Future Market Insights: Bakery Ingredients Market Outlook to 2025

October 15th, 2016

Future Market Insights announces main findings of its recent report, “Bakery Ingredients Market Regulations and Competitive Landscape Outlook to 2025”.

Market Dynamics

Growth in global bakery ingredients market is due to increase in demand for bakery ingredients, and changing lifestyles, which leaves little time to prepare meals, saves time and affordability. Also with increasing population of working women and time constraint has initiated the need. Ready-to-eat baked food is replacing the conventional home cooked food. In Europe and North America, the majority of the population prefers wraps, rolls and pocket sandwiches over time consuming food items because of their busy and hectic lifestyle, according to the report. The development of new packaging materials and increased product diversification in the baked food category will further promote the demand of bakery ingredients.

The ongoing revolution in the food processed industry has led numerous possibilities for innovative product development in the bakery ingredients market. These days, dietary fiber has been added in many food products (bakery products, soups, jams) to stabilize high fat food and emulsion and to improve shelf life. It imparts water holding capacity, gel formation and oil holding capacity to food products. Antioxidants are used in very small quantity to maintain the fresh look, aroma, flavor and taste of the baked goods.

Market Segmentation

Bakery ingredients market can be broadly segmented into two major groups: on the basis of type and on the basis of application . On the basis of type, bakery ingredients market includes enzymes, emulsifiers, colors and flavors, leavening agents, preservatives, fats and shortenings and others. On the basis of application, includes bread, cookies and biscuits, rolls and pies, cakes and pastries and other baked products. Presently consumers are looking for baked products which are healthy, good in taste, use of quality ingredients and at convenience.

The bakery ingredients market has grown substantially at a healthy CAGR rate of 14-18% in the interval 2012-14. Many companies are entering in this market to meet the consumer demand of the bakery ingredients. Globally, US and Europe are the largest bakery ingredients markets followed by North America bakery ingredients market and Asia Pacific bakery ingredients market. The biggest driver for bakery ingredients market could be that these countries are the best destination for innovations in the bakery ingredients industry.

Strict legislation of the use of good quality bakery ingredients in baked food products and evolving consumer lifestyles and eating habits are the reason why these markets are flourishing. In Asia Pacific region bakery ingredients market especially countries like China and India is showing the most promising growth with respect to all the other regions. Rising disposable income coupled with growing awareness about healthy baked products are also major drivers for bakery ingredients market.

Key Market Players

Major industry players in the bakery ingredients market are Allied Bakeries, Associated British Food (ABF), Associated British Food (ABF), Bakels, Cargill Inc., Kerry Group, Royal DSM and Taura.

Source: worldbakers.com


Bakery, Ingredients

Kellogg Co. Gains Access to Latin America with Large Acquisition

October 15th, 2016

In attempts at expansion, The Kellogg Co.  might just have won access to Latin America. Kellogg has agreed to acquire Ritmos Investimentos for $429 million cash.

Ritmo Investimentos is a controlling shareholder of Parati S/A, Afical Ltda and Pádua Ltda (Parati Group), a Brazilian food group.

The Kellogg Co, maker of famous long-standing cereals such as Frosted Flakes and Raisin Bran, said that it will have to cut back on share repurchases in 2016 to $450 million-$550 million from $700 million-750 million to maintain financial flexibility after this major purchase.

The Parati Group operates five distribution centers and two production facilities, employing 3,200 people. The company’s salesforce includes approximately 1,300 people serving about 60,000 customers directly, according to Reuters.

The Parati Group net sales are expected to be approximately $190 million. Kellogg said it expects the acquisition to be accretive on both comparable and reported earnings per share in 2018 and after.

The Kellogg Co. and Latin America

The large sum deal is Kellogg’s fourth attempt at accessing emerging markets in the last two years and its biggest in Latin America.

“The combination of Parati’s portfolio and sales and distribution capabilities with Kellogg’s global resources — including innovation expertise, extensive shopper insights and customer marketing strength — provides tremendous opportunity,” said Maria Fernanda Mejia, president of Kellogg Latin America. “Bringing our companies together enables us to expand our footprint in a rapidly growing market.”

Parati Group, the maker of Parati, Pádua, Minueto, Zoo Cartoon and Hot Cracker biscuits, has five distribution centers and two production facilities in Brazil, Kellogg said.

“Parati Group is an excellent strategic fit for Kellogg and our business in Latin America,” Kellogg Chief Executive John Bryant said in a statement.

The deal is expected to be neutral to adjusted earnings per share in the first two years after close and add to earnings in 2018, Kellogg said.

Source: Abasto



Barry Callebaut opens first chocolate factory in Indonesia

October 15th, 2016

The 43,000-sq.-ft. factory will be on the same campus as GarudaFood Group’s biscuit production facility.

Swiss chocolate producer Barry Callebaut has expanded its operations in Indonesia with the grand opening of its first chocolate factory in the country.
Through a long-term outsourcing agreement with GarudaFood Group, one of the largest food and beverage companies in Indonesia, Barry Callebaut built its three-story, 43,000-sq.-ft. factory on the premises of GarudaFood’s biscuit plant in Gresik. Barry Callebaut will also supply GarudaFood with 10,000 tons of chocolate per year.
Antoine de Saint-Affrique, Barry Callebaut’s ceo, said the new chocolate factory, which will initially employ 50 people, is a “cornerstone” in its strategy to strengthen its position in Asian Pacific markets.
“It also enables us to grow our already significant presence in Indonesia — an important emerging market with about 260 million people that offers above-average growth opportunities,” he says. “We are truly excited that our strong relationship with GarudaFood and this new factory will provide GarudaFood with the means to differentiate themselves in an increasingly competitive market.”
GarudaFood CEO Hardianto Atmadja said the partnership will give GarudaFood the opportunity to put emphasis on biscuit production, including its Gery brand.
“The chocolate production lines at the Barry Callebaut factory allow us to focus our manufacturing facilities in Indonesia on biscuits and strengthen the factory as a key competence center for our biscuits products in Indonesia,” he says. “This move will help us to further develop our successful biscuit brands.”
Barry Callebaut also operates chocolate factory grinding facilities in Bandung and Makassar, Indonesia, employing more than 500 people. The company also has chocolate factories in China, India, Japan, Singapore and Malaysia.

Chocolate, Companies ,

Unilever to open new global foods innovation center in Netherlands in 2019

October 15th, 2016

Unilever has announced that it will invest undisclosed amount to establish a new global foods innovation center in the Netherlands.

The innovation center is expected to be fully operational by April 2019.

Located in Wageningen, the new centre will house its food unit’s research and development (R&D) organizations that are currently located in Vlaardingen (the Netherlands), Heilbronn (Germany) and Poznan (Poland).

It will accommodate a total of around 550 employees.

Unilever Europe president Jan Zijderveld said: “The Agri-Food Innovation climate in The Netherlands is very strong.

“The co-location of all elements of our Foods R&D organization within the Foods Innovation ecosystem in Wageningen will enable Unilever to strengthen its ability to develop cutting edge Foods innovations in close collaboration with the Wageningen University & Research (WUR) and a broad variety of other science institutes and startups”.

According to Unilever, with co-locating R&D resources of its home care, personal care, foods and refreshment into key R&D locations, it can create critical mass in expertise areas.

Besides, the move will enable the company to ensure that the technologies it develops eventually result in breakthrough innovations to the markets.

Additionally, the London based multinational fast moving consumer good company said that its aim is to develop its R&D sites gradually into innovative ecosystems while taking complete advantage of its external partners’ knowledge and expertise.

Unilever Foods president Amanda Sourry said: “The Foods Innovation ecosystem in Wageningen will bring together a strong combination of in-house R&D and external science and technology, talent and facilities, increasing the impact of Unilever’s own resources and capabilities, and ultimately creating the innovative power that we need to provide leadership in Foods”.

Apart from the foods R&D, the company is also set to relocate its home care and  personal care R&D facilities to the Innovation ecosystems in Port Sunlight while its refreshment organizations will be moved to Colworth Science Park.

All these R&D facilities are currently based at the Vlaardingen which will be shut down in the course of time.

Source:  food-business-review.com


Companies , ,

Nestlé and R&R complete Froneri ice cream joint venture

October 15th, 2016
Food giant Nestle and Yorkshire’s R&R Ice Cream have completed a transaction to create their new Froneri ice cream and frozen food joint venture.
The 50/50 joint venture announced in April will combine Nestle and R&R ice cream businesses across Europe, the Middle East, Argentina, Australia, Brazil, the Philippines and South Africa.
“With sales of around 2.6 billion euros (£2.27 billion), Froneri will operate in 22 countries across the world, employing around 15,000 people,” Froneri said on its website.
It will also include Nestle’s European frozen food business excluding pizza and retail frozen food in Italy, as well as its chilled dairy business in the Philippines.
The terms of the transaction were not disclosed.
In a statement, Froneri said: “Froneri will build on the success of Nestlé’s strong brands and experience in ‘out of home distribution’ and R&R’s competitive manufacturing performance and significant presence in retail.
“Froneri’s leadership team combines industry expertise and business acumen from across Nestlé and R&R. The company’s board of directors is chaired by Luis Cantarell, Nestlé’s executive vice president, Europe, Middle East and North Africa and its CEO is Ibrahim Najafi, formerly CEO of R&R.”
The agreement followed months of formal talks between Nestle and R&R’s owner, PAI Partners.
R&R can trace its roots back to 1932 when an enterprising young Italian, Regina Roncadin, opened her first ice cream parlour in Germany .
In 1970 her nephew established Roncadin’s ice cream parlours across the country.
In Yorkshire, farmer Jonathan Ropner and businessman James Lambert formed Richmond Ice Cream in 1985.
Richmond Foods merged with Roncadin in 2006 and R&R was born. R&R currently employs 800 people at its headquarters in Leeming Bar, North Yorkshire.
Speaking in April, Mr Najafi, said: “This is great news for us. It’s something that we’ve been working on ever since our first deal with Nestle back in 2001, when we had an agreement with them in the UK.
“We’ve been partners with Nestle, we know Nestle very well so we’ve been working really hard on this one for a while.
“I feel thrilled about it, Nestle’s a great company and a great partner.”
The venture followed a portfolio review aimed at improving Nestle’s performance, which has been weakened by slowing emerging markets, a change in consumer tastes toward fresher foods, and heightened competition.
Mr Najafi said that the skills of the people at both businesses complemented one another and that the brands fit “like a glove to a hand”.

Source:  yorkshirepost.co.uk



Could chocolate cake be the hot breakfast trend for 2017?

October 15th, 2016

t_chocolate-183543_640The UK-based The Independent recently made a prediction that will surely have dessert enthusiasts in a good mood; chocolate cake will be a hot trend for breakfast next year.

On Monday morning, the news outlet stated that the dessert item will be popping up on breakfast menus. This comes from Liz Moskow, the culinary director at Sterling-Rice Group (which is based out of Boulder, Colorado and works with clients such as Wendy’s, Annie’s, and Quaker).

As Moskow told Food Business News, “There was a study that recently came out from Syracuse University re-touting the benefits of dark chocolate, specifically on cognitive function — abstract reasoning, memory, focus. The thought was eating chocolate prepares you more for your workday, so what better day part to incorporate dark chocolate into your meal than breakfast?”

Two recent studies seem to support that last statement. The first one (as mentioned by Moskow) was found in a Maine-Syracuse Longitudinal Study (MSLS) published in the journal ‘Appetite’ earlier this year, which says that eating chocolate regularly was linked with cognitive function. The second study came from Tel Aviv University, and suggested that eating dessert for breakfast can aid weight-loss because it reduces cravings.

“Combining those two studies and the likeability of having dessert for breakfast, we predict that breakfast might start seeing brunch amuse-bouche chocolate cakes or brunch and breakfast restaurants incorporating a robust dessert menu,” Moskow said.

Fuente: bakemag.com



DuPont highlights bakery portfolio

October 15th, 2016

DuPont Nutrition & Health is highlighting what it says is the depth and breadth of its bakery ingredient portfolio, focusing on clean label ingredient strategies, shelf life extension and non-PHO solutions.

DuPont Nutrition & Health is highlighting what it says is the depth and breadth of its bakery ingredient portfolio, focusing on clean label ingredient strategies, shelf life extension and non-PHO solutions.

Among those products are the DuPont Danisco non-GMO, Roundtable on Sustainable Palm Oil (RSPO) certified, sustainable emulsifiers from a Mass Balance or segregated source, including non-GMO sunflower, non-GMO rapeseed and GMO canola.

“Demand for clean labelling is greatly influencing bakery product development today,” said Janelle Crawford, strategic marketing lead, Bakery. “There’s a growing awareness and interest in cleaner food and cleaner eating from consumers; yet at the same time, consumers are not willing to sacrifice taste or value.”

DuPont consumer research exploring clean label attitudes found nearly half of consumers agreeing that “contains no chemicals or artificial ingredients” was a “very important” consideration when deciding what brands to purchase. In the same survey, “ingredient lists contain only recognizable ingredients” was “very important” to 46% of the sample.

Comparatively, taste was a “very important consideration” for a significantly higher portion of the sample . “Retrofitting an ingredient statement on a product to tackle clean label concerns can be challenging, and altering a well-established product may not be the route to take when looking to market a clean label product,”

Crawford said. “Having a strategic, prioritized approach to address clean label concerns, while maintaining quality and taste throughout product shelf life is critical.”

Source:  ingredientsnetwork.com


Companies, Ingredients , ,

Stevia flavour masker ‘enhances taste of fruit’, Ohly claims

October 15th, 2016

Ingredients company Ohly has launched a ‘powerful’ natural solution for masking the bitterness of stevia.

Sav-R-Sweet will allow manufacturers to pursue reductions in sugar by using the natural sweetener stevia, but at the same time eliminates undesirable off-tastes to make sugar-reduced food and beverages palatable to consumers.

The ingredient blocks the metallic, bitter and off flavours of stevia, is natural and clean label, has a neutral taste without any yeasty notes, and even enhances fruity flavours. This makes it ideal for fruit preparations, fruit yogurts and fruit-based drinks.

In addition, Sav-R-Sweet remains stable under process conditions and boasts a low cost of use, Ohly said.

Ohly global sales director Rainer Huettermann said: “We tackled the flavour challenges of stevia sweeteners head on with a partner product that will effectively mask bitterness and boost fruitiness. It means introducing Sav-R-Sweet facilitates higher levels of sugar reduction and actually improves flavour.”

Stevia is a zero-calorie natural sweetener from the leaves of the stevia plant, which draws a sweet taste more powerful than sugar from sterol glycosides.

Ohly claimed that test results showed a significant improvement in taste experience with different fruit drinks prepared with Sav-R-Sweet compared with a stevia-only control drink.

Source: foodbev.com



High-protein wheat premiums to widen on crop damage -trader

October 15th, 2016

Global premiums for high-protein wheat are expected to rise as unseasonal rains drive down quality in key producers, while Chicago futures are likely trade in a tight range in the next few months, a leading Singapore-based trader said on Wednesday.

Wet weather at the time of harvest has left large volumes of wheat only fit for animal consumption in leading exporters such as Canada and Australia.

“This year is going to be the year of lack of proteins, even the Canadians have had wet conditions towards their close,” Vijay Iyengar, managing director of Agrocorp International, told Reuters as part of its Global Commodities Summit.

“Proteins are going to be scarce and the market is going to price accordingly.”

The spread between soft red wheat traded on the Chicago Board of Trade Wv1 and protein-rich spring wheat on the Minneapolis Grains Exchange 1MWEc1 has widened to $1.18-3/4 a bushel after trading almost at par in September.

Iyengar said Chicago wheat futures would trade in a range of $3.80 to $4.20 a bushel on the ample availability of lower-protein grain.

“The world in awash with low-quality wheat right now.”

Chicago wheat prices dropped to a 10-year low of $3.59-1/2 a bushel at the end of August as back-to-back years of near-record output are expected to boost global inventories to an all-time high of around 250 million tonnes this year.

Iyengar said he expected India to buy up to 4 million tonnes of wheat. Millers in the South Asian country have already booked about 1.5 million tonnes since June following lower production in the past two years.

Privately-owned Agrocorp has four plants for processing pulses and grains in Canada, and is on the look out to acquire more facilities in Canada, Myanmar and Australia.

The company, with an annual turnover of $2 billion, sells wheat, corn and rice in Asia. It is among the top five pulse suppliers in the world.

Iyengar said there were unlikely to be further deep declines in corn Cc1 and soybean prices Sc1, which also hit multi-year lows earlier in 2016.

“Corn seems to have found a level now, the only reason that it is not moving higher is because of feed wheat availability,” he said.

“For soybeans, the market was of the view that prices would go down to $9.00 a bushel, but they seem to have found a level at $9.50.”

For pulses and peas, Iyengar said global output would likely rise with higher planting in India, Canada and Australia in response to high prices last year.

“The way the Canadian dollar is, the prices of pulses are still good for exports, harvest pressure on the market is over,” he said.

“There will be demand in India for Australian chickpeas as the domestic crop only comes into the market by March and April.”

Source: Reuters



Commodities ,

Cargill Offers First Non-GMO Project Verified Ingredients

October 12th, 2016

Cargill, a traditionally vehement supporter of genetically modified crops, is to sell its first food ingredients which have been verified that they do not contain genetically modified organisms. One of the world’s biggest food suppliers has made the move amid a landscape in which foodmakers and the public are wanting Cargill and other suppliers to provide GMO-free ingredients.

Cargill said that for the first time it has received verification from the voluntary labeling organization, the Non-GMO Project, for three of its food ingredients.

The three ingredients carrying the non-GMO seal of approval are cane sugar, high oleic sunflower oil and erythritol, a sweetener made from corn.

The number of US new products launches tracked with a GMO-free claim is entering a new stage, as major companies reveal plans to label their use of genetically modified ingredients, according to Innova Market Insights data.

An analysis of global mainstream new product launches [excluding supplements, sports nutrition, clinical nutrition, oral care and pet food] featuring a GMO-free claim grew from 1% of launches in 2010 to 5% in 2015. But when looking specifically at the US market, launch numbers are even more dramatic, rising from 1% in 2010 to 14% in 2015.

“Consumer demand for non-GMO food and beverages is growing, and Cargill is responding,” says Mike Wagner, Managing Director for Cargill’s starches and sweeteners North America division.

“We’re delighted to work with the Non-GMO Project, the leading verifier of non-GMO products in the United States. Their distinctive trademark is the most recognized symbol for non-GMO products in the country.”

Cargill, which supplies ingredients for the likes of General Mills and Kraft Heinz, has over the years supplied ingredients for thousands of products that have been genetically altered, such as corn and soybeans.

However, US consumer buying habits are changing. Consumer awareness of GMO products has grown in recent years, as consumers are becoming more demanding about the provenance of the ingredients they eat.

Some are wanting “clean label” foods, which can include a non-GMO verification.

It said that it would likely sell more products, verified as non-GMO, in the future.

Cargill said: “Cargill’s commitment to verification of these ingredients, and others expected in the future, should have significant impact on the available non-GMO verified ingredient supply for consumer packaged goods, and increase the acreage dedicated to non-GMO agriculture in North America.”

Sales of Non-GMO Project verified products increased from $348.8m in 2010 to more than $19bn in March 2016.

According to Packaged Facts, demand for non-GMO products is expected to grow 12 percent annually through 2018.

Martin Westgate, Executive Director and Founder of the Non-GMO Project, said that inking a deal with Cargill would increase the availability of non-GMO foods to consumers.

He said: “The Non-GMO Project’s mission is to preserve and build sources of non-GMO products, educate consumers, and provide verified non-GMO choices.”

“Achieving this mission requires participation by companies of all sizes, including supply-chain leaders like Cargill that can provide large-scale availability of non-GMO food ingredients.”

“We hope that Non-GMO Project Verification for these three Cargill products, and likely more to come, will continue to expand the availability of non-GMO foods for the millions of consumers who seek them.”

The US federal government passed a law earlier this year stipulating that food companies must label their products which contain GMOs.

The Cargill high oleic sunflower oils receiving Non-GMO Project Verification include:
•    Clear Valley High Oleic Sunflower Oil
•    Clear Valley Expeller Pressed High Oleic Sunflower Oil
•    IngreVita High Oleic Sunflower Oil

Cargill selected NSF International to be Technical Administrator for Cargill’s Non-GMO Verified ingredients. NSF International is a global independent organization that writes standards, and tests and certifies products for the food, water, health sciences, and consumer goods industries.

Source:  foodingredientsfirst.com


Ingredients ,