Weekly comment

Food supplements proving recession-proof

14-Apr-2009 - The ongoing slide of global capitalism is decimating industries, but the food supplements industry is not one of them as fraught consumers turn to its potential low-cost, anti-medical, wellness promise.

Palm oil prices soar as Malaysian stocks fall short of demand

14-Apr-2009 - Oilseed analysts are predicting a squeeze on supply of Malaysian palm oil for months to come, as prices are pushed up by farmers’ inability to invest in inputs and poor extraction rates – while demand for fried and oily food is not abating.

EC approves Ebro sugar business sale to ABF

31-Mar-2009 - Associated British Foods’ €385m acquisition of the Spanish sugar company Azucarera Ebro has been given the go-ahead by the European Commission.

Ocean Spray unveils cost-conscious cranberry range

30-Mar-2009 - Ocean Spray's Ingredient Technology Group has formulated a lower cost sweetened dried cranberry (SDC) product to meet demand for cost-effective and value-added ingredients in the face of rising commodity prices.

Heinz sells aroma and HVP business

27-Mar-2009 - Exter has announced the acquisition of Heinz’s aroma and HVP activities to broaden it product range and strengthen its savoury flavouring business.

The up-side of downturn for acquisition hungry food firms

23-Mar-2009 - Acquisition hungry food firms with a strong capital structure can benefit from acquisition opportunities thrown up by the economic turmoil, says an analyst – a view shared by Israel’s Frutarom, which last week reported a record year of profits following a spree.

Danisco counts cost of ingredient sales slowdown

18-Mar-2009 - Danisco has reported a slowdown in food ingredient volume sales in Q3 as the economic downturn kicks in; sweeteners and enablers are worst hit, but growth rates in cultures ‘satisfactory’.

Cost and success strategies to tackle volatile markets

10-Mar-2009 - Cutting costs is the top priority in 2009 for food and beverage companies, according to a report from Deloitte which outlines strategies companies can adopt to stay ahead in challenging economic times.

Certifier decides against easing organic rules during recession

10-Mar-2009 - UK organic farmers will not have the option to switch to conventional animal feed during the recession, the Soil Association has decided, as a consultation raised concern for consumer confidence.

PureCircle reaps rewards for Reb A contracts in H1

04-Mar-2009 - Reb A producer PureCircle has reported a net profit increase of 75 per cent for the first half of 2009 after securing major contracts with companies including PepsiCo, Whole Earth and Cargill ahead of regulatory clearance in key markets.

Grim outlook prompts sweetener action from Danisco

03-Mar-2009 - Danisco reducing its production of xylitol in China and mothballing its xylose facility, as its sweeteners division is implicated as one of the causes of lower earnings expectations.

Nordzucker, Danisco negotiate new sugar deal price

20-Feb-2009 - Nordzucker will buy Dansico Sugar for DKK5.45bn, a renegotiated price following the divestment of one plant to Cosun for competition reasons.

Competition causes concern in retailer-manufacturer dealings

20-Feb-2009 - The CIAA has expressed its concerns over the alleged abusive practices by retailers in their dealings with food manufacturers, as high food prices in 2008 put firms under pressure.

Nestle uncowed by economic outlook

19-Feb-2009 - Nestle expects to carry on seeing growth in earnings over 2009 despite the global recession, using its strong 2008 results as a springboard for growth.

Private label trend reduces the power of brands

16-Feb-2009 - The switch to private label over branded food is gathering pace in the recession, according to an index compiled by a UK newspaper, which may tighten the squeeze on branded goods manufacturers.

More reformulation on the cards, predicts RSSL

13-Feb-2009 - Food reformulation is expected to gather pace as the credit crunch hits home, predicts Reading Scientific Services (RSSL), which has seen an increase in enquires from customers seeking cheaper alternatives to costly inputs.

Unilever in supply standoff with major retailer

12-Feb-2009 - Tension between Unilever and a major supermarket chain has resulted in the de-stocking of 250 of the manufacturer’s products because it was making strict demands over what the retailer should sell.

UK food and drink sales resist recession pressures (so far)

11-Feb-2009 - While the recession bites in the UK, and consumers tighten their belts, food and drink retail sales were up 5.1 per cent, on a like-for-like basis from January 2008.

Frutarom completes acquisition of UK flavour group

05-Feb-2009 - Frutarom has finalized its acquisition of the UK flavour and fragrance company Oxford, which brings it one step closer to its goal of being a $1bn group by 2012.

Cashing in on phosphate price hikes

30-Jan-2009 - The market for cheaper alternatives to phosphates used in food is expected to blossom over the next few years as prices for the ingredient are likely to remain high, according to an industry analyst.

ADM strengthens European position with Schokinag acquisition

26-Jan-2009 - Archer Daniels Midland Company (ADM) is continuing its march into the European chocolate market and moving closer to its customers on this side of the Atlantic with the acquisition of the German firm Schokinag.

Recession bites into Barry Callebaut chocolate sales

23-Jan-2009 - There is further evidence that the market for chocolate is not as recession proof as traditionally thought as Barry Callebaut sales in Europe saw a marked drop over Q1.

Comparative cost of enzymes is boon to Novozymes

23-Jan-2009 - The high cost of inputs that has dogged the food industry in recent times looks to have helped raise the profile of enzymes as cheaper alternatives to other ingredients, according to Novozymes’ annual report.

Enzyme technology is tool for sustainable food, report

22-Jan-2009 - More research is needed on innovative raw material sourcing and alternative uses, according to a new report on how chemistry can contribute to sustainable food supply, which sees novel enzyme technology is a key area of development for ingredients, processing and preservation.