Weekly Roundup: Givaudan divests processed cheese business, UK April food sales "disappointing," says BRC

15 May 2020 --- This week in business news, Givaudan divested its processed and grated cheese business to St. Paul Group, a cheese specialist with premises in Belgium and the Netherlands. Ambienta completed the acquisition of Create Flavours, expanding the platform of Nactarome to the strategic UK market. Meanwhile, UK supermarkets achieved a record improvement in their dealings with grocery suppliers amid the COVID-19 pandemic. Kellogg’s also launched a new line of Kellogg’s Jumbo Snax.

In brief: Business news
Givaudan has agreed to divest its processed and grated cheese business to St. Paul Group. “We aim to strengthen the focus on our core business and continue to drive long-term shareholder value,” says Louie D’Amico, President Flavour Division, Givaudan. The processed and grated cheese business acquired from Vika BV contributed CHF 13.5 million (US$13.9 million) to Givaudan’s Flavour Division sales in 2019. The terms of the transaction, which has no material impact on the Division, will not be disclosed. Givaudan will retain the majority of the legacy Vika BV business acquired in 2017 and continue to offer cheese powder solutions, vegetable and meat fond and stocks as part of its natural dairy and savory product portfolio.

Ambienta SGR SpA, Europe’s largest sustainability-focused private equity investor, has acquired 100 percent of Create Flavours, a UK producer of natural top-notes flavors. The acquisition of Create Flavours further solidifies the position of Ambienta platform Nactarome Group as an independent player in the European natural flavors and ingredients sector, with revenues above €110 million (US$118.7 million). It also brings about a diversified customer base of over 4,200 clients served through ten specialized plants across Europe. Nactarome produces flavors, colors and ingredients which make the food industry’s production of, for example, flavored ice creams or baked goods, more sustainable and healthier. This is one of the highest-growth segments within the food industry: in 2019, the market for natural flavors and colors grew twice as much as the food industry as a whole, which remained stable at 2-3 percent. 

Retailer compliance with the Groceries Supply Code of Practice is at an all-time high, according to the latest GCA survey.The UK’s supermarkets have achieved a record improvement in their dealings with grocery suppliers, Christine Tacon’s seventh and final Groceries Code Adjudicator (GCA) survey has revealed. Early analysis of suppliers’ responses to the comprehensive annual grocery sector survey shows that retailer compliance with the Groceries Supply Code of Practice is at an all-time high. A record of nearly 1,500 direct suppliers to the 13 regulated retailers completed the survey and just 36 percent said they had experienced a code-related issue at any point in the past 12 months – down from 41 percent in 2019. This was a particularly striking result as the survey period included three weeks when the sector was facing the challenge of massive increases in consumer buying of certain products as the COVID-19 emergency hit. Additionally, it represents significant progress since the first survey was conducted in 2014 when 79 percent of suppliers said they had experienced issues.

With lockdown measures in full swing in the UK, April saw a record fall in retail sales, according to British Retail Consortium (BRC)–KPMG retail sales monitor. “Food sales were disappointing, with the virus preventing large family gatherings and turning Easter into a more modest affair. For many non-food goods, such as clothing, footwear and large household items, the decline was particularly steep as consumers responded to lockdown conditions,” Helen Dickinson OBE, Chief Executive for the BRC says. Paul Martin, UK Head of Retail at KPMG, comments: “With the nation firmly under lockdown throughout April, drastic retail sales declines were to be expected. Total sales fell a staggering 19.1 percent compared to last year – eclipsing any previous fall since records began – but that pain hasn’t been felt equally. So few physical stores, or indeed retailers, were open for business in the month, making like-for-like comparisons hard to establish. Still, the ability to continue trading or leverage online channels was beneficial for the fortunate few.”

In brief: NPD
Kellogg’s is transforming snack time with its new line of Kellogg’s Jumbo Snax. The cereal brands are now jumbo-size and suitably packed for snacking. The new product line features fan favorites, including Kellogg’s Froot Loops, Apple Jacks, Corn Pops–caramel crunch flavor and Kellogg’s Frosted Flakes-inspired Tiger Paws. The new Tiger Paws shape features a crisp, taste similar to Kellogg’s Frosted Flakes but in a paw-shaped cereal bite, inspired by Tony the Tiger. All four varieties will be widely available in two options: a 12-pouch multipack with 0.45-ounce single-serve bags, ideal for on-the-go or a midafternoon cereal snack, and a 6-ounce multi-serve resealable bag.

The new line of Kellogg’s Jumbo Snax are now jumbo-size and suitably packed for snacking. In brief: Appointments & retirements
EW Nutrition USA has appointed Miguel Barrios, Ph.D., to Technical Manager – Poultry. He will be working with EW Nutrition’s current and prospective customers to support the cost-effective use of phytochemicals and mycotoxin binders in poultry applications. With a doctoral degree in Poultry Science, Barrios has worked for companies such as Jefo Nutrition, USA, as a technical sales representative, supporting their nutraceuticals and enzymes. Most recently, he worked for Synexis Biodefense Systems as their Director of Poultry Operations. Barrios is also currently serving as the President for the Southern Poultry Science Society.

In brief: Other highlights
PerkinElmer has revealed its Solus One Salmonella assay and methods have been granted First Action Official Methods of Analysis (OMA) status, number 2020.03, from Association of Official Analytical Collaboration (AOAC) INTERNATIONAL. The Solus One Salmonella assay, which previously received International Standardization Organization (ISO) 16140 and AOAC Performance Tested Methods (PTM) certification, detects Salmonella in select foods, with negative/presumptive positive results available in approximately two hours, post enrichment. Positive confirmation is then possible with an additional 24 hours. “The World Health Organization estimates that Salmonella causes over 17 million people to become ill each year globally,” says Greg Sears, Vice President and General Manager, Food, PerkinElmer. “Members of the food industry, regulatory and research ecosystem around the world, need to be able to depend on pathogen testing options that are reliable, consistent and efficient. We are pleased that our Solus One Salmonella assay and methods – which have already been helping with food safety and quality globally – have now achieved the highest level of AOAC certification.”

Hälsa, a maker of 100 clean oat milk yogurts, has planted Scandinavian-style organic oat seeds at the pilot farm for their dairy-to-oat conversion program in upstate New York. “At a time when everybody is complaining about the food supply chain problems, Hälsa is taking action and doing something about it,” says Hälsa Co-Founders Helena Lumme and Mika Manninen. Following its multi-step program built with Scandinavian organic oat scientists and experts, Hälsa is teaching US dairy farmers to grow organic oats with the same zero water footprint method used in Scandinavia. “Our program allows US dairy farmers to create a domestic supply chain for premium organic oats that isn’t dependent on imports. We are taking a big step to reshape the future of food in the US – a vision that is now more important than ever. We implore others to take similar action in supporting and fostering growth for premium ingredients right here in the US,” they comment

Finally, SVZ has reached out to selected farmers to audit their farming practices within the Sustainable Agriculture Initiative (SAI) framework and help them take the next step on their sustainability journey. The initiative started in Spain and is now being extended to Polish fields; as part of the process, SVZ carried out a soil sampling analysis, which allowed them to understand how the soil used can be further optimized. With the analysis results, SVZ’s team of agronomists can offer individually tailored growing advice to each of its farming partners, so that they can be sure that the crops picked are both as abundant and high quality as possible. 

By Elizabeth Green