Asia Food & Beverages Report (May/June 2021 issue)
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Asia's first comprehensive food & beverage report
www.asiafoodbeverages.com May / June 2021
TM
MCI (P) 028/09/2020
ASIA
FUNCTIONAL FOOD/BEVERAGES
COVID-19 RAISE CONSUMER
CONCERNS ON HEALTH LEADING
TO HUGE OPPORTUNITIES FOR
FUNCTIONAL FOOD & BEVERAGES
Chart 1.0: Proportion of Asia Pacific consumers who seek fortified/functional food and
beverages against those who seek supplements in the last month
Proportion of consumers who seek
fortified/functional food and drink more
frequently in the last month
Proportion of consumers who seek
supplements to boost their immune health
more frequently in the last month
According to a recent presentation
made by Mike Hughes, Head of Research
& Insight, FMCG Gurus, COVID-19
pandemic has raised consumer concerns
and awareness over their health, which
could translate to huge opportunities for
food and beverage producers to meet
these growing needs.
Mike also highlighted that consumers
prefer functional food and beverages
over nutritional supplements in capsule or
medicinal format, as they want to consume
products that are perceived as natural,
convenient and yet do not compromise
on taste and nutrition. (see Chart 1.0 for
comparison)
46% 44%
Apr-20 May-20 Jul-20 Feb-21
52%
46%
38%
40%
31%
34%
15% 15%
14% 14%
Global Asia-Pacific
Global
Source: FMCG Gurus, April 2020 – February 2021
21%
17% 18% 17%
Asia-Pacific
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Asia Food & Beverages 2
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CONTENTS
TM
1 Market News
8 Investment News
16 Company News
19 Import-Export News
21 Branding & Marketing News
22 Ingredients News
34 New Products
36 Regulations News
38 Packaging & Technology News
47 Distribution News
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3 Asia Food & Beverages
Market News
This opens up questions on what kind of health benefits do
consumers look for in a functional food or drink. FMCG Gurus
has recently done a survey to identify what are the main
health concerns highlighted by Asia-Pacific consumers during
the pandemic, and apparently the top 4 concerns are overall
immunity (65%), overall health (63%), mental well-being (35%),
overall nutrition (32%) and heart health (26%).
With the ongoing lockdowns and ‘social distancing’ restrictions
in many countries, most of the consumers work from home and
maintain a rather sedentary lifestyle, with food stocked up at
home, there is a high likelihood they will also gain weight. Mike
emphasised that consumers are also concerned about their
emotional well-being especially when cooped up at home most
of the time with limited social interactions. Study has shown that
there is a clear link between good mental well-being with good
overall health.
The pandemic has also created a higher level of fear and anxiety
among consumers. It has also led to a change in lifestyles and
food habits in some consumers.
Mike added that the damage to the immune system can often
be self-inflicted with the consumers not realising it. Roughly 44%
of global consumers reported that they have experienced health
problems in the last 12 months that have indirectly impacted
their quality of life. Meanwhile, 30% suffered from an allergy or
intolerance.
The pandemic has also created negative lifestyles and eating
habits. It is not surprising that 23% of global consumers surveyed
described their dietary habits as unhealthy with another 6%
confirmed that they do not do any form of exercises with a similar
number describing themselves as ‘heavy users’ of alcoholic
beverages. Consumers are also concerned on the time spent
indoors ‘snacking’ with their mobile and gaming devices (52%).
In the formulation of functional food and beverage products, it
is important to know what do consumers plan to eat and drink to
improve their health, as well as their target (intended) consumers.
FMCG Guru survey in 2021 found that most of the consumers
who plan to eat and drink healthily in 2021 are looking for natural
sources of nutrition like fruits and vegetables, while food and
beverage products with higher contents of Omega 3, Protein,
Lower Sugar and Higher Calcium will also be popularly sought
after by global and Asia Pacific consumers. (see Chart 2.0)
Chart 2.0: What consumers seek in food and beverage products
as part of their healthy diet in 2021
Increase calcium intake
Increase fiber intake
Increase intake of fortified/functional food and drink
Increase intake of fruit
Increase intake of omega 3
Increase intake of omega 6
Increase intake of vegetables
Increase protein intake
Reduce fat intake
Reduce intake of fizzy drinks
Reduce intake of meat
Reduce salt intake
Reduce sugar intake
Reduce usage of processed and pre-packaged foods
Source: FMCG Gurus, 2021
Global
30%
18%
20%
69%
44%
30%
54%
45%
23%
6%
16%
24%
60%
16%
Asia-Pacific
33%
19%
26%
72%
42%
28%
52%
46%
21%
6%
19%
22%
55%
16%
(The presentation entitled ‘COVID-19 impact on consumers
approach to long-term health’ was made during Vitafoods
Insights Virtual Expo held from 10 to 13 May and organised by
the Informa Group)
GLOBAL
PLANT-BASED MEAT
GLOBAL PLANT-BASED MEAT DEMAND TO GROW TO
US$11.9 BILLION BY 2025
Latest research conducted by BCC Research team in late-2020 showed
that demand for plant-based meat is expected to grow rapidly at a CAGR of
14.5% from US$6 billion in 2020 to US$11.9 billion by 2025.
Interestingly, this report also highlighted that the rate of growth will be lower
if compared to normal circumstances during the forecast period 2020-2025
due to the pandemic which has resulted in lockdowns and disruptions to the
food supply chains. The food services segment, which is an important part
of the plant-based movement is also affected.
BCC estimated that plant-based meat made from soy accounted for 60%
of total plant-based meat sales while those from pea also has a significant
share. According to the report, moderate price, functionality, nutritional
profile as well as wide availability and applicability of pea made it an ideal
source for plant-based meat. (Refer Table 1.0 for detailed breakdown).
An increasing vegan and flexitarian diet across the globe, particularly
in developed countries, as well as consumers hoping to modify their diets
to reduce cholesterol and obesity will push demand for plant-based meat
products.
Source 2019 2020 2025
Soy 3,206.6 3,665.2 7,147.9 14.3
Pea 1,190.6 1,375.6 2,833.3 15.5
Wheat 363.4 412.1 772.4 13.4
Others (quinoa, oats,
beans and nuts)
CAGR%
2020-2025
519.4 592.9 1,146.4 14.1
Total 5,280.0 6,045.8 11,900.0 14.5
Source: BCC Research
Table 1.0: Global Market for Plant-based Meat by
Source 2019 – 2025 (units in US$million)
BCC Research highlighted that key market drivers for the plant-based
meat market includes growing per capita meat consumption due to rising
disposable incomes; rapid advancements in plant-based meat technology
and increasing investments for the commercial development of plant-based
meat.
Other major drivers that AFBR would like to highlight include ‘pricing’ and
‘growing global population’. With better knowledge, higher volume and
state-of-the-art technology, the higher price of plant-based meat will come
down to reach closer to the real meat. In addition, as the world population
is growing to 10 billion by 2050, plant-based meat will be an important part
of the protein diet for the future generation. In the future, to feed a large
population entirely from mainstream livestock/agriculture will no longer be
feasible.
Meanwhile, secondary growth factors for this market include increasing
demand for healthy and high-quality meat, as well as rising demand for
environmentally sustainable meat production.
In terms of product category, the research also showed that the burger
patties segment is expected to grow at a CAGR of 15.2%. Plant-based meat
is very popular for use as burger patties apart from its wide versatility for
use as strips and nuggets, sausages and meatballs amongst others. Plantbased
burger patties will see growing demand in tandem with the growth of
burger chains globally. Meanwhile, meatballs are commonly consumed in
Asian countries like China, Japan, Korea, Thailand and Malaysia. Meatballs
are also among the fastest-growing appetisers in the food service industry.
(Refer Table 2.0 for detailed breakdown)
Table 2.0: Global Market for Plant-based Meat by
Product Categories 2019 – 2025 (units in US$million)
Product 2019 2020 2025
Strips and nuggets 1,518.5 1,745.4 3,498.1 14.9
Burger patties 1,303.0 1,500.4 3,040.4 15.2
Sausages 951.5 1,084.2 2,084.5 14.0
Meatballs 438.1 502.7 999.8 14.7
Others (slices, fillets,
cutlets, slides, fingers
and crumbles)
Source: BCC Research
CAGR%
2020-2025
1,068.9 1,213.1 2,277.2 13.4
Total 5,280.0 6,045.8 11,900.0 14.5
Asia Food & Beverages 4
Market News
BCC has also given a breakdown of the
market by geography with North America being
the dominant market for plant-based meat
followed by Europe and Asia-Pacific region.
Asia Pacific is expected to be the fastest
growing market with a CAGR of 15.8%. China
is expected to dominate with 65% share of the
Asia Pacific market for plant-based meat which
was estimated to reach US$3.06 billion by
2025. (Refer Table 3.0 for detailed breakdown)
(The above findings were extracted from BCC
Research report which utilised both primary
interviews with industry players, and secondary
research from white papers, journals and other
sources in gathering data.)
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Table 3.0: Global Market for Plant-based Meat by
Region from 2019 – 2025 (units in US$million)
Region 2019 2020 2025
CAGR%
2020-2025
North America 1,900.8 2,169.9 4,206.7 14.2
Europe 1,531.2 1,745.1 3,355.8 14.0
Asia-Pacific 1,267.2 1,467.6 3,058.3 15.8
Middle East and
Africa
211.2 239.4 447.4 13.3
South America 369.6 423.8 831.8 14.4
Total 5,280.0 6,045.8 11,900.0 14.5
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Source: BCC Research
POULTRY
MAJOR POULTRY PRODUCERS IN
2020
Chicken or poultry is one of the most popular
meat consumed by the world population as it
is affordable and available in great quantities.
Not only that, almost every part of the chicken
is edible for human consumption.
According to latest data from US Department
of Agriculture (USDA), the US, China and
Brazil are three of the world’s largest poultry
producers in 2020.
The US produced 20.25 million tonnes
followed by China (14.6 million tonnes), Brazil
(13.9 million tonnes) and the European Union
(12.37 million tonnes).
The US has the highest per capita consumption
of chicken at 43.7 kg. The US poultry industry is
consolidated and vertically integrated with the
Top 3 producers accounting for more than 50%
of production in the country.
Other major chicken producers in the world
include Russia, India, Mexico, Thailand, Turkey,
Argentina and Malaysia.
Meanwhile, major exporters of chicken are
Brazil and the US with major destinations being
Mexico, China, Russia and the Middle East.
Table 1.0: Top 10 Chicken
Producers in the world in 2020
Country
Production (in ‘000 tonnes)
US 20,255
China 14,600
Brazil 13,880
EU 12,375
Russia 4,680
India 4,000
Mexico 3,725
Thailand 3,250
Argentina 2,190
Turkey 2,136
Japan 1,765
Others 17,731
Total Production 100,587
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Source: Foreign Agricultural Service/USDA
5 Asia Food & Beverages
Market News
ASEAN
During a recent virtual event Fi Global CONNECT – Regions
in the Spotlight which took place from 12 to 23 April 2021,
Siriporn Chunkao, a Researcher at Thailand Institute Scientific
and Technological Research (InnoFood) highlighted the growing
importance of plant-based proteins in the production of functional
food and beverages in the ASEAN region.
Siriporn showed in her presentation that from 2012 to 2016,
there was a remarkable 440% growth in veganism in this region.
And this growing movement is also contributing to the rise in
consumption for plant-based food and beverages.
She also presented a chart showing the development of plantbased
drinks in Asia by categories from 2016 to 2019. It is clear
that functional beverages made from soy saw greatest number
of launches during the study period followed by almond, coconut
and oats.
Chart 1.0: New Product Launches for Plant-based Drink in Asia
(2016 – 2019)
Source: InnoFood
PLANT-BASED FUNCTIONAL BEVERAGES
GROWING IMPORTANCE OF PLANT-BASED PROTEIN IN
FUNCTIONAL BEVERAGES
According to Siriporn, functional foods and beverages have
3 major functions i.e. as immunity food, mental food and focus
nutrition food and these are targeted for 3 major age groups
namely kids from the age of 8 to 15 years old; working adults
from 18 to 35 years old and seniors aged 55 upwards. For the
kids, product innovation focuses on bone development as well
as immune and brain development whereas for the busy working
adults, products focusing on fortified nutrition that support the
immune function like vitamins, proteins and other minerals are
of paramount importance. For seniors, functional food/beverage
producers focus on new products that prevent muscle loss as
well as those that provide higher protein.
Recent developments also saw the introduction of beverages
with probiotics and prebiotics. One good example is the new
C1000 Vitamin Lemon Lactic Acid Bateria L-137 drink which
combine probiotics with other immune supporting ingredients.
Plant-based functional beverages like Oat Milk, Almond Milk
and Rice Milk have always been considered as a good calcium
and protein alternative to dairy milk. Soy Milk, on the other hand,
has a much older history as a functional beverage in the Asian
region.
Bottled water, once considered as a simple thirst-quenching
drink, has also seen innovations and repositioned as infused
water or as soda water enriched with botanical ingredients.
The development of plant-based beverages with health properties
is still far from maturity, and with the ongoing pandemic, more
producers are ramping up their production to offer beverages
with immune boosting properties.
CHINA
MILK
INFANT MILK POWDER PRODUCERS FACE CHALLENGING
DEMOGRAPHICS AMIDST FURTHER CONSOLIDATION IN
CHINA
China’s milk powder producers are facing a challenging market
due to the country’s declining birthrate. Latest official data
showed that the number of births fell for the 4 th straight year to
12 million in 2020.
Maternal and baby care businesses reported seeing a falling
number of customers to their stores, with a notable impact on
milk powder sales. There were reports on social media that
Honey-lovely store chain operated by Guangzhou-based Lexin
Mother and Baby Products, with over 6,000 branches in China,
had suspended its operations.
There are a large number of infant milk powder players
competing in what is called a stagnant or declining market. As a
result, many producers have resorted to aggressive price cuts to
maintain market share.
With the current uncertain economic times, as well as Chinese
consumers becoming more affluent with busy work-lifestyles,
analysts expect China’s birthrate to continue to plunge. This is
not surprising as similar trend can be seen in more developed
countries in Europe and the US.
To survive in this market, milk producers need to raise their
brand awareness apart from fortifying their products with added
nutrition to attract Chinese mothers who are becoming more
health-conscious. There is also an increasing need to make the
products more traceable by giving more information on sources
and contents in the product packaging.
According to Gordon Yang, Senior Vice President of Corporate
Affairs at Royal FrieslandCampina China, further consolidation
in this sector is likely which will impact on brands ranking below
the Top 10.
Latest market development include the US$2 billion sale
of Reckitt Benckiser’s infant nutrition business which saw
both foreign and domestic infant milk producers competing to
acquire the stake. This shows that the market is becoming more
competitive, as domestic producers are now hoping to penetrate
into the high-end (premium) markets in the 1 st and 2 nd tier cities
like Beijing and Shanghai. On the contrary, foreign infant formula
brands like Nestle are accelerating their expansion into the 3 rd
and 4 th tier cities, while taking advantage of the online sales
channels (e-commerce).
Since the baby milk scandal affecting domestic producers in
2008, demand for domestic brands has grown particularly from
2017 onwards as domestic players started to invest more on
state-of-the-art technology as well as sprucing up their brand
awareness by giving mothers more information on their products’
contents and traceability.
Euromonitor estimated that the market for China infant formula
milk is nearly US$32 billion accounting for almost 50% of the
global market. Amazingly, within quite a relatively short period
of time, domestic brands’ shares have skyrocketed from 30%
in 2013 to 60% in 2020. Even in terms of pricing, Ministry of
Commerce data showed that the average retail price of domestic
infant formula brands is Rmb 209 (US$32.82) per kg which is
22% lower than foreign brands. In 2011, the gap was 39%.
The success of domestic infant milk producers could be
attributed to their successful penetration in the 3 rd and 4 th tier
cities where birth rate is still comparatively high compared to the
major cities in China.
Asia Food & Beverages 6
Market News
CHEESE
CHINA’S CHEESE MARKET TO REACH
ALMOST US$2 BILLION BY 2025
With the growing popularity of cheese
among Chinese consumers whom
increasingly view it as a nutritious snack
food, GlobalData projected this market to
grow rapidly from US$1.06 billion in 2020
to US$1.96 billion by 2025.
Cheese is a natural source of calcium
and protein, and these 2 nutrients are
viewed as important for a child’s height
and muscle growth. In fact, most cheese
products that are aimed at children come
with high calcium and protein tagging
and in a stick-shape or even on a stick
(like an ice lolly) for easier child-friendly
consumption.
China has a huge growth potential as
its average cheese consumption is still
relatively low compared to neighbouring
countries like Japan and South Korea.
Latest data from OECD showed that
China per capita consumption of cheese
is 0.30kg, far lower than Japan’s 2.35kg.
Demand for cheese in China is also
growing rapidly for institutional and food
services, with the rapid growth of fast food
chains serving pizzas and burgers with
cheese as an important component.
GlobalData research showed that in the
past few years, demand for cheese has
accelerated in China and this translates to
good news for producers of cheese and
related products.
WEBINARS ON-DEMAND
Watch Webinars post-video
recordings at
www.asiafoodbeverages.com
In May 2021, AFBR has launched our own
webinar/web events page on our website
where you can watch post-webinar video
recordings directly by a few click of the
buttons, or via registering if required by the
organisers.
With the current pandemic which limits
business travels as well as exhibitions,
AFBR aims to provide readers with as much
information relating to the food and beverage
industry, by posting past, current and future
webinars/web events on our website landing
page.
Past webinar topics that you can watch and
now available online include those relating
to plant-based meat, real meat, chocolate
confectionery, dairy, sustainability, probiotics etc.
You can also register for the upcoming HPP
Innovation Week organised by Hiperbaric.
This event on High Pressure Processing
(HPP) Technology will take place from 14
to 18 June 2021. The online conference
will bring together manufacturers, retailers,
food service and packaging companies,
regulatory, academic leaders and others in
the HPP industry to discuss the latest trends
and innovations.
To watch or register for the webinars, go to
our homepage at www.asiafoodbeverages.
com
If you would like to share your web events
or webinars to the business community in
the F&B industry, please feel free to send us
an email at info@asiafoodbeverages.com
7 Asia Food & Beverages
Investment News
Investment News
GLOBAL
Asia Food & Beverages 8
HONEY ALTERNATIVE/SUBSTITUTE
Vegan Honey start-up secures
funding prior to commercial launch
New US start-up MeliBio has found a way to
produce honey without the need for bees.
It has secured pre-seed funding from a group
of investors ahead of its full commercial launch
in 2022.
MeliBio was established in 2020 in California
by Aaron Schaller and Darko Mandich. Its
honey alternative was developed using a
proprietary technology based on ‘synthetic
biology, precision fermentation, and plant
science that replaces honeybees as a medium
for honey production.’
MeliBio aims for a soft launch at the end of
the year to supply foodservice customers with
honey as a base ingredient before a full roll out
in the 1st half of 2022.
MeliBio is part of an accelerator programme
run by Big Idea Ventures (BIV), an alternativeprotein
venture fund with offices in New York,
Paris and Singapore which contributed to the
US$850,000 pre-seed round. BIV recently
secured backing from France’s Bel Group,
adding to Bühler, Singapore’s state venturecapital
fund Temasek and US meat giant
Tyson Foods. Others joining the MeliBio round
include global venture fund Joyance Partners,
New York-based peer 18.ventures, Australian
accelerator Sparklabs Cultiv8 and Sustainable
Food Ventures amongst others.
MeliBio CEO Mandich said, “We are thrilled
to have support from the investors who believe
in the world our company wants to create. That
world is the place where the most delicious and
nutritious food is accessible to everyone, but
not at the expense of the sustainability of our
planet.”
Andrew Ive, Founder and a managing partner
of BIV said, “MeliBio has the real potential to
change not just the honey category but the
whole sweetener and skincare industries with a
new and sustainable way to create real honey
without the bees. MeliBio has created the first
truly vegan honey.”
The global honey market was valued at US$9
billion. Currently, the industry entirely relies on
honeybees and faces many issues related to
sustainability and its negative impact on bee
biodiversity.
SPICES/SEASONINGS
Olam Food Ingredients acquires
major spice supplier
OLAM Food Ingredients (OFI), a unit
of Singapore-listed agri-food giant Olam
International, is set to see its global business
expand with the recent acquisition of US
private-label spice supplier Olde Thompson for
US$950 million.
A Shekhar, OFI’s Chief Executive, said that the
acquisition will ‘dramatically expand’ the group’s
private label solutions in the spices segment.
The private label business makes products for
sale under another company’s brand.
This part of OFI is relatively small compared to
the units dealing in coffee and nuts. Mr Shekhar
said the additional scale could give the spices
segment incremental margin improvements,
although complex and fragmented supply
chains and the relative price inelasticity of
spices already means it commands one of the
higher margins among the OFI units.
OFI currently supplies raw materials in bulk
to retail packers, including to Olde Thompson.
The packers then formulate, blend and
create retail products for customers. With the
acquisition, Olam will move further downstream
into dry spices, blends and seasonings in retail
packs with access to the best retailers in North
America, a huge market.
Olde Thompson will create a substantive
growth platform for OFI to provide similar
sustainable and innovative retail solutions
across its other products. OFI added that the
acquisition will build on its recent 2 acquisitions
in the North American spices sector - the
US-based chilli pepper business of Mizkan
America, and the onion ingredients business of
Cascade Specialties.
OFI currently accounts for 40% of Olde
Thompson’s raw material procurements.
Following the acquisition, Mr Shekhar believes
this could double. This will also result in lower
operational costs. For instance, the group could
blend spices on-site at lower cost countries
such as Vietnam, but pack them at Olde
Thompson sites.
OFI is also looking at cross-selling across
other business segments as well. For example,
turmeric can be blended with coffee and dairy
to produce turmeric lattes.
In addition, OFI will also be able to offer
spice-added solutions such as pasta sauces or
seasonings, though these may require different
manufacturing or packing capabilities.
Shekar added, “Olde Thompson’s capacity,
systems and customer knowledge will enable
us to create these solutions far more quickly
than what we could have done on our own.”
LAB GROWN MEAT SUBSTITUTE
Eat Just raise largest funding for
Cell-based Meat
US-based Eat Just Inc., an alternative protein
startup, has recently raised US$170 million
funding for Good Meat, its cell-grown meat
division.
The funding represents the largest single
round in history for that mode of meat
production, the company said. It comes after
Singapore became the first country to grant
regulatory approval to Good Meat to sell cellgrown
meat.
To date, Eat Just and its subsidiaries have
raised US$820 million.
Eat Just will use the fund to ramp up production
capacity and pursue scalability, which has long
been the critical unanswered question for the
sector’s long-term growth. In recent months,
the company has been in hiring mode and
expanding its technology and manufacturing
infrastructure for distribution in Singapore
and to prepare for eventual entry into the US
market.
Eat Just co-founder and CEO Josh Tetrick
hopes to get regulatory approval for Good
Meat’s main product, Good Chicken in the US
market by the end of 2021. It plans to scale
production with multimillion-dollar investments
in US and Singapore facilities, while evaluating
partnerships and acquisition opportunities
within the alternative protein sector.
Tetrick said, “Eat without killing animals will
replace conventional meat at some point in our
lifetimes. The faster we make that happen, the
healthier our planet will be.”
SINGAPORE
PLANT-BASED PROTEIN
ChickP to expand in APAC with new
office in Singapore
ChickP Protein, Ltd. is expanding into Asia
Pacific with the launch of a new office in
Singapore. The strategic move is in response
to the rapidly growing demand for plant-based
products in the region, with Singapore being
the main centre of development for this new
segment.
The new subsidiary will bring the start-up
closer to its Asian customers, and it has also
appointed Moy Teo as the company’s Business
Development Director for Asia. With 20 years
hands-on experience in the food ingredient
space within the APAC region, Moy joins the
ChickP team to lead its development in Asia
with its patented and highly functional chickpea
isolate that boasts a 90% protein content. This
move follows the acquisition of her distribution
business by a group in the Netherlands. Moy
said, “Chickpea is a well-known and highly
venerated crop in Asia. The region makes
up more than 85% of chickpea consumption
globally. ChickP’s 90% chickpea isolate has
unique functional and organoleptic qualities
making it applicable for a full spectrum of food
and beverage formulations.”
ChickP experienced a significant jump in
demand for its ChickP protein in the Asia Pacific
region. The new local office will include a
warehouse to alleviate the logistical bottlenecks
experienced throughout the pandemic era that
slowed supplies to its APAC-based customers
in 20 countries.
Itay Dana, VP of Sales and Business
Development of ChickP said, “Asia is an
important market for ChickP; we already partner
with local food companies to advance plantbased
innovations. This move to Singapore
is part of ChickP’s global extension beyond
the joint market development agreement with
Socius Ingredients, Inc. in the US. We also
signed a contract with a distributor in South
Africa, with the next step in the European
market.”
PLANT-BASED MEAT
SingCell to license ‘plant-based’
technology from National University
of Singapore
Eat Beyond Global Holdings Inc. (Eat Beyond),
an investment firm focused on the plant-based
and alternative food sector, recently announced
that its portfolio company SingCell Tx Pte Ltd
(SingCell) has entered into a technology
development agreement with the National
University of Singapore (NUS) to evaluate and
license its plant-based edible microcarriers
technology.
According to Karolis Rosickas, CEO of
SingCell, “The initial performance of these
microcarriers in terms of cell attachment
and proliferation is very promising and could
solve the cost and scalability issues in the
cultured meat industry. This technology is very
complementary to SingCell’s existing 3D cell
culture technology, and soon we will be able
to offer a more comprehensive bioprocessing
scale-up solution to our clients.”
SingCell operates as a contract development
and manufacturing organisation (CDMO),
offering its proprietary platform to 3rd party
alternative meat companies, which provides
scalable processes for cultured meat
manufacturing. SingCell has a rapidly growing
pipeline of potential projects.
Eat Beyond CEO Patrick Morris said, “SingCell
is focused on improving the feasibility of the
cultured meat industry by focusing purely on
the cost and scalability of the technology,” said
Eat Beyond CEO Patrick Morris. “The company
is also located in Singapore, which is truly
the epicenter of this industry and was the first
jurisdiction globally to approve cell based meat
for consumption.”
The Singapore government has placed a
major focus on innovation that will drive food
security and make the nation less dependent
on foreign suppliers. SingCell is well positioned
to leverage these programs to develop its
technology and manufacturing infrastructure in
Singapore.
PLANT-BASED MILK
Oatly to build 1 st production facility
in Asia in Singapore
Swedish dairy-free producer of oat milk
beverages, Oatly is setting up its first
manufacturing facility in Asia in Singapore,
through a partnership with Yeo Hiap Seng, a
leading beverage firm in the region.
Both partners will invest a combined US$30
million to build a plant in Sembawang, in the
northern part of Singapore, to manufacture
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9 Asia Food & Beverages
Investment News
Oatly’s plant-based oat-milk drinks for export
to Asian market including to the huge China
market.
The project is supported by Singapore’s
Economic Development Board (EDB).
The new facility will have an annual capacity
of 60 million litres of oat milk. Production is
slated to commence in 2 nd half of 2021 with
oats sourced from Sweden.
Plant-based dairy is a growing segment and
has raised much interest by consumers who
adopt a vegan or flexitarian diet.
Oatly manufactures a range of oat-based
products such as drinks, yogurts, spreads,
cream, custard and ice cream sold in Europe,
the US, Asia and Australia.
Hay Dairies rejects land
awarded for goat farm due to
‘unmanageable’ costs
Asia Food & Beverages 10
GOAT MILK
Singapore’s one and only Goat Farm and milk
producer, Hay Dairies has turned down a land
plot in Lim Chu Kang after winning a tender
for the land, citing construction costs driven
up by the COVID-19 pandemic and a lease
insufficient to cover the cost of its planned hightech
farm.
In April, the Singapore Food Agency (SFA)
had awarded the 10,000 sq.metre plot of
land to SG Quail for a bid price of S$420,000
(US$315,000) after Hay Dairies withdrew
from the tender. SG Quail is a recently formed
company involved in poultry and hatcheries.
Earlier, Hay Dairies had won the tender with a
bid of S$500,000 (US$375,000).
Hay Dairies’ existing farm, which produces
goat milk from its more than 800 goats, is
located at Lim Chu Kang Lane 4.
Hay Dairies owner, Leon Hay, said that the
pandemic had driven up the construction costs
of 2 new planned farms by 30%. Leon said that
the estimated construction cost for both plots
of land was close to S$30 million (US$22.5
million) and with only a 20-year lease for both
plots of land, the tenure is not long enough to
recover the cost of investment. Leon added that
even with the new government fund to support
local farms in adopting technology, it will not be
sufficient to cover the costs of the planned farm.
The co-funding by the government for goat
farm like Hay Dairies is 50% and up to S$700,000
(US$525,000). In contrast, for vegetable and
green investments, the co-funding under the
Agri-Food Cluster Transformation (Act) Fund is
higher at 70% and up to S$4.5 million (US$3.38
million).
The fund is open for applications later this
year as part of Singapore’s push to increase
farming using modern technology to meet the
country’s ‘30 by 30’ target i.e. to produce 30%
of its food demand by 2030.
Leon will proceed with building the other plot of
land which it tendered, which will be operational
by 2023. Hay Dairies existing farm lease will be
renewed till 2023, just before its eventual shift
to the new farm at Neo Tiew Road.
THAILAND
SEASONINGS
Ebara Foods to set up production,
sales subsidiary in Thailand
Japan’s Ebara Foods Industry Inc. will
establish a production and sales subsidiary in
Thailand in June 2021 to meet growing demand
for Japanese food in the ASEAN region.
Its wholly owned subsidiary, Ebara Singapore
Pte Ltd., will establish Ebara Foods (Thailand)
Co. in Bangkok with capital of Bt 130 million
(US$4.2 million).
The Thai arm will initially sell Ebara products
for industrial use, according to an Ebara
spokesperson. No further information was
provided on when food production will start
locally.
Ebara has chosen Thailand as its new
subsidiary due to its favourable infrastructure
and easy access to other ASEAN markets.
With the new investment, Ebara Foods will
sharply increase its Singapore subsidiary’s
capital from the current S$650,000
(US$489,000) to S$5.85 million (US$4.4
million) in June. Established in 2018, Ebara
Singapore sells seasonings and is engaged in
the trade business.
PLANT-BASED MEAT
Charoen Pokphand Foods Plc (CPF)
unveils ‘Meat Zero’ ambition to go
global
Major pork and poultry producer, Charoen
Pokphand Foods PLC (CPF) has recently
unveiled ‘Meat Zero’, its plant-based meat brand
that it claimed to feel, taste and appear like real
meat. Meat Zero products are affordable and
available as ready-to-cook (RTC) or RTE food
products at 7-Eleven stores and modern retail
channels.
CPF, as one of the leading food processors in
Southeast Asia, has also set a goal to expand
its brand globally with an ambitious aim to be
the top alternative meat brand in Asia by 2022
as well as the world’s Top 3 brand by 2026.
Meat Zero brand will simultaneously penetrate
markets in Asia, Europe and the US taking
advantage of CPF’s worldwide customer base
spanning more than 100 countries.
With R&D efforts over the past 2 years and
working closely with renown experts from
the US, Japan and Taiwan alongside food
scientists at Chulalongkorn University and
Mae Fah Luang University, CPF eventually
discovered the PLANT-TEC innovation that
creates the perfect texture, taste, smell and feel
of real meat.
Prasit Boondoungprasert, CEO of CPF
said, “Meat Zero is as tasty as real meat
and consumers are barely able to tell if they
are eating plants or real meats thanks to the
outstanding achievement of [the] CPF R&D
centre, which has worked closely with the
world’s leading research houses.”
CPF will pursue the path to become a fullfledged
food-tech company that responds to the
food needs of all consumer groups. CPF said
the brand’s products contain both ‘high-fibre
plant-based protein’ and is priced ‘relatively
close’ to real meat.
Consumers can buy RTE Meat Zero products
with affordable prices ranging from Bt 35 to 45
(US$1.12 to $1.44) while uncooked (RTC) meat
products like plant-based chicken nuggets,
minced pork and crispy pork are priced at
Bt 69 (US$2.21). Meat Zero is definitely the
affordable option to consumers who want to
switch to healthier plant-based meat options.
CANNABIS (CBD)
Loxley enters hemp market as
distributor for Terpene flavour and
related products
Loxley Public Co is tapping into the hemp
market after inking deals with NR Instant
Produce PCL and Golden Triangle Health Co
Ltd (GTH) to become their terpene flavour
distributors.
Terpenes are compounds found in plants such
as cannabis that give it distinct aromas and
flavors which can find many applications in both
food and non-food products.
Suroj Lamsam, Loxley’s President and Chief
Executive said that under the agreement, GTH
will be responsible for product procurement,
including terpene flavours and products that
contain terpene flavour as an ingredient.
Loxley’s chemical business will distribute these
products and look to sell them to business-tobusiness
(B2B) firms such as manufacturers
from various industries.
Loxley Trading will begin the distribution of
ready-to-consume goods such as snacks or
skincare products with terpene flavour via its
distribution network across the country in order
to reach consumers.
At the same time, NRF will develop its own
products with terpene flavours, which Loxley
Trading will also help to distribute. The company
is expecting to launch a terpene water product
in the market this year.
To ensure it has a sufficient supply, Julpas
Kruesopon, Founder of Golden Triangle
Health Co, said that NRF, the parent company
of GTH had also formed a joint venture with
True Terpenes from the US in April and start
supplying terpene flavours to customers across
Asia, including Thailand.
True Terpenes is a leading supplier of terpene
and currently offers over 30,000 terpene flavour
formulas that can be used in various type of
food products such as beverages, snacks,
seasoning products, instant noodles as well as
non-food categories like shampoo.
The Thai government has given companies
the approval to use hemp for commercial
purposes at the end of last year. This led to
rising demand for hemp-based products.
Dan Pathomvanich, CEO of NRF said terpene
flavour is a top 5 food trend with global demand
growing at 10% annually. Dan said that if
revenue from terpene flavours in Thailand
reached Bt 100 million (US$3.2 million), the
company will allocate Bt 50 million (US$1.6
million) to set up a new factory to produce
terpene flavour.
His company has a target revenue of Bt 3
billion (US$95.6 million) this year, mostly driven
by products with terpene flavours.
VIETNAM
ANIMAL FEED
ADM acquires animal feed premix
producer in Vietnam
Wisium, part of ADM international feed
premix brand, is expanding in Vietnam with
the acquisition of Golden Farm Production &
Commerce Company Limited (GF). According
to an ADM spokesperson, “Golden Farm
produces a complete range of vitamins and
minerals premixes for swine, poultry, ruminants,
fish, shrimp, frog and pets. Formulations
are standard or customised. There is also a
comprehensive range of natural, nutritional
solutions to improve animal performance.
Combined with the offerings of ADM’s Wisium
brand in Vietnam, producers will gain a complete
offering of macro and micro premix, nutritional
specialties, WEAN UP piglet feed, and sciencebacked
services such as laboratory analysis.
With the acquisition, Wisium also gains
access to GF facility in Long Khanh Dong Nai
which meets international safety and quality
standards.
Wisium range of products were launched in
Vietnam not more than 2 years ago. Franois
Fernandez, Vice President, Wisium Premix and
Services said, “We’ve been expanding Wisium
capabilities around the globe, and we are
excited to continue to invest across Southeast
Asia. Vietnam has the 5 th largest feed market in
the region. It is also one of the world’s top pork
consuming countries.”
ADM now has strong presence in Vietnam
with 5 animal feed production sites namely 2 in
Binh Duong Province, 1 in Ha Nam Province, 1
in Dong Thap Province, and 1 more in Dong Nai
which has just been acquired.
Vietnam is one of the largest market in
ASEAN for the animal husbandry industry, and
is expected to continue to grow and become
more integrated and competitive. The recent
African Swine Fever (ASF) pandemic has
resulted in the sector transitioning to more large
scale farming with better biosecurity measures.
11 Asia Food & Beverages
Investment News
Morinaga Milk to fully acquire Vietnamese dairy firm
SEAFOOD
Vietnam largest shrimp exporter to expand breaded-shrimp
processing plant
Minh Phu Seafood Corporation (MPC), the biggest shrimp exporter in Vietnam,
will invest Dong 360 billion (US$15.52 million) on expanding its breaded-shrimp
processing plant at its subsidiary, Minh Phu Hau Giang Seafood JSC.
The plant expansion has just started in late April and target to be ready for
operation by February 2022. MPC also plans to increase the registered capital
of Minh Phu Hau Giant JSC from Dong 1 trillion (US$43.4 million) to Dong 1.2
trillion (US$52.1 million).
FRUITS/VEGETABLES
3 major investments in the Fruits & Vegetables Segment in
Vietnam
DAIRY
Japan-based Morinaga Milk Industry is looking to expand its business in
Vietnam with the acquisition of local dairy firm, Elovi Vietnam.
Morinaga Milk confirmed that it has acquired 51% stake in Elovi Vietnam in
January and is looking to snap up the rest of the shares by the end of May.
Morinaga Milk exports infant- and toddler-milk products to Vietnam.
Elovi Vietnam, a supplier of dairy beverage and yogurt products, generated net
sales of Dong 608.7 million (US$26.4 million) in 2020.
Morinaga acquired Elovi as it believes the latter possesses strength in
distribution notably to general trade stores or alternatively called as private
stores that accounted for up to 75% of the overall Vietnamese grocery retail
market. Elovi also has consistently achieved an average annual growth of 20%.
Morinaga is investing overseas as it aims to generate at least 15% of its sales
outside Japan by 2028/2029 fiscal year.
From April to May 2021, Vietnam’s fruit and vegetable industry saw 3 major
investments to develop processing plants with a combined production capacity
of 80,000 tonnes per year.
Latest investor in this segment is Louis Holdings JSC which started the
construction of a plant in southern Long An province in early May with a total
investment of Dong 250 billion (US$10.78 million). The plant is expected to
supply 15,000-20,000 tonnes of products, and is expected to bring sales revenue
of up to Dong 1 trillion (US$43 million) annually once operational in July 2021.
Earlier in April, Binh Duong-based Asia Foods Corporation invested Dong 60
billion (US$2.6 million) in a plant with an annual capacity of 8,500 tonnes in
northern Lao Cai province. Its planned production include 4,600 tonnes of canned
pineapples, 1,600 tonnes of concentrated pineapple juice, 1,000 tonnes of sweet
corn, and 250 tonnes of fruit-veggie per year. Asia Foods had already exported
40 tonnes of canned pineapple to Europe prior to the plant inauguration as it
seeks to penetrate deeper into the lucrative Europe, US and Russian markets.
Meanwhile, B’ao Food Company Limited, which is based in the Central
Highlands province of Lam Dong, also kicked off during the same time the
construction of a fruit-veggie-tuber processing plant with an annual capacity of
50,000 tonnes of products.
The fruits and vegetables segment have attracted strong investments over the
past years. From 2017 to 2019, major domestic firms like TH Group, Nafoods
Group JSC, Dong Giao Foodstuff Export JSC (Doveco), Lavifood JSC, and Vina
T&T Import-Export Service Co. Ltd. (Vina T&T) had constructed 8 plants with a
total investment of Dong 6.15 trillion (US$264.5 million) and a combined annual
capacity of 180,000 tonnes. In 2020, Doveco injected Dong 400 billion (US$17.2
million) into another plant in northern Son La province with an annual capacity of
50,000 tonnes. Lavifood also planned to invest Dong 1 trillion (US$43 million) in
a processing complex in Lam Dong province.
Vietnam fruit and vegetable processing sector is expected to fulfil its 2030
target much earlier i.e. to attract investment in 50-60 new facilities and doubling
processing capacity to 2 million tonnes per year by 2021 or 2022 the latest.
In 2020, Vietnam had about 2 million hectares for vegetables and fruits farming,
including more than 1 million hectares of fruit trees that produce over 12 million
tonnes a year, and up to 25 million tonnes if include both vegetables and fruits.
The country currently has about 145 large-scale fruit and vegetable processors
with a total designed capacity of 800,000 tonnes of products a year. The country’s
fruit and vegetable export is expected to grow by 5-10% year on year to US$3.5
billion approximately in 2021.
To speed the development of this industry, the government is also promoting
industry players to change their production methods and improve production
quality in alignment with global sustainable goal. There is also a growing shift
towards organic fruits and vegetables which is forecast to grow at an impressive
9% annually from 2019 to 2024.
Vietnamese and international standard systems/regulations, the EU-Vietnam
Free Trade Agreement (EVFTA) and the Comprehensive and Progressive
Agreement for Trans-Pacific Partnership (CPTPP) show the importance of
environmental standards and regulations in fruit and vegetable processing for
national and international trade chains. Sustainable, ecological, safe and organic
vegetable and fruit production, climate-adaptive production, circular economy
and green economy are becoming global megatrends, as such corporate social
responsibility to the environment is widely recognised as one of the major
production and business standards for enterprises. When domestic enterprises
achieve certifications and further build up their brand images, overseas importers
are willing pay the extra premium to the normal selling prices.
CHINA
MILK
SNACKS/CONFECTIONERY
Ezaki Glico to establish new factory management
unit in Shanghai
Shanghai-based subsidiary of Japanese confectionery firm,
Ezaki Glico Co. will set up a factory management unit in Shanghai
in January 2022.
Shanghai Ezaki Glico Foods Co. will fully own the new company,
which is scheduled to have capital of Rmb 100 million (US$15.6
million), and take over one of its 2 factories located in China’s
most populous city, according to Ezaki Glico.
The planned launch of the new factory management firm is
to speed up the group’s decision-making process and swiftly
addressing safety and quality issues in the Chinese market. Ezaki
Glico further commented that it has no plans however to expand
its production capacity in China.
Shanghai Ezaki Glico Foods was formed in 1995 before the
Osaka-based confectioner added another Chinese subsidiary,
Shanghai Ezaki Glico Nanfeng Foods Co., which has one factory
in 2006.
Ezaki Glico manufactures best-selling products such as Pocky
chocolate-covered biscuit sticks and pretzel-like Pretz snacks as
well as Pejoy chocolate biscuit sticks tailored to markets outside
Japan, at its Shanghai factories.
Nestle invests in Baby Food in China
Nestle has set up a factory for pouched baby-food products in
Laixi, a city in Qingdao, Shandong province in China. It will produce
organic puree products sold in China under its international baby
food brand Gerber. This will be Nestle’s first plant in the Asia
Pacific region to cater for organic baby foods.
A Nestle spokesperson said, “China’s baby food (purees) market
is undergoing rapid growth, with an estimated value of nearly
US$1.5 billion, but the market size is still less than 10% when
compared to the infant formula market.” As such, there is a huge
potential for growth. Nielsen data estimated that the baby food
(puree) market has a CAGR of 20% annually in China.
Nestle has allocated RMB 200 million (US$31 million) on
investment at the Laixi complex from 2020 and 2021. The site
is also where Nestle started manufacturing in 1996 making dairy
products. It now has a new innovation facility up and running
to develop liquid dairy and RTD coffee lines for sale in Greater
China. Nestle will also construct a Product Innovation Center for
its Gerber purees in Qingdao.
Once completed, the new factory will be able to produce 48
million jars of puree a year. At present, all Gerber purees in China
are imported.
The Greater China region is Nestle’s 2 nd largest market globally
by annual sales. In 2020, this region recorded US$6.67 billion in
sales. Nestle has 23 factories in China with a string of R&D and
Innovation Centres spread across the country.
Danone officially exits Mengniu business
BABY FOOD DAIRY
DAIRY
France food and beverage giant, Danone has officially exited
from Mengniu dairy business selling its close to 10% stake for
€1.6 billion (US$1.95 billion). The buyer identity is not revealed
however it was rumored to be state-owned firm COFCO,
Mengniu’s largest shareholder.
The proceeds from the sale will be distributed mostly to
shareholders via a share buyback programme.
Danone will however continue to operate in China to develop its
infant milk production business.
Reckitt to exit Greater China infant formula
business
British consumer goods company, Reckitt Benckiser Group is
exiting mainland China market for its infant formula business.
The group has hired Morgan Stanley to run an auction of infant
formula unit Mead Johnson in Greater China, in a deal that could
fetch over US$2 billion. Potential bidders include Yili, KKR, Carlyle
and Junlebao Dairy amongst others.
According to inside information, Reckitt’s sale of Mead Johnson
China comes after careful consideration of the potential growth
in the market, as China reported its slowest population increase
since the first modern population survey in the 1950s, with birth
rates declining to the levels seen in ageing societies like Japan
and Italy. In addition, Hong Kong border closures during the
pandemic had also impacted Reckitt’s infant formula business.
Reckitt’s Greater China infant formula business represents 6%
of the group sales of US$19.8 billion in 2020.
US-headquartered Mead Johnson, which Reckitt bought for
US$16.6 billion in 2017, owns a range of infant formula brands
including Enfamil, Enfapro and Lactum.
The group exit follows Danone and Fonterra exit from China
dairy market in recent months. There seems to be a series of
investment withdrawals particularly from foreign dairy players in
China, which was once regarded as a land of golden opportunity.
Asia Food & Beverages 12
Investment News
KKR invests in direct-to-consumer
dairy firm
Global investment firm KKR has invested
in Adopt A Cow, a direct-to-consumer dairy
company in China that integrates digital
solutions into its core operations.
Adopt A Cow’s new funding round was co-led
by KKR and DCP Capital.
Established in 2016 by Xu Xiaobo, Adopt A
Cow primarily produces and sells milk, yogurt,
cheese sticks and milk power products in
China. It has a vertically-integrated business
model covering alfalfa growing, dairy farming,
milk processing, and technology-enabled
marketing. Over the past 5 years, Adopt A
Cow has become one of the fastest growing
direct-to-consumer brands in China, and has
accumulated more than 10 million customers.
Adopt A Cow will use the new funding to
accelerate the construction of modernised dairy
farms and smart production factories, bring in
Australian dairy cows and further integrate the
company’s digital operation platform to boost
efficiency and product quality.
KKR will support the company’s business
growth by combining its vast experience in
dairy investment as well as its global industry
knowledge and network of resources.
Karen Zhang, who leads KKR’s technology
strategy in China said, “China’s economic
growth is benefitting from the expansive and
rapid adoption of digital technologies that are
bringing convenience into people everyday
lives. This is creating attractive opportunities
to support the innovative Chinese companies,
like Adopt A Cow, that are transforming their
industries for the digital economy.”
markets.” The plant will also be used to produce Beyond Pork, the company’s first innovation
created specifically for the Chinese market.
It first entered mainland China in April 2020 via partnership with Starbucks China. Beyond Meat
is currently working with other partners like KFC, Pizza Hut, online grocer Hema and supermarket
Metro China amongst others to serve plant-based meat products to mainland Chinese consumers.
In the US, its home market, Beyond Meat has recently announced several major product
expansions which include Beyond Meatballs, Beyond Breakfast Sausage Links, Cookout Classic
and Beyond Sausage. Beyond Meat has also expanded its distribution strength to approximately
28,000 retail outlets across the country.
Beyond Meat aims to expand its offering to global consumers looking for delicious yet nutritious
and sustainable plant-based meat without the use of GMOs or bioengineered ingredients.
Meanwhile, Beyond Meat also aims to open its 1 st self-owned manufacturing facility in Europe in
2021.
OmniPork producer to construct plant in China
HK-based Green Monday Group is planning to open its 2 nd manufacturing plant in China.
The factory will however be its 1 st plant in China to manufacture its OmniPork range of meat
products meant for domestic consumption.
The new site was identified to be in Guangdong and will commence production in the 3 rd quarter
of 2021.
Green Monday launched OmniPork in 2018 and it now sells its products in more than 10 markets
which include Hong Kong, China, Japan, Singapore and Australia. In Thailand, the company has
its current factory.
Green Monday is planning a 3 rd factory in Taiwan however this is not finalised yet.
It is also hoping to penetrate new markets like South Korea, Indonesia and the US in 2021.
Industrial Hemp JV in China
CANNABIS (CBD)
China-based Yunnan Baiyao Group has just
established a joint venture (JV) with Hong Kong
investment holding firm Ban Loong Holdings
to produce industrial hemp, a derivative of the
cannabis plant that can be utilised in making
a variety of products like rope, textiles, paper,
bioplastics, biofuel and health foods.
Ban Loong will take a 51% stake and play a
leading role in the JV, while Kunming-based
Yunnan Baiyao will hold the remaining equity
and play a supporting role, according to the
memorandum of understanding signed by
the 2 parties on 23 April. No further details on
investment were released.
Yunnan Baiyao, whose primary product is the
traditional Chinese medicine of the same name
which is used as a pain reliever and to stop
bleeding, will develop end products containing
cannabinoid and industrial hemp ingredients,
provide marketing support and do its best to
obtain all the necessary licenses and permits.
Yunnan Baiyao already holds a 30% stake in
Ban Loong, which mainly provides short-term
private and corporate loans and is also engaged
in the cooking oil, sugar and cosmetics trade.
PLANT-BASED MEAT
Beyond Meat officially opens its 1 st
plant outside US in China
Beyond Meat has unveiled its 1 st plant-based
meat factory outside the US to accelerate
localised production while making its products
cheaper and more affordable to consumers in
this region.
Beyond Meat has commenced operations in
April 2021 at a plant in the Jiaxing Economic
and Technological Development Zone near
Shanghai. Beyond Meat plant-based meat
products include pork, beef and chicken.
Beyond Meat Founder and CEO Ethan Brown
said, “The opening of our dedicated plantbased
meat facility in China marks a significant
milestone in Beyond Meat ability to effectively
compete in one of the world’s largest meat
13 Asia Food & Beverages
Investment News
Swiss craft beer producer eyeing
huge China market
Asia Food & Beverages 14
BEER
Swiss traditional brewery Appenzeller Bier,
known locally for its specialty beers, is looking
to enter China market amidst the pandemic.
Established since 1886, Brauerei Locher AG,
the company behind Appenzeller Bier, has 6%
share of Swiss beer market and is the country’s
leading independent brewery.
Aurele Meyer, Managing Director of Brauerei
Locher said, “We recognise that China is
recovering very quickly, much faster than we do
here in Europe, so this is a great opportunity
for us that the market is getting better much
quicker than here in Switzerland.”
The brewer participated in China International
Consumer Products Expo in Haikou held from
7-10 May to gain further insights on the huge
market.
Appenzeller Bier is brewed with hops, malt
and spring water from the Alpstein massif
in Switzerland. The brewery also produces
unusual ‘innovative’ varieties such as harvest
moon beer, oakwood barrel beer or rice beer.
According to Meyer, “We have started with
around 6 different types of beers in China and
we would love to launch new products as we do
also in our home market.”
He added, “We also see a lot of opportunities
for our specialties, especially for the nonalcoholic
beers, for example, with apple and
pear juice from the region or for our ginger beer,
which is very well accepted in China. We also
see potential in our craft beer, which you cannot
find in the international market.”
The brewer is planning to sell both online and
in physical stores in China in the future.
The global market for craft beer has an
impressive CAGR of 18.9% from 2020 to 2027
with an estimated market size of US$164.8
billion as of 2020, according to Research and
Markets.
SAUCES/CONDIMENTS
Kraft Heinz to up capacity,
innovations for both Western, Local
Sauces in China market
US-based food conglomerate, Kraft Heinz
Co, is localising innovations and expanding
its product offerings to penetrate China’s
condiment market.
The company, which also owns Chinese
brands Master and Guanghe, has invested
US$100 million in a new factory last year in
Yangjiang, Guangdong province, to boost
capacity for Chinese sauces. The 2 brands,
currently popular only in Guangdong and Fujian
provinces, are slated to go national this year.
Rodrigo Wickbold, President of Kraft Heinz
Asia said that in the next 2 years, the company
is going to transform its portfolio offering a
range of both local and western products.
Meanwhile, the company also plans to boost
investments in e-commerce, especially in infant
foods and cereals, and expects to scale up its
sauces business. Wickbold said that Western
sauces penetration in the country is still low
at 40%. This year, the company is expanding
production capacity for its Western tomato
sauces and ketchups, with new factories
planned in the medium term.
China offers a huge US$40 billion market
for sauces and condiments and is one of
the company’s priority markets as Chinese
consumers seek high quality, healthy food
products especially during the ongoing
pandemic. In-home consumption of sauces,
condiments and spreads grew during the period
as people spent more time at home cooking.
Wickbold relocated to China from Singapore
last year to set up the company’s Asia
headquarters.
Kraft Heinz is building a database of recipes
and plans to tap into the growing demand by
encouraging people to experiment different
types of cooking at home. The company has
launched recipes for Western food, including
videos showing an easier way of using
ingredients found at regular supermarkets.
It has also worked with the food services
(restaurants) on new recipes.
ALTERNATIVE PROTEINS
Belgium investment group seeks
to invest in high-potential China
ventures
Verlinvest, a Belgium-based investment
company backed by the family that controls beer
giant AB InBev, is planning a big push into China
with the aim of building the next generation of
successful brands and entrepreneurs in the
country’s food and beverage (F&B) sector.
Verlinvest is owned by the De Spoelberch
family, one of the 3 Belgian families that
founded Interbrew and AB InBev. It manages
about US$2 billion in funds.
Verlinvest Executive Director Raphael Thiolon
said, “We are very keen to back Chinese
entrepreneurs, helping them build new
successful food and drink brands of tomorrow.”
Verlinvest aims to build on its successful
experience with Swedish-based Oatly, the
world’s largest oat milk producer which has
made tremendous success in China market.
Oatly’s sales in China has contributed to
account for 13% of its global total since it
entered the market in 2018.
Thiolon added, “We are seeing exciting
structural changes with Chinese consumers
increasingly drawn towards healthier nutrition,
cleaner products and natural functionality.
China offers fantastic growth opportunities.”
Verlinvest’s Chinese investments will focus
on services, packaging and alternative protein
companies in the F&B sector.
Verlinvest current investments in China are
relatively small compared with those in other
Asian nations like India, as such it will speed up
its participation in the country.
Verlinvest currently has investments in
Nasdaq-listed 111.com, a Chinese online
pharmacy and health services platform. It also
provides nursing care services in the Yangtze
delta area through a joint venture with China
Resources. The firm has a strong track record
of investing in consumer brands and digital
platforms, such as Vitamin Water, which was
sold to Coca-Cola for more than US$4 billion,
and Lazada, an e-commerce platform in
Southeast Asia that was later sold to Alibaba
Group Holding.
MALAYSIA
Johor seeks investors to develop
Jemaluang Dairy Valley
DAIRY
The southern Malaysian state of Johor will be
developing a new 275 hectare industrial park,
Jemaluang Dairy Valley, in Mersing for the
production of fresh dairy products.
Government-linked company, Johor
Corporation (JCorp), has already been tasked
to identify strategic partners to invest in the
project, which is expected to require a minimum
investment of RM100 million (US$24.2 million),
with infrastructure taking up 70% of the capital.
Johor’s Chief Minister Datuk Hasni Mohammad
hopes the new investment will enable Johor to
come up with its own fresh milk products that
are comparable or better than existing products
in the market such as Farm Fresh, which is a
collaboration between Khazanah Nasional Bhd
and Holstein Milk Company. Hasni also added
that the
investment will also produce 20 new satellite
farms that will give a wider economic impact
beyond Mersing to cover Kota Tinggi and Pasir
Gudang as well.
Dutch Lady engages Royal
HaskoningDHV to build new milk
factory
Dutch Lady Milk Industries Bhd, a subsidiary
of Royal FrieslandCampina, has contracted
Royal HaskoningDHV to develop its new
environmental-friendly and innovative
manufacturing facility in Malaysia.
Royal HaskoningDHV is an international
engineering and project management
consultancy. The company’s scope will
include design, procurement, construction
management, commissioning and start-up of
the facility, as well as assistance in the transfer
from the existing factory to the new state-of-theart
facility at Bandar Enstek in Negri Sembilan.
According to Dutch Lady’s Managing
Director, Tarang Gupta, “Quality, safety, health,
environment and sustainability would be at the
heart of the new factory’s design.”
The new facility will also boost Negri
Sembilan’s economy and competitiveness to
attract foreign investments in the future.
FrieslandCampina, through Dutch Lady, aims
to help Malaysia achieve a fully sustainable
milk supply. Dutch Lady has also established
a strategic partnership with the Veterinary
Services Department to help dairy farmers
enhance the quality and volume of cattle raw
milk. Malaysia aims for 100% self-sufficiency
for fresh milk production by 2025 as part of
the National Dairy Industry Development
programme. From 2010 to 2020, milk production
in Malaysia had grown rapidly from 27 million
litres to 42 million litres.
Dutch Lady had been operating in Malaysia
for 58 years and is well-positioned to be
the conduit between Malaysia and the
Netherlands to facilitate knowledge transfer.
The collaboration will involve Dutch Lady’s
dairy development programme (DDP) and the
Farmer2Farmer (F2F) programme. Dutch Lady
is the first and only dairy company in Malaysia
to actively initiate, lead and develop the DDP.
BAKERY/CONFECTIONERY
SPC Group to use Malaysia as its
production hub for expansion in
ASEAN
South Korean food and confectionery
conglomerate SPC Group is planning to expand
further in Southeast Asia by building a global
production facility in Malaysia.
Apart from launching its popular bakery chain
Paris Baguette in Malaysia, the conglomerate
plans to pursue various businesses in the region
such as supplying raw materials for SPC GFS
Co Ltd, SPC Group’s subsidiary specialising in
food distribution, and launch Samlip General
Food Co Ltd’s local business.
In the past, SPC Group has used Singapore
as its advanced base to enter Southeast Asian
markets such as Vietnam and Cambodia. To
take a step further, the South Korean food and
confectionery maker has chosen Malaysia to
further grow its presence in Southeast Asia.
Malaysia is commonly considered as a hub for
entering the Halal food market, which sells food
products that Muslims can consume and use.
SPC Group hopes to expand its business in
Southeast Asia, its 3rd major market after the
US and China.
PLANT-BASED FOOD
Nestle setup production site for ‘Halal-certified’ plant-based meat products
in Malaysia
As the focus had always been towards Singapore in the past particularly for plant-based
investments, Nestle, one of the world’s largest food manufacturers, has taken a different step by
inaugurating a 6,000 sq.metre ‘Halal’ production site for plant-based burgers, schnitzels, mince and
the likes in Malaysia.
The new RM150 million (US$36.2 million) facility at Shah Alam has the capacity to produce 8,000
tonnes of plant-based food annually and will supply both food services and retail in the Asian region
with the new Harvest Gourmet brand. It is also equipped with state-of-the-art processing machinery
and packing lines. It is expected to be fully operational in early 2022.
Harvest Gourmet has already inked deals to supply global and regional restaurant chains including
Element Fresh in China, KyoChon in Malaysia and Carl’s Jr in Singapore. It will also supply growing
demand in retail, starting in China with Tmall and Hema.
Nestle is also making sure that its local products are designed for the Asian taste and local cuisine
applications such as dumplings, stir fry, braising, katsudon, and more.
Chris Johnson, Nestle CEO for Asia, Oceania and Africa said, “We’re really going ‘beyond the
bun’ to capture local tastes and convince people to try plant-based options. We believe that the
more people embrace plant-based food, the better for them and the planet. That’s why we are at
the forefront of this shift and investing for the future.”
Nestle has invested aggressively into the plant-based space in Asia which includes its 2 production
facilities in Tianjin, China and its Halal-certified plant at Shah Alam, Malaysia.
In addition, Nestle has around 300 R&D scientists, engineers, and product developers dedicated
to the research and development of plant-based products. To adapt the products to Asian consumer
needs, the company leverages its R&D centers in Singapore, Beijing, China, and India using
regionally sourced ingredients and local recipes to develop great-tasting yet nutritious products.
Nestle is hoping to lead what it called a ‘quiet food revolution’ in Asia in which
more and more Asians are choosing plant-based options for a healthier lifestyle with
less impact on the planet. A recent survey by GlobalData showed that over 40% of
respondents in countries across the Asia and Oceania region said they were shifting
towards more plant-based food. Also 11% are now opting for a purely vegetarian or
vegan diet, while a third of the respondents said that they are cutting down on their
meat consumption by going into a ‘flexitarian’ diet.
INDONESIA
Investment News
HALAL FOOD
Indonesia to accelerate
development of Halal Industrial
Estates
With the booming global Halal food
market, the Indonesia government hopes to
quickly capitalise on this by accelerating its
development of Halal industrial estates (KIH),
including the one established in the Cikande
Modern Industrial Estate in Serang district,
Banten.
Indonesia’s Industry Minister Agus Gumiwang
Kartasasmita said the KIH ‘Halal Modern Valley’
which is being established in the Cikande
Modern Industrial Estate, has been designed
with systems and facilities to help develop
the industry that produces Halal products in
accordance with Islamic principles. It is also
the first integrated zone and the largest in
Indonesia, covering 500 hectares area which
include facilities for integrated industrial
processes, an R&D center, food technology
polytechnic, Halal quality management system,
sharia funding institution, port, and customs
facilities amongst others.
The KIH is developed by PT Modern Industrial
Estate over 5 years in three stages started from
late 2019 and once completed in 2024, will be
Indonesia’s international Halal hub.
KIH is working closely with the Halal Product
Assurance Organizing Agency (BPJPH) and
the Assessment Institute for Food, Drug and
Cosmetics of the Indonesian Ulema Council
(LPPOM-MUI) to develop and design Halal
industry integration at the estate.
Cikande Modern Industrial Estate has also
signed an agreement on establishing a global
halal network with Cordoba Halal Park, Spain;
Iskandar Halal Park, Johor, Malaysia; and,
the Penang International Halal Hub Penang,
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15 Asia Food & Beverages
Investment News
Malaysia. It has also prepared an e-commerce platform for the ecosystem at
the Halal Modern Valley, in cooperation with the largest Muslim organisation
Nahdlatul Ulama (NU) and the Indonesian Food and Beverage Association
(GAPMMI).
Apart from the KIH in Cikande, Indonesia is also developing 2 other Halal
industrial estates namely Safe n Lock Halal Industrial Park in Sidoarjo, East
Java and Bintan Inti Halal Hub in Bintan.
Nestle to invest US$220 million on a beverage plant in
Indonesia
AUSTRALASIA
Asahi acquires Allpress Coffee
DRINKS DAIRY
Nestle is investing US$220 million to construct a new Nestle Bandaraya factory
on a 20 hectare site near Batang Industrial Park in Central Java.
The factory will produce Bear Brand liquid milk and RTD beverages like
Milo and Nescafe to fulfil growing domestic demand. The state-of-the-art
‘environmentally-friendly’ factory will be operational in 2023.
With the construction of the new factory, the company has signed a
memorandum of understanding (MoU) with the regional government of Batang
to develop a partnership with prospective dairy farmers and farmer groups to
source additional raw materials for production, as well as set up a dairy farm
in Batang.
Ganesan Ampalavanar, Market Head of Nestle Indonesia said, “Despite
the COVID-19 pandemic, we are optimistic about the growth opportunities in
Indonesia. Our decision to invest in this new factory and to expand our capacity
is a demonstration of Nestle’s long-term commitment to Indonesia. We aim to
increase employment, to utilise local raw materials and to produce high-quality,
nutritious food and beverage products that are safe and tasty for our consumers.”
COFFEE
Australia’s leading beverage company, Asahi Beverages has acquired
Allpress, the speciality coffee company with presence in the UK, Australasia,
Japan and Singapore.
Allpress was established in 1989 by Michael Allpress in New Zealand (NZ) and
sells more than 1,500 tonnes of coffee beans annually worldwide to boutique
cafes and restaurants. Allpress has also recently launched speciality iced coffee
and cold coffee shot products and operates Underground Coffee, apart from its
online sales business.
Asahi Beverages Group CEO Robert Iervasi said, “We’re thrilled to extend
our portfolio of brands into the large and complementary coffee category, which
will also help us meet more of our customers’ needs whether they be cafes,
restaurants, pubs or retailer. This acquisition consolidates our position as the
multi-beverage provider of choice for customers and consumers.”
The acquisition of Allpress marks Asahi’s entry into Australia’s A$1 billion
(US$773 million) fresh coffee market as it expands its portfolio to meet growing
consumer needs while strengthening its offering to cafes, restaurants, licensed
venues and grocery stores.
Asahi Beverages operates across Australia and New Zealand with 3 divisions
namely Asahi Lifestyle Beverages (non-alcohol in Australia), Carlton & United
Breweries (alcohol in Australia) and Asahi Beverages NZ (alcohol and nonalcohol
in NZ). It has manufacturing plants in all Australian states and in New
Zealand. Asahi Beverages makes and distributes some of Australia’s most
popular beverages which include non-alcoholic brands such as Schweppes,
Solo, Cottee’s, Cool Ridge water and Spring Valley and Charlie’s juices. It also
manufactures and distributes under licence Pepsi, Mountain Dew, Sunkist,
Gatorade, Lipton Iced Tea and Kombucha. It also carries a wide range of
alcoholic brands from Asahi Super Dry, Carlton Draught and Victoria Bitter
amongst others.
Allpress has a roast coffee portfolio of around 10 proprietary blends with its
flagship Allpress Espresso Blend and A.R.T Espresso Roast comprising over
80% of sales.
MILK
Chinese dairy firm to invest in Camel Milk farming in
Australia
Hong Kong-based dairy producer, Ausnutria has been given approval to operate
a camel milk farm at Midland Highway West of Shepparton near Victoria.
Ausnutria purchased the 296 hectare Girgarre East property last year and plan
to eventually milk up to 300 camels. It also hopes to build a processing plant
including a small spray dryer at the site.
Ausnutria entered Australia market in 2016 with the acquisition of Nutrition
Care Pharmaceuticals, Australian Dairy Park and OzFarm. The OzFarm label
markets nutritional milk powders while Australian Dairy Park manufactures
infant formula.
In 2020, the group recorded sales revenue of A$1.5 billion (US$1.16 billion)
representing an impressive 18.6% growth from 2019.
Company News
GLOBAL
FOOD (GENERAL)
Unilever optimistic of meeting sales target this
year all thanks to China, Home Cooking
Unilever, being highly optimistic, has recently announced a Euro
3 billion (US$3.6 billion) share buyback as it is confident of hitting
its sales targets this year, all thanks to rising demand from China
and home cooking.
Unilever joined its major counterparts Nestle and P&G in reporting
strong sales for food and cleaning products amidst the pandemic.
In the 1 st quarter 2021, Unilever reported 5.7% growth in sales,
and it expects further growth for the rest of the year as the
company is also reviewing its product prices with the rise in raw
material prices (inflation).
It was estimated that 60% of its sales revenue came from
emerging markets which saw its sales grew 9.4%. Markets like
China and India grew at double-digits during the review period.
In China particularly there is a strong return of sales to cafes and
restaurants.
Unilever’s food and refreshments business whose brands include
Hellmann’s mayonnaise and Knorr soups, jumped 9.8% in the
quarter, helped by strong demand for home consumption in North
America and Europe.
Although there is a surge of infections sweeping India, one of
its key market, the group has not seen any material impact on its
business so far.
Unilever expects further growth going into the 2 nd quarter 2021.
Unilever is also focusing on high-growth categories such as plantbased
foods, beauty products and nutritional supplements, and
aim to appeal more to younger consumers. The group’s priority
now is to grow existing businesses, rather than make acquisitions.
ASIA
Cocoa Association of Asia to postpone
conference to 2022
ASEAN
COCOA/CHOCOLATES
The Cocoa Association of Asia (CAA) has postponed its CAA
International Conference and Dinner event that is scheduled to
take place from 4 to 5 November 2021 in Singapore due to the
ongoing COVID-19 pandemic.
This major cocoa-related industry event had been postponed
3 times, and CAA assured industry players that it is working in
close partnership with various government agencies in Singapore
to ensure the event will be conducted in a safe environment in the
future.
In 2017, the international conference was held welcoming more
than 500 attendees from 22 countries, across the value chain from
cocoa processors to chocolate producers, trading companies,
service providers and government agencies.
To register interest in the conference, visit cocoaasia.org
SNACKS/CONFECTIONERY
URC to see varying recovery phases in local vs
international markets in 2021
Universal Robina Corp. (URC), the biggest snack food
manufacturer in the Philippines, is expecting to see some
recovery in its financial/sales performance in later part of 2021.
URC President Irwin Lee said that a full recovery is however
expected in 2022, with varying recovery phases experienced
across all countries in which URC has operations in.
URC operations in Thailand and Vietnam have seen early
recovery in the 1st quarter 2021, however in the Philippines, its
home and largest market, it is still in the negative territory due to
the adverse pandemic situation.
Lee said that rising raw material prices are the biggest challenge
to its operations apart from the pandemic.
Despite the challenging year, URC still posted net income of
Pesos 3.2 billion (US$67 million) in the 1st quarter of 2021, up
51% from a year ago. Sales also rose 3% in the same period.
Sales of branded consumer foods to the domestic market
(Philippines) declined by 5%. Nevertheless, this is offset by higher
overseas sales revenue which grew 11% from a year ago.
URC also announced recently that it is planning to introduce
more healthier products like those with lower sodium and lower
sugar into its portfolio.
Asia Food & Beverages 16
17 Asia Food & Beverages
Company News
VIETNAM
MILK
INDONESIA
INSTANT NOODLES
Vinamilk is Top Milk Producer in
Vietnam, and 36 th largest milk
producer globally
According to Nielsen Vietnam, Vinamilk is the
top producer of liquid milk in the Vietnamese
market for 3 consecutive years from February
2018 to January 2021 i.e. during both pre and
post-covid pandemic outbreak period.
In Vietnam, liquid milk and powdered milk
are the 2 largest segments within the domestic
dairy industry. Vinamilk is leading in both these
segments.
Vinamilk boasts of nearly 250 types of products
in its portfolio and these include 50 types of
liquid milk that meet the nutritional needs of its
consumers of varying demographies. Vinamilk
will continue to focus on diversifying its liquid
milk products in order to cater to consumers
of different age groups and segments, while
developing premium products selectively.
Vinamilk also has a robust R&D department
that continues to develop new products -
looking at newer flavors, low sugar, nutritional
aspects as well as better packaging.
Vinamilk will also continue to develop its dairy
farms with world-leading quality standards and
increase farm sizes so as to proactively secure
fresh and nutritious sources with exceptional
quality. This is one factor that boost Vinamilk’s
competitiveness in the market. The 13 farms
managed by Vinamilk can sufficiently produce
more than 1 million litres of raw milk daily.
Vinamilk also boasts a nationwide distribution
network of 240,000 traditional retail outlets and
another 7,800 modern outlets in the country.
Its ecommerce www.giacmosuaviet.com.vn
is also proving to be useful particularly during
the acute COVID-19 outbreak period which
required social distancing measures.
Meanwhile, in global standing, Vietnam has
moved up from 42 nd to 36 th position in the Top
50 Dairy Product Processors in terms of sales
revenue. The global ranking was conducted by
UK-based Plimsoll Publishing Ltd. Vinamilk is
the only dairy producer in ASEAN to enter the
Top 50 ranking. It reported sales revenue of
Dong 59.7 trillion (US$2.6 billion) in 2020.
In recent years, Vinamilk has launched a
series of innovative products from high-grade
Vinamilk Green Farm fresh milk, a product
made of fresh milk sourced at Vinamilks Green
Farm; Vinamilk UHT fresh milk with Bird’s Nest;
and Vinamilk Fruit Love.
Vinamilk has also been among the Top 3 most
chosen fast-moving consumer goods (FMCG)
brand owners in both urban and rural areas for
the 8 th consecutive year, according to Kantar
Worldpanels Asia Brand Footprint 2020.
BEER
Hanoi Beer sees dwindling earnings
to a record 10-year low
Beer is one of the worst-hit category of food
and beverage products during the pandemic.
Hanoi Beer Alcohol and Beverage JSC
(Habeco), the producer of Hanoi Beer is
projecting its sales to be badly affected by the
pandemic this year, and its profits to slump to a
record 10-year low.
Habeco estimated its post-tax profits in 2021
to reach Dong 255 billion (US$11 million), a
59% drop from 2020.
Beer drinking is closely associated with
tourism in Vietnam and as hotels, restaurants
and food services continue to suffer during the
pandemic, so will be the sales of beer.
In addition, the situation is further exacerbated
by rising competition with many brewers in the
country, and the rapid introduction of new beer
products.
Habeco is striving to maintain its leading
position in the northern and central region of
the country.
Indomie now the world’s largest Instant Noodle brand/producer
In 1956, eight years after Japan’s defeat in World War 2 when food was still rationed, entrepreneur
Momofuku Ando invented noodles that lasted for months by steaming them in chicken broth and
then dehydrating them by flash-frying them in oil. This has led to the creation of the first instant
noodle (ramen). Ando also founded Nissin Foods in 1958.
In 1971, Ando started to place his instant noodles in a styrofoam cup which resulted in the ultimate
convenience where a consumer basically just needs to open the lid, add hot water and wait a few
minutes before eating. This led to the birth of the Cup Noodles.
In the following year (1972), the Salim Group, one of Indonesia’s largest conglomerates, launched
the instant noodle brand Indomie. Following the footsteps of its Japanese predecessor, there was
only one flavour launched, ‘Kaldu Ayam’ or Chicken Flavor. Nobody in Indonesia expects Indomie
to be successful as Indonesians were not a wheat or noodle-eating nation, and predominantly a
rice-eating nation. Nevertheless, as the price of instant noodle was affordable, it grew in popularity.
A decade later in 1982, a new flavor/variant ‘Mi Goreng’ (or fried noodle) was launched by
Indomie and this had also become popular throughout Southeast Asia. It was not long before
Indomie launched other flavors in the market. Mi Goreng however remains the country bestseller.
Fast forward, Indonesia is now the 2 nd largest instant noodle consuming nation in the world
just behind China. World Instant Noodles Association showed that Indonesians consumed 12.64
million servings of instant noodles compared to 46.35 million in China/Hong Kong in 2020.
The reason for Indomie success was attributed to the existing demography in Indonesia. There
are millions of Indonesians working under minimum wages and ‘instant noodles’ seemed to be the
only food which they could afford to consume most of the time. Instant noodle consumption was
given a further lift recently during the pandemic as Indonesians were locked down at home thereby
stocking ‘non-perishable’ instant noodles for a convenient meal.
Presently, Indomie has 72% share of the market and it reported impressive sales of US$2.34
billion for the first 9 months of 2020.
Indomie (Indofood) has now eclipsed Ando’s company, Nissin Foods, to become the largest
instant noodle maker in the world and the 10 th most-chosen consumer brand in the world,
according to Brand FootPrint. It has successfully exported to more than 60 countries in Asia, Africa,
the Americas and the Middle East. Indomie also has a manufacturing plant in Nigeria, where Mi
Goreng has become part of the country’s culinary culture. From Nigeria, Indomie is exported to
Europe and the rest of Africa .
Indomie, operated under PT Indofood Sukses Makur, owned by the Salim Group, continues
to innovate by creating a variety of flavors that meet consumers craving. In 2011, when a CNN
survey named Beef Rendang as the most delicious food in the world in 2011, Indomie immediately
responded by releasing instant noodle products with rendang flavour. This strategy of reaching out
to its consumers is the key for Indomie to find a place in the hearts of new generations of noodle
eaters.
MALAYSIA
Leong Hup to see higher revenue from Poultry in 2021
CHINA
POULTRY
Malaysia-based poultry supplier, Leong Hup International Bhd is forecasting strong revenue
growth this year led by rising demand as well as higher prices of poultry in both Malaysia and
Indonesia, its major markets.
Poultry demand is increasing gradually alongside gradual easing of social-distancing measures
across Leong Hup’s regional operations. Other than Malaysia and Indonesia, the poultry company
also has presence in Singapore, Vietnam and Philippines.
During the 1 st quarter 2021, its earnings grew 222.8% from the previous year.
Based on geographical segmentation, Indonesia remains its largest market contributing
RM613.68 million (US$148.2 milion) or 36.6% to Leong Hup’s total revenue in the period. This
is followed by Malaysia with RM443.33 million (US$107 million); Vietnam with RM385.1 million
(US$92.95 million), and Singapore and the Philippines with RM189.87 million (US$45.83 million)
and RM44.57 million (US$10.76 million) respectively.
Leong Hup ED and group CEO Tan Sri Francis Lau Tuang Nguang said the group is on course to
stage a recovery on the back of solid top-line growth, underpinned by continuous volume expansion
and vigilance in cost management. He added, “While COVID-19 and other exogenous factors will
continue to pose uncertainty and pressure on our business, we are encouraged to see traction with
the strategies undertaken since last year.”
The group also has ample liquidity for its operations, and it is in a good position to capture future
opportunities.
NON-CARBONATED DRINKS (GENERAL)
Goldman Sachs predict Nongfu Spring to become a Beverage Giant
Major water bottler and beverage producer, Nongfu Spring might soon emerge as a beverage
giant in China, according to prediction made by Goldman Sachs (GS).
GS expects Nongfu Spring’s sales to grow by 17% CAGR over 2020-2025, boosted by rising
market share of its bottled water business and other beverage segments such as tea.
The company has also started to expand into lower-tier cities by opening stores and setting up
vending machines. Nongfu Spring’s sales should pick up as outdoor activities resume in China
during the summer months.
Presently, Nongfu is China’s largest bottled water producer and is a Top 3 producer for bottled
tea and juice.
Zhong Shanshan, the Founder of Nongfu Spring is recently ranked by Forbes to be the richest
man in China and the world’s 6 th wealthiest with a net worth of US$68.5 billion.
Asia Food & Beverages 18
Import-Export News
GLOBAL
OmniPork gearing up for US launch
PLANT-BASED MEAT
Hong Kong-based Green Monday Group is planning a nationwide launch of its plant-based
pork, OmniPork to the US market in later part of 2021.
Earlier OmniPork debuted at selected restaurants with a full-scale foodservice and retail launch
slated by the end of this year. In the US, OmniPork will find its greatest versatility in Asianinspired
menus instead of western food. There is a strong interest in Asian food and cuisines in
the country.
As such, the foodservice launch will focus on the application of OmniPork in international Asian
restaurants that serve Japanese, Korean, Chinese, Vietnamese and Thai cuisines throughout the
US. According to a company spokesperson, “As OmniPork has a bland flavor, it is versatile and
you can add Thai or Sichuan Spices or other umamis to bring up the flavor of the Asian cuisines.”
For the retail launch, the first SKUs will be pork grounds, strips and luncheon meat, but OmniPork
is also considering to add Ready Meals via contract manufacturing like dumplings and dim sums
at a later stage. Demand for ready meals is growing rapidly in the US due to the pandemic.
VIETNAM
Vinasoy ‘Fami’ soymilk now sold in China and Japan
SOYBEAN MILK
Fami brand of soymilk produced by Vietnam Soya Products Company (Vinasoy) has recently
been launched at supermarkets in China and Japan. Vinasoy is an affiliate of Quang Ngai Sugar
JSC (QNS), a leading sugar producer in Vietnam by market value
In China, Fami soymilk is now sold on 11 leading ecommerce platforms like Tmall, Tmall
Global, 1688, Taobao, JD, Ping Duo Duo and others. Fami has also appeared in 13 supermarket
chains and 1 convenience store chain in China. Fami has already been distributed in the densely
populated East China region with presence at Hema Shanghai supermarket chain, a major
retailer in this region.
In Japan, Vinasoy’ products have been distributed in almost all parts of the country, with
presence in nearly 1,000 stores and supermarkets in 45 out of 47 prefectures.
By successfully exporting and expanding in major Asian markets like China and Japan, Vinasoy
has proven itself to be the No.1 supplier of soybean nutrition in Vietnam. Vinasoy is now all set
to expand its market beyond Vietnam, China and Japan. It is now eyeing to penetrate the US
market by the 3 rd quarter of 2021 followed by South Korea, Middle East and the rest of Asia.
Import-Export News
PHILIPPINES
Philippines’ famous Cavendish
Bananas to reach Australian soil
soon
FRUITS
The Philippines has renewed its push for market
access in Australia for its famous Cavendish
Bananas as well as the termination of the antidumping
measure on its canned pineapples.
The Department of Trade and Industry (DTI)
said the request for market access to Australia
for fresh Cavendish bananas was raised during
high-level ministerial meeting between the 2
countries in late April.
DTI spokesperson commented that “While
the Philippines lauded the first ever shipment
of frozen durian from Davao to Australia, it
reiterated its interest for the grant of market
access by Australia for fresh Cavendish bananas
as top priority, with durian and dragon fruit also
subsequently lined up for consideration.”
During the dialogue, the Philippines also
requested for the removal of the anti-dumping
measure imposed on Philippine canned
pineapples.
Australia said it will work with the Philippine
government and exporters in addressing the
requests. The Australian government also
proposed to work with Philippine agencies
DTI, Department of Budget and Management,
Department of Foreign Affairs, and Anti-Red Tape
Authority in promoting opportunities for stronger
trade and investment ties.
19 Asia Food & Beverages
Import-Export News
SINGAPORE
NutryFarm capitalises on Durian export to reverse
lacklustre business revenue
FRUITS
Singapore-listed NutryFarm International Limited, which previously
engaged entirely in health supplements business, has now re-channeled
its strategy into the lucrative durian business.
Its wholly-owned subsidiary, Global Agricapital Holdings Pte Ltd (GAH),
has recently entered into a memorandum of understanding (MoU) with
EBuy Pte Ltd, to expand its durian business activities in Singapore.
Under the MoU, the brand will import and distribute pre-packaged
durians into Singapore from Malaysia and Thailand on behalf of Global
Agricapital, and from the suppliers of the group. It will ensure consistent
supply, quality and authenticity of the pre-packaged durians from its
suppliers. The first shipment will arrive by 1 June 2021.
Since December 2020, GAH has also reported various agreements to
sell a total of 1,480 containers of fresh durians from Thailand to major
Chinese fruit importers. The total contract value of these agreements
was estimated at approximately Rmb 962 million (US$149.5 million).
As of April 2021, GAH has fulfilled its import purchase agreement with
Beijing-based fruits business Moonda to ship 200 containers of fresh
durians for Rmb 130 million (US$20.2 million).
NutryFarm is seeking shareholders’ approval for a proposed
diversification of the group’s core business with the intention of
expanding the lucrative ‘wholesale trading of fruits (durian)’ business.
Earlier on, NutryFarm has reported that its health supplements
business faced challenging conditions, with marketing activities seriously
impacted by the virus outbreak. It believes that its new fruits business
offers reasonable prospects for profit contribution and positive cash
flow. It intends to seek shareholders’ approval to diversify into the fruits
business as a new core business.
The group posted a net profit of HK$457,000 (US$58,850) compared
with a net loss of HK$5 million (US$644,000) the year before. Sales
revenue came in at HK$41 million (US$5.28 million), about seven times
its HK$5.7 million (US$730,000) topline the previous year. Interestingly,
its newly-formed subsidiary Global Agricapital Holdings (GAH),
established in 2020, contributed HK$27.9 million (US$3.6 million) to its
revenue.
MALAYSIA
Malaysia seeks to grow MSPO Palm oil exports
OILS/FATS
In mid-May, Malaysia Palm Oil Industry created history with its maiden
export of fully Malaysian Sustainable Palm Oil (MSPO)-certified palm
olein to Japan.
Intercontinental Specialty Fats Sdn Bhd exported 100 tonnes of the
MSPO-certified palm olein, which will be used in bakery and food service
products during the Tokyo Olympics Games and Paralympic Games.
Malaysian Palm Oil Certification Council (MPOCC) CEO Mohammad
Hafezh Abdul Rahman said the consignment marked an important
milestone in the development of MSPO-certified products.
He said, “Previously, the MSPO certification did not involve the entire
supply chain and this resulted in buyers not being able to use the MSPO
logo. With the export of the first cargo, the buyer of the palm oil in Japan
will be able to use the MSPO logo. This will further elevate the status of
the MSPO standard and help it further gain international recognition and
acceptance.”
Japan has committed to sourcing edible and non-edible palm oil
products with MSPO and other international certifications as part of
its sustainability sourcing policy. The standards used for the MSPO
certification cover a wide range of principles and criteria that take into
consideration the environmental, social and economic aspects critical for
sustainable oil palm plantation management, palm oil milling and supply
chain.
Hafezh claimed that 88% of palm oil plantations in Malaysia had already
received the MSPO certification. Sustainability issues in the production
of palm oil had been receiving a lot of attention lately as lobbyists apply
pressure to palm oil producing nations to adhere to good sustainability
practices. There have been empirical evidences that nations that have
their palm oil certified for sustainability receive better demand from
buyers.
Malaysia is also now looking at exporting its palm oil to Africa and the
Middle East, to counter the ‘anti palm-oil stance’ and negative publicities
adopted by many European countries in recent years. Both Malaysia
and Indonesia are also taking the EU to court over its decision to ban
palm oil imports to member countries in the coming years.
AUSTRALASIA
MEAT
New Zealand meat exports surpassed $1 billion for the
2 nd time
New Zealand exported red meat and co-products worth over NZ$1.04
billion (US$750 million) during March 2021, according to the latest
statistics from the Meat Industry Association (MIA).
MIA Chief Executive Sirma Karapeeva said this is the 2 nd time that the
country’s monthly meat exports crossed the $1 billion mark. The first time
it happened was in March 2020 at the start of the pandemic.
The strong earnings during pandemic showed global consumer demand
for safe quality meat. China was the major importer for New Zealand
red meat in March, taking 45% of total exports worth NZ$464 million
(US$334.4 million). This was 35% higher than the same period last year.
Overall, China imported 294,410 tonnes of red meat from all countries
in March 2021, with sheepmeat imports increasing by 106% while beef
imports remained steady.
Ms Karapeeva said, “Chinese consumers are seeking attributes such
as high food safety standards, wellness and nutrition from the food
they buy. New Zealand’s excellent reputation means we are in a strong
position to respond to this demand.”
The strong demand from China has been driven by the ongoing impact
of Asian Swine Fever on Chinese pig herds which saw domestic pork
supply reduce by at least 20 million tonnes in 2020.
Meanwhile, New Zealand’s red meat exports for the 1 st quarter of 2021
reached NZ$2.7 billion (US$1.95 billion). This industry represents a vital
part of New Zealand’s economy and to its farmers.
INDONESIA
SPICES/SEASONINGS
Indonesia aims to boost export of Spices to the EU
Indonesia, once regarded as the Land of Spices, is hoping to boost
its export of spices to the European Union (EU), with a new multistakeholder
platform dedicated to helping farmers export high-quality
and sustainable spices.
According to statement from Indonesia’s Coordinating Ministry for
Economic Affairs, the global demand for spices is rising amid the
COVID-19 pandemic as the world is becoming more aware of its healing
properties.
The ministry’s Food and Agribusiness Deputy for Coordination,
Musdhalifah Machmud said that Indonesia recorded US$218 million
in spice exports from January to April 2020, a 19.28% growth from the
same period in 2019. The potential for growth in export is huge as global
spice and seasonings market grew at 2-5% annually to reach US$15.4
billion in 2020.
Musdhalifah said during the virtual presentation of Sustainable Spices
Initiative Indonesia (SSI-I), that major global markets like the EU, the
US and Japan commanded 47% of the total global spice import. She
emphasised that the EU holds the largest share, or 34% of global spice
imports which came mainly from China, India, Indonesia, and Brazil. The
EU is also projected to have a 5-fold increase in spice imports in 2050.
Indonesia however needs to ‘clean up its own backyard’ first as its
principal crop, nutmegs experience difficulty entering the EU as it
exceeds EU’s safety limits for aflatoxin i.e. fungal toxin that contaminates
crops.
Dedi Junaedi, Director of plantation marketing and processing at the
Agriculture Ministry said, “Perhaps this is due to the long trip to the EU.
So during its shipment, it was found the aflatoxin content had exceeded
the limit, even though it was still at a safe level when first dispatched.
This is also possible because of the different testing, sampling methods,
and tools used.”
EU is an important export destination for Indonesia’s nutmeg and
Indonesia hopes the nutmeg safety issue can be resolved through SSI-I
where the private sector, civil society organisations, research institutions
and farmer organisations discussed and work together to accelerate
sustainability in the spices sector and facilitate better market access.
To this end, the multi-stakeholder platform has laid out a 5-year roadmap.
They would also work alongside the government on sustainable spices
policies. SSI-I has formed 3 working groups namely Social Impact
Group which focuses on achieving a 10% increase in farmers’ income;
Sustainable Agriculture Group which discussed challenges faced by
farmers and processors for better and sustainable spice exports. This
includes equipping local farmers with good agricultural practices and
improving local laboratory capabilities. The final working group is Market
Access Group which will find ways to link Indonesian spice producers
with customers abroad.
SSI-I aims to achieve a 3-fold increase in Indonesia’s sustainable spice
exports by 2025.
Asia Food & Beverages 20
Branding &
Marketing News
SINGAPORE
Lambassador ‘Lamb’ Campaign
launched in April
MEAT
In mid-April, Meat & Livestock Australia
(MLA) officially launched its 2021 edition of
Lambassador, a lamb campaign celebrating the
amazing flavours of high quality and nutritious
Australian lamb in Singapore and Southeast
Asia. Wholly owned by MLA as part of its
True Aussie brand, Lambassador strives to
draw greater awareness to the versatility and
accessibility of Australian lamb in the market.
Singaporean celebrity Paul Foster will continue
to lead the campaign as the brand’s official
‘Lambassador’. Foster was first appointed in
May 2020 and will work to break down any
common misconceptions many Singaporeans
associate with the meat. With a personal love
for lamb, Paul wants to raise its profile amongst
consumers and celebrate its ease and use in
many well-known and loved dishes.
Lambassador aims to build a community to
bring together passionate people to share
their knowledge and expertise on True Aussie
lamb with Singapore consumers. As a market
that is discerning and appreciative of good
quality products, Singapore continues to be
an important market for MLA, and through
the Lambassador campaign, it looks forward
to providing a platform to educate and share
recipes and industry knowledge.
Australia’s lamb is proudly free-range, mildtasting
and naturally lean and tender. Its farmers
take a natural approach to sustainable farming,
working alongside the government to be an
industry that aims to be carbon neutral by 2030.
Boasting a reputation of trusted, high-quality
lamb, Australia is known for producing some of
the world’s finest red meat with comprehensive
food safety, quality assurance, and traceability
to ensure that only the best meat gets to your
plate.
Lambassador 2021 officially kicked off in
April with an intimate lamb and wine pairing
session at Burnt Ends restaurant. Hosted by
Lambassador, Paul Foster; Owner & Head
Chef of Burnt Ends, Dave Pynt; and Angharad
Onions, Butcher and Co-Founder at Bootle’s,
guests were guided through a live butchers
demonstration with a full lamb carcass, followed
by a 5-course menu celebrating different cuts of
lamb to showcase the adaptability of the meat
in popular dishes.
Throughout the year, MLA will also share
a series of inspiring and engaging content
through the Lambassador website and
Instagram pages. A new video series is set to
launch later this year, featuring episodes that
celebrate lamb as an easy-to-use, delicious
meat that can also play an important role in
ensuring a healthy and balanced diet.
THAILAND
SUPERFOODS
Nola Superfoods expands
marketing budget and focuses
on offering nutritious ‘Superfoods’
products
The pandemic has certainly done wonders to
some companies’ marketing plans, particularly
those that deal with health foods.
One such company is Thai-based Nola
Superfoods Co. (Nola) which is now aiming to
expand its distribution in the local and export
market for its new Superfood products with a
Bt 30 million (US$956,000) marketing budget.
The company is also seeking to boost its
R&D in the development of nutritious food
products by selecting rare superfoods from
natural sources to meet the growing health
needs of consumers, said Vises Rangsisingpat,
Managing Director of Nola.
Vises said, “For 2021, the company focus is on
events and promotions to educate consumers
on the benefits of superfoods and boost sales
throughout the year. The company also plans
to expand distribution channels to convenience
stores, totalling more than 10,000 outlets in the
country and begin exporting to international
markets like Laos, Myanmar, Indonesia and
China.”
Vises commented that during the past few
years, the superfood market in Thailand and the
world have grown significantly as consumers
become more concerned about their health.
“Consumers nowadays are paying more
attention to their health and are interested in
vitamins, food supplements and health drinks.
They have in-depth knowledge about nutrition
and are more selective with products. The
company therefore needs to develop beneficial
products to appeal to the consumers,” he
added.
In 2020, Nola made its debut in the health
drink market with ‘Nola Acai Berry Essence
Concentrate’. The company managed to sell
700,000 bottles of the new product within 6
months.
Nola has also recently launched a new drink
made from the nectar of the Manuka Tree, which
grows predominantly in southern Australia and
aims to market the drink to younger consumers.
Manuka honey is a ‘free-from’ (clean label) food
rich in nutrients with anti-bacterial and antiviral
properties and helps prevent the flu and
colds. With the growing pandemic concern,
consumers would be more willing to pay a high
price for such nutritious products.
The product is now available at leading
supermarkets, modern trade outlets, health
stores and online channels. Vises added that
Manuka honey also has a natural enzyme called
Methylglyoxal (MGO), which has antibacterial
and antiviral benefits. The prebiotic nature also
helps it to enhance the immune, excretion and
digestive system.
Vises said the company has seen 300%
growth in sales during the past 2 years and is
confident the new Manuka product will receive
good response from consumers.
PHILIPPINES
WATER
Water bottler launches campaign
to support Olympic athletes to win
Gold
As the Tokyo Summer Olympic Games will
soon start from 23 July, water bottler brand in
the Philippines, Summit Natural Drinking Water
owned by Asia Brewery, Inc. has launched
#ThirstForGold campaign, a call to Filipinos to
support the Olympic-bound Filipino athletes.
The drinking water supplier has adopted
a consistent position in supporting Filipino
athletes and the Filipino community in terms of
redefining their limits and making breakthroughs
that pushes Filipinos to claim renowned global
legacy. This year, the Philippines will bring
several athletes whom had won medals in
past Olympics or regional sports events like
Hidilyn Diaz (weight lifter) and Ernest John (EJ)
Obiena (pole vaulter) to compete in the highly
controversial Olympic Games, should this
event proceed as planned.
As a show of support to these local athletes,
Summit has released commemorative Summit
Sports Label Bottles where every Summit
natural drinking water bottle purchased
contributes to the training and hydration of
Filipino athletes.
Branding & Marketing News
Asia Brewery Inc. Marketing Manager Jill
Villanueva said, “We take pride in knowing that
despite the obvious challenges and hardships
today, the sheer Filipino spirit is proven to be
more than capable of breaking through these
barriers and emerging from them stronger than
they were before. HidilynDiaz and EJ Obiena is
a testament to this, and it is with this sentiment
that we take great honor in being a part of our
athletes’ pursuit to greatness.”
She said the Summit brand, which is also the
country’s No.1 mineral and purified packaged
water, has a lot of exciting plans for the sport
community and for Filipinos for the rest of
the year. Summit and the Philippine Olympic
Committee have been jointly supporting each
other for 16 years, while ensuring that Filipino
athletes get proper hydration they need while
in training.
Jill added that over time, Summit has
expanded to be the hydrating partner for every
active Filipinos, giving them the right minerals
and proper hydration they need in their daily
active lives.
This year, Summit Drinking Water continues
to be a part of the Filipino nation in vouching for
gold for the Philippines through its #ThirstFor
Gold campaign.
NON-CARBONATED DRINKS
URC utilises Facebook to develop
successful marketing campaign for
C2 Green Tea beverage
The ongoing pandemic has brought changes
to Filipinos consumption and buying patterns,
with many looking to buy their food products
conveniently in bigger quantities and at more
attractive prices for a longer storage.
Major snacks and confectionery producer
like Universal Robina Corp. (URC) have been
offering variants of their well-loved products that
meet prevailing requirements of consumers.
With the existing series of lockdowns imposed
throughout the past 12 months, getting
consumers to become aware of what on
offerings will be challenging. Fortunately, URC
can utilise many existing modern channels to
reach out to its mostly younger consumers.
URC Chief Marketing Officer Mian David said,
“At URC, we aim to meet consumers where
they are. And since the people we serve are
stuck at home, it made perfect sense to hero
our big packs.”
As many Filipinos are using Facebook, URC
considers it as the perfect platform to inform the
public about its C2 Cool & Clean Litro variant of
green tea beverages. David added, “Facebook
enabled us to offer the right pack, to the right
people, at the right time, at the right place, and
at the right moment.”
For its C2 Cool & Clean Litro, URC’s business
plan called for a nationwide advertising
campaign on Facebook, but it also wanted
to strengthen the brand’s performance in
key regional areas. To this end, Facebook
suggested implanting a pilot project that would
give the C2 Litro video ad a nationwide reach
over a 4-week period. Coupled with this was
the use of Facebook’s location targeting, which
would also double the frequency of the ad
placement in select regional markets.
This strategy has been developed by the
Philippines team at Facebook and has been
implemented first by URC. With calculated risks,
URC decided to go for it. As a brand, URC has
always embraced innovation, and this online
campaign also pushed the company further
along with its ongoing digital transformation.
With insights from Facebook, URC discovered
that this nationwide campaign with additional
focus on specific regions was a successful and
cost-effective way to drive consumers towards
its products. According to the results of the
Brand Lift Study attached to the campaign,
there was a 27% increase in ad recall in the
regional campaign (the areas where ads had
increased frequency), versus that of national-
21 Asia Food & Beverages
Branding & Marketing News
only campaign. Likewise, the regional campaign increased
brand familiarity by 2.3 times, and contributed to a 48% rise
in purchase intent, compared to the national-only campaign.
At the end of the campaign, URC customers are now more
aware that the C2 beverage is easily available for home
consumption and how they can buy it. The success of this
campaign has led to Facebook adopting it as a global case
study of how major brands across the world stand to benefit
from innovative marketing strategies, campaigns, and
solutions.
CHINA
BEER
Budweiser to focus on premium beer offerings
in Greater China
Budweiser Brewing Co APAC will boost its promotion of
premium beer brands including Hoegaarden and Corona and
expand non-beer offerings, as it bet on a rising middle class
which will boost demand for its higher-end products.
During the 1 st quarter 2021, the Hong Kong-listed Asia arm of
Anheuser-Busch InBev reported a 63.7% rise in revenue, with
total volume up 64.6%, driven by strong consumption over the
Lunar New Year holiday and a low base for comparison due to
the COVID-19 outbreak early last year.
Revenue doubled in China from the same period last year
and grew by double digits compared to the first quarter of
2019. Revenue generated from premium brands increased
by high double digits year on year. Jan Craps, Co-Chair and
Chief Executive of Budweiser APAC said, “Premium and super
premium beers continue to be our growth engine.”
Jan said that China’s growing middle class and the
proliferation and needs of different drinking occasions was
driving the company to broaden its product portfolio.
“We know that as a country and as more people get into the
middle class and higher class in terms of disposable income,
the drinking occasions, differences and the needs are getting
more complex, so we need to offer a broader portfolio to fulfill
what the consumer is looking for,” he added.
Last year, the company launched Mike’s Hard Lemonade,
a vodka-based sparkling beverage in China, and tested
Budweiser ME3, a fruity version of its flagship beer.
In China, eateries and bars have been re-opened since the
2nd quarter of 2020, with post-pandemic consumer traffic
recovering strongly.
INDONESIA
State tea company plans to boost safety
standards, quality & quantity of tea products
for the Indonesian market
TEA
Indonesia’s Ministry of State Owned Enterprises has recently
announced that its state tea plantation company based in
West Java-Banten, PT Perkebunan Nusantara VIII (PTPN
VIII), is boosting the domestic tea retail market by promoting
consistency in quality and food safety.
The Head of Subdivision of Corporate Communication and
PKBL PTPN VIII, Venny Octariviani said that the consistency
of food quality and safety is a mainstay of PTPN VIII to win the
trust of domestic consumers.
PTPN VIII is aggressively marketing its 3 trademarks
(brands) for the domestic market namely Walini, Goalpara and
Gunung Mas, each of which has its own market in Indonesia.
Venny said PTPN VIII has a moral responsibility to market tea
products with consistent quality and food safety for its own
Indonesian market.
Global consumers including Indonesians are now
increasingly selective on choosing their tea, particularly when
it is now known as an ingredient with antioxidants and other
health benefits. PTPN VIII is now focusing on improving the
quality, consistency and safety of its tea products.
Meanwhile, the West Java Provincial Government is also
studying the possibility of expanding tea producing area
as currently the southern part of West Java is the main tea
producing region. With growing demand for tea, there might
be a need to expand cultivation areas.
Ingredients News
ASIA
STARCH
Cargill partners Thai starch producer to expand its specialty
tapioca starch offerings for Asian market
Cargill has recently partnered with Starpro, the leading food grade tapioca
starch producer in Thailand, to expand its specialty tapioca starch offerings in
the Asia Pacific region, supporting the product processing requirements of food
manufacturers and meeting the sensory expectations of consumers.
Franck Monmont, Managing Director of Cargill Starches, Sweeteners and
Texturisers Asia said, “Food manufacturers in Asia are faced with the challenge
of meeting rising consumption demand, especially within the convenience and
foodservice categories. As leaders in the modified starches industry, this partnership
with Starpro will allow us to leverage our collective strengths more effectively to
generate greater opportunities for growth, as well as support new innovations and
solutions in the future. Our ambition is to be the partner-of-choice for customers in
the region, by combining deep market and technical knowledge, a robust product
offering and cost optimisation through local manufacturing.”
Johnney Hsueh, Consultant with Starpro added, “Through this cooperation
between Cargill and Starpro, we look forward to promoting the wider use of quality
modified tapioca starch among food manufacturers across the world.”
The agreement will cover a full range of locally manufactured modified tapioca
starches for the food industry across markets in Asia Pacific as well as globally,
excluding Thailand and China. In addition to this high quality tapioca starch range,
Cargill also offers a wide portfolio of starches and starch-based texturising solutions
across different raw materials that provide multi-functional properties to meet the
varied needs of Asian customers’ food processes and cuisines.
Monmont added, “Texture is a critical element in the Asian palate. From instant
noodles to packaged foods and snacks like Chinese sausages, gyozas and
Japanese mochi, as well as beverages like the perennial favorite bubble tea, Asian
consumers are known to seek out textural experience in their foods. As a non-
GMO botanical with unique textural properties such as chewiness, springiness and
a clean taste profile, tapioca starch is well suited to help food manufacturers meet
the product expectations of Asian consumers.”
This new agreement with Starpro is the latest move by Cargill to grow its specialty
starch portfolio in Asia-Pacific, after the announcements of the expansion of a coldwater
swelling starch line at its sweetener plant in Pandaan, Indonesia, as well as
the construction of a modified starch plant in Songyuan, China.
PLANT-BASED FOOD SOLUTIONS
KH Roberts forms partnership with Leistritz to advance
plant-based foods innovations in ASEAN
KH Roberts, a leading creator and provider of aromas and tastes has formed
partnership with Leistritz, a renowned leader in extrusion innovation for
pharmaceutical and food processing, to advance the research and development of
plant-based foods specifically for the Asian palate.
Dr Peter K.C Ong, CEO of KH Roberts said, “We bring together KH Roberts’s
expertise in aromas and tastes with Leistritz’s expertise in process engineering in
this 2nd pilot scale extruder located in KH Roberts. We have been operating the
first pilot scale extruder jointly with a local Singapore university since October 2020
for academic research and educational training on plant-based foods. Innovating
future foods and tastes is at the heart of what we do and we recognise the value
of open collaboration with fellow industry leaders and promising food start-ups to
achieve this. Through our new partnership with Leistritz, KH Roberts is able to
further expand and develop its flavour and masking solutions in plant-based foods.”
As part of KH Roberts’s industry-academic collaborations, Singapore’s first
operational pilot scale twin screw extruder for plant-based foods was commissioned
in September 2020. The extruder is key to producing new innovative alternative
protein foods with authentic meat-like textures to meet the latest consumer
demands. Fully supported by KH Roberts’s expertise in aromas and tastes, the first
pilot scale extruder has been instrumental in advancing academic research and
teaching purposes with the objective of equipping future food technologists with the
knowledge and skill sets of plant-based food technology.
Leistritz Singapore’s General Manager Extrusion, Alf Hofstetter, said “Leistritz
stands for technologically sophisticated products and a high level of innovation.
These 2 pilot scale extruders are amongst the first to be commissioned and
operational in Singapore and Southeast Asia, showcasing our strong expertise
in this technology. This joint development with KH Roberts allows us to further
enhance our food processing and engineering expertise outside of Europe, and
jointly support the fast-developing alternative protein markets in Southeast Asia.”
The KH Roberts-Leistritz collaboration highlights a mutual recognition of the
growing importance of flavours and advanced food processing in the emerging
plant-based foods market. The collaboration will enable KH Roberts to strengthen
its position at the forefront of taste innovation, and develop open collaboration
opportunities with leading global food innovators and promising start-ups.
KH Roberts, established for more than 50 years in Singapore, crafts future flavours
and has good understanding of Asia’s diverse cultures, tastes and preferences.
Leistritz Extrusionstechnik GmbH is an 80-year old company based in Germany
and is a renown manufacturer of twin screws for compounding technology. Leistritz
set up its Singapore operation 25 years ago.
Asia Food & Beverages 22
23 Asia Food & Beverages
Ingredients News
GLOBAL
DAIRY-FREE INGREDIENTS
Chr. Hansen launches VEGA Culture Kit for Dairy-Free Yogurt application
As dairy-free alternatives to yogurt (vegurts) gain popularity worldwide, competition continues to
grow among producers striving to offer consumers tasty, healthy and sustainable products. With
the recent launch of the VEGA Culture Kit designed for optimal results across the full scope of
plant bases, Chr. Hansen aims to enhance its support of plant-based innovation.
The VEGA Culture Kit comprises of customisable starter cultures, probiotics and bioprotective
strains. With its comprehensive kit of solutions, VEGA delivers simplicity with robust performance
while offering producers the flexibility to create customised and differentiated features for their
products in terms of taste, texture, health and sustainability.
Dr. Ross Crittenden, Chr. Hansen’s Senior Director for Commercial Development said, “We are
particularly excited about this launch because it gives us the opportunity to apply our 145-year
legacy of work within the dairy industry to this highly innovative and rapidly growing segment
of the market. We aim to leverage our deep expertise in food fermentation and history of close
collaboration with producers to help the industry elevate the art of fermented plant-based
craftsmanship.”
Dr Ross added that Chr. Hansen’s track record of innovating,
collaborating, and troubleshooting within the yogurt and
fermented milk space has been instrumental in the design of
the VEGA Culture Kit to fit the specific needs of the vegurt
category.
He explained that as the composition of plant bases is more
varied than traditional dairy products, it is particularly important
to utilise cultures expertly selected to meet the performance
demands of dairy-free applications. The VEGA Culture
Kit is simple to use and yet versatile to create differentiated
products to satisfy varied consumer preferences.
In summary, the VEGA Culture Kit offers producers the
following benefits:
Enhanced taste and texture: VEGA offers an exciting new innovation; a choice of starter cultures
that can differentially drive flavor and texture in plant-based yogurts. This allows producers to
optimise for specific product characteristics by selecting the cultures that yield the results they are
after.
Probiotic support: VEGA nu-trish® blends of cultures enable consumers to enjoy the benefits
of the world’s most-researched probiotics, including Chr. Hansen’s Bifidobacterium, BB-12® and
Lactobacillus rhamnosus, LGG®. These cultures have been designed specifically for use in plant
bases to ensure convenient delivery of the correct serving and stability of probiotics, all while
delivering robust performance and clean flavor.
Boosted sustainability credentials: VEGA FreshQ® culture solution supports a longer shelf life
with superior freshness and fewer quality issues through the action of fermentation.
VEGA customers also enjoy hands-on support from Chr. Hansen’s dedicated global team
of plant-based fermentation experts and application laboratories, from ideation to post-launch
troubleshooting. Chr. Hansen also invests in consumer and market research within the industry
to ensure alignment between consumer needs and the features VEGA cultures bring to plantbased
products.
From tailored innovation sessions to concept samples, collaborative research and application
assistance, Chr.Hansen is present to offer support to its customers at every stage of product
development, co-creating delicious vegurts with tastes and textures that can rival those of more
traditional dairy offerings.
VEGA cultures are produced using ingredients that are dairy-free, contain no GMO ingredients
and are free of any animal-derived substances. They are suitable for use in vegetarian, vegan,
Kosher and Halal products.
FUNCTIONAL/NUTRITIONAL INGREDIENT SOLUTIONS
Glanbia Nutritionals latest website offers enhanced user experience
Glanbia Nutritionals has just launched a redesigned website at www.glanbianutritionals.com to
offer an enhanced user experience that quickly connects visitors with the people, ingredients,
services and expertise that can help create next-level nutrition solutions across foods, beverages
and supplements.
Brian Phelan, CEO of Glanbia Nutritionals said, “Glanbia Nutritionals is built to help our customers
innovate for better nutritional, functional and operational performance in their products. Our new
website demonstrates how we can help support our customers to grow their businesses with
unique, high-quality, innovative nutrition solutions, tailored to solve their nutritional and functional
challenges.”
The new website interactive features provide an overview of how Glanbia Nutritionals is “Built
Around You” with a commitment to finding the right solution for each project. Throughout the home
page, users can learn how partnering with Glanbia’s team creates avenues toward successful
consumer products.
As they navigate further through www.glanbianutritionals.com, they will find an open, explorable
site where they can quickly access information on specific ingredients and services, as well as the
company’s full offering of innovative solutions by market. The learning continues in a new, robust
NutriKnowledgeSM Center where visitors can scan through insights, nutrition resources, previously
recorded webinars and more to gain deeper understanding on a number of relevant topics.
Eric Borchardt, Director of Corporate Marketing at Glanbia Nutritionals added, “We wanted to
create a website that provides visitors with the most up-to-date information about the nutrition
solutions they seek — as well as useful tools and insights that build their overall market and
product knowledge. This enhanced site delivers on that promise.”
Special attention has been paid to Glanbia Nutritional’s offerings. The new site reflects all of
Glanbia’s core capabilities including proteins, custom nutrient premixes, cheese, bioactive
ingredients, flavors plant based solutions, micronutrients, and aseptic beverage manufacturing, as
well as Watson Inc. ingredients including bakery ingredients, edible film products and functionally
optimised nutrients.
“As with our live interactions, we look forward
to showing visitors who interact with our new
website how we can help grow their business
through unique, high-quality, innovative
nutrition solutions,” concluded Borchardt.
Glanbia Nutritionals is a US$3.24 billion
nutrition solutions and cheese business with
more than 2,800 employees and international
presence in 19 countries.
Nagase launches dedicated
website for its Food Ingredients
Department
Nagase & Co., Ltd, a Japan-based chemicals
trading firm has recently launched a dedicated
website for its Food Ingredients Department in
late April 2021.
The new website offers a simplified and
systematic search for ingredients by functional
categories or by food applications. In addition,
it also offers latest information such as
online seminars/papers and other business
information.
Nagase handles a wide range of food
ingredients and additives from sweeteners
(trehalose and others) to enzymes,
hydrocolloids, seasonings, shelf life extenders,
preservatives, flavors, functional and nutritional
ingredients amongst others.
The Food Ingredients Department or Division
is just one of its numerous other businesses
from electronics, functional and advanced
materials, mobility, and life and healthcare.
For more information on the new website, visit
https://www.nagase-foods.com/global/
Hologram Sciences develops
advanced vitamin D solution
‘d.velop’ to boost immunity
In the face of growing pandemic challenges,
Hologram Sciences has recently unveiled its
first direct-to-consumer brand, d.velop TM , a
holistic immunity solution with an advanced
vitamin D formula, diagnostic kit, and digital
support.
d.velop helps consumers to build more resilient
immune health in just days or weeks instead
of months. d.velop is made with an exclusive
form of vitamin D, scientifically shown to help
achieve optimal levels three times faster and
three times more effective than conventional
vitamin D supplements.†
“At Hologram, we’re committed to creating
and rapidly scaling products that are backed
by proven science, pioneering technology, and
habit-building,” said Ian Brady, CEO Hologram
Sciences. “We chose to focus our first brand
and product on immunity because we wanted to
give people a tool to feel more confident about
their health as they step back into the world.”
Consumers have a choice of purchasing a
single 30-day supply of d.velop or a 3-month
supply of d.velop vitamin D; but d.velop is more
than just vitamin D delivered to your doorstep.
The d.velop solution also includes access to
the free d.velop app which provides users with
actionable information to help them understand
their immune health more precisely and then
holistically take action to improve their health
and well being. The app also includes access to
live coaching from registered dietitians who are
available to answer questions and provide tips
for staying on course. Consumers choosing the
Asia Food & Beverages 24
Ingredients News
subscription option will also receive a free 2-pack vitamin D test kit
worth US$100, so that they can test their vitamin D levels before
and after d.velop.
In the US, it was estimated that up to 95% of the population
did not get enough vitamin D from food alone.1 Recent research
suggests that vitamin D improves immunity.2 Vitamin D deficiency
has also been shown to be even more of a concern for people
of color3. Reaching sufficient levels of vitamin D in the body can
be challenging due to limited food sources and a person’s direct
exposure to sunlight. Even with an intake of traditional vitamin D
supplements like D3 or fortified food, it can still take several months
to achieve healthy vitamin D levels in the bloodstream, which also
supports bone health, in addition to immunity.
“No two people are the same and that goes for nutrition as
well,” said Melissa Rifkin, MS, RD, CDN. “Understanding how to
increase one’s immunity is one of the biggest challenges people
face and d.velop addresses that challenge in a very personal way.
I’m excited to partner with Hologram to share the importance of
personalised nutrition and holistic health.”
d.velop is just one of many holistic solutions to come from newlyestablished
New York and Boston-based collective, Hologram
Sciences. The company is supported with US$100 million
investment by Royal DSM.
The company plans to release new solutions annually across a
broad range of health conditions. Hologram Sciences is backed
with a US$100 million investment by Royal DSM whose 3,000 plus
North American employees will be the first to receive d.velop to
help ensure staff have healthy immune systems as economies
reopen, travel resumes, and as DSM returns to more normalised
operations at plants, labs, and offices.
For more information, or to purchase d.velop directly, visit
dvelopimmunity.com.
Note: †Clinical studies have shown that d.velopTM can achieve optimal Vitamin
D status (30 ng/mL) on average 3X faster, and is 3X more effective, compared to
the same mcg amount of conventional Vitamin D3. Source: Quesada-Gomez and
Bouillon (2018) Osteoporos. Int. 29, 1697-1711.
1 Reider et al. (2020) Nutrients 12, 1735.
2 Jolliffe et al. (2021) Lancet Diabetes Endorcrinol. 9, 276.
3 Parva et al. (2018). Cureus 10, e2741.
Wacker’s CAVACURMIN® led to high
Tetrahydrocurcumin bioavailability offering
anti-inflammatory, antioxidant properties
A study recently published in the
Journal of Functional Foods showed that
ingestion of the curcumin- cyclodextrin
complex CAVACURMIN® leads to an
increased metabolic bioavailability of
tetrahydrocurcumin. A large portion of
supplemented curcumin is converted into
tetrahydrocurcumin in the body.
This metabolite is credited with antiinflammatory
and antioxidant properties.
CAVACURMIN® is the only formulation on the
market that demonstrably boosts the bioavailability
of both curcumin and tetrahydrocurcumin.
Curcumin, the active compound in turmeric, is a powerful
antioxidant that supports healthy aging and joint health, as has
been demonstrated in various studies. As it is not water-soluble,
curcumin is not readily absorbed in the human bloodstream.
Its bioavailability can be boosted significantly with the aid of
gamma-cyclodextrin. A study published in 2018 showed that the
curcuminoids of Wacker’s cyclodextrin complex CAVACURMIN®
are absorbed around 40 times more efficiently in the body than
those of a standard curcumin extract.
As part of a randomised double-blind study, it has now been
shown that the metabolic bioavailability of tetrahydrocurcumin is
also around 40 times higher following ingestion of CAVACURMIN®
compared to a standard curcumin extract.
Tetrahydrocurcumin is a curcumin metabolite credited with
additional health-promoting properties. The metabolic bioavailability
gives the ratio of the in-vivo production of tetrahydrocurcumin to
the absorbed amount of curcumin. Another finding of the long-term
study is that, after only 4 weeks, daily ingestion of CAVACURMIN®
(approx. 340g curcumin each time) leads to a consistently high
blood concentration of curcumin and tetrahydrocurcumin. This
effect can be measured after 12 weeks as well. The long-term study
furthermore confirmed very high tolerability of CAVACURMIN®.
CAVACURMIN®, a product of Wacker Biosolutions, can be
easily processed and applied in food supplements such as tablets,
capsules and energy bars or functional beverages.
Wacker Biosolutions is a division of the Wacker Chemie AG group
which provides tailored, innovative solutions and products to the lifescience
sector – including pharmaceutical proteins, cyclodextrins
and fermentation-generated cysteine. The division focuses on
developing customised solutions for growth sectors such as food
ingredients, pharmaceutical actives and agrochemicals.
Ÿnsect acquires Protifarm to accelerate its global
expansion in the Insect Proteins space
INSECT PROTEINS
Ÿnsect, the world leader in natural insect protein, has acquired Protifarm, the
global leader in mealworm ingredients for human food applications. Their joint
offering will accelerate manufacturing capabilities with a 3 rd production site,
as the company move to deliver on its long-term strategy to offer a healthy,
sustainable solution to the accelerating consumption of protein.
Following the European Food Safety Authority deeming mealworms safe for
human consumption this January, Ÿnsect is now expanding into the insect
protein ingredients space.
Apart from its existing sites in France, Ÿnsect now expands internationally
with the integration of Protifarm, a Dutch production site located near Ermelo,
east of Amsterdam. This solidifies the company’s position as the world’s largest
insect food and feed player.
Antoine Hubert, Co-Founder and CEO of Ÿnsect said, “Protifarm is a compelling
fit for Ÿnsect, perfectly matching our long-term goals and sustainability values.
Acquiring Protifarm is a strategic next step for us, strengthening Ÿnsect’s
leading position in the global market and allowing us to properly address the
human and pet food markets with complementary products.”
The state-of-the-art vertical farm in the Netherlands produces more than 1,000
metric tonnes of food ingredients annually. With 2 Ÿnsect production sites in
operation and one under construction, the result is an increase in volume and
accelerated production and delivery to customers.
Ÿnsect and Protifarm already share a lot of common ground, from the way they
approach science and technology on mealworms, to quality and operational
excellence. Protifarm brings nearly 40 years of experience in insect breeding
and owns 37 patents across 10 categories, bringing the total number of patents
owned by Ÿnsect to nearly 300.
Tom Mohrmann, CEO of Protifarm said, “The evolution of a more sustainable
intake of nutrition is only at its beginning, but the demand for products
meeting these standards is set to grow exponentially in the coming years.
The consolidation of Protifarm with Ÿnsect will expand our scale to meet this
demand globally,”
With established food customers in Germany, the Netherlands, England,
Denmark and Belgium, Protifarm’s Novel Food application is expected to
receive EU approval in the near term, similar to same Ÿnsect. As Protifarm’s
Buffalo mealworm and Ÿnsect’s Molitor mealworm meet complementary
needs, the company now offers a platform of interchangeable food and feed
ingredients, addressing the demand for different premium applications coming
from the 2 types of mealworm.
CHINA
FOOD INGREDIENTS (GENERAL)
Azelis announces new distribution agreement in China with
Roquette
Azelis has recently announced plan to increase the scope of distribution
agreement with Roquette for their food product range in China. Azelis has a
long-standing relationship with Roquette and this new partnership strengthens
Azelis’ lateral value chain and expands its significant presence in the food &
health market segment across Asia Pacific.
The new agreement expands Azelis’ offering in the Chinese market with
the addition of Roquette’s specialty products, including fibers, plant-derived
proteins and both modified and native functional starches. Roquette is
confident that Azelis is capable of providing scale, technical expertise,
formulation capabilities and market knowledge which it considers as critical
factors before deciding to enter into the agreement.
Azelis is also positioned to build on its existing worldwide partnership with
Roquette, a global leader in plant-based ingredients. In 2020, Azelis was
appointed as the preferred distribution partner of Roquette for the plant care
market in Asia Pacific.
Jean Wang, Roquette China CEO said, “We are delighted to further our
business relationship with Azelis as part of our commitment to deliver best-inclass
services and tailor-made solutions to our customers. With Azelis’ technical
and formulation expertise, along with their dedication to use technology and
other innovative resources to streamline business processes across the lateral
value chain, we are confident that together we can look forward to continued
growth in China’s food & health industry.”
Jackson Chu, Managing Director China of Azelis added that Roquette’s
range of high-quality plant-based ingredients are complementary to its overall
portfolio and core values of providing sustainable ingredients and innovative
solutions to its partners.
Azelis China started its distribution business in 2012, In 2020, it acquired
CosBond and the Chinese Personal Care business of Bronson & Jacobs,
to strengthen its position as a leading distributor of specialty chemicals and
food ingredients in the China market. Azelis also operates 5 dedicated Food
& Health application laboratories in Asia Pacific, with the one in China having
advanced dairy and bakery capabilities.
25 Asia Food & Beverages
Ingredients News
Dairy proteins stand out as vital ingredients to feed our growing global
population
With growing consumer interest in health and wellness and increasing number of protein food and beverages in the market, it is key that
consumers be aware that not all proteins are created equal and how proteins of different sources differ nutritionally.
For the food and beverage manufacturers exploring to develop new product innovations with protein, the functional differences in addition
to nutrition are just as important for successful product development.
AFBR recently interviewed Kristi Saitama, Vice President, Global Ingredients Marketing of US Dairy Export Council (USDEC) to gain more
in-depth insights on why dairy proteins have a leading edge over alternative dairy products/ingredients when it comes to product formulation
and production. The following are excerpts from the interview:
(1) Based from a F&B manufacturer and consumer perspective, what would be the 5 main reasons
which could make dairy products (mainstream) stand out compared to dairy alternatives ?
Food and beverage manufacturers today have a wide and expanding range of ingredient
choices, including for protein ingredients. Choosing the right protein ingredient is essential to
deliver the consistent appearance, taste, functionality, nutritional and sustainability attributes
that consumers want. US dairy suppliers offer a diverse lineup of dairy proteins that satisfy
these diverse application needs. Further good news is that the United States’ sustainably
produced milk supply has ample expansion potential to meet growing global demand for
these sought after ingredients.
Among the most vital considerations for food and beverage formulators when developing
a health and wellness product is the nutritional quality of the ingredients utilised. Protein
ingredients are not all the same nutritionally, as the quality of the protein can differ widely
based on amino acid composition, the digestibility of that protein, and the bioavailability of
the digested and absorbed amino acids derived from that protein. The advantage of dairybased
whey and milk protein ingredients are that they are nutritionally complete sources of
protein, having the full array of essential amino acids in adequate amounts required by the
body. In contrast, most alternative protein sources (beyond soy) are incomplete, nutritionally
lower quality protein sources due to lower concentrations of amino acids and/or the protein
being less digestible and/or bioavailable. To obtain a similar amount of biologically available
(useable) essential amino acids from a lower quality protein, a consumer would need to
consume more of the food or protein source. From a formulation perspective, this could mean
that more of the plant protein would need to be used as well as blending of protein sources
may be required to fill gaps. This, in turn, could result in higher calories and costs, as well as
have functional performance and taste implications on the final product.
Yet, nutritional quality is just the start when it comes to the advantages of dairy protein
ingredients. Dairy protein’s neutral flavor profile is critically important because consumers
will not compromise on taste. Dairy proteins are often combined with plant to offset sensory
challenges from plant proteins. The breadth of functionality and usage versatility that the
lineup of dairy proteins offer are an ideal fit across many food and beverage applications,
whether Western or Asian style. Moreover, this combination of flavor and multifunctionality
benefits consumer-friendly clean label opportunities, through reducing the need for using
food additives and flavor maskers.
Chart 1.0: Amino Acid Concentrations of
Protein Sources (%)
Source: Adapted from van Vliet S, Burd NA, van Loon. J Nutr., 2015.
(2) It was said that dairy processing requires less complex steps compared to dairy alternatives. Can you
elaborate on this ?
Commercial processing of protein ingredients involves a variety of processing steps and techniques that vary based on source material,
method and end-product produced. This can, in turn, impact the degree of processing and impact on environmental resources. Dairy proteins
are produced using clean label friendly physical separation methods via filtration steps, rather than chemical separation. As dairy proteins
are water soluble, it is essentially as simple as removing water and filtering by particle size. In contrast, proteins from plants are not naturally
water soluble, for example peas, beans and nuts not readily dissolving in water. As such, processing of some plant protein concentrates
and isolates may require the use of processing aids beyond water in order to extract the protein, such as solvents (e.g. hexane, ethanol and
alcohol), salts, acids (e.g. 1-2 N HCL), caustic agents (e.g. 1-2 N NaOH), bases, etc.
The following Chart 2.0 indicated that dairy alternatives derived from pea,rice and potato require several extra steps to extract the protein,
as compared to milk and whey proteins which undergo simpler processing.
Chart 2.0: Protein processing schematics of select protein concentrate ingredients
Higher Essential Amino Acid Concentrations = Higher
Quality
A higher concentration of essential amino acids (EEAs) is one of the
main indicators of protein nutritional quality. Dairy proteins rate high
on protein quality.
Leucine - Important for Muscle Protein Synthesis
Leucine is a branched chain amino acid, one of the building blocks
of protein. It acts as a trigger or switch to initiate muscle protein
synthesis. Whey protein is the leading food source of leucine.
Source: RTI Innovation Advisors, 2020. Unpublished.
Continue to page 28
Asia Food & Beverages 26
U.S. Dairy: Smart Protein Choice
Naturally found in dairy, U.S. whey protein is a quality
protein source with benefits for body composition, weight
management, healthy aging, sports nutrition and more.
Versatility
U.S. whey protein can be easily added to a variety of foods
and beverages suitable not just for athletes, but also weight
conscious consumers, active adults and seniors. Its neutral
flavor complements the taste of foods to which it is added,
whether snacks, meals or desserts.
Quality
Protein quality matters. U.S. whey protein is an easily
digestible, high-quality complete protein containing all of
the essential amino acids and high levels of branched chain
amino acids. Notably, it also stands out for leucine content
which is important to initiate muscle protein synthesis.
Timing
Beyond the total intake quantity of protein, the timing
of protein intake also matters in order to help build and
maintain muscle. Emerging research suggests a balanced
intake of 25-30g of protein per meal as optimal.
Our New Website is Live!
Browse our new site for details on upcoming U.S. Center
for Dairy Excellence programs alongside insights and inspiration
for innovating with U.S. dairy ingredients.
www.USdairyexcellence.org/
GET IN
TOUCH
U.S. Dairy Export Council Southeast Asia
20 Martin Road, Seng Kee Building, #08-00 Singapore 239070
(+65) 6230 8550 (+65) 6235 5142
www.USdairyexcellence.org/ @ThinkUSAdairy
info@usdecsg.org
The US Dairy Export Council® (USDEC) provides marketing, technical and ideation support to global buyers and end-users to
accelerate customer purchasing and innovation success with nutritional and functional U.S. dairy ingredients such as milk powder,
lactose, whey and milk proteins and permeate. In 2020, USDEC opened the U.S. Center for Dairy Excellence in Singapore, a learning
destination, ideation hub and collaboration space for U.S. dairy customers and other partners in Southeast Asia.
27 Asia Food & Beverages
Ingredients News
(3) Dairy proteins have greater versatility and less
wastage. Can you illustrate this statement ?
Dairy protein’s multifaceted nutritional and functionality benefits
are a key reason why they are a sought after ingredient used in
wide ranging products that delight consumers across geographies,
gender and age groups. If you walk up and down a supermarket
aisle in the US or other markets where dairy protein usage is well
rooted, you will find them in the ingredient statements of a multitude
of products. Some examples are sports nutritional powders, child
nutrition formulas, medical nutrition products, beverages, yogurt,
potato chips, protein bars and bites, pancake mix, oatmeal, desserts,
ready meals and side dishes, soups and dressings, and even ice
cream.
At a time when environmental consciousness is on the rise, waste
reduction is perhaps a lesser known but also significant benefit of
dairy proteins. Whey protein itself is a co-product of the production
of cheese, created by harvesting nutritionally valuable proteins
from milk during the cheesemaking process and turning them into
multifunctional ingredients. The exciting thing is that availability is
not limited to cheesemaking today. Milk proteins (composition 80%
casein and 20% whey) can also be separated from milk directly,
thanks to advances in filtration. These milk protein ingredients bring
unique properties for different formulations, widening the applications
that can include dairy’s valuable nutrition and taste.
Looking at protein ingredients overall, during protein isolation/
purification, non-protein co-products are produced which must
ultimately be utilised or disposed. A landscape survey commissioned
by the National Dairy Council (US) and completed in 2020 compared
the commercial processing of 17 protein ingredients (dairy, plant
and insect) from post-harvest through production of the finished dry
protein powder, including if and how the co-products are utilised. The
survey found that dairy protein processing tends to find more valueadded
uses in food applications than those of alternative proteins.
A key example is dairy permeate, the lactose and mineral rich coproduct
of whey protein and milk protein manufacturing. In this
fashion, dairy ingredient processing fosters every drop of milk to be
utilised rather than wasted, to nourish consumers around the world
and contributing to sustainable food systems.
(4) In terms of sustainability, how does dairy proteins
compare to its protein alternative counterparts ?
Dairy protein maximises value for food and beverage manufacturers.
The same 2020 landscape survey found that US dairy proteins
may have a similar environmental impact to plant proteins when
considered from the perspective of nutritional quality rather than
according to the food’s raw weight or caloric content.
The US dairy community has a long legacy of environmental
stewardship and sustainability, and a strong track record of taking
action to protect the planet. When comparing 2017 with a decade
earlier in 2007, producing a gallon or about 3.8 litres of milk in the US
involved 30% less water and 21% less land, while greenhouse gas
emissions were reduced by 19%. This was accomplished through
innovative practices such as maximising cow comfort (e.g. some
have waterbed mattresses), optimising balanced nutritional intake
via feeding practices, genetics, and investments in technology
like methane digesters. And, US Dairy remains fully committed
to continue to make further progress while always innovating and
investing to produce dairy products with fewer resources. This
includes aggressive new sustainability targets announced in 2020 to
become carbon neutral or better by the year 2050.
In fact, a 2019 report from the Food and Agriculture Organization
of the United Nations (FAO) and Global Dairy Platform on climate
change found that North America is leading the world when it comes
to efforts to reduce dairy greenhouse gas emissions. North America
was the only region of the seven studied where both emissions
intensity and absolute emissions fell for the timeframe of the report
(2005-2015) while overall milk production rose.
(5) With the current pandemic situation, the issue of
nutrition (especially choosing the right nutrition) has
taken a far more important role in consumer well-being.
What is your take/advise on this?
In COVID pandemic times and always, consuming nutritious foods
and beverages is important to help the body stay strong and healthy
and help provide defenses against illnesses. Dairy’s unique nutritional
package including vitamin D, calcium, protein, etc. is an important
part of a healthful daily diet across lifestyles and life stages, from a
growing child, to a weight or fitness conscious adult or active senior.
A unique concern during pandemic times is that people may be
having more sedentary lifestyles, given restrictions on visiting fitness
centers or other limitations on usual exercise activities in public
places. Such reduced physical activity could risk a loss of muscle
mass, the type of loss known as sarcopenia that is typically seen
in older adults or after hospitalisation for an illness. Studies have
shown that whey protein can support muscle health (muscle protein
synthesis and maintenance of muscle mass) while helping to mitigate
the negative impacts of physical inactivity. Notably, whey protein
leads as a food source of the branched chain amino acid leucine,
which is an important trigger to initiate muscle protein synthesis.
(6) With a global population reaching 10 billion
by 2050, what do you foresee to be the future of
mainstream dairy proteins/products ?
Ensuring consumers around the world in both developed and
developing nations and across all life stages have steady access to
nutritious, environmentally friendly and affordable food and beverage
products is of vital importance to feed a rising global population. This
includes both animal foods like dairy and plant based foods, not one
or the other. Today, nutrient deficiencies exist in low- and middleincome
populations that consume mostly plant-based diets. Dairy
can complement plant-based diets by providing a unique and hardto-replace
nutrient package that can raise intake levels of nutrients
that are low or absent in plant-based diets.
Especially, every bite counts when we think of providing and
innovating foods that meet the nutritional needs of malnourished
or vulnerable populations as well as older adults and seniors in
an aging society that have special nutritional needs. US dairy
ingredients like whey and milk proteins provide food and beverage
formulators an ideal sweet spot of a ‘no-compromise’ ingredient
solution that is concurrently healthful for the body as well as the
planet. As a nutritionally complete source of protein, dairy proteins
can play a positive role in addressing the triple burden of malnutrition
(undernutrition, micronutrient deficiencies, overweight) while
supporting sustainable food systems.
Asia Food & Beverages 28
29 Asia Food & Beverages
Ingredients News
PLANT-BASED INGREDIENTS
ADM’s new state-of-the-art Plant-based Innovation Lab
in Singapore to cater to Asian palate
On 22 April, ADM celebrated the opening of its new cutting-edge, plantbased
innovation lab at its existing Biopolis research hub in Singapore.
The new lab will develop next-level, on-trend and nutritious products to
meet growing food and beverage demand in the Asia Pacific region.
The new facility features a combination of experts in proteins and
texturing ingredients, coupled with flavor specialists, allowing ADM to
quickly and efficiently create tailor-made solutions for the Asian consumer
palate. This lab gives ADM the ability to test flavors, textures, fats and
binding characteristics in-house and accelerate product development
for customers. Additionally, the lab can provide medium-scale sampling
through a variety of forming and freezing capabilities to support market
evaluation of new products and solutions.
According to Marie Wright, Chief Global Flavorist and President,
Creation, Design & Development for ADM, the lab will not only help ADM
to capture key insight and learnings to help drive exciting new solutions
for the Asian market, but also help it to better service customers around
the world looking to incorporate Asian flavors and preferences into their
latest plant-based food and beverage innovations.
The ADM Biopolis research hub in Singapore features a wide range
of capabilities, including a food and flavor analytic lab; a beverage and
dairy applications lab and pilot plant; a bakery and confectionery lab; a
meat and savory lab; a sweet and savory creation lab; sensory evaluation
facilities and a customer innovation center in addition to the new plantbased
innovation lab.
ADM Human Nutrition Technical Innovation Centre occupies a total area
of 11,603 sq.ft and employs nearly 150 people in Singapore, representing
5% of its more than 3,000 employees across the wider Asia Pacific region.
AFBR has recently interviewed Mr Dirk Oyen, Vice President and
General Manager Southeast Asia, Human Nutrition, ADM to gain more
in-depth information on the new plant-based lab as well as recent trends
and developments relating to plant-based meat/products. The following
are excerpts of the interview with him:
What are the 3 major role/functions of the newly launched
plant-based innovation lab in Singapore ?
Consumers are increasingly looking for plant-based alternatives that
possess the right taste, texture, flavour and aroma to incorporate into
their diets. By combining protein, texture and savory flavor expertise
with immense plant-based application knowledge, the plant-based
innovation lab will allow for rapid solution creation through testing
of key sensory and functional elements of plant-based applications.
Through this plant-based innovation lab, we are able to develop
innovative plant-based products and solutions that are tailored for
different companies and their target audiences. We create plantbased
meat and beverage alternatives in convenient formats and
culinary innovations that better fit Asian consumer lifestyles and
preferences in Asia Pacific (APAC) and around the world.
As an end-to-end solutions partner, we help companies source
everything from raw ingredients and innovating plant-based meat
alternatives, to scaling up and converting existing infrastructure
or manufacturing capabilities into one that is suitable for their new
needs.
Why is Singapore chosen as the location for the Plant-based
Innovation Lab ?
Asia is home to 60% of the world’s population, and Singapore is an
important hub for innovation due to a multitude of factors. The new lab
seeks to anticipate market trends and insights and provide timely solutions
that address the nutritional challenges of changing taste and preferences
not only in Singapore, but across the APAC region and around the world.
As Singapore is often considered a regional hub, we are strategically
placed to provide counsel, testing and innovation development to many
countries in APAC and beyond.
With the launch of many ingredient
labs related to plant-based
space in Asia, what makes the
one at ADM unique from its other
counterparts in this region ?
One which sets ADM apart from others
is its long history in the plant-based
meat and beverage alternatives space
spanning over 75 years. With significant
growth in consumer interest about plantbased
meat and dairy alternatives, there
is a large potential to fill this demand.
Our plant-based innovation lab seeks to
create plant-based offerings in convenient
formats and culinary innovations that
better fit Asian consumer lifestyles and
preferences in this region.
To help customers succeed, we provide
high value protein ingredients that are
ADM Plant-based Innovation Lab with Mr Dirk
Oyen, Vice President and General Manager
Southeast Asia, Human Nutrition, ADM at the
background (right side)
powered by an unmatched portfolio that is safe and reliable from farm
to fork. Our R&D experts know the mechanics of taste and functionality
and how the ingredients work to help customers get successful products
to the market quickly.
What is also unique about our offering is the technical expertise provided
to customers by working closely with them side-by-side until we helped
them achieve a product that consumers love.
We also have the enhanced capabilities of providing customers scaling
up capabilities, either by ensuring they have the correct infrastructure or
quickly optimising their existing production lines to manufacture these
products.
Name 3 major areas where the new food lab could support
budding plant-based enterpreneurs/ventures or existing F&B
manufacturers to expand into this category?
The plant-based innovation lab can quickly scale up and innovate
various plant-based products and solutions that can be tailored for
different companies and their target audiences and preferences.
The plant-based innovation lab will also give ADM the ability to
test flavors, textures, fats and binding characteristics in-house and
accelerate product development for F&B manufacturers.
Additionally, the lab can provide medium-scale sampling through
a variety of forming and freezing capabilities to support market
evaluation of new products and solutions. This is critical in ensuring
that even when products are scaled up from the innovation lab, they
remain of high quality and are consistent.
Which will be ADM priority segment in the new plant-based
lab?
In APAC, the opportunities are near boundless. With consumers on
the lookout for new products, there is an insatiable appetite for plantbased
meat, beverage and dairy alternatives that suit their needs and
preferences.
Hence, we have put in significant resources to ensure we are able to
meet all types of requests and products, regardless of segments, across
the board.
ADM Chef-Crafted Plant-based Peranakan (Asian) meal using plant-based chicken, beef and
pork. And ADM Chia Seeds with coconut milk and gula melaka for the Sago Pudding dessert
In recent years, several consumer groups have voiced health/
sustainability concerns over the contents (ingredients) of faux
meat. How can ADM correct this concern?
On the contrary, many consumers are now experimenting with plantbased
protein to meet their health and wellness, sustainability, food safety
and convenience preferences. Presently, there is a growing demand for
plant-based food and it is largely driven by the COVID-19 pandemic.
Asia Food & Beverages 30
Ingredients News
Sustainable sourcing and traceability are
also priorities for ADM. We understand that
consumers are looking for products that are
traceable and with easy-to-read ingredient
labels, and our global supply chain of
ingredients ensures that this demand is met.
For example, our new and cutting-edge satellite
imaging technology allows unprecedented
transparency into our supply chain. This
innovation will help enable verification of our
goal to achieve and report full traceability
(100%) of our soy supply chains in Brazil,
Argentina, and Paraguay by 2022, including
direct and indirect sourcing.
At ADM, we take natural products and
transform them into a complete portfolio of
ingredients and flavors. For example, our
culinary pantry provides a range of plant-based
solutions ranging from extracts that provide
great taste, emulsifiers that provide the right
texture to antioxidants that provide functional
and nutrition benefits in a wide variety of food,
drink and supplement applications.
On a separate note, AFBR also would like to
add that with the ongoing African Swine Fever
(ASF) that affect the pig herd population as well
as the long history of bird flu (H5N8) affecting
poultry across the globe, many consumers
hope to make a gradual switch from meat
consumption to plant-based food products. This
is on top of consumer concerns over animal
welfare and sustainable farming practices in
this region.
The future for plant-based alternatives
seems brighter than ever. What do you
foresee the demand in 10 years from
now ?
In the meat substitute category, consumers
are already familiar with plant-based beef
alternatives. We believe the future is bright as
there is significant ‘pent-up’ demand for other
newer plant-based meats like pork, chicken
and seafood.
We are also seeing more interest and
advancements in plant-based alternatives
to shellfish, cheese and ready-to-eat (RTE)
protein snacks.
Our global trends report found that in the next
few years, consumers will be looking for: (1)
healthier food choices (that naturally contain
beneficial ingredients), (2) products that have
a more healthy and positive impact on the
environment, (3) secure supply, and (4) greater
transparency in labelling and sourcing of food.
We are seeing much greater demand for food
that is nutritious. This has spurred significant
growth in nutrient-dense products, but flavor
and color are also key factors in driving
consumer preference.
In your opinion, how does plant-based
meat alternative perform compared to
other alternatives like lab grown cellbased
meat and the traditional real
meat?
Beyond applications, processes like
fermentation and new technologies like 3D
printing are spurring inventive creativity. Plantbased
innovation is performing well but is only
beginning, and the future holds many different
techniques and applications as research
increases and consumer acceptance grows.
Ultimately, we hope that plant-based meat
alternatives occupy a segment in the market
that diversifies consumers’ offerings. We
hope to develop the industry as a whole that
is complementary to what is already available,
like for example the traditional meat and other
meat alternatives and continue innovating
products that meet consumer demands and
preferences.
INDONESIA
Kerry invests US$36 million in Taste facility in Indonesia
TASTE & NUTRITION
Kerry, the world’s leading taste and nutrition company, has increased its footprint in South East
Asia (ASEAN) by building a 2 nd manufacturing facility in Karawang, Indonesia at an investment of
€30 million (US$36.13 million).
The new state-of-the-art facility is Kerry’s largest ever capital investment in ASEAN, and will
significantly expand Kerry’s Taste offering in the region and further support customers in the fastgrowing
markets of Southeast Asia. It will be Kerry’s 2 nd manufacturing site and 3 rd facility in
Indonesia.
This world class facility will be Kerry’s first greenfield investment in Southeast Asia and will
encompass a flavour manufacturing site along with a sampling hub and a research and development
pilot plant. A wide range of flavour technologies will be manufactured in Karawang, allowing this
new site to support Kerry’s fast-growing taste business and its food and beverages systems across
all food categories, including beverage and snacks which is among the fastest growing end use
markets for Kerry.
Antoine Nourrain, General Manager, Taste APMEA said, “As part of its goal to create a world of
sustainable nutrition, Kerry is committed to meeting the growing demand from customers within
Indonesia and South East Asia. Our focus is on delivering world class products to our customers
and consumers. This new investment is made with current and future customer needs in mind and
the important role that taste can play in enabling the transition to healthier and more sustainable
diets.”
The design of the new facilities includes an on-site wastewater treatment plant and meets the
criteria of Kerry’s Beyond the Horizon sustainability strategy achieving new standards in the
consumption of energy and water with significantly lower CO2 emissions and no waste to landfill.
Construction has started and the plant will be operational in late 2022.
John Savage, CEO Global Taste added, “The construction of this world-class manufacturing site
demonstrates our commitment to our customers in Indonesia and the Southeast Asia region. This
new facility will strengthen our competitiveness as we work with customers to deliver our Taste
portfolio of solutions and bring excellent and authentic tasting products to market.” The South East
Asian taste market is valued at circa €900 million (US$1.08 billion) and is growing at a high single
digit with huge opportunity for further development and innovation.
COCOA/CHOCOLATES
Mondelez partners Olam Food Ingredients to create world’s largest
sustainable Cocoa Farm in Indonesia
Mondelez International, Inc., a global leader in snacking, and Olam Food Ingredients (OFI),
a leading supplier of cocoa beans and cocoa ingredients, have recently announced a new
collaboration in Indonesia to create the world’s single largest sustainable commercial cocoa farm.
The model builds on Mondelez International’s experience with the company’s signature sustainable
sourcing program, Cocoa Life, and OFI’s ambition for sustainable cocoa, Cocoa Compass, to test
a scalable approach for the future of commercial cocoa farming.
This massive project will be located at a 2,000 hectare cocoa farm on Seram, an island in the
Maluku province in Indonesia. It will utilise advanced climate smart and plant science technology –
rarely used to grow cocoa at this scale. The model tests a modernised and professional blueprint
for best practice cocoa farming, optimal land usage and farming community planning which will be
explored as a potential model for replication across the region.
Demand for cocoa is growing across Asia, which is set to become the 2 nd largest consuming
region of cocoa ingredients in the world. Indonesia is a key cocoa-producing country in the region,
but farmers have struggled with rising temperatures, low yields and crop disease. Combining
their respective expertise in cocoa growing research and development, sustainable cocoa farm
management, and good agricultural practices, Mondelez International and OFI will tackle these
problems by improving the livelihoods of partner cocoa farmers, empowering communities and
restoring the environmental productivity of a previously deforested landscape.
The partnership aims to deliver 700 new jobs as well as better living conditions to the locals; 2,000
hectares of productive cocoa trees in a previously deforested brown field land; 47 hectare area of
High Conservation Value forest; and a Seedling Nursery that can grow up to 1 million high-yielding
cocoa seedlings annually.
Quentin Roach, SVP Supply Chain & Chief Procurement Officer, Mondelez International said, “As
one of the world’s leading chocolate makers, we’re on a mission to make cocoa right and to secure
a sustainable future for an ingredient essential to our business. With 9 years of measurable impact
demonstrating improved farmer’s livelihoods and reduced environmental impact of cocoa farming
through our signature sustainable sourcing program, Cocoa Life, we’re excited to leverage our
know-how in a collaborative approach to sustainable raw material sourcing with a geographically
customised solution. Creating opportunities to innovate, in partnership with our suppliers, and
exploring the ability to scale high-yielding, forest-positive, income-generating approaches to
commercial cocoa farming on the single largest farm of its kind offers attractive potential and is an
important step forward on our journey to lead the future of a sustainable and resilient cocoa supply.
This initiative sits alongside Mondelēz International’s existing Cocoa Life program in Indonesia and
our cocoa crop science technical center in Pasuruan, established to support sustainable cocoa
farming practices and drive positive change for farmers and communities in the region”.
Gerard A. Manley, CEO of OFI’s Cocoa Business said, “This could be truly game-changing for
the future of cocoa in Indonesia and beyond. We would like to thank the regional and national
governments of Indonesia for their support. Ever since we launched our first sustainability program
in the country more than 16 years ago, we have been committed to supporting Indonesian cocoa
farmers while also protecting the environment. We reaffirmed this commitment through our
acquisition in 2019 of the country’s largest cocoa processor, BT Cocoa, to connect the full supply
chain from cocoa beans to cocoa ingredients. We’re now combining our expertise and knowledge
with Mondelēz International, a steward of some of the world’s most iconic snack and chocolate
brands. Having just announced the achievement of our 2020 sustainability goals, we believe this
partnership is a further significant step towards our Cocoa Compass ambition to have a positive
impact on the future of cocoa.”
31 Asia Food & Beverages
Ingredients News
Indonesia approves Beneo inulin
and oligofructose prebiotic claim
THAILAND
Behn Meyer Thailand strives towards
sustainability as it gains ISO
14001:2015 certification
VIETNAM
Asia Food & Beverages 32
PREBIOTICS
The National Agency of Drug and Food
Control of Indonesia (Badan Pengawas Obat
dan Makanan) has recently approved Beneo’s
prebiotic claim for the chicory root fibers inulin
and oligofructose.
Beneo said the approval made its ingredient,
the first and only one recognised as prebiotics
in Indonesia. This is made possible by Beneo’s
extensive research and effort in communicating
the prebiotic effect of inulin and oligofructose to
local authorities.
The claim is approved under the milk powder
category for the general population, referring
to healthy people above 3 years old, including
teenagers, adults, and the elderly. The minimum
required dose is 4.5 g/L on a ready-to-drink
basis of inulin and oligofructose, in 30:70 ratio.
By incorporating Beneo’s chicory foot fiber
into milk powder applications, manufacturers
can now meet consumers’ growing interest in
products that promote the gut microbiome and
digestive health.
The company said in Indonesia, 2/3 of
consumers associate prebiotics with a healthy
gut, based on FMCG Gurus survey. In addition,
more than half of Indonesians are also seeking
food and drink products that can improve
digestive health. The pandemic has also made
more Indonesians aware of the importance of
digestive health and its close relationship to
immune health.
All Behn Meyer companies operating in
Thailand, including Behn Meyer Chemicals
(Thailand) Co., Ltd., Behn Meyer & Co.
(Thailand) Limited and Behn Meyer AgriCare
(Thailand) Co., Ltd. are now ISO 14001:2015
certified.
ISO 14001 is the international standard
that specifies requirements for an effective
environmental management system (EMS) for
organisations to improve their environmental
performance through more efficient use of
resources and reduction of waste.
The new standard is the 3 rd revision of
the standard, which saw its last revision in
2004, and has a greater focus on leadership,
increased prominence of environmental
management within the organisation’s strategic
planning processes, addition of proactive
initiatives to protect the environment from
harm and degradation, as well as the addition
of a communications strategy and improving
environmental performance.
This represents an important achievement
for Behn Meyer as it strives towards greater
sustainability across all our operations.
FUNCTIONAL/NUTRITIONAL
INGREDIENTS
Vietnam goes into trial production
of GSH made from yeast
Vietnam’s Ministry of Industry and Trade
has gone into trial production of yeast-based
glutathione (GSH) inoculants and dietary
supplements rich in glutathione.
The Project Director Cao Anh Tai said more
and more countries are developing GSH from
yeast, which is widely used in production of
anti-aging pharmaceuticals and supplements
for food processing.
Pharmaceutical, functional foods and
biotechnology companies worldwide are
seeking to improve production technology and
product quality, while reducing production cost.
Currently, Vietnam does not have domestic
producers of GSH inoculant and has to
import the anti-oxidant to cater for domestic
manufacturing needs. The project is expected
to help produce high quality GSH containing
products in Vietnam for commercial sales,
added Tai.
Tai said the project has combined existing
with newly purchased equipment to create 2
yeast biomass and GSH production models.
The project has created 8,500kg of GSH-rich
yeast, 350kg of 30-percent GSH inoculant, 170
kg 15-percent GSH inoculant, and 1,000,000
GSH capsules Traly Gluwhite. GSH-rich yeast
biomass products, GSH inoculants, and Traly
Gluwhite capsules all have been assessed
with clear standards in accordance with current
regulations.
Project researchers have introduced 15
and 30-percent GSH inoculants and GSHrich
capsules Traly Gluwhite to different
pharmaceutical companies and so far have
received positive feedback through contracts
in principle. The domestically produced GSH
inoculants and products also have a price much
lower than those imported equivalents.
SINGAPORE
ALTERNATIVE PROTEINS
Givaudan and Bühler open Protein
Innovation Centre in Singapore
Givaudan, a global leading company in Taste
and Wellbeing, and Bühler, global leader
for food processing solutions, have recently
announced the official opening of the APAC
Protein Innovation Centre.
Located at the Givaudan Woodlands site in
Singapore, the Protein Innovation Centre is
jointly run and supported by experts from both
companies and is connected to a vast network
of R&D Innovation Centres in Switzerland and
key hubs across the region that enables agile
plant-based product development on a global
scale.
The Protein Innovation Centre in Singapore
welcomes food processing companies, startups
and university researchers from across
the Asia Pacific region keen to co-create plantbased
food experiences that do good and feel
good. The Centre combines the pilot technology
of Bühler’s extrusion and processing equipment
with Givaudan’s new culinary facilities and
its world-leading expertise in flavour, taste,
ingredient and product development.
Outfitted with a pilot scale wet and dry extruder,
a state of the art product development kitchen,
storage facilities, meeting amenities and a
viewing area where visitors may tour the 400
sq.metres facility and view live demonstrations,
the Innovation Centre is constructed with the
end-to-end process of plant-based protein
production in mind. Businesses will also
benefit from support throughout the co-creation
process, from raw material selection to product
development and research, to application,
flavour science, extrusion and consumer
testing. At the centre, customers can develop
high-quality products suitable for Asian culinary
applications at scale. The facility can produce
up to 40kg of plant proteins an hour and features
dry extrusion, as well as a newer wet extrusion
technology that delivers a fibrous structure
more akin to muscle, and higher protein content
as compared with dry extruded products.
Monila Kothari, APAC President, Givaudan
Taste & Wellbeing said, “We are proud to be
part of a partnership that will contribute towards
a sustainable food future for Singapore and the
APAC region. Through the Protein Innovation
Centre, we aim to create an eco-system that
supports start-ups and food businesses in an
environment of co-creation. The centre will
provide them access to the expertise, networks
and technology required to create authentic
plant-based protein alternatives that meet
consumer needs and expectations. By bringing
flavour solutions that are vegetarian, vegan,
plant-based and natural, as well as technologies
such as wet extrusion to Singapore and the
region, we are helping to make plant-based
foods more delicious, authentic and accessible
to business and consumers. We are excited to
open our Centre in Singapore, a country that is
a hot bed for FoodTech Innovation.”
Meanwhile, the spokesperson from Bühler,
its Chief Technology Officer Ian Roberts
said, “Great tasting and sustainable protein
alternatives are an important contributor
to feeding 10 billion people sustainably by
2050. The changes that need to happen to
our protein value chains prior to that are so
deep, they can only be achieved if the various
partners of the food ecosystem start working
together today. The Protein Innovation Centre
that we open today with Givaudan at the core
of Southeast Asia’s vibrant food ecosystem,
is a step towards achieving our vision of a
collaborative and sustainable future of food.
The Protein Innovation Centre will not only
enable the development of more plant- based
protein products across Asia, it will also
ensure delicious products can be scaled to the
production volumes required to create a positive
environmental impact on our food chains.”
For collaboration opportunities, visit
www.givaudan.com/apac-pic.
Givaudan reported sales of CHF 6.3 billion
(US$6.9 billion) in 2020 whereas Bühler
allocated 5% of its sales turnover of CHF
3.3 billion (US$3.61 billion) for research &
development.
Firmenich opens Culinary &
SmartProteins® Innovation Hub in
Singapore
Firmenich, the world’s largest privately owned
fragrance and taste company, has recently
launched its Culinary and SmartProteins®
Innovation Center in Tuas, Singapore.
The new center will serve as a regional R&D
hub for Asia and a global center of expertise in
alternative proteins for meat and dairy analogs.
The Innovation Center is key to Firmenich’s
Savory vision, to deliver breakthrough
integrated solutions in Meat Proteins and Plantbased
alternatives bringing together technical
expertise in aroma, flavor, taste, umami and
texture solutions from Campus and Firmenich.
Emmanuel Butstraen, Global President,
Taste & Beyond at Firmenich said, “Leading
the industry in alternative protein solutions
is a key focus for Firmenich and this is an
important milestone in our global expansion of
capabilities. The center will allow us to partner
closely with our customers to serve a fastgrowing
number of Flexitarian consumers with
delicious food & beverage options.”
Mr Butstraen added, “Supporting the move
towards plant-based diets and reducing
reliance on animal products is in line with our
ESG Ambitions 2030 to support significant
reductions in emissions and water use. We
are proud to have Singapore’s Economic
Development Board (EDB) as a partner in this
investment. This new facility will be home to
some of the best talent in the industry across
several disciplines to deliver truly innovative,
consumer-focused integrated solutions.”
Asia Pacific is the fastest growing region
for plant-based alternatives worldwide and
is estimated to grow 25% by 2025. The new
SmartProteins® center in Singapore will enable
Firmenich to meet this growing demand by
combining its global expertise and Campus
solutions.
“Firmenich’s comprehensive portfolio of Smart
Proteins® capabilities include ingredients
and delivery technologies designed to create
great-tasting plant-based food and beverages,”
said Jun Saplad, Taste & Beyond’s Regional
President for Asia. “By harnessing our deep
regional and local understanding and our
expertise in taste and plant-based proteins, the
Innovation Center will allow us to tailor solutions
to the unique needs of the Asian market and
explore new angles for meat-free dishes.”
Ow Kai Onn, Vice President and Head,
Chemicals and Materials, Singapore EDB said,
“Firmenich’s presence in Singapore spans
nearly 50 years. EDB is proud to support this
undertaking, which would enable Firmenich to
capture new growth opportunities as well as
strengthen Singapore’s Flavor and Fragrance
specialty chemicals sector.”
Firmenich reported an annual sales turnover
of approximately US$4.32 billion in 2020.
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lynn.how@koelnmesse.com.sg
Tel: +65 6500 6712
33 Asia Food & Beverages
Ingredients News
MALAYSIA
STEVIA SWEETENER
Malaysia Health Authority now accepts SweeGen’s Bestevia® Zero-Calorie
Stevia Sweeteners for Food and Beverages
With the ongoing pandemic, Asian consumers have adopted healthier lifestyles and diets,
including the use of lesser or no sugar in food and beverage products.
Malaysia Ministry of Health has officially accepted SweeGen’s zero-calorie Bestevia sweeteners,
Rebaudiosides D, E and M for use as ingredients in food and beverage products.
Brands in Asia are striving to deliver sweet indulgence alongside new and exciting flavors in
snacks and beverages to satisfy consumers’ cravings. The acceptance of not just one, but three
of SweeGen’s premium stevia ingredients, gives brands in Malaysia the creative latitude to tackle
sugar challenges when innovating and renovating products.
“Cutting calories and adopting nature-based ingredients in diets
has long fit into the importance of health and wellness for consumers
in Asia,” said Senior Vice President of Sales, Luca Giannone. “Our
promise well into the future is to ultimately move the needle in what
consumers eat and drink through better sugar reduction solutions.”
Malaysia is one of many APAC countries where SweeGen’s non-
GMO stevia sweeteners will change the landscape for offering a
low cost-in-use sugar reduction solution.
In its quest to provide highest levels of customised service to brands
and the broadest toolbox of taste solutions in Asia, SweeGen is in
the process of opening a food and beverage application center in
Singapore to collaborate with brands on exploring and discovering
product innovations motivated by consumer trends and regional
tastes. Last year, Singapore’s food safety authority approved
SweeGen’s Rebs D and E in 2020 and Reb M in 2019.
Next generation non-GMO stevia sweeteners have led the way in replacing sugar in foods
and beverages, nutritional products, and many other market products worldwide. In a Mintel 2020
report on table sauces, it reported that “consumers in this region are increasingly keen to eat
more natural foods. This should encourage table sauce brands to remove artificial additives and
prioritise natural, organic, and less-processed ingredients.” SweeGen’s proprietary zero-calorie
stevia sweeteners are produced through a patented bioconversion process, which begins with the
stevia leaf to achieve high-purity clean-tasting Rebs D, E and M.
SweeGen offers food and beverage manufacturers rapid innovation sugar reduction solutions for
beverage, dairy, savory, bakery and confectionery. Bestevia Rebs D, E and M were commercialised
in the past few years, and have already been approved in many regions around the world.
“This regulatory milestone is just one of many achievements in APAC,” said Director of Regulatory
Affairs, Hadi Omrani. “We’re looking forward to continuing our goal throughout the region which will
help an industry that strives to be relevant with consumers.”
SweeGen provides sweet taste solutions for food and beverage manufacturers around the world.
It is on a mission to reduce the use of sugar and artificial sweeteners in global diet. Partnering with
customers, Sweegen creates delicious zero-sugar products that consumers love. With its best
next generation stevia sweeteners portfolio such as Bestevia® Rebs B, D, E, I, M, and N, along
with its deep knowledge of flavor modulators and texturants, SweeGen delivers market-leading
solutions that customers want and consumers prefer.
INDIA
PLANT-BASED MEAT SOLUTIONS
AAK partners Vista Foods to meet rising demand for plant-based meat in
India
India has a large number of vegetarians, mainly due to its religious and cultural propensity not to
consume meat. As such, the plant-based meat could have a huge market in India if the products
offered are affordable and appeal to the masses in terms of taste and other preferences.
AAK, a leading manufacturer of specialty oils and fats, has recently announced a new partnership
with Vista Processed Foods Pvt Ltd, part of OSI group, to meet the country’s growing demand for
plant-based meat alternatives.
It is estimated that as many as 29% of people in India are vegetarians. There is also increasing
interest in veganism and flexitarianism, largely driven by health-focused, eco-conscious millennials.
The country’s meat alternative market however is in its early stages, but commercial adoption is
accelerating, with plant-based options increasingly common in quick service restaurants (QSR)
and online. In 2019, Ipsos ‘Food Habits of Indians’ research found that 63% of Indians were willing
to eat a plant-based substitute for meat.
Last year, AAK partnered with the Good Food Institute India to help advance India’s promising
plant-based meat and dairy alternative market. With Vista Processed Foods participation in an AAK
ACADEMY session, the two companies met and agreed to form a partnership.
They will now collaborate to create products from a variety of different plant proteins that meet
the taste and texture needs of Indian markets. Working on a co-development basis, Vista will
manufacture plant-based products for customers, with AAK providing its expertise in areas such as
new product development.
Dheeraj Talreja, President of AAK, India said, “As elsewhere in the world, Indian consumers are
increasingly concerned about climate change, animal welfare and health, which is fueling demand
for plant-based alternatives to meat. We’re delighted to have this opportunity to work with Vista
Foods to create great-tasting products made with love for people, plants and the planet.”
Bhupinder Singh, CEO of Vista Processed Foods said, “This is a timely partnership for a number
of reasons. The COVID-19 crisis has increased consumers’ focus on health, and made them more
cautious in their approach to food, with millennials in particular focusing on better, more sustainable
food choices. Meanwhile, protein deficiency is a serious problem in India, and there is a need to
provide consumers with additional, guilt-free sources of protein. India’s plant-based food market is
growing, and we’re confident that this unique collaboration with AAK will help accelerate it.”
New Products
VIETNAM
CHOCOLATES/CONFECTIONERY
Belgian JV produces unique
chocolate with strong fruity notes
Puratos Grand-Place Vietnam,
a joint venture company between
the Puratos Group and Grand
Place Holding, has launched a
new product, Chocolante 60DAYS
Vietnam Dark 74%.
This new product offers
more complex flavors that are
unattainable in the ‘traditional’
supply chain that spans more than
1 year from harvest to packaging.
A chocolate expert panel noted
that the product exhibited a ‘huge
boost in fruity notes’ and new
flavors that are unique to the ‘terroir’ such as
mango, banana and passion fruit flavors. The
product has an intense cocoa taste/texture with
slightly roasted notes. Its dominant fruitiness
makes it unique. “Citrusy, green and fresh floral
notes bring a powerful freshness. Notes of
brown fruits such as raisins make its fruitiness
even more complex.”
Gricha Safarian, Managing Director of Puratos
Grand-Place Vietnam said, “I have always
strongly believed that we were making the best
chocolate in the world because in Vietnam we
have the rare opportunity to grow cacao and
make chocolate from freshly harvested beans.
After years of honing, 60DAYS finally proves
it. I love how this unique chocolate reveals the
distinctive fruity notes of the Vietnam cacao
bean. What is ground-breaking is that with the
same beans and the same recipe, the flavors
of 60DAYS are expressed much richer and
stronger than a conventional chocolate. This
opens a new way in how we make distinctive
chocolate.”
Due to the dramatic improvement in quality,
experts believe this will become the paradigm
of the future.
The 60Days Chocolate was also recently
introduced in Japan. Following the successful
results in Vietnam, Puratos is also planning to
implement this new model in Mexico.
Vinamilk Green Farm fresh milk
supports sustainability
MILK
New high-grade Vinamilk Green Farm Fresh
Milk has recently been launched in Vietnam.
It is a product made of fresh milk sourced at
Vinamilk’s environmental-friendly Green Farm.
Many consumers are now more interested
in choosing ‘green’ or environmental-friendly
products. This is also the reason why Vinamilk
Green Farm fresh milk made from the Vinamilk
ecological Green Farm attracted attention
immediately upon launch. This is on top of its
light and pure taste.
Vinamilk eco-farm system stands out due to
4 factors namely natural underground water
source and ecological detention basins,
natural food sources rich in nutrients, no use
of pesticides and chemical fertilisers, and
imported purebred breeds.
“Fresh milk from the farm has a pure, light and
delicious milk flavor. This will be a gift of health
from nature that Vinamilk gives to consumers,”
said a representative of the Green Farm Fresh
Milk brand during the launch of this product in
HCMC recently.
Green Farm Fresh Milk is now available in
110ml and 180ml packaging and contains sugar
or less sugar variants. It is priced slightly higher
than UHT milk but is still cheaper compared to
the organic variants.
Asia Food & Beverages 34
ASIA
MALT DRINK
Nestle launched Plant-based Milo in Asia starting
with Malaysia
Nestle officially launched its plant-based version of Milo chocolate
malt beverage in the Asian market this year.
The new version replaces milk with almond and soy in the original
recipe while the other 2 core ingredients, malt and cocoa, remain
unchanged.
The new dairy-free Milo beverage was initially launched in Malaysia
in April, followed by several other countries in Asia. Last year, Nestle
introduced the plant-based Milo powder in Australia.
Nestle’s Head of Dairy Strategic Business Unit, Mayank Trivedi
said, “Milo is an iconic brand in Malaysia and across Asia and muchloved
across generations. We want to provide consumers with ontrend
alternatives in formats they want. That’s why we’re delighted to
launch Milo Dairy Free to support people’s lifestyle choices.”
Nestle Malaysia has also unveiled a plant-based version of coffee
mixes, namely Nescafe Dairy Free Almond Latte and Nescafe Dairy
Free Oat Latte.
According to Nestle Singapore Research and Development (R&D)
Centre Head Guglielmo Bonora, “We’re expanding our offerings
across Asia by developing a variety of great-tasting, nutritious and
sustainable plant-based products. We want to make it easier for
people to embrace plant-based alternatives in their diet while also
reducing our carbon footprint across the supply chain.”
SINGAPORE
MILK ALTERNATIVE
Micro-algae milk offers full nutrition while suitable
for lactose-intolerant consumers
Sophie’s Bionutrients, a Singapore-based next-generation
sustainable urban food production technology company has recently
unveiled the world’s first-ever micro-algae-based milk that promises
to eliminate allergies making it safe for consumption for people with
lactose-intolerance.
The product was made with Sophie’s Bionutrients signature microalgae
protein flour with the same essential amino acids as microalgae.
The flour is then homogenised with water to create the dairyfree
milk alternative.
The dairy alternative is comparable in nutritional
value to cow’s milk. However, the protein value
can be elevated by up to 50% by altering ratios
in the water-soluble micro-algae flour. The sample
alternative milk produced has a similar texture to
nut-based milk. However, it can be further refined
to mimic the creamy texture of dairy.
Sophie’s Bionutrients is the world’s first food tech
company to use microalgae and patent-pending
technologies to develop 100% plant-based and
sustainable alternative protein with the core vision
that micro-algae is the superfood of the future.
Eugene Wang, CEO of Sophie’s Bionutrients said,
“We believe in harnessing the power of nature
to build a sustainable, greener future through
environment-friendly alternative food solutions.
We believe that micro-algae is the best place to
help us achieve this. It is the superfood of the
future. Through further refinement with food and
beverage producing partners developments like
this one, the world’s first allergen-free micro-algae milk, we believe
we can transform the way we live, produce and consume food for
the better.”
As the world is moving towards a 9.7 billion population by 2050, there
is a growing pressure to find sustainable and cost-effective alternative
food solutions. At the heart of all Sophie Bionutrient’s products is their
natural, neutral colour micro-algae flour made from their proprietary
strain of microalgae that can be harvested in just 3 days. Prepared
in-house in a protected environment, Sophie’s micro-algae has a
whole-wheat flour colour that can take on unlimited forms, textures or
colours. From burger patties to alternative milk, Sophie’s Bionutrients
micro-algae flour can be used to develop almost any food.
Furthermore, the micro-algae is self-sustaining and can be fed
food waste such as spent grains, okara and molasses during the
fermentation process - creating a sustainable, circular production
method. Nurturing the micro-algae in a protected environment also
allows for output 10 times higher than conventional sunshine pond
operations, reducing the cultivation costs usually associated with
micro-algae farming.
Sophie’s Bionutrients is on a mission to unleash the limitless
possibilities of nature, restore our planet and eliminate food
allergies by creating plant-based, protein-rich alternatives to meat
and seafood using microalgae, the mother of all food and plant life.
Sophie’s Bionutrients is a Foodtech 500 startup and winner of the
MassChallenge 2020.
CHINA
New Products
Mizone launched 1 st vitamin sparkling water in China
WATER
Mizone Vitamin Sparkling Drink was launched in mainland China on 1 April.
It is Mizone’s first vitamin sparkling water and contains Vitamin C, B6, B12
and nicotinamide plus dietary fiber.
One bottle of the drink can provide 11.5% of the daily required dietary fiber.
Labelled as ‘low sugar’, the product distinguishes itself from other traditional
sparkling waters with its double fruity flavors, which combines health and
good taste in a carbonated drink. It comes in 2 flavours - refreshing Lemon
& Lime Flavor and strong fruity Orange & Blood Orange Flavor. The new
product is now available at convenience stores in Shanghai.
Mizone is a brand owned by the Danone Group. Earlier on 15 April 2020,
Danone (China) Food & Beverage Co., Ltd. (Danone China) announced
plan to upgrade Mizone’s brand positioning, packaging, formulation and
taste. This will be the biggest adjustment for Mizone over the last 10 years.
As part of this effort, Mizone has proposed a new tagline ‘Mizone Forward’,
as well as promoting an active and optimistic attitude to life – ‘Dare to take
action’. This upgrade in brand proposition has positioned the brand as
younger and more modern.
Industry sources said that the domestic sparkling water market has
ballooned since 2019. At the same time, COVID-19 has raised health
awareness in consumers with ‘Joy’ and ‘Health’ being keywords for the drink
market in 2021.
Young consumers pay more attention to healthy lifestyles in the postpandemic
era. “As a leading brand in the vitamin drink market, Mizone
hopes to help young people move forward to their best states,” said Yang
Xiaofan, Marketing Director of the Mizone brand.
In a separate development, Danone has also released at the same
time, its Alpro plant-based series of coffee mate in China. During the
first Shanghai Coffee Culture Week, professional baristas were seen
making cups of plant-based coffee and tea from the Alpro products
at the Danone booth.
Chen Yiying, Senior Vice President of Danone Asia Dairy Products
and Plant-based Products, said that the coffee culture in China has
been booming. Meanwhile, Chinese consumers’ health awareness
and demand for plant-based foods are also growing, and consumers
are no longer satisfied with that single combination of milk with coffee.
The low-fat and low-sugar Alpro products will provide a new
generation of consumers with more quality, sustainable and
diversified health options.
NUTRITIONAL SUPPLEMENTS
Probiotic manufacturers swarming into mainland
China
With a population of more than 1.4 billion people and a rapidly growing
middle class, China is a hot bed for manufacturers of health and nutritional
supplement products, especially when there is a rising consumer trend in
favour of such products amidst the ongoing pandemic threat.
Recent entrants include Swedish-based BioGaia, which is launching its
bone health probiotic, Osfortis into China via cross-border e-commerce
(CBEC) channel. China will be the 1 st Asian market for the product.
Osfortis contains the proprietary lactic acid bacterium Limosilactobacillus
reuteri ATCC PTA 6475 and vitamin D3 for the maintenance of normal
bone health. This will add to its existing supplement products available in
China. Target consumers for this capsule product include health conscious
individuals who want to prevent osteoporosis from developing.
BioGaia saw a 20% year-on-year growth in China mainly from online
sales from 2019 – 2020 period. This is supported by China’s government
promotion of probiotic use, as a recommended alternative treatment for
severe and critical COVID-19 cases.
In addition, a clinical trial conducted in elderly women found that the
probiotic strain used in Osfortis could reduce the loss of bone mineral
density as compared to the placebo.
Earlier in April, another Swedish probiotic firm, Probi is also expanding its
presence in China via a new agreement with China National Pharmaceutical
Foreign Trade Corporation (Sinopharm). Under the partnership, Sinopharm
will be launching probiotic products for immune health, bone health, and
iron absorption with probiotic strains backed by Probi’s research and clinical
data. The probiotics will be launched under a new brand.
Probi’s bone health portfolio consists of Probi Osteo, which combines the
proprietary strains Lactiplantibacillus plantarum HEAL9, Lactiplantibacillus
plantarum HEAL 19, and Lacticaseibacillus paracasei 8700:2.
For immune health, the company’s portfolio consists of Probi Defendum,
which combines Lactiplantibacillus plantarum HEAL9 and Lacticaseibacillus
paracasei 8700:2 strains.
Sinopharm subsidiary, Sinipharm Xingsha Pharmaceutical had also sealed
a probiotic business deal with Japan firm Morishita Jintan last year, where
it became the latter’s general agent in China in distributing probiotics under
the brand Bifina.
35 Asia Food & Beverages
New Products
THAILAND
SEAFOOD
Thai Union launches SEALECT Gold premium mackerel fillets in Thailand
In what was considered as another first for
the Thai market, Thai Union Group (TU) has
launched SEALECT Gold premium skinless
and boneless mackerel fillets.
This premium canned mackerel comes in
2 flavors namely mackerel fillets in tomato
sauce or in spicy tomato sauce. The
introduction of SEALECT Gold premium
mackerel fillets is in response to demand
among Thai consumers for skinless and
boneless mackerel fillets.
Saran Rattanarungruengchai, General Manager of Emerging Market, Thai Union Group
said, “SEALECT continues to develop its products in line with what customers want, which is
increasingly more healthy and nutritious products, especially during the COVID-19 pandemic
when people are more concerned about their health while spending more time at home.
Canned fish is becoming even more popular in the kitchen, and we heard that consumers
wanted mackerel fillets without the skin and bone, so we are now providing that. SEALECT
Gold premium mackerel fillets is another good example of how consumers are at the center
of our product development.”
SEALECT skinless and boneless mackerel fillets are rich in EPA, Omega 3,6,9 and can
easily be used in delicious, nutritious recipes. The 90g cans of mackerel fillets are now
available at leading supermarkets and convenience stores, and online stores in Thailand for
just Bt 38 (US$1.21).
COFFEE
Nestle launches vitamin-rich Nescafe Triple Espresso in the RTD coffee
segment
Nestle (Thai) Ltd has launched a new coffee product,
Nescafe Triple Espresso, after a long hiatus due to market
contraction last year brought by COVID-19 pandemic.
Thanatorn Punpanishgul, Nestle (Thai) Senior Marketing
Manager for RTD Coffee said that due to the pandemic
last year, consumer lifestyles faced a major shift as more
people stayed and worked at home which led to a 5%
decline in Thailand’s Bt 12 billion (US$382 million) RTD
coffee market in 2020. Thailand’s RTD coffee market
comprises of coffee mixed with milk (95%) and black
coffee (5%). Prior to the pandemic, this market grew at
an average 2% annually.
In the 1 st quarter 2021, the market showed positive
recovery which led to the decision to launch this new
product in mid-April. Thailand is also the first country to
launch Nescafe Triple Espresso.
The new product is an initiative of Nestle’s Thai team,
which was developed to meet the demand of new
generation consumers who need refreshment and to help them stay alert. Nescafe Triple
Espresso has a rich and mellow taste, and is vitamin-rich containing real milk combined
with vitamin B2, B3, B6, vitamin D and niacin to strengthen and regulate both the immune
and nervous systems. It will target the upper mainstream segment, including energy drink
customers and gamers. He said Thailand has around 46 million gamers, of which 88% play
games on their mobile phone.
Nestle has allocated Bt 100 million (US$3.19 million) on a marketing campaign to connect
with these new generation of coffee consumers. Thanatorn said, “This product will be a
game changer to stimulate consumption of ready-to-drink coffee this year and marks
Nescafe’s biggest product launch in the first half of 2021.”
Nescafe Triple Espresso is sold at convenience stores and supermarkets in a 220ml can
packaging for Bt 20 (US$0.64).
At present, Nescafe is the market leader in the country’s coffee market. However, it is
ranked 2 nd in the RTD coffee segment with 36% market share, trailing Ajinomoto’s Birdy.
Nestle is optimistic that Nescafe Triple Espresso will bring it closer to gaining the 1st spot
in the market.
PHILIPPINES
BAKERY
Department of Science & Technology creates enhanced Nutribun to
fight COVID-19
In a country like the Philippines, where more than 20% of its population is living below the
poverty line, the need for good nutrition in its population is essential to ensure a continuous
fight against the pandemic.
In this instance, The Philippines’ Department of Science & Technology – Food and Nutrition
Research Institute (DOST-FNRI) has recently launched a new variant of Nutribun, a vitaminpacked
bread which now contain carrots apart from additional nutrients like calcium,
potassium and zinc.
The Department said that “The enhanced nutribun is one of the DOST-FNRI’s answers
to the call of the Department of Social Welfare and Development’s (DSWD) Memorandum
Circular No. 12 Series of 2020, or the Guidelines in the Implementation of the Supplementary
Feeding Program During Community Quarantine or Other Similar Emergencies.”
The department has encouraged manufacturers and local bakeries to check the recipe and
produce their own enhanced nutribun that is easily accessible to children nationwide, giving
them a healthier and more delicious meal alternative.
DOST-FNRI is also looking at producing functional food products like granolas with prebiotic
ingredients.
Regulations News
THAILAND
PHILIPPINES
Saudi Arabia approves Prime as
sole Halal-certifying body in the
Philippines
FOOD BEVERAGE
Thailand expedites registration of GI
products in 4 Asian countries
Thailand is actively working to speed up the
registration of geographical indication (GI) products
in 4 countries namely in China, Japan, Vietnam and
Malaysia.
As one of the biggest regional food producer,
Thailand hopes to prevent foreign vendors from
claiming ownership over Thai products while the
country is increasing its exports in these markets
during the pandemic. The Department of Intellectual
Property Deputy Director-General Prayoth Benyasut
said applications for the registration have already
been sent to authorities in China, Japan, Vietnam
and Malaysia.
The Thai products affected include Thung Kula
Rong Hai jasmine rice, Pakpanang Tub Tim Siam
pomelo and Phetchabun sweet tamarind in China;
Doi Chaang and Doi Tung coffee, as well as Huay
Mon pineapple in Japan; Phetchabun sweet tamarind
and Lamphun golden dried longan in Vietnam; and
Thung Kula Rong Hai jasmine rice, Sangyod Muang
Phatthalung rice, Pakpanang Tub Tim Siam pomelo
in Malaysia.
According to Prayoth, the GI registration in foreign
countries will help protect Thai products that originate
from certain provinces. The unique characteristics of
these products are attractive to both Thai and foreign
buyers. The registration will also boost exports of
Thai GI products, which are expected to see an
increase in exports by 5 to 10% this year.
HALAL FOOD
Prime Certification and Inspection, a subsidiary
of the UAE-based Prime Group of Companies,
has been recognised by the Saudi Food and
Drug Authority (SFDA) making it the one and only
Philippines Halal-certifying body authorised to give
certification for food exports bound for Saudi Arabia.
This decision comes after new regulations
were implemented by the Saudi government last
November 2020 stipulating that meat, poultry and
their derivative products can only be exported to the
country if they have Halal certificates issued by a
body accredited and approved by the SFDA, which
regulates food, drug, and medical devices both
imported and domestic for the conservative Islamic
country.
With the approval of the SFDA, Prime Certification
and Inspection serves as the only Halal certifier in
the Philippines with direct ties to the kingdom. A
leading quality and compliance solutions provider
specialising in helping Philippine brands export
Halal products to Muslim-majority markets, Prime
Certification and Inspection has certified 22
multinational companies and homegrown Philippine
brands.
Dr. Mary Jane Alvero Al Mahdi, Group CEO, Prime
Group of Companies said, “Prime Certification and
Inspection - Asia Pacific is proud to be the first
and only Halal certifying body in the Philippines
recognised by the Saudi Food & Drug Authority.
With growing demands brought about by the rapid
increase of Muslim populations worldwide, we look
forward to providing the first step for Filipino brands
to penetrate this growing global market.”
Prime Group, headquartered in the UAE, is a
leading quality and compliance solutions provider in
Asia, Middle East and North Africa. It has established
a name as the most trusted 360° quality and
compliance solutions provider in the region, having
issued millions of reports and certificates.
Asia Food & Beverages 36
MALAYSIA
Spritzer passes test for Plastics Contaminants
CHINA
WATER
To counter research by the State University of New York (SUNY-
Fredonia) entitled ‘Synthethic Polymer Contamination in Bottled Water’
which showed that many international brands of bottled water were
contaminated with microplastics, Spritzer Malaysia (Spritzer), the
country’s best-selling natural mineral water, has released the results of
an analysis conducted by a reputable independent laboratory, SIRIM
Berhad, to confirm that no microplastics has been detected in its silicarich
natural mineral water.
The laboratory has recently conducted tests from a sample taken from
a 600ml Spritzer Natural Mineral Water bottle produced on 21 January
2021 and did not detect any synthetic polymers or microplastics, even
when examined under 50 times magnification.
This findings from the State University of New York (SUNY-Fredonia)
were later confirmed by the US National Oceanic and Atmospheric
Administration and the European Chemicals Agency as very small
fragments of plastic originating from various industrial and manufacturing
processes and products that can contaminate natural ecosystems.
The tests were done by SUNY-Fredonia covering 11 globally sourced
brands of bottled water purchased in 19 different locations in 9 countries
around the world. The SUNY-Fredonia report noted that there was an
average of 325 particles per litre, with concentration ranging from zero
to more than 10,000 particles in a single bottle. From the samples, the
report found that 93% were found to contain microplastics.
Most notably, the SUNY-Fredonia tests showed that microplastics
were detected in the samples from these brands ranging from 6.5 uM
(micrometre) to 100 uM in sizes. However, the recent analysis conducted
by the independent laboratory showed that in these ranges and even up
to 1uM, no microplastics were detected in Spritzer Natural Mineral Water.
The findings from SIRIM are a powerful affirmation of the stringent
quality processes practiced by Spritzer, and a testament to its efforts in
ensuring that the pristine 330-acre site in Taiping, Perak located near
a tropical rainforest from which the Company draws the sources of its
natural mineral water, is kept clean and safe for consumption.
Spritzer has previously won awards for the refreshing taste of its mineral
water as well as various certifications for product processing, and
is committed to protecting the integrity, quality, safety and purity of its
natural water source with automated and advanced bottling technology
used to ensure that it is free from pollution.
Silica-rich mineral water has also been found to be beneficial to health, as
research by UK-based Keele University has found. Those who consume
1- to 1.5 litres of Spritzer Natural Mineral Water can reduce or eliminate
aluminium toxins found in their bodies as the silicate acid in the natural
mineral water bonds with the toxins that are then passed out as urine.
In Asia, leading brands from China, India and Indonesia were part of the
2018 study by SUNY-Fredonia. Major brands from the US and UK like
Aquafina and Evian were also studied. Spritzer was not in the study but
it wanted to reaffirm its mineral water quality to counter this 2018 study.
MAQIS seizes 24,000kg Pet Food for failing to meet
import permit
PET FOOD
Malaysian Quarantine and Inspection Services Department (MAQIS)
has recently seized over 24,000kg of pet food from Turkey and France,
worth RM177,000 (US$42,700), as they did not meet import permit
conditions at Westport, Port Klang.
MAQIS Director Zamri Hashim said during the department’s routine
inspection that 2 containers carrying cat and dog food were found not
complying with the department’s import conditions as stated on the
containers’ permits, licences and declarations. It is an offence under
Section 15(1) of the Malaysian Quarantine and Inspection Services Act
2011 and offenders can be punished under Section 15(2) of the same law
and upon conviction can be fined not exceeding RM100,000 (US$24,120)
or imprisonment of up to 6 years or both.
Zamri said there will be no compromise on biosecurity items brought
from overseas, in ensuring agricultural commodities adhered to stipulated
conditions and regulations.
Genki Forest apologised to consumers for misleading
packaging
One of China’s best-selling beverage brands, Genki Forest had
apologised on its official Weibo account for misleading consumers with a
‘0 sucrose’ label on its milk tea packaging.
In mid-April, Genki Forest issued an apology for not clarifying the
difference between ‘0 sugar’ and ‘0 sucrose’. It also reminded consumers
TEA
US$108 million Milk Tea Franchise scam in China
More than 90 suspects have been caught recently for allegedly running
a milk tea franchise scam under the name of ‘Chazhilan’ near Shanghai,
China.
It was reported that the suspects profited over Rmb 700 million (US$108
million) from the alleged scam. The police started investigations after
finding a number of milk tea franchises in Songjiang District under the
same brand name were closed shortly after opening.
According to one of the ‘Chazilan’ shop operators, he saw the online
advertisement on franchising a famous milk tea chain, and contacted the
agency. He was later then told the advertised franchise program had no
more slots for newcomers, and was instead introduced to the ‘Chazhilan’
milk tea brand, claimed to be owned by the same company of the famous
brand. Chazhilan was advertised as a promising brand, and the agency
promised full supply, training and advertising services for franchises. He
paid the agency Rmb 100,000 (US$15,600) for the franchise and opened
his milk tea shop. However, the agency failed to deliver the promised
services and within 3 months he closed his shop.
The police later discovered that Chazilan franchise was a hoax.
FRUITS/VEGETABLES
Human Rights abuse in Xinjiang led to freeze in tomato
imports by Japanese ketchup producer
Leading Japanese ketchup producer, Kagome Co has stopped importing
tomato paste from China’s Xinjiang province, citing the country’s rights
abuses against Uyghur as a cause of concern.
Kagome however added that this decision was made on top of its
growing concerns over costs and quality. Kagome is believed to be the
first major Japanese corporation to stop doing business with the region
over the Uighur issue.
Kagome decision came after several western brands, including H&M and
Nike, halted sourcing materials made in the region, which has resulted
in backlash from Chinese consumers. The issue of detention and forced
labour of Uighurs has drawn the attention of the international community.
Kagome however added that this is not the only reason for stopping the
procurement. Tomato paste from the Xinjiang region accounted for only
about 1% of all of Kagome’s production. The company also considers
cost, sustainability and other factors when deciding where to get its raw
materials.
Beijing (China) on the other hand has resorted to boycotting Western
companies which have voiced their concerns over the use of Uighur
forced labour in their supply chains.
Abbott fined for baby formula flavoring
Regulations News
that milk tea is not sugar-free since it contains lactose.
The sweetness of the beverage comes from sugar substitutes like
erythritol and stevioside that taste like sugar but have zero calories.
Genki Forest had already started rolling out revised packaging in
February, and all products produced as of 18 March stated ‘low sugar
and low fat’ instead of ‘0 sucrose and low fat’.
In addition, all the company’s milk tea produced since 20 March shall no
longer contain crystalline fructose, but only milk sugar and natural sugar
substitutes that do not play a part in human metabolism.
According to the Weibo post, the company will refund Rmb 20 (US$3) to
those who have purchased milk tea products on its official e-commerce
platform.
The Beijing-based Genki Forest manufactures bottled beverages
ranging from flavored sparkling water to milk tea and Oolong tea, and
has become popular with ‘zero sugar, zero fat and zero calories’ as a
major selling point. The brand has surpassed Coca-Cola and Pepsi in
sales during major online shopping festivals.
MILK
Abbott Shanghai has recently been fined Rmb 9.09 million (US$1.41
million) after a banned flavoring essence was found in its baby formula.
Some of its Similac baby formula for infants less than 6 months old
contained 171.6 micrograms of vanillin per kg, according to sample tests
made by inspectors of China’s top market watchdog late last year.
Flavoring essence is banned in formula for babies less than 6 months
old, according to China’ food additives standards. The substandard baby
formula was imported and sold by Abbott. So far, more than 45,000 tins
of the baby formula have been imported, of which more than 44,000 have
been sold. Abbott said it has launched a recall.
Shanghai Administration for Market Regulation has fined the company
as well as confiscated its illegal earnings from the earlier sales totalling
Rmb 3.44 million (US$539,000).
In late-2020, Abbott was fined more than Rmb 2 million (US$313,000)
for violating China’s advertisement law.
37 Asia Food & Beverages
Regulations News
VIETNAM
FOOD BEVERAGE
Vietnamese food brands ‘stolen’ in
overseas market
Unlike its Thai counterparts, Vietnam lacks
trademark registration and protection with a
slew of its products ended up being ‘stolen’
by other manufacturers or distributors in other
countries.
One example is Meet More Coffee products
from Vietnam. According to its CEO Nguyen
Ngoc Luan, in 2018 the company wanted to
export its products to Korea but ended up
surprised when faced with difficulty in registering
the brand as the same name seemed to have
been registered by another company. Luan
later found that it was the distributor of Meet
Me products in South Korea which registered
the brand. At that time, Luan had to submit
documents to prove that Meet Me was a
Vietnamese brand with the registrant being the
distributor and buyer of its products in South
Korea. It was only when the distributor agreed
to withdraw its intellectual property registration
which paved the way for the registration
approval by the relevant Korean agency.
Many Vietnamese companies are still
reluctant to register their brands as they have no
intention to compete in the international market,
in addition to the hassle of engaging advisers
or lawyers to go through the registration
procedures.
Luan did a mini supermarket survey in
Australia in 2020, and he found that a lot of
Vietnamese food brands had been stolen. He
said, “Vietnamese pho has been stolen by the
Chinese, while fish sauce by Thai businesses.
Losing brands to foreign hands is no longer
a surprise. The inappropriate attention to
branding puts Vietnamese businesses at a
disadvantage in international trade channels.”
A lawyer from HCMC Bar Association said the
application for IP registration is implemented in
accordance with the principle of ‘first come, first
served’ basis with latecomers having to submit
documents to prove that the products belong to
them. Indeed, losing brands is the heavy price
that Vietnamese enterprises will pay for their
inappropriate attention to trademark register.
Brand registration is a hassle as the law
stipulates that a particular brand is only
protected in the territories where the owner
registers. As such, when these brands go
overseas, they also need to be registered
again for international protection. It cost a few
thousand dollars to get the brand registered in
any market, still much cheaper than going into
possible dispute settlement.
Another of Vietnam’s product, ST25 Rice
is also at risk of falling into the hands of
US companies which have filed for brand
registration.
Tran Le Hong, Deputy Head of the National
Office of Intellectual Property (NOIP), said
that national brands need to be protected.
However, Vietnam is lacking agencies in the
international market that can help Vietnam
businesses register their trademarks. There is
a significant red-tape in brand registration for
Vietnamese products. In most of the developed
countries, brand protection certificates will
usually be issued within 6 months from the date
of application, whereas in Vietnam, it might take
2 years or more to obtain the certificates.
Packaging & Technology News
GLOBAL
New cutting, dicing solutions from Urschel
CUTTING EQUIPMENT
Urschel, the global leader in industrial food cutting technology, has recently launched 2 new
equipments particularly for the cheese (dairy) and fruits/vegetables segments.
Affinity® Integra-D Cheese Dicer
Integra-D is Urschel’s latest addition to the Affinity
Urschel Affinity@ Integra-D Cheese Dicer
line. The high-performance dicer features operation
at the push of a button. The machine is designed
with the cutting zone completely separate from
the mechanical zone. Hinged access panels ease
maintenance and part changeovers. The dicer is
powered by a 10 horsepower (7.5 kW) motor.
According to Scott Klockow, Mechanical
Design Manager, “Superior sanitation, quick part
changeovers, and heavy duty are terms customers
use to describe the new Integra-D cheese dicer.
Customers replacing an RA machine with the Integra-D have experienced 20 to even 50% higher
capacities due to the larger infeed and increased horsepower.”
The new 3-dimensional dicer accepts products up to 4.5 inches (114 mm). Product is delivered to
a feed hopper and enters a rotating impeller. Centrifugal force holds the product against the inside
of the case. Impeller paddles carry the product past the slicing knife. An adjustable slice gate at the
top of the case determines the slice thickness.
Slices pass between the rotating feed drum and feed spindle and then enter the circular knives
where they are cut into strips. The strips pass directly into the crosscut knives where the final cut
is made to create a precision dice. The stripper plate removes product from the spaces between
the circular knives and acts as a shear edge for the crosscut knives. Strip cuts can be produced by
removing the crosscut knife spindle.
Tim O’Brien, Executive Vice President of Sales and Marketing concluded, “Following the success
of our large Affinity® cheese dicer, the new Integra-D offers processors all of the advantages
in a scaled-down footprint. The Integra-D provides the latest in precision cutting, and a turn-key
upgrade for processors with Urschel RA series machines. Updating a line could not be simpler, and
the benefits derived from higher yields is a bonus.”
TranSlicer® 2520 Cutter
Building on the original TranSlicer that revolutionised the commercial, fresh-cut salad industry,
Urschel introduces the new TranSlicer 2520 Cutter. The TranSlicer 2520 processes a variety of
products for the food processing industry such as leafy vegetables, celery, leek, carrots, cucumbers,
and fruits.
Anthony (Tony) McCracken, Urschel
engineer behind the machine design
said, “Customers really appreciate the
savings. On average, TranSlicer 2520
customers report saving 25 minutes
per washdown/cleaning procedure
compared to the machine that they
replaced.”
Tony added that the overall design of
the 2520 sets itself apart. McCracken
explained, “The concept encompasses
the next generation of sanitation to greatly
reduce cleaning times. Accessibility to
every area of the machine expedites
washdowns. All surfaces are engineered
to promote water drainage. Stand-offs
located throughout minimise overlapping
Urschel TranSlicer® 2520 Cutter
joints and improve inspection and
decrease cleaning times. IP69K rated IEC (International Electrotechnical Commission) electrical
components incorporated throughout machine withstand high pressure, high temperature
washdowns.”
Urschel designs, manufactures and markets precision, high capacity cutting equipment for the
food processing industries since 1910. Urschel delivers a complete network of sales and service
around the globe wherever food is commercially processed. Urschel machinery and the bulk of all
critical parts are manufactured on-site, under one roof to maintain optimal quality.
Urschel remains dedicated to providing the latest in food cutting technology to benefit regional and
global scale customers. Urschel also offers free test cutting. Customers may witness test cutting of
their product in-person, via video, or live remotely. A comprehensive report is generated for each
test cut for customer consideration.
Contact Urschel at info@urschel.com to learn more.
Asia Food & Beverages 38
39 Asia Food & Beverages
Packaging & Technology News
CONVEYING EQUIPMENT
Horizontal Motion Conveyors from Heat and Control offers gentle motion with long-life, easy
maintenance
Conveyors have transformed food manufacturing and have become instrumental in the design of efficient production lines. Until the 1990s,
vibratory/shaker conveyors were the industry standard for potato product manufacturing. These rugged but loud conveyors had countless
applications, but though found in many industrial plants, they were not ideal for all industries.
Blake Svejkovsky, Heat and Control® General Manager - Product Handling Systems, recently shared with AFBR the impact of the horizontal
motion conveyor on the potato chip and french fry industry. The following are excerpts from the interview:
Horizontal Motion Conveyors from Heat and Control
offers gentle motion with long-life, easy maintenance
I had worked in the food industry for a long time and recognised the
need for a robust, maintenance-free, quiet conveying solution that
was also gentle enough to avoid product breakage, segregation, and
loss of coatings. In 1995, my father and I introduced the FastBack®
horizontal motion conveyor (also called horizontal differential-motion
conveyor). Since its introduction, the innovative horizontal motion
conveyors have emerged over vibratory/shaker conveyors and now
account for most of the non-processing sanitary conveyors used in
french fry and potato chip applications.
The reasons are clear: the gentle motion technology improves the
finished product quality delivered to clients by eliminating product
breakage, reducing or eliminating seasoning and coating fall-off,
reducing sanitation down-time which increases productivity, and
reducing ambient noise levels, positively impacting employee
welfare.
What do Potato Processors expect from Conveying
Systems ?
Potato processors typically expect their vendors to offer excellent
full support and to have deep potato industry knowledge, starting
from knowing product traits to system design, including processing
and handling, right through to packaging for the full life of the
equipment.
The potato market has several unique challenges and these include
high volumetric capacities (40 tonnes/hour for the french fry industry,
3,000 kg/hour and more for the potato chip market), as well as many
common operational challenges such as ever-increasing labour
costs, manpower shortages, operator trainings, and production
demands that make uptime essential.
Generally, there is a strong need for engineering and technical
support during and after system installation and commissioning, so
it is important to choose a company with strong global support.
How do Horizontal Motion Conveyors benefit Potato
Processors ?
Beyond the main benefits of gentle motion and low breakage,
horizontal motion conveyors deliver an extremely long life, providing
extended operating hour intervals between maintenance items. For
example, the Heat and Control FastBack typically provides more
than 100,000 operating hour intervals between items, and its IP65-
rated systems facilitate both wet and dry sanitation with their minimal
surface area and smooth, easy-to-wipe-down enclosures. Horizontal
motion conveyors build on key performance metrics critical to the
potato industry, including product quality, product yield, total cost of
ownership, uptime, labour reductions, and total system efficiency.
What other things/traits do Potato Processors
consider when selecting Conveying Systems ?
Quality, reliability, ROI, sanitation, uptime, response time, and value
are universally sought characteristics regardless of a company’s
geographic location. For many, one of the key considerations is ROI,
and horizontal motion conveyors provide high value up front, low
operating costs, exceptional longevity, and superior performance,
especially in the areas of product efficiency, packaging efficiency,
and overall uptime.
What role does automation play in market success ?
One of the biggest challenges to potato processors is the cost
of training and the turnover for these positions, even prior to the
pandemic. Efficient automation is a key piece of market success
with ongoing labour challenges. Automation allows potato processor
staff to operate multiple systems and makes the line more efficient
if executed correctly, allowing companies to take care of their very
best operation talent. Quality equipment makes average operators
good and good operators great, allowing producers to continue to
evolve in their operations.
Is Energy Efficiency a major consideration ?
Saving energy and other resources, as well as obtaining a
higher throughput, have always been significant factors, but their
importance are a growing area of concern around the world. As a
total unit operation, conveying systems account for a very small
percentage of overall factory energy usage (less than 1% in many
cases) however even this low percentage is scrutinised.
Since its establishment more than 70 years ago, Heat and
Control has always been pressing forward and innovating, so
they have been proactively pursuing energy savings, in line with
the company’s drive to continually improve. An example of this is
its use of advanced electrically driving accessories, such as the
patented Revolution® Gates in lieu of pneumatic gates, which
use 4X less energy. The Revolution Gate provides a safer gate
system and is designed to prevent product breakage, to eliminate
maintenance-heavy pneumatics, and to deliver proportioned
product for improved packaging feed and efficiency and addresses
food safety with its leak-proof design that eliminates all concerns of
cross contamination.
Heat and Control is a privately-owned company with a global
team from 10 manufacturing facilities, 11 test centres and more
than 30 offices globally. It has built an extensive knowledge bank
and developed a wealth of experience and expertise, with strong
technical support from a network of engineers, food technicians,
field service technicians, skilled tradespeople, and support teams
providing food manufacturers with confidence to achieve production
goals.
Asia Food & Beverages 40
168 motion plastic innovations on virtual display at igus 2021 Motion Plastics Show
igus Motion Plastics virtual-physical trade show in Cologne enters its 2 nd year, with this year
having a record 168 motion plastic innovations on display for visitors.
The virtual-physical booth has also won iF Design Award for its interactive capabilities.
According to igus CEO Frank Blasé, “This is the 2nd year without physical trade shows. This
time we can start the presentation of our new products at full digital speed.” The new trade
show stand, at 400 sq.metres, has been optimised based on experience gained in virtual
customer consultation and tours last year.
Solutions for various industries can be seen in a separate area and these include the spacesaving
and telescopic triflex TRX energy chain on robots, RBTX.com platform for low-cost
robotics, as well as the iglidur I151 tribo-filament for FDA-compliant, detectable wear-resistant
parts for food technology.
The goal of RBTX.com platform is to enable manufacturers to open up new sales channels
for their low-cost automation products and reach new target groups. Christian Batz, Head
of igus digITal said, “The TRBTX.com concept intended for companies, start-ups, research
institutes and mechanical engineering companies offers fast, customised robot solutions at
low starting costs of just a few thousand euros and with short amortisation times. What we
are talking about here is a low-risk way of entering the era of automation and investing in the
competitiveness of tomorrow.” In future, the platform is also intended to enable configuration
of the robot mechanics, beginning with gearboxes, joints and connecting parts.
Meanwhile, igus new triflex TRX energy chains are widely used in the industry for fail-safe
Packaging & Technology News
MOTION PLASTICS
RBTX, a platform that brings suppliers and users of
low-cost robotics together
guidance of cables and hoses on robots. Retraction systems have so far been used on the third axis to ensure that no loops are created
during the movement of the energy chain system which could hinder the robot. Jörg Ottersbach, Head of the e-chains Business Unit at igus
GmbH said, “With TRX, we created a space-saving chain that can be fixed directly and compactly on the third axis. The energy supply twists
into itself, lengthens and shortens spirally as in a telescopic pull-out, by up to 40 per cent.” Compared to other retraction systems, the user
saves up to 83% weight and requires less than half the space. In this way, the performance of the robot can be further improved, and costs
are significantly reduced by dispensing with an additional retraction system.
The issue of plastics sustainability is now even more visible and is given a central position at the trade show.
igus show stand has hosted more than 55,000 visitors from all over the world, since it is freely accessible. Visitors can book their virtual tour
with an igus expert simply by clicking to the following link - https://content.communication.igus.net/en/contact_website
The virtual-physical trade show stand is an important component of a digital igus concept that allows users to find the right lubrication-free,
maintenance-free motion plastics for their specific requirements even faster. For instance, machine design and tutorials can be completed
virtually with igus consultants, online seminars from the online seminar studio provide additional assistance, and the interactive digital
catalogue variant also provides additional information with access to white papers, blog articles and explanatory videos.
41 Asia Food & Beverages
Packaging & Technology News
Secure-fitting closure from BERICAP that regulates
pressure build-up within bottles
CAP/CLOSURE
Safe Venting: a future-proof BERICAP innovation
to enhance the safety and sustainability of
standard and tethered closures.
Imagine taking a sip from
a bottle of flavored milk or
juice, re-closing it and putting
it back on the table or window
sill. What happens next? The
beverage begins to ferment
and internal pressure starts
to build up inside the bottle,
which is potentially a hazard
when you try to open the bottle
again. The new BERICAP
3438 - 38mm closure for
dairy and juice beverages -
solves this problem with an
innovative venting technology.
Unintentional fermentation has long been a known
issue with certain beverages. With conventional nonventing
sealed closures, internal pressure can build up
to 5 bar. When someone opens a bottle with this kind of
internal pressure, the closure can ‘missile off’ loudly and
potentially cause injury to the consumer. At the same time,
the beverage can foam out uncontrollably. An unpleasant
experience like this might well dissuade the consumer from
buying this brand of beverage again.
BERICAP has the solution.
Safe Venting regulates over-pressure
The new BERICAP 3438 has
patented its ‘Safe Venting’
technology which eases pressure
build-up inside the bottle to a safe
1-2 bar. BERICAP’s double-seal
protection has proven effective
in preventing ingress/egress
through its closures, making their
closures very secure. With this
Safe Venting technology, pressure
reaching a certain level inside
the bottle (due to unchecked
fermentation) is released through
a venting slot in the closure
which shuts again immediately
afterwards, thereby providing a
safe-valve effect. This prevents
the closure from ‘missiling off‘ the bottle when it is reopened,
and also inhibits foaming.
Meanwhile, BERICAP has conducted tests for its BERICAP
3438 which revealed the following findings in comparison to
conventional 38mm closures:
Trailblazer for tethered closures
The new BERICAP 3438 is available with a standard tamperevident
band or as a tethered closure, giving manufacturers
in Asia the freedom to select a custom-designed closure for
every product. This is particularly important for manufacturers
exporting to the European Union (EU) who have to comply with
the European Parliament’s Single Use Plastics (SUP) Directive
of 2019. The SUP requires single-use beverage container
closures to remain attached to the bottle after opening until their
disposal in order to reduce plastic waste from 2024 onwards,
and all companies affected must switch to tethered caps by July
2024 at the latest.
“The BERICAP 3438 ClipAside is a future-proof solution
that allows manufacturers to make timely preparations for full
compliance with the new legal requirements,” said Eddy Quah,
General Manager of BERICAP Malaysia. BERICAP’s tethered
closures are designed for quick switch-over from standard TE
band closures at short notice to ensure minimal disruption in
production. When ready to launch, BERICAP only needs to
change the cut geometry from the tamper-evident band to the new
tethered geometry. “This flexibility in production line conversion
accelerates change-over and will help manufacturers overcome
the challenges associated with conversion to tethered closures
more easily,” added Quah.
In summary, the new BERICAP 3438 presents 2 solutions
for beverage manufacturers – Safe Venting technology for
enhanced consumer convenience and safety, as well as a
fast and more cost effective means of switching to tethered
closures. The patented Safe Venting technology eases pressure
build-up (due to the fermentation of the beverage) inside a reclosed
bottle, preventing the closure from ‘missiling off’ and
the beverage from foaming. The new lightweight BERICAP
3438 meets present day sustainability requirements and offers
consumers a secure and convenient closure.
To find out more, contact the nearest BERICAP
representative or visit www.bericap.com
Pack
size
Conventional
38mm
closure
BERICAP
3438
Remarks
0.5L bottle
1.5L bottle
3.6 bar
4.0 bar
2.0 bar
1.6 bar
Over-pressure
reduced & no
foaming with
Bericap 3438
Asia Food & Beverages 42
Packaging & Technology News
CHEESE PRODUCTION LINES
Tetra Pak introduces 14 state-of-the-art production lines
for Cheese Manufacturers
Tetra Pak has recently announced the development of 14 new Best
Practice Lines (BPLs) for cheese manufacturers, with the latest one
launched specifically for Cottage Cheese. The other cheeses that will
benefit from these BPLs include Mozzarella, Semi-hard cheese, Cheddar,
and Fresh cheese production. Together, these cheese types make up
79% of all cheese volumes and have a CAGR of 3% (2021-2025).
Leveraging on Tetra Pak’s more than 50 years of experience in the
cheese category, which is also the biggest dairy food segment in the world
at 42% share (27 billion kg), the new BPL concepts provide a complete
production solution for customers, optimised to fit their needs. The
processing lines utilise proven equipment combined with industry-leading
expertise to create a safe and easy route to profitable cheese production
with a higher yield, while incorporating the traditional cheesemaking
techniques. The hygienic production process enables a longer product
shelf life, as well as consistent and replicable quality. Sustainability is
also a factor, with solutions focusing on reducing water, steam and power
consumption.
Fred Griemsmann, Vice President Cheese & Powder Systems at Tetra
Pak said, “Cheese is consumed on every continent around the world,
and consumer appeal shows no signs of abating. In fact, it’s quite the
opposite.
We’ve expanded and deepened our expertise and knowledge over the
last decade, consolidated our proficiency and sites in the US, and recently
invested €25 million (US$30.6 million) to create a world-class cheese
production centre in Poland. With 50 years of expertise, we are the only
supplier for complete solutions from milk intake, cheese production,
through to packaging. This provides us with a sophisticated toolkit that
enables us to tailor solutions to be completely suited to the customers’
needs, and we are so confident in these new Best Practice Line solutions
that they come with performance guarantees.”
The most popular cheese is yellow cheese, accounting for a 34% share of
the global cheese volume, and includes both hard and semi-hard cheese
varieties. The Tetra Pak® draining belt portfolio provides continuous
production of fused and stirred Cheddar and Pasta Filata cheese types.
These enclosed belt systems are designed to automatically drain, acidify
and texture, mill, salt and mellow cheese curd, similar to the traditional
cheese method. Fines from whey are captured by a fines saver screen
integrated in the belt machine maximising yield. This design allows for
consistent curd production resulting in uniform acidity, moisture, salt
concentration and loading rate.
The second most popular cheese category is Mozzarella. With a focus
on yield improvement, product quality, and reduced environmental impact
for the production of Mozzarella, the Tetra Pak® Cooker Stretcher DDA
dry cooker uses a (patented) heated auger and dimpled heated jacket
technology to heat the product indirectly resulting in higher fat retention in
the final product. Employing 9 independent heating zones with integrated
ingredient addition capabilities, it offers producers unprecedented control
of the cooking process.
Tetra Pak´s draining and forming systems set the benchmark in the
industry. The Tetra Pak Blockformer system - where curd is compacted
in a series of vacuum and pressure relief cycles - employs an advanced
design enabling it to run Parmesan cheese as well as Cheddar cheese.
Meanwhile, Tetra Pak® Casomatic systems efficiently drain and form
semi-hard cheese and promote high-quality whey production. These
reliable systems maximise yield with a highly controlled process that
eliminates weight and moisture variations in the final cheese product.
The hygienic design enables long production runs and short cleaning
cycles to optimise uptime.
COVID-19 has shifted consumer behaviours in many ways and
cheese is no exception, with a third (36%) of consumers saying they
have significantly increased their intake of cheese throughout the global
pandemic. This is due, in part, to the fact that we are spending more
time at home, providing us with increased opportunities to eat cheese,
such as when watching TV (36%), with a drink (35%) or as a quick lunch
(35%). People are well-aware of the benefits of cheese, acknowledging
that it is healthy (56%), nutritious (51%) and high in protein (42%) and
calcium (41%).
It is apparent that there is real demand from consumers to know the
origins of their food, with an overwhelming majority (77%) expressing an
interest in the process of cheese production, specifically the ingredients
and where they are from (72%), where the product is made (52%), the
heat treatments used (41%) and the sterile production (37%). Over a third
(36%) also place particular value on environmentally friendly packaging.
Griemsmann added, “Cheese has been an essential part of our diet
for centuries and it is set to remain so for many years to come. People
are becoming more adventurous in terms of taste and texture, and
Tetra Pak has the facility to accommodate this, ensuring that there is no
compromise on the overall quality of the end result.”
WE PUT TECHNOLOGY IN MOTION
WWW.SWECO.COM
SALES.ASIA@SWECO.COM
From Sizing/Screening Incoming Raw Materials
to Safety Screening at Product Packaging,
SWECO® has been Providing Solutions to the
Food Industry since 1939. SWECO’s Global
Participation in the Food and Beverage Industry
has resulted in the Most Advanced Line of
Separation Equipment Available. The SWECO
VIBRO-ENERGY®
HX ROUND SEPARATOR
Vibro-Energy® Round Separator has become the
Industry Standard for Filtering, Sizing or
Scalping Applications.
SANITARY SCREENS ATLAS GYRATORY SIFTER LOW PROFILE FLOW-THRU XS ROUND SEPARATOR
43 Asia Food & Beverages
Packaging & Technology News
LIQUID/DAIRY HOMOGENISERS
New HLI high-pressure homogeniser ensures
cost savings, better hygiene and environmental
performance
HST Maschinenbau GmbH, part of the Krones Group
since 2014, has decades of experience in developing and
manufacturing high-pressure homogenisers and piston pumps.
These products complement Krones’ process technology
portfolio with a key process step for producing milk, milk-based
drinks, dairy products, juices and other foods at all the needed
throughput ranges.
In 2019, HST successfully launched its most powerful highpressure
homogeniser, the 355-kW HL8, which can handle
55,000 litres per hour at a homogenising pressure of 200 bar.
And now, the HLI series has been added to complement the
proven HL range. These new 55 to 90kW systems can process
up to 13,000 litres per hour at 200 bar. Presently, 3 models
are available namely HLI55, HLI75 and HLI90, all in the same
configurations as the HL series and including an option that
fulfils the European Union’s ATEX (Equipment for potentially
explosive atmospheres) Directives. Additional models for the
lower output range to 45 kW (for instance for 5,000 litres per
hour at 200 bar) are currently in development. The systems in
the new series each consist of a 3-piston high-pressure pump
with a homogeniser valve at the outlet.
The ‘I’ in HLI stands for “integrated” and underscores the
design changes implemented in the new series. A compactly
dimensioned drive design eliminates the need for additional
units or coolants, which results in substantial reduction
in operating costs for media and electrical power during
production. For example, with the HLI series, users can save
as much as 4,500 kWh in electrical power and up to 900 cubic
meters of cooling water per year (based on 6,000 operating
hours per year). A closed, space-optimised piston lubrication
function also further reduces consumption of cooling water for
the pistons, by more than 30% compared with conventional
piston lubrication.
In addition, with the right seal system, outstanding service
life can be achieved even under critical process conditions like
UHT or aseptic.
New HLI series high-pressure homegenisers from HST: particularly
suited for the production of UHT dairy products and desserts as
well as milk-based drinks, juices and vegan beverages
The homogeniser valve on HLI series has a crucial impact
on product quality. It can be perfectly matched to the required
physical stability of UHT dairy products, vegan beverages,
desserts, and fruit drinks. As a result, shelf lives of up to 12
months can be achieved without compromising the product’s
flavor. Its optimised flow conditions also make it possible to
obtain the same product quality at a lower homogenising
pressure.
HLI series also offers ecological benefits as its flow-optimised
surfaces and hygienic seal design enable the new homogeniser
valve to achieve top CIP cleaning outcomes with only a small
amount of cleaning solution. All areas that come into contact
with the product are made in accordance with the latest hygiene
requirements.
The HLI series can also be configured for either aseptic or nonaseptic
processing. Homogenisation under aseptic conditions
is necessary whenever heat treatment (such as UHT) would
negatively impact the product’s physical stability. The aseptic
models of HST homogenisers use proven technology that
entails a series of sterile barriers and can be equipped with
high-grade temperature and flow metering capabilities on
request.
HST Maschinenbau GmbH also offers an option sterile water
generation for all homogenisers, which can reduce energy
consumption by more than 90% compared with condensate
generation.
REFRIGERATION/COOLING SYSTEM
Guntner’s new CUBIC Vario offers better hygiene
and energy savings
The CUBIC Vario air cooler from Güntner has gained a strong reputation for
many refrigeration applications thanks to its sophisticated design and various
optional accessories. “Whether you’re looking for an application in a freezer room
with temperatures below -25 °C, a 40-meter-high ASRS, or a food processing
room with high demand for hygiene and corrosion resistance, a suitable air cooler
solution can always be found in Güntner’s wide range of products and especially
with the CUBIC Vario family.”
Not long ago, Guntner had announced that its 2 standard series in the CUBIC
Vario, GHN (Industrial Refrigeration) and GHF (standard/special applications in
Commercial Refrigeration) will be consolidated into the new CUBIC Vario (GACV)
series. In addition to covering all current applications of GHN and GHF, the new
GACV expands its refrigeration capacity range to 1 – 335 kW. The upgraded
series also features many innovative designs aiming to improve energy efficiency
and hygiene.
The sales launch of GACV in Asia Pacific commenced in November 2020. The
introduction of GACV has 2 phases, Phase 1 of the new product introduction,
the replacement of GHF has already been completed, while GACV Phase 2, the
replacement of GHN, will be scheduled in the 2 nd half of 2021
One Simplified Solution for Diverse Applications
As an all-in-one solution, the CUBIC Vario GACV covers the applications of
medium to large capacity storage rooms, small to large freezing and chilling rooms
and food processing rooms with stringent hygiene requirements, e.g. smoked
foods, cheese factories and curing cellars amongst others.
GACV uses an innovative simplified modular concept, which allows the GPC
(Güntner Product Calculator) software tool to configure the CUBIC Vario air coolers
in the most optimised way. As a customer, you can simply open GPC, choose the
device according to your preferences and input your desired parameters. GPC
will then match your requirement and select the most optimal aircooler with the
combination of different fin geometry, fin spacing, casing modules and a wide
range of accessories. In other words, one GACV family can now offer units
covering multiple application areas.
High Energy Efficient: Defrost Heating Devices
For all refrigeration systems, reducing energy consumption has always been
the focus. With this theme in mind, a large number of innovations have been
implemented in the new GACV.
First of all is the introduction of an energy efficient heating pad which can be
used on fans for defrosting purpose. In the new GACV, in addition to the regular
fan ring heater, the newly added heating pad lies up considerably better on the
fan nozzle and transmits the heat better due to a bigger contact surface. The
surface temperature of the heating pad is significantly less in comparison to fan
ring heaters. Less heat is therefore emitted in the environment and as a result less
cooling power after the defrosting phase needs to be supplied.
The performance of the heating pad is 23% lower than of the heating rod, hence
energy consumption reduces accordingly.
To save more energy, the Güntner HeatShield can be added as an optional
accessory. It is an isolation strip that can be attached to the heating pad. The
surface temperature of the outer pad can be further reduced by up to 45%
compared to the fan ring heater.
Improved Hygiene: Unique Designs of Outer and Inner Trays
Hygiene is another important consideration in the design of the GACV. As a
HACCP certified air cooler, various details on the unit are taken into account to
improve the overall hygiene condition in the application areas. The sophisticated
design of the outer and inner trays of the unit is an example.
In the CUBIC Vario unit, melting ice and condensation water from the heat
exchanger lands in the inner tray and passes from there to the drain. As the
channel of the inner tray features an increased gradient, it allows condensation
water to drain off more effectively. Ice formation in the tray caused by accumulated
condense water is minimised allowing defrosting time to be reduced and results
in energy savings.
Meanwhile, the outer tray of the unit remains essentially dry, and is insulated
by an air gap and special components to
ensure that no water droplets are formed
underneath the unit where they might fall
onto food products.
Thus, the unique design of the trays
improves the GACV’s drain of condensate
water, which enhances hygiene and
safety in the application areas.
German-based Güntner GmbH
& Co. KG is a world leader in the
manufacture of refrigeration and air
conditioning equipment components with
manufacturing sites in Germany, Hungary,
Romania, Indonesia, Mexico, Brazil and
Russia. Guntner’s international areas of
application comprise energy & process
cooling projects, industrial and commercial
applications in the field of food production
and storage as well as HVAC applications
for buildings and specific applications
such as server room cooling. In Asia, its
head office is located in Singapore.
Güntner new Cubic Vario Air Cooler (GACV) series
Asia Food & Beverages 44
ASEAN
GRAIN MILLING TECHNOLOGY
Bühler launches new integrated rice mill concept – Uniline
in Southeast Asia
Swiss-based Bühler Group has recently unveiled its new integrated rice mill
concept optimised for Southeast Asia’s rice varieties. Uniline rice mills are
all-inclusive equipment packages which can be installed and commissioned
within 18 weeks from order.
Vianney d’Hostel, Head of Business Intelligence Southeast Asia at Bühler
said, “Early months of the COVID-19 crisis have shown vulnerabilities in rice
supply chains worldwide. Lockdowns and restrictions in movement of the
workforce have stressed the need for more automated mills. At the same
time, disruption in supply chains and fast-changing protectionist policies have
highlighted the need for shorter and distributed rice supply chains.”
With many countries and provinces now ramping up plans to increase selfsufficiency
in rice production, Bühler anticipates public and private sector will
tend to prioritise simpler, more robust and decentralised solutions to the food
supply chains.
Asif Abbas, Southeast Asia Regional Manager for Rice at Bühler explained,
“The fundamental idea behind Uniline is that it is an all-inclusive rice mill
delivered to your site. It includes all the equipment, the automation systems
and the prefabricated steel structure needed to create a compact 2-level rice
mill.”
Uniline relies on an optimised concept developed by Bühler, which allows
the Swiss company to achieve 15% energy savings in a 40% smaller footprint
compared to conventional rice mills. Project speed is also increased, with
commissioning taking place 18 weeks from the order with the support of local
Bühler installation teams. “This all-inclusive package reduces the project’s
complexity for rice millers, who will now have a single point of contact
accountable for their entire mill,” added Mr Abbas.
The Uniline rice mill is already available for orders in Southeast Asia in
3 capacity options namely 5, 8 and 10 tons per hour. “Our primary market
for Uniline are remote green field projects. We also anticipate interest from
established rice millers who will be interested to add new dedicated lines for
organic or local rice sub-varieties.” Uniline offers a high-level of automation,
quality control and food-safety, making it suitable for operations aiming at
export markets.
As a relevant solution partner for the food and mobility industries, Bühler is
committed to reduce energy, waste, and water in its customers’ value chains
by 50% by 2025. Bühler is active in 140 countries around the world and
operates a global network of 100 service stations, 33 manufacturing sites,
and application and training centers in 24 locations.
VIETNAM
Packaging & Technology News
PACKAGING MATERIAL
Vietnamese Paper, Packaging firms optimistic of
domestic, export markets
Vietnam stable economic environment as well as its minimal
pandemic disturbances has boosted business prospects for paper
and packaging companies this year.
The An Phat Bioplastics JSC aims to achieve consolidated revenue
of Dong 9.5 trillion (US$412.8 million) this year, up by 28% from
2020. Another major players, Dong Hai JSC of Bentre (DHC) aims
to achieve Dong 3.5 trillion (US$150 million ) in revenue and Dong
393 billion (US$17.11 million) in post-tax profit, which is 2.15 times
higher than previous year. Meanwhile, Thuan Duc JSC (TDP) has set
a revenue target of Dong 1.97 trillion (US$86 million) and a post-tax
profit goal of Dong 88 billion (US$3.83 million).
TDP is one of the leading manufacturers in the country for
environmentally friendly polypropylene (PP plastic) packaging
products in Vietnam, which witnessed continuous revenue growth
over the years. It has a product line of shopping bags, mainly for
export, accounting for half of the company’s annual revenue, besides
animal feed packaging product line and packaging agricultural
products and the fertiliser packaging line. The enterprise’s 1A factory
and 1B factory have a combined capacity of 25,000 tonnes of seeds
per year and 8,000 tonnes of packages per year. Its No.2 factory has
an export capacity of 150 million packages per year, while its No.3
factory has a capacity of 8,000 tonnes of packages per year.
In the 1 st quarter of 2021, TDP reported stable and high revenue
growth in the domestic market with higher packaging sales of animal
feed and agricultural products. In addition, the export market for
supermarket shopping bags has recovered considerably from a year
ago in 2020.
Paper packaging consumption in Vietnam is expected to increase by
12% in 2021-2025 and this is partly attributed to rapid urbanisation in
the country. The proportion of urban population to the total population
in Vietnam will reach 40% by 2024 compared to 37% in 2019. The
paper packaging segment also benefits from the rapid growth of
Vietnam’s e-commerce.
Analysts forecast that the growth of the plastic packaging segment in
2021 in Vietnam will depend on spending on food and non-alcoholic
beverages. The growing demand for packaging products will also
grow in Asia and this will be a growth catalyst for the packaging export
segment in Vietnam.
45 Asia Food & Beverages
Packaging & Technology News
CARTON PACKAGING
NutiFood launches NuVi drink series with Nata de Coco
bits using SIG drinksplus technology
NutiFood, one of Vietnam’s leading producers of nutritional food and
beverages, has become the 1st company in Vietnam to introduce Tonic
Food Drink (TFD) with nata de coco bits in carton packaging, made
possible using SIG drinksplus technology.
Under its new brand for kids, NuVi, the company has introduced a
series of RTD milk with indulgent flavors. In addition to TFD nata de coco,
NuVi also launched the juicy milkshake in orange and tropical fruit, plus
a drinking yoghurt in strawberry and peach with apple. The brand has
unique proposition for the development of children in both mental and
physical health.
Demand for products with healthy benefits are growing all over the
world, but innovation is required to offer excitement to modern kids. TFD
is expected to evolve and the addition of nutritious pieces is just one of
the promising steps.
With the launch of NuVi, especially with nata de coco pieces in
convenient aseptic carton packs for single serve, NutiFood presents
true product innovation in the Vietnamese market. The formula was
developed by the Swedish NutiFood Institute for Nutrition, to promote
physical resistance and good digestion. It contains high quality milk with
many vitamins as well as taurine, zinc, calcium and other nutrients that
provide energy, promote cerebral function and healthy bone growth.
Moreover, the multiple design with NuVi World cartoon characters – for
kid’s collection is eye-catching and builds a unique and magical world
for kids.
NuVi, the first drinksplus Tonic Food Drink (TFD) available in 6 flavors
Hoang Xuan Binh, Country Manager at SIG Vietnam said, “We are
working closely with NutiFood to provide the best solution for product
innovation. SIG drinksplus is our proven technology that makes it
possible for aseptic carton filling to add value to the product. This helps to
differentiate our customer’s product positioning and brand premiumisation
to deliver the right trends to the liquid dairy market.”
SIG’s technology makes it possible to aseptically fill carton packs with
beverages containing up to 10% particulates, from fruit and vegetables
to nuts and grains, on standard SIG filling machines. The bits can be up
to 6mm in length and width while the drinking straws are up to 8mm in
diameter thereby making drinking a pleasant experience.
SIG uses the advantageous sleeve system where each carton sleeve
is individually shaped, filled and ultrasonically sealed above the filling
level and not through the product – guaranteeing the aseptic safety of the
product. The products can be filled on standard SIG filling machines for
liquid dairy and non-carbonated soft drink products. The machines are
equipped with easy-to-install ‘drinksplus upgrade kit’.
SIG is a leading systems and solutions provider for aseptic carton
packaging. It works in partnership with its customers to bring food and
beverage products to consumers around the globe in a safe, sustainable
and affordable way. In 2020, SIG produced 38 billion carton packs and
generated €1.8 billion (US$2.21 billion) in revenue.
SINGAPORE
CCL Industries acquires Singapore labelling
company
PRODUCT LABELLING
CCL Industries Inc., a world leader in specialty label, security and
packaging solutions has recently acquired privately held Lux Global
Label Asia Pte. Ltd. (LUX), based in Singapore for US$9.4 million.
LUX produces decorative labels for global customers in the ASEAN
region. For the financial year ended 31 March 2021, its sales were
US$9.2 million.
LUX owns a building in Singapore and it will be renamed to CCL Label
Singapore with the acquisition.
Geoffrey T. Martin, President and CEO of CCL Industries Inc. said,
“We are pleased to expand our highly successful operations in Asia and
welcome LUX employees to CCL. We expect to improve the financial and
operational performance of the acquired business significantly.”
CCL Industries Inc. operates more than 191 production facilities in
42 countries with corporate offices in Canada and USA. CCL is the
world’s largest converter of pressure sensitive and specialty extruded
film materials for a wide range of decorative, instructional, functional
and security applications for government institutions and large global
customers in the consumer packaging, healthcare & chemicals,
consumer electronic device and automotive markets.
CHINA
DIGITAL BEVERAGE PLANT
Siemens partners Swire Coca-Cola to build digital plant
benchmarks in beverage industry
Siemens and Swire Coca-Cola China Co., Ltd have recently formed a
strategic partnership on digitalisation.
The 2 sides will carry out in-depth cooperation in fields such as digital
plant construction, supply chain intelligent management and training for
digital talents, and to jointly build digital plant benchmarks in the beverage
industry, aiming to promote digital transformation of Swire Coca-Cola in
China and around the world.
Meanwhile, the Manufacturing Information System (MIS) customised by
Siemens for Swire Coca-Cola has been successfully applied to its digital
production line in Hangzhou, Zhejiang province. Upon the implementation
of the project, Swire Coca-Cola will unlock an annual production capacity
of 550 million cans of Coca-Cola.
Lothar Herrmann, President and CEO of Siemens Greater China said,
“With the gradual implementation of the cooperation, I believe Swire Coca-
Cola will make leaps and bounds in productivity, quality and sustainability,
and set a new digital benchmark in the global beverage industry.”
Karen So, Managing Director of Swire Coca-Cola Co Ltd said, “Currently,
Swire Coca-Cola’s application of digital tools has penetrated into different
links including marketing, sales and supply chain etc. All our business
people are equipped with mobile devices to timely check inventory, place
orders, monitor execution status and take pictures, which helps us realise
a comprehensive and closed-loop management of front-line business,
execution and tracking, as well as production logistics. We can proudly say
that in the so-called traditional beverage industry, we are at the forefront of
digital transformation.”
Siemens and the Coca-Cola Cross Enterprise Procurement Group
(CEPG) elevated their partnership in 2020 by executing a global strategic
agreement that laid important foundational elements utilised for this
initiative.
The MIS was developed by Siemens, in partnership with Swire Coca-Cola,
based on advanced automation and digital technologies, software and
hardware products and solutions as well as MindSphere. The new system
will become the benchmark and standard for the manufacturing information
systems of Swire Coca-Cola worldwide in the future. The system can
realise the collection, processing, storage, utilisation and management of
data in all parts of the production process, and improve functions such as
the information monitoring and analysis of the production process, quality
control, equipment management and maintenance, warning and detection
of faults, production performance evaluation and decision-making. The new
MIS can also allow the application of AI technology which will improve the
digital level of the plant, and thereby enhance efficiency, realise predictive
maintenance and save energy. In the next 2 years, MIS will be applied to
nearly 100 production lines in 18 plants of Swire Coca-Cola in China.
Wang Haibin, General Manager of Digital Industries, Siemens Greater
China said, “Driven by demands of personalised consumption, beverage
companies are entering a new development stage that manufacturing
is driven by data. ‘The successful launch of the MIS marks an important
milestone for both sides to jointly explore the digital transformation of
the beverage industry on a large scale. Taking the cooperation as an
opportunity, we hope to help Swire Coca-Cola further explore the infinite
potential brought by cutting-edge technologies such as AI, big data and
MindSphere, strengthen the supply chain of beverage industry and
manufacturing flexibility, enhancing the company’s digital leadership and
its brand value.”
In the future, Siemens will further expand the functions of the MIS system,
including obtaining real-time production data nationwide through the APPs
of Siemens MindSphere, analysing all the data in multiple dimensions
such as efficiency, energy consumption, safety, quality and predictive
maintenance, so as to help Swire Coca-Cola achieve quality management
at the group level and further improve the digitalisation and intelligent level
of its whole supply chain.
With the interaction of the MIS and other systems in the production line,
Swire Coca-Cola’s plants will save about 10 million kWh of electricity per
year, equivalent to saving 3,200 tonnes of standard coal and reducing
7,500 tonnes of carbon dioxide emissions. It will be of great benefit to Swire
Coca-Cola in fulfilling its environmental sustainability goals.
CAN PACKAGING
Shanghai Baosteel Packaging plans Aluminium Pull-Top
Can Project
In April, Shanghai Baosteel Packaging was reported to be planning to
invest Rmb 427 million (US$65.25 million) in an aluminium pull-top can
project in China.
Last year, it also announced plan to build a new can factory in Malaysia,
although no update was given on the progress of this investment.
Aluminum cans are considered one of the more recyclable materials,
since they do not degrade much from single use. Plastic bottles are not
durable, often cannot be reused for the same purpose, and are expensive
to clean before being recycled. Glass bottles, on the other hand, are heavy
and expensive to collect.
According to the Japan Aluminum Association, it costs an average of Yen
0.21 (US$0.002) to recycle a 500ml aluminum can, as compared with Yen
5.42 (US$0.05) for a plastic bottle and Yen 8.36 (US$0.077) for a glass
bottle of the same size.
Aluminum cans however pose greater environmental concerns as a single
can creates 170g of carbon dioxide compared to 137g for plastic bottle.
Asia Food & Beverages 46
Distribution News
ASIA
Singapore-based Flash Coffee to use
US$15 million funding to open 300
new stores in 2021
Flash Coffee, a tech-enabled coffee chain
backed by Rocket Internet announced that it
has raised US$15 million in latest funding round
led by White Star Capital, with participation
from prominent investors including Delivery
Hero-backed DX Ventures, Global Founders
Capital, and Conny & Co.
The new funding will be used to expand the
brand in 10 markets across APAC with 300 new
stores planned for 2021.
Flash Coffee was launched not long ago in
January 2020, and now operates 50 locations
across Singapore, Thailand, and Indonesia.
Flash Coffee has achieved strong profitability
reflecting the success of its business model.
CEO David Brunier and COO & CFO
Sebastian Hannecker co-founded the company
to make premium coffee accessible to Asia’s
rising middle class. Brunier’s experience
as Foodpanda CMO and Hannecker’s Bain
Consulting pedigree have informed Flash
Coffee’s disruptive grab-and-go business
model, allowing for significant cost savings to
be passed on to customers.
“Our dream is to have a Flash Coffee every
500 metres in all major Asian cities,” said
Brunier.
Seven new markets are already identified
this year and they include Hong Kong, Taiwan,
South Korea, Japan, Malaysia, the Philippines
and Vietnam. Flash Coffee plans to build a
regional HQ in Singapore and expand its
regional tech hub in Jakarta. Indonesia is one
of its major market for expansion in the near
future.
The company aims to digitise today’s offlinedominated
coffee industry with a newly launched
consumer app that boasts a streamlined pickup
feature, sophisticated loyalty programme,
personalised promotions and interactive
challenges. Its dedicated barista app improves
the operational efficiency of its stores and
enables performance-based incentives for its
baristas, ensuring an unparalleled customer
experience.
Flash Coffee’s unique coffee menu is also
curated by World Latte Art Champion Arnon
Thitiprasert which sets it apart from conventional
cafes and quick service brands. All drinks are
prepared with premium ingredients and 100%
Arabica coffee beans.
PHILIPPINES
Puregold to open 500 stores in 2 years
Supermarket chain Puregold Price Club Inc.
is planning to expand its network to 500 outlets
over the next 2 to 3 years through acquisitions
and organic expansion. For the rest of 2021, at
least 30 more stores will be added. Puregold
is also considering building smaller stores amid
the pandemic. Puregold had 403 stores as of
end-2020.
Apart from Puregold stores, the grocery chain
also operates S&R membership stores and 46
quick service restaurants.
Puregold has also conducted 300 caravan
Distribution News
trips to residential areas to sell the goods
directly to the people.
It saw a 9.2% jump in consolidated net sales
to Pesos 168.63 billion (US$3.5 billion) in 2020
as the company increased its focus on online
shopping and digitalisation.
Halal Filipino brands making their
way to Middle East via SandBox
Major importer and distributor SandBox has
signed exclusive distribution agreements with
Filipino brands that are getting Halal certification
to launch them in the UAE and GCC region.
These include Oh So Healthy snacks which
produces fruit crisps and Pacquiao 3-in-1
Coffee, a brand co-owned and developed by
Filipino boxer, Manny Pacquiao.
SandBox hopes to launch these into UAE
supermarkets and health stores by June
and July respectively. It will also help these
manufacturers with relabeling into Arabic.
SandBox CEO Lito German said, “We hope to
capitalise on the wellness trend, and at the same
time, expand our reach to a wider audience
beyond the overseas Filipino workers.”
A possible boxing tournament between
Manny Pacquiao with Terence Crawford in Abu
Dhabi this June might also help boost brand
awareness of the coffee in the region. Pacquiao
3-in-1 coffee is currently manufactured in the
Philippines, and SandBox is working with the
manufacturer to dedicate a production line
comprising filling, packaging and labelling to
cater to demand in the GCC market.
SandBox is also the exclusive distributor for
other Filipino brands including Delimondo
(corned beef) and Arce Dairy (ice cream). Its
distribution network spans the GCC region as
Continue to page 48
Malaysia International Halal
Showcase (MIHAS) 2021
The 17th Malaysia International Halal Showcase (MIHAS), scheduled
from 9th to 12th September 2021, will be presented, for the
first time, in a hybrid format. Organised by the Malaysia External
Trade Development Corporation (MATRADE) under the patronage
of the Ministry of International Trade and Industry Malaysia (MITI),
MIHAS is the world's largest trade fair focusing on Halal businesses
and exports.
MIHAS 2021 aims to further expand Malaysia’s halal economy
agenda, steering the country towards the era of Industry 4.0 and
fortifying its role as the global halal hub. Aptly themed, “Empowering
Halal, Tomorrow, Together”, MIHAS 2021 will serve as a stage
maker for the latest halal innovations and business ideas to
converge. With the Covid-19 global pandemic shifting mindsets,
business cultures and models, MIHAS 2021 will act as the overarching
umbrella platform for halal businesses to cultivate resiliency,
creativity and adaptability in order to succeed in a ‘new normal’
business landscape.
Continuing its crucial role as a high-value halal sourcing platform
for halal businesses expanding into new markets, and the nurturing
of young emerging players through sustainable partnerships, the
MIHAS 2021 virtual components include a virtual exhibition,
Artificial Intelligence (AI) assisted business matching sessions,
virtual network lounge, industry specific sessions and live demos.
This versatile virtual platform is available to global audience across
all time zones 24 hours a day, 7 days a week for 3 months between
September to December 2021.
MIHAS has successfully recorded 408,100 exhibitors and
visitors from over 88 countries, generating over RM17.2 billion
(US$4.16 billion) in trade since its inception in 2014. Today, the
Islamic Economy is a US$2 trillion market opportunity across a
range of products and services guided by Islamic ethical faith-inspired
needs. It is projected to grow to US$3.2 trillion by 2024.
MIHAS 2021 will focus on showcasing 12 key pillars representing
growing halal markets across the globe. These include
long-established sectors such as halal food and beverage,
Islamic finance, pharmaceuticals, education and franchise.
Contemporary sectors included this year comprise modest
fashion, halal cosmetics and personal care, halal media and
recreation, Muslim friendly travel, food technology and e-commerce.
Interested companies who wish to participate in MIHAS 2021
and make a mark in the global Halal market may contact Ms
Azlina Jane Zahri, Director of Sales and Marketing at azlina.-
jane@qube.com.my. For more information on MIHAS, please
visit www.mihas.com.my
47 Asia Food & Beverages
Distribution News
well as selected territories across Europe. In
the UAE, it serves over 300 establishments with
the mom-and-pop stores (50%) being its largest
channel followed by supermarkets (30%), food
services (15%) and e-commerce (3%).
7-Eleven operator reported losses in
2020 in the Philippines
Philippine Seven Corp., the local licensee of
7-Eleven convenience stores in the Philippines
reported net loss of Pesos 419.7 million
(US$8.72 million) in 2020, a reversal of Pesos
1.44 billion (US$29.93 million) profit in 2019.
Philippine Seven blamed the pandemic for
affecting its sales as lockdown restrictions
were imposed under different classifications
of community quarantine. Sales of 7-Eleven
stores in the office and school clusters were the
most affected.
Jose Victor Paterno, the company’s CEO said,
“We are not out of the woods, by any stretch.
Our financial performance has been abysmal,
and when our profit and growth numbers will
return depend on not just the pandemic and
how the Philippines navigates it’s end, but on
how quickly our online and offline pivots take
root, if at all.”
The company ended 2020 with a nationwide
store count of 2,978 stores. There are 2,261
7-Eleven stores in Luzon with some 1,010
stores in Metro Manila; 432 in Visayas and 285
in Mindanao. The franchised-stores accounted
for 55% with the remainder being corporateowned.
THAILAND
Thai Commerce Ministry launches
Mobile Grocery Store Campaign
Thai Commerce Ministry has recently launched
a fresh mobile grocery store campaign to help
reduce the cost of living for people in Greater
Bangkok.
Commerce Minister Jurin Laksanawisit said
the latest campaign features 730 mobile pickup
trucks and small trucks selling 73 products in
6 categories with a discount of 5-60%.
Products sold include essential food items
such as rice, eggs, cooking oil, sugar, instant
noodles, canned fish, seasoning sauces, dailyuse
products, body care products, cleaning
products and medicines.
Mr Laksanawisit said the mobile grocery units
will park at all 50 districts throughout Bangkok
for half a day before moving to various points
and that they would enter around 400-500
communities.
Due to the latest wave of pandemic affecting
Bangkok, many residents are staying home
and spend more time on simple and convenient
food preparations.
The Commerce Ministry is also closely
monitoring the prices of these essential goods
and seek cooperation with various retailers
and wholesalers during the current challenging
period.
VIETNAM
Soya Garden soy milk chain
withdraws from HCMC
Organic soy milk chain Soya Garden has
closed its last store in HCMC and now focuses
entirely in Hanoi.
A spokesperson for Egroup, which owns Soya
Garden said the closures are part of a plan to
cut rents and labor costs. He also added that
the pandemic has changed consumer behavior,
and they are buying products online more than
from traditional stores.
Soya Garden was established in 2016 by two
Vietnamese siblings who managed to raise
Asia Food & Beverages 48
Dong 20 billion (US$870,000) from Egroup.
Egroup later injected a further Dong 80 billion
(US$3.48 million) in 2019 to enable the startup
to expand to 50 stores by July 2019. There
are ambitious plans to have 300 stores by
2021, but soon after the pandemic came and
Soya Garden started closing its stores to 17 by
August 2021.
As of present, it only 8 stores and all in Hanoi.
Soya Garden is also developing an online
selling channel, distributing through food
delivery services such as Grab Food, Now,
Foody, and Baemin. It also plans to develop
the Soya Bistro chain to sell food in addition to
soy beverages since such stores have become
popular in large cities like Hanoi, HCMC and
Danang.
Korean group acquires stake in
Vietnamese retailer
Korea’s major conglomerate, SK Group has
recently agreed to acquire a 16.3% stake in
Vietnam-based retail chain VinCommerce
for US$410 million. This acquisition will give
the Korean group further access to both the
production and retail segment of the food
supply chain in Vietnam.
VinCommerce is a subsidiary of Masan Group,
and operates around 2,300 convenience stores
and supermarkets with 50% share of Vietnam
retail sector.
SK Group Southeast Asia Investment
Representative Director Woncheol Park said,
“We believe VinCommerce will become the
leading offline-to-online retailer in the country in
the near future.”
SK Group is South Korea’s leading
family-owned conglomerate focusing on
energy, chemicals, telecommunications,
semiconductors, logistics and services. It
operates in more than 40 countries and has
consolidated revenue of US$86 billion last
year. Since 2018, SK Group already held 9.5%
stake in Masan Group and a 6.1% interest in
Vingroup.
It plans to speed up investments in online
and offline distribution, logistics and electronic
payment in Vietnam through its strategic
partnership with Masan Group.
Korean Fast Food Chain to expand
investment in Vietnam
Lotteria, a fast-food franchise brand owned by
South Korea’s Lotte Group, is planning to open
28 more fast food stores in Vietnam this year.
It is also building a new food material factory
in Long Hau Industrial Park in the southern
province of Long An.
A representative from Lotteria Vietnam denied
an earlier report that it is closing down its stores
in the country. The chain has more than 260
stores including 100 under the franchise model
across Vietnam since 1998.
Vietnam is considered as a growth market
for Lotteria. As of April 2020, Lotteria was the
leading fast food chain in Vietnam with 151
stores, followed by Jollibee with 115, according
to Statista.
Thailand’s largest coffee chain eyes
major expansion into Vietnam
Café Amazon, Thailand’s largest coffee chain,
is planning a huge move into Vietnam.
This year, the coffee giant is set to open more
outlets in HCMC and nearby localities, and it is
also going on trial with its franchise models in
the country.
Café Amazon currently has 5 stores in Vietnam
with 2 in HCMC and 3 located near Thai giant
Central Retail-owned Go! Supermarkets in
southern provinces of My Tho, Ben Tre, and
Tra Vinh.
Vietnam lucrative tea and coffee market
is estimated at US$1 billion annually with 5
major coffee chains namely Highlands, Phuc
Long, The Coffee House and Trung Nguyen.
Starbucks is the only foreign player in the list
with 3% share.
SINGAPORE
Eat Just partners Foodpanda to offer
the world’s 1 st home delivery for
Cultured Meat
Eat Just, Inc. has recently partnered with
Foodpanda, Asia’s leading food and grocery
delivery platform, to offer the world’s first
home delivery of cultured meat. Three dishes
featuring high-quality chicken made in a brandnew
way are initially available for delivery
starting 22 April for a limited period of time in
Singapore.
The partnership marks a significant milestone
for both brands in the global effort towards
achieving food sustainability. Singapore
became the first country to approve cultured
meat, which is real, high-quality meat made
from animal cells.
Started from 22 April, diners can place orders
for the following chef-crafted GOOD Meat
Cultured Chicken dishes via the Foodpanda
app. These include Chicken & Rice with coconut
rice, pak choi, sweet chili, chrysanthemums,
microgreens; Katsu Chicken Curry with jasmine
rice, heritage carrots, micro shiso, edible
flowers; and Chicken Caesar Salad with kale,
romaine, edible flowers, shaved radish, plantbased
Caesar dressing.
The dishes are prepared by Singapore’s
1880, the first establishment chosen to serve
cultured meat to customers, and will now be the
first to have GOOD Meat dishes delivered by
Foodpanda. The dishes are also packed in ecofriendly
box made from sustainable bamboo
fiber and resin.
GOOD Meat and foodpanda plan to collaborate
with additional restaurants in Singapore to offer
new dishes for delivery in the months to come.
Jakob Angele, CEO of Foodpanda APAC said,
“Together with Eat Just, we hope to bring this
to more markets - not just in Asia but also in
every country in the world where Delivery Hero
brands operate.”
Delivery Hero is Foodpanda’s parent company
and is the world’s leading delivery platform with
operations in more than 40 countries across
Asia, Europe, Latin America, the Middle East
and North Africa.
According to research done by Eat Just,
consumer response to cultured meat has been
positive. More than 70% of Singaporeans who
have sampled GOOD Meat said that it tasted
as good, or better than conventional chicken,
and nearly 90% of those diners said they will
substitute conventional chicken with cultured
chicken.
Kimly to acquire 75% stake in Halal
food operator Tenderfresh
Coffee-shop operator Kimly has revealed plan
to acquire a 75% stake in home-grown food
business Tenderfresh for S$54 million (US$40.8
million), giving it an opportunity to expand
into the Halal food industry in Singapore and
neighbouring countries. Kimly will also have
the option to acquire the remainding 25% stake
within 5 years.
Prior to the completion of the deal, the
Tenderfresh business will be restructured and
consolidated. A new entity will be incorporated
to hold the business.
Tenderfresh specialises in fried or roasted
spring chickens and chicken wings. It manages
14 concepts and 41 outlets ranging from
Western fares and traditional local cuisines
to food kiosks, catering, retail outlets and
original equipment manufacturing (OEM). It
also operates a 25,000 sq.feet central kitchen
which caters to about 140 brands and outlets.
The kitchen supplies semi-finished products to
its own outlets.
The proposed acquisition includes the central
kitchen, restaurants, kiosks, food stalls, plant
and equipment, trademarks and customer
relationships which operate via various entities.
Kimly believes it will be able to leverage
Tenderfresh’s competitive edge and wide
network in the Halal food market to make
further headway in the industry. The Singapore
Halal mark and standard is also recognised
by Brunei, Indonesia and Malaysia under the
Mabims agreement.
INDONESIA
Alfamidi to open 200 new stores in
Indonesia
PT Midi Utama Indonesia (MIDI), the operator
of Alfamidi and Alfamidi Super convenience
stores, has unveiled plan to open 200 new
stores in 2021 with an investment of Rp 1 trillion
(US$70 million).
This goal is certainly achievable as in 2020,
the operator opened 266 new stores which
exceeded its plan of 200 stores for that year.
As of present, MIDI has 1,821 stores mostly
comprising of smaller-sized stores with 26 of
the stores categorised as Alfamidi Super.
So far, it has opened 63 new Alfamidi outlets
in the 1 st quarter of 2021 all across Indonesia
from Sulawesi to Maluku, North Maluku and
Kalimantan.
MALAYSIA
Richiamo Coffee aims for 100 outlets
by end-2021
Richiamo Coffee Sdn Bhd, the licensee of the
Richiamo Coffee premium coffee shop chain,
is aggressively expanding its wings nationwide
with a target of 100 outlets by end-2021.
Managing Director Muhamad Zamry Abu
Samah said there are 42 Richiamo Coffee
branches already operating nationwide and the
company plans to open 55 more new branches,
including in Sabah and Sarawak.
The store expansion will be further supported
by a large organisation (unnamed) which will be
its master licensor.
What makes Richiamo Coffee attractive to
consumers is its competitive pricing. “Our coffee
price is 45% lower than the rest of competitors
without compromising on quality.”
Zamry hopes to expand the Richiamo Coffee
brand to overseas markets like Brunei,
Bangladesh, Myanmar, Uzbekistan as well as
Medina and Mecca in Saudi Arabia. This will
have to wait till the pandemic recedes.
Giant supermarket aims for growth
with new image and Mini outlet
format
GCH Retail (Malaysia) Sdn Bhd, the operator
of Giant supermarket chain, is all set to grow
again with a fresh look (image) as well as
expanding into mini outlets.
Its parent company, Dairy Farm International
Holdings Ltd, is allocating about RM25 million
(US$6.04 million) to revamp all 57 Giant stores
and open 10 Giant Minis.
Dairy Farm CEO for Southeast Asia Food
Business, Chris Bush said small brand
under the group, namely Giant Express and
ShopSmart! will also be converted into Giant
Minis.
Giant has consolidated with the closure of
some of its Giant stores earlier amidst the
challenging market. Bush said it has been over
40 years since the Giant logo was last refreshed.
He added, “The importance of rebranding is not
just about a new logo, it’s about a number of
big changes that we’ve made in our stores over
the last 4 or 5 months in preparation for the
relaunch of Giant.”
Giant will focus on supplying quality fresh
products at competitive pricing to its Malaysian
consumers. It has also introduced new
offerings such as a RM3 zone at selected
stores to reinforce Giant’s position as the price
leader. It also launched the World of Food line,
which offers selection of import products and
local delicacies from about 10,000 local small
and medium enterprises (SMEs), as well as
bringing over 2,000 new products across fresh
food, groceries and household essentials,
among others.
Dairy Farm also introduced the Meadow brand
in Malaysia, with 40 products have so far been
launched exclusively for Giant and a further 200
to 300 items planned in the next few months.
HONG KONG
Booming growth of ‘Instant Grocery
Services’ in HK
Instant grocery services have become the
latest growth market for popular delivery apps,
as the pandemic has made Hongkongers seek
the convenience of shopping via a few taps on
their mobile phones.
Foodpanda, the Singapore-headquartered
delivery platform, was among the first to launch
‘quick-commerce’ in Hong Kong. It rolled out
Pandamart in late 2019, delivering groceries
from its warehouses round-the-clock and as
quickly as within 15 minutes.
Foodpanda Managing Director Ryan Lai said
orders for instant groceries grew sevenfold
through the pandemic, between May last year
and March this year. “We believe the typical
e-commerce experience is super competitive
but it’s not enough any more. Waiting for a day
or for a couple of days is just not enough, so
quick-commerce became a good differentiating
advantage in this space.”
Another of Hong Kong’s largest online
retailers, HKTVmall, also has plans for its own
version of instant groceries. Its HKTV Express
service is due to start in May, with the target
of delivering groceries in under an hour to the
main residential districts.
Karana enters HK food service with
retail by year end
Karana, a Singapore-based food start-up
that uses ‘jackfruit’ as a plant-based meat
alternative, is now heading into Hong Kong
after partnering with 2 of the city’s best known
chefs, Shane Osborn of Arcane and Manav Tuli
of Indian restaurant Chaat.
Karana plans to have its products available for
Hong Kong home cooks by the end of the year.
Co-founder Blair Crichton and Dan Riegler
said that Karana chose jackfruits due to its
taste and sustainability. Supply of jackfruits is
abundant as such it is a good crop for use as
meat alternative.
CHINA
UK bakery Baker & Baker eyes on
China market
Baker & Baker, a re-branded UK bakery
business, is targeting expansion into China.
The business has emerged under its new
brand following the sale by private-equity owner
Rhone Capital and CSM Bakery Solutions’
ingredients division to European investment
group Investindustrial in October.
Baker & Baker CEO John Lindsay said the
newly re-branded business, which has a legacy
turnover of US$480.5 million, will supply a
Distribution News
European-wide and international customer
base from 12 sites in 7 countries.
China is one of Baker & Baker’s list of new
markets to target as consumer taste and
preferences are changing with growing cravings
for western-style bakery products.
Baker & Baker sells its products across different
channels including large supermarkets, bakers
and foodservices. The company also makes
and distributes a range of bakery products
on behalf of confectionery giant Mondelez
International under the Cadbury, Oreo, Milka
and Daim brand names. It also has a licensing
brand agreement with Disney.
The group’s trading brands include Doro,
Baker & Baker and Goldfrost and product lines
include doughnuts, cookies and muffins.
HK-based French patisserie Paul
Lafayet eyes expansion into mainland
China
Hong Kong-based patisserie Paul Lafayet
plans to ramp up its expansion plan with 100
new stores on the mainland by 2025, as it
eyes China’s growing market for western-style
desserts.
The French patisserie, which has gained a
faithful following in the city for its creme brulee
and macarons, now wants to expand its fan
base in mainland China as soon the border
reopens. Toni Younes, Chief Executive of Paul
Lafayet said, “China is a huge market and the
new generation in China is also becoming more
oriented to this kind of western products.”
Paul Lafayet currently has 8 stores in Hong
Kong and 4 in mainland China. The stores
offer colourful macarons starting at HK$22
(US$2.80) each, to signature creme brulee
made with fresh Madagascar vanilla beans, as
well as birthday cakes.
China’s market for cakes and pastries is
expected to grow by over 36% to US$37.6
billion in the next 5 years ending 2025. This is
far higher than global average of 9.4%, based
on Euromonitor International data.
Another research agency, Mordor Intelligence
reported that “Chinese people prefer to buy
novel products that have a mix of ingredients
and encompass different flavours. Furthermore,
the combination of a high young population
demanding Western-style baked goods and
convenience are some of the underlying factors
driving the growth of the market.”
Paul Lafayet has stores in Shanghai and
Shenzhen with further expansion in Beijing,
Chengdu and Chongqing. According to Younes,
its expansion plan will resume once the border
opens back between Hong Kong and mainland
China.
During the pandemic, it also relies on online
sales which grew 280% in the 1 st quarter of
2021.
Tyson partners Dada Group to
penetrate China on-demand delivery
market
Tyson Foods, a leading global frozen meat
supplier, is partnering with mainland China’s
Dada Group (DADA).
Tyson hopes that with the partnership, it will
be able to promote its digital transformation via
JDDJ, Dada Group’s on-demand retail platform
to reach out to more Chinese consumers.
This platform will be a win-win situation for both
parties, where Tyson foods is able to promote
their superior fresh meat products to Chinese
consumers, and JDDJ having more established
companies on board.
JDDJ is Tyson Foods’ first strategic partner
as they look to achieve higher growth via the
launch of the omni-channel marketing and
promotion model.
49 Asia Food & Beverages
Bright future growth and prospect for Thailand Food Processing Industry
Thailand is currently moving into the 5th year of Thai National Strategy 20 Year (following the 12th National
Economic and Social Development Plan). This strategy focuses on developing the country's capabilities in all areas
and to push it forward to become a key player in the global market. Our vision is "Security, Prosperity, Sustainability"
by promoting and developing S-Curve Industries as the country's key economic driver. One of the prominent
target industries is the food processing industry, or "Food for the Future," coined by the National Strategy.
Thailand food processing industry has many advantages and these include the country’s abundant natural
resources and an all-year harvest season. Thailand is one of the world's leading exporter of cassava, canned tuna,
canned pineapple, rice, and sugar. Over 80% of ingredients used in the food processing industry are locally
produced, thereby reducing production and other costs for local manufacturers boosting their competitive edge in
the global market.
Data from the Ministry of Industry showed that in 2020, the food and beverage processing industries in Thailand
have 53,642 factories, with 43,725 agricultural products processing factories, 9,102 food processing factories, and
815 beverage manufacturing factories. The combined production values exceed US$ 393 million. Thailand food
processing industry offers products ranging from health food and beverage, medical good, food supplements, food
innovations to products with high added-value such as instant and RTE food/meals, bakery, snacks, seasonings
and Halal food.
Also, numerous research development centers for the food processing industry were established to support
manufacturing and processing innovations, such as the Food Innopolis at Thailand Science Park. This hub
provides a one-stop service for enterpreneurs, while they also benefit from tax exemption, work permit and other
support facilities.
One of the policies from Thailand's Food Processing Industry Development Action Plan Phase 1 (2019 - 2027) is
to create business opportunity on both national and international level that is suitable for all level of manufacturers.
This aims to connect Thai food processing industry to the global market and create a strong economic foundation
with culture and creativity, and also by integrating food products with tourism such as organising world-class food
expo, i.e., THAIFEX, developing Big Data for SMEs database, and opening easily accessible SMEs One Portal or
Knowledge & Service Center for SMEs.
THAIFEX is Asia's largest food expo with over 107,000
sq.metres of exhibition area and attendees from over 40
countries. In 2020, THAIFEX collaborated with Anuga, a
world-class food expo from Germany to organise
"THAIFEX-ANUGA Asia - The Hybrid Edition" at IMPACT
Muang Thong Thani on 26 September 2020. The expo
attracted an impressive turnout of 797 exhibitors and 21,104
trade visitors. Participants include local players and business
representatives from countries like Brazil, Indonesia, Italy,
Korea, Norway, Poland and the US. For those interested in food
processing or looking for business opportunities in the industry,
do not miss to visit THAIFEX Virtual Trade Show (VTS), the
365-day initiative, and THAIFEX-ANUGA ASIA 2021 —
Hybrid+, the physical event by the Department of International
Trade Promotion, Thailand.
VTS welcomed 1,080 online registrants from 77 countries in
their first edition in 2020, of which 752 buyers were successfully
matched with their target exhibitors. This year will be open for
11 sector-specific trade shows, 3 special shows, and 11 trend
topics under the roof. Other digital initiatives include business
matching, onsite hosted buyer program that ensures exhibitors
achieve maximum exposure and buyers continue to enjoy
extensive sourcing opportunities. Due to the current COVID-19
pandemic, virtual meeting for participants will also facilitate
interactions with a carefully curated group of more than 500
international buyers. VTS will continue to engage local and
international participants from May through September 2021
prior to the physical event which has additional elements such
as live streaming.
Thailand aims to become "The World's Kitchen," being a
full-cycle food producer focusing on production technology,
creating food safety standards, and developing a quality control
system in every production. The strategy will boost confidence
in Thailand's food industry, ready to welcome investors and
entrepreneurs from all over the world, making Thailand the true
world's kitchen and a leading food manufacturer for the global
market.
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