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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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ASIA FOOD & BEVERAGES REPORT is a product

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photos, products, advertisements and brand names are

trademarks of their respective owners. The Publisher

has made relentless effort to ensure accuracy of data

and information, however it shall not be responsible in

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implied, within the pages of this report.

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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Asia Food & Beverages Report

( May/June 2021 )

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

Asia Food & Beverages Report, 137 x 200 mm, CC-en46-AZ436 05/21

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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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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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Asia Food & Beverages 50


51 Asia Food & Beverages


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