‘Save And Safe’ Goes The Distance
Retailers are constantly trying to find out what consumers, want. And as retailers serve consumers directly, manufacturers and exporters are trying even harder to keep up with them. So what do they want?
More aggravatingly, consumers, the eternally tough breed to please, are making exporters and importers go to greater lengths before the latter’s products can indeed be literally termed FMCGs (Fast Moving Consumer Goods). How fast the product moves generally determines how much shelf space a retailer is willing to offer.
Increasingly, here’s what modern day consumers want (and in turn what retailers demand): In order to save the earth, they are demanding packaging that can be easily recycled. In order to reduce carbon footprints, they are encouraged to buy local. In order to enjoy a better quality of (convenient) life, they want tasty products that are as far as possible natural, and long lasting at the same time.
Among food companies, exporters and importers have to tread so many extra miles to meet these requirements. Besides having to meet the often-varying import requirements of different countries, their greatest challenges stem from distance.
Transnational transportation forces companies to look closer into factors such as product shelf life and net weight. If these are not tackled properly, these companies may be shipping worthless but costly weight and wrappers, and more frequently, thereby paying for more fuel charges. Or, they could invest more in finding ways to reinvent and reduce packaging weight. Both approaches add costs.
The right kind of packaging can ease a lot of these barriers and help exporters increase profit margins through cost savings. For example, in Singapore, the country’s National Environment Agency has embarked on a Packaging Agreement, specifically with the food and beverage industry for a start. The aim is to encourage a commitment to innovatively and actively reduce packaging content and waste in consumer products. Active packaging technology, and especially sorbent technology, also has a role to play by serving as the method of preservation, allowing manufacturers to bring in-demand products to market, according to Robert Sabdo, Business Development Leader - Food & Beverage Packaging, at Multisorb Technologies.
Most importantly, the correct and responsible use of packaging improves and ensures food safety. In view of the global financial crisis, manufacturers must be looking at ways and means to cut costs. But this is no excuse as cause for yet another food safety crisis. At the end of the day, it is about ‘save and safe’, never ‘safe versus save’. When the product is not safe to consume, there is really no more dollars to save, and nothing will salvage it from being phased out.
Sydney, Australia: US food company H.J. Heinz Co. has launched a AUD 288 million Australian dollar (US$216 million) takeover bid for Australian food producer Golden Circle Ltd. at AUD 1.65 per share. At least 75 percent of Golden Circle shareholders – are scheduled to vote on the bid at a November 13 meeting – would have to approve this deal. Approvals must also be obtained from the Foreign Investment Review Board and the Supreme Court of Queensland.
Golden Circle manufactures more than 500 products, including canned fruit and vegetables, fruit juices, drinks and jams. The company is known for producing one of Australia’s sweetest pineapples.
Bangkok, Thailand: Sugar producers in Thailand are expected to delay the sugar crushing season by as much as a month. Crushing, which usually begins in November, may be postponed to December, as millers are reluctant to put new supply onto the depressed world market.
In a Reuters report, a trader said, “We just want to wait for a while and start crushing when prices are a bit higher than the current level.” According to an official at the Thai Sugar Millers Corporation, a meeting on November 3 would be held to determine the exact date crushing season can begin. Traders, expecting to export 4 million tonnes of sugar in 2008/09, also predicted that farmers would stage protests as millers would not be purchasing their sugarcane until much later.
According to the latest government survey in mid-October, Thailand is slated to produce 7.2 million tonnes of sugar in 2008/09, slightly lower than an earlier forecast of 7.4 million tonnes due to dry weather in some cane-producing regions.
Mumbai, India: In a Reuters report, industry officials said coffee harvesting in India is expected to begin a month early this year as early blossom showers have expedited ripening of berries. In India, Arabica harvesting normally begins in December and robusta in February. Arabica is used for producing premium coffees while robusta is added to Arabica for a lower-priced option. Robusta is mainly used in processing instant coffee.
India is expected to produce 100,000 tonnes of Arabica crop and 193,000 tonnes of robusta for 2008/09.
However, estimated total coffee output by the Coffee Board is expected to decline by five percent due to untimely rains in important coffeeproducing areas especially Karnataka. Coffee seeds will fall off ripened fruits which become bloated with water due to excessive rainfall.
Anil Bhandari, a large coffee planter and member of the Coffee Board of India, said that coffee harvesting can begin immediately in mid-November if the rain stops.
Manila, Philippines: Philippine export of coconut oil fell as low as 36,060 tonnes in August and only topped 100,000 tonnes twice this year. Spokesperson of the United Coconut Associations of the Philippines, Yvonne Agustin, told Reuters that the country could not possibly meet its target of 1 million tonnes this year.
She said, “To be able to reach 1 million tonnes, we should be exporting more than 100,000 tonnes (a month) from October to December and I think it will be very difficult to do that right now.”
Used in food, cosmetics and biodiesel, coconut oil faces stiff competition from cheaper palm kernel oil which has increasingly become the preferred option for European traders. Domestic consumption, however, is expected to increase due to the expansion in oleochemical capacities.
Hanoi, Vietnam: Vietnam, the world’s second biggest exporter of rice with India, is proposing to ease rice export rules including waiving a floor price until February next year when the largest crop harvest begins. The country is expected to export 4.6 million tonnes of rice this year, just slightly higher than last year’s exports at 4.5 million tonnes.
Reuters quoted a government report that shows Vietnam’s rice shipment dropped nearly seven percent between January and October from the same period last year to 4.09 million tonnes. In October, freely traded Thai rice fell to US$ 630, while traders and exporters said that five percent rice can only be traded at a maximum US$ 480 per tonne.
Vietnam’s Industry and Trade Minister Vu Hyu Hoang is reported to have asked its Finance Ministry to help boost exports by waiving the rice export tax measure which was put in place earlier this year to avoid a shortage in food supply in light of the global food crisis. However, the export tax has been hurting farmers as Thai prices have declined by half. Hoang also proposed a lower interest lending rate to exporters so that they can purchase mounting stocks from farmers.
Exporters should also be allowed to ship their grain without having to register their contracts with the Vietnam Food Association to secure clearance for loading. The association’s role is to check export prices to ensure Vietnamese rice is sold at profitable rates but the exporters claim that prices were set without referring to actual market supply and demand.
The Industry and Trade Ministry also reported that Vietnam will ship 650,000 tonnes in November and December to reach the annual rice export target of 4.6 million tonnes.
Tokyo, Japan: After sealing a US$ 770 million deal for Danone’s Frucor juice unit, Japanese company Suntory Ltd is prepared to spend another US$ 2.2 billion on further acquisitions to expand. Satoshi Hamaoka, Suntory’s head of public relations told Reuters, “We want to actively pursue acquisitions regardless of whether they are at home or overseas.” Suntory is famous for its Boss canned coffee, Yamazaki single malt whiskey and Malt’s beer.
Apart from Suntory, Japanese rivals Kirin Holdings and Asahi Breweries are also eager to bid for overseas assets. According to Reuters, Japanese food and beverage companies have made US$ 2.8 billion worth of cross-border deals this year, which is 13 times the amount spent in 2007. Suntory’s cash pile, however, is 4 times Kirin’s at US$ 2 billion. Frucor, which sells fruit juices, energy drinks and water in New Zealand and Australia, is Suntory’s biggest acquisition so far.
Kolkata, India:Controlled by the Brij Mohan Khaitan group, McLeod Russel India (MRIL), the largest integrated tea conglomerate in the world, has announced that it plans to buy a 72.38 percent stake in the Moran Tea Company (India), Food India News reports.
The acquisition, along with its merger with subsidiary Doom Dooma Tea Company, will allow MRIL joint control of some 56 tea gardens a combined annual output of 75 million kilos of tea. Presently, the Khaitan group holds a 2.5 percent stake in Moran Tea through its investment companies United Machines and Metals Centre.
Wellington, New Zealand: Foodstuffs, a grocery co-operative operating in New Zealand, has won its bid in purchasing Liquorland from DB Breweries. Foodstuffs New Zealand Managing Director Tony Carter said, “Supporting independently owned and operated businesses is what we do best. We think it’s a great fit for both the Liquorland brand and our future growth strategy.”
Foodstuffs comprises three sister companies, Foodstuffs (Auckland) Ltd, Foodstuffs (Wellington) Co-operative Society Ltd and Foodstuffs South Island Ltd. Their other retail brands include PAK’nSAVE, New World, Four Square, Henry’s and Duffy & Finn’s.
Commenting on the purchase, DB Breweries Managing Director Brian Blake said, “Liquorland has been a profitable and important part of our portfolio over the years, and, as the business wasn’t for sale as such it was critical to us that we found the right partner to ensure Liquorland – both the business, and the people – would be in good hands.”
Jakarta, Indonesia: The world’s largest instant noodle maker, PT Indofood Sukses Makmur, announced that it has recorded a net profit of 1.136 trillion rupiah (US$ 108 million), in the first nine months of the year. Sales revenue rose 29.9 trillion rupiah mainly due to the consolidation of plantation company PT London Sumatra Indonesia and higher average selling prices.
Its Chief Executive Officer, Anthoni Salim told Reuters, “Lower commodity prices should benefit our consumer branded products group.” Indofood’s popular products include instant noodles, seasonings and snacks. Indofood also controls two of the world’s largest flour millers through Bogasari Flour Mills.
Indonesians consume an average of 60 packs of instant noodles a year. According to industry figures, 92 billion packs were consumed worldwide in 2006 with about 47 billion in China, 14 billion in Indonesia, 14 billion in the US and 5.4 billion in Japan.
Mumbai, India: A leading food company in India, Britannia Industries, which was established as early as 1892, reports growth of 27.3 percent for the quarter ending September 30, 2008. For the half year ended September 30, sales grew 24 percent and net profit increased 10.6 percent.
Vinita Bali, Britannia’s Managing Director said in a statement, “Revenue growth was driven by focused investment in brands, geographies & channels. Volume growth was 17.5 percent. All of our Power Brands grew double digit and Tiger, our largest brand saw its highest share increase in a very competitive market. High input inflation continues to challenge margins and our cost effectiveness initiatives are being further strengthened to contain cost”.
Its largest brand, Tiger, launched in 1997 and targeted at the children’s market comes in various flavours including Rosemilk, Orange Cream, Chocolate Cream and Tiger Banana.
Sydney, Australia: The Australian Food News has reported that Woolworths, Australia’s giant retailer with 780 stores, will be the first national retailer to display actual and unit prices on their labels.
James Aylen, the company’s General Manager of supermarkets, said they came to the decision after undergoing a successful trial period involving eight stores. He added that the exercise will take about a year as they would be introducing over 12 million labels across 19,000 items.
Unit pricing will become mandatory in Australian Supermarkets following the Grocery Price Inquiry. Coles, Australia’s second largest supermarket chain will also support the scheme with a AUD 10 million commitment in May. Aldi, another supermarket chain which operates in Australia’s eastern states also plans to implement the unit price (price per kilogramme or litre) programme.
Beijing, China: In a China Daily report published by online news magazine the China View, Nestlé China is expected to record double-digit growth in its sales revenue this year. Patrice Bula, Nestlé China’s Chairman and Chief Executive Officer said, “Nestle China’s sales growth was still strong so far this year, partly due to the high standard products provided for China’s market, which were attested with no melamine.”
The global food giant recently established a research and development (R&D) center in Zhongguancun Environmental Protection Park, a hi-tech industrial park in Beijing. The inauguration was attended by Zhao Fengtong, Vice Mayor of Beijing, Lin Fusheng, Head of Haidian District, Nestlé CEO, Paul Bulcke, CTO Werner Bauer and market Head of Nestlé China, Patrice Bula. Nestlé currently has 24 R&D centres, including a centre in Shanghai built in 2001. Its Beijing centre will be the company’s largest technical centre in Asia, contributing to Nestlé’s 20 factories in China.
In its press statement, the company said the Beijing centre will engage in research collaborations with Chinese universities and research organisations. Through sharing knowledge and expertise, these research collaborations will deliver a better scientific understanding of how food and food ingredients impact on human health and well-being. This will include research on the benefits of traditional Chinese ingredients, as well as the ways that these, and other ingredients, can be included in foods and beverages in a bioavailable form.
Beijing, China: China does not intend to subsidise sugar exports to support prices and help loss-making mills. Reuters reported that the China Sugar Association proposed the government subsidise exports of 500,000 tonnes of white sugar, in order to cut stockpiles that have pressured domestic prices. Farmers’ income are also threatened by the surplus with mills being left in the red.
The Guangxi Sugar Exchange projected that, after two years, production of sugar would reach 2.4 million tonnes. Traders expected the government to purchase less than 500,000 tonnes for state reserves as government storage warehouses were almost full from purchases of last year’s crop. The government had also imported sugar from Cuba under a bilateral deal. Liu Hande, vice chairman of the China Sugar Association, told Reuters that the government has not made any proposal on the decision to subsidise exports. He added, “So far we do not have any potential buyers or detailed plans as how to export. I don’t think we can manage any exports.”
White sugar produced by China is inferior in quality; therefore only suitable for export as raw sugar instead of expensive refined sugar. Based on New York raw sugar futures at about 11 cents per lb; traders said about US$ 100 per tonne of subsidies is needed to make the price competitive.
The Association had also proposed that excess sugar be converted into fuel ethanol but its spokesperson Liu said the government was not receptive to the idea.
Taipei, Taiwan: A Central News Agency report shows that Taiwan has surpassed a 1000 tonnes of fruit exports to China; a record for this year. By end of October, China had imported 1005 tonnes of Taiwan fruit or 141 shipments, through China’s Xiamen Port comprising 15 types of fruit including starfruit, guavas, mangoes, papayas, oranges, cantaloupes, lemons, pomelos and custard apples. The shipments were valued at US$ 971,000, up more than 25 percent year on year. Xaimen Port is an important deep-water port located on the estuary of the Jiulongjiang River on Fujian Province. The port, which offers 74 berths, received its first shipment of Taiwan fruit in 2005, which has increased in number every year since. A preferential policy was launched in 2006 by China’s quality supervision, inspection and quarantine office to speed up inspection and processing of Taiwan fruits imported into China.
Taipei, Taiwan: In a Taiwan News report, Taiwan’s President Ma Ying-jeou and Guatemalan President Alvaro Colom Caballeros has pledged to strengthen cooperation in key areas and boost bilateral ties. President Colom was in Taiwan to attend the ROC Double Ten National Day celebrations early October.
Taiwan’s agricultural missions stationed in Guatemala has helped the country to develop its agricultural sector with proven success in papaya exports, vegetable cultivation and exports, as well as tilapia cultivation. According to a Taiwan Review report, Taiwan’s pisciculture centre in Guatemala provides about one third of the six million tilapia fry raised across the country in 2006 and its experts have taught locals how to rear the fish.
The Taiwan mission had also established a fish conservation centre in Peten to save certain types of fish from extinction. The centre succeeded in producing more than 30,000 fry, which was released into a lake in September 2006.
California, US: In a report by thepacker.com, grower-shippers of citrus produce say that their goods can be considered a relatively safe product, compared to other food items that have been in the news lately. “We’re one of the least-risk commodities,” said Joel Nelsen, president of California Citrus Mutual, Exeter. “Our areas of vulnerability, which are really slight, are in the packinghouse.”
However, the citrus industry is not about to declare that it is immune to food safety concerns. “It’s an issue not to be taken lightly,” said David Krause, president of Paramount Citrus Association Inc., Delano, Calif. “We’re doing a lot in that area.” Paramount employs a full-time food-safety officer and ensures that all its facilities are inspected and certified safe by PrimusLabs and AIB International.
At Bravante Citrus, Sales manager Ross Bailey said the company is third-party certified by several firms, including Primus and Emeryville, Calif.-based Scientific Certification Systems. The company’s packing facility is new and highly rated for food safety, he said. “Buyers definitely are more concerned about food safety. Traceability and food safety are a big concern for everybody’s customers these days,” he added.
Food safety is also top of mind at Mulholland Citrus in Orange Cove, Calif. “You never want to say that you are immune to a problem,” said Fred Berry, Director of Marketing. “It’s definitely a concern.”
The company, which is Primus certified, has the capability of tracing back all individual consumer packs, not just master packaging, he said.
Justin Bedwell, director of marketing for Z&S Distributing Co Inc, said he is glad the company has an affiliation with General Mills through its vegetable programme. He said the company applies the standards that General Mills mandates in its vegetables to the Z&S’ citrus and tree fruit programs.
General Mills growers must meet exacting specifications, like having recall programs in place, arranging for third-party audits and being able to track lot numbers to ensure food safety. Citrus growers need to learn from the problems that growershippers of other commodities have endured, said Justin Bedwel, Director of Marketing, Z&S Distributing Co Inc, another citrus products company based in California, US.
California, US: Dole Food has confirmed that the European Commission has adopted a decision against Dole and its German subsidiary, Dole Fresh Fruit Europe OHG. As stated in the European Commission’s press release, the Commission’s decision imposes fines against a number of EU banana importers. The commission found certain practices in the EU banana market to have breached fair competition regulations.
This fine follows Commission investigations that began in June, 2005 and a Statement of Objections issued on July 20, 2007.
The Commission’s decision imposes a total fine of EU$45.6 million (US$60.94 million) against Dole. Under the Commission’s Fining Guidelines, Dole faced a potential fine of up to 10 percent of its worldwide revenues (US$ 693 million). The Company has not yet received the full text of the Commission decision.
The Company believes that it has not violated the European competition laws, and it intends to appeal this decision and the fine imposed.
Dole, with 2007 net revenues of US$ 6.93 billion, is the world’s largest producer and marketer of high-quality fresh fruit and fresh vegetables, and is the leading producer of organic bananas. Dole markets a growing line of packaged and frozen foods and is a produce industry leader in nutrition education and research.
Washington, US: According to a report by the AFP, the US Food and Drug Administration (FDA) will open its first overseas offices in China. This is a part of measures to regulate food imported into the US, said an official.
“Apart from China, offices will also be set up in India, Europe and Latin America for the first time,” said Mike Leavitt, Secretary of the Department of Health and Human Services (HHS). He also commented the move reflects the increasingly global nature of the food and drug trade.
“Increasing our presence overseas will provide greater protection to American consumers at home and benefit our host countries as well. Opening these offices will mark a key milestone in the globalization of our efforts to enhance the safety of imported food and medical products,” said Leavitt.
Food quality has been on the FDA’s mind since recent high profile scandals involving food products imported from China. The first office is slated to open by the end of 2008 in Beijing, with additional staff to be posted to other Chinese cities in 2009.
“The globalization of the food supply and medical product manufacturing has demanded that we do things differently. We won’t have to send our experts to another country to work with foreign governments and regulated industry to improve our oversight – we’ll have staff living there and working on the ground 365 days a year,” said FDA Commissioner Andrew von Eschenbach.
New York, US: Pepsico has posted a quarterly profit that missed expectations and has cut its full-year outlook. The company cites flattening demand for soft drinks amidst the current economic slowdown as reasons. Its share price has dropped 10 percent following the announcement.
Pepsico said on Tuesday, October 14, 2008 that it would cut 3,300 jobs or roughly 1.8 percent of its workforce. This round of labour cuts are part of efforts to save more than US$1.2 billion over the next three years.
Pepsi said that some 40 percent of the job cuts will come from closing up to six plants and other actions to be announced by the end of the year. Most of the job cuts will occur in the fourth quarter. Pepsi expects to incur a related charge of US$550 million to US$ 600 million.
“A nationwide housing slump, credit crunch, job losses and higher fuel costs have meant consumers are eating out less often, cutting down trips to gasoline stations and convenience stores to curb spending.
These change of habits have affected the sales of beverages, especially bottled water, as consumers turn to tap-water in a bid to economise,” said Pepsi’s Chief Financial Officer, Richard Goodman.
Michigan, US: A survey conducted by Clear Seas Research on October 13, 2009 has revealed that food industry insiders are worried over the impact of the current credit crisis – on both counts: their companies and the industry as a whole.
While some are optimistic that the crisis will have ‘very little’ or ‘no impact’ on the food and beverage industry as a whole, 74 percent anticipated ‘moderate’ to ‘great impact’ on their company’s business.
On a macro-level, a large 87 percent majority believe that the current state of the economy will have a ‘direct impact on the overall food and beverage industry.’ Insiders expect the foodservice segment to be most negatively impacted by current economic conditions.
Minnesota, US: According to a report by the Star Tribune of Minnesota, the Schwan Food Co plans to cut 67 jobs at its Marshall Headquarters. The company has also said that it will do away with 11 other jobs outside of Minnesota.
Schwan says the cuts are necessary to help its subsidiaries remain strong and competitive within the frozen food industry. It says that the move represents less than half a percent of the company’s overall workforce of approximately 20,000.
The positions are spread throughout the corporate areas of the business. Schwan will also sell one its corporate aircraft and close the Red Baron Museum in Marshall at the end of October, 2008.
London, UK: Reuters has reported that demand for food and drink remains healthy amidst the market downturn that has affected many countries. However, it cautions that the going will get tougher as consumers scale back on spending in these uncertain times.
Three of Europe’s largest food and drink companies reported resilient results for the July to September, 2008 period. But analysts say that slower growth worldwide will eventually affect the sector. Cadbury, SABMiller and Diageo have all posted good results considering the state of global finances.
Cadbury warned of bigger cost rises in 2009 than 2008 due to high cocoa and energy costs, SABMiller said the financial crisis makes its prospects “increasingly uncertain” while Diageo added “challenging economic” trends have affected its business.
Citi drinks industry analyst Philip Morrisey points out that with conditions set to get much tougher the defensive attractions of food and drinks stock will come under scrutiny.
He says Diageo shares have outperformed the broader market by 30 percent this year and other consumer stocks such as British American Tobacco by 37 percent and the world’s biggest food group Nestle by 35 percent.
SABMiller reported a recovery in beer volumes in the July-September quarter as they rose 1 percent after a 1.6 percent fall in the previous three months.
Cadbury said revenue growth slowed in its third-quarter to 6 percent bringing its nine-month running figure to 7 percent. However, it is still on track to hit the top of its medium-term 4-6 percent growth target this year as Chief Executive Todd Stitzer emphasised the resilience of confectionery sales.
Analyst Warren Ackerman at Dresdner Kleinwort describes Cadbury’s third-quarter as “good but not great” and was concerned over the impact that higher prices – needed to offset high input costs – would have on volumes.
London, UK: Ichiban UK’s managing director, Nigel Kemp, has been ordered to pay £3,800 (US$6,601.76) for breaching food safety laws. Kemp started the production of sushi at Church Farm, Earl Stonham, without permission from The Mid Suffolk District Council. Ichiban UK supplies brand and private label sushi to national retailers including Tesco and Boots, with an annual turnover of £12 million.
Kemp admitted to two charges of allowing production of Sushi and Vegetarian Sushi at the Earl Stonham plant without the proper approval of the Council. 55 year old Kemp also admitted to a third charge of wrongly labelling the food’s production origins and a fourth charge of failure to comply with a certain piece of EU legislation.
Laura Thomas, Legal Counsel representing Kemp, said the company had been in the process of relocating its operations from Waltham Abbey at the time and that the food was wrongly labelled with the old address, meaning it could still be traced back to the company, just not the site where it was produced.
Tim Child, a solicitor for Ichiban UK, said: “We obviously deeply regret that the incident happened in the first place. Essentially, the decisions taken by Kemp were not made with the authority of the board and that, of course, is why the company itself is not being prosecuted.”
Naples, Italy: Italy’s first cases of melamine tainted milk have been confirmed by laboratory tests. Authorities in Naples have seized tons of illegal Chinese products in an unconnected move.
The Italian Health Ministry said on October 18, 2008 that inspections at import companies and shops that sell Chinese products had resulted in three positive tests. Officials say the concentration of melamine was not lethal but posed a health threat.
Milk and some dairy products have been found to be laced with melamine in September, 2008. Since the break of the scandal, the products have been blamed for four infant deaths and sickened more than 54,000 people in mainland China.
Italian authorities said it had seized Chinese-made products at ethnic shops and an import-export center in Naples, including a tonne of milk believed to be contaminated with melamine.
The tainted milk scandal has sparked global concern about Chinese food products, with more than 30 countries restricting Chinese dairy products, and in some cases all imports of Chinesemade food.
Melamine is a chemical used to make plastics and fertilizers, can cause kidney stones as the body tries to eliminate it and, in extreme cases, lead to lifethreatening kidney failure. Infants are particularly susceptible.
Nottinghamshire, UK: Europe’s largest conference on biofuels held October 16, 2008 was brought to a standstill as six protesters climbed onto the rafters of the main conference in Newark, Nottinghamshire.They accused the industry of increasing hunger and climate change globally, amongst other things.
“It is unacceptable that the biofuels industry should hold a conference where it portrays itself as ‘green’,” said John Simmons, a protester, from the roof of the Newark building.
According to a recent World Bank report, 75 percent of recent global food price rises are attributable to the increasing use of biofuels for transport, which have taken over tens of millions of acres of land previously used to grow food. “We are incensed that this trade show has been timed to coincide with UN world food day, given that 100 million extra people are going hungry this year alone,” said another activist.
Richard Price, the organiser of the conference, said: “They [the protesters] misunderstand what the event is. It’s about using waste products to create energy. Most people here are using waste fuels. This is not to do with large-scale destruction of the forests. I have invited them to take part in the conference debates, but they have not yet replied.”
The UK government, which is one of the sponsors of the conference, is committed to substituting 10 percent of all transport fuels with biofuels, but a major review of the target earlier this year exposed deep concerns about the social and environmental impact of growing the crops.
The UK government announced October 15, 2008 that it will consult broadly toward determining biofuels targets in the UK, but it did not include the option of scrapping them altogether.
Berlin, Germany: German biscuit and cake maker Bahlsen has negotiated a deal with trade unions that will secure its labour needs of all its German factories until the end of 2010.
The company reviewed all its German sites over the past few months and concluded that its Barsinghausen factory was no longer efficient enough to handle production demands due to ageing infrastructure and high running costs.
According to the German press, Bahlsen has agreed to invest up to EU$40 million US 51.27 in modernising the plant in return for state subsidies and reduced salary increases for its workforce over the next two years. The company will also cut up to 200 jobs at Barsinghausen.
Production at the site first started back in 1957, the plant currently employs around 630 full-time staff.
Berlin, Germany: German biscuit maker Griesson-de Beukalaer has signed new contracts with two external logistics suppliers to optimise its transport and distribution processes. From October, 2008, BLG Logistics will be responsible for Griesson’s factory storage and its European distribution center in Koblenz, Germany. “BLG logistics will invest several million Euros in expanding the facilities and technological processes,” said Udo Riesberg, Head of Logistics at the German biscuit firm.
The other firm to have been awarded the contract, Ulhorn Logistik Thermo Solution will take over all transport logistics. Griesson will also build another distribution center in Thuringia by the middle of the year.
In June, 2008, Griesson secured a deal to distribute Belgian baked confectionery brand Biscuiterie Jules Destrooper in Germany and Austria as part of its expansion strategy.
London, UK: Just-Eat.co.uk, one of the UK’s largest online takeaway portal have announced a 69.5 percent increase in sales during the last six months compared to the previous six months, proving that the credit crunch is not affecting the takeaway food industry.
Many industries have been affected by the downturn in the economy, but the takeaway industry is still thriving as the public would prefer to order a takeaway rather than dine out, saving themselves money on drinks, taxis and service charges.
The company has released statistics showing that the last six months have produced a 69.5 percent increase in sales when compared to the six months previously, to the point where Just-Eat.co.uk is now processing thousands of orders per month for its customers online. Ash Ali, Marketing Manager of Just-Eat.co.uk said, “In a time when the media report doom and gloom across many different sectors, we are able to report a significant rise in orders. Talks with many of our partnered restaurants convey a similar picture, where they have stated that they have in fact seen a rise in takeaway requests in the last six months, with less sit-in customers and much less drinks spent. The reason for this is that people are more likely to order takeaway food to their home, than going out to expensive restaurants, and is possibly related to the fact that restaurants have kept their prices consistent with the prices of their food inflation in the six month period before the credit crunch really took hold. It seems more people are now staying in than going out.”
London, UK: According to research from Sainsbury’s, private label products are gaining popularity as shoppers economise amidst bad times. Sainsbury’s is one of the UK’s ‘big four’ supermarket chains.
The research found that 62 percent of shoppers were more likely to buy supermarket own brand products compared to a year ago. Capitalising on this information, Sainbury’s has initiated a ‘Switch and Save’ campaign to promote the economic benefits of its own in-house brands.
“Price gaps between brand and own-label products are as wide as ever. Own-brands are impacted less by inflation and enjoying an improved image due to refinements in quality,” said Justin King, Sainbury’s Chief Executive.
The research also found that 35 percent of shoppers believe that top brands will need to improve quality to surpass supermarket private label products.
London, UK: The food industry is calling ‘Traffic Light’ labeling as bsimplistic and misleading. On the other hand, health and consumer groups have welcomed the labels, saying that it gives consumers an instant and simple way of spotting unhealthy food. The system uses colour codes similar to traffic signals: red for unhealthy, amber for caution and green for healthy.
A spokeswoman for the food industry, Kate Carnell, says they often send the wrong message about food that can be good for you. The debate over food labeling, pitting the influential food industry against health organisations, is expected to come to a head at the meeting of federal and state food ministers in October, 2008 after two years of mulling by federal governments.
Carnell, the chief executive of the Australian Food and Grocery Council, said the traffic-light system seemed simple and had worked in school canteens, prompting food producers to reformulate some products to get the green light. But she said colour codes could mislead people into thinking ill of nutritious products, such as cheese, which was a good source of calcium and protein.
“A packet of sultanas would get the same red light for sugar as a bag of candy, which would score green lights on fat and salt,” Carnell said, ”blended vegetable oils would end up with the same red light as pure olive oil, even though the latter had less saturated fat.”
In place of traffic-light labels, the food industry is proposing a voluntary system that shows nutritional values as a percentage of the recommended daily intake.
Clare Hughes, a spokeswoman for the consumer organisation Choice, said traffic-light labels “provide spin-proof, ata-glance information in an environment where sophisticated marketing has led to health claims on almost every type of food packaging”.
Choice research with public health organisations found more consumers were able to correctly identify the healthier product using traffic lights than the industry’s preferred system, Ms Hughes said. “It won’t come as a shock to most consumers that some cheeses are high in saturated fat. A red light is not going to stop people eating cheese; it’s going to indicate to them that perhaps they shouldn’t eat it with every meal,” said Hughes.
Havana, Cuba: In a report by Invasor.cu, Cuba is giving priority to the delivery of essential nutrient enriched food to vulnerable groups such as pregnant women, children and the elderly. This is the latest in a series of move to cover basic diet needs in the country.
Alvaro Garcia, Director of the Cuban Research Institute of the Food Industry said that they are paying special attention to the addition of minerals such as iron and B complex vitamins after the onslaught of hurricanes Ike and Gustav that have adversely affected food supplies in the socialist state.
Compotes and milk for children, as well as milk supplements for pregnant women will be delivered first. Garcia also mentioned that other sectors will also benefit from the steppedup efforts, citing as an example the availability of wheat flour for Cubans.
Cuban agriculture has been severely impacted by the hurricanes. There are estimates that the recent natural disasters have affected as much as 30 percent of its arable land. The industry is working to increase the nutritional value of its crops, exploring ways of increasing yield by the use of genetically modified seeds.
Illinois, US: Reuters reports US food giant Kraft has unveiled its international brand expansion plans in detail. The group plans to focus on ten countries and ten brands instead of tackling the
globe all at once.
The idea is not to go all over the place, but focus on a few places where we can win,” Sanjay Khosla, President of Kraft International. He adds that China, Russia, Brazil and Southeast Asia are the four ‘growth engines’ in the ten international markets Kraft plans to focus on. The group expects sales to increase eight to ten percent annually in those markets in the long run.
Khosla called markets in six other countries – Australia, UK, Spain, France, Italy and Germany – ‘scale markets’ where annual sales are expected to grow one to three percent only. Kraft’s strategy will focus on five product categories: coffee, chocolate, biscuits, powdered drinks and cream cheese, it will see the group putting most of its efforts into ten brands: Oreo cookies, Milka, Cote d’Or, Lacta and Toblerone Chocolate, Tang drink mix, amongst others.
Washington, US: In a report by the Associated Press, the US government has begun investigating how to quickly identify the source of contaminated food and stop it from getting to consumers. Representatives from the produce industry said accurate labelling on every case of fruit and vegetables has made it easier to trace tainted food from the dinner table back to the farm. However, consumer advocates want more. They want to see the marking of individual tomatoes, heads of lettuce and other produce, citing that the food industry is one with a poor safety record: 900 recalls over the past two years.
“We need better information going to the consumer so he can identify fruits and vegetables when it’s in his refrigerator and in his cabinet shelves,” said David Plunkett, senior staff attorney at the Center for Science in the Public Interest.
The Food and Drug Administration (FDA) has asked companies and consumers to recommend ways to improve the tracing of produce throughout the distribution system. “We are going to see more of these (outbreaks) rather than fewer,” said Stephen Sundlof, director of the FDA’s Center for Food Safety and Applied Nutrition. “We just need to respond sooner when they do occur.”
One of the questions the FDA is asking is whether an identifier should be assigned to fresh produce, and if so, at what stage in the supply chain. The industry agrees with that concept, said Kathy Means of the Produce Marketing Association. She said it is in the industry’s best interest to quickly track problems.
Means said each container of produce should contain a label with a bar code that would allow businesses and the FDA to immediately identify the owner of that product — from manufacturers to packers to retailers. She said
individual companies have their own system for tracking products, but the system is not uniform. She also urged the agency to let the industry enact its plan rather than seek new federal rules. Some companies are ready to put in place the barcode system immediately while others have a long way to go. “This is going to be hundreds of millions of dollars over a few years,” she said. A federal bioterrorism law requires food to be forward and backward traceable, so that regulators can follow the trail. Industry officials said they believed that law was sufficient to get companies to keep the kind of records necessary. However, there has been little enforcement and some companies have lapsed in their compliance.
Part of the problem is the structure with that piece of legislation. Sundlof said the law authorized the FDA to check whether businesses were complying only when health dangers had surfaced.
Texas, US: DNV announced October 15, 2008 that Kathy Wybourn has joined the organization as Director of Food Safety Solutions. Wybourn is a 24-year veteran of the US food industry. She will run day to day operations and help lead the expansion of DNV’s food safety certification and training services.
“Kathy has the experience and the strategic vision to help us take a leadership position in US food safety services,” says Richard Stolk, president of DNV Industry North America.
Wybourn assumes operational leadership of DNV’s food safety certification business at a crucial time. The rising number of food contamination events is driving demand for wider adoption of food safety standards. In early 2008, Wal-Mart became the first nationwide US grocery chain to require suppliers to have their facilities certified to one of the internationally recognized Global Food Safety Initiative (GFSI) standards.
“This is the next step I’ve been looking for,” says Kathy Wybourn. “DNV is a stellar organization and already has a strong footprint in food safety. I’ll have tremendous resources at my disposal, including a network of local auditors and a growing portfolio of industry partnerships.”
“The big challenge right now,” adds Wybourn, “is helping food producers organize around a consistent set of standards that are recognized and shared throughout the supply chain. The market is moving so fast, and the issues so complex, that we’ll be spending a lot of time helping customers decide which standards are right for them and how to implement them cost effectively.”
Wybourn started her food career at GD Searle/Monsanto, where for 18 years she held technical and managerial positions across the organization. She received Monsanto’s President Award for implementing HACCP using safety principles and earned the Monsanto Star Performance Award for building quality assurance into contract manufacturers.
In 2005 Kathy joined the Food Products Association where she was director of SAFE Operations and managed the FPA-SAFE program. Before joining DNV, Kathy was the Director of Auditing Services for RQA, Inc. Manufacturing Services unit.
DNV is an independent and autonomous foundation working to safeguard life, property and the environment. DNV is recognized as one of the leading and most respected management systems certification bodies in the US, and has issued more than 80,000 certificates worldwide. DNV has over 8,000 employees in more than 100 countries, and is represented in the US with over 700 employees spread over more than 12 offices.
Kinos: Flavourful Crunch
Kinos Food Industries’ Potato Bites come in four flavours: Original, Sour Cream, Pizza and Barbeque. Kinos’ products can be found in Malaysia and more than 25 countries worldwide. Certified with HACCP in June 2006, Kinos produces the best quality snack food under the safest conditions.
Khee San Sdn Bhd: Milky Wafers
Manufactured by Khee San Food Industries Sdn Bhd, the Torrone wafer comes in 120g packs containing 14 small bars suitable as snacks for active children. Choose between two flavours: milk or chocolate.
Lonbisco: Filled With Deliciousness
Lonbisco’s London Pie Cakes can be eaten as snack or dessert. The pies come in various flavours including custard cake and strawberry at 12 boxes x 24 pieces x 20gms.
Khee San Sdn Bhd: Premium Variety
The Fruit Plus Chewy Candy manufactured by Khee San Sdn Bhd is an addictive candy that comes in various flavours including orange, apple, blackcurrant and strawberry. Each one kilogramme bag contains about 350 pieces of candy.
Meadow Brook: Low Fat Delight
Meadow Brook’s Low Fat Cottage Cheese comes in 24oz or 12oz tubs. Made from milk that is free of artificial growth hormones, the cheese is low in fat and carbohydrate but high in protein. It is also a good source of calcium. Serve as a dip with vegetables for a low-calorie snack.
Oak: As ick As Milkshake
A creamy milk as thick as milkshake, Oak flavoured milk now comes in a new packaging but retains its classic taste enjoyed by millions of Australians. It comes in a variety of flavours including Chocolate, Iced Coffee, Strawberry, Vanilla Malt and Egg Nog.
Fernleaf: CalciYum Choco-Oren
A cultured milk food created just for children, Fernleaf’s CalciYum is a fun dairy snack with no artificial sweeteners and comes in a variety of great flavours including chocolate-orange and grape. Every cup of CalciYum has twice the calcium of milk, helping children reach their optimum height.
Elle & Vire: Creamy Indulgence
Elle & Vire, a French brand that has mastered the art of UHT processing, carries an extensive range of products including dairy pudding such as the Crème Dessert which comes in a variety of flavours: vanilla, chocolate and caramel. Best served chilled.
Brilliant Soy Essence: Soy Symphony
Brilliant Health Group is a Malaysian manufacturer and distributor of high quality organic soy products. It supplies a broad range of exclusive products and offers bulk-packaged soy products as well. The company has been accredited with ISO 9001:2000 certification, HACCP (Hazard Analysis Critical Control Point) since 2006 and has been awarded Top Asia Pacific Golden Brand Products 2007/2008.
Boulevards: Chocolate Wonder
Apart from being organic, Boulevards’ Dark Hot Chocolate is also kosher certified. Its manufacturers say that it has been specially blended to create a ‘full, round flavour’. The dark chocolate drink mixture is available in three variants: Dairy-free Hot Chocolate and Dairy & Sugar-free Hot Chocolate.
Crispy Cat: Retro Peanut Bar
An old-fashioned candy bar made with organic ingredients, Crispy Cat’s Roasted Peanut Chocolate Bar uses high quality ingredients. The bar has a roasted peanut flavoured center and the range is available in two other flavours: Mint Coconut and Toasted Almond.
Frutzzo: Yummy Berry
Frutzzo says it is the first to bring Yumberry juice to the US market. Yumberry is a fruit high in antioxidants that has been enjoyed for its sweet, tart flavour. Its manufacturers claim that it contains powerful antioxidants that protect the body against internal and environmental stresses. The healthful Yumberry with Pomegranate is also available as 100 percent Yumberry juice and Yumberry with Blueberry.
Vara: Well-certi ed Corn
Vara Food & Drink is a manufacturer and exporter of canned tropical beverages, canned vegetables and canned coconut milk. All of its products, including the Baby Corn in Brine (cut) are certified with GMP, HACCP, BRC and IFS.
Ritter Sport: Dark Organic
‘Bio’ is a new range launched in April 2008 for Ritter Sport’s chocolates made from organic cocoa. The 60 percent mark makes this a aromatic and fine dark chocolate. The Arriba cocoa beans come from Ecuador and carry a tinge of Peruvian, Nicaragua and Dominican flavours. The Arriba breed is grown solely in Ecuador, and is a special cocoa varietal with a perfumed floral scent.
Soy Vay: Very Very Tasty
Soy Vay Veri Veri Teriyaki is an all-natural sauce made from the finest ingredients, including fresh garlic, ginger and sesame seeds. In the same range is the Soy Vay Island Teriyaki, which contains pineapple juice.
Eden: Ready Tomatoes
Organically grown tomatoes are picked when perfectly ripe, diced into medium-small unpeeled pieces, cooked with organic roasted onion and packed within hours of harvest to capture maximum nutrients and all of their garden fresh flavour. No salt is added.
Active Packaging In The Confectionary Industry
Products that have great taste profiles and boast healthier ingredients are more attractive to importers and retailers. The right packaging solutions can help manufacturers achieve the taste-health balance. In addition, they can contribute to cost savings and help exporters grow into farther markets.
Edited from an article by Robert Sabdo, Business Development Leader - Food & Beverage Packaging, at Multisorb Technologies
A recent report from Research And Markets, a market research firm, indicated that the global confectionery market would reach more than US$145 billion dollars by 2010, an increase of more than 16 percent since 2006. Significant expansion in gum, chocolate, cereal bars, and sugar confectionery is expected in Europe, Africa, the Middle East, Americas, and Asia Pacific regions. In Europe, the chocolate market alone is predicted to grow to US$35.4 billion, out of a total market value of US$61.2 billion by 2010.
The market is characterised by strong anticipated growth combined with key emerging trends. Important market drivers in the confectionery industry include increasing health-consciousness among consumers and rising demand from the affluent in developing economies. Manufacturers are responding to these trends by expanding product offerings and building their brands.
Growing health-consciousness among consumers is sparking a higher demand for natural products. According to another Research and Markets report, 12 of the top 15 flavours used in confectionery products currently under development are natural. Fruits and fruit-based ingredients, for example, provide an attractive health-conscious option. Also, the EU health and nutrition claims regulation that came into effect in 2007 will likely force confectionery producers to account for increasingly label-conscious choices made by consumers.
Another important trend points to the recent growth within the confectionery market in developing regions, supported by the spread of multinational companies and their brands. These companies are looking to take advantage of the increasing demand of affluent consumers in countries like Russia, China, and India.
While both health and regional demand trends present tremendous opportunities to confectionery manufacturers, they raise concerns about product preservation during transportation and while on the shelf. Natural products cannot incorporate many of the synthetic additives and preservatives that would traditionally be used in confectionery products.
And with global demand rising, confectionery producers will need to ship their products over longer distances and for extended periods of time.
To maintain the integrity of confectionery products, manufacturers must proactively avert the threats of oxygenand moisture-mediated damage. Oxidation is a critical degradation pathway for many products and can lead to rancidity of nuts and nut oils as well as rancidity of natural vegetable oils, now frequently used to replace trans fats. Oxidation also results in the loss of flavour or changes in flavour over time. Additionally, moisture is a concern, leading to hydrolytic rancidity of saturated fats like cocoa butter and adversely affecting texture and mouth-feel. These threats become more acute when confectionery products need to be packaged for a longer duration of time because of extended distribution chains. Natural confectionery products that must avoid the use of synthetic preservatives are also particularly vulnerable to these threats.
Active packaging technology, and especially sorbent technology, has a role to play by serving as the method of preservation, allowing manufacturers to bring in-demand products to market. Two sorbent technology formats are uniquely suited to serve the needs of the confectionery market: oxygen-absorption and moisture regulation technology. By addressing oxygen- and moisture-related problems, sorbent technology enables confectionery manufacturers to preserve flavour and colour, maintain an appropriate texture, and extend the overall shelf life of their products.
Products that have great taste profiles and boast healthier ingredients are more attractive to importers and retailers who understand this trend growing amongst consumers. The right packaging solutions can help manufacturers achieve the taste-health balance. In addition, they can contribute to cost savings and help exporters grow into farther markets.
Today’s consumers are health conscious but this does not mean they are willing to compromise great tastes and flavours. Natural products, without synthetic preservation ingredients, begin to degrade immediately after the manufacturing process. This continues throughout the shelf life of every product. Because flavour degradation is expected, processors add extra flavour additives. In addition, many of these additives oxidise easily, thereby reducing the desired effect. Both go against the consumer demand for natural and tasty products. Rapid removal of oxygen immediately after processing will maintain the original flavour without the use of harmful additives or preservatives.
Mouth-feel, texture, and eating qualities are adversely affected by loss of moisture. Moisture regulation can be combined with oxygen removal so that it is now possible to rapidly remove oxygen from a package while maintaining an optimal relative humidity within the package. This approach of active packaging allows the confectioner to optimise or minimise the use of emulsifiers, surfactants, and other such additives. This permits broader use of natural, unmodified, unsaturated oils. Natural oils have cis-unsaturation and are healthier, and will not become rancid, thanks to this technology. Not only does this make the product healthier to consume, it also helps manufacturers save on the amount of additives to be procured.
Also, active packaging improves product shelf life or stability – a concern which exporters pay great attention to. Moulds are sometimes associated with spoilage of confectionery products. They absolutely require oxygen to grow. Fortunately, with rapid removal of oxygen, it is possible to completely prevent the growth of mould and fungi. Moisture regulation can serve to protect against condensation and subsequent mould growth within the package where storage and distribution facilities are less than ideal, especially with importers in developing countries.
Robert J Sabdo, Jr serves as Business Development Leader, Food and Beverage Packaging at Multisorb Technologies. In this position, Sabdo is responsible for sales and market development of active packaging solutions for the food and beverage industry. Sabdo has over 36 years of experience in the packaging industry, with in-depth knowledge of active packaging technology and its numerous applications in the food and beverage as well as the pharmaceutical, diagnostics, dietary supplement, and electronics markets.
Sabdo earned a Bachelor of Science degree in Packaging Science from Michigan State University in 1972. He is a member of the Institute of Packaging Professionals (IOPP) and is an AmeriStar Judge for the IOPP.
Multisorb Technologies (www.multisorb.com) has been an innovator in sorbent technology for over 45 years. Founded in 1961 by John S Cullen to protect products against the damaging effects of moisture, today Multisorb is the world leader in the development and production of active packaging components. Multisorb’s innovative sorbent products solve food-packaging problems and help extend shelf life and promote greater consumer acceptance and shelf appeal.
Laying The Groundwork
Omcorp, a halal-certified food manufacturing company, hopes to venture into the overseas market via strategic alliances with various multi-national companies. It is currently laying the groundwork by obtaining various certifications including the AVA certification from Singapore.
By Azrina Abdul Karim
Malaysian food manufacturing company Omcorp Sdn Bhd, established in October 13, 1994, is the brainchild of Abang Omar Abang Ali who is also the Chairman and Managing Director. Owned by Abang Omar and his wife Mazidah Mohamed Zain, Omcorp is principally engaged in the manufacturing and marketing of premium quality Halal products such as processed meat, smoked fish and bakery products under the brand name Omar Deli.
Abang Omar, who qualified as an Engineer from a university in Texas, US, had gained initial exposure into meat processing methods while working part-time in fast food restaurants to support his studies. This experience led him to purchase a factory in Kajang, Selangor in 1995 as base for his meat processing venture. Besides supplying to hotels and various retail outlets including Jaya Jusco, Giant and Cold Storage, the company has also opened four of its own outlets to market its products direct to the consumer.
Omcorp produces 30 types of sausages including the chicken breakfast sausage, chicken cheese jumbo sausage, lamb jumbo sausage and beef black pepper sausage. Its numerous cold cuts offering comprises chicken toast, beef pepperoni, beef salami and the fish-based otak-otak roll (marinated spicy fish paste cake usually wrapped in banana leaves to be steamed or barbequed). Popular for its smoked fish products which includes the smoked mackerel, patin and salmon, Omcorp also produces about a hundred bakery items with a varied selection of muffins, fruit cakes, layered cakes, buns and rolls.
The halal-certified company also supplies satays (sticks of marinated
lamb, beef or chicken meat for barbeque), beef and chicken burgers and other meat products such as pastrami, roast beef and corned beef. Abang Omar says, “Most of the raw ingredients are sourced locally except for the beef we import from Australia, New Zealand and South America. Now we are not using any beef from China until such a time that we are assured of the safety issue.”
Together with KSGA Sdn Bhd, the company is involved in supplying specially produced packed food products for Malaysia Airlines under the Skysnack project, which allows the airlines to reduce its costs. Abang Omar says, the project “helps the airlines to reduce cost as all the products are already packed and they only need to pay the caterer to offload the products into the aircraft.”
On plans for exporting its products, Abang Omar says that the company is export-ready as they have obtained various certifications including the halal certification from JAKIM (now the Halal Industry Development Corporation or HDC). Omcorp, which follows the SIRIM ISO 1480 certification, is applying for an AVA (Agri-Food and Veterinary Authority) certification from Singapore and the ISO 22000 verification as well. Abang Omar explains, “Only upon getting the AVA approval, then can we undertake to launch our satays into Singapore’s market.”
Marketing its products under the brand name Omar Deli, Abang Omar hopes to penetrate into the overseas market by embarking on a strategic alliance with Malaysian multi-national companies based in Malaysia which will provide marketing assistance. He adds, “We just got the brand registered from the patent office in March 2008; the application took years. This year is exactly the tenth year of our company in operations and we are ready to expand our operation with new strategies to reach our customers.” Omcorp plans to create brand awareness through the media via magazines, newspapers, websites and blogs. “ Once market expands, we can budget some funding for promotions and advertisements.”
The company, which hopes to enter the Australian and Middle-East markets, expects their sales to double next year if the proposed collaboration with these multi-national companies is followed through.
Greening Widely
The National Environment Agency (NEA) of Singapore has, over the last few years, implemented recycling programmes to tackle the problem of waste originating from packaging. Going further, NEA wanted to reduce waste production at its source. NEA, together with business and the larger community have developed the Singapore Packaging Agreement that aims to do just that and more. Food Export International reports.
By Ong Hong Tat
According to statistics from the National Environment Agency (NEA), Singapore generated 2.56 million tonnes of waste in 2006. Approximately half of this waste comes from domokestic households and packaging is the single largest contributor of refuse from homes. This figure is set to rise as the nation becomes increasingly affluent and consumerist. Packaging was the obvious key to the challenge of managing and reducing the island-nation’s waste stream.
The NEA already has implemented programmes to recycle waste, including various types of packaging refuse. With the introduction of the Singapore Packaging Agreement, the NEA hopes to address the issue at its source. Under the Agreement, the packaged goods industry will shoulder more responsibility for the re-use or recycling of packaging so that consumers will be able to be more actively involved.
Towards that aim, the Singapore Packaging Agreement was signed on June 5, 2007. With 5 industry associations representing more than 500 companies, 19 individual companies and 4 governmental organisations on the list, the Agreement represents a land collaborative effort between the government, industry and Non-Governmental Organisations (NGOs) to work for reduced waste in Singapore.
The Singapore Packaging Agreement will stand for a period of 5 years, with effect from 1 July 2007. The Agreement is voluntary, to provide greater flexibility for the industry to adopt cost-effective solutions to reduce packaging waste. For a start, the programme will focus on food and beverage (F&B) packaging, as this is one of the most commonly seen type of packaging waste in our households today .The Agreement covers the entire supply chain, including manufacturers & suppliers of packaging, and manufacturers, distributors, importers & retailers of packaged products
Learning from other countries, the NEA found that a partnership with industry was the most feasible. The Focus Group tasked to review waste management recommended that ‘Singapore consider extended producer responsibility or product stewardship in minimizing waste.’ Such collaborative practices had proved effective in other countries. In an online survey conducted in review of the Singapore Green Plan 2012, 94 percent of respondents were of the opinion that there should be measures to reduce the amount of packaging manufacturers used. All in all, the NEA studied the packaging policies adopted in several countries including Australia, Germany, Japan, the Netherlands, New Zealand and the USA.
Based on the principle of product stewardship, the Government, product manufacturers and users are responsible for the environmental impact of products in the marketplace. Upon this principle, participants in the supply chain (brand owners, product manufacturers, packaging manufacturers, fillers, importers/distributors, retailers and consumers) share ownership with the government for the effects that products have on the environment.
As part of the Agreement, participants agree to work towards recycling targets for the recovery of packaging materials: glass – 50 percent, metals (ferrous) – 95 percent, metals (non-ferrous) – 90 percent, paper – 55 percent and plastic – 23 percent.
The industry will have to submit an annual report to an appointed Packaging Agreement Secretariat, stating progress made towards action plans and steps taken to meet national packaging recycling targets and improve the sustainability of packaging.
Parties to the Agreement also agree to complete development of a packaging code within three months of the Agreement coming into effect and to apply the code at a pre-agreed date. They will also be bound to develop a communication strategy to inform consumers on packaging issues, sustainable packaging design and packaging recycling programmes. This will include issues such as clear labeling and other forms of transmitting information to end-consumers of details such as the recyclability of the packaging materials, the renewability of the materials, the recycled content in packaging materials, reduction in materials used and the disposal options for the packaging. Companies that are currently not parties to the Agreement, but wish to join the Packaging Agreement can still sign on to the programme any time over the next 5 years.
“Our efforts over the years to reduce waste would be strengthened when producers agree to play a more pro-active role to reduce and recycle waste arising from their business activities.
This Packaging Agreement provides a platform for producers to take up greater environmental stewardship for their packaging. It also sets a structure and a framework for the government and industry to work together to reduce packaging waste in Singapore.”
“The Packaging Agreement is good fot the F&B manufacturer and the community. In some cases it may help the manufacturer to save some money and it will definitely help us to save the environment. Constant and continuous community education is required to that we can achieve our goal earlier.”
“Nestle is committed to reducing the environmental impact of packaging, without jeopardizing the safety, quality or consumer acceptance of our products.
We seek packaging solutions that decrease all aspects of packaging waste, in areas of manufacturing, utilization and disposal. We constantly take into account new packaging materials and processes that reduce impact on the environment. “
“The Packaging Council of Singapore believes that the Packaging Agreement will encourage the industry to reduce packaging waste arising from consumer products, as well as to raise community awareness on packaging waste minimalisation. The voluntary program will also enable the community to have more flexibility to adopt cost effective solutions for reducing packaging waste. The program will facilitate and foster closer collaboration among industry members, the community and the government.
The Packaging Council of Singapore is committed to working together with the industry and NEA to reduce packaging waste through better design and production processes and facilitate source reduction, reuse or recycling of used packaging materials. The council hopes that all Signatories will be committed to reduce packaging waste as well as to promote and work towards excellence in environmentally improved packaging.”
“Asia Pacific Breweries Singapore (APBS) has always been committed to producing all our products by means of effective processes that maximise the use of resources efficiently.
We are conscious of the impact of waste produced from these packaging materials on our environment. Thus, we constantly seek to minimise this by prudently selecting materials and following established regulatory guidelines without compromising our primary objective of maintain the safety and high-quality of our products.
The Packaging Agreement initiative is an opportunity to reduce packaging waste through better design and production processes.”
“At Tetra Pak, we believe in doing well by doing good. Being one of the first nineteen companies to sign-in to the agreement and taking an active role is one way to demonstrate our commitment to corporate social responsibility.
In terms of reaching out to consumers, we believe the Agreement will serve as an excellent platform to foster greater partnership with the industry and NEA is creating awareness and inculcating the habit of recycling among consumers. With greater awareness, we believe this can help consumers make informed decisions at point of purchase in terms of the environmental profile of the packaging, as well as encourage them to participate actively in beverage carton recycling programs. “
“Signing the Agreement has put Boncafé in the position of being a company and business that cares for the environment.
The Agreement has come at a time when Singapore has placed emphasis and recognition on such programmes and Boncafé is pleased to be part of this initiative which is committed to the environmental code of practice for packaging.
Before inking the Agreement, Boncafé placed careful considerations on ensuring that any new measures that we take as part of our obligations preserved the quality, freshness and outlook of our roasted and ground coffee products, the sustainable protection of our products from being damaged in transit, as well as any negative impacts on their shelf-life.
The Agreement with it Code of Practice will place F&B manufacturers in achieving sustainable efforts and continue to help us to be more environmentally responsible and aware while retaining quality.”
As of June 5, 2007, the parties to the Agreement are:
Government
Companies
Supporting Parties
Non-Governmental Organisations:
Recyclers:
Growth Via Asia
New Zealand’s domestic market offers limited growth space. Asia presents attractive opportunities and buying power for budding exporters to access international markets.
By Nicole Liang
New Zealand is recognised around the world for the freshness and flavours of its produce. There are however a number of key issues that this industry faces, in particular, access to markets and the ability to grow. The New Zealand domestic market presents limited opportunities for growth. Total consumer expenditure on food, beverages and tobacco stood at an estimated US$12.2 billion in 2007, up from around US$5 billion a year at the beginning of the decade, although the rapid increase partly reflects the steady appreciation in the New Zealand dollar against the US dollar. Expenditure on food, beverages and tobacco rose slightly as a proportion of total household spending over this period, reaching an estimated 16.4 percent of total household spending in 2006, compared with 15.8 percent in 2000.
Expanding into other markets is vital. “We need more New Zealand companies to investigate the opportunities and develop the capability to engage in international markets,” said Leone Evans, Food and Beverage Sector Director, New Zealand Trade & Enterprise.
The country exported NZ$20.77 billion (US$12.38 billion) in food and beverage product products to the world in the period July 2007 to June 2008. The US is its biggest buyer with a 10.85 percent share. There are a notable number of Asian countries in New Zealand’s list of Top 10 F&B Export Destinations. Japan is ranked third and imported NZ$1.57 billion in New Zealand F&B products. China, Indonesia and Malaysia also made the list with NS$974.2 million, NZ$671.77 million and NZ$628.48 million respectively. Altogether, the top four Asian importers account for more than 18 percent of New Zealand’s total F&B exports.
Values in NZ$ millions
Asia presents truly attractive markets as export springboards. “Asia is a familiar market with the most potential. Notable ones include Singapore, Hong Kong and Japan,” said Blair Dale, Director of Honey Products (New Zealand) Ltd (HPL).
The company grew out of an initiative by more than 10 beekeepers to work together to develop the export markets, and reduce reliance on domestic demands. These beekeepers originate from the southern region of the South Island and this banding gives HPL access to critical volumes of honey as one entity.
There are up to seven different varieties under the same brand name, Clear Skys. The source is diverse and clean and some are organic by nature. HPL is an effort of South Island beekeepers to market this 100 percent natural New Zealand goodness. “New Zealand is lucky to have a dependable verification system in place. The New Zealand government is very supportive. This makes us very exportable. It is relatively easy for us to meet and fulfil import regulations in each country. Also, people are comfortable of buying from us as we stay true to our origins and what’s stated on the labels,” said Dale.
Two of New Zealand’s leading meat processors/exporters, Highford Marketing Group Ltd and Fishers Meats Ltd, have also their eyes set squarely on this region with great hopes to grow internationally through it. Highford has placed its bets on Asia since some 15 years ago. The company is 50-percent owned by Independent Fisheries Ltd, one of New Zealand’s largest privately-owned fish processing companies. Today, besides supplying fresh and processed fishery products, Highford also offers beef, sheep meats and venison. Meat accounts for 65 to 70 percent of the business.
Korea is Highford’s largest export market and the company is now targeting Beijing and Ho Chi Minh cities. “We’ve been concentrating on Asia for the past 15 years because we see great potential here. It is not self-sufficient and needs to import. Asians today are brand conscious and appreciate our innovative approaches,” said Jonathan C Tallott, Managing Director of Highford.
Koreans, in particular, know what kind of products they really want, Tallott continued. “Our target consumers have high disposable income for branded goods and food is one of those. These are people in the mid-high to high-end markets”.
Fishers Meats has been processing meat since 1919 and began exporting to Asia only late last year. The export license for shipments to the Asia Pacific was obtained in October 2007. The company specialises in the production of lightly marinated moisture infused portion-packed meat products and has one processing facility each in New Zealand (15,000 sq m) and Australia. The latter, named Food Partners and based in Queensland, is a Halal-licensed plant with full export standards. Traceability is a chief element in these plants that are equipped with automatic bar-coding systems.
Although only a newbie in the Asian market, Fishers Meat has already rolled out meat flavours that are modified to suit each Asian country. According to John Fisher, Chairman and export liaison officer of the company, the Asian range generally contains lower salt content. Familiar oriental flavours such as ginger, coriander, garlic and teriyaki beef are newly introduced alongside National Heart Foundation-approved version of the Apple With Manuka Honey Pork Sirloin.
“All these are sealed in convenient cooking packs with very little waste generated, moisture loss or shrinkage. The portion control packs are great for supermarkets while we target the wholesale and hospitality sectors as well. We are producing about a container of meats every other day and shipments usually take about six weeks to reach the customer,” Fisher said.
While Fishers Meat focuses on meat processing and export, Highford aims to be a one-stop export source for a wide variety of product types. In addition to meats, Highford supplies patisserie ingredients such as fruit fillings, sauces, chutneys, toppings, and curds too. As a full-fledged sourcing service, Highford included other famous New Zealand products such as berries, honey and wine into its offering. The company constantly adds new products to its portfolio. A brand new range of exports, including Cookie Time cookies, wines and new Barker’s products, previously never been shipped out of New Zealand, were profiled at the Food&Hotel Asia fair in Singapore on April 22-25, 2008.
“We started this one-stop export shop concept two years ago to include meat, seafood and patisserie,” said Tallott. He added that Highford is able to locate and supply food products that are tailored to its clients’ specific needs, many of which include importers, distributors, restaurant chains, supermarkets and airlines throughout Asia and beyond.
Highford pays a concerted attention to the hotel and hospitality sector. It counts as a major strength, its ability to consolidate shipments of assorted items at its facility in Christchurch, New Zealand. The Christchurch processing plant is built with inventories that are equipped with chillers and refrigerators. As an added value service, Highford also offers tailored options such as portion control and pre-cooked packaging. “This helps our clients to cut costs by housing less inventory and we benefit from the faster turnovers,” Tallott said.
The next steps would be to grow its supplies to retailers. Highford is currently working with a Singapore-based retail store called Absolutely New Zealand, which sells and promotes New Zealand goods exclusively. “The store appeals to expatriates and consumers who are more westernised. We feel that we can develop stronger relationships with our clients by meeting them to find out about their needs. Retail is the best way to do so,” Tallott explained.
For OceaNZ Blue Ltd, a New Zealand-based producer and exporter of premium quality abalone, the US and Japan (among New Zealand F&B exports’ top three buyers) markets are the most lucrative. Up to 1.5 tonnes of the pristine abalones are shipped to the US monthly; about half a tonne to Japan. The company was established only in 2002 and began officially marketing the product only in February 2008. Now, it produces about 75 tonnes of abalones a year. This output is expected to reach 140 tonnes by 2010 when the facility in Bream Bay reaches full capacity.
According to its Director John Illingsworth, OceaNZ Blue abalones are grown in the pure clean waters of the Pacific Ocean. World-class technology and an advanced filtration system ensure that no worms, weeds or barnacles pollute the tanks in which the abalones are grown. Adult abalones are fed a high quality all-natural diet of seaweed and plant proteins. The Ministry of Agriculture and Fisheries certifies the facility and product disease-free. All these efforts give OceaNZ Blue’s abalones their clear white meat and coral blue shells.
These extraordinarily coloured abalones are cryogenically (nitrogen) frozen in just three minutes after they are removed from the growing trays. This technology costs two to three times more than other run-of-the-mill methods. In exchange, OceaNZ Blue’s abalones are able to retain their sashimi grade texture, which the Japanese are familiar with and extremely demanding of.
“It took us 18 months to sell to this leading Japanese importer. The product has to always be consistent, of the same size and taste good. This market loves branding, packaging and presentation. OceaNZ Blue’s abalones are perfect for them,” said Illingsworth.
Lloyd added that this remains as a low-volume product that will work better in the foodservice sector. Only by working with restaurants and top chefs can OceaNZ Blue offer a guaranteed supply of the premium abalones. “It takes only one to five minutes to cook the abalone. It can also be eaten raw from its shell. This means turning the ingredient into a S$30 dish in less than five minutes any time,” Lloyd added. That is freshness, flavour, safety and technology amplified not once in a blue moon but consistently found in a blue-shelled abalone – a quality characteristic of so many New Zealand F&B exports.
Fronting Export Excellence (Part II of II)
‘Exploring Food Export Opportunities’ – a seminar organised by SPRING Singapore – invited food experts and regulatory authorities to provide updates on the latest developments and give insights into food safety standards, regulations and compliance issues. Food Export International reports on this seminar in a two-part series: in this final installment, we more from the presentations at the seminar as well as some excerpts from the industry sharing session.
By Ong Hong Tat
“Shopper buying behaviours are changing, private labels are broadening and deepening their ranges and retailers see merchandising as a way to redefine convenience for the food shopper. In a recent market survey, as many as 14 percent of shoppers responded positively to the notion of paying more for organic food, 10 percent are willing to pay for ethically produced foods and 9 percent for goods that are better for the environment.”
“Product research is another key area that manufacturers should not ignore. True innovation has a historically greater success rate than a ‘me too’ attitude or a simple extension of existing range. Manufacturers must deliver what it claims about its products, it must deliver its concept promise. Producers should also look towards developing long-term support capabilities in servicing retailings and the public, in this aspect persistence is essential and will pay off in the long run. Speed is of the essence in pushing new products: the first-to-market will enjoy lasting advantage.”
“That said, why 90 percent of new food and drink in the market fail within the initial two years can be due to a lack of truly cross-functional teams , a failure to end bad projects early and investing more than is necessary, poor project prioritising , insufficient information of the target audience and an allconceived, poorly resourced product launch.”
“To save on labour costs, more retailers are employing technologies such as Radio Frequency Identification (RFID). Due to the food scares and other factors, consumers have begun to demand more complete traceability for their foods and retailers are taking note. In addition, the store formats of old are no longer enough to attract the buying public. Retailers are increasingly trying out new store formats and opening more stores in less traditional areas to expand their reach.”
“Tesco’s strategy is an example of how retailers are changing in the face of an evolving consumer base. They aim to sell more to existing customers by offering food with segmented private labels, expanding non-food and services in their stores, helping their customers save by putting price pressure on their suppliers and finding more ways to cut costs internally.”
“These strategies are making sense in the high-cost climate and business is brisk. Supermarkets’ own labels in the UK successfully penetrated many categories of food. Private label frozen desserts and ice-cream have a 67.8 percent share of the UK market, pasta products 66.3 percent, cheese 61.1 percent and canned fruit 59.4 percent. Additionally, product categories like cakes, frozen fish and frozen ready meals all have a penetration rate of above 40 percent. We should keep in mind that we are no different than other industries and cross-referencing might bring about big ideas.”
“Sin Hwa Dee has built a good export network. We export to more than 30 countries and are listed in major supermarkets worldwide. In addition we also supply major food service institutions – fast food chains, airlines and hotels. We also manufacture for major retail chains and international sauce manufacturers under their own labels.”
“To bring our brand Chng Kee’s abroad, we built a dedicated export team, adhered to the regulations of destination countries and tweaked our taste profile for different markets. Other marketing efforts include good visibility at international trade shows supported by a constantly upgraded manufacturing capability and market support for our distributors.”
“The US consumer is more open to Asian and new flavours and mindful of their foods’ health benefits. They also like convenience foods and are looking to diversify their supply sources beyond China. Distributors in the US are attracted to unique products that are produced with strict quality controls, competitively priced and in-demand. Of course, these products must comply with US Food and Drug Administration (FDA) import regulations. Other things that distributors look for are: the reputation of the manufacturer and the level of commitment to marketing support that the manufacturer is willing and able to provide.”
“Preparatory work cannot be neglected. Do your homework and find out about import regulations, labelling requirements and permitted level for additives. Although time consuming, it helps manufacturers keen to enter the US market avoid potentially costly pitfalls. To do this, speak to the local tradepeople that are familiar with the system, it will reduce your number of misses.”
“There are many things to do before exporting to the US. First, have your factory certified by the US-FDA. Look at the ingredients in your products and make sure they are compliant with latest regulations. Once this is done and your products are out the door, keep all the necessary information and documentation pertaining to the shipment in case complications arise during customs clearance.”
“All this might seem daunting but there are ways to overcome these obstacles to fruitful and profitable trade with the US. Talk to the right people and spend time to understand the system. Do not be afraid to make mistakes, choose your partners wisely and work with the right distributors.”
After the speakers’ presentations, a few of them shared more insights and delved into other issues of food export. Here are short summaries of what they said:
“US consumers do not particularly remember positive reputations but they look out for negative ones. So exporters should not be disheartened if they do not hear anything about their products. In this sense, for the food market, no news is good news.”
“There is a taste for the exotic in the US. As long as the taste and texture of the product is acceptable and roughly familiar to the US palate, it is worth a try exporting it to the US. That said, manufacturers must also be willing and able to label the products accurately because food regulations and consumers are particular about having truthful information on the products they buy.”
“US imports of fish go through a whole battery of tests for: chemicals, sanitation levels, micro-biological count, pesticide residue and accuracy of labelling. Randomly sampling, the US-FDA will foot the bill of the tests if they find nothing wrong. Conversely, the exporter will have to pay the cost of the tests if the FDA does detect non-compliance. This mechanism effectively ensures the buying public that the FDA will be actively sieving out cases of unsafe food and exporters, keen to avoid paying, will take precautions in preparing their US-bound shipments.”
“When exporting your products, distribution channels and partners will play a decisive factor in success. Companies must invest the necessary amount of time to assess the suitability of their partners. When exporting, it is important to know what kind of market and audience you are going after. Will you be looking to go into mainstream markets or the ethnic markets? These decisions will affect the way you choose distributors greatly.”
“However, a few maxims apply. Companies that want long term profitability in exporting must also put their sights further. Look for committed partners by scrutinising their histories and the range of products that they distribute, do they have a strong suit? Is that strength beneficial to your product? Look for collaborators that will help you build your brand overseas and ask around about their reputations. Often, this kind of research and groundwork will pay off handsome dividends later.”
Size Does Matter
Entering its 12th year and biggest edition ever, FHC China’s scale itself is a major attraction. International content meets quality local buyers here – a positioning which organiser Brendan Jennings says is unparalleled in China.
By Nicole Liang
The biggest highlight at FHC China this year is simply that it is the biggest in scale, ever, in its 12-year history. In terms of exhibitor numbers, FHC China 2008 sets a record high of 800 companies from 37 countries and regions including Taiwan and Hong Kong. Last year, 750 companies from 32 countries and regions participated. Show area has also grown by 20 percent to 33,000sq m.
The country pavilions lined up, in particular, bear great testament to FHC China’s popularity and effectiveness in helping international companies export to China. There will be several country pavilions that were never featured before previously. They include: Ireland, Australia, Belgium, Chile and Ecuador. The US, France and Italy will return with their largest showing ever.
“Italy is an interesting participant in that the Italian marketing of food is really quite diverse worldwide because there are so many influencing bodies and factors involved. This year, the Italian Trade Commission has decided that each region, all marketing budgets, and anything related to the marketing of food and wine in China must be coordinated under designated events. FHC is one of them,” said Brendan Jennings, General Manager of China International Exhibitions Ltd, a member of the Allworld Exhibitions Alliance. CIE organises both FHC China and FHC Beijing.
“It’s a major acknowledgement of the importance of the show that they have chosen us,” Jennings added. The Italian Trade Commissioner, Maurizio Forte’s letter to CIE reads: “China offers considerable growing opportunities for the Italian food and wine products and during the last few years we have experienced that FHC has worked as an efficient platform, becoming one important appointment for the Chinese market. Therefore we are confident that the Italian participation at FHC [China], though your special support, will offer interesting opportunities to the Italian companies to meet potential partners and to improve their knowledge of the local situation”.
In addition, New Zealand, Germany and Japan will be doubling their show areas from last year. “New Zealand has got a [dedicated] marketing programme for China. Last year, they had one block in their first attempt in FHC China. It was very successful so they are doubling to two blocks,” said Jennings.
With respect to Germany’s move to expand, Jennings shared: “Germany is going a full circle. They’ve been here every year. When the Germans first started exhibiting, they took up two blocks and this continued for many years. But as the reality of the difficulties of marketing to China became more apparent to German companies, the group shrank to one block. Again, the cycle has turned. The Chinese market is getting easier to penetrate. There are more distributors and more demand for German products now. So it’s back up to two blocks”.
German products now. So it’s back up to two blocks”. Japan’s increase in support for FHC China, according to Jennings, is mostly politically driven. He explained: “Hu Jintao made his first prime ministerial visit to Japan in the beginning of the year. This had a great impact in warming relations between the two countries. Japan’s participation in FHC China is marketed by its Ministry Of Agriculture And Fisheries”.
A constant point of differentiation, which FHC China prides itself on, is its global composition. Almost 100 percent of its exhibitors are foreign. Unlike the numerous food exhibitions in China, this is a platform for imports into China.
“FHC China’s focus is on international products for the Chinese market. All of the other shows base their focus on Chinese exhibitors selling to local or export markets. These do not conflict with us. Nothing comes anywhere near to the international content of FHC China,” Jennings said.
FHC China as a link between foreign exporters and Chinese importers is vital. Chinese regulations prohibit international companies from selling directly into China; all products must go through local importers and distributors. Hence Chinese importers and distributors also form part of FHC China’s exhibitor list. There were 77 of them last year. Contact details of all these exhibiting buyers are compiled and given to international exporters.
Some major importers who have confirmed their exhibition spaces include: Goodwell China; Sinodis (Shanghai); Brightview (Shanghai); Wilson International; Carlisle Foodservice Products; ConAgra Foods Packaged Foods; and Metro Jinjiang Cash & Carry. “Most supermarkets and retailers don’t have import licenses but Metro has a separate company called Gourmedis, which is their special importer. Metro can buy from others but they tend to buy through Gourmedis,” Jennings added.
CIE also works closely with several food-related associations in China to bring in more trade buyers. One of them is the Shanghai Imported Food Enterprises Association. The association comes under the hygiene and quarantine department in Shanghai, which issues approval certificates for all products going into the country. All importers and distributors in Shanghai are members of the association. Jennings invites a group of 15 members, different ones each year, to visit the show.
Foreign companies keen to market their products areas like Tianjin, Wuhan and Hangzhou will find the presence of the Association For Second Tier Cities In China at the show especially useful. “The association acts as a centralised purchasing point for smaller importers in second tier cities, who perhaps can’t afford to import a container of, say, peanuts from America. They consolidate all the purchases and then distribute them to their members who then sell in smaller quantities throughout China. Quite often, you’ll find importers and distributors in Shanghai who sell to these associations and their members,” Jennings said.
Exhibitors can expect to meet some foreign attendees at the show. Although CIE does not market the show to visitors outside China, these foreigners may be future food manufacturers who could be FHC China’s exhibitors or foreign buyers who want to meet New Zealand or Australian companies at the show.
Most international exhibitors at FHC China are relatively new to the Chinese market. As organiser, CIE assumes the guiding role in easing these foreigners into local culture and regulations. “We have to do a lot of hand-holding with them, much more so than our competitors have to, because their clients are mostly Chinese who know what they’re doing in China. It’s quite surprising how uninformed many of our clients are of the Chinese market,” Jennings revealed.
Consequently, briefing notes and on-site consultations are given to exhibitors before the show opens. Besides advise on Chinese manners and customs, importers and shippers are also invited to chair sharing sessions. These importers will give presentations on the real facts of doing business in China – what commodities are hot and what are not. Att
