Another successful year for Chr. Hansen: 9 % organic growth in 2017/18
Chr. Hansen achieved strong results in 2017/18, and growth is set to continue in 2018/19.
CEO Mauricio Graber says: “2017/18 was another good year for Chr. Hansen, and we finished strongly in Q4 driven by Food Cultures & Enzymes and Health & Nutrition. We achieved all the overall financial targets that we set at the beginning of the year, in spite of currency headwinds impacting both revenues and earnings, with organic growth reaching 9 %, EBIT margin before special items increasing to 29.2 %, and free cash flow before special items and acquisitions increasing by 4 % to EUR 196 m. For the full year, Food Cultures & Enzymes delivered strong growth organic of 12 %, performing well above the long-term ambition of growing 7 to 8 % per year, while Health & Nutrition and Natural Colours delivered moderate growth and grew by 8 % and 5 %, respectively.”
DuPont launches alternative to ascorbic acid for bakery applications
The rising costs of ascorbic acid is prompting many baking industry manufacturers to search for an alternative dough strengthener.
DuPont is the only producer of hexose oxidase, which serves as an alternative to ascorbic acid for bakery products. Unlike existing oxidative enzymes, the hexose oxidase technology present in the DuPont Danisco Grindamyl Surebake product range can utilize many different sugar molecules as a substrate rather than just glucose alone. This helps improve the gluten network in dough systems through oxidization during mixing and fermentation, forming stronger bonds between the gluten, thereby giving a better production with a drier dough and therefore no stickiness issue.
Südzucker reports significant drop in results during the first half of the year
Südzucker AG generated consolidated group revenues of € 3.475 (previous year: 3.493) bn during the first half (1 March to 31 August 2018) of the current fiscal year 2018/2019. The group’s consolidated operating result dropped sharply during the same period to € 139 (previous year: 282) m.
The decline is mainly attributable to lower results in the sugar and CropEnergies segments. The sugar segment’s revenues fell to € 1.389 (previous year: 1.516) bn in the first half of fiscal 2018/19, despite substantially higher sales volumes in exports and in the EU, driven by significantly lower sales revenues.
Last year sales revenues rose in the first half of the fiscal year, but they have been on a steep downward trend since October 2017. This caused operating result in the first half of fiscal 2018/19 to drop to € 3 (previous year: 111) m; a loss of € 6 (previous year: 47) m was recorded in the second quarter.
On 20 September 2018 Südzucker published a revised forecast for the 2018/19 fiscal year. Now consolidated group revenues are expected to reach € 6.6 to 6.9 (previous forecast: 6.8 to 7.1; previous year: 7.0) bn with group operating result of € 25 to 125 (previous forecast: 100 to 200; previous year: 445) m.
ZDS congress highlight of the year: Choco Tec 2018
From 3 to 5 December 2018, the international chocolate industry will meet again at the Congress Centre North of Koelnmesse in Cologne/Germany for Choco Tec 2018.
This year’s Choco Tec more than lives up to its motto “Inspiration – Information – Innovation” with numerous current topics and top-class speakers. Topics for 2018 include the prevention of fat bloom, mass customization with chocolate, the latest findings on cocoa contamination as well as automated remote maintenance concepts.
In addition to the lectures, the poster exhibition plays a central role. The conference participants can view the posters during the breaks and during the special “poster session”. After the great success at Choco Tec 2016, there will also be a “poster slam” this year, where poster exhibitors will be given the opportunity to present the most important contents of their research within one minute. The congress will be rounded off by a large foyer and product sample exhibition and the festive dinner in the world-famous Chocolate Museum on the first evening of the event.
Passina sells Dutch blending operations to Döhler
The Döhler Group and Passina have reached an agreement on the acquisition of Concentra Europe BV (more commonly known in the industry under the “Passina” brand).
Switzerland-headquartered Passina is a global business specializing in passion fruit. With its own processing facility in Ecuador, Tropifrutas SA, and a worldwide research, supply and distribution network, the group’s focus is the development, production and commercialization of natural passion fruit-based products and solutions.
This transaction marks a step where customers will benefit from a complete offering and improved efficiency of the combined businesses. This is in the face of a global market that is characterized by volatility, as well as the challenges and opportunities of supply and demand, according to the companies.
Barry Callebaut to acquire Inforum in Russia
The Barry Callebaut Group, the world’s leading manufacturer of high-quality chocolate and cocoa products, has signed an agreement to acquire Inforum, a leading Russian B2B producer of chocolate, coatings and fillings, serving many of the well-known consumer chocolate brands in Russia. This strategic acquisition will strengthen Barry Callebaut’s presence and production capacity in the high-growth Russian market, allow it to expand its market position, to leverage its value-adding Gourmet & Specialties business and to further increase market penetration in CIS countries and export markets.
Bosch Packaging: Clemens Berger heads Business Unit Food
On 1 October 2018, Clemens Berger took over the position as head of Bosch Packaging Technology’s Business Unit Food.
Clemens Berger brings with him extensive experience: from October 2015 he was CEO of Medipak Systems GmbH in Hamburg/Germany, whose products include packaging and inspection technologies for the pharmaceutical industry. Prior to that he held various management positions at Krones AG in Neutraubling/Germany, a manufacturer of packaging technology for liquid food and beverages. Most recently he was responsible for the Business Line Primary Packaging.
Bosch Packaging Technology’s Business Unit Food, headquartered in Beringen/Switzerland, has more than 3,000 employees worldwide and generates an annual turnover of more than EUR 600 m. It is a leading global supplier of machines, systems and solutions for horizontal and vertical primary and secondary packaging technology, filling and closing machines for liquid food, as well as process technology for confectionery production.
Brenntag and Cargill sign cocoa and chocolate distribution partnership for Central Eastern Europe
Brenntag and Cargill have reached an agreement, making Brenntag the exclusive distribution partner for Cargill’s industrial cocoa and chocolate in the Central Eastern European (CEE) region.
The collaboration with Cargill will expand Brenntag’s offering to the confectionery, bakery, cereals, desserts, dry mixes, ice cream and dairy industries across countries which include Poland, Czech Republic, Slovakia, Romania, Bulgaria, Hungary, Albania, Croatia, Slovenia, Serbia, Bosnia-Herzegovina, F.Y.R. Macedonia, Moldavia, Montenegro and Ukraine.
Brenntag’s commercial and technical teams work closely together with the food industry to choose the right ingredients for product optimisation or new product development related to market trends. The Brenntag Food & Nutrition Application and Development centres work to develop customer specific formulations and will be pivotal in bringing the Cargill’s cocoa and chocolate innovations to the market.
Uwe Schueltke, COO Brenntag EMEA, explains: “Brenntag CEE is a strong partner for taste and the addition of Cargill’s high-quality cocoa and chocolate range strengthens our position. Our taste specialists are looking forward to introducing the Cargill range to our customers.”
Inge Demeyere, Managing Director for Cargill’s chocolates and compound activities in Europe, adds: “Brenntag has a deep market understanding and a strong presence in the region. We have been impressed by Brenntag’s facilities and capabilities and how they manage complex supply chains whilst remaining close to the customer. We are excited about this collaboration because it allows two global market leaders to join forces to better serve food manufacturers in Central Eastern Europe.”
IRI confectionery monitor: summer heat melts revenues
The unrelenting heat wave this July and August had a negative effect on the development of confectionery revenues among German retailers.
The only category with an increase in revenues was salty snacks at + 5.7% up to € 2.046 bn and increased sales volume (+ 2.9%) of 259,449 tonnes. Suppliers of chocolate products (without season) suffered losses in both value (- 2.4%; € 3.234 bn) and quantity (- 3.4%; 325,419 t). In the sweet baked goods and cakes product group the declines in revenues (- 6.2%; € 1.419 bn) and sales volume (- 8.0%; 272,118 t) were even more significant.
The sugar confectionery category also suffered heavy losses in revenues (- 4.8%; € 1.254 bn) and sales volume (- 5.5%; 230,332 t). For the chewing gum segment the IRI market researchers calculated a drop in revenues of 1.9% down to € 322.3 m and a sales volume decline of 3.1% down to 224.8 million pieces.
Multivac reports positive business trend
As part of a press breakfast at packaging show FachPack, Hans-Joachim Boekstegers, Director and CEO of packaging specialist Multivac, gave an overview of the current development of the business as well as the packaging trends at Multivac and the company’s product highlights on the exhibition booth.
As regards the EU Plastics Strategy, which is being much discussed at the moment, Hans-Joachim Boekstegers voiced the opinion that the EU requirement on plastic recycling is concentrating solely on recycling capability. The added value, which plastic packaging offers during its life cycle, such as for example extending the shelf life of food without preservatives, or protecting consumers by means of sealed packs, is not being taken into consideration. New packaging concepts would have to offer comparable benefits to those of conventional solutions, particularly as regards the protection and shelf life of the packaged product, otherwise the proportion of spoiled or discarded food, which is already too high, would rise still further.
New packaging concepts would also need to be compatible with pack return systems, and new recyclable material would have to be easily recognizable as such – at the very least for the recycling converter and ideally for the consumer as well. Thanks to Multivac’s existing packaging technology, it is already possible today to have packaging concepts which provide reduced consumption of resources as well as dramatically increased recyclability.
