Last week in industry news, Nestlé and L Catterton formed a partnership focusing on the Fresh Prepared Foods sector. Danish Crown revealed its latest investment for a new UK bacon factory and Lesaffre strengthened its presence in Australia. Meanwhile, Ecotone became the world’s highest-scoring global food business in B Corp recertification and a new report examined the cost of pig production in 17 countries.
In brief: Business moves
UK supermarkets are limiting the number of eggs consumers can buy. Big chains like Aldi, Asda, Lidl, Marks & Spencer, Morrisons and Tesco are only allowing customers to go home with a couple of boxes of eggs, as the avian flu has hit producers hard. Farmers are calling for prices to increase to make ends meet as other headwinds, such as high chicken feed prices and skyrocketing energy costs bite.
Nestlé and L Catterton’s new partnership brings together Freshly and Kettle Cuisine, a manufacturer of fresh artisanal foods for retail and foodservice customers. The combined company will focus on offering a wide assortment of fresh food products to customers across geographies and various channels. L Catterton will be the majority owner, with Nestlé holding a minority stake.
Nestlé is focused on developing affordable foods and beverages that incorporate nutritious plant proteins to help people achieve adequate and balanced diets. With this in mind, Nestlé has developed a powdered shelf-stable plant-based protein blend to complement egg dishes affordably in Latin America. When cooking their favorite egg dishes, people can replace some eggs with the nutritious soy-based alternative, resulting in an equal amount of protein and a reduction in saturated fats and cholesterol at a lower cost when compared to using more eggs instead. The product is fortified with iron to address one of the primary micronutrient deficiencies. It is versatile for many dishes, such as scrambled eggs, omelets or baking.
Danish Crown has revealed a significant investment in a new processing facility in Rochdale, UK, offering high-quality, traceable pork products produced more sustainably and to provide a critical supply of bacon for the UK market. Danish Crown will invest more than £100 million (US$121 million) in the processing facility which will use processing technology to slice and pack bacon and gammon produced to UK welfare and food safety standards. Production is expected to begin in the second half of 2023, and once it is fully operational, the plant will produce more than 900 metric tons of bacon and gammon a week.
ICL Food Specialties joined forces with Protera Biosciences, an AI-driven food tech start-up and designer of novel proteins used to develop sustainable, highly functional protein-based ingredients for food manufacturers. The partnership follows ICL’s 2021 investment in Protera via ICL Planet Startup Hub, which is the vehicle ICL uses to invest in and collaborate with innovative companies in food tech and agri-tech on a global basis. ICL and Protera will develop and commercialize sustainable protein-based ingredients using precision fermentation.
AAK has acquired 100% of the shares in Arani Agro Oil Industries. The acquisition aligns with AAK’s strategy to expand geographically and increase its market share in India’s high-value specialty oils and fats market. Arani operates out of Kakinada Port on the southeast coast of India. Over the coming years, AAK will increase capacity and improve efficiency in the production facility. In addition, the investment will support the broader development of the region, and AAK will expand its community impact and support program in India to the newly acquired AAK site.
Lesaffre Australia Pacific has inaugurated a molasses extract plant on its production site near Melbourne and unveiled improvements to its baking center located in Mortlake Sydney, the showroom that trains customers, partners and employees in the art of bread-making. For Lesaffre, strengthening its presence in the region illustrates the group’s desire to expand its geographical footprint globally and promote the co-products derived from its activity in a circular economy.
Hydrosol is focusing on cost reduction amid high inflation and exploding energy prices. According to the Germany-based specialist in stabilizing and texturing systems, volatile availability and price fluctuations on raw materials markets are a huge challenge for the food industry. The company is working to find ways to reduce cost-driving raw materials in stabilizing systems, as well as to develop new systems on this basis. One example is ice cream. Locust bean gum is a familiar ingredient here thanks to its many functional properties. For example, it gives a slow, gentle melt and prevents the formation of ice crystals. It also gives ice cream a fuller mouthfeel, and makes it creamier and “warmer.” Prices have dropped back down a little bit after a huge jump in the spring, but locust bean gum still costs four times what it did a year or two ago.
In brief: Sustainability efforts
Ecotone, which works in the organic, plant-based and Fairtrade food space, has released its latest sustainability report and Food for Biodiversity action plan. The report coincides with Ecotone’s B Corp recertification, becoming the world’s highest-scoring global food business with 116.5 points – surpassing its previous 91.7 score achieved in 2019. The average score for B Corp assessments is 50.9, with a certification minimum of 80.
The European Financial Reporting Advisory Group has submitted the first draft of standards for mandatory sustainability reporting by big companies in the EU to the European Commission. This is important for consumers as it means companies must publish comprehensive and comparable information about their sustainability, from environmental impact to workers’ rights. This will help investors and consumers to invest and purchase more sustainably and contribute to meeting the EU’s sustainability objectives.
In brief: Other highlights
The board of directors of the African Development Fund has approved a US$27.9 million grant to Ghana for developing agricultural value chains in the Savannah region. The grant will increase the climate-resilient production of maize, rice and soybean, support the poultry value chain and generate employment for women and youth. It will increase farmers’ incomes and support household nutrition, especially in more vulnerable women-headed households.
The Agriculture and Horticulture Development Board has published an annual report examining the cost of pig meat production in 17 countries. The Pig Cost of Production in Selected Countries has been updated with full-year data from 2021, showing GB costs for indoor pigs increased 20% to £1.79 (US$2.17) per kg. All EU countries experienced an increase in production costs compared with 2020, with the average cost reaching £1.50 (US$1.82) per kg deadweight, up 6% in sterling terms. The UK reference price of £1.50 (US$1.82) per kg was 7% lower in 2021 than the previous year, resulting in negative margins for the whole year.
