SAAFFI Newsletter No.145 7th May. 2015 Editorial
In this newsletter we wish to draw our readers’ attention to the Careers Page on the SAAFFI website (http://www.saaffi.co.za/careers.php) . This page offers an opportunity to both job seekers and companies with vacancies to upload their details onto the SAAFFI website. This is a free service and it has proved to be most useful, with exactly the right target audience viewing the posting.
So please send us your CV’s and your vacancies……
Another request for our Members is to send through any news items of interest to the F&F industry for inclusion in our newsletter. We would also value comments and feedback regarding the new format of the newsletter. Titles of the articles are hyperlinked into the online publication where the story first appeared. So simply click on the title to follow the link to the original story.
Have a great May and get reading…!!!
1. SAAFFI News
Welcome to three new members of SAAFFI IMCD IMCD markets and distributes functional food ingredients to the food industry, with technical backup locally and overseas.
Glanbia Glanbia is a leader in ingredient solutions, providing customized premixes, amino acids, vitamins, minerals, specialty ingredients and colors for the infant food, food, beverage, sports nutrition and supplement industries. Built on our reputation for outstanding quality and service, we deliver formulation and ingredient expertise that helps our customers strategically optimize their products and propel them to greater success. With production facilities strategically located in North America, Europe and Asia as well as a sales team spanning 19 countries, expert local support is available worldwide.
O6 O6 Agencies, esestablished in 2002, services the Eastern & Southern African markets for LUZI AG, a global manufacturer and supplier of World Class Fragrance compounds for use in Home Care, Personal Care, Air Care and Fine Fragrance applications.
Sadly we bid farewell to three members who have not renewed their membership for 2015. They are Kerry Ingredients South Africa (Pty) Ltd t/a Kerry Ingredients & Flavours, Q&A Sales & Marketing CC and Sunspray Food Ingredients (Pty) Ltd.
Wits University Career Day For the second year running, Wits University Chemical Society invited SAAFFI to participate in their Chemistry Career day, which was held at Wits on the 17th April. The purpose of the day, which is held annually, is to inspire their chemistry students by exposing them to interesting industry sectors, of which the Flavour & Fragrance Industry is certainly one. SAAFFI is committed to ongoing engagement with appropriate tertiary education students; the forum is ideal to showcase our industry to those studying for qualifications which are relevant.
A table manned (or womanned!!) by members of the industry was set up with information and a range of fascinating samples. Our sincere thanks go to Cellchem, Crest Chemicals, Mane, O6 Agencies, Sharon Bolel Chemical Marketing and Symrise for their help!
The students, apart from being intrigued by our industry, enjoyed the tasty snack and beverage samples and were appreciative for the promotional gifts on the stand.
A productive, fun day was enjoyed by all who participated.
2. Flavour & Fragrance Company News
IFF Completes Acquisition of Ottens Flavors International Flavors & Fragrances Inc. announced that it has successfully completed the previously announced acquisition of Henry H. Ottens Manufacturing Co.
2010 - 2014 Flavor & Fragrance Industry Leaders 2010 - 2014 Estimated Sales in Millions (Estimate as of March 17, 2015)
Com Est. Est. Est.20 Est. 20 .. 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 Est. 2014 .. pany 2010 2011 12 13
Coun Mark Countr Countr Countr Ra try =US et y Market y Market y Market Country Market .. =US $ =US $ =US $ =US $ Source nk Curr $ Shar Curren Share1 Curren Share1 Curren Share1 Currency Share1 ency e1 cy cy cy 4,23 Giva $407 18.5 3,915 $4433. 4,257 $4541. 4,369 $4715. 4404
1 9 20.3% 19.8% 19.7% $4818.5 19.4% Givaudan udan 4.6 % CHF 4 CHF 8 CHF 9 CHF CHF 2,78 2,636. ~3084.8 (3) Firm $267 12.2 $2,985 2,890 $3083. 2,952 $3186. ~$3375.
2 1.6 00 13.7% 13.5% 13.3% CHF 13.6% Firmenich enich 3.7 % .0 CHF 3 CHF 4 2 (est) CHF CHF (est) $262 $262 11.9 $2,788 $2,788 $2821. $2821. $2952. $2952.
3 IFF 12.8% 12.3% 12.4% $3088.5 $3088.5 12.4% IFF 2.9 2.9 % .0 .0 4 4 9 9 Symr 1571 $208 9.5 1583.6 $2205. 1734.9 $2230. 1830.4 $2431.
4 10.1% 9.7% 10.2% 2120.1 € $2818.0 11.3% Symrise ise .9 € 6.5 % € 5 € 6 € 6 ~ (4) Taka ¥114 $131 6.0 ¥113,6 $1425. ¥118,9 $1491. ¥131,0 $1345. ~$1241.
5 6.5% 6.5% 5.6% ¥131,05 5.0% Takasago sago ,861 0.9 % 76 4 73 1 36 0 5 (est) 5 (est) Wild $1077. 895 € $1189. ~934 € ~$1241. Wild 6 Flavo NA NA NA 650 € $905.3 4.2% 838 € 4.7% 5.0% 5.0%
4 (est) 0 (est) (est) 3 (est) Flavors rs Man 480. $637 2.9 530.1 638.4 723.2
7 $738.3 3.4% $820.8 3.6% $960.7 4.0% 769 € $1022.1 4.1% Mane SA e SA 1 € .3 % € € € Fruta $451 $451 2.1
8 $518.4 $518.4 2.4% $618 $618 2.7% $673.7 $673.7 2.8% $819.5 $819.5 3.3% Frutarom rom .1 .1 % Sensi ~$5 ~$5 Sensient 9(6, ent ~2.6 ~$619 ~$619 ~2.8 ~$621 $715.2 $736.1 $736.1 $724.7* 82.6 82.6 3.1% 3.1% $724.7** 2.9% Technologi 7) Flavo % .7** .7** % .5** ** ** ** *
** ** es rs Robe 362. $480 2.2 373.28 395.6
10 rtet $483.7 2.2% $508.6 2.2% 389.5€ $517.4 2.2% 390.1€ $518.4 2.1% Robertet 25 € .8 % € € SA T. 11( Hase ¥45, $515 2.3 ¥44,24 ¥44,38 ¥45,10 T.Hasegaw 5) $545.8 2.5% $556.3 2.4% $462.9 1.9% ¥44,917 $425.5 1.7%
gaw 167 .5 % 6 6 4 a a 2,76 Huab 3,058. 3,162. 3,167. ~3,310 12( 5.4 $355 1.6 ~$426.8 Huabao 4) ao 2 $392.9 1.8% 8 $407.7 1.8% 6 $408.4 1.7% HKD* 1.7%
HKD .7 % (est) Intl. Intl. HKD* HKD* HKD* (est) * Top $15 12 71.8 $180 83.0 $188 82.4 $195 81.9 $20520...... 791. 82.4% .. Tota % 86.5 % 72.2 % 80.0 % 0 9 ls All $62 28.2 $371 17.0 $402 17.6 $432 18.1 Oth ... $4370.0 17.6% .. 08.1 % 3.5 % 7.8 % 7.6 % ers Tota l $22, $21,8 $22,9 $23,9 ...... $24,890 .. Mar 000 00 00 07.6 ket
NOTICE: Historically all foreign currency calculations for the table were based on December 31 rates for the year indicated. For some years this distorts the actual performance in US dollars as we have seen significant currency swings within a given year. This was particularly prevalent in 2014, where a EUR/USD swing of nearly 13% and a CHF/USD swing of ~12% occurred between July 1 and December 31 2014. Accordingly, after discussions with various industry financial experts, we are now using the "yearly average" exchange rates (which more closely approximates that normally used in the companies). All years in this table (2010-2014) have now been restated using the FOREX yearly average rates as shown in the table below. Prior tables available have not been restated.
FOREX Yearly Average Rates Currency 2010 2011 2012 2013 2014 EUR/USD 1.327386 1.392705 1.285697 1.328464 1.329165 CHF/USD 0.961215 1.13241 1.066891 1.079397 1.094111 JPY/USD 0.011413 0.012539 0.012533 0.010264 0.009473 HKD/USD 0.128721 0.128463 0.128915 0.128921 0.128955
Overall we estimate that the total market grew about 4.1%+ in US $ from 2013.
3. Flavour, Fragrance & Colour News
All this and heaven too! Beer flavoured chocolate on its way Latest innovations in the global chocolate market include beer and yogurt flavoured products and non- traditional flavours and textures, according to a new report by Mintel.
A flavourist’s worst nightmare! Full bodied wines may lack taste of low-alcohol counterparts Low alcohol wines may offer better taste sensations than wines with a high content, according to a study which used brain scans to scientifically measure perceptions.
Wanting isn’t liking! Glutamates increase intake but not appreciation of new flavours Glutamates can be used to increase intake of food containing novel flavours - although it does not necessarily mean people will like those flavours, researchers have unexpectedly found.
The taste of 170-year-old Champagne? Spicy, smoky – with fruity and floral notes Champagne salvaged from a Finnish shipwreck can offer winemakers new insights into wine conservation, according to researchers.
4. Cosmetic & Toiletry News
More, More, More! 2014 a prolific launch year for fine fragrance. There’s no want for “new” when it comes to the fine fragrance category. There were more than 1,600 new scents rolled out in 2014—the most ever tracked in the 31st annual “Fragrances of the World”.
Castile Soap - New at J.R. Watkins 147-year-old J.R. Watkins—a well-known crafter of gourmet spices and extracts, personal care and home care products—is taking #TBT very seriously by bringing its new product line of Pure Castile Soaps to market.
Basenotes Reader Awards 2015 : Finalists Announced The finalists for the Basenotes Reader Awards 2015 have been announced. Did your best fragrance of last year make the list?
5. Food & Beverage News
5 strategies to maximize snack sales Sales of snacks are poised for significant growth in the U.S. in the next five years, but for the category to reach its full potential, manufacturers need to go beyond new product launches to fully exploit all opportunities for growth, according to a sales and marketing analyst.
Named and shamed on Twitter!! A Spanish consumer rights group has launched a naming and shaming Twitter campaign after it found one third of consumers surveyed has bought the wrong product due to confusing food labels.
Diet Pepsi reformulation: Does making aspartame the bad guy solve diet soda’s problems? While cynics might paraphrase PepsiCo’s move to axe aspartame from Diet Pepsi as ‘Pepsi replaces one very unpopular artificial sweetener with another slightly less unpopular artificial sweetener’, it highlights the challenge facing big soda marketers, say branding experts.
Can chocolate get any better? All-natural heat resistant chocolate patent Nestlé has filed a patent for heat-resistant chocolate made by adding fibre from sources such as wheat or citrus fruits.
Food science gets transatlantic partnership boost Sharing the latest information on food science and technology is the aim of a new transatlantic partnership forged between the Institute of Food Science & Technology (IFST) and the US Institute of Food Technologists (IFT).
Who drives the world’s rise in packaged water consumption? Emerging countries are driving a trend that will soon see packaged water overtake fizzy drinks.
Top 10 global packaged water country ranking in terms of volume, 2015F v 2020F (% share)
Clash over artificial sweeteners' role in childhood obesity A new research report has said that artificial sweeteners may not help reduce obesity in children – a claim that the industry has dismissed.
Eastern promise: The untapped health potential of Japanese cuisine The Japanese diet can rival the Mediterranean diet for both health benefits and consumer pulling-power – with the added bonus of 'undiscovered' ingredients waiting to be developed by Western food manufacturers.
Industry won't 'swallow' this book! Food and drink manufacturers have been unfairly attacked by a recently published book that tried to shame the sector for allegedly misleading consumers about clean labels, one industry expert has said.
'Serious' health claim ignorance must be addressed! With 93% of consumers saying they don’t trust product health claims, naturally functional foods have instant appeal – but if companies highlight the science and regulation behind claims all stand to benefit, say analysts.
6. Ingredients
Boosting Vietnam’s cocoa industry Vietnamese state-owned companies plan to convert some coffee and rubber plantations to cocoa, delivering a significant boost to the country’s annual output
Does sugar reduces stress more than aspartame? Sugar-sweetened drinks may reduce stress levels and therefore be harder to reduce than aspartame say scientists - but campaigners are still calling on industry to reduce both.
Tate & Lyle faces £125M in costs for restructure Tate & Lyle has announced a restructure of its international ingredients business, which focuses it on its Speciality Food Ingredients (SFI) division in Europe and will cost £125M.
7. Trends
Coconut oils and spreads Coconut oil could be on trend in Europe as saturated fats are no longer regarded to be as harmful for heart health as they were, a Mintel report has said.
Is coconut vinegar the next big coconut ingredient? The health halo associated with coconut ingredients could mean coconut vinegar is the next ‘it’ product in Europe -- though its nutritional benefits are to yet be verified.
Not just for hippies: Hemp's rising superfood status Bursting with nutrients and boasting an impressive growth rate, the future of hemp seed is bright– but what’s the best way for manufacturers to cash in on a product that is connected – mistakenly but understandably – with an illegal drug?
Functional Foods 2.0: And now what…?. Products such as probiotic pizza, probiotic snack bars, high-fibre chicken or fish-oil fortified yoghurt may seem bizarre, says market expert Julian Mellentin in this guest article, but since 1990 thousands of products like this have been launched – and almost all have disappeared.
8. Environment, Health & Safety
Sharing data for better food safety The huge amount of data collected by companies and regulatory authorities like the Food Standards Agency (FSA) should be shared so that it can be ‘mined’ for information about emerging food safety problems.
China’s new food law - more teeth and tougher penalties The standing committee of China’s National People’s Congress, the country’s top legislature, has voted to adopt an amendment to the food safety law that proscribes the heaviest penalties yet to offenders.
EFSA reviews chemicals in food and drink EFSA has published an overview of its most recent data on chemical contamination of food and drink aimed at the general public.
FDA’s list of food priorities - rules for GRAS & gluten-free labelling FDA is considering adding pre- and post-market enforcement “enhancements” to the final rule for the process of determining food substances are GRAS – or generally recognized as safe, according to a top agency official.
Ethical foods make consumers feel morally superior - and food taste better The feeling of moral satisfaction that consumers get from eating ethical food change their taste experience for the better - and means they are willing to pay more, according to a European survey.
Safety app targets worker engagement Safety software has traditionally been developed for the employer and it can be a battle to get worker engagement, according to the creator of an app.
What is threatening growth of the organic industry? The organic industry must overcome substantial hurdles to sustain its double digit sales growth, including the threat posed by genetically modified organisms, limited technological advancements and a dwindling farming population, said organic farmer and senator.
Organic, renewable…and disruptive: Welcome to the third industrial revolution We are entering a new economic paradigm based on clean energy and organic agriculture, says American economist and social theorist Jeremy Rifkin.
Nearly 70% of CEOs worldwide value sustainability Nearly seven in ten CEOs worldwide see the value of sustainability but only two out of ten (21%) companies are leveraging the full potential of sustainability practices, says a report.
9. General News
Yuck or Yummm!! Edible insect potential If edible insects such as crickets are to deliver on their promise of providing a more environmentally- friendly source of protein, they may need to be put on a different diet, suggests a new study.
Crime and Punishment? Europe’s horsemeat arrests A European investigation into the illegal horsemeat trade resulted in 26 arrests.
Top of young people’s agenda? Food or celebrity? Food is more important than celebrities and fashion for younger consumers, but the sector has yet to take advantage of its growing audience, new research has claimed.
Are you buying rotten olive oil? Claims that much of the extra virgin olive oil (EVOO) sold in US supermarket is not ‘extra virgin’ at all are hardly new. But the fact that many retail buyers are effectively turning a blind eye to such widespread fraud is immensely frustrating for companies that are playing by the rules, says one industry expert.
More than Rice wine! Chinese wine and spirit market China’s thirst for wine and spirits is accompanied by a passion to learn more about products, according to the Wine & Spirit Education Trust (WSET).
A food scandal!! And now what? Accountability is key to rebuilding consumer confidence in the industry following a food scandal - a company’s response to accusations of contamination is almost as important as its actual role in causing it, according to a new study.
What would Goldilocks say? Patent on expandable microwave oatmeal pot Quaker has developed a pot that can be expanded ahead of microwaving, improving convenience for consumers and saving shipping costs for manufacturers.
The real thing! Coca-Cola in 2015 The Coca-Cola Company has declared 2015 as a ‘transition’ year, with an ongoing $3bn cost-cutting drive and challenges such as macroeconomic volatility and political unrest to tackle. With the soft drinks giant releasing its results for the first quarter of the year this week, we look at CEO and chairman Muhtar Kent’s take on its global markets.
10. International Retail News
Holland & Barrett to open 50 ‘free-from’ stores Holland & Barrett aims to launch 50 ‘free-from’ food stores over the next two years.
And you thought you had problems! Sir Ken loses £167M as Morrisons’ shares plummet Sir Ken Morrison, former boss of Morrisons, has lost £167M in the past year as the value of the shares he holds in the business has dropped.
Tesco reports historic €8.9bn loss but may be able to move on. UK retail giant Tesco has reported a staggering annual loss of £6.4 billion (€8.9bn), the worst in its 96-year history.
11. Good News
Grain of truth: Kangaroo Island's pristine produce Through innovative marketing, a South Australian grain company has used its remote location as a powerful brand statement, not the disadvantage it used to be.
Small Waste Collector, Now Successful Business Owner Small efforts to recycle boxes and paper in 1997 has transformed Bisant Matsi’s life. He has gone from waste collector to a prominent and successful recycling business owner in Burgersfort, Mpumalanga, inspiring his local community by showing them the value that exists in waste.