Ferré & Consulting Blog (English Version)

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

The Chinese Government has cleared Nestlé’s bid to acquire a majority stake in Singapore-listed confectionery manufacturer Hsu Fu Chi for $1.7bn, following the completion of an anti-monopoly review.

In July, Nestlé entered into a partnership agreement with Hsu Fu Chi to buy a 60% stake in the company, as part of its strategy to generate over 45% of its revenue from emerging markets by 2020.

Once completed, Hsu Fu Chi will hold the remaining stake, and its current CEO and chairman Hsu Chen will head the company in the new partnership.

Nestlé will buy 43.5% of Hsu Fu Chi shares from independent shareholders for S$4.35 (US$3.38) per share, a premium of 8.7% on the 1 July closing price.

Hsu Fu Chi spokeswoman said that the company expects the courts in the Cayman Islands, where the company is registered, would soon clear its delisting from Singapore Stock Exchange, and expects the transaction, Nestlé’s biggest in China, to close by the end of December.

The clearance for Nestlé’s latest bid comes a month after Beijing approved Yum Brand’s takeover of restaurant company Little Sheep, easing concerns over its hardline stance towards acquistion of local brands by foreign companies.

Hsu Fu Chi, which manufactures sugar confectionery, cereal-based snacks, packaged cakes and the traditional Chinese snack sachima, operates four large-scale factories in China and reported sales of CHF669m ($803m) in 2010.

Nestlé China manufactures culinary products, soluble coffee, bottled water and milk powder, and operates 23 factories and two R&D centres, with sales of CHF2.8bn ($3.3bn) in 2010.

Early this year, the Swiss company acquired a 60% stake in food-maker Yinlu Food, which produces ready-to-drink peanut milk and ready-to-eat canned rice porridge.

Caption: The clearance for Nestlé’s bid for a 60% stake in Hsu Fu Chi eases concerns over Beijing’s hardline stance towards foreign firms acquiring local brands.

Source: Food Processing Technology

Companies Hsu Fu Chi, Nestle

On his visit to Fi Europe 2011 in Paris last week Charles Rivkin, the US Ambassador to France and Monaco, chose to emphasise the importance of the food industry to the global economy in this time of austerity.

“In today’s economy there’s nothing more important than having shows like this to promote trade,” he said.

He reaffirmed his country’s belief that there is an enormous opportunity for trade between the EU and America when it comes to agricultural products.

“It’s agricultural exports that America excels in and they are central to our National Export Initiative,” said Rivkin. “We have some of the best growers and producers on the planet, and focusing on the things that we do well is central to our national economic strategy.”

Source: Ingredients Network

Events Fi Europe, food ingredients

Recently, consumers are more and more consciously looking for products free from certain ingredients such as additives, preservatives or refined sugars. They are constantly balancing their desire for something natural and healthy with something tasty. Barry Callebaut now offers an alternative: Sweet by Fruits. This chocolate is sweetened by all natural fruit sugars, derived entirely from fruits. It functions as an alternative sweetening solution, thus replacing the refined sugar in chocolate.

“We are very excited to launch Sweet by Fruits, the first chocolate on the market with only sugars 100% derived from fruits”, stresses Hans Vriens, chief innovation officer at Barry Callebaut. “This chocolate does not contain any added refined sugar and no added artificial sweeteners. It is made from selected cocoa and sweetened by sugars from fruits such as apples and grapes without compromising in the exquisite taste of our high-quality chocolate.”

Sweet by Fruits is the first chocolate that combines the entire and complex sugar profile of selected fruit and thus forms an answer to the increasing demands for chocolate with ingredients from natural sources, and also excludes potential side effects of some other alternative sweetening solutions. Fruits contain by nature different sugars such as glucose, fructose, sucrose, polyols and complex sugars. Whereas for existing fructose chocolate the fructose is being isolated, and purified, Sweet by Fruits uses the entire sugar profile of the selected fruits.

Source: Confectionery Production

Chocolate Barry Callebaut, Chocolate, Sweet by Fruits

Marshmallows no longer need to be just pink and white, thanks to a breakthrough development from natural flavourings and colourings company Wild. The company is now offering manufacturers a broad spectrum of natural colours – including reds, yellows and oranges – for the popular confectionery item, using sources such as safflower, and elderberry.

“Our R&D department are very proud to have overcome the technological challenges of using natural colours in marshmallows,” said Hélène Möller, product manager, ingredients at Wild.

Wild has also announced new flavourings for marshmallows, including raspberry, lemon, cherry and vanilla.

The challenge for product developers was, according to Möller, determining the correct dosage for different shades. This depends on aeration strength with colours suitable for the application. “In the end we found form-stable colours and flavours, both from natural sources,” she says.

Source: Ingredients Network

Confectionery colors, marshmallows