In last week’s industry news, the UK government simplifies post-Brexit trading rules for some food products from developing countries while the FAO strengthens ocean conservation. Oatly introduces its new soft scoop ice cream in time for summer, and Nestlé Breakfast Cereals has introduced two new products containing whole grain wheat flour, rice and corn. Meanwhile, BASF bolsters menthol and linalool production for flavors.
In brief: Business news
Celanese Corporation and Mitsui & Co have agreed to form a food ingredients joint venture under the name Nutrinova. Celanese will contribute the assets, technology and employees of its Food Ingredients business while retaining a 30% stake in the joint venture. Mitsui will acquire the remaining 70% stake at a purchase price of US$472.5 million. The parties expect to close the transaction in the second half of 2023, pending regulatory approvals.
The UK government says it is “radically simplifying” trading rules and cutting tariffs on products from developing countries as part of its new post-Brexit Developing Countries Trading Scheme, which entered into force this week. It covers 65 countries and removes or reduces tariffs, and simplifies trading rules so that more products qualify for the scheme, including some food products. The scheme saves UK businesses over £770 million (US$980 million) annually by removing or cutting tariffs on over £9 billion (US$11.5 billion) of imports.
BetterBrand, the food tech company involved in innovation in the US$12 trillion refined carb space, announces the closing of US$6 million in Series A funding at a pre-money valuation of US$170 million. Verso Capital led the round with participation from returning VCs such as Gaingels Fund, Alexis Ohanian’s Seven Seven Six, and Craft Lane. The company has long attracted the investor community’s attention due to its high growth, innovative “grain-changing” technology and large-scale market potential.Practical trade
Arva Flour Mills, North America’s oldest continuously operating commercial flour mill, has acquired the Full of Beans Gluten Free Brand. It plans to launch the gluten-free line under the Arva Flour Mills brand this month at its retail store and online. Further plans to distribute the Arva Flour Mills gluten-free brand into other retail locations are projected for this summer.
The Kerfoot Group will fully transition to its sister company Oleon NV, a natural chemistry brand. Oleon is part of the Avril Group, an international agro-industrial group based in France specializing in food, animal feed, energy, and sustainable chemistry. Avril has decided to join its two subsidiaries – employees, products, and expertise - under the Oleon global brand to accelerate its development in natural specialties.
Brown-Forman Corporation has agreed to sell its Finlandia vodka brand to Coca-Cola HBC AG for US$220 million, subject to the customary closing process. The purchase is expected to close in the second half of 2023.
Dawn Meats has decided to sell its minority shareholding in Elivia to Terrena, the majority shareholder of the French company. Since 2015, significant investments have been made at Elivia, and improved performance has resulted from the two companies' collaboration. Following ongoing discussions and a review of long-term business strategy, both parties have decided on alternative arrangements for the ownership of the company.
BASF has strengthened its Ludwigshafen, Germany, site with additional plants for menthol and linalool in the area of fragrances and flavorings. The original announcement was made in March, but this week saw the first signs of construction. Both plants are scheduled to go into operation in 2026.Oatly vanilla soft serve
In brief: Innovation news
Nestlé Breakfast Cereals has introduced two new products Koko Krunch Millet-Jowar and Munch breakfast cereals, to its portfolio in India. The breakfast cereals used local grains such as Jowar, also known as the “King of millets,” which has been introduced along with existing ingredients such as rice and wheat. It comprises three grains: whole wheat flour, rice, and corn.
Oat drink company, Oatly Group AB, has launched Oatly Vanilla Soft Serve ice cream in the UK market. It is available to foodservice providers. It offers the cold, creamy texture of soft serve ice cream but made with oats. It is suitable for vegans and is soy and dairy-free. According to the company, JenkiI will be using the product to create a Matcha Soft Serve ice cream available in their Matcha bars across London, and plant-based restaurant chain, Neat Burger, backed by Leonardo DiCaprio and Lewis Hamilton, will also exclusively be using Oatly Soft Serve in its soft serve shakes.
In brief: Sustainability news
Olam Agri in Nigeria has been recognized for its impactful sustainability investment. The agribusiness’ Seeds for the Future (SFTF) initiative emerged as a Sustainability Initiative of the Year at the African Food Awards 2023, held recently in Nairobi, Kenya.
The USDA is recognizing National Pollinator Week this week through the continued commitment and support for pollinator health and research. Pollinator species, such as bees, other insects, birds and bats, play a critical role in producing more than 100 crops grown in the US. According to the USDA, honey bee pollination alone adds more than US$18 billion in value to agricultural crops annually.
Lesaffre has signed the first solar CPPA (Corporate Power Purchase Agreement, a direct sale of electricity between a producer and a consumer) in northern France to supply the group’s largest yeast plant in Marcq-en-Barœul. This deal with Sun’R, a company founded 16 years ago and committed to the energy transition through photovoltaic projects and services dedicated to renewable energies, was made possible thanks to the support of Volterres, a supplier of green, local electricity and solutions to support the energy transition. It enables Lesaffre to buy a part of the output from the Cambrai Niergnies Séranvillers-Forenville photovoltaic power plant in a short circuit.
The FAO has welcomed the approval by UN member states of a landmark legally binding agreement, under the UN Convention on the Law of the Sea, for the conservation and sustainable use of marine biological diversity in international waters, covering nearly two-thirds of the world’s oceans. FAO is set to implement the accord, often referred to as the “High Seas Treaty,” on safeguarding Marine Biodiversity of Areas Beyond National Jurisdiction, which has been under discussion for nearly two decades and was approved at an intergovernmental conference in New York earlier this week.
Resonant Technology Group reveals the scientific results of its product, SOP Lagoon, which delivers reductions in greenhouse gas emissions and sustainability benefits for the beef and dairy industry. A joint study by the University of Milan and UC Davis, published in a paper in the peer-reviewed journal Sustainability, points to significant reductions in greenhouse gas emissions in dairy lagoons, with 80% less methane and 75 % less carbon dioxide, within weeks of first use of the SOP Lagoon product.
