Business News

Coca-Cola to acquire Costa for US$5.1 billion, gains major footprint in coffee

31 Aug 2018 --- The Coca-Cola Company has reached a definitive agreement to acquire UK headquartered coffee chain Costa Limited for £3.9 billion (approximately $5.1 billion). Costa was founded in London in 1971 and has grown to become a major coffee brand across the world. Operations include a leading brand, nearly 4,000 retail outlets with highly trained baristas, a coffee vending operation, for-home coffee formats and Costa’s state-of-the-art roastery.

The Brexit cliff-edge: “No-deal” worries grow, but what does it mean for food?

27 Aug 2018 --- The UK government has published the initial list of no-deal technical notices which detail what industry should do in the worst case scenario when Britain exits the European Union. Designed to allay the substantial concerns about prices rises, food shortages, EU workers, trade barriers, border chaos and much more, the first batch of notices set out advice for people and businesses should the UK crash out of the EU without a deal, but the list doesn’t seem to have quashed the concerns of industry as government officials expected, but instead fanned the flames even more as the Brexit deadline looms.

Biocatalysts reveals £6 million plant investment

27 Aug 2018 --- UK-based speciality enzyme company, Biocatalysts Ltd. has celebrated its 35th anniversary this year with a major investment into its future manufacturing capacity. Over £6 million (US$7.7 million) will be invested in total, comprising an 11,000 sq ft extension to the existing building which has just been completed. The next step is to fit out the building with cutting-edge equipment, including a 10m3 fermenter and down-stream processing machinery.

UK-China dairy deal: Export boost as Chinese dairy appetite pushes up demand

24 Aug 2018 --- The UK dairy sector will receive a multi-million-pound export boost as China agrees to import UK dairy products made with milk from third countries. The £240 million (US$308m) five-year deal was secured in China yesterday (August 23) as International Trade Secretary Dr. Liam Fox MP met with China’s General Administration of Customs to reach the agreement. It comes amid a high period of uncertainty around British exports with the possibility of a no-deal exit from the EU at the end of March 2019 looking increasingly possible.

Sainsbury’s-Asda merger: Competition investigation begins

24 Aug 2018 --- The UK Competition and Markets Authority (CMA) has launched its formal investigation into the proposed merger between retailers J Sainsbury PLC and Asda Group Ltd saying that “it’s vital to find out if the millions of people who shop in supermarkets could lose out as a result of this deal.”

Frutarom reports record Q2, updates on takeover by IFF

24 Aug 2018 --- Frutarom, one of the world’s 10 largest companies in the field of flavors and specialty fine ingredients, reports another record-breaking quarter and half-year, in sales, profit, and earnings per share. The accelerated increase in revenues this quarter stems from a combination of the rapid internal growth in Frutarom’s core activities – the Flavors Division and Specialty Fine Ingredients Division – and the acquisitions it has made. 

Weekly Roundup: ADM completes Rodelle buy, Disruptive Asian start-ups to reduce food loss

24 Aug 2018 --- In business news this week, ADM completed its acquisition of Rodelle Inc., a premium originator, processor and supplier of vanilla products. An external evaluation of The European Food Safety Authority (EFSA) welcomed new mechanisms for engagement with stakeholders, initiatives in the field of access to data and a strengthened independence policy. Also this week, Rabobank launched a competition for disruptive Asian start-ups to reduce food loss.

Pectin footprint expansion: Cargill to invest US$150 million in new Brazilian HM pectin plant

24 Aug 2018 --- Cargill has revealed plans to invest US$150 million to construct an HM pectin production facility in Brazil. HM pectin is a versatile, citrus fruit-based texturizer used for jams, beverages/juices, acid dairy drinks and confectionery. The intended project is part of a comprehensive plan to strengthen Cargill's full pectin footprint, including improvements to its existing three plants in Europe (Germany, France and Italy) and adding a new plant in Brazil to take advantage of local resources.

Pectin distribution deal: Brenntag North America partners with Silvateam

23 Aug 2018 --- Brenntag North America, Inc., part of Brenntag Group, is entering a new collaboration with Silvateam for the exclusive distribution of pectin in US and Canada. With a 160-year-old history in plant-based extracts, Italy-based Silvateam produces products used in a large range of applications such as food, beverages, and animal health and nutrition. Now Brenntag North America has been appointed the exclusive distributor in North America for the distribution of the Silvateam pectin line: Aglupectin.

PepsiCo’s healthy evolution: Shaking off a salt, sugar and fat laden image

23 Aug 2018 --- PepsiCo is making moves to become a more holistic business focusing on high-growth opportunities in the market such as healthy alternatives, well-being and nutrition, shaking off its old image of brands packed with salt, sugar and fat. A big part of this is the type of products PepsiCo wants to sell in the future and the type of business PepsiCo wants to become – much more focused on sustainability with a socially-minded attitude. 

Kraft Heinz and Oprah Winfrey expand premium frozen pizza line

23 Aug 2018 --- Oprah Winfrey, in collaboration with Kraft Heinz, have announced the expansion of O, That’s Good! with a new line of premium frozen pizzas. This launch is the third category from Mealtime Stories, LLC, the joint venture between Kraft Heinz and Oprah Winfrey, which released refrigerated soups and side dishes in 2017. The O, That’s Good! brand was inspired by Oprah’s love for nutritious, great-tasting food.

US dairy delegation to make Chinese trade mission amid tariff tension

23 Aug 2018 --- Leaders from America’s dairy industry travel this week to China to promote trade cooperation with official agencies in Beijing and Chinese dairy buyers in Xi'an. In Beijing, a delegation will discuss the flow of Sino/US dairy business amid months of trade tension that has led to tariffs on a long list of US exports, including dairy. 

Mondelēz on track with sustainability targets, healthy lifestyle and nutrition program expansion

22 Aug 2018 --- Mondelēz International is making solid progress in achieving its 2020 sustainable agriculture and environmental footprint goals, reporting advancements in reducing CO2 emissions, water usage, waste and packaging. The 2017 Impact For Growth Progress Report also details the Group’s global expansion of healthy lifestyle and nutrition programs in at-risk communities as well as illustrating how the company’s impact programs align with and support the United Nations 2030 Sustainable Development Goals (UN SDGs).

J.M. Smucker results boosted by pet food, coffee and snacking

22 Aug 2018 --- American made food manufacturer J.M. Smucker saw strength in its US retail coffee business in its Q1 2019 results, with sales up 2 percent to US$490m and profit up 20 percent to US$148m to offset softness in the US retail consumer foods business. Sales in the US retail pet foods business rose 29 percent to US$671m and profit edged up 3 percent to US$100m. Total adjusted operating income was up 5 percent during the quarter to US$317m.

Saving ugly produce: Full Harvest achieves US$8.5m in funding

22 Aug 2018 --- Full Harvest, a marketplace for excess produce that would otherwise go to waste has closed an $8.5 million Series A round of financing led by Spark Capital. New investors Cultivian Sandbox Ventures, Rent the Runway Founder Jenny Fleiss, Jon Scherr (CircleUp) and Adam Zeplain of Mark.vc, as well as previous investors, including Seed lead Wireframe Ventures, also joined the round.

Tyson Foods snaps up McDonald’s chicken nugget maker Keystone in US$2.16bn deal

21 Aug 2018 --- Maker of McDonald’s Chicken McNuggets and major meat supplier to US fast-food chain restaurants, Keystone Foods, is being sold to Tyson Foods Inc. by Brazil's Marfrig Global Foods. The US$2.16 billion deal expands Tyson Foods’ value-added protein capabilities by serving major foodservice customers while strengthening its presence around the world and expanding its international reach.

Dairy ingredients expansion: Ireland’s Aurivo reveals US$55 million investment

21 Aug 2018 --- Aurivo, the globally focused agribusiness headquartered in the north-west of Ireland, has announced a €48m investment plan for the business for the next five years. The expansion program, which comes as a key component of its Engage 2022 strategic growth plan, incorporates a range of projects across its dairy ingredients, consumer foods and agribusinesses and will grow employment across the Co-Operative between now and the end of 2022. The investment has been supported by the Department of Business, Enterprise and Innovation through Enterprise Ireland.

FrieslandCampina acquires Best Cheese Holland, strengthens dairy snacking position

21 Aug 2018 --- Royal FrieslandCampina N.V. has taken over the activities of Best Cheese Holland, including its brands Parrano and Tjiezi. Financial details have not been disclosed. With this step FrieslandCampina Consumer Dairy wants to respond stronger to the consumer need to use more cheese in cooking and the growing demand for dairy snacks as dippers. 

Welch’s expands into wine industry: Niagara juice solution “will save wineries money”

20 Aug 2018 --- Welch’s Global Ingredients Group has embarked on a foray into the wine industry with the launch of a Niagara grape juice solution designed for a broad variety of different wine styles. According to the US ingredients supplier, the juice is perfect for fermentation and blending with wine made from more traditional wine grape varieties and even other fruits. 

PepsiCo strikes US$3.2bn deal to buy SodaStream

20 Aug 2018 --- PepsiCo is buying the manufacturer of home beverage carbonation systems, SodaStream, in a US$3.2bn deal, that demonstrates how the beverage and snacks group is focusing on a health-conscious strategy for growth. Just a few weeks after PepsiCo CEO Indra Nooyi announced that she is stepping down after 12 years in charge, the group has agreed to buy the Israel-based maker of home fizzy drinks dispensers which markets itself as a health and wellness alternative to sugary sodas.