Mad Cow scare hits US beef products export
The
discovery of the Mad Cow disease in Washington in December 2003 has
gravely affected the processed beef products industry in the US with
a number of major importing countries closing their doors to US beef
exports. More than 40 nations, have cut off purchases of US beef and
beef products and according to the latest forecast the US exports in
2004 are expected to slide to 220 million pounds, down from a previous
forecast of 2.6 billion pounds, while production is unchanged at 25.5
billion pounds. Malaysia and Indonesia, importer’s of beef from US,
have even ordered shops selling US processed beef products to withdraw
the commodity from the market. Another issue of concern to the US meat
companies is the processed beef products that were en route to other
countries when the mad cow disease was discovered on December 23, 2003.
The American Farm Bureau Federation has estimated that about 2,000 containers
– carrying a total of more than 70,000 pounds of US beef (raw and processed)
– have been stranded on water because the importing nations will not
allow the ships to dock and unload. The USDA (US Department of Agriculture)
officials on the other hand said that the discovery of the disease does
not mean that all US beef and its products are unsafe. Rather, it demonstrates
that the safety procedures are sufficiently tracking the disease and
moving quickly to prevent its spread, they claimed
Tingyi
strengthens its position in Chinese beverage market
Asahi and Itochu, a brewing company and trade firm respectively, have
joined hands with the Chinese packaged food and beverage producer, Tingyi,
in a bid to strengthen its position in the growing Chinese beverage
market. China’s beverage market has attracted a great deal of interest
from foreign manufacturers recently. The country’s beverage market has
been growing at an average rate of 15 per cent per annum since the early
1990s, and the market size in 2002 had doubled in value since 1997.
This ranks the Chinese beverage market as one of the most dynamic in
the world. On the product front, the Chinese market has seen a vibrant
growth in a broad range of beverage products, such as tea and juices,
where Tingyi respectively ranks number one (45 per cent) and two (20
per cent) in terms of market share. The partners say that they will
seek to develop the company into a beverage giant to further take advantage
of the growing demand and rising household income in China. Tingyi is
the largest packaged food producer in China with sales of $106.8 million
in 2002. It is principally engaged in the research, development, manufacture,
distribution and sale of instant noodles, bakery products and beverages.
The company’s beverage division consists of thirteen plants around China,
with a $34.8 million turnover in last year.
KTDA
to supply tea to Russia, plans to expand in Asia
The Kenya Tea Development Agency (KTDA) has entered the Russian market
and is keenly spreading its wings in several other Asian countries.
The agency said that it was looking to establish joint ventures with
some of the tea consuming countries as part of its efforts to add value
to Kenya’s tea exports. Currently, Britain and Pakistan are the largest
consumer of Kenyan tea closely followed by Egypt, Sudan, Afghanistan
and several other European destinations. Last year, Kenya produced over
290 million kilograms of made tea (black tea), with KTDA accounting
for over 60 per cent of the production. Statistics provided by the Tea
Board of Kenya show that the production of tea in November 2003 reached
27,661,152 kg representing an increase of 7.29 per cent (1,878,767 kg)
over November 2003 when production stood at 25,782,385 kg.
Kraft
Foods announces new organisational structure
In
an effort to deliver sustainable growth, Roger K Deromedi, Chief Executive
Officer, Kraft Foods, recently announced a new global organisational
structure. This new global structure will bring together three organisational
dimensions to better leverage Kraft’s global scale. First, a new global
marketing and category development group is being formed to accelerate
growth and global expansion. Second, geographic-based commercial units
will be responsible for driving strong results country by country. And
third, key functions will now be worldwide in scope in order to increase
effectiveness and drive cost savings across Kraft’s business system.
All three groups will work together in alignment with the company’s
five global consumer sectors – beverages, snacks, cheese and dairy,
convenient meals and grocery. Kraft Foods markets many of the world’s
leading food brands, including Kraft cheese, Jacobs and Maxwell House
coffees, Nabisco cookies and crackers, in more than 150 countries.
Pepsi
re-enters Iraq, joins hands with a local company
PepsiCo
and the Baghdad Soft Drinks Company, Iraq’s largest soft drink bottler,
have reached an agreement to bottle Pepsi in Iraq. The franchise agreement
authorises Baghdad Soft Drinks Company to produce and distribute PepsiCo’s
Pepsi- Cola, Seven-Up and Mirinda soft drink brands in central Iraq.
The products will be available from the first half of 2004. The agreement
is expected to create some 2,000 new jobs at Baghdad Soft Drinks Company
over the next several years, as well as new economic growth opportunities
for retailers, distributors and suppliers in the region.
Wrigley
acquires confectionery businesses
Wrigley recently announced that it has signed a purchase agreement with
Agrolimen, a privately held Spanish food conglomerate, for certain confectionery
businesses of its Joyco Group. The acquisition will be to the tune of
$272 million, and the cash transaction, which amounts to € 215 million,
is for Joyco’s operations in China, France, India, Italy, Poland and
Spain, as well as Cafosa, its chewing and bubblegum base business. Key
additions to the Wrigley Company`s famous brands will now include Boomer
bubblegum, Pim Pom lollipops and Solano candy, currently sold in over
70 countries.
Tropicana
launches new products
Tropicana Products Inc has announced the availability of a new sub-line
of fortified orange juice and juice beverage products in the US that
meet individual consumer needs – from less sugar and calories to more
vitamins and minerals. Pure Premium Essentials, available in five varieties
and part of the Tropicana Pure Premium line, takes the quintessentially
healthy breakfast staple to a new level of wellness. Tropicana uses
a proprietary, patent- pending process to reduce sugar and calories
by one-third without compromising taste or nutrition. Light `n Healthy,
one of the five brands launched, is as close to 100 per cent Pure Premium
as Tropicana can make it – both in taste and nutrition.
Ireland-based
Lakeland to supply to Baileys
Lakeland Dairies, Ireland’s fourth-largest dairy group, has won a major
supply contract with Baileys. The Cavan-based group will supply fresh
cream to Baileys, part of UK leading drinks company Diageo, for use
in its cream liqueur. Baileys Irish Cream, which accounts for over 50
per cent of Irish spirit exports, requires 50 million gallons of milk
annually. Lakeland processes more than 200 million gallons of milk annually,
and is the country’s biggest exporter of dairy products, single portion
milks and whiteners for tea and coffee that are used by fast food chains,
hotels, restaurants and airlines. It has expanded rapidly in recent
years by acquiring a Kerry Group operation in Baileboro for Euro 33
million, and a Nestle milk processing plant in Omagh.
Bun-less
burgers by Burger King
US-based
Burger King is strongly planning its menu to join the low-carbohydrate
run. The latest move in this regard is the bunless Whopper hamburgers,
which will be followed by salads featuring steak, chicken and shrimp.
While bun-less burgers will be available in all 8,000 US restaurants
immediately, the new salad line will debut in phases. Those featuring
chicken and shrimp will roll out in February and March, but steak versions
won’t appear until May. Burger King’s introduction of lowcarbohydrate
fare follows that of some competitors. McDonald’s restaurants in New
York City have posters and brochures advising customers how they can
lower their carbohydrate intake by modifying what they order. Similarly,
Wendy’s International Inc has nutritional information posted on the
web.
Cargill
enters the European flavour scene
US-based Cargill has signed on the dotted line with the UK flavours
company, The Duckworth Group (TDG). The acquisition of the privately
owned UK flavours and essences company provides Cargill with a neat
springboard onto the UK market, as well as a wider product portfolio.
Privately held by the Duckworth family till now, TDG has five business
divisions – alcohol, confectionery, dairy, savoury and soft drinks –
manufacturing flavours both in liquid and powder form and flavour emulsions
and operations all around the world in the UK, Africa, China, India
and South Africa. The move marks the next step in Cargill’s strategy
to build upon its existing expertise by acquiring companies that have
complementary skills in the development of unique products and services.
Although the US giant currently produces flavour carriers, emulsifiers,
functional ingredients, sweeteners and other speciality ingredients,
it had not yet entered the European flavour business.
KFC
granted permission to enter Tibet
KFC (Kentucky Fried Chicken) has been granted permission by China to
enter Tibet – the last province to hold out against the onslaught of
American fast food. KFC chain is a unit of Yum Brands. It already has
1,000 outlets in China and plans to open 100 more in 2004. Yum Brands
has also laid out expansion plans for its, Taco Bell and Pizza Hut restaurants
in China. China is the firm’s biggest market outside the US. According
to the available figures, the company’s China operations contributed
one-third of Yum’s international profits of $389 million during fiscal
2002.
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