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15.53 Soft Drinks Internationa l – October 2011 ConTEnTS 1 news
Europe 4 Africa 8 Middle East 12 The leading English language magazine published in Europe, devoted exclusively to the Asia Pacific 16 manufacture, distribution and marketing of soft drinks, fruit juices and bottled water. Americas 20
Ingredients 24 Balanced And Prolonged features Energy 48 Juices & Juice Drinks 28 The latest research from Beneo provides Developing Markets 40 valuable insight for functional beverage Energy & Sports Drinks 30 Rapid changes in the demographics of developers, according to Tim Van der developing markets may be particularly Schraelen. Waters & Water Plus Drinks 32 important for sports drinks, reports Carbonates 34 Richard Haffner. Reformulating For Success 50 Adult 36 Peak Performance 42 Anne Barry takes a look at some options for Beverages fortified with soy protein can calorie reduction in beverages, whilst Teas 38 improve endurance, writes Kimberly J. retaining original taste. Decker. Process 58 Natural, Calorie-Free Optimising Potential 44 Sweetness 52 Packaging 60 L-carnitine can support consumers in Ah ead of the eagerly anticipated EU their exercise by delaying the onset of Environment 63 approval of stevia-based sweeteners, Wild fatigue and speeding up recovery, says introduces its sugar substitute, Sunwin. People 66 Adriana Williams. Events A New Era 54 68 Building Muscle Significant investment by the carton Strength 45 industry is making it easier for consumers Bridget Holmes analyses how hydrolised to recycle, writes Richard Hands. regulars whey protein improves muscle protein synthesis. Comment 2 Meeting Sustainable Packaging Demands 55 BSDA 33 Whey Protein 46 New technologies for PET can help A new study has shown the ability of reduce energy and improve recyclability, From The Past 69 whey protein to improve bodyweight and according to Zach Crawford. composition, reports Mark Neville. Bubbling Up 70 Recycling On-The-Go 56 Buyers’ Guide 71 The ‘Every Can Counts’ programme continues its success in providing sup - Classified 73 port for can recycling.
Front Cover: ©Francesco Ridolfi (from Bigstockphoto.com) www.softdrinksinternational.com 2 CoMMEnT Soft Drinks Internationa l – October 2011
Published by ASAP Publishing Limited Editor Philip Tappenden News Editor Annette Sessions
Correspondents: EUroPE Gerard o’Dwyer Size matters Lubomír Sedlák Bernadette Tournay The autumn's seasonal exhibition/conference season is well underway against the ASIA & PACIFIC backdrop of further turmoil in the developed world's economies. Growth is Kelvin King T. C. Malhotra stagnating and there are fears of a double-dip recession in America and Europe. It seems that a sustained and viable recovery is some years away. For the soft drinks AMErICAS industry, a poor summer in Europe has not helped. richard Davis Politicians of all persuasions are telling us that we are going to be feeling the Market Analyst pinch for some time to come. Belts will continue to be tightened. richard Corbett It's become evident that producers are making their beverages more affordable by downsizing their package size in response to the considerable challenge of rising raw ingredient and packaging costs. Thus, in the UK, former one litre Annual Subscription Rates (inc. postage) cartons of innocent smoothies are now 750ml; Britvic has introduced a new 250ml EU Member State: £110, €150 size in multipack whilst in the US Coca-Cola has just announced that it is rest of World: £125, €170, $200 “providing a more affordable price point for the popular 7.5oz mini can to expand Individual copies: £15, €20, $27 consumer's options for enjoying their favourite Coca-Cola beverage.” An 8-pack of Coca-Cola mini cans will cost less than US$3. This makes the per can cost Subscription Enquiries comparable to that of the 12 oz can fridge pack for most of the year. Coca-Cola also Soft Drinks International says a new 12.5oz PET bottle will soon become available. Po Box 4173, Wimborne BH21 1YX, UK At a time of austerity consumers are wanting honest, value for money, Tel: +44 (0)1202 842222 beverages. There is nothing wrong with reducing the pack size by some 25%, Fax: +44 (0)1202 848494 unless consumers are being disingenuously hoodwinked. Clarity on pack size and E-mail: [email protected] cost is called for. Packaging has never been more important: environmental and sustainability Editorial - News considerations (lightweighting, recyclability, forest stewardship), adherence to A & S Editors labelling guidelines, especially when it comes to nutritious and health claims, 5 Gloucester Street, Faringdon, oxon. Sn7 7JA, UK traffic lights and GDAs and, above all, a stand out on shelf presence is a Tel: +44 (0)1367 241660 demanding brief for designers. E-mail: [email protected] Innocent has been an innovator when it comes to design and admired for its original quirky, distinct brand identity. Such has been the success of the smoothie Editorial - Features company's image, or 'personality' that it has been mirrored by others. However, in Soft Drinks International these straightened times, the innocent look could be at risk of becoming past its Po Box 4173, Wimborne BH21 1YX, UK own ' sell by date'. A new blog Wackaging has highlighted that consumers are Tel: +44 (0)1202 842222 becoming irritated with 'chummy' packaging. Brand designers should take note. Fax: +44 (0)1202 848494 E-mail: [email protected]
Advertisement Sales Soft Drinks International Po Box 4173, Wimborne BH21 1YX, UK Tel: +44 (0)1202 842222 Fax: +44 (0)1202 848494 E-mail: [email protected]
Middle East Representative Valentina Lotfy Tel: +971 503059019 E-mail: [email protected]
US Representative Soft Drinks International (1997), formerly Soft Drinks Management International (1988), richard Davis Tel: +1 479 963 6399 was originally founded as the Soft Drinks Trade Journal in 1947, incorporating The British & E-mail: [email protected] Colonial Mineral Water Trade Journal (1888) with the Soft Drinks & Allied Trade Review, formerly the Mineral Water & Allied Trade Review (1873). © 2011 ASAP Publishing Limited The entire contents of Soft Drinks International are protected by copyright and no part may be reproduced without written permission of the publishers. Whilst every effort is made to ensure that the information contained in S oft Drinks International is ISSn - 1367 8302 accurate, the editor and publisher cannot accept responsibility for errors, and the views expressed do not necessarily represent those of the editor or publisher. The fact that product names are not identified as trademarks is not to be taken as an indication that such www.softdrinksinternational.com names are not registered trademarks. Soft Drinks Internationa l – October 2011 Late Bulletin 22nd-26th November Fraser and Neave (F&N) has said that it will look to expand 2011 its regional presence and brand portfolio following the end of its partnership with The Coca-Cola Co . F&N has held a fieramilano Rho - Italy contract with Coca-Cola for the past 75 years, through which F&N bottled and sold Coca-Cola's drinks in Malaysia, while opening time 9.00-18.00 Coca-Cola did the same for F&N in Singapore. However, the pavilions 9-11-13-15 two firms officially ended their partnership last week, after Coca-Cola decided back in 2009 not to extend its contract further with the Singapore-based firm.
Parmalat has denied reports that it is looking to sell its fruit-juice unit Santal . Italian business daily Il Sole 24 Ore said th in an unsourced report that Parmalat was mulling the sale of 24 Santal for around €200million (US$264million). However, the Italian dairy and juice maker moved to deny the reports this morning. "Parmalat communicates that the news published today on the Italian newspaper Il Sole 24 Ore related to the possible divestment of the Santàl assets is completely unfounded," the company said in a statement.
Campbell Soup Co has launched an advertising campaign in the US for its V8 brand, featuring actor Jackie Chan. Using the tagline, "Could've Had a V8", the campaign will comprise of two television advertisements, the firm said. The first – 'Balcony' – aired yesterday, featuring Campbell's V8 vegetable juice range. A second advert – 'Sidewalk' – will follow, featuring the V8 V-Fusion smoothie range.
PepsiCo has said it will launch its 'PepsiCo10' programme, which aims to give ten emerging technology companies an opportunity to work with the soft drinks company, into the emerging markets. PepsiCo launched the programme in the US last year, followed by Europe in June. However, the company said that it will now look to the emerging markets next year in INTERNATIONAL ENOLOGICAL AND a bid to extend the programme further. BOTTLING EQUIPMENT EXHIBITION
Pacific Water & Drinks (HK) Group has completed the acquisition of China Water & Drinks for an undisclosed sum. Icelandic Water Holdings-owned Pacific Water, said that the purchase will allow it to capitalise on opportunities in the SIMEI Chinese markets. The acquisition is expected to result in a combined total production capacity of around 1.3billion bottles is the world’s leading per year. exhibition for machinery, The Pulse Beverage Corp has expanded its distribution in equipment and products for the US to the state of Nevada. The US soft drinks firm has secured a deal with Dr Pepper 7Up Bottling Co for the the production bottling distribution of its Cabana lemonade range in Nevada. Dr Pepper 7Up Bottling Co distributes to retail outlets throughout Nevada, California, Idaho, and Wyoming via distributor and packaging of drinks agreements and through its distribution facilities in California and Idaho.
Pussy Drinks has secured funding in order to allow it to launch its energy drink globally. The UK energy drinks visit our website www.simei.it producer said that it has received an investment from entrepreneur Richard Branson's children, Sam and Holly, that for further information will allow it to expand the reach of its namesake beverage. Financial details of the investment were not disclosed. SIMEI via San Vittore al Teatro, 3 20123 Milan - Italy tel. +39 02 72222825/26/28 Hotel and Travel fax +39 02 866575 www.interexpoevent.it www.simei.it – [email protected] 4 InDUSTrY nEWS Soft Drinks Internationa l – October 2011 Isklar restructures Europe and seeks investment
Strong half year ON 31st August, the Board of Isklar AS was granted a public debt restructure for nichols order through the district court of Hardan - ger, Norway. The court will appoint a spe - ANNOUNCING its interim results for the cialised administrator to work closely with period ended 30th June, 2011 Nichols plc both the Management Team and Board to reports that group sales rose 14.4% and that assist in a debt restructuring process. profit before tax was up 20.4%. Earnings per The administrator, however, has no for - share rose 23.8% with an interim dividend mal authority in Isklar AS; the Management up 12.4%. Team and the Board remain in full control Nichols' brand portfolio includes Vimto, of the company's operations. which is sold in over 65 countries and Levi As part of this action, the company will Roots (soft drinks), Sunkist and Panda which cut all unnecessary costs across the busi - are sold in the UK. The group has a leading ness which includes some staff redundan - market position in both the 'stills' and 'car - cies. However, all the key production and bonates' drinks categories, and in the soft supply elements of the day- to-day activities drinks on dispense market where its brands will remain business as usual. include Cabana, Ben Shaws and Dayla. The Board and Management Team are John Nichols, Non-Executive Chairman, now actively seeking and currently engaging said the results were excellent, adding: “In with interested third parties that can pro - context, our strong performance was also vide Isklar, the bottled water brand, with achieved against the well-documented eco - the distribution and brand-building support nomic challenges affecting the consumer, that the brand requires for continued suc - compounded by almost unprecedented raw cess. material cost inflation in the food and drinks Isklar was successfully launched in the UK sector. “We have again grown our UK mar - in April 2008. Since then it has won 10 ket share and our international business con - international awards for design and market - tinues to thrive. We expect full year profits ing achievement and become the fastest will be significantly ahead of last year.” selling 500ml bottled water brand. In the UK Isklar is stocked in 10,000+ impulse stores in addition to high-end department and grocery stores. cant industry expertise to the table. Com - norwegian bining these important new investors with our existing base of loyal and passionate tributing more than 600,000 water-coolers bottler gets investors, gives Voss a powerful platform of to business customers annually, Eden Springs support for our growth plans.” Group is the market leader in the water capital injection John D. Shulman, incoming Chairman of cooler industry. The company, whose head - the Board for Voss and Founder and Manag - quarters are in Switzerland, has a turnover VOSS, the Norwegian bottled water com - ing Partner of Juggernaut Capital Partners, of over €250 million and employs more pany, has raised US$18 million (approxi - said: “Jack is a leader in the beverage indus - than 2,300 staff. mately £11 million) in strategic funding led try, and Voss is a unique brand with strong Warwickshire-based Shakespeare Coffee by new investors, Juggernaut Capital Part - global presence. We look forward to partici - Company has an annual turnover of over ners, L.P. and Centra pating in the Voss growth story, here in the €5.75 million and operates approximately Capital AS. The addi - US and internationally.” 4,500 machines throughout Scotland, Eng - tional funding will go land and Wales. The company specialises in towards the company’s premium coffee brewing systems and vend - continued growth within ing machines, with a client base spanning the US and Norway, Eden Springs small to medium offices and large, national, along with further multi-location businesses. expansion in key inter - expands its Chief Executive Officer of the Eden national markets includ - Springs Group, Raanan Zilberman, explained: ing the UK. product offering “Over the past 20 years, our strategy has Voss, artesian water been to expand the group’s operations from Norway, was EUROPE’s leading water cooler supplier, through a combination of organic growth founded in 2001 and is Eden Springs, has acquired Shakespeare and acquisitions. More recently, we took the claimed one of the Coffee Company via its subsidiary in the strategic decision to offer coffee solutions purest bottled waters UK. This is another acquisition in the coffee to our customers, supplying a full package available in the world. industry for the group, which reflects the proposition and acting as a ‘one stop shop’ Jack Belsito, Group company’s commitment to strengthening its for hydration solutions. The acquisition of CEO of Voss, said: “We coffee and hot beverages business unit. Shakespeare Coffee Company strengthens are delighted to wel - With the acquisition Eden Springs UK will our market position in the UK and creates come Juggernaut and deliver the complete hydration package a solid platform for future business growth Centra to our team. including mains and bottle-fed water cool - and consolidation of the B2B beverage They both bring signifi - ers, hot chocolate, tea, coffee and soup. Dis - industry.” We offer more ways to achieve success. To us, it’s elementary.
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SOME 1,300 exhibitors will be taking part at Brau Beviale 2011 from 9th to 11th November at the Exhibition Centre Nurem - berg. Stands will embrace new develop - ments and improvements in beverage raw materials, technologies, logistics and market - ing for the expected 32,000 trade visitors. The event is also a forum where experts can exchange views at international level on developments in the global beverage mar - kets. Creativity is a key theme for this year's event. The Modern Packaging theme pavilion is devoted specifically to this with the spot - light on sustainability issues such as light - weighting. According to market analysts Canadean, in 2010 the PET bottle had a leading market share of 34% followed by glass (17%), car - Last year's event drew a large number of visitors. tons (11%) and cans (10%). More and more attention is given to the development of Getränke (wafg – German Soft Drinks Pro - recently published by the German Mineral packages made of renewable raw materials. ducers Association). The per head consump - Water Information Centre. The Handelsver - Soft drinks play a key role at Brau. The tion of mineral and medicinal water band Heil- und Mineralwasser (Medicinal event's organisers report that the global remained at a high level of approximately and Mineral Water Trade Association) consumption of soft drinks in 2010 was 131 litres in 2010. The trend is towards organises mineral water sommelier courses more than 550 billion litres, with a global mineral water with little or no carbonation. that give participants an understanding of a per head consumption of around 80 litres. Whereas the market share of water with wide range of mineral water tastes. There is After the rather lean year of 2009, sales of little carbonation was steady at some 43%, an ever bigger demand for premium mineral soft drinks increased by just under 4%. the share for uncarbonated water rose to waters, and consumers like their water filled About one-third of all drinks sold world - more than 10%. in unusual glass bottles that have won wide are soft drinks. Mineral water remains the most popular design or packaging awards. On closer examination of the German soft drink in Germany. One reason for this Creative thinking works, as proved by a market, the carbonated segment has good may be the variety of German mineral German smoothie brand that cooperated news to report. The per head consumption waters – the consumer can choose from with a designer label. The result was an here in 2010 rose from 117 to 118.2 litres 500 mineral and 50 medicinal waters. unusual bottle design with the design scrib - and reached a record level according to Clever marketing also helps, such as the ble of a specially developed, exclusive t-shirt the Wirtschaftsvereinigung Alkoholfreie brochure 'Mineral Water for Gourmets' on the front.
Transit packaging expansion
LINPAC Allibert, the global expert in plastic returnable transit packaging has extended its UK manufacturing capability and is now set to supply the whole of Europe with the com - pany’s range of Euro Stacking containers from the UK. Danilo Oliynik, the company's Commercial Director in the UK, explained: “Thanks to its heavy-duty capabilities and versatility across multiple applications, the Euro Stacking range has been universally adopted as the stacking container of choice. It is so versatile that it is impossible for us to describe an average or typical usage situation. “As a result of its popularity we have decided to invest further in our manufacturing capability at our plant at Winsford in Cheshire, UK, to meet the demand for this product, and will be supplying both the mainland European and the UK market from there.”
Right: Linpac Allibert's versatile Euro Stacking. Soft Drinks Internationa l – October 2011 EUROPE 7 Community support
COCA-Cola Great Britain has launched a billboard campaign to raise awareness of its partnership with StreetGames, the charity that provides access to doorstep sport for young people in disadvantaged communities 13 year old Charlie Biddle, a young gymnast from Stechford in Birmigham, is one of the poster stars. around the UK. Coca-Cola GB commissioned a series of The festivals are open to StreetGames ple to find out more and get involved with photographs featuring inspiring young peo - participants who attend regular weekly ses- their local StreetGames projects. ple from StreetGames sport projects in sions and are a way of rewarding their More photos highlighting the flavour of England and Wales. The images, shot by attendance while also encouraging them to local StreetGames projects will be turned leading portrait photographer Zak Waters, bring new friends to join in. The billboard into mini-exhibitions in the six major cities depict young people showcasing sport in sites h av e b een donated to th e and a n online gallery of the entire project will their local area. Those taking part range StreetGames campaign by Coca-Cola GB. be showcased on www.coca-cola.co.uk/ from footballers to dancers to BMX riders, The shots aim to inspire other young peo- health/streetgames and www.streetgames.org. all chosen because they have an inspira - tional personal story about how StreetGames has played a positive role in their lives. The images, used in a series of 96-sheet billboards and displayed in the subjects’ home cities throughout August and September, coincided with a schedule of mass-participation StreetGames sports festi - vals running around the UK during the sum - mer.
The machines of the ErgoBloc L have been awarded the enviro seal, by virtue of their minimised media consumption.
UK Milton Keynes North MP Mark Lancaster (left) visited Rexam Beverage Can’s Milton Keynes plant. Ian Clayton, Milton Keynes Plant Manager, conducted You want it? We build it! the plant tour, which allowed Mark Lancaster the opportunity to gain a No one knows your plant better than you yourself. That’s better understanding of both the why we customise our lines to suit your visions – never workings of the plant itself and Rexam as the other way round. Just tell us your destination: we’ll a company, and about the beverage can, find the route, supply the equipment, and stay with you particularly the fact that the can is 100% until you arrive where you want to go. There’s only one recyclable. He was also introduced to thing you’ll never get from us: limitations. Because you Rexam’s Fusion aluminium bottle, which are the sole arbiter of what’s possible. can be used as an alternative to glass in www.krones.com clubs.
13:21:17 Uhr 8 INDUSTRY NEWS Soft Drinks Internationa l – October 2011 60th anniversary Africa celebrations COCA-Cola Nigeria and the country’s Coca- Cola bottler, Nigerian Bottling Company, are Juice concentrates celebrating the brand’s 60th anniversary in Nigeria. The celebrations were launched at a plant ceremony which combined a look at the past, a review of current operations and a view of AFTER pointers to such a venture earlier in the future. the year, Professor Azikiwe Peter Onwualu Speakers paid tribute to NBC’s founder, has confirmed that Nigeria’s Raw Materials Cypriot businessman Anastasios Leventis, and Research and Development Council is to to the many others who had helped build proceed with the establishment of a fruit Coca-Cola production and sales in Nigeria, juice concentrates plant. To be commissioned Professor Azikiwe Peter Onwualu. including NBC’s current 400,000-plus ‘partner before the end of 2012, the plant is distributors’. intended to counter the importing of con - to plant more fruit crops, providing advice While sales of Coca-Cola began in 1951, centrates from other countries, a long-time and plants, as well as working towards NBC opened its first bottling plant in the bugbear for the Nigerian government which improvement of rootstock and planting Oyingbo area of Lagos in 1953. NBC now is concerned that natural fruit resources are methods. has 12 bottling facilities and 60 depots under-utilised and potential employment Onwualu believes that the first concen - throughout the country. opportunities lost because of foreign trates plant will be quickly followed by oth - Speakers at the event included Ambassa - imports. ers, in different regions of Nigeria close to dor Segun Apata, NBC’s Chairman, and Kelvin Onwualu, the council’s Director-General, fruit sources. “Having these plants means Balogun, appointed early this year as Coca- said earlier in the year that his agency had more employment for our people. This Cola Nigeria’s first Nigerian Chief Executive. been able to convince a number of juice would help to drive the demand for more Included in the 60th anniversary pro - manufacturing companies to go into partner - fruit and so more people would go into gramme are a commemorative Coca-Cola ship with it to ensure a concentrates plant planting fruit. It has a spiral effect on the bottle, special TV commercial, consumer was developed. “I am happy to report that economy.” appreciation activities, an arts competition and we got additional support from the World The project was also supported by other a community project in which more than Bank to work with these private companies,” agencies such as the Nigeria Institute for 15,000 school pupils in disadvantaged com - he said. Horticultural Research and the National munities will be helped with back-to-school The council is now encouraging farmers Biotechnology Agency, noted Onwualu. materials.
coconut water, milk and related Soft drinks do well products an excellent alterna - tive to other drinks. Back home with Engager in South Africa, he teamed up last year with Stephen Rathai YELLOWWOOD, a South African marketing to form Coconut Juice SA. consultancy, has released the findings of the They took their idea a step fur - first-ever Engager project in South Africa. ther by discussing agency possi - Coca-Cola and Clover, the South African bilities with the big Thai dairy and juice brands group, took second beverage and associated foods and third places respectively. producer, Ampol Food Processing, at a trade Consumers felt that the Pick n Pay retail exhibition which led to them visiting chain – a big seller of almost all soft drink Bangkok to sign an exclusive distribution categories – was South Africa’s most engag - ment’ are: sensing, knowledge, understanding, agreement and gain further insight to the ing brand. And the fourth, fifth and sixth integrity, connection, commitment and con - products, their production process and placings in the survey also went to retailers viction, participation and advocacy. coconuts themselves. which handle large volumes of soft drinks: Their agency area covers the Southern KFC, Shoprite and Woolworths. African Development Community Region Engager is claimed to differ from other and they are already planning expansion into research approaches because it indicates not Thai coconut markets other than South Africa; Botswana only which brands are successful but also and Zimbabwe moves are imminent. why this is so. “Engager is a pioneering new drinks Coconut Juice SA is now importing model through which we are able to gain a Ampol Food Processing’s King Island much greater understanding of what is driv - COCONUT water and milk are increasingly Coconut Juice, Roi Thai Coconut Milk, V-Fit ing consumers’ engagements with brands popular globally, with a large number of Brownb Rice Milk and the Chaokoh brand, and thereby provide quantified proof to sub - brands offering basic and flavoured variants. including Konjac confectionery jelly with stantiate the top brands’ performance,” A South African company, whose principals coconut gel, coconut nectar, coconut juice explained Kay Nash, Yellowwood’s Chief were inspired by the breadth of coconut and coconut gel in syrup. Executive. beverages available in Thailand, is sourcing its Sales are through health stores, supermar - Yellowwood gained access to Engager portfolio from that country and has experi - kets and gym shops. through its affiliation earlier this year with enced an even stronger than expected mar - Hall & Partners, a global brand and commu - ket response. nications specialist. According to this It all began when co-founder Tshidiso research model, the ‘Nine Pillars of Engage - Thamae spent some time in Thailand, finding Try inside!
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BENEO · [email protected] · www.beneo.com 10 AFRICA Soft Drinks Internationa l – October 2011 Frankie’s gets the Merchandise message across leverages drink
A SOUTH African ‘micro bottler’, Frankie’s brands Olde Soft Drink Company, has done well this year by using a mobile billboard in the form WHEN a brand enjoys a high market profile of a rebuilt classic Ford Escort Mk1. Now it there can be an opportunity to turn this to has extended its advertising-on-wheels with Frankie’s truck – can’t be missed. further advantage by offering not just pro - the introduction of colourfully branded deliv - motional give-aways featuring the brand but ery trucks. Pretoria. The car was built up progressively also high quality merchandise which The first wagon has been evident on the over a year by Frankie’s owner Mike Schmidt, becomes a profit centre in its own right. N3 since 18th July, carrying Frankie’s product who used to be a professional race driver. Clover, South Africa’s big dairy and juice between Durban and Johannesburg. A sec - Frankie’s has developed the concept of beverages group, has created an extensive ond truck has just been added to the fleet. reproducing soft drink tastes of yesteryear, portfolio of branded gear which is selling Meantime, the Ford Escort is likely to be including Homemade Ginger Beer, Olde Style steadily, helped by occasional additions to seen more at classic car events after its suc - Root Beer, Original Cream Soda, Cloudy the line-up. It can be sourced through the cessful debut at the Zwartkops Raceway in Lemonade and Cinnamon Cola. online Clover Boutique via www.clover.co.za Among beverage brands featured in the merchandise portfolio are Aquartz waters, Tropika fruit juice and dairy blends, Clover South Sudan: a Krush 100% juice blends and Capri-Sun juices. new market The merchandise choice ranges widely, including jackets, golf shirts, caps, beanies, AFRICA’s newest country, South Sudan, travel bags and backpacks, cricket hats, key experienced a hard birth, but it is regarded rings, coolers, ‘mobile socks’, beach balls, as having a lot of potential for consumer skateboarder shirts, women’s strappy tops products as it rebuilds after a period of strife and t-shirts.There are also corporate gifts and stress. As we have already reported, and corporate clothing bedecked with the SABMiller subsidiary Southern Sudan Bever - South Sudan’s new currency. Clover brand. ages has doubled the size of its soft drink and brewing operations, as demand grew time, the company indicated it was keen to steadily for its Club Minerals carbonated build export markets as well as boosting range and Source Pure drinking water. domestic sales. Among those in other African countries Citizens of South Sudan are delighted that interested in supplying their products to life is much more settled, despite continuing South Sudan are Urwibutso Enterprises, problems in the border region and other whose product portfolio includes several challenges. One challenge they have coped juice drinks, and Inyange which has the with well is the rapid acceptance of a new capacity at its new Masaka bottling plant to currency, vital to retail viability. boost export sales of its juices, mineral As part of its planned infrastructure build - waters and other soft drinks. ing, the new government set up a Central Clover Krush panel cap. Rwanda-made Agashya juices from Bank which would oversee the currency, Urwibutso are already steady sellers in banks, foreign reserves and so on. It planned South Sudan, especially Juba, the capital city. an orderly transition from the Sudanese erners paid hard currency for it in the first When Urwibutso’s new juice plant at Nyi - Pound to the South Sudan Pound, only to place. Then they changed their currency, trig - rangarama was opened by Tony Blair in have the folks up north say they wouldn’t gering allegations of ‘economic war’ from November 2008, as we reported at the take their cash back even though the south - south of the border.
In brief… l Delta Corporation, Zimbabwe, is installing to their members and to build community Kenyan presence substantially. The 200ml a new bottling line for returnable glass bot - facilities. The premium payout is for 20,000 bottle is sold primarily in local stores and tles at its Southerton depot. Company tonnes of UTZ Certified and Rainforest kiosks; it is not available in supermarkets. It is spokesman George Mutendadzamera said Alliance cocoa delivered between October likely it will used for other group brands the plant would “support the company’s vol - 2010 and May this year, about 10% of once the trial project has been evaluated. ume recovery as well as increasing produc - Cargill’s total bean sourcing in Côte d’Ivoire. tion in the country”. l Law suits for alleged contamination of l Coca-Cola has introduced a 200ml mini- soft drinks and other food lines continue in l In Côte d’Ivoire, Cargill’s cocoa and bottle in Kenya as a means of countering Africa and the Middle East. Among them is a chocolate business has made the second of price worries caused by inflation, especially case in Zimbabwe involving a 300ml bottle its annual sustainable cocoa premium pay - in the lower end of the market. The move is of Fanta which the complainant alleged to ments to 26,500 farmers across 21 cooper - also intended to give Coca-Cola a firmer have a mould which caused him stomach atives. Over half the payments, which this market foundation as competition in the problems and diarrhoea. This led, he claimed, year total more than US$2.2 million, go to CSD sector and other soft drinks increases. to substantial medical bills and a very large the farmers themselves while the remainder As reported earlier, PepsiCo is building a loss of revenue from business. The bottler, is used by cooperatives to provide assistance new Nairobi plant which will boost its Delta Beverages, denied being negligent.
12 InDUSTrY nEWS Soft Drinks Internationa l – October 2011 African companies Middle East keen on Jafza WHILE many soft drink producers did well from Africa’s Big 7 expo in Johannesburg this Dubai plant year, both in sales and distribution agree - ments, Dubai’s Jebel Ali Free Zone – Jafza – THE Middle East’s ZamZam Cola is to open enjoyed a different form of success. Its stand Ibrahim Mohamed Al Janahi. a production plant in the Dubai Investment at Africa’s Big 7, Africa’s largest food, retail Park next year. The project represents an and fmcg exhibition, fielded a pleasingly large international capital, its home-grown compa - investment of around US$10 million. number of enquiries from food and bever - nies are experiencing commercial vibrancy The company also intends to eventually age producers and distributors interested in and looking to expand their horizons in install lines for water and juices, recognising the possibility of establishing a Middle East other developing markets. Jafza’s visit to the UAE’s solid demand for quality bever - base in the free zone. Johannesburg highlighted opportunities and ages. Its Power Plus energy drink is already “Africa is among the world’s most rapidly prospects in South Africa.” produced in the UAE. growing economic regions and presents He said that Jafza was not only following ZamZam Cola hopes the new plant will enormous potential for increased trade and up prospects identified at Africa’s Big 7 but win it a sizable share of the competitive but investment,” said Ibrahim Mohamed Al would also work proactively to interest growing market. It will join production facili - Janahi, Deputy Chief Executive of Jafza. other companies throughout Africa in estab - ties in Jordan, Oman, Palestine and Iraq. “While Africa is gaining increased access to lishing a Middle East market base.
Stream’s capacity needs until the primary new factory for facility comes into full use sometime in 2013. SodaStream “The demand for our products is increas - ing and we continue to take steps to ensure A LARGE new primary production facility that we are ahead of capacity to meet that for SodaStream International is under con - demand,” said Chief Executive Daniel Birn - struction in Israel. Likely to cost about €30 baum. He said that manufacturing in Israel million, the plant is located in a new indus - had many benefits, including strong govern - trial park near the city of Beersheba, in the ment co-operation, engineering talent and Negev desert region of southern Israel. the free trade agreements with key markets. Another new SodaStream plant in Israel “SodaStream is a symbol of Israeli innova - went live in late June this year, four weeks tion and creativity,” said Vice-Prime Minister ahead of schedule. Sited in the Galilee town Silvan Shalom, who attended the ground- of Alon Tavor, it is producing a full range of breaking ceremony for the Beersheba plant. soda-makers and related products for mar - “The company’s choice to build here is a kets such as France, Sweden, Switzerland declaration of confidence in the develop - and the US. ment of the Negev region, which is rich in ZamZam advertising. Additional manufacturing equipment is high-quality human capital. We invite other also being added to another Galilee facility, companies to join SodaStream and take in Kiryat Shemona, to boost its output. advantage of the infrastructure and growth Al rabie juice These two plants will be bridging Soda- opportunity in the Negev.” boost develop markets for soft drinks. Her exten - IFFCo to expand sive background in the fmcg sector TO meet the solid increase in demand for includes a stint as chief executive of Simba, its juice range during the holy month of portfolio a PepsiCo company, as well as working for Ramadan, Al Rabie Saudi Foods this year Coca-Cola, Borden Foods, Dairybelle and increased its seasonal output by nearly a AN international group based in Dubai, SmithKline Beecham (now part of GSK). third. United Arab Emirates, has established an IFFCO South Africa is currently focused Juice and other soft drink sales soar in office in South Africa and is intending to on biscuits, chocolates and confectionery Saudi Arabia during and immediately after broaden its product portfolio, including soft but that will broaden soon to also cover Ramadan, with the long-established trend drinks. IFFCO Worldwide manufactures and pasta, ice cream, condiments, olive oil and showing signs of continued growth year by markets an integrated range of mass-mar - other products, as well as soft drinks. year. Consumption elsewhere in the Middle ket food products and related derivatives. “Consumers are exercising caution, so East and North Africa also grows substan - Lauren Siebrits, Chief Executive of trading in fmcg is becoming tougher and tially. IFFCO South Africa, is well placed to local dominant players need more compe - “Saudis consume more than 1300 mil - tition,” said Siebrits. IFFCO South Africa lion litres of juice per year and statistics also wanted to change the local perception reveal that the consumption of juices dur - throughout the Middle East, it was impor - that affordable products lacked quality, to ing the month of Ramadan increases by as tant to meet the needs of the market the view that consumers could obtain much as 30%,” said Al Sharif Monther Al throughout the GCC region and other value for money and quality simultaneously. Harthi, Chief Executive of Al Rabie Saudi Arab countries, as well as the kingdom, he “The company intends to build a strong Foods. said. reputation and gain market share, with the With Al Sabie increasing sales of its The KSA juice market overall is achiev - aim of becoming the next leading fmcg extensive juice and fruit drinks portfolio ing an annual growth of 8% to 10%. conglomerate,” she explained.
14 MIDDLE EAST Soft Drinks Internationa l – October 2011 oasis Water oCME strengthens certification regional presence
OMAN Oasis Balanced Drinking Water and WITH a solid line-up of existing clients in Oman Oasis Oxiplus Drinking Water, bot - the Middle East, especially Saudi Arabia, for tled by the Oasis Water Company of its beverage production equipment and Oman, have achieved NSF Bottled Water perceiving strong potential for market Certification from NSF International. Oasis growth, OCME is opening a Middle East Water is a division of the Zubair Corpora - branch. OCME Middle East, which will have tion, a diversified company founded in 1967. its headquarters in Jeddah, Saudi Arabia, will “Having the recognition that our products be the sixth branch in the OCME group. meet the highest standards certified by NSF A leader in end-of-line equipment such Other Saudi Arabian projects have International, known for its global expertise as shrink wrappers, wrap-around case pack - included a bottling line for the Mozn fac - in bottled water, gives us a competitive ers and palletising systems, OCME intro - tory of Al Janoub Water in the Jazan area, advantage with our customers,” said Gen - duced a range of level fillers for the extensive equipping for the Al Theyab- eral Manager Janardhan N. bottling industry in 2004 and has expanded owned Hana Water plant, and the major Certification of the production plant, in further in this area. It can thus offer itself as role in refitting Al-Qassim Health Water, the Muscat-Rusayl area, required a rigorous a turnkey partner for complete filling lines, belonging to the Al-Thinayyan Family, and audit to prove the facility met all require - notably for mineral water. one of the oldest bottled water plants in ments, including the GMP and HACCP stan - This strategy has been particularly suc - the kingdom. dards for food safety. NSF also tested cessful in the Saudi Arabian market. In OCME also enjoys a close relationship samples of the two water types against the 2006, Makkah Water Company commis - with Aujan Industries, bottlers of the Rani, FDA code of regulations for bottled water, sioned OCME to supply a new bottling line Barbican and Vimto brands. A variety of checking for more than 160 chemical, inor - and purchased two fillers for existing lines. OCME equipment is used at Aujan’s pro - ganic, radiological and micro-biological con - Annual improvements have seen OCME duction site in Damman, KSA, while juice taminants. and Makkah Water Company working canning lines are being installed at the Oman Oasis water products are now closely on an ongoing basis. group’s Dubai and Iran sites. entitled to carry the NSF Mark. Aquafina visit
A GROUP of 45 visually impaired children, accompanied by supervisors from the Ebsar Foundation, had a tremendous time visiting SIPCO’s bottling plant in Jeddah, Saudi Ara - bia, to watch the production of Aquafina bottled water. Visually impaired children visit the Aquafina “They had a thoroughly entertaining day plant in Jeddah. Oman Oasis water range. out and we were most impressed by their enthusiasm to learn about how Aquafina is enjoyed a meal hosted by PepsiCo and produced, labelled and bottled,” said Ahmed SIPCO, after which they were given com - El-Mehelmy, SIPCO’s Sales and Marketing memorative gifts. Manager. “They were absolutely fascinated by Ebsar helps people who are visually the seven stages of the exclusive Aquafina impaired overcome their disability and enjoy Hydro-7 purification system and were keen a better quality of life by teaching them skills To subscribe to ask a lot of intelligent questions about the that enable them to compete on an even process.” basis with sighted peers in both educational contact Following their plant tour, the youngsters and workplaces.
subscriptions@ softdrinksinternational.com In brief…
l Stocks of Diet Kinley Mandarin, a limited l Jordan’s Salbashian Trading Company has edition product, were withdrawn from Israeli been promoting Kean juices from Cyprus at retail sale in early August because of a tastings and festivals in Amman. Kean is one labelling error. Central Bottling Company – of several well known brand agencies Sal - also known as Coca-Cola Israel – stressed bashian Trading holds in the kingdom. To advertise that there was no health danger and that the problem was confined to an ingredient l Malaysian soft drinks producer Fraser & contact not being listed on the label. Explained the Neave Holdings is planning to enter Middle recall advice: “Labels on 1.5 litre bottles of East markets as it diversifies operations with advertising@ Diet Kinley Mandarin omitted the words the ending of its long-standing Coca-Cola softdrinksinternational.com ‘includes Phenylalanine’ (an amino acid), franchise. The group has already strengthened which should be included on the labels of its own-brand product offering, along with its diet beverages that contain the sweetener dairy and other activities, and has been eye - aspartame. It should be stressed that the ing several new market opportunities. Fur - products are completely safe.” ther brand development is a certainty.
16 INDUSTRY NEWS Soft Drinks Internationa l – October 2011 Tingyi and Asia Pacific SkyPeople upbeat CHINESE bottlers Tingyi – whose key brand is Master Kong – and SkyPeople Fruit Suntory expands Juice have both reported significant growth in soft drink sales. Tingyi’s turnover grew Asian operations 31.58% in the first half of calendar 2011, helped by the promotion of new products AS Suntory builds its Asian network and the ‘One More Bottle’ lucky draw cam - steadily beyond Japan, the group has estab - paign. However, the profit margin slipped lished both a regional headquarters in the because of the rising costs of raw materials, south-east Asian region and a joint venture transport and labour, along with in Indonesia. This follows a series of pur - unfavourable weather. chases, partnerships and investments in the Tea drinks prospered from a packaging region over the past three years. makeover while Master Kong’s ‘new taste Master Kong iced tea from the Tingyi stable. Suntory Beverage & Food Asia, headed for traditional drink’ category was extended by Hong Sik Park as Chief Executive, began by the release of Sour Plum Juice and Wild Qian Mei Duo beverages grew ‘significantly’ operations in September. It will bring Jujube Juice, both based on long-time Chi - in the second quarter of the calendar year. together all Suntory’s beverage and food nese favourites. Four fruit juices are offered under the Qian development in Asia, with an aim of max - More traditional Chinese beverages are Mei Duo brand and six fruit beverages imising group synergies. being developed. New juices launched in under the Hedetang brand, both in 280ml Among Suntory developments in Asia the previous quarter were also heavily pro - and 500ml glass bottles. The Hedetang this year has been the launch of several moted. In bottled waters, Master Kong has range also features fruit drinks in 500ml new products from Tipco F&B in Thailand, a boosted its environmental credentials with PET bottles. joint venture in which Suntory holds a 50% an energy-saving light green bottle. Other Apple juice and pear concentrate sales stake. Another joint venture has been beverage launches included U-Joymore, a increased despite weather effects but formed with Garudafood Group in Indone - lactic acid drink. kiwifruit sales showed a marked decrease sia. Suntory Beverage & Food owns 51% of X’ian-based SkyPeople Fruit Juice because of the abnormally strong harvests this and has also acquired a 34% stake in reported that sales of its Hedetang and last year. PT Sinar Niaga Sejahtera, the sales and dis - tribution arm of Garudafood’s beverage and food products. Garudafood is one of the largest pack - drinktec becomes aged beverage and food companies in Indonesia. Its portfolio includes beverage co-organiser brands such as Okky and Mountea which respectively hold the largest market share THE relationship between China Brew & This has led to the signing of an agree - for cup-packaged jelly and tea drinks. China Beverage (CBB) and drinktec has ment under which Messe München and its With Indonesia having a population of stepped up to a new level. The German Chinese subsidiary, MMI Shanghai, will in some 230 million and being one of the show, organised by Messe München, sup - future be the contact and contracting party fastest-growing consumer markets in the ported last year’s CBB under a marketing for all international, non-Chinese exhibitors world, as discretionary income and aspira - agreement. at CBB. That extends to looking after the tions develop, Suntory sees its JV with From that successful association, talks con - exhibitors and advising them prior to and Garudafood as having immense potential tinued about ways to develop the relation - during CBB. The agreement spans CBB for sustainable sales increases. ship to mutual advantage. events through to 2024, with the 2012 show first under the new scheme. “Our goal is to show a presence between to be equipped each drinktec, both nationally and interna - Crown in China with a second tionally in the relevant markets,” said Rein - line, producing hard Pfeiffer, Messe München’s Managing ALREADY very active in China, Crown 330ml and 250ml Director. “The agreement with CBB is an Holdings will have 10 beverage can plants slim cans. important cornerstone in this. It secures us operating in the country by late 2013 as it Salaerts said the required presence and influence in the expands to keep up with the huge increase the new facilities important Chinese beverages market. It in consumption. “The consumer market in indicated Crown’s means that in China, too, we are a contact China is growing at a rapid pace,” said Jozef commitment to partner for our top customers worldwide Salaerts, President of Crown Asia Pacific. supporting cus - and as a result can further strengthen the Plants are currently operational in Beijing, tomers’ growth in world-leading trade fair drinktec in Munich.” Foshan, Huizhou, Hangzhou and Shanghai. a critical market. Pfeiffer said he was confident drinktec and Two new facilities have been announced They were also “a CBB would complement each other well. for Zhengzhou (Central China) and testament to the As well as CBB, drinktec has another Changchun (Northeastern China), each increasing popu - Asian interest: MMI India, a subsidiary of with an initial annual capacity of around larity of beverage Messe München, organises the trade fair 720 million two-piece aluminium cans. The Jozef Salaerts, President, cans in the region drink technology India every two years. Zhengzhou unit will focus on 330ml cans Crown Asia-Pacific. and the value while the Changchun plant will produce they bring to both 330ml and 500ml. Another new consumers from both the convenience and Crown plant, in Putian (Fujian Province), is sustainability perspectives”. www.softdrinksinternational.com Soft Drinks Internationa l – October 2011 ASIA PACIFIC 17 100th Hope School ...and another US$4 billion investment!
IT was difficult to say which achievement Coca-Cola global boss Muhtar Kent was more proud of: completion of the 100th Coca-Cola Project Hope School in China or the decision to invest a further US$4 billion over three years from 2012. This investment builds further on the US$3 billion committed over the past three years by The Coca-Cola Company and its China bottling partners Swire Beverages and COFCO Coca-Cola Beverage Co. While much of the funds will go into fur - ther production plants, that is only part of the strategy, Kent explained. “Besides our infra - structure and capabilities, the new investment will also focus on enhancing the consumer experience, ensuring product affordability and building brand loyalty.” It has been a big year for Coca-Cola in Glenn Jordan (centre), President of Coca-Cola’s Pacific Group, at the opening of the 100th Project China and the impetus is likely to be main - Hope School, with Tu Meng, Secretary General of the Chinese Youth Development Foundation, Yu tained until year-end. During the first six Xuexin, Vice-Chairman of the Chongqing Committee of the Chinese People’s Political Consultative months, sales topped 1 billion cases. New Conference, and Rang Ying, a student representative from one of the first Project Hope Schools. plants have been built in Sanshui (Guandong Province) and Yingkou (Liaoning Province) build world-class schools in under-privileged Hope programme, we have made substantial while work is starting on a facility at Shiji - areas across China. gains towards building sustainable educational azhuang (Hebei Province). “Coca-Cola has always strived to partici - models in local communities.” And the 100th Coca-Cola Hope School, at pate in worthwhile public welfare projects The Dongjintuo Hope School was part of Dongjintuo in Chongqing (Sichuan Province), and to build sustainable infrastructure in com - the Sichuan earthquake reconstruction pro - has been commissioned. Project Hope is a munities where we operate,” said Glenn Jor - gramme to which Coca-Cola has donated partnership between Coca-Cola and the dan, President of Coca-Cola’s Pacific Group. some US$12 million. Construction of schools China Youth Development Foundation to “Through our ongoing support of the Project continues; 118 will be operational by year-end.
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the addition of over 50,000 new retailer fit from increased mining investment and Indonesia & PnG customers. high commodity prices. The continued The modern food store channel contin - focus on higher value immediate consump - growth for CCA ues to grow strongly for CCA, with vol - tion packs, strong revenue management, umes increasing by more than 15%. CCA’s increased promotional activity and COCA-Cola Amatil says that an Indonesian position strengthened by a 2.5% increase in improved execution in the market all con - highlight for its latest half year of reported share of the non-alcoholic ready-to-drink tributed to a strong result. One highlight trading, to 1st July 2011, was the more beverage category; its overall share now was the 20% growth of brand Coca-Cola. than 30% volume growth of Minute Maid stands at 39%. “Our up-weighted capital investment in Pulpy. Brand Coca-Cola, Sprite and Fanta in Over the six months of the reporting the region over the last three years is the one-way-pack (OWP) format also period, more than 20,000 new cold drink delivering CCA a more efficient and scala - posted strong performances, growing over cooler doors were placed around the ble manufacturing and distribution platform 20%. However, volumes for the lower value country, increasing the total to over to grow the business,” said Terry Davis, returnable glass bottle packs in the tradi - 200,000. A new multi-beverage production CCA’s Group Managing Director. tional channel declined as high food and line was installed in Jakarta. When fully “These initiatives have materially low - other inflation affected the discretionary commissioned during the second half of ered our cost of doing business in Indone - incomes of consumers in the lower income the year, this will result in a 24% increase sia and we will continue to invest in demographic. in PET bottle production capacity. capacity expansion ahead of the curve, OWP growth was supported by the CCA’s business in Papua New Guinea with further reductions in operating costs acceleration of cold drink cooler place - (PNG) also delivered a strong earnings to be delivered over the next 12-18 ments, improved in-market execution and result, as the economy continued to bene - months.”
strategy to give even more value through Vitafoods Asia a education and innovation for visitors and exhibitors to Vitafoods Asia 2012.” great success More than 125 exhibitors showcased their innovative products, including interna - The debut of Vitafoods Asia proved a hit tional brands such as BASF, Chr Hansen, with exhibitors and visitors alike when it DSM, Ingredia, Naturex, Danisco and launched in Hong Kong from the 7th to LycoRed plus regional companies Yigeda 9th September 2011. Bio-Technology, Shaanxi Jiahe Phytocham, With more than 2,150 attendees from Handan Chen’Guang Precious Oil and over 40 different countries including Aus - Huisong Pharmaceuticals. tralia, Malaysia, China, Japan, Thailand, Viet - A spokesperson from Chr Hansen, said: nam and Cambodia making their way “We are very satisfied with the event and through the doors over the course of the never expected to have had so many good three days, the nutraceuticals, functional visitors from South East Asia.” food and drink ingredients event really Popular visitor attractions included the exceeded targets. Seminar Theatre with a host of exhibitors Asia Pacific is the second biggest global presenting sessions on some of their latest market for functional foods behind only the research, nutraceutical and functional food USA, with market value expected to reach and drink innovations. Keynotes from US$48 million in 2012. Daniel Quek, President of HSIAS and Speaking of the show’s success, Event Asian nutraceutical, functional foods and Chairman of AAHSA on Regulatory Har - Director, Chris Lee commented: “We’re functional drinks ingredients is very strong. monisation in ASEAN and Katrina Dia - delighted the event was received so well – Plans are already well underway for next monon, Consumer Insight Analyst at it just goes to show the market for pan- year’s show and we’re now planning the Datamonitor on Functional food trends in Asia, were particularly well received. Other features that welcomed visitors included, the EAS FREE one-on-one advi - sory sessions, and the New Products Zone showcasing innovative new market launches from the last 12 months. Innova Market Insights also explained the latest trends and business opportunities for companies across Asia in VitaTrend. Professor Yang, of the Chinese Nutrition Society, commented: “I congratulate Vitafoods Asia for its milestone in creating a huge opportunity to facilitate the growth of the functional foods industry in Asia. Like all other nutritionists in the industry, we are confident that the show will become a sig - nificant platform for exchange of ideas and information, thereby delivering innovative products and enhanced health services for the masses.” Exciting new plans are already underway for all shows across the Vitafoods portfolio within the next twelve months. Soft Drinks Internationa l – October 2011 Multi-media sponsorship
PHOENIX, the organic soft drinks brand of the big Australasian bottler Charlie’s Group, is sponsoring seasons of Fly My Pretties IV in Australia and New Zealand. It has already gained substantial coverage for the brand, not only in mainstream media, but also on blogs and social media - spon - sorship of the logo is prominent in all adver - tising. Phoenix has also built a competition around the show, offering trips to Mel - bourne or Wellington. The prize package includes flights and accommodation, a back - stage tour, all the Fly My Pretties albums, a stock of Phoenix Organics soft drinks and ning visual backdrop and filmed and four Phoenix-designed cocktails at the show. recorded live. Since its inception, Fly My Fly My Pretties is promoted as a ‘live Pretties has grown to become a local legend multi-media event starring a selection of the of music that continues to reach people all finest contemporary musicians, set to a stun - over the world.’
King of Ground
FRENCH BMX rider Matthias Dandois is heading the points table for the 2011 BMX Flatland World Circuit as the series goes into its fourth and final stage – King of Ground – in Japan during October. Dandois, sponsored by Red Bull which is heavily committed to BMX riding globally, wants to take the world title this year after trying hard in 2010. He came third in this year’s first round, in Joplin, Missouri, followed by a first in round two, in France. At Ground Force in Singapore in August he took sec - ond place behind Moto Sasaki, but ended up with 2836 champion points as compared to Sasaki’s 2636. “I’m just a goofy kid having fun on a BMX,” he says. “I travel the world, chill a lot and am trying to have the time of my life every time I do something.” That’s the sort of thing Red Bull wants to Matthias Dandois in Little India, Singapore. hear! Photo: Mark Teo, Red Bull.
In brief… l The battle for major Thai soft drinks bot - Logistics, which invited the ThaiBev move, tler Serm Suk seems to be coming to an has said it does not plan to sell its 32.62 end. The long-running saga has been dra - holding. This means that Serm Suk is likely matic and complex, as we have reported, to have two core shareholders. PepsiCo says sometimes akin to a corporate soap opera. it is committed to Thailand and is working ThaiBev has now bought PepsiCo’s 41.55 on new production arrangements. We’ll per cent stake and is offering the same deal have full details on the Serm Suk develop - to other shareholders. But SS National ments in our November issue.
Join the SDI LinkedIn group Soft Drinks International 20 INDUSTRY NEWS Soft Drinks Internationa l – October 2011 new business Americas structure COCA-Cola FEMSA has restructured its operations in South America. As of the third Going freestyle quarter of 2011, the company's reporting segments will be Mexico and Central Amer - KNOWN for its generous toasted sub rolls, ica, and South America. Firehouse Subs has launched Coca-Cola Accordingly, Ernesto Silva Almaguer, who Freestyle fountains in all of its 437 restau - heads the Mexican division, is now responsi - rants. Diners will have the ability to create ble for the Central American territories in their own personal and customised drinks. Guatemala, Nicaragua, Costs Rica and The move follows a successful Freestyle test Panama. These franchise territories are being which began in Atlanta in 2009. Since then integrated into the Mexico and Central the chain has significant increases in drink American division. incidence, solidifying the decision to have John Santa Maria Otazua, formerly in Coca-Cola Freestyle in all existing and future charge of Strategic Planning and Commercial locations. Development, now heads up a new South “The first time we saw Coca-Cola American division. This new division com - Freestyle, we knew it would revolutionise prises operations in Colombia, Venezuela, the beverage industry and we welcomed a Brazil and Argentina. test with our partners at Coca-Cola,” said Rafael Suarez Olaguibel, formerly in Robin Sorensen, co-founder of Firehouse charge of the Latincentro division, is now Subs. “Customers rave about Coca-Cola head of Special Projects at corporate level. Freestyle. It offers an interactive experience “This new business structure will provide that when combined with our subs, is us with the necessary flexibility to manage unmatched, and has led to a substantial our business going forward and extend our increase in beverage sales. We're pumped to track record of growth. We are confident be the first national chain on the planet to that John and Ernesto will ensure the contin - bring the fountain of the future to all of our ued growth of our operations and that loyal customers.” Rafael will continue to contribute his experi - Firehouse Subs sells more soft drinks than ence to develop our company's capabilities,” the average fast casual chain in the sub/sand - said Carlos Salazar Lomelin, CEO. wich category. The new technology is a per - Sleek and stylish, the Frrestyle unit is touch- fect complement, providing 120+ sparkling screen operated and offers regular and low- and still beverage brands at Firehouse Subs calorie beverage brands. restaurants, from a single freestanding unit. orange crop “With this expansion of Coca-Cola Coca-Cola Refreshments. “Coca-Cola Freestyle availability, people will be able to Freestyle offers people something they've estimate down choose the perfect beverage to complement never experienced before and helps our their meal at any Firehouse Subs,” said Gene partners like Firehouse Subs grow both their THE Brazilian Association of Citrus Farrell, Vice-President, Coca-Cola Freestyle, beverage business and their total business.” Exporters – CitrusBR – reports that the orange crop for the 2011-2012 season in the citrus belt of the State of São Paulo and in the region known as 'Minas Triangle' is esti - Five stars Investment in mated at 387 million boxes of 40.8 kilos. This forecast was elaborated individually by each NSF International's Food Safety Division natural extracts of the associated companies and the results based in Ann Arbor, Michigan, has earned were consolidated by an independent audit the highest rating from the British Retail SENSIENT Flavors & Fragrances Group has firm. Consortium (BRC), developer of the BRC expanded its extraction capabilities with a This season starts with the international global food safety standards for food, pack - new CO2 extraction plant based in Indi - inventories of Brazilian orange juice reaching aging, storage and distribution. This 5-star anapolis, Indiana. Described as state-of-the- their lowest level in the recent history of the rating confirms NSF's reputation as a leading art, the plant comprises two commercial Brazilian processing industry. certifier to the global food safety standards, scale supercritical CO2 extractors as well as Data gathered by audit firms in each of the having certified more than 28,000 farms and several pilot units available for research and associated companies and later consolidated facilities. development purposes. by an independent audit firm indicated that NSF is committed to helping companies The investment will enhance the com - the global inventories of Brazilian orange juice throughout the global food supply chain pany’s ability to customise and deliver inno - on 31st March 2011 were at 424,702 strengthen their quality assurance pro - vative, high-performance natural extracts. It tonnes – converted into FCOJ 66 Brix equiv - grammes. In 2009, NSF International became was made in direct response to customer alent. Last year the figure was 574,604 tonnes, the first North American certification body needs, increased sourcing opportunities, and down on the 2009 figure of 805,184 tonnes. to earn ANSI accreditation for BRC stan - demand driven by the overall health and dards and has become the largest certifier wellness market trends. to BRC worldwide and SQF in the USA. “Today’s consumer market places an Systems. “We’ve responded to these trends increased emphasis on foods and beverages with an R&D focus on our proprietary with authentic tastes and recognisable, botanical extracts line, Sensient Natural Ori - wholesome ingredients,” said Jean-Philippe gins, which can now be manufactured in the www.softdrinksinternational.com Giorgis, Sales Director, Sensient US Flavor US as well as at our facility in the UK.”
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Join ABA today. 22 AMERICAS Soft Drinks Internationa l – October 2011 Capri-Sun targets South America
AFTER opening its first production site in Brazil this year, Capri-Sun is now looking to expand distribution throughout South America. Exhibiting at the recent SIAL food and beverage trade show in Argentina the company was looking for new distributors and licensees for the South American mar - ket. Capri-Sun presented 16 varieties from its home market of Germany as well as four Brazilian and many other international flavours. The stand demonstrated what the brand stands for: summer, sun and cheerful - ness combined with fruity fun beverages. Capris-Sun has identified South America as an important market. The company points out that there are 400 million peo - ple living in South America - and this figure is rising. Around 25% of the population is below the age of 15. Sunny weather means South Americans spend lots of time out - Capri-Sun's packaging is available worldwide in the classic 200 ml pouch with a straw and a 330 ml doors all year long, an ideal environment reclosable spouted pouch. for the leading children's drink. “Our trade show presence in Argentina is an important vately owned beverage makers in Brazil, Safari Fruits in addition to the classic step in positioning Capri-Sun on the South became the first licensee in South America Orange. Together with the local partner, American market,” said Carsten Kaisig, Man - in April this year. Four fruit flavours are Capri-Sun developed the flavours and aging Director of Capri-Sun and Wild-Indag. produced at the new Indag filling plant in adapted them to suit the preferences of Grupo Imperial, one of the largest pri - Goiás, Brazil: Grape, Mystic Dragon and Brazilian children.
Omaha, Nebraska, and is privately held by TCCC support Labelling buy Diamond Castle Holdings. York Label Group revenues for 2010 were approximately THE Coca-Cola Company is sponsoring MULTI-Color Corporation has agreed to US$240 million, including 100% of its joint Atlanta Ronald McDonald House Charities' buy the York Label Group for US$356mil - venture in Chile which is also being fully (ARMHC) third annual Hearts and Hands lion. The move will strengthen its leadership acquired as part of this transaction. York has Gala on Saturday, 29th October at the in the label markets in North America and 12 plants across the US, Canada and Chile Georgia Aquarium. Javier Goizueta, Vice- Chile and makes Multi-Color Corporation with approximately 1,200 employees. President of The Coca-Cola Company and the largest label company in the US and the Nigel Vinecombe, Multi-Color Corpora - President of the McDonald's Division fastest growing globally with revenues more tion President and Chief Executive Officer, Worldwide, will serve as Event Chair and than tripling since the beginning of 2008. will continue as President and CEO of the Muhtar Kent, Chairman and CEO of The The acquisition is expected to be accre - combined company. Coca-Cola Company, as Honorary Chair. tive in fiscal year ended March 2013. Closing CEO.,Founder of A Legendary Event, Tony wa expected on or about 3rd October, Conway is Honorary Patron Chair. 2011. www.softdrinksinternational.com Goizueta said the company was proud York Label Group is headquartered in and honoured to sponsor the event. “Each year the support from the community con - tinues to grow and we look forward to raising even more funds to help deserving In brief… families.” Proceeds from the Hearts and Hands l Berry Plastics Corporation, of Evansville, flavours manufacturing facility in Piscataway, Gala will support the operations of Indiana, has completed the previously dis - New Jersey. The roof-mounted solar panels Atlanta's two Ronald McDonald Houses closed acquisition of Rexam's specialty and will span 115,000 sq ft and will be opera - which provide temporary housing and sup - beverage closures business. Rexam SBC has tional by the end of 2011. port service to more than 2,000 families of eight manufacturing facilities globally, includ - critically ill and injured children. In 32 years, ing seven in the US and one in Brazil. In l The Corn Refiners Association has intro - the Atlanta Ronald McDonald House Char - addition, Rexam SBC has manufacturing duced a new interactive tool to make it easy ities have served more than 32,000 families. operations in Malaysia and Mexico through for beverage marketers to compare high “Without the Ronald McDonald House joint venture agreements, and a research and fructose corn syrup (HFCS) and beet sugar many sick kids and their families would development technical centre located in Per - prices. The cost calculator is available on have nowhere else to turn,” said Linda M. rysburg, Ohio. CornNaturally.com and works by allowing Morris, President and CEO of Atlanta users to select either HFCS 42 or HFCS 55, Ronald McDonald House Charities. “The l Robertet Flavors, a division of the global and then enter the dry weight volume in support from this event will allow us to Robertet Group, has selected GeoPeak pounds. They can view USDA price data, the provide a home away from home for fami - Energy LLC to design, install and service a cost savings from using HFCS and 10 years lies facing tremendous hardships.” high-efficiency solar energy system at its of historical price trends. THE GLOBAL BUSINESS PLATFORM FOR FOOD & BEVERAGE INGREDIENTS
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11:08 24 DEVELOPMENTS Soft Drinks Internationa l – October 2011 Ingredients Global exotica
WILD has developed four exotic fruit con - cepts in response to consumers seeking out more unusual tastes. The fruits are sourced worldwide. The four different varieties come under the tag of 'discovering fruits of the world'. The African mix, for example, includes the exotic marula and pink guava from South Africa. Wild¹s Asian mix features Alphonso mangos from India, with lychees, tamarinds and coconut water rounding off the flavour All four concepts contain 100% fruit. profile and giving the product a typical Asian touch. The portfolio also includes a Cuba and pineapple from Costa Rica, and Ecuador and Brazil, including passion fruit Caribbean medley of red grapefruit from also a tropical variety with fruits from and acerola.
via plants. It contains higher ‘Toothfriendly’ in Chinese stevia total steviol glycoside con - tent, especially Reb A con - favour accreditation tent, within its leaves. This results in improved manufacturing processes EFSA's fifth batch of scientific opinions on GLOBAL producer of high purity stevia due to greater dry leaf yield and refining effi - generic health claims has revealed a products, PureCircle, reports its new propri - ciencies. favourable response to the Toothfriendly etary stevia variety, PureCircle Star 1, has This year PureCircle has been working logo and claim. The news has pleased the been awarded a certificate of accreditation directly with local farmers in more than five Roquette Group, a world leader in polyols, by the Jiangxi Agricultural Crop Audit Com - counties around the Ganxian, Jiangxi region since the company has supported the activi - mittee in China. This certificate gives Pure - of China as well as the Fujia province to ties and scientific work of the non-profit Circle full intellectual property rights to the provide seedlings and plant the new propri - Swiss Toothfriendly International association new stevia variety. etary stevia variety. To date, PureCircle Star 1 since it was founded in 1989. PureCircle Star 1 is a higher quality stevia has been planted in 46 hectares of land with Dr Albert Bär, Director Toothfriendly Inter - plant due to successful traditional cross- plans to achieve large scale plantations for national, stated: “Whilst European consumers breeding techniques of carefully selected ste - the next planting season. are increasingly aware of the health implica - tions of their eating habits, this is not yet the case in many less developed countries. It is therefore impor - Second year for tant that use of the logo and the cranberry auction claim of 'Tooth - friendly' can con - OCEAN Spray has published the results of tinue in Europe – its latest cranberry concentrate trading because Euro - event, which took place on 27th July. A pean food labels total of 148,750 gallons of cranberry con - become increas - centrate were sold. Ocean Spray has now ingly a model for staged eightauctions as the online platform other countries celebrates its second anniversary. where the pro - Bidders opted for three or six month tection of con - contract periods, with delivery from 1st sumers against August through to October 2011 for the misleading advertising only starts to become first contract, 1st November 2011 through a matter of concern. Roquette's long term to April 2012 in the second and 1st May thinking, its world-wide presence and its through to October 2012 for the third understanding of cultural differences are an contract. The winning bids per gallon of enormous help to us in making the 'Tooth - concentrate were US$21.00, $21.84 and friendy' logo available as a symbol for den - $24.14 respectively for contracts 1, 2 and 3. based on market fluctuations for that tally safe confectionery in countries where A total of 17 companies participated in the period – thus gaining price stability and dental caries still predominate.” July event. supply certainty. The Roquette Group helped found the Ocean Spray’s online cranberry concen - The next trading event takes place this association more than 20 years ago and has trate trading platform was established in month. Opening prices per gallon for the continually supported its aims. Its polyols, July 2009. By participating, winning bidders October event, set at 85% of the July such as its maltitol sweetPearl satisfy the secure fixed-priced contracts for each con - event, are: $17.85 for contract 1; $18.56 for organisation's scientific approval criteria. tract period and avoid any change in pricing contract 2; and US$20.52 for contract 3. Soft Drinks Internationa l – October 2011 INGREDIENTS 25
ance, plus FDA's recent acknowledgement The natural choice GrAS approved of Aker BM's New Dietary Ingredient Noti - fication (NDIN), provides regulatory sup - CaroCare®2 Nat. -Carotene 10% CWS AKER BioMarine Antarctic has announced port for existing and prospective customers Star from DSM Nutritional Products is a that that the US FDA has accepted with no of Superba Krill oil for inclusion in new state-of-the-art, high performance, natural- objections the notification of its independ - products and in new markets. source ß -Carotene formulation for the ent GRAS determination for Superba Krill “We are very pleased to offer our cus - colouration and fortification of beverages. oil for use as a food ingredient. This accept - tomers the support of these two impor - Combining colour, ProVitamin A activity tant safety and regulatory compliant and antioxidant properties, this versatile and distinctions. Helping our customers confi - effective ingredient is ideal for beverage consumer acceptance, it is free from ingre - dently launch new Superba Krill oil-based manufacturers looking to respond to the dients of animal origin and fully meets vege - supplements and food and beverage prod - growing consumer trend for natural-source tarian requirements. It does not contain any ucts is essential to our business develop - ingredients. of the allergenic ingredients listed in Annex ment,” said Matts Johansen EVP Sales and Part of DSM Nutritional Products’ Caro - iiia of the EU Directive 2003/89/EC and the Marketing. Care range, CaroCare Nat. ß -Carotene 10% US Food Allergen Labeling and Consumer Dr Nils Hoem, Chief Scientist at Aker CWS Star is particularly suited for use in Protection Act of 2nd August 2004 (FAL - BM, added, “We have clinical studies under - ready-to-drink beverages. It offers a number CPA). way and in development with our cus - of formulation advantages including ease of Like all DSM’s carotenoid ingredients, tomers internationally. Seeking to use, guaranteed colour intensity, superior CaroCare Nat. ß -Carotene 10% CWS Star substantiate the health benefits of krill oil stability for enhanced appearance and can be incorporated into custom-designed for joint health, mental acuity, heart health greater consumer appeal, plus the health Quali®3-Blends premix formulations. This issues and other emerging areas of study benefits of ß -Carotene. fully integrated approach helps customers will help our customers deliver krill prod - The easy-to-handle, free-flowing and non- achieve the right balance and combination ucts with validated health benefits, expand - dusting beadlet disperses immediately and of nutrients in their soft drink beverage ing the scope of the omega-3 market smoothly in cold water. Developed for full products. today.”
Tom Treinen, President of Lorton’s, com - to supplying healthy natural and organic Citrus buy mented: “I am pleased to enter into this products to the marketplace. I would like to transaction with SunOpta and to remain with thank our loyal customers and the dedicated FROM Toronto SunOpta Inc reports its sub - the business operations, leveraging our joint employees of Lorton's for their commitment sidiary Global Organic Ingredients has com - capabilities. I look forward to growing the and hard work as we now join the SunOpta pleted the acquisition of the assets and business together based on our commitment family.” business of Lorton's Fresh Squeezed Juices Inc. Located in San Bernadino, California, Lor - ton’s is a vertically integrated producer of a In brief… variety of citrus-based products in both industrial and packaged formats, with rev - l Producer of specialty phosphate products ing customers in the third quarter of 2011. enues of approximately US$10 million. The for food and beverage applications, Additionally, Innophos Taicang is moving acquisition expands SunOpta's operations Innophos, has announced the formation of a ahead with construction plans for a modern into the extracting, processing and packaging new Chinese subsidiary, Innophos (Taicang) food grade speciality phosphate facility in of citrus-based ingredients through consumer Food Ingredients Manufacturing Co Ltd. The Taicang City, located approximately 40 km packaged products. These facilities have subsidiary has obtained the necessary busi - from Shanghai. The new facility is expected capacity for further growth and expansion. ness license and is expected to begin servic - to be operational by the first half of 2012.
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