Asia Food & Beverages Report (May/June 2021 issue)

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Packaging & Technology NewsCARTON PACKAGINGNutiFood launches NuVi drink series with Nata de Cocobits using SIG drinksplus technologyNutiFood, one of Vietnam’s leading producers of nutritional food andbeverages, has become the 1st company in Vietnam to introduce TonicFood Drink (TFD) with nata de coco bits in carton packaging, madepossible using SIG drinksplus technology.Under its new brand for kids, NuVi, the company has introduced aseries of RTD milk with indulgent flavors. In addition to TFD nata de coco,NuVi also launched the juicy milkshake in orange and tropical fruit, plusa drinking yoghurt in strawberry and peach with apple. The brand hasunique proposition for the development of children in both mental andphysical health.Demand for products with healthy benefits are growing all over theworld, but innovation is required to offer excitement to modern kids. TFDis expected to evolve and the addition of nutritious pieces is just one ofthe promising steps.With the launch of NuVi, especially with nata de coco pieces inconvenient aseptic carton packs for single serve, NutiFood presentstrue product innovation in the Vietnamese market. The formula wasdeveloped by the Swedish NutiFood Institute for Nutrition, to promotephysical resistance and good digestion. It contains high quality milk withmany vitamins as well as taurine, zinc, calcium and other nutrients thatprovide energy, promote cerebral function and healthy bone growth.Moreover, the multiple design with NuVi World cartoon characters – forkid’s collection is eye-catching and builds a unique and magical worldfor kids.NuVi, the first drinksplus Tonic Food Drink (TFD) available in 6 flavorsHoang Xuan Binh, Country Manager at SIG Vietnam said, “We areworking closely with NutiFood to provide the best solution for productinnovation. SIG drinksplus is our proven technology that makes itpossible for aseptic carton filling to add value to the product. This helps todifferentiate our customer’s product positioning and brand premiumisationto deliver the right trends to the liquid dairy market.”SIG’s technology makes it possible to aseptically fill carton packs withbeverages containing up to 10% particulates, from fruit and vegetablesto nuts and grains, on standard SIG filling machines. The bits can be upto 6mm in length and width while the drinking straws are up to 8mm indiameter thereby making drinking a pleasant experience.SIG uses the advantageous sleeve system where each carton sleeveis individually shaped, filled and ultrasonically sealed above the fillinglevel and not through the product – guaranteeing the aseptic safety of theproduct. The products can be filled on standard SIG filling machines forliquid dairy and non-carbonated soft drink products. The machines areequipped with easy-to-install ‘drinksplus upgrade kit’.SIG is a leading systems and solutions provider for aseptic cartonpackaging. It works in partnership with its customers to bring food andbeverage products to consumers around the globe in a safe, sustainableand affordable way. In 2020, SIG produced 38 billion carton packs andgenerated €1.8 billion (US$2.21 billion) in revenue.SINGAPORECCL Industries acquires Singapore labellingcompanyPRODUCT LABELLINGCCL Industries Inc., a world leader in specialty label, security andpackaging solutions has recently acquired privately held Lux GlobalLabel Asia Pte. Ltd. (LUX), based in Singapore for US$9.4 million.LUX produces decorative labels for global customers in the ASEANregion. For the financial year ended 31 March 2021, its sales wereUS$9.2 million.LUX owns a building in Singapore and it will be renamed to CCL LabelSingapore 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 andwelcome LUX employees to CCL. We expect to improve the financial andoperational performance of the acquired business significantly.”CCL Industries Inc. operates more than 191 production facilities in42 countries with corporate offices in Canada and USA. CCL is theworld’s largest converter of pressure sensitive and specialty extrudedfilm materials for a wide range of decorative, instructional, functionaland security applications for government institutions and large globalcustomers in the consumer packaging, healthcare & chemicals,consumer electronic device and automotive markets.CHINADIGITAL BEVERAGE PLANTSiemens partners Swire Coca-Cola to build digital plantbenchmarks in beverage industrySiemens and Swire Coca-Cola China Co., Ltd have recently formed astrategic partnership on digitalisation.The 2 sides will carry out in-depth cooperation in fields such as digitalplant construction, supply chain intelligent management and training fordigital talents, and to jointly build digital plant benchmarks in the beverageindustry, aiming to promote digital transformation of Swire Coca-Cola inChina and around the world.Meanwhile, the Manufacturing Information System (MIS) customised bySiemens for Swire Coca-Cola has been successfully applied to its digitalproduction line in Hangzhou, Zhejiang province. Upon the implementationof the project, Swire Coca-Cola will unlock an annual production capacityof 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 differentlinks including marketing, sales and supply chain etc. All our businesspeople are equipped with mobile devices to timely check inventory, placeorders, monitor execution status and take pictures, which helps us realisea comprehensive and closed-loop management of front-line business,execution and tracking, as well as production logistics. We can proudly saythat in the so-called traditional beverage industry, we are at the forefront ofdigital transformation.”Siemens and the Coca-Cola Cross Enterprise Procurement Group(CEPG) elevated their partnership in 2020 by executing a global strategicagreement that laid important foundational elements utilised for thisinitiative.The MIS was developed by Siemens, in partnership with Swire Coca-Cola,based on advanced automation and digital technologies, software andhardware products and solutions as well as MindSphere. The new systemwill become the benchmark and standard for the manufacturing informationsystems of Swire Coca-Cola worldwide in the future. The system canrealise the collection, processing, storage, utilisation and management ofdata in all parts of the production process, and improve functions such asthe information monitoring and analysis of the production process, qualitycontrol, equipment management and maintenance, warning and detectionof faults, production performance evaluation and decision-making. The newMIS can also allow the application of AI technology which will improve thedigital level of the plant, and thereby enhance efficiency, realise predictivemaintenance and save energy. In the next 2 years, MIS will be applied tonearly 100 production lines in 18 plants of Swire Coca-Cola in China.Wang Haibin, General Manager of Digital Industries, Siemens GreaterChina said, “Driven by demands of personalised consumption, beveragecompanies are entering a new development stage that manufacturingis driven by data. ‘The successful launch of the MIS marks an importantmilestone for both sides to jointly explore the digital transformation ofthe beverage industry on a large scale. Taking the cooperation as anopportunity, we hope to help Swire Coca-Cola further explore the infinitepotential brought by cutting-edge technologies such as AI, big data andMindSphere, strengthen the supply chain of beverage industry andmanufacturing flexibility, enhancing the company’s digital leadership andits brand value.”In the future, Siemens will further expand the functions of the MIS system,including obtaining real-time production data nationwide through the APPsof Siemens MindSphere, analysing all the data in multiple dimensionssuch as efficiency, energy consumption, safety, quality and predictivemaintenance, so as to help Swire Coca-Cola achieve quality managementat the group level and further improve the digitalisation and intelligent levelof 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 peryear, equivalent to saving 3,200 tonnes of standard coal and reducing7,500 tonnes of carbon dioxide emissions. It will be of great benefit to SwireCoca-Cola in fulfilling its environmental sustainability goals.CAN PACKAGINGShanghai Baosteel Packaging plans Aluminium Pull-TopCan ProjectIn April, Shanghai Baosteel Packaging was reported to be planning toinvest Rmb 427 million (US$65.25 million) in an aluminium pull-top canproject 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 notdurable, often cannot be reused for the same purpose, and are expensiveto clean before being recycled. Glass bottles, on the other hand, are heavyand expensive to collect.According to the Japan Aluminum Association, it costs an average of Yen0.21 (US$0.002) to recycle a 500ml aluminum can, as compared with Yen5.42 (US$0.05) for a plastic bottle and Yen 8.36 (US$0.077) for a glassbottle of the same size.Aluminum cans however pose greater environmental concerns as a singlecan creates 170g of carbon dioxide compared to 137g for plastic bottle.Asia Food & Beverages 46
Distribution NewsASIASingapore-based Flash Coffee to useUS$15 million funding to open 300new stores in 2021Flash Coffee, a tech-enabled coffee chainbacked by Rocket Internet announced that ithas raised US$15 million in latest funding roundled by White Star Capital, with participationfrom prominent investors including DeliveryHero-backed DX Ventures, Global FoundersCapital, and Conny & Co.The new funding will be used to expand thebrand in 10 markets across APAC with 300 newstores planned for 2021.Flash Coffee was launched not long ago inJanuary 2020, and now operates 50 locationsacross Singapore, Thailand, and Indonesia.Flash Coffee has achieved strong profitabilityreflecting the success of its business model.CEO David Brunier and COO & CFOSebastian Hannecker co-founded the companyto make premium coffee accessible to Asia’srising middle class. Brunier’s experienceas Foodpanda CMO and Hannecker’s BainConsulting pedigree have informed FlashCoffee’s disruptive grab-and-go businessmodel, allowing for significant cost savings tobe passed on to customers.“Our dream is to have a Flash Coffee every500 metres in all major Asian cities,” saidBrunier.Seven new markets are already identifiedthis year and they include Hong Kong, Taiwan,South Korea, Japan, Malaysia, the Philippinesand Vietnam. Flash Coffee plans to build aregional HQ in Singapore and expand itsregional tech hub in Jakarta. Indonesia is oneof its major market for expansion in the nearfuture.The company aims to digitise today’s offlinedominatedcoffee industry with a newly launchedconsumer app that boasts a streamlined pickupfeature, sophisticated loyalty programme,personalised promotions and interactivechallenges. Its dedicated barista app improvesthe operational efficiency of its stores andenables performance-based incentives for itsbaristas, ensuring an unparalleled customerexperience.Flash Coffee’s unique coffee menu is alsocurated by World Latte Art Champion ArnonThitiprasert which sets it apart from conventionalcafes and quick service brands. All drinks areprepared with premium ingredients and 100%Arabica coffee beans.PHILIPPINESPuregold to open 500 stores in 2 yearsSupermarket chain Puregold Price Club Inc.is planning to expand its network to 500 outletsover the next 2 to 3 years through acquisitionsand organic expansion. For the rest of 2021, atleast 30 more stores will be added. Puregoldis also considering building smaller stores amidthe pandemic. Puregold had 403 stores as ofend-2020.Apart from Puregold stores, the grocery chainalso operates S&R membership stores and 46quick service restaurants.Puregold has also conducted 300 caravanDistribution Newstrips to residential areas to sell the goodsdirectly to the people.It saw a 9.2% jump in consolidated net salesto Pesos 168.63 billion (US$3.5 billion) in 2020as the company increased its focus on onlineshopping and digitalisation.Halal Filipino brands making theirway to Middle East via SandBoxMajor importer and distributor SandBox hassigned exclusive distribution agreements withFilipino brands that are getting Halal certificationto launch them in the UAE and GCC region.These include Oh So Healthy snacks whichproduces fruit crisps and Pacquiao 3-in-1Coffee, a brand co-owned and developed byFilipino boxer, Manny Pacquiao.SandBox hopes to launch these into UAEsupermarkets and health stores by Juneand July respectively. It will also help thesemanufacturers with relabeling into Arabic.SandBox CEO Lito German said, “We hope tocapitalise on the wellness trend, and at the sametime, expand our reach to a wider audiencebeyond the overseas Filipino workers.”A possible boxing tournament betweenManny Pacquiao with Terence Crawford in AbuDhabi this June might also help boost brandawareness of the coffee in the region. Pacquiao3-in-1 coffee is currently manufactured in thePhilippines, and SandBox is working with themanufacturer to dedicate a production linecomprising filling, packaging and labelling tocater to demand in the GCC market.SandBox is also the exclusive distributor forother Filipino brands including Delimondo(corned beef) and Arce Dairy (ice cream). Itsdistribution network spans the GCC region asContinue to page 48Malaysia International HalalShowcase (MIHAS) 2021The 17th Malaysia International Halal Showcase (MIHAS), scheduledfrom 9th to 12th September 2021, will be presented, for thefirst time, in a hybrid format. Organised by the Malaysia ExternalTrade Development Corporation (MATRADE) under the patronageof the Ministry of International Trade and Industry Malaysia (MITI),MIHAS is the world's largest trade fair focusing on Halal businessesand exports.MIHAS 2021 aims to further expand Malaysia’s halal economyagenda, steering the country towards the era of Industry 4.0 andfortifying its role as the global halal hub. Aptly themed, “EmpoweringHalal, Tomorrow, Together”, MIHAS 2021 will serve as a stagemaker for the latest halal innovations and business ideas toconverge. With the Covid-19 global pandemic shifting mindsets,business cultures and models, MIHAS 2021 will act as the overarchingumbrella 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 platformfor halal businesses expanding into new markets, and the nurturingof young emerging players through sustainable partnerships, theMIHAS 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 acrossall time zones 24 hours a day, 7 days a week for 3 months betweenSeptember to December 2021.MIHAS has successfully recorded 408,100 exhibitors andvisitors from over 88 countries, generating over RM17.2 billion(US$4.16 billion) in trade since its inception in 2014. Today, theIslamic Economy is a US$2 trillion market opportunity across arange of products and services guided by Islamic ethical faith-inspiredneeds. It is projected to grow to US$3.2 trillion by 2024.MIHAS 2021 will focus on showcasing 12 key pillars representinggrowing halal markets across the globe. These includelong-established sectors such as halal food and beverage,Islamic finance, pharmaceuticals, education and franchise.Contemporary sectors included this year comprise modestfashion, halal cosmetics and personal care, halal media andrecreation, Muslim friendly travel, food technology and e-commerce.Interested companies who wish to participate in MIHAS 2021and make a mark in the global Halal market may contact MsAzlina Jane Zahri, Director of Sales and Marketing at azlina.-jane@qube.com.my. For more information on MIHAS, pleasevisit www.mihas.com.my47 Asia Food & Beverages
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