products aims to tap into the ongoing demand for tasty, yet nutritious cereals. The ‘tasty cereal’ category has grown by 11% in the last two years, with taste now the number one purchase driver. Weetabix’s existing ‘Flavours’ range (Chocolate and Banana) have benefitted from the consumer desire for taste, seeing double digit growth in the last 12 months. Weetabix baked with Lyle’s Golden Syrup is high in fibre, low in fat and salt, and uses 100% British wholegrain wheat, ensuring it is HFSS-compliant. This pairing blends the distinctive sweetly-caramelised flavour of Lyle’s Golden Syrup with Weetabix’s classic biscuit. Weetabix baked with Lyle’s Golden Syrup is available across grocery, convenience and wholesale with an RRP of £3.29 (24 biscuit pack). Food & Drink International 11 www.fdiforum.net Eggo appeals to busy parents with Grab & Go Liege-Style Waffles Eggo is giving parents a new way to enjoy the most important meal of the day on-the-go with its latest breakfast innovation: Eggo Grab & Go Liege-Style Waffles, the first-ever Eggo waffle that doesn't require a toaster. The all new Eggo Grab & Go Liege-Style Waffles are bistro-quality handheld waffles, crafted with busy parents in mind. The waffles, inspired by a classic Belgian street food staple, feature a golden brioche dough and are baked through with crunchy bits of pearl sugar. These on-the-go waffles are made with real butter and no artificial colors or flavors and are now available in two flavors: Buttery Maple and Strawberry. Eggo Grab & Go Waffles are individually wrapped and can be eaten at room temperature – they thaw in under an hour – or can be enjoyed warm straight from the toaster. The Liege-style waffles are infused with maple flavor and other natural flavors, so no syrup or toppings are needed, making them a convenient, mess-free breakfast option for parents on-the-go. Foals’ Jack Bevan cooks up ‘Holy Fire Hot Honey’ with Sauce Shop Chart-topping band Foals’ drummer Jack Bevan has swapped the studio for the kitchen to create Holy Fire Hot Honey, in collaboration with condiment experts Sauce Shop. The limited-edition black hot honey drizzle is now on sale for £5.99 per bottle on Sauce Shop’s website. Being a long-time hot sauce fan, and especially of Sauce Shop’s fiery range, Jack devised a combination of sweet honey and habaneros before adding activated charcoal to make a unique dark elixir. The collaboration marks Foals’ first foray into food products, with Holy Fire Hot Honey listed as part of the band’s official tour merchandise, meaning it will be available at venues throughout the UK as Foals kick off their 2022 tour. “We feel so lucky to collaborate with Jack on his hot sauce, we are huge Foals fans and are excited to see Holy Fire Hot Honey as part of the official band merchandise,” said Pam Digva, co-founder and brand director at Sauce Shop. 04-11.qxp_Layout 1 25/04/2022 14:42 Page 812 Food & Drink International www.fdiforum.net IMPORT AND EXPORT T he UK’s food and drink exports and imports remain under close watch as the ripple effects of Brexit stay strong. Negative attention has turned to the nation again recently following recurring chaos at the UK’s busy Dover port and connected roads, halting crossings of the Channel. This has been blamed on the failure of Brexit IT systems, burdensome new customs checks, and made worse by disruption to P&O Ferries’ Dover-Calais route (after their controversial dismissal of hundreds of staff without notice). Associated delays have pushed food producers to share warnings of perishable goods losing value and going bad while stuck in queueing trucks, causing additional costs, and seen just in time supply chains hit. With this increase in unreliability, a loss of EU customers is anticipated, and with extra checks to come into force later this year, further problems may yet be arriving. It comes alongside a decline in trade with the EU, with sales to the EU falling by 12% in 2021, compared to 2020, with much of this drop in the first quarter of the year, when many UK businesses paused movements and supplied customers with stockpiled goods. Research shows, however, improvements towards the middle and end of the year. In contrast, there has been positive progress for trade further afield. According to the Food and Drink Federation (FDF), examining the latest developments in the UK’s exports and imports of food and drink in 2021, sales to non-EU countries grew over 8% compared to 2020. This was driven by a New opportunities meet recurring chaos While new trade deals are struck, the impacts of Brexit on food and drink imports and exports continue to be felt. While new trade deals are struck, the impacts of Brexit on food and drink imports and exports continue to be felt. New opportunities meet recurring chaos 12-15.qxp_Layout 1 25/04/2022 14:44 Page 1Food & Drink International 13 www.fdiforum.net IMPORT AND EXPORT © stock.adobe.com/ Виталий Сова strong recovery in exports of whisky (+18.7%) and salmon (+20.6%), and with breakfast cereals and soft drinks back above pre-pandemic levels. The FDF highlighted that exports to East Asia are recovering faster than in most other regions, with exports to China of food and drink worth over £800m and close to overtaking imports. This has been assisted by a new UK-Japan trade agreement coming into force in 2021. Steps forward can also be seen in Central and South America, with exports increasing by 62% since 2020 - above pre-pandemic levels. The Food and Drink Federation’s Chief Executive, Karen Betts, said: “These figures are encouraging, with rises in UK food and drink exports across the Americas and in Asia. Less good was our export performance in established markets in Europe and Australasia. But we have a good base to build on.” She continued: “The war in Ukraine is likely, however, to negatively impact our businesses’ trading ambitions, at least in the near term, with supply chains and trade routes disrupted. That underscores the need for business and government to work closely together, ensuring that companies can develop new markets and seize new opportunities in a difficult economic environment, to underpin their resilience.” The UK government’s efforts to secure new export destinations for the UK food industry have been picking up pace as of late, with for example the doors to the Chilean market recently opening to UK pork. UK pork producers 14 Á 12-15.qxp_Layout 1 25/04/2022 14:44 Page 214 Food & Drink International www.fdiforum.net IMPORT AND EXPORT will be able to export to Chile for the first time, in a move estimated to be worth £20m in the first five years of trade. It comes after UK pork access to Mexico and Taiwan. The UK exported £339m of pork in 2021, with more than two thirds going to non-EU destinations, which the government says illustrates the value of new markets. Agriculture and Horticulture Development Board (AHDB) international market development director, Dr Phil Hadley, said: “This announcement is the latest in a run of successful market access wins for the red meat sector and is another example of the high regard and reputation our products command overseas. Opening the market for UK pork to Chile, following gaining access to Mexico, will provide our pig farmers and processors with another valuable market to sell their products, providing a much- needed boost for the sector in difficult times.” Additional novel and expanded export opportunities are on the horizon with negotiations beginning with Canada for a new free trade agreement (FTA). The National Farmers’ Union (NFU) thinks negotiations, which build on a post-Brexit roll-over trade agreement, can push trade further and secure enhanced access to the Canadian market for poultry, which was excluded under the previous agreement, for greater volumes of dairy products including high-value cheeses and butter, and for sugar. The talks follow trade deals made with Australia and New Zealand, though these have not been without controversy, with inquiries launched. The UK-Australia Trade Deal, signed in December 2021, will, according to the UK government, bolster UK-Australia trade overall, and the size of the UK economy by £2.3bn, cutting UK import taxes on some Australian exports into the UK. The UK agri-food sector however, as indicated by the Environment, Food and Rural Affairs Committee, has expressed concerns over losing market share in their sector in the UK because of the cuts in UK import taxes, losing share in high-end meat cuts (such as steaks) because of the way tariff-free quotas work by weight, not quality; and a lack of a level playing field because of higher UK animal welfare standards. The Trade and Agriculture Commission (TAC) released a report on the FTA highlighting it as a © stock.adobe.com/ tommoh29 12-15.qxp_Layout 1 25/04/2022 14:44 Page 3Food & Drink International 15 www.fdiforum.net IMPORT AND EXPORT missed opportunity. In response to the report, NFU president, Minette Batters, said: “As the first deal to be struck under our new independent trade policy, this FTA provided a chance to set the standard for future deals which incentivise trade in food produced to higher environmental and animal welfare standards. However, it is clear from this report that the UK government has missed the opportunity to reach a genuinely innovative and world-class FTA with Australia. While it is reassuring that this deal will not result in a change in production standards here – for instance, imports of hormone-reared beef will still be banned – the report confirms that this FTA simply opens up UK agricultural markets for Australian produce, whether or not produced to the same standards that are legally required of UK farmers.” On the deal with New Zealand, meanwhile, Batters said: “Once again, there appears to be extremely little in this New Zealand trade deal to benefit British farmers. UK farm businesses face significantly higher costs of production than farmers in New Zealand, and margins are likely to tighten further in the face of rising input costs, higher energy bills and labour shortages. The government is now asking British farmers to go toe-to-toe with some of the most export-orientated farmers in the world, without the serious, long- term and properly funded investment in UK agriculture that can enable us to do so; the sort of strategic investment in farming and exports that the New Zealand government has made in recent decades.” On the other hand Dominic Goudie, head of international trade, the FDF, was more positive: “A trade deal with New Zealand is a welcome one for the UK’s food and drink manufacturers. Already exports of chocolate, coffee, biscuits and soft drinks are worth around £10m a year and removing tariffs on these products will drive significant further growth as UK production becomes more competitive in a global market.” As new markets are found for UK food and drink products, and the nation’s new relationship with the EU develops and adapts to significant barriers, concerns will continue to be raised over exports and imports post- Brexit. The future may not yet be in clear view, but there will be plenty of opportunities to grasp, as well as hurdles, to overcome. © stock.adobe.com/ klenger 12-15.qxp_Layout 1 25/04/2022 14:44 Page 416 Food & Drink International www.fdiforum.net SUPPLY CHAIN SPOTLIGHT I n prior years, the food industry and consumers enjoyed a relatively stable landscape and confidence that products would be waiting on shelves. Though undeniably complex, and while facing some blips, global supply chains kept in steady motion, formed on predictable demand and sourcing. COVID-19 however sent a shockwave through food and drink supply chains, one that continues to be felt in the pandemic’s third year. As we entered 2022, hopes of some sense of normality resuming were on the cards, yet congestion and delays in transport, at ports, in delivery of goods and across global networks, has extended, and more disruption has struck the sector in the form of Russia’s invasion of Ukraine, seeing fresh concerns and challenges for food producers. Crushing not only regional supply chains, companies and countries around the world are dependent on Ukraine and Russia for certain foodstuffs, such as wheat and sunflower oil, as well as vital fertilisers, triggering price spikes, while those less dependent on Ukraine and Russia for the production of products are still being impacted as strain is created from those seeking alternative suppliers. The challenges of COVID-19 and the war come alongside ever more severe labour shortages, which are placing increasing pressure throughout supply chains seeing unharvested crops left in fields to rot, the killing of healthy pigs due to a lack of staff at meat processing plants, food manufacturers cut capacity, and a lack of workers to pick and pack, as well as drivers to transport goods. The truck driver shortage has had a significant effect on supply chains in almost every industry, pausing movement of goods. With an ageing workforce this is only set to worsen, and with less trucking capacity available, it will only take longer for products to reach consumers. Inbound ingredients are being affected, knocking on to packaging and delivery schedules. This issue sits next to escalating prices, higher fuel and transport costs, shipping container shortages, and comes at a time when Brexit continues to influence the flow of goods and compound the driver shortage for the UK. Global supply chain pressures are seeing shortages and delays in ingredients, pulling products off shelves, hitting large and small businesses alike. With an unreliable supply, there could be long term impacts on bottom lines and reputations. A report from Mazars has emphasised the worry over supply chain issues. Focusing on the US, the 2022 Food & Beverage Industry Outlook indicates that the top concerns among leaders in the industry are shipping costs, container costs, and/or other unexpected fees at the pier, with 54% “very concerned.” One-third or more were “very concerned” about rising commodity and other costs (39%), needing to improve their supply chain (39%), delays due to shipping congestion (38%), and truck/driver availability (33%). Meanwhile 45% reported plans to increase suppliers in an effort to manage supply chain risk and costs in 2022, and 41% said they were making strategic investments in Food and Drink International considers some of the key challenges hitting the industry’s supply chains and potential solutions. Deep Deep 16-19.qxp_Layout 1 25/04/2022 14:46 Page 1Food & Drink International 17 www.fdiforum.net +44 (0) 1565 755000 • www.pal.co.uk supply chain diversification in response to COVID. Tackling disruption As supply chain disruption continues there are myriad actions businesses can take to survive. One such option is to expand the supply chain. The current crises hitting the food industry have shown that businesses cannot rely on a single supplier or port of entry anymore. Those who have sought out other viable options, making the chain more robust, and who have diversified their logistics, for example, are coming out on top, meeting customer expectations for reliability, overcoming material delays through ports with greater availability, and establishing plants in closer proximity - such as those in the US avoiding China in favour of South America. This is becoming particularly more appealing as ocean freight from Asia increases and the price gap closes for near-term deliveries. Businesses should also take a deep look into their logistics and re- © stock.adobe.com/Corona Borealis 18 Á 16-19.qxp_Layout 1 25/04/2022 14:46 Page 218 Food & Drink International www.fdiforum.net SUPPLY CHAIN SPOTLIGHT evaluate supply chains to mitigate disruption and address climbing shipping, labour, and storage costs. Every section of the supply chain needs to be optimised and streamlined, for instance by limiting wasted space on trucks which also helps in the driver shortage. Furthermore, preparation and planning remain crucial for avoiding future delays and shutdowns. Reformulation meanwhile may be the solution to some present issues. Supporting this, in the UK, the decision has been made to allow ingredients to be substituted on labels due to shortages. Commenting on this, the Food and Drink Federation’s Chief Scientific Officer, Kate Halliwell, said: “UK manufacturers are working hard to ensure food remains on shelves amid intense global supply chain pressures. We welcome the decision that companies can alter their labels to reflect the current lack of availability of sunflower oil.” She added: “Over the coming months, unpredictable ingredient shortages will make further changes to recipes and product labels inevitable. We will continue to work with the UK and devolved governments to ensure there is a rapid process to agree short-term substitutions as unavoidable shortages arise.” To address staffing issues, there is the opportunity to optimise supply chains with technology to help staff work more efficiently and minimise human error, whereas to attract and retain employees, it may be time to consider raising pay and adjusting staff benefits packages. The future of supply chains Ready to improve supply chains and resiliency in tough times is tech to boost visibility - set to be a key component in evolving supply chain strategies and essential for quick responses in a crisis. Food companies are realising the need to integrate Industry 4.0 technologies into their supply chains. Using modern software across farmers, manufacturers, logistics and delivery partners allow enhanced tracking and tracing of ingredients at any moment, across a network, and enables detailed documentation of ingredients and processes to be delivered. Tools being utilised include Artificial Intelligence (AI), Internet of Things (IoT), cloud, and automation, and real time data is facilitating the close monitoring of the movement of goods. Paired with predictive analytics, end to end visibility is enabled, and companies can forecast delays and disruptions. This additionally helps in adjusting to changes in the market and demand fluctuations. 16-19.qxp_Layout 1 25/04/2022 14:46 Page 3Food & Drink International 19 www.fdiforum.net SUPPLY CHAIN SPOTLIGHT © stock.adobe.com/Idanupong D Davies Turner Celebrating 150 years of pioneering service YEARS This enhanced visibility of supply chains will only become more important as companies react to modern expectations and regulations. Consumers want to know where their food comes from, how animals have been treated and ingredients have been grown, whether goods are sustainably sourced. Though some companies in the industry are restricted by legacy software and siloed operations, unable to be agile (bolstering supply chain problems across the world), many manufacturers and retailers have already set sights on gaining access to detailed ledgers that track and trace materials from farm to fork, allowing for possible problems in the supply chain to be identified, better predictions, increased food safety and easier recalls, and the potential for food fraud to be mitigated. Some companies are using continuous communication logs, with all players in the supply chain connected and exchanging data, whether that relates to cargo location, humidity and temperature readings, or inspection checkpoints. Moreover, data-driven intelligence can be leveraged in real time, to strengthen visibility, transparency and accountability across the food supply chain. The food industry’s supply chains continue to grow in complexity. If just a single link falters, the entire chain is jeopardised. Operations, production schedules, logistics and customer experience can all be upended. After persistent uncertainty over the past few years, there is no longer room for the industry to be unprepared for delays, shortages, and disruptions. 16-19.qxp_Layout 1 25/04/2022 14:46 Page 4Next >