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Nestlé has announced an investment of up to CHF 2 bn Swiss francs to pioneer the shift from virgin plastics to food-grade recycled plastics and accelerate the development of innovative sustainable packaging solutions. Building on its 2018 commitment to make 100 % of its packaging recyclable or reusable by 2025, the food and beverage giant says it will reduce its use of virgin plastics by one third in the same period whilst working with others to advance the circular economy and clean up plastic waste from oceans, lakes and rivers.

In the first three quarters (1 March to 30 November 2019) of the current 2019/20 fiscal year, Südzucker AG posted group consolidated revenues of € 5.028 (previous year: 5.192) bn. While the sugar segment’s revenues fell sharply, the fruit segment’s held steady at last year’s level and the special products and CropEnergies segments’ rose. Group EBITDA rose from € 373 (previous year: 345) m due to the first-time application of IFRS 16 on 1 March 2019 and the associated recognition and depreciation of leases already recognized in other operating expenses for accounting purposes.

After nine months group operating result was comparable to last year’s level at € 113 (previous year: 116) m. Although the sugar segment reported losses as expected, the third quarter was significantly better than the same period during the previous year. While the decline in results continued in the fruit segment, the increase in results was again stronger in the special products and CropEnergies segments.

In the financial year 2019, Lindt & Sprüngli achieved very solid sales growth, gained substantial market shares and once again grew faster than the overall chocolate market. Lindt & Sprüngli Group’s sales amounted to CHF 4.51 bn. This represents organic growth of 6.1% and is therefore within the target range set for the financial year. The currency environment was still volatile in 2019. This had a negative currency effect on consolidated results, also due to the weaker Euro. Sales resulted in an increase of 4.5% in Swiss Francs. All three regions – Europe, North America and Rest of the World – contributed to this excellent result. In particular, the leader products Lindor and Excellence were key growth drivers. Many new retail stores were opened, expanding the global network to around 500 shops and cafés. The market environment continues to be very challenging. Various political instabilities, along with a changing retail landscape, are putting pressure on the saturated US and European markets. Despite this, the premium chocolate market grows above average – a trend that Lindt & Sprüngli, as a leading global manufacturer of premium chocolate, can benefit from.
Lindt & Sprüngli achieved solid organic growth of 6.2% in Europe. This result is very encouraging given the difficult political conditions in general, such as Brexit. Lindt & Sprüngli once again managed to expand its market share in all key countries and to grow faster than the market average. Sales growth was particularly strong in Germany and Austria. But sales also rose in the home market of Switzerland, as well as in the countries Spain, Italy and France, while Eastern European subsidiaries and the United Kingdom even reported double-digit growth.
The North America region achieved strong organic sales growth of 5.4%. Despite the changing retail landscape, characterized by substantial price pressure, all three brands – Lindt, Ghirardelli and Russell Stover – contributed equally to this solid result. The subsidiary in Mexico also finished the year with double-digit sales growth. Lindt & Sprüngli with its three brands Lindt, Ghirardelli and Russell Stover is the clear number one in the premium segment and number three in the overall chocolate market in North America. The Rest of the World segment continues to grow and generated organic sales growth of 7.6%. The markets of Japan, China and Brazil performed particularly well, with all three reporting double-digit growth. These countries still hold substantial growth potential for Lindt & Sprüngli, as the consumption of premium chocolate is steadily rising in these markets.
The strategy of the own store network pays off and Global Retail once again made a notable contribution to the overall Group result. With numerous new openings, Lindt & Sprüngli is now present at around 500 locations worldwide and offers consumers a one-of-a-kind brand experience. Every year, millions of chocolate lovers visit the company’s own shops. The biggest drivers for the retail business were Japan and Brazil.
The 2019 result will include two extraordinary one-off adjustments affecting EBIT and taxes that will offset each other at net income level: The financial statement 2019 will be impacted by an extraordinary provision and restructuring costs of around CHF 60 m (net of tax) in the logistics, production and retail network as well as merchandising in the USA. Cost savings from the related projects will improve future results of the US-subsidiaries, while at the same time allowing for increased support of the brands for future sales growth. This expense is offset by a positive one-time tax benefit, also around CHF 60 m, related to the Swiss tax reform approved in 2019, as well as other items. As a result, the two one-time adjustments will not impact the reported net income and the earnings per share in the results 2019.
The Group’s operating margin (before consideration of the one-off restructuring charges and impairments) in the financial year 2019 is expected to increase within the given medium to long-term strategic target range of 20-40 basis points. Also for the years to come, Lindt & Sprüngli still confirms its mid- to long-term sales growth target of 5-7% p.a., combined with a steady improvement in the operating margin of 20-40 basis points p.a.

Mondelez International has launched its Cadbury energy bar in new packaging made from 100 % recyclable sustainably sourced paper that will be trialled and tested exclusively in New Zealand. The trial will test the durability and effectiveness of paper packaging in transport plus gather feedback from consumers. It is the first time the company has used a paper material that does not include laminate, foil or plastic for fully sealed flow-wrap packaging. Many existing paper based food wraps have a thin plastic film to protect the product, but the Cadbury energy paper acts as a barrier to protect food and ensure freshness.

The move follows a similar technical breakthrough in confectionary packaging by Nestlé who announced in summer that its YES! snack bar range will be wrapped in recycled paper for the first time, claiming “a world first” in recyclable packaging. Cara Liebrock, Managing Director, Mondelez International New Zealand, said: “We are committed to making 100 % of our packaging recyclable by 2025”.

Raisio Group is targeting the expansion of its international oat business, with investments of EUR 8 m funnelled into increasing capacity at the company’s oat mill in Nokia/Finland. This will allow the company capability to produce gluten-free oat products at its mill. The popularity of oats is notably sustained by a burgeoning consumer appetite for plant-based proteins.

“Thanks to the investments, our oat mill is now in top working condition,” says Pekka Kuusniemi, President and CEO of Raisio. “We increased the mill capacity and our ability to manufacture different oat products to meet the growing demand in Finland and the rest of Europe. The oat boom is just beginning in Europe now, so the growth perspectives are quite interesting”.

ADM has acquired Yerbalatina Phytoactives, a Brazilian plant-based extracts and ingredients manufacturer. The move is a bid to enhance ADM’s portfolio of ingredients from natural sources that bolster health, to stay abreast of trends in health and wellness.

ADM’s increasing expansion since 2017 into this space is a direct response to the growing consumer demand for fortified foods, beverages and supplements. This acquisition expands ADM’s already significant footprint in Brazil.

Vikram Luthar, President of ADM’s Health & Wellness business, says: “Yerbalatina’s wide array of natural botanical extracts – including organic-certified ingredients – combined with their R&D capabilities and market expertise, are exciting additions to our pantry as we continue to build our leadership position in science-based microbiome solutions for human and animal health”.

Ice cream mega-brand Magnum has launched a new line of Ruby chocolate-covered mini ice creams in the US. The Magnum Ruby Minis release makes Magnum the first brand in the US to launch an ice cream featuring the fourth type of chocolate.

The ice creams are available in packs of six bars at select retailers now and will be rolled out to grocery stores nationwide by February. The launch comes after the US Food and Drug Administration granted a Temporary Marketing Permit to Barry Callebaut – Ruby’s supplier – in November 2019, allowing the marketing of Ruby as the fourth type of chocolate, after dark, milk and white, in the US.

Pegged as the fourth type of chocolate, Ruby is the first new chocolate in 80 years, following white, dark and milk chocolate. Made with the recently discovered Ruby cacao bean, Ruby cacao expresses a special berry fruitiness and pink colour.

At ProSweets 2020 in Cologne (2 to 5 February 2020, hall 10.1, booth D28/E29), Paradise Fruits by Jahncke will debut its latest range of freeze-dried Crunchy granulates. Developed by the company’s Freeze Dried division, Crunchy granulates are manufactured through a specially adapted freeze-drying process that allows customers the option of a one-component recipe made of 100 % fruit, or a combination with yogurt or additional carriers, the company notes.

The launch comes as specialty for chocolate and confectionery, functional or “better-for-you” snacks and baked goods that include natural ingredients, such as whole or cut fruits. The granulates are available in bespoke shapes and cut into sizes making them ideal for use in these applications. They are the natural choice for manufacturers looking for a lightweight, nutritious and delicious ingredient to add flavour, colour and texture. The pure fruit recipe retains many of the natural flavour and colour characteristics offered by fresh fruit, but in a format more suitable for snack and confectionery applications.

Flavour combinations in the Paradise Fruits Crunchy range include Strawberry & Basil, Raspberry & Thyme, Mango & Rosemary, Orange & Chilli, Mango & Matcha Tea and Strawberry & Tomato. Exotic blends with apricot, mango, banana and passionfruit and non-fruit flavours, including cappuccino and salted caramel, are also available.

Cepi, the European association representing the paper industry, has announced a new alliance called 4evergreen. The aim of the alliance is to boost the contribution of fibre-based packaging in a circular and sustainable economy that minimizes climate and environmental impact. The alliance will increase awareness about the benefits of fibre-based packaging materials, advocate for EU legislation supporting product design for recyclability and call for the development of optimized collection systems and appropriate recycling infrastructures.

The rise of environmental awareness and consumer concerns, as well as the increase of packaging focused regulation, such as the Single Use Plastics Directive, have helped companies to accelerate the development of alternative packaging materials including fibre-based packaging with a view to helping consumers make more climate-friendly choices.

4evergreen was created as a forum to engage and connect industry members from across the fibre-based packaging value chain, from paper and board producers to packaging converters, brand-owners and retailers, technology and material suppliers, waste sorters and collectors.

“The 4evergreen alliance is important because it was born from an initiative of consumer product industry leaders who recognize the huge potential of fibre-based packaging in a circular economy”, said Susanne Oste, VP Innovation and Sustainability at Sappi. “Their customers want sustainable packaging and fibre-based products provide the most climate-friendly solution available. Sappi is proud to play a part in this industry alliance. We have been investing heavily for more than ten years in cutting edge research into real solutions for the problems that confront our customers. A recent success is the launch of the only fully recyclable confectionary wrapper on the market today.”