Weekly Roundup: Starbucks and M&S exit Russia, Lantmännen Cerealia and Mycorena develop mycoprotein products
27 May 2022 --- In industry news this week, Royal DSM and the World Food Programme extended their partnership to increase rice fortification worldwide. Meanwhile, Starbucks and Marks & Spencer exited Russia because of the war in Ukraine and Lantmännen Cerealia and Mycorena collaborated to create food products based on sustainably produced mycoprotein.
In brief: Business moves
Eagle Foods has entered into a definitive agreement to acquire the Helper main meals and Suddenly Salad side businesses from General Mills. The proposed transaction is expected to close in the third quarter of calendar year 2022, subject to regulatory approval.
Hershey unveiled its new R&D center located in Johor, Malaysia. The investment is a core part of the company’s strategy to drive international growth through innovation. The facility will enable Hershey to quickly develop, test and launch new products and will become one of the company’s largest R&D facilities outside of the US.
Royal DSM and the World Food Programme have extended their partnership to scale up rice fortification worldwide for a further three years. The partnership will improve the availability and accessibility of nutritious foods in order to reach vulnerable people where key dietary decisions are made.
Starbucks is in the process of exiting Russia amid the war with Ukraine.
The J.M. Smucker Co. has recalled select Jif peanut butter products in the US from the shelves due to potential Salmonella contamination. The recall is being conducted in cooperation with the US Food and Drug Administration. Consumers with the products in their possession should dispose of it immediately.
Heinz launched the “Art of the Burger” nationwide search in the US for a special burger creation, in time for National Burger Day on May 28. The winning burger will be featured at the better-burger chain, BurgerFi, in Autumn. According to Technomic’s Burger Consumer Trend Report, about 51% of US citizens enjoy a burger at least once a week.
In brief: Exiting Russia
Starbucks has left Russia after 15 years. The coffee chain suspended trading there in March and will now retreat completely. The company joins firms such as McDonald’s in permanently exiting the country. Starbucks entered Russia in 2007 and grew to include 130 coffee shops, owned and operated by a licensee. It did not give details of the financial impact of the decision.
Following a series of negotiations, Marks & Spencer confirmed it would also exit its Russian franchise. Initially, the company stopped shipments to Russia and complex franchise deals prevented it from withdrawing completely. The move came as M&S reported pre-tax profits of £392 million (US$490 million) for the year to April, up from a loss of £209 million (US$261 million) the previous year. However, M&S said it expected sales growth to slow due to rising costs. The company faces increased food costs, driven by global supply issues and labor shortages, while factory, transport and freight costs and continued supply issues in China, were putting pressure on its clothing and home business.
In brief: Sustainability
Cargill's stevia sustainability program is the first company to receive the Silver Level in the SAI Platform's Farm Sustainability Assessment.
Lantmännen Cerealia and Mycorena, a Swedish food tech company developing fungi-based protein, have partnered to develop a portfolio of food products based on sustainably produced mycoprotein. After jointly developing a few prototypes, the companies are now taking the next step to find new product offerings for Nordic consumers.
Nestlé reported further progress toward its deforestation-free cocoa supply chain commitment by 2025 underlining the company’s determination to advance its forest positive agenda and source its cocoa sustainably.
Eat Just launched an advertising campaign “Really Good Eggs” under the Just Egg brand. The blitz campaign features tennis star Serena Williams and actor Jake Gyllenhaal, both investors in the brand. The narrator, Actor JB Smoove pokes fun at celebrity perks like personal trainers and nutritionists.
Foodsteps, a start-up that allows companies to calculate, label and reduce their environmental footprint from farm to fork has raised US$4.1 million in seed funding to attract new talent and expand its sustainability platform. The platform holds a database of more than 3,000 ingredients, containing impact information on an ingredient’s carbon footprint, as well as pollution, water use, and land use impacts.
In brief: Achievements and recognition
Cargill’s stevia sustainability program has been benchmarked at Silver Level by SAI Platform’s Farm Sustainability Assessment (FSA) 3.0. The company is the first stevia producer to have its entire grower network achieve the distinction. By engaging in the benchmarking process, Cargill offers its F&B customers further assurance of the integrity of its stevia sourcing program.
In brief: Other highlights
Barilla launched its Chickpea Penne pasta variety which is gluten-free and vegan.Representatives of more than 500 partners, including the members of the Food and Agriculture Organization of the United Nations convened this week for the 10th Plenary Assembly of the Global Soil Partnership which works to raise global and local awareness of the importance of sustainable soil management and guide policies to tackle issues ranging from erosion, salinization, and pollution to biodiversity conservation, carbon sequestration and nutrient imbalances.
Kirin Brewery revised the manufacturer price for certain delivered beer and ready-to-drink products, other kegged products, non-alcoholic beverages and imported whiskies and spirits. The soaring price of crude oil and recent turmoil has caused various costs to rise including the price of raw materials such as barley, corn, alcohol, materials such as aluminum and cardboard, energy costs for manufacturing and distribution costs.
Heineken reported its financial earnings for the first quarter trading. Revenue for the first quarter of 2022 was US$7.45 million. Net revenue was US$6 million and increased by 24.9% organically, with total consolidated volume growing by 5.7% and net revenue per hectoliter up 18.3%, driven by assertive pricing and premiumization across all regions as well as a positive channel mix effect, particularly in Europe.
Pasta producer Barilla has launched a new pasta shape Chickpea Penne, made with chickpeas. The pasta variety is free from fillers, additives or gums. The short, cylinder-shaped cut with angled edges contains 19 g of plant protein per 3.5 oz serving and is certified gluten-free, vegan and non-GMO Project Verified. The better- for- you pasta category includes pasta that is derived from whole grains, whole wheat, semolina flour or veggies and choices that are gluten-free and low carb.
By Inga de Jong
