Weekly Roundup: Coca-Cola adds Moxie to beverage line-up, Syngenta commits to sustainable agriculture

31 Aug 2018 --- This week in business, Coca-Cola is acquiring Moxie, a soda-based soft drink brand that is more than a hundred years old, from its bottling partner Coca-Cola of Northern New England, US. In sustainability news, Syngenta is looking at a shared vision for sustainable agriculture. The company is to engage with stakeholders in building a vision for the future, considering the important role modern agricultural technologies and techniques can play. 2 Sisters Food Group has announced a £7 million (US$9.1 million) capital investment at its Carlisle, UK, prepared meals factory, creating 200 new jobs in the region and Givaudan announced the formation of a strategic partnership with Synthite for the development of innovative natural ingredients for its Fragrance business.

In brief: Acquisitions
Soft drink giant Coca-Cola is acquiring Moxie, a long-lived New England soda brand that is the official state beverage of Maine, US. Moxie has been around since the 19th century and is famous in New England for its unique flavor, which is the product of a root extract that gives it a distinctive taste that polarizes drinkers. Coca-Cola said it is acquiring the brand from Coca-Cola of Northern New England, an independent bottling partner of the larger company that's in Bedford, New Hampshire, US.

Balchem Corporation has acquired Bioscreen Technologies, S.r.l., a small privately held manufacturer of encapsulated and fermented feed nutrition ingredients. Bioscreen manufactures high-performance encapsulates and fermented products that deliver value-added solutions to international animal nutrition and health customer base. Bioscreen’s existing business will be integrated within Balchem’s Animal Nutrition & Health business segment. With a focus on improving productivity and profitability, this segment is leading the charge to meet the nutritional needs of ruminants, monogastrics and companion animals.

In brief: Sustainability
Over the coming three months, Syngenta will undertake consultation and engagement with stakeholders from around the world to build a shared vision for the future of sustainable agriculture. Through listening and dialogue, Syngenta is seeking to understand better the role it can play and the commitments needed from all sides to help make a shared vision of reality.

Asai Nursery, Inc. and DENSO Corporation have announced a joint venture to create a next-generation model for horticulture using large-scale greenhouses and agricultural technology. The company, titled AgriD, Inc.., will build one of Japan's most significant agricultural greenhouses and develop techniques to improve cultivation productivity for growing vegetables. Construction of the greenhouse will take place in Inabe City, Mie Prefecture which offers ideal amounts of solar radiation for greenhouse cultivation and is scheduled to begin in 2019.

In brief: Appointments & retirements
Ornua has promoted David Butler to General Manager for the Middle East and Africa. Butler has served the previous four years as the International Sales Manager with Ornua. The Middle East and Africa currently has annualized sales of approximately €200 million (US$233.8 million), with offices in Dubai and South Africa and packing and manufacturing facilities in Nigeria and Saudi Arabia. As General Manager, Butler will be responsible for leading the continued development of Ornua’s branded portfolio of premium Irish dairy products, which includes Kerrygold, Forto, and Beo, in the African and Middle Eastern markets.

2 Sisters have announced a £7 million (US$9.1 million) capital investment at its Carlisle, UK, prepared meals factory, creating 200 new jobs in a significant economic boost to the region. The investment program follows a major contract awarded by Marks & Spencer to expand its product ranges with 2 Sisters. More than 30 new products will be developed at the site including Gastro and fish meals with vegetable accompaniments. Production of fish meals has already begun while Gastro ranges and vegetable accompaniments will be launched in late 2018 and early 2019. As a result, a new state-of-the-art vegetable processing facility is being created, which includes new cooling tunnels, steam-injected kettles for cooking and cooling sauces, new coating systems and two new automated packing lines.

In brief: Other highlights
Givaudan has formed a strategic partnership with India-headquartered Synthite for the development of innovative natural ingredients for its Fragrance business. The two companies will jointly work on research and development of exceptional qualities of floral and spicy natural ingredients such as jasmine, tuberose, ginger, and cardamom. These unique natural ingredients will enrich Givaudan’s palette of ingredients for perfumers to create the winning fragrances of tomorrow. This new partnership is fully in line with Givaudan’s 2020 strategic goals to expand its offering to consumers’ brands through innovative naturals, according to the company.

Carlsberg is investing €100 million (US$117 million) to upgrade its Kronenbourg brewery in Obernai, France – its largest in Europe. Carlsberg acquired the facility as part of its acquisition of the French beer brand Kronenbourg in 2008. The brewery produces beers including Kronenbourg 1664, 1664 Blanc and the alcohol-free Tourtel Twist, as well as Carlsberg’s international beer brands. According to the company, the investment will modernize the Kronenbourg facility and increase its production capacity, enhance its production capabilities and improve health and safety at the plant.

Summer 2018 saw some of the highest average temperatures recorded for years and dry spells lasting more than 50 days in parts of Europe. While this has made the UK weather more conducive to barbecuing, it looks set to raise the price of the food. Though coping with the vagaries of weather is something that farmers are well accustomed to, the extreme weather seen this year has put particular stress on farming costs and yields. Domestic food production has felt the effects, with wholesale prices for vegetables rising markedly. From March to July the farm gate price of onions (+41 percent), carrots (+80 percent), lettuce (+61 percent), wheat for bread (+20 percent) and strawberries (+28 percent) rose by a fifth or more each, according to the European Commission.

By Elizabeth Green

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