Opinion from food and drink industry experts, Zenith International
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40 acquisitions in August

September 13th, 2016 | Posted by Richard Hall in Richard Hall - (0 Comments)

40 food and drink transactions were recorded in the bevblog.net mergers and acquisitions database for August.

6 were valued at between $250 million and $500 million, with just 1 above that level:

• $765 million for the US packaging takeover of AEP Industries by Berry Plastics.

Of the 40 total, 9 were in alcohol, 5 in soft drinks, 4 in bakery, 4 in snacks, 3 in dairy and 3 in packaging.

21 were within national borders and 19 international, involving 22 countries. The United States featured in 18, the United Kingdom in 11, followed by Canada on 3 and France on 3.

40 acquisitions in August

September 13th, 2016 | Posted by Richard Hall in Richard Hall - (0 Comments)

40 food and drink transactions were recorded in the bevblog.net mergers and acquisitions database for August.

6 were valued at between $250 million and $500 million, with just 1 above that level:

• $765 million for the US packaging takeover of AEP Industries by Berry Plastics.

Of the 40 total, 9 were in alcohol, 5 in soft drinks, 4 in bakery, 4 in snacks, 3 in dairy and 3 in packaging.

21 were within national borders and 19 international, involving 22 countries. The United States featured in 18, the United Kingdom in 11, followed by Canada on 3 and France on 3.

Could South Africa be leading the way ?

I’m not aware of any country that has a comprehensive nutrition strategy, which then forms the basis for planning production on farms.

Yes, many have national dietary guidelines. But without any connection to agricultural policy.

At least South Africa has quantified the challenges and set some goals.

The challenges are huge and come from opposing directions:

• 63% of women and 41% of men are overweight or obese.
• 14% of children under 5 are overweight.
• Yet 29% of children are affected by stunting.

The goals for 2025 aim to:

• reduce stunting to 10%
• reduce underweight to 5%.

Necessary steps.

Alcohol without alcohol

August 16th, 2016 | Posted by Richard Hall in Richard Hall - (0 Comments)

Two recent announcements by global alcohol leaders have highlighted the opportunity for adult drinks with less or no alcohol.

Anheuser-Busch has predicted no and low alcohol beers will account for 20% of its sales by 2025. This compares with a market share of just 2.5% for beer up to 2.8% alcohol by volume in 2014.

After investing in a new UK non-alcoholic spirit called Seedlip in July, Diageo Chief Executive Ivan Menezes commented: “We want to be at the front-end of this … We want to stay in this consumer space where our brands play. We’re not interested in getting into the soft drinks space.”

I’ve picked three.

Top of the list is Belgian brewers being able to use the sun for making beer from urine. Scientists from the University of Ghent have found a way of using solar power to turn urine into drinking water and fertiliser. An experiment at a music festival then used some of the water for making beer. Hence the phrase coined by the team – “from sewer to brewer.”

Second is the idea of consuming cockroach milk as a source of protein. Researchers in India have discovered that milk from the Pacific beetle cockroach is 4 times more nutritious than cow’s milk and its protein releases energy over a long period of time. I wonder how long it will take to produce a glass half full.

Third is a hydrating brand which is not a water, called Original Source. It has 4 milk flavours which are not milk – almond, bamboo, coconut and vanilla. But what is it really ? It’s a shower moisturising soap.

Hydration qualities of milk

August 9th, 2016 | Posted by Richard Hall in Richard Hall - (0 Comments)

The New York Times published an article recently on the findings of a new “beverage hydration index”, which analysed the hydration effect of 13 different beverage types.

72 British men in their mid-20s each consumed 1 litre of water and the index was set at 1.0 for the amount they had not passed in urine 2 hours later.

4 beverages were found to have a “significantly higher hydration index than water.” An oral rehydration solution, fat-free milk and whole milk all scored around 1.5. Orange juice scored 1.1.

Lead author Ronald Maughan from Loughborough University commented: “When beverages contain nutrients and electrolytes like sodium and potassium, as milk does, the stomach empties more slowly with a less dramatic effect on the kidneys.”

Drinks containing caffeine, alcohol and higher sugar levels “had hydration indexes no different from water.” As Ronald Maughan elaborated: “It’s true that caffeine is a diuretic, but not at the concentration found in most coffee drinks.”

55 acquisitions in July

August 4th, 2016 | Posted by Richard Hall in Richard Hall - (0 Comments)

No sign of a Brexit or uncertainty slowdown in food and drink industry transactions, with 55 recorded on the bevblog.net database for July.

By far the biggest was the $12,500 million dairy sector acquisition of US based WhiteWave by France’s Danone.

The next two were:

• $621 million for Gores private equity to buy 58% of Hostess Brands bakery activities in the United States

• €420 million for Dutch dairy FrieslandCampina and others to purchase 51% of EngroFoods in Pakistan.

Within the 55 total, 11 were in soft drinks, 10 in alcohol, 7 in packaging, then 4 each in bakery, dairy, ingredients and services.

24 countries were involved. 27 were inside national borders – 14 in the United States and 6 in the United Kingdom. 28 were international – 11 involving the United States and 10 the United Kingdom.

Overall, the United States featured in 25, the United Kingdom in 16, the Netherlands in 6, then France and Italy in 4 each.

US milk drink growth

July 26th, 2016 | Posted by Richard Hall in Richard Hall - (0 Comments)

Zenith’s Global Dairy Congress at the end of June provided a plethora of market insights, especially about the relative growth for different types of milk drinks in the United States.

Fairlife Chief Executive Steve Jones emphasized the promise of added value milks.

US Milk Drink Growth - Slide1

Dairy Farmers of America Senior Vice President Jay Waldvogel noted improved fortunes for milk fat.

US Milk Drink Growth - Slide2