General News
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Gerald and Ralf Schubert establish Schubert Business Development GmbH
10 June 2020Pictured from Left to Right: Peter Gabriel, Gerald Schubert and Ralf Schubert The Schubert brothers are opening a new chapter in strategic business development - Schubert Business Development GmbH. The new company, which is independent from Schubert GmbH, aims to identify market trends and opportunities, and to promote and develop innovation for various industries. Furthermore, partnerships and equity investments with companies in the packaging sector will be pursued. Schubert Business Development is headed by shareholding partners Ralf and Gerald Schubert as well as Peter Gabriel, who will manage the newly founded company together with Gerald Schubert. “We will develop new business models with existing partners in the packaging industry and explore entirely new approaches to diversify our current business in the packaging industry,” explains company founder Gerald Schubert. “Strategic collaborations with partners will be taken into consideration as well as investments in or acquisitions of start-up companies.” According to Peter Gabriel, the approach is clearly “more than a think tank for modern production-oriented companies”. Schubert Business Development GmbH will support and promote start-ups – analytically, with ideas and financially as well. In doing so, it will not only support start-ups, but also promote investments in and the acquisition of existing companies. Whether sustainable production processes in mechanical and plant engineering, digitalisation or innovative solutions in the field of automation – “in all these areas we see a need for experts who are not only deeply involved in the subject matter, but who can also promote creativity in the right place and correctly assess markets”. Furthermore, Schubert Business Development GmbH will facilitate collaborations that were previously not possible due to sector constraints. This is why company owners Gerald and Ralf Schubert not only talk about an exciting new challenge, but also about investing in the future, also for Gerhard Schubert GmbH. “Of course, we are also further expanding possibilities for diversification in the packaging field. There are still many opportunities here for investment in various segments of the packaging industry, in technology as well as in clever minds and engineering services.”
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Online confectionery sales expected to grow for rest of 2020
09 June 2020An upturn in online food sales, including confectionery and bakery resulting from the coronavirus pandemic has provided key insights into the future of the retailing within the sector, according to a leading food and drink IT specialist. CSB-System says that the growth offers a huge opportunity for manufacturing and trade companies, and that the current crisis has merely accelerated a trend that experts have long seen coming. As Confectionery Production has reported, confectioners have increasingly turned to online retailing to maintain sales as many smaller specialist stores have remained closed during the pandemic. “A recent study from GlobalData has forecast that the UK online food & grocery retail market will grow by 25.5% this year,” said Timo Schaffrath, the company’s marketing & PR manager. “Nevertheless, even before coronavirus, the figure for 2020 was still an impressive 8.5%. “Such statistics back up a pre-crisis study from Oliver Wyman consultants, who forecast a five-fold increase in online grocery sales in Germany.” CSB says that proper planning will be essential to maximise opportunities and that rather than trying to make short-terms gains, companies should take the longer view. “An online shop cannot, and need not, be built in a day,” pointed out Schaffrath. “To be successful from the start, it is important to have the systems in place to ensure all relevant information is correctly displayed and regularly updated, and that customers receive a fast response and prompt deliveries.” Key to this is an adequate ERP system to act as the technical basis for the digital shopping baskets. ERP is essential because it lays the foundation for easy implementation of automatic, up-to-date agreements on prices and discounts, and product specifications such as weight and use-by dates. It also delivers vital traceability information once a product has been despatched. Alongside this, companies need to establish a coherent and easy to navigate representation of their existing product catalogue. To achieve this effectively, CSB recommends replacing a website’s home page with the online shop. A high-quality display of products will be the most important consideration for customers, and making this the first page that they see reduces the number of clicks necessary to find what they are looking for. Another suggestion from CSB for the successful establishment of an online shop is for companies to start with their current customer base. “Online selling will firstly provide added value to existing customers and enable a business to establish itself in the market; this is preferable to trying to attract new customers from the start, which will inevitably require substantial investment,” said Schaffrath. “Similarly, it will be more economical in the short-term to stick to the local area rather than attempting to go nationwide or global from the outset.” He concluded: “Online shopping is fast becoming the new reality for the food sector. With the perfect integration of ERP and an online shop, companies will be off to a flying start in being able to make the best of this opportunity.”
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How has the coronavirus impacted sugar for the global confectionery market? - Ragus Sugars reports
08 June 2020With countries in lockdown seeing a huge uplift in purchases of stable foodstuffs, including sugar-rich convenience foods, the transfer of sugar consumption to the private home has seen an increase in the supply of industrial sugar. With the situation certain to continue, Ben Eastick, Marketing Director, Ragus Sugars, lifts the lid on how this may affect sugar for the confectionery market in the coming months. The coronavirus (COVID-19) has completely altered our livelihoods and the global economy. Lockdowns around the world have closed restaurants, cafes and offices, with almost all sporting events and concerts now cancelled or postponed. As a result, the point at which sugar is being consumed has shifted - but will this affect the global demand for sugar used in confectionery? Times of crisis create concerns over food supply lines. In response, agricultural commodities, such as sugar, tend to perform well. Since the UK’s lockdown, we have seen consumers hoard items such as bread, flour and pasta and if this continues, individual countries may have to start stockpiling foodstuffs, leading to a surge in demand for sugar. COVID-19 hit the world just as global sugar prices were starting to recover from the 10 year low of 2018, reaching 15c/lb this February. Since the outbreak, the commodity price of sugar has plunged back to 10c/lb for raw sugar, the lowest value since 2018. It is still unknown exactly how sugar consumption will be affected by the global lockdown created by COVID-19, but overall consumption could reduce by as much as 2mln tonnes, with countries already adopting isolation measures seeing a 5% reduction in sugar consumption. At Ragus, we have seen that while demand for sugar out of home has dramatically decreased, demand for sugar has increased for industrial consumers making foodstuffs for home consumption. Total global sugar production for 2019/20 is estimated to be 176mln tonnes, compared with 184.9mln tonnes produced in 18/19. These figures translate to a total global deficit for sugar of around 10mln tonnes in 2019/20. TIMELY EUROPEAN HARVEST Heavy rainfall since September delayed the tail end of lifting the beets in Europe, with many countries concluding harvests just before lockdowns took effect. Sugar production for what was the EU 28 is estimated at 17.4mln tonnes for the 2019/20 campaign, which will result in the EU becoming a net importer for the second year in succession. Recent improved weather has seen all the beets processed and Spring sowing beets for 2020/21 crop is now complete, after a delayed start due to very wet February weather. The majority of Europe is now on coronavirus lockdown, which will result in reduced consumption of sugar across the foodservices sector, but we expect to see an uplift in industrial use as indoor consumption increases. This makes the conclusion of the harvest especially timely, allowing sugar manufacturers like Ragus to draw on the several months-worth of sugar stored in liquid form to produce industrial sugars and syrups. Year to date, exports of EU sugar onto the world market are down 46% and are estimated to be only 1.0mln tonnes for this season, compared with 1.6mln tonnes in 18/19. BRAZIL Harvesting for 2019/20 came to an end in April with a higher crushing rate compared to last year. The prospect for the 2020/21 crop, which starts later this month, is very positive. This is due to good rainfall, meaning moisture levels in the soil remain high, allowing for good cane development. However, the spread of COVID-19 in Brazil is yet to be fully realised. This means there are still risks of labour shortages and stoppages of the mills producing sugar. The ports of Santos and Paranagua are currently operating normally, but it remains to be seen whether this remains the case. We will have a clearer picture of how these potential factors could affect sugar needed for the global confectionery market in the coming weeks and months. Initial signs of a plentiful harvest are promising but could be thwarted by any subsequent port closures. With India also feeling the effects of the coronavirus, there is a chance for Brazil to step in and fill any supply shortcomings. Whether it will be able to do so, however, is still unclear. Brazil exported 19mln tonnes in the 2019/20 season, its lowest total in several years. With the predicted sugar mix being over 46% for the 2020/21 crop, this should add a further 10mln tonnes of exportable sugar onto the world market. With the industry being an important supplier of food, fuel and power to the country, any enforced government lockdowns as a result of the coronavirus are unlikely to shut down the mills. Lockdown looming, Brazilian mills are doing their utmost to crush as much as they can, preventing uncut cane from being left in the fields. Such actions should help ensure a stable supply of sugar. This depends, of course, on whether ports can remain fully operational. INDIA The coronavirus has now arrived in India and ...
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Tate & Lyle announces major sustainability investment at its facility in Lafayette South, Indiana, U.S., on World Environment Day
05 June 2020Tate & Lyle PLC has announced a US$75 million investment in a new natural gas-fired combined heat and power system to deliver significant environmental and economic benefits at its Lafayette South corn wet milling facility in Lafayette, Indiana, US. This investment, announced on World Environment Day, will support the delivery of Tate & Lyle’s ambitious new sustainability targets for 2030 published last month including to reduce greenhouse gas emissions, eliminate coal from its operations, and reduce water use. The new gas turbines will generate electricity and steam to power and heat the facility, delivering a significant improvement in energy and operational efficiency. The new co-generation system will replace the site’s coal-fired boiler, delivering around 40% reduction in greenhouse gas emissions and around 5% reduction in water use. Work at the site to transition from a coal-fired boiler to new gas turbines is being undertaken with strict safety protocols that include social distancing and other protective measures. This investment follows completion of a similar system at Tate & Lyle’s corn wet mill in Loudon, Tennessee in 2017. Tate & Lyle has a six-year, US$150 million productivity programme, which is now in its third year, and this investment is part of delivering that programme. Travis Montoya, Plant Manager at Lafayette South, said: “This major investment will make our facility more efficient and directly benefit the local community through improved air quality, decreased water use, and less truck traffic. At Lafayette South, we have a strong track record of energy efficiency, having received the U.S. Environmental Protection Agency’s ENERGY STAR accreditation for five consecutive years; this is a real source of pride for the local team.” Melissa Law, President of Global Operations at Tate & Lyle, added: “A key pillar of our purpose of Improving Lives for Generations, is to care for our planet and to help protect its natural resources for the benefit of future generations. This project at Lafayette South is a great example of our purpose in action and will help us meet our ambitious new environmental commitments, driving important energy-saving and environmental benefits.” Footnotes 1. Lafayette South has received ENERGY STAR accreditation every year since 2015.
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China gives the green light to whey permeate imports
03 June 2020Arla Foods Ingredients has welcomed the news that whey permeate can now be exported to China for use in food and beverage products. On 15 May 2020, China published an official safety and quality standard for using permeate powders in food processing – signifying that its market is ready to accept imports of the ingredient with immediate effect. The development comes as a result of a recent trade agreement between the US and China. However, the standard applies globally, and permeate from any country may be exported to China provided it complies with the requirements. Henrik Jacob Hjortshoej, Head of Sales Development, Food at Arla Foods Ingredients, said: “The opening of the Chinese market to permeate exports is highly significant for the global dairy ingredient industry. Demand for permeate is rising fast in China, just as it is across the world. We look forward to working with our customers in China to supply them with the highest quality whey permeate powder for their food and beverage applications.” Whey permeate is a milk solid with around 80% lactose content. Used as a bulking agent, it is a highly cost-effective replacement for skimmed milk powder, lactose and sweet whey powder. In 2017, powdered permeate received a Codex Alimentarius international standard. Arla Foods Ingredients markets Variolac® whey permeate, which has sweet milky taste, low ash content, stable mineral profile and free-flowing powder properties over a 12-month shelf life. Permeate is increasingly being used by multinational brands, particularly in categories such as chocolate and biscuits, but also in hot drinks, dairy and desserts. Innova figures show that the number of new products containing whey permeate has more than doubled in recent years, growing from 169 in 2015 to 387 in 2019.
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Baileys launches new Strawberries and Cream Cake
02 June 2020Finsbury and Diageo are extending their partnership by adding a Baileys Strawberries and Cream Celebration Cake to the UK market. Following on from its Limited-Edition Strawberries and Cream liqueur drink launched last year, the new cake, from Finsbury Food Group, consists of a light strawberry sponge cake, infused with Baileys Strawberries and Cream throughout the frosting and topped with dried strawberry pieces. Jack Cook-Broussine, Brand Manager for Finsbury Food Group, said: “We can’t promise that we’ll have a great British Summer but we can promise that you can enjoy a delicious Baileys Strawberries and Cream cake – whatever the weather! “We know people have loved the chance to enjoy the rich taste of Baileys infused in a cake and our new Baileys Strawberry and Cream cake ensures we’re continuing the tradition of creating the perfect combination of a light touch of liqueur with luxurious cake. We will keep introducing new and fun ways to give adults the chance to enjoy two of their favourite treats together in one delicious serving!” Declan Hassett, Senior Licensing Manager at Diageo, said: “We have quickly seen that ripe strawberry flavourings mixed with our well-loved creamy liqueur are a firm favourite in the summer months. We want to ensure that we’re giving the many Baileys lovers the chance to enjoy the smooth flavourings in different and exciting ways. “We have already enjoyed great success with Finsbury and our range of Baileys-infused cakes and have no doubt this is going to be one to be enjoyed throughout the summer!” The full range of Baileys cakes includes: Baileys Hot Chocolate Freakshake Cake, Baileys Chocolate Yule Log and Baileys Salted Caramel Cupcakes. New additions to the range are planned for later this year.
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Hershey commits to direct sourcing of cocoa in West Africa
29 May 2020The Hershey Company has expanded its Cocoa For Good program by committing to 100 percent direct-sourced cocoa in high-risk areas by 2025, which will include all of its cocoa sourced by its suppliers from Cote d’Ivoire and Ghana. Hershey said the expanded commitment will make cocoa coming from these countries traceable from the farm to the first point of purchase, giving Hershey a clear line of sight into where all of its cocoa from West Africa is grown and how it is produced – providing more transparency for consumers and all stakeholders. In 2012, as part of the company’s long-standing efforts to create more sustainable cocoa communities, Hershey committed to sourcing 100 percent certified and sustainable cocoa by 2020 – a goal it reached in January. Hershey launched its Cocoa For Good in April 2018, furthering its cocoa efforts by investing $500 million by 2030 to nourish children, empower youth, build prosperous communities and preserve natural ecosystems. “By purchasing all our cocoa as certified and sustainable, we directly support higher incomes for farmers and improve labor and environmental standards,” said Jeff King, senior director of global sustainability and social impact. “We recognise, however, that certification is not enough. Transitioning to 100 percent direct cocoa sourcing for these high-risk areas gives us more transparency into our cocoa supply chain and enables us to provide more support to farmers and scale-up programs such as Child Labor Monitoring and Remediation (CLMRS) to 100% of our Cote d’Ivoire and Ghana-sourced cocoa by 2025 to help end child labor.” A majority of the world’s cocoa comes from West Africa, where poverty is the biggest cause of labor issues. Cocoa farmers face challenges such as a lack of local infrastructure, the impacts of climate change on agriculture, and the ability to find workers for small family farms. Hershey is driving transformational change to create a sustainable cocoa supply chain. This requires engaging and collaborating with stakeholders across sectors – farmers, government, suppliers, NGOs and peers – to overcome the challenges of how cocoa is bought and sold. Hershey’s expanded Cocoa For Good program doubles down on its four key areas of Nourishing Children, Empowering Youth, Prospering Communities and Preserving Ecosystems. This encompasses: Improving farmer incomes To help increase farmers’ income from cocoa, Hershey is investing in farmer training to enable growing more cocoa on less land and improving productivity, which helps address poverty, the main driver of labor issues in cocoa. Hershey is also helping farmers diversify their incomes with alternative crops and other income-generating activities, as well as paying farmers a premium for their cocoa. In addition to these efforts to raise incomes, Hershey is paying the Ivorian and Ghanaian Living Income Differential (LID), a premium paid to the government that seeks to help support farmer income. Elimination of child labor, including forced and slave labor Hershey is expanding its Child Labor Monitoring and Remediation Systems to assess more than 125,000 children and provide any remediation that is necessary, such as providing birth certificates so children can stay in school. This is a 350 percent increase in the number of children being helped through Hershey’s CLMRS work since 2018. To date, this CLMRS work has found zero instances of forced labor within the segment of the Hershey cocoa supply chain assessed. Strengthening zero-deforestation commitment through Cocoa & Forest Initiative Hershey is increasing coverage of its satellite monitoring systems and mapping 100% of the West African cocoa farms in its supply chain, ensuring real-time and accurate monitoring. Additionally, the company is supporting new solutions for farmers to obtain affordable land titles to promote farm rehabilitation and increase shade-grown cocoa.
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German confectionery sector faces tough measures during coronavirus
28 May 2020The German confectionery industry has not been immune to the coronavirus pandemic with 52% of companies reporting first quarter decreased sales, according to studies from the Federal Association of German Confectionery Industry (BDSI). The BDSI represents the economic interests of over 200 German confectionery companies and has called on the government to give priority to the domestic economy in order to secure jobs and investments in the country. The results were down to the loss of important sales channels such as department stores and sweets stores that have remained closed for a long time during the COVID-19 crisis. This is in addition to other key traditional markets including public festivals, which have been banned under present government guidelines as the country, along with the rest of the world, grapples with the pandemic. According to the research from BDSI, 73% of manufacturers within the confectionery and snack market category said that the current outlook for the rest of this year, would be more challenging than last year. This year’s major international sweets fair, ISM in Cologne (pictured), was staged at the end of January, just as the coronavirus pandemic was taking hold, with the broad range of releases for 2020 unable to subsequently reach markets in the coming months in light of the virus causing widespread disruption to markets. In addition to decreased domestic sales, the results of the survey found that export markets had also been significantly hit, with 57% of companies recording a sharp downturn in demand for sales in this traditionally strong segment. Within export orders, sales were reported to be down by 64%. The survey also showed that 84% of companies are affected by the corona pandemic facing human resource challenges, in particular, the lack of available childcare of employees within companies leads to practical problems. In the opinion of the BDSI it is necessary to consistently strengthen the domestic economy policy top priority to be given to jobs and investment to support the national interest. Bastian Fassin, Chairman of the BDSI said: “New regulatory requirements in the current situation are becoming a challenge and small and medium-sized companies can no longer bear additional costs. What companies need now is relief in corporate taxation and a consequent reduction in bureaucracy, as well as a deferral of bills that are not absolutely necessary.”
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Barry Callebaut to acquire GKC Foods in Australia
27 May 2020The Barry Callebaut Group has signed an agreement to acquire GKC Foods (Australia) Pty Ltd, a producer of chocolate, coatings and fillings, serving many consumer chocolate brands in Australia and New Zealand. This acquisition establishes Barry Callebaut’s direct presence and manufacturing capacity in the growing Australian market. The acquisition of GKC Foods empowers the Group to expand its position in the industrial chocolate market and to leverage its value-adding Gourmet & Specialties business in Australia and New Zealand. Barry Callebaut will continue to work with local distributors across Australia and New Zealand who have been importing and distributing its industrial and Gourmet chocolate and cocoa products to the country since the 1970s. Australia and New Zealand have an average chocolate consumption of approximately 5kg per capita, the highest per-capita chocolate consumption in Asia Pacific, according to Euromonitor. In Australia, demand for chocolate has been on the rise – the chocolate confectionery market in the country grew well above the global market according to Nielsen. GKC Foods has been manufacturing “Made in Australia” chocolate and confectionery products since the 1980s. Today, the company produces a wide range of products including organic and vegan chocolate for dedicated chocolate shops, gourmet delis, specialty food outlets, and key national retailers. The company operates a chocolate factory and a warehouse in Melbourne. Barry Callebaut’s investment involves upgrading and expanding the factory’s existing infrastructure, installing a new state-of-the-art chocolate production line, and the deployment of an integrated management system to enhance automated production. In addition, the company will employ around 50 people at the site, including GKC Foods' existing employees, who will transfer to Barry Callebaut upon completion of the transaction. "We strongly believe in the growth opportunities of the Australian and New Zealand chocolate confectionery markets. We already have the highest quality products today and we will further grow our competitive advantage through the acquisition of, and investment in, the best-in-class GKC Foods manufacturing facility in Australia," said Ben De Schryver, President of Barry Callebaut in Asia Pacific. "I am very proud of the great chocolate business we have built from scratch over the past 35 years. Our agreement with Barry Callebaut will ensure the successful future of GKC Foods and our team as part of a large, international, group. We really appreciate the business principles and the team spirit on which Barry Callebaut is based," added John Borell, Managing Director of GKC Foods. The transaction is subject to regulatory approval and other closing conditions. Expected completion is before the end of this calendar year. The parties have agreed not to disclose any financial details of the transaction.
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Uncle Joe's Mint Balls launch Big Daddy jars in time for Father's Day
26 May 2020Uncle Joe’s Mint Balls have launched new Big Daddy jars in time for Father’s Day. The 1.4KG jars cost £14, making them the perfect present on June 21 or at any other time, and are available at https://uncle-joes.com/products/uncle-joes-mint-balls/ Bosses at Wigan-based William Santus and Co Ltd, which produces the Uncle Joe’s Mint Balls, said the Big Daddy jars added to their wide range of gift ideas, all of which are dispatched the day after being ordered. John Winnard MBE, Joint Managing Director of Uncle Joe’s, said: “We get a large number of orders at this time of year from people wanting to treat their dads. “The Big Daddy jars have been launched in response to requests for a bumper supply, so people can treat their fathers to something extra special. We now have a full range of Uncle Joe’s Mint Balls products to suit the largest of appetites or the smallest of pocket money budgets.” William Santus and Co Ltd is a privately-owned traditional sweet company that was established in 1898 and the ownership has been passed down through the family generations. Joint Managing Directors John and Antony Winnard are the great, great nephews of the company’s founder, William Santus, The Mint Balls are still manufactured using the same traditional methods as when Mrs Santus originally made the sweets in her kitchen in 1898. For more information on Uncle Joe’s Mint Balls and other products in the range, including a video of the production process: www.uncle-joes.com
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