Ferré & Consulting Blog (English Version)

Net majority income of Grupo Bimbo SAB de CV in the year ended 31 Dec., 2009, was NP5,956 million (US$466 million), up 38% from NP4,320 million in fiscal 2008. Sales rose 42%, climbing to NP116,479 million (US$9,118 million) from NP82,317 million.

For the fourth quarter ended Dec. 31, net majority income was NP1,760 million (US$138 million), up 38% from NP1,274 million in the same period a year ago. Sales were NP30,084 million (US$2,355 million), up 36% from NP22,178 million in the same period a year ago.

“It was an outstanding year for Grupo Bimbo, marked by the successful integration of the largest acquisition in its history that along with a more beneficial commodity environment, helped propel the company’s results,” Grupo Bimbo said.

Operating profit in the United States during fiscal 2009 was NP4,261 million (US$334 million), up sharply from NP125 million a year ago. Sales rose 177% to NP49,977 million (US$3,913 million) from NP18,049 million.

“Net sales more than doubled on a quarterly basis when compared to the same period of 2008,” Grupo Bimbo said. “Growth reflected the incorporation of BBU East and higher volumes in both regions. New products, such as Sandwich Thins, which were pioneered by BBU, as well as promotions, helped drive volume growth in a highly competitive environment. For the full year, sales almost tripled … also as a result of the incorporation of BBU East and healthy volume performance.”

In the Mexico division, operating profit was NP7,500 million (US$587 million), up 9% from NP6,855 million in fiscal 2008. Net sales were up narrowly to NP55,388 million (US$4,338 million) from NP54,845 million.

In Latin America, operating profit fell 30% to NP301 million (US$24 million) from NP431 million despite a 20% gain in sales to NP13,606 million. Grupo Bimbo said the declines reflected significant deterioration in its Venezuela operations. Also in the region, the company said it experienced higher sales and distribution expenses associated with efforts to increase penetration, as well as higher labor costs.

Companies Grupo Bimbo, sales

The European Food Safety Authority has issued a positive safety opinion on sucrose esters produced by reacting sucrose and vinyl esters of fatty acids, which could open up new possibilities for improving the solubility of flavourings in drinks.

Sucrose esters of fatty acids are already permitted in the EU, after being assessed in 1992 and assigned the E-number E473. The earlier approval relates to sucrose esters of fatty acids and sucroglycerides from palm oil, lard, and tallow fatty acids.

But Singaporean company Compass Foods applied in 2008 for approval to market sucrose esters from monoesters of lauric acid, mysteristic acid, palmitic acid, and stearic acid. These sucrose esters are produced via a different process, by reacting sucrose and vinyl esters of fatty acids.

This is said to result in very tiny residues of vinyl esters of fatty acid, acetaldehyde, and p-methoxyphenol – but these were not seen to be at a level to raise concern for EFSA’s panel.

EFSA was asked to assess the safety of the sucrose esters produced via this process by the European Commission – as well as whether the go-ahead to use the sucrose esters of fatty acids in water-based beverages would increase total intake levels beyond the current ADI of 40mg/kg. Notably, the sucrose ester of lauric acid was not considered in the evaluation that led to this ADI.

After assessing the evidence, EFSA’s panel concluded that the monosters proposed by Compass Foods would be extensively hydrolysed in the gastrointestinal tract into ocnsituent fatty acids and sucrose before being absorbed.

It found that, as long as the ADI of 40mg/kg is not exceeded, the sucrose esters of fatty acids produced by the new process do not pose a safety issue. However in Ireland, where sucrose esters of fatty acids are used more commonly as a glazing agent for fruits, some consumers could exceed the ADI.

“There is no is no reason to believe that the sucrose monoesters of fatty acids per se produced by the new manufacturing process should in any way have biological or toxicological effects different from those of sucrose monoesters of fatty acids produced by the currently-used manufacturing methods.”

The panel was unconcerned about the lauric acid source, as although there are limited toxicological data on this available, lauric acid is found in quite high levels in a number of foods. In order for the new esters to be permitted, EFSA pointed out that the current specifications would have to be changed to include the sucrose ester of lauric acid.

Moreover, permission would need to be granted for supercritical carbon dioxide to be used as a solvent to make them.

Food Safety EFSA, fatty acids, sucrose esters

Monosodium glutamate

Symrise has developed a highly concentrated umami flavour which it will market as a replacer for monosodium glutamate (MSG) in Europe, once approval is granted.

Umami is one of the five taste sensations detectable by humans, together with sweet, bitter, salty and sour. It is the taste quality associated with several amino acids, especially the amino acid L-glutamate.

Symrise already has some unami flavours in its portfolio, but Matthias Hille, category manager of the savoury business unit at Symrise explained that none is as concentrated as the new ingredient. Whereas a standard umami flavour would be added at a level of around 0.12 per cent in a gravy, for instance, the new Symlife Umami can be used at 5 parts per million (ppm).

“The major advantage is that in its diluted format can be as a direct MSG replacer,” said Hille. Some consumers are inclined to avoid MSG, as they have a negative association of it.

Symlife Umami can be added to other flavourings sold by Symrise to give a boost to the umani perception, such as chicken flavour or other less concentrated umami ingredients. He explained that dosing the ingredient one gram at a time via pipette is not feasible for industry, which prefers to work with 25kg bags.

Aiming for positive list

Symrise’ R&D team spent three years working on Symlife Umani. While it is already being employed by some manufacturers of savoury products in Asia Pacific and has FEMA GRAS (generally recognised as safe) status in the US, it is not yet permitted in the EU.

Hille said it is on the evaluation list of the European Food Safety Authority (EFSA), with an opinion expected by the end of this year. “We don’t expect big challenges,” he said. Once the opinion is granted, the ingredient is expected to be added to positive list of permitted flavours under the new flavouring regulation.

The company is already communication about the development to customers, however, due to the long lead time for trying it out in their products.

The umani flavouring is produced by a symthetic process. It was developed after the R&D team identified a unique perception from raw material, and carried out structure performance tests to identify the molecules responsible for that perception. The scientists then worked together with the flavourists to recreate the quality.

Hille said they have been “able to prove this ingredient is also working directly on the receptor in our mouths”.

Umami market

While umami is closely associated with Asian cuisine, Hille predicts that the tide away from using MSG in products means Europe could be just as big a market for the new flavouring as Asia.

Symrise is not the only firm aiming at MSG replacement. Givaudan said last year that it has discovered molecules associated with umami as part of its TasteSolutions programme, by analysing “traditional fermentation processes, cooking techniques and artisanal ingredients” from around the world. This research, as well as its research into taste perception, forms the basis for its new clean label ingredients.

In 2007 US-based Wild Flavors, too, launched a new taste modification platform called SavorCrave that was claimed to allow manufacturers of savoury goods to add the distinct umami flavor and mouthfeel to soups, sauces, meat marinades, frozen entrees and seasonings.

Yeast extracts, too, have targeted the umami space, though Hille said Symrise’s new concentrated flavour could have cost advantages. It is still exploring this proposition, but depending on the kind of yeast extracts, the application and the dosage level Hille reckons the saving could be in the region of 15-20 per cent.

Ingredients monosodium glutamate, umami flavour, yeast