Ferré & Consulting Blog (English Version)

The European Commission has cleared under the EU Merger Regulation the proposed acquisition of the Spanish supplier of the baking industry Panrico SAU by US based alternative investment manager Oaktree Capital. The Commission found that the transaction would not raise competition concerns because there are no overlaps between the parties´ activities.

The proposed transaction does not result in horizontal overlaps between the parties activities, since Oaktree has no company in its portfolio that is active in the same markets as Panrico. The Commission examined the vertical relationship between one of Oaktree´s portfolio companies Nordenia with activities in flexible packaging and Panrico´s activities in bakery products.

However, due to Nordenia´s low market share in the upstream market for flexible packaging for bread, biscuits and cakes, the merged entity would lack the ability to shout out competitors from supplies. Moreover, the Commission´s investigation confirmed that the proposed transaction would not lead to any material change in the structure of the market.

The Commission therefore concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it. The transaction was notified to the Commission on 16 November 2011.

Oaktree is a global alternative and non-traditional investment manager engaged in businesses in a variety of industries, including packaging, manufacturing, healthcare, clothing, travel, real estate, exploration and mining, food, telecommunications, media and entertainment. Barcelona-based Panrico is active in the manufacture and wholesale distribution of bread, pastries and biscuits in Spain and Portugal.

Source: Bakenet:eu

Companies Oaktree, Panrico

Opening in Xi’An, China marks milestone in Dunkin’ Donuts’ worldwide growth; Dunkin’ Donuts also celebrates additional new restaurant openings this month around the world, including locations in Bogota, Colombia; Riyadh, Saudi Arabia; and Kingsland, Ga.

Dunkin’ Donuts has more than 80 restaurants in Greater China. The newest restaurant in China, the 10th in Xi’An and 10,000th in the world, is being opened by franchisee Shannxi Stellerich Food & Restaurant Management Co., Ltd. The opening of the 10,000th Dunkin’ Donuts location will be celebrated in Xi’An with much fanfare, including a grand opening ceremony complete with local dignitaries, a traditional Chinese lion dance and a jazz band.

“We are proud to have opened the world’s 10,000th Dunkin’ Donuts restaurant in China, a country which we believe offers tremendous opportunity to both our Dunkin’ Donuts and Baskin-Robbins brands,” said Nigel Travis, CEO of Dunkin’ Brands and President of Dunkin’ Donuts. “From its beginnings as a single restaurant in Quincy, Mass., Dunkin’ Donuts is today a global brand located in 32 countries around the world. Our geographic diversity is truly a testimony to the fact that customers everywhere, from China to Saudi Arabia, Colombia and Georgia, appreciate what Dunkin’ Donuts offers – high quality food and beverages served in a friendly, fast environment at a great value.”

During the first nine months of 2011, Dunkin’ Brands, Inc., the parent company of Dunkin’ Donuts and Baskin-Robbins, opened approximately 480 net new locations globally, including 230 net new Dunkin’ Donuts restaurants. Dunkin’ Brands has more than 16,500 restaurants in 56 countries and is one of the largest U.S. quick service restaurant (QSR) companies internationally by unit count.

Dunkin’ Donuts has maintained steady global growth over the past several years, opening new restaurants in the United States, the Middle East, Asia-Pacific, Russia, and Latin and South America. Earlier this year, Dunkin’ Donuts announced an agreement to enter India and plans to open more than 500 restaurants in the country over the next 15 years. Last month, Dunkin’ Donuts surpassed 100 restaurants in Saudi Arabia.

“Because of our strong brand recognition, our differentiated products, innovative marketing and nearly 100 percent franchise business model, we believe Dunkin’ Donuts has significant growth opportunities both in the U.S. and abroad,” concluded Travis. “We are delighted to celebrate the opening of our 10,000th Dunkin’ Donuts restaurant, and look forward to many more openings to come both in existing and new markets around the world.”

For more information about Dunkin’ Donuts, please visit www.DunkinDonuts.com or follow us on Facebook ( www.facebook.com/DunkinDonuts ) and Twitter ( www.twitter.com/DunkinDonuts ).

About Dunkin’ Donuts Founded in 1950, Dunkin’ Donuts is America’s favorite all-day, everyday stop for coffee and baked goods. Dunkin’ Donuts is a market leader in the regular/decaf coffee, iced coffee, hot flavored coffee, donut, bagel and muffin categories. Dunkin’ Donuts has earned the No. 1 ranking for customer loyalty in the coffee category by Brand Keys for five years running. The company has 10,000 restaurants in 32 countries worldwide. In 2010, Dunkin’ Donuts’ global system-wide sales were $6 billion. Based in Canton, Mass., Dunkin’ Donuts is a subsidiary of Dunkin’ Brands Group, Inc. DNKN +2.05% . For more information, visit www.DunkinDonuts.com .

Source: Dunkin’ Brands

Companies Dunkin' Donuts

Bakery manufacturers face the threat of rising egg prices – and even shortages – when new Europe wide animal welfare legislation comes into force on 1 January. But they could avoid taking a hit by specifying egg replacers instead, according to Arla Foods Ingredients.

The Welfare of Laying Hens Directive will ban the use of cramped battery cages, forcing egg producers to use larger ‘enriched’ cages that allow laying hens more space to perch and move around.

However, as many as 13 countries across the European Union, including Spain, Italy and Poland, have admitted that their egg industries will not be ready to meet the new requirements in time for the New Year – sparking fears of availability problems and higher prices.

The looming crisis has prompted Arla Foods Ingredients to urge bakery manufacturers to consider using egg replacement products – such as Nutrilac – to protect themselves from growing uncertainty in the market.

John Gelley, sales director for EU Bakery at Arla Foods Ingredients, says, “No-one knows for sure what impact the Directive will have. But with so many member states admitting that they are unprepared for the changes, there are worrying signs that bakers could face difficulties sourcing sufficient eggs for their needs or, at the very least, significantly higher prices.”

He continues, “Egg replacement ingredients, such as our own Nutrilac range, offer the perfect solution to avoiding this uncertainty. They perform just like eggs in a host of bakery applications, and enable companies to maintain product quality and all-important clean label status.”

Manufactured from fractionated whey proteins, Nutrilac egg replacers offer several advantages over eggs. They are less expensive than eggs, they are lower in calories, saturated fat and cholesterol than eggs, they have a longer shelf life than eggs – up to 18 months – and they produce great tasting end products.

Gelley says, “We’re confident that bakers will be delighted by the benefits of egg free baking with Nutrilac – and there’s no doubt that the onset of the Welfare of Laying Hens Directive means now is the ideal time to make the switch.”

The Welfare of Laying Hens Directive comes into force across the EU on 1 January 2012. It prevents hens being kept in cages with less than 45cm of headroom and 750cm2 of floor space. It also obliges egg producers to provide perches and litter to allow the hens to nest, peck and scratch.

 Source: Confectionery Production

Ingredients directives, egg supply, prices

2012 is the 250th Anniversary of the Sandwich and to mark the occasion, the British Sandwich Association  is launching a national campaign to promote sandwiches – and it is designed to directly support sandwich businesses. Starting in January with the announcement of the anniversary, the campaign will build through the year. Some features of the campaign:

• A special logo has been produced and registered to mark the Anniversary which will feature in a major publicity and promotion campaign throughout the year. The logo can be reproduced on pack and on point-of-sale material in-store to highlight the anniversary and any promotions you may be doing.
• The Association is also launching a new consumer website in January  which will feature member outlets and any special promotions they are running. These will also be promoted through the BSA marketing campaign.
• From March the Association will be launching a «Sandwich of the Month» campaign supported by a massive PR programme designed to highlight the featured sandwich. This will include a substantial social media campaign each month using Facebook and Twitter to encourage consumers to try the «Sandwich of the Month». Recipes for the feature sandwiches will be distributed to retailers and manufacturers taking part well in advance so that they can include them in their ranges and take full advantage of the press campaign behind each sandwich.
• Point-of-sale material to support each featured sandwich will also be provided in advance and distributed to retailers and manufacturers taking part. They can either print this off to use in shops or use the artwork to create their own bespoke material.
• A monthly national competition is being launched from February which consumers can enter to win a number of prizes over the year. Each month there will be a major consumer prize to be won which will be presented via winner´s nominated shop and at the end of the year a major prize of a holiday in the Sandwich Islands (Hawaii) will be presented to one lucky winner. Point-of-sale material will be provided to support this competition, including simple entry details.
• Plus, those bakeries featuring the competition in store or on-pack will have the option of running their own bespoke competitions within the overall competition.
• Also in March, the Association will be launching a new on-line consumer magazine to promote the campaign as well as to generally promote sandwiches. Also featured will be details of activities by members.

In addition to this activity, the Association is also planning a major national event in May designed to grab headlines. There are also discussions about creating a TV programme about the history of the sandwich. Market research is also being planned to create a better understanding of the dynamics of the sandwich market.

Source: Bakenet:eu

Events anniversary, sandwich

The Swedish confectionery companies Cloetta and Leaf have announced a merger of the two companies. The combined company will take the well established name of Cloetta and become a leading Swedish confectionery company with a strong base in the Nordic region as well as in Italy and the Netherlands. The new Cloetta will manage a strong portfolio of iconic brands, long established brands including Kexchoklad, Läkerol, Polly, Ahlgrens bilar, Plopp, Malaco and Cloetta in Scandinavia, Jenkki in Finland, Sperlari and Saila in Italy and Red Band and Sportlife in the Netherlands.

Source: Confectionery Production

Companies Cloetta, Leaf

A new theme park made entirely of chocolate has just opened in China’s Shanghai.

Shanghai’s World Chocolate Wonderland welcomed visitors through its doors on Friday (December 16), into a theme park of lifelike chocolate exhibits.

According to Reuters, everything on display was made from chocolate, including a replica of ancient China’s famous Terracotta Warriors and the traditional Chinese symbol of the dragon.

Organisers say that the choice of delectable items on display was made based on an effort to unite the East and the West.

Tina Zheng, manager of the Beijing Artsource Group that is behind the mouth-watering project, said that the exhibit is the result of a ‘clever combination’ of both cultures.

‘The truth is, Western and Eastern cultures together can make a clever combination. So here at the exhibition, you can see that we have used Western chocolate, which has more than 3000 years of history. But Chinese culture has a history dating back over 5000 years. So blending both Western and Eastern cultures to make a clever and creative combination has brought about a creative spark.’

The exhibition has attracted visitors of all ages, young and old. 19-year old Chen Aobo (pronounced Chen Ow Boh) said that he was impressed by how lifelike the chocolate articles were.

‘I feel that it’s quite cosy here, plus most of the exhibition was extremely lifelike, and the dragon and terracotta warriors were so vivid and so well-made, so I think it’s all pretty good.’

Also on display were chocolate models of Chinese porcelain vases.

As much as adults may enjoy the novelty of being surrounded by chocolate objects, it is much more of a dream come true for sweet-toothed children.

‘I want to play here for a long, long time. I want to buy a huge box of chocolate here. If they have cakes I want to buy a huge cake too,’ a five-year old said.

A chocolate fashion show, in which models strut down the catwalk in fancy chocolate outfits, was hosted earlier on Thursday (December 15) ahead of the grand opening.

Entrance fee starts at 100 yuan ($16 US Dollars). The wonderland will remain open until February 19, 2012.

Chocolate, Events China, Chocolate, World Chocolate Wonderland

Leatherhead Food Research, a UK-based independent research organization, has predicted the food and drink trends set to make an impact in 2012.

“2012 looks set to be one in which on-going trends will be stretched to their full potential, particularly as consumer concerns about health and wellness have prevailed and continue to be high on the agenda,” says Laura Kempster, senior market analyst. “Coupled with this, the uncertain economic future continues to affect both industry and consumers with a ‘tightening of belts’ attitude still very much affecting spending and investment.”

The 10 food and drink trends that Leatherhead has identified are:

Health and wellness

Health and wellness is a trend which has had an over-arching influence on the developments of the food and beverage industry in recent years and this influence is set to continue into 2012. Key priorities for companies include the continued efforts to meet guidelines on the reduction of salt, fat and sugar as well as the active promotion of health benefits on products (ranging from ‘one of your five a day’ to more niche areas such as the inclusion of functional ingredients).

Sustainability

There is a continued focus on issues of sustainability and this is likely to be a present and influential trend for many years to come as companies work hard to streamline their practices and supply chains into more ethically-sound operations. This encompasses a whole range of issues including packaging-reduction initiatives, ever-more ethical sourcing policies, reduction of food miles etc.

Convenience

Food seems to be everywhere we look at the moment and hundreds of column inches and hours’ worth of television programming are devoted to the topic of eating.

However, it is still highly likely that those Christmas-present cookery gadgets will remain in the cupboards next year. The fact is that whilst we’re engaging with food more than ever, our busy, chaotic lifestyles simply will not allow elaborate home-cooked meals during the working week. In addition, the development of new ready meal concepts in the form of meal kits and premium offerings ensure that choice and quality of prepared meals are like never before.

Flavour solutions

Compensating for lower levels of salt, fat and/or sugar will continue to increase the need for more flavourful solutions. Combinations of herbs, spices and other strong flavours will provide a flavourful backdrop to many products. Think of ingredient combinations such as lemongrass, garlic and ginger or the use of seaweed as a salt enhancer. Furthermore, consumers are looking for more adventurous and premium flavour combinations, for example the use of lavender in dark chocolate.

Free from foods

The crux of this market lies within the seemingly growing number of consumers who do not have a diagnosed food allergy but do believe their general health improves with the omission of certain foodstuffs from their diet for example avoiding wheat/gluten to combat bloating. Therein lies an opportunity for both mainstream manufacturers to highlight additional product benefits as well as allowing the traditional ‘free from’ brands to break the niche mould within which they’ve traditionally operated.

On-going demand for natural

Whilst the hype around the natural trend has dampened slightly, the effects are on-going particularly as larger multinationals weigh up the costs and benefits of switching to natural components (e.g. food colours, flavours). However, the practicalities have set in and companies now need to consider issues such as the sustainability of supply as well as the longevity of consumer demand in their particular product area (e.g. those product categories with inherent natural associations are likely to remain in demand).

The budget conscious still seek affordable luxuries

Lack of confidence in markets continues to affect the economic recovery and as such the austerity measures we hoped would end are anticipated to continue well into 2012. Unrelenting pressure on household budgets will see retailers continue to flex their value for money credentials; thus manufacturers will persist in their efforts to seek cost-effective solutions. Conversely however, food is seen as an affordable luxury and therefore lucrative opportunities do exist, for example in the form of ‘staying in’ solutions (such as meal kits) and more premium offerings.

Quality linked to location

Consumers are more keenly aware of where their foods are produced and sourced and this will continue to impact the food and beverage market in two ways. Firstly, the demand towards locally produced and sourced fresh food including meat, vegetables, fruit and cheeses has not abated and will continue into 2012. Interestingly, the restaurant industry is seeing activities such as foraging and sourcing of speciality ingredients grow exponentially as chefs seek to differentiate their menus. Secondly, more exotic ingredients such as Madagascan vanilla will also benefit from an overt provenance message. The clear message is that location helps to give consumers a distinct impression of the product’s quality.

Over 55 and fitter than ever

Longer working lives and a strong interest in maintaining a healthy, active lifestyle is leading to the creation of more products which are tailored to the specific needs and wants of these consumers. Health benefits will be at the forefront of the market and this will be a key area of development for the functional ingredients market in particular – think glucosamine for joint health and omega-3 products.

Softer claims

The ever-changing regulatory environment is having a strong impact in the way manufacturers are positioning their products. For example, EFSA regulations have taken the shine off the functional health market and the cost/benefit trade-off of substantiated EFSA claims is unlikely to provide a strong competitive edge in most cases, particularly as ‘me too’ products remove the incentive for innovation. Instead manufacturers will persist with seeking out a softer approach to deliver key messages to their consumers (e.g. within colour, imagery, phraseology etc.).

Source: Bakers Journal

Research food trends, Leatherhead Food Research

Malaysian cocoa plantation owner KLK Selbourne Estate won this year’s Cocoa Industry Award for the best plantation in Malaysia after partnering up with Barry Callebaut for a joint agronomy research program.

The award, handed out by the Malaysian Cocoa Board, evaluated plantations on physical quality of the estate, agronomic practices, management, technology usage and welfare.

At the awarded plantation, Barry Callebaut contributed the research and development facility (a laboratory for fermentation research and a laboratory for agronomy research), the cocoa fermentation unit, as well as the sun and artificial drying unit.

Barry Callebaut initiated the research program with KLK Selborne Estate in collaboration with Switzerland’s Research Institute of Organic Agriculture, the Bolivian consultancy ECOTOP, and the University of Gent in Belgium. The research program focuses on developing new agronomy techniques aimed at increasing plantation yields and enhancing cocoa bean quality while managing cocoa plantations in a sustainable manner in order to ensure their future productivity.

The results of this multi-year trial will subsequently be used to help develop new strategies for increasing cocoa production.

Source: Bakers Journal

Chocolate award, Barry Callebaut, KLK Selbourne Estate

Grupo Bimbo  announced that it has completed its acquisition of Sara Lee Corporation´s  fresh bakery business in Spain and Portugal for 115 million EUR. The acquisition includes bread, pastries and snacks produced under the Bimbo, Silueta, Ortíz, Martinez and Eagle brands, among others.

The business employs more than 1’900 associates, operates seven production facilities and manages more than 800 distribution routes. In fiscal 2011, the business generated net sales of 408 million USD. This acquisition positions Grupo Bimbo as the leading branded bread company on the Iberian Peninsula and enhances the Company´s international growth with a strong and established bakery business.

This transaction was funded with cash holdings. The financial results of Spain and Portugal fresh bakery business will be included in Grupo Bimbo´s consolidated results starting on December 04, 2011.

Source: Bakenet:eu

Companies Grupo Bimbo, Sara Lee Corporation

Latest research from Mintel on the sugar and gum confectionery market in Europe reveals that in the big five European countries, sales of sugar and gum confectionery have remained stagnant over the past four years (2008–2011), from €8.6 billion in 2008 to an estimated €8.9bn in 2011.

Sales particularly declined in the most mature markets such as Germany, which despite remaining the largest market in Europe has seen sales drop from €3.8bn in 2008 to €3.6bn (est.) in 2011. Meanwhile, the UK market has remained stable at around €1.8bn both in 2008 through to 2011. Similarly, France has seen modest growth, from €1.4bn in 2008 to €1.5bn (est.) in 2011. In Spain and Italy, the market managed to post a growth, although modest, from €1bn (Spain) and €768 million (Italy) in 2008, up to €1.1bn (est. Spain) and € 795m(est. Italy) in 2011.

David Jago, director of innovation and insight at Mintel, says “Prolonged economic uncertainty has affected consumer confidence, and now people have started cutting down on non-essentials items, affecting a market that was supposed to be recession proof. Other factors hampering sales include a plethora of other snacking products, healthy eating trends, and an ageing population. Overall, both sugar and gum confectionery markets are mature in Western Europe and have little room for further growth; however Eastern European markets offer more opportunities.”

However, it is not all bad news for the confectionery industry. Mintel’s research shows that Europe has been active in new product launches for the sector, accounting for 27% of global sugar and gum new product launches during January 2011 to June 2011, down a small 1% on the previous six months. Asia Pacific was the leading region in new product development during this period, accounting for 42% of total launches. Mintel’s GNPD recorded some 965 new products in Europe in this period in sugar and Gum confectionery, with the UK (20%) leading in terms of NPD activity among the big five European countries during this period, closely followed by Germany with 18% and Spain with 12%.

When it comes to the latest trends, the most noticeable one is the introduction of more natural ranges and the elimination or reduction of additives and preservatives. Indeed, the ‘no additives/preservatives’ claim was the second most popular across Europe during the six months to June 2011, accounting for around 20% of the gum and confectionery launches, a figure which more than doubles the 9% seen globally.

Meanwhile, the ‘low/no/reduced sugar’ claim dominates in new product development in the category, with 22% of new launches with this claim over the past six months. The claim is however far more popular within the gum confectionery market, with 56% of new gum products featuring the claim.

Pastilles, gums, jellies and chews remain the largest sub-category in Europe for NPD at 23% of the launches for the review period, followed by gum (14%), toffees, caramels & nougats (12%), and boiled sweets (9%). In particular, the sub-categories that saw above average activity compared to the global market included standard & power mints (8%), Llquorice (8%) and medicated confectionery (7%). With flavours, traditional flavours remain extremely popular in Europe, with fruit varieties dominating (30%) the market, followed by berry fruit (21%) and herbs (20%).

Source: Confectionery Production

Confectionery confectionary, Mintel