Ferré & Consulting Blog (English Version)

Bakery

World exports of wheat flour in 2009-10 were once again forecast at a record 12.6 million tonnes of wheat equivalent in an updated report just issued by the International Grains Council. While the trade total was unchanged from the previous forecast of last February, significant revisions were made for both exporting and importing countries.

Among the significant changes was an upward revision in prospective US flour exports in 2009-10, now placed at 450,000 tonnes of wheat equivalent, compared with 300,000 as the previous forecast. The IGC said the increase reflected “larger-than-expected shipments, particularly to Pakistan, the United Arab Emirates and Kenya.”

At 450,000 tonnes of wheat equivalent, equal to 7.2 million cwts of flour, U.S. exports compared with 314,000 in 2008-09 and would be the largest since 479,000 were shipped in 2007-08. While up substantially from the previous low point, US flour exports still lagged the major flour exporters by a major degree.

World flour exports of 12.6 million tonnes of wheat equivalent would be up 3% from 12,256,000 in 2008-09 and were 6% more than 11,849,000 tonnes exported in 2007-08. This year’s trade aggregate would be up 18% from 10,694,000 in 2006-07. Three straight crop years of increases brought the new record in global flour shipments.

Along with the 125,000-tonne increase in prospective US flour exports in 2009-10, gains of 200,000 tonnes each were forecast for exports by Argentina and Turkey. Most of Argentine flour shipments head for neighboring Brazil and Turkey’s mills have continued to supply Iraq.

Among major decreases in prospective exports were 150,000 tonnes for Russia and 100,000 for Ukraine and the European Union.

Kazakhstan’s rank as the world’s leading flour exporting country was maintained, with shipments once again forecast at 3 million tonnes of wheat equivalent, compared with 2,733,000 in 2008-09 and 2,054,000 in 2007-08. The latter was the first year in which this one-time member of the Former Soviet Union became the world’s leading flour exporter.

Neighboring Uzbekistan provided the principal outlet for Kazakhstan flour exports, the total of that nation’s imports forecast by the IGC at 1.4 million tonnes of wheat equivalent. Such imports were up 100,000 from the prior projection and compare with 1,222,000 tonnes in 2008-09 and 919,000 in 2007-08.

Ranking second as flour exporting nation was Turkey, with its outgo now placed at 2.5 million tonnes of wheat equivalent, compared with 2,161,000 in 2008-09. Turkey’s exports peaked in 2005-06 with an outgo of 2,649,000 tonnes.

The European Union and Argentina are tied for third place in flour exporting, with the outgo for each forecast at 1.3 million tonnes of wheat equivalent. The Argentine outgo would be near the same as in the prior crop year, while E.U. shipments at this level would be down 12% from 1,482,000 tonnes shipped in 2008-09.

When it comes to import destinations for global wheat flour, Afghanistan once again was the leading market. According to the IGC, this country’s imports in 2009-10 will reach 1.6 million tonnes, against 1,409,000 in the prior season and 922,000 in 2007-08.

Uzbekistan held second place as a flour export destination, accounting for 1.4 million tonnes, against 1,222,000 in 2008-09. Iraq, forecast to import 1.1 million tonnes in 2009-10, was in third place, with its taking practically the same as in 2008-09.

Ingredients flour exports, forecasts, world flour trade

Cereals manufacturer General Mills is one of the top ten UK employers, according to a new survey.

The report, called UK’s Best Workplace, was published by Great Place To Work Institute.

Dairy manufacturer Danone is also in the top ten, while beverage giant Coca-Cola and confectioner Cadbury ranked in the top 25 employers.

Since the inception of the best workplace programme, more than 500 UK workplaces have been recognised by the institute.

As well as this, the institute has worked with UK organisations to measure their workplace climate and help them assess their own space, Tom O’Byrne, chief executive officer of the Great Place To Work Institute, wrote in the report.

Recently, Cadbury’s new owner, Kraft Foods, said it may cut up to 600 jobs in the UK.

Kraft plans to close its headquarters in Cheltenham and move operations to Cadbury sites in Uxbridge and Bourneville in other part of the UK.

Companies General Mills, UK's Best Workplace

The European Commission (EC) is reviewing consumer goods giant Unilever’s acquisition of the Personal Care and European Laundry business at Sara Lee.

Under the deal, Unilever will acquire more than 90 different brands from Sara Lee in 19 European countries.

These products include Radox, Brylcreem and Sanex.

However, the EC has said it needs “more time” to consider the full implications of the deal in terms of the competition aspect that could be affected by the takeover.

Unilever has said it “welcomes the opportunity to engage more fully with the commission’s competition authorities”.

Recently, Unilever has announced it is increasing the marketing of a number of the food and beverage products in its range.

It is launching a new innovative sampling campaign for Lipton Fruit and Herb Infusions, which is geared towards women aged between 25 and 35.

In the run-up to the summer, it is also set to give a major advertising boost to its ice cream Cornetto.

Cornetto is left lagging behind its sister brand Magnum in terms of sales, which has persuaded Unilever to increase Cornetto marketing, Marketing Week reported.

Companies European Commission, Sara Lee, Unilever

The head of Kraft Foods said she was not concerned by top investor Warren Buffett’s decision to cut his stake in the U.S. food group after criticizing her acquisition of British chocolatier Cadbury.

The integration of Cadbury is on track and benefits from the $18.4 billion deal will become clear to shareholders, Chairman and Chief Executive Irene Rosenfeld told Reuters on Friday.

“I will say that for Mr Buffett as well as for all our shareholders, in the coming months we will continue to deliver against the targets we have laid for ourselves. These results will speak for themselves,” Rosenfeld said.

With a market value of $53 billion, Kraft, the maker of Oreo cookies and Philadelphia cream cheese, is the largest North American food maker and the world’s second biggest behind Nestle.

Kraft shares currently trade at about 12.5 times 2011 estimated earnings, below rivals such as Nestle’s 14.8 times, Hershey’s 17.4 times and General Mills’ 14.3 times.

Awaiting buffett’s congratulatory card

Buffett has said in the past that when a company made an acquisition he bought two greeting cards, a congratulatory card and a condolence card and waited five years to decide which card to send, Rosenfeld said.

“What I have said to him is that I am quite confident he will be sending me a congratulatory card and it will be in far less than five years,” she added.

Kraft bought Cadbury earlier this year after a hostile takeover battle that tested Rosenfeld’s leadership and created the world’s largest confectionery group.

The deal gives Kraft additional confectionery businesses which are growing faster than its core food and beverage brands like Maxwell House coffee and access to emerging markets like India.

Buffett’s Berkshire Hathaway previously owned 9.4 percent of Kraft, making it the largest shareholder. But since the beginning of the year Berkshire has sold down its stake to 106.73 million shares, giving it 6.1 percent of the shares in issue as at the end of April, according to regulatory filings and Reuters data.

Buffett said Rosenfeld had paid too much for Cadbury and called the recent sale of Kraft’s frozen pizza business to Nestle “particularly dumb.”

But Kraft has set a goal for at least $675 million of annual cost synergies from the deal by the end of the third year.

“We are well on our way to deliver those,” she said, adding the integration was “progressing extremely well” .

Meanwhile the sale of Cadbury’s Polish and Romanian businesses, which Kraft must sell for competition reasons, is likely to happen in the next six months, and there are a number of interested buyers, she added.

Earlier this month Kraft posted higher than expected first-quarter revenues, helped by the Cadbury acquisition and growth in emerging countries, but forecast 2010 earnings per share that were below analyst estimates, raising concerns over how smoothly Cadbury can be integrated.

Jobs

The Cadbury deal also means that Kraft’s global workforce of 98,000 employees will join Cadbury’s 45,000.

Rosenfeld acknowledged there would be redundancies but said the group would not commit to a global figure as decisions would be made country by country and left to the local managers.

In Britain Kraft’s handling of the takeover drew criticism after it said in February it would shut Cadbury’s Somerdale confectionery plant in western England with the loss of 400 jobs.

This decision came despite Kraft suggesting during the takeover battle that it might be able to keep the factory open. Kraft has committed not to make any further manufacturing redundancies for the next two years in Britain.

Happy with current portfolio

In March, Kraft completed the $3.7 billion sale of its pizza business to Nestle to help fund the Cadbury deal.

Asked if Kraft could exit other businesses, Rosenfeld said: “I feel very good about the portfolio today. I am quite confident the targets we have laid out for growth both for the top and bottom-line we can deliver with the portfolio as we know it today.”

She said she would continue to look at opportunities over time to ensure all assets contributed to the group’s growth.

Apart from integrating Cadbury, Kraft, like other food companies, has to grapple with soft consumer spending, rising commodity prices and volatile currencies.

It expects commodity costs to rise by between 1 and 2 percent this year but Rosenfeld said these costs should be manageable within the group’s overall plan.

Kraft, which now makes 51 percent of revenue outside North America, was also closely watching the currency situation in Europe, notably the weak euro.

Asked about consumer trends for the second quarter, she said: “In the second quarter we will see many of the same trends as we saw in the first around the world.”

Rosenfeld was in Paris for the start of building an biscuit research and development center in Saclay, Paris, where Kraft is investing 15 million euros. Kraft spends over 1 percent of its global turnover on R&D.

Kraft, which bought the biscuit business of Danone in 2007, is the global leader in the $60 billion biscuit market.

Source: Reuters

Companies Cadbury, CEO, Kraft, Warren Buffet

As Sweets & Snacks Expo continues in Chicago, the National Confectioners Association (NCA) predicts the leading new products trends:

Chocolate-Covered Everything – Manufacturers look for more and more treats to cover with chocolate. While local gourmands may seek out chocolate-covered bacon and mushrooms at their hometown confectioners, mainstream America will look for more classic items such as the crunchy, salted centre of m&m’s Pretzel Chocolate Candies from Mars Chocolate North America. Chocolate-Covered Pumpkin Peeps from Just Born are available in both milk and dark chocolate.

Up in the Air – Snacking practically takes flight as these light or aerated confections hit the shelves. The 3 Musketeers Truffle Crisp Bar from Mars Chocolate North America is a truffle on a airy crisp layer of meringue enrobed in chocolate. From the Wonka brand of Nestle Confections & Snack Divisions comes Whipped Wingers, an aerated gummy in flavours like watermelon and pineapple. Skinny Mini’s, the lightweight vegetable and potato stick snacks from Cornfields are about 30 per cent lower in fat than similar snacks.

Real Good – Natural and wholesome ingredients have not gone unnoticed by the confectionery and snack industry. Honey as an ingredient and as a flavour harkens back to the origins of sweetened confections, but seems as fresh and new as any innovation with Honey Bean, a Jelly Belly jelly bean infused with wildflower honey and new Honey Lovers, colourful heart-shaped fruit chews made with real honey offered by Gimbal’s Fine Candies. Wholesome, simple ingredients make up Get Movin’ snack crackers by Partners, a Tasty Choice Company. Nutorious nut confections are available in five different varieties and are all natural, low sodium, and GMO-free, and contain no trans fats or preservatives. Vegan Chocolate Truffles from Native Gardens boast a medley of benefits and are dairy-free, gluten-free, low sugar, low calorie and handcrafted.

The Galloping Gourmet – Asher’s Chocolates proves that the combination of sweet and salty is as popular as ever with its Vanilla Caramels with Sea Salt. Jelly Belly toasts many flavours of cocktails with Jelly Belly Cocktail Classics – mojito, peach bellini and more. Double-filled truffles from Madelaine Chocolate, Duets, fill milk chocolate truffles with flavour pairings including peanut butter and caramel and milk truffle and white truffle. Candy maker Wonka has introduced a line of whimsical confections called Wonka Exceptionals that includes the Domed Dark Chocolate Bar, a bed of dark chocolate topped with milk chocolate medallions; the Chocolate Waterfall Bar with a blend of white and milk chocolates and the Scrumdiddlyumptious Bar, featuring pieces of toffee and peanuts.

Fresh-N-Fruity – Bursting on the scene with fresh and powerful flavours are candies and gums such as American Licorice Company’s Grapevines and Jolly Rancher Awesome Twosome Chews from The Hershey Company that combine two flavours with two unique textures in each bite-size piece featuring watermelon surrounded by green apple and cherry filled with orange. Wrigley has brought out Extra Fruit Sensations Sweet Tropical gum, as well as Starburst Summer Fun Fruits in kiwi-banana, lemon-limeade, cherry splash and watermelon; and Skittles Fizzl’d Fruits in flavours like wild cherry and melon berry. Straight out of “Charlie and the Chocolate Factory” comes Stride Shift from Cadbury North America – a flavour-changing gum that starts off tasting like citrus or melon and shifts into mint.

Dark and Dreamy – Dark chocolate has been increasing in popularity for years and new product introductions have played a big part in the expansion of the category. This year look for Kit Kat Dark from The Hershey Company and Necco’s new Clark Bar Dark. Cote d’Or is showcasing a Pistache Noir dark chocolate bar and Dark Chocolate Cherry Raisinets are made from whole dried cherries,drenched in Nestlé dark chocolate.

Source:  Confectionery Production

Confectionery, Events Chicago, Expo, snacks, Sweets

From Milano to the world. The big cultural show of the world to see and taste. The Widest panorama of the cultural modern DESSERT event ever realized in the world.

During the UNIVERSAL EXPOSITION in MILANO on 2015, Each Country will present the creations of the newest chocolate cakes, ice creams, wine aperitifs and cocktails 5% created by Pastry Chefs, Barmen and Sommeliers of their cities and branded with city’s name.

Springle it around in your towns and countries. Let your favourite Pastry Chefs and barmen and Sommeliers participate to this unique event.

THE FIRST desserts and cocktails Branded with city’s name

World wide cultural event The branded new chocolate cakes and cocktails of The world. The Pastry Chefs are requested to create The first chocolate cakes of the THIRD CENTURY.

Branded with city’s name This event will take place from now till the UNIVERSAL FAIR in MILANO on 2015. Each Country’s Pavillon will present their exclusive pastry Master’s creations , and the new cocktails .

Events millenary cakes, universal expo of milano