Quality Takes Precedence
The recent dairy product scare – products ranging from infant formula to milk, sweets and confectionery made with dairy contaminated with melamine – has reminded us all that food safety is still an issue, wherever the products are shelved or sourced from. As government authorities scurry and vow tighter quality control, something hits us today, harder than ever: traceability should be built into any talk of innovation, taste profile or marketing strategy of foods and drinks.
But in every crisis brings opportunity. In the current climate of uncertainty, consumers are concerned about the purity and safety of their foods. This presents an interesting turn of events: countries that produce premium foods are seeing demand for their exports rise. Those who will profit would be the ones who adopt the initiative to examine their product line-ups for ways to add value to their range. You’ll find most articles in the issue addressing this in one way or another. This calendar year has been particularly challenging for the food and beverage industry. Through our reporting, we’ve come past the scares, shortages, crises and price hikes together with you. However, troubles have come and gone. Those who persevere, learn and improve through the process often come out stronger.
So dear comrades in the food and foodservice industries, we have legitimate reasons for consolation – the F&B trade’s resilience.
Well, our editorial programme for 2009 is close to finalisation and judging by the various interesting topics (our sincere appreciation to those who were most forthcoming with their generous suggestions) and the number of trade shows lined up, we have certainly “added value” to our offering too. Do stay tuned!
P.S.: This bumper issue brings us to SIAL Paris (October 19-23). Do come by and visit us at 6BC008 for a chat!
Canberra, Australia: According to a report by Australian Food News, the Australian Food and Grocery Council (AFGC) has welcomed the release of the Productivity Commission’s (PC) Annual Review of Regulatory Burdens on Business: Manufacturing and Distributive Trades.
AFGC’s Chief Executive Kate Carnell said, “Australia’s AUD 70 billion (US$ 50.57 billion) packaged food and grocery industry has long been arguing for a more streamlined approach to food regulation.”
The report found that Australian food regulations could be improved by: increasing national consistency of requirements, improving timelines and transparency of decision-making by the Australia New Zealand Food Regulation Ministerial Council (ANZFRMC) and ensuring that public health issues are considered by the Health Ministers’ conference before referring any food regulation-related issues to the ANZFRMC.
According to the PC, stresses on small businesses are further exacerbated by insufficient communication with regulators. “Poor communication may also be a barrier to small businesses entering the markets as they may be less able either to employ or contact expert assistance to understand the regulations affecting them,” the report said.
“If the government is truly serious about the simplification of its regulatory regime then its first step should be to adopt the PC’s recommendations,” Carnell added.
Canberra, Australia: Australia’s Agriculture Minister Tony Burke says that the campaign that urges Europeans to avoid Australian produce because of the carbon emissions from transporting the goods is a form of protectionism, as reported by the The Australian.
Under the food miles scheme, goods are labeled with a sticker showing the distance the produce has travelled. Burke said the scheme was not about reducing carbon emissions as it is about maintaining protection for European producers.
“Consumers around the world are now taking a greater interest in the sustainability of food production systems. But some of that interest in sustainability can very easily end up taking us on a path which is both misguided and puts Australian manufactured food at a significant detriment internationally,” Burke said in an address to Australian Food and Grocery Council Members (AFGC) in Canberra on September 15 this year.
“I think it is important that we do what we can to reduce carbon emissions but it is more important that we take head on international campaigns that pretend to be good for the environment but are nothing more than an excuse for protectionism,” Burke said.
Burke added that it was not logical to have a campaign that looked at one part of the value chain in isolation. “The truth is, in terms of total carbon emissions, if you truck a product from one end of Europe to the other, you will have a much bigger carbon footprint than if you ship it from Australia,” Burke said.
Burke’s comments come as the AFGC wants a carbon tax to be imposed on imported food to protect its members from the impact of a planned emissions trading scheme. The proposed rate of up to AUD 10 per ton would allow Australian food producers to compete with countries that do not have an emissions trading scheme, according to the AGFC.
Jakarta, Indonesia: In a series of raids on illegal food distribution in seven hypermarkets, the Indonesian authorities have confiscated 22 types of food it considers unsafe for public consumption.
According to Industry and Trade Office Chief Nurachman, the confiscated items include canned food, instant noodles, goat’s milk, chicken nugget, dried shrimp, fish cake and meat balls. Nine of the items confiscated were past their expiry dates while others did not have expiry dates at all. Even worse, some of the items were not even registered at all.
“We will impose a maximum jail sentence of five years and serve a RP2 billion fine (USD 212,822),” Nurachman said. He added that there are more violations this year compared to 2007. “Some of them are old cases,” he said.
Industry and Trade Office deputy chief Supeno said that the vendors will also be penalized. “The food producers already put the expiry date on the package, so why were they still selling them? They can be charged with violating Health statues and Food and Consumer Protection laws,” he said. In Carrefour and Hypermart Kelapa Gading, authorities found at least 15 types of expired food such as chicken meat, sausages, chocolate, cream milk and beverages. Sony Nazar, Hypermart Kelapa Gading’s manager, admitted the error. He said, “We only check the goods manually twice a week but there has been no complaints so far from consumers.”
Mindanao, Philippines: According to a report by ABS-CBN news, Muslims in Mindanao want a slice of the multi-billion Halal food industry. “The Philippines failed to cope with the demand of Halal products in the world market,” said Ustadz Esmael Ebrahim, spokesman of the Muslim Mindanao Halal Certification Board Inc (MMHCBI).
Ebrahim is convinced that the millions of Muslims worldwide would much rather procure their food from fellow Muslims, rather than producers of non-Muslim origin. “Thailand made it to becoming the world’s number one exporter of Halal products. It’s not even a Muslim country,” Ebrahim said. Brazil, Australia and New Zealand are also active exporters of Halal food.
Discussions between the MMHCBI, the Chamber of Agriculture, Fisheries and Allied Industries (CAFFINORMIN) and the Mindanao Development Council (Medco) have culminated two decisions to help the Philippines get a slice of the Muslim food pie.
The CAFFINORMIN is going to strengthen its poultry industry and expand production. It is slated to sign the formal agreement in October, 2008. In addition, Medco will assist in organising a workshop on the Halal food industry. “We urge Medco to realise the workshop soon as this will give us (investors) an idea how much we are going to invest and for us to take a closer look at the world’s Halal players.” Said Roger Navarro of CAFFINORMIN.
Exporting Halal food products is not as easy as regular food. For example, Islam imposes guidelines on the slaughtering of meat. “Right now, we don’t have a production site for Halal meat products. This is a major obstacle to local producers of Halal food. Without a certificate to prove that they followed the requirements of Islam, their products may not be acceptable in the world market,” Navarro said.
Tokyo, Japan: According to a report by The Daily Yomiuri, major retailer Aeon Co will launch a new food store offering products at discounted prices in Tokyo’s Nerima Ward. The store is slated to be open as early as late September, 2008. Aeon intends to use the store to analyse the needs of consumers and to study low-cost management. If performance of the test store is good, Aeon will consider opening more outlets. Discount food stores in Japan have been gaining popularity due to rising food prices amidst an income standstill.
Retailers will continue to try to slash prices. Another major retailer, Seven & I Holdings, has already entered the discount store business in late August, 2008.
Aeon Supercenters are large-scale general merchandise discount stores in Japan’s Northeastern region of Tohoku. Aeon also runs Megamart, a suburban discount store that retails clothes and household items.
Aeon will open its test discount stores in a vacant furnished outlet and intends to staff the operation with a small force comprised of mainly part time workers. The store will stock fresh and processed food. Unlike Aeon’s Jusco supermarkets, it will also stock its shelves with low-priced products from small and medium-sized companies while waiting to sell Aeon’s TopValu brand items.
Tokyo, Japan: The International Herald Tribune has reported that dairy goods maker Meiji Dairies will take over confectionery producer Meiji Seika. The move will create one of the biggest companies in the Japanese food sector.
In the past few years, mergers and acquisitions have been rife in Japan’s food sector as companies find ways to cope with high raw material costs and limited domestic growth. Meiji Dairies and Meiji Seika will set up a holding firm in April, 2009 and merge operations. They will work together in product and brand development to cut costs through joint procurement and rationalisation of distribution networks.
The merger will create Japan’s fifth largest food and beverage group behind Kirin Holdings, Suntory, Asahi Breweries and Ajinomoto. Meiji Dairies and Meiji Seika both trace their history to the same parent company about 90 years ago. Currently, they only have small stakes in each other and operate independently. “This merger will give us the platform to do battle as a food maker on a global sale,” Meiji Seika’s President, Naotada Sato said.
Under the deal, Meiji Dairies will exchange one share for a 0.117 share in the holding company; while Meiji Seika will do the same, exchanging one share for a 0.1 share in the holding company. The ratio will give Meiji Dairies a just over 50 percent stake in the holding company.
Kuala Lumpur, Malaysia: As reported by Bernama.com, the country will give priority to the food sector’s demands for palm oil while complementing the supply of raw materials for the production of biofuel.
Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui said the agreement between Malaysia and Indonesia to each limit the supply of palm oil for biofuel to six million tonnes annually reaffirms this commitment. “In addition, in line with the Kyoto Protocol, Malaysia takes the lead in Clean Development projects in South East Asia, especially in the palm oil sector,” Chin said in his keynote address to the World Sustainable Palm Oil Conference.
In the past few years, the palm oil industry has had to face several environmental issues. Chin said that this projected the wrong image of the palm oil industry to the world, adding, “While our industry is committed to supply the world with quality palm oil, we are also committed to keeping our forests intact.”
Kuala Lumpur, Malaysia: According to a report by the Malaysian National News Agency, The Agriculture and Agro-based Industry Ministry has denied that the price of a particular kind of rice – Jasmine Super Special five and fifteen percent broken rice – has actually increased.
The Ministry refuted claims that the rice in question was being sold between RM$27.50 to RM$33.50 (US$7.98 – US$9.71) per 10kg.In a statement on Tuesday, 16 September 2008, the Ministry said that the manufacturers, Jasmine Food Corp, had clarified that the five percent rice was being sold at RM$16.50 and RM$17 per 10kg.
The company further said that its rice is retailing between RM$26.75 to RM$27.20 for a 10kg pack, which is still well below the RM$2.80 per kilo ceiling price stipulated by the government.
Kuala Lumpur, Malaysia: Two local universities, the Universiti Tun Abdul Razak (UNITAR) and the Universiti Putra Malaysia are offering five scholarships each to students in the Ningxia Hui Autonomous Region in China. It will be offered through the Halal Industry Development Corporation (HDC). The scholarships will go toward funding students to undertake postgraduate studies in Halal food management.
According to a report by Bernama, this move is in anticipation of the Halal Food agreement signed between China and the Autonomous Region. Closer cooperation between the Muslim Ningxia Hui Region and Malaysia is expected to generate more business opportunities.
The letter of offer was handed by HDC Chairman, Tan Sri Syed Jalaludin Syed Salimm to Ningxia Governor Wang Zhengwei at the Third China (Ningxia) International Halal Food/Muslim Commodities Festival and Ningxia Investment and Trade Fair 2008. The event was held for four days, from 9 – 12 September, 2008.
HDC’s Vice President (Halal Integrity), Mariam Abdul Latif, said the scholarships would also go towards fostering a closer relationship between Ningxia and Malaysia. “Education is a lifelong process. Besides looking at technology transfer in offering the scholarships, Malaysia is also considering the global impact of such a move over the long term,” said Latif.
“Besides the postgraduate study offer for Halal management in food processing, the two universities will also consider opportunities for Ningxia students to take courses that include linguistics and international business,” Latif added.
As the only Autonomous Region in China for the Hui or Muslim people, Ningxia has developed its Halal food industry to include a wide range of products. Located in northwest China, Ningxia covers an area of 66,400 sq km with a population of six million, of which 35 percent are Muslim.
Singapore: According to a report by the Straits Times, Halal certification laws in the country will have the power to mete out tougher punishment.
Employees of companies that misuse certificates or logos to fool consumers into thinking that their products are Halal could soon face a maximum jail term of 12 months and/or a fine of SGD 10,000 (US$ 6,973). Under current legislation, only companies can be up to SGD 10,000. This proposed change is part of the amendments to Administration of Muslim Law Act discussed in parliament on Monday, 15 September, 2008.
If approved, it will give the Islamic Religious Council of Singapore (Muis) more power in supervising and enforcing Halal certification. Halal food exports to the Middle East and the Halal food industry are growing.
The change was suggested by High Court Judge VK Rajah in 2006 in his ruling on an appeal by a food importer who had tried to pass off imported chicken nuggets as Halal-certified by Muis. Justice Rajah said that when firms misuse Halal certification they are only fined, but individuals who do the same thing could be thrown into jail.
The law punishes the company, not its staff, for such offences. Noting the discrepancy, Justice Rajah called for a revision to the law to address the issue.
Hanoi, Vietnam: According to a report by Vietnam Net, The Ministry of Industry and Trade has asked the Vietnam Food Association (VFA) to speed up delivery on existing rice export contracts and intensify efforts to sign new trade agreements.
This move is to ensure that farmers are able to sell their stocks in the last months of the year and to meet the government’s export target of 4.5 million tonnes for 2008. With rice prices falling in the Mekong delta, the location of the country’s largest granary, there is a large stockpile of unsold rice.
Dried rice has been going for VND 3,500 to VND 3,700 (USD 0.21 to USD 0.22) per kg and wet rice, VND 2,500 to VND 2,700 per kg. This is the lowest recorded price for 2008. Farmers say that they are making a loss as they spend VND 3,300 to VND 3,900 to produce every kg of rice.
The large quantities of unsold rice and recent wet weather are being blamed for the situation. Many producers are forced to sell their wet rice at depressed prices due to the lack of drying facilities. Food companies say they are looking for warehouses to store rice from the coming harvests, as they already have stockpiles from purchases made under a Prime Ministerial Directive in early August, 2008.
Hanoi, Vietnam: China and Vietnam have agreed to set up a cooperation mechanism to improve hygiene of food import and exports, according to a report on Nhandan.com.
The agreement was signed in the Vietnamese capital of Hanoi on 11 September, 2008 by the Vietnamese Deputy Minister of Agriculture and Rural Development Luong Le Phuong and the Chinese Deputy Director of the General Administration of Quality Supervision, Inspection and Quarantine Wei Chuanzhong.
As part of the agreement, the two countries will regularly inform each other of issues arising in the inspection and quarantine process of food and agricultural products. In addition, China has also invited Vietnam to join an ASEAN-China training program for liaison officials in healthcare and plant hygiene management. The program is expected to be conducted on October this year.
Hanoi, Vietnam: According to Vietnam Net, a check by Vietnam’s Health Ministry of 15 retailers in the capital city of Hanoi has not turned up any traces of China’s Sanlu Milk. The Vietnamese Health Ministry will be conducting checks on retailers in Hanoi from September 15 to 20 for the toxic milk.
The check comes after news of melamine-tainted infant formula from Sanlu Milk broke. In China, it has killed two babies and made some 1,200 people ill from consuming the product.
Nguyen Van Dung, head of the Registration and License Department of the Food Hygiene and Safety Agency from the Ministry of Health, confirmed that Vietnam has never approved Sanlu Milk for sale in the country.
In addition, the Food Hygiene and Safety Agency has instructed border province offices to ensure the quality of imported food, especially milk products. The Preventive Health and Environmental Agency has also been told to step up border quarantine efforts.
Beijing, China: Following the discovery of infant formula tainted with melamine, Chinese authorities have inspected more milk products by other companies. According to a report by The China Daily, more products have been found to contain melamine.
Up till September 15, only Sanlu products were found to be tainted but tests conducted in the week from September 15 to 19, have found more such cases. A check by the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) found that 69 of the 491 batches inspected were contaminated.
This means that 22 of the 109 milk food firms have failed the AQSIQ tests. All the tainted batches have been recalled and will be recalled, said the AQSIQ in a report. Apart from the Hebei-based Sanlu Group, firms whose products have failed the tests include dairy giants such as the Yili and Mengniu Groups, both based in the Inner Mongolia autonomous region and Shanghai-based Bright Dairy.
Since news of the tainted milk products surfaced, two more milk dealers have been arrested in Hebei on Monday 15 September, 2008 for allegedly contaminating the products they sold to Sanlu to earn more money. This latest arrest brings the total to four.
22 others have also been detained for their suspected involvement in the scandal, according to Shi Guizhong, a spokesman for the Hebei Provincial Public Security Bureau.
The Sanlu Group has also dismissed Tian Wenhua, the board Chairwoman and general manager of the Sanlu Group. Tian has also been removed from her post as the secretary of the corporation committee of the Communist Party of China (CCP).
An estimated 1,253 infants have developed kidney stones after being fed Sanlu’s tainted milk products. This number includes two fatal cases.
Taipei, ROC: According to the Straits Times, Taiwan said on September 14, that it will step up checks on Chinese food imports into the territory. This move follows the discovery of infant formula contaminated by melamine.
Taiwan has seized nearly 10 tons of milk powder produced by the Sanlu Group. Taiwanese health authorities say they have been unable to trace much of 25 ton shipment of the product and have voiced fears that some may have made their way into baked products.
Vanessa Shih, government spokeswoman said on September 14, that it would ban all imports of Sanlu milk products. She described the move as the ‘first in ensuring no contaminated food went on sale in the island in the future.’
In addition, all other Chinese milk products will be subject to inspection before they are allowed into Taiwan. Although many infants in China have taken ill after consuming the products, there have been no such reports in Taiwan.
Dordrecht/Lieshout, The
Netherlands: A market leader in the production of private label fruit juices and soft drinks, Refresco Holding B.V. has agreed to purchase Bavaria NV’s production site in Hoensbroek known as Schiffers Food. A producer of private label carbonated soft drinks and waters sold primarily in the Netherlands, Schiffers Food is expected to generate revenues of EUR 60 million this year. Refresco achieved a revenue exceeding EUR 950 million in 2007.
Jan-Renier Swinkels, Chief Executive Officer of Bavaria said, “We believe that the proposed sale is of strategic importance for the future of Schiffers Food. It will become part of an important soft drink and fruit juice producer. Both the interests of the company and the employees will be best served through the acquisition. Bavaria will continue to focus on its most important business: the production and sales of beer and malt.”
Chief Executive Officer of Refresco, Hans Roelofs said the purchase will allow the company to broaden their portfolio and to better serve the market. “Our goal is to form a European platform of fruit juices and soft drinks manufacturers. This will improve our service to regional customers and our businesses can profit from an extended Refresco network,” he added.
London, UK: Established UK retailers Waitrose and Booths have announced plans for a buying alliance that would help both companies benefit from greater economies of scale. Waitrose Managing Director Mark Price said: “This buying alliance will benefit customers of both Waitrose and Booths for the long term by ensuring that prices within both shops are highly competitive through greater supply efficiencies.”
Waitrose – wiith 126 stores in the UK – is poised to open its new 19,300 sq ft store in Crewkerne, Somerset this autumn.
One of the oldest supermarket chains in Britain, Booths was established 153 years ago by Edwin Henry Booth. It now has 26 stores with 2500 staff. Booths’ Chairman Edwin Booth said, “We are looking forward to the alliance between Waitrose and Booths enabling us to continue to trade strongly to the benefit of our customers.”
The deal would involve “sharing cost prices and deal structures for branded food purchased by both supermarkets on a selected range of products”.
St.Louis, US: Budweiser launched its new product, Budweiser American Ale recently. Budweiser describes its Budweiser’s American Ale as robust and well-rounded, with a rich amber colour which is “the ideal counterpart to Budweiser’s signature golden, crisp flavour”.
Eric Beck, brewmaster for Budweiser American Ale, said, “Budweiser American Ale has the full-bodied taste profile of the amber ale style, yet is remarkably smooth and balanced. It’s an ale that’s distinctly American in character, and the result is a beer both traditional lager and craft beer drinkers can enjoy.” Budweiser American Ale is an all-malt, top-fermented ale that is dry hopped with Cascade hops from the Pacific Northwest.
“Budweiser American Ale has been in development since early 2007, and we’re very pleased with this brew. In competitive blind taste tests of craft beer drinkers, Budweiser American Ale significantly outperformed other craft brands in terms of consumer preference,” said Tom Shipley, Budweiser brand director, Anheuser-Busch, Inc.
“We believe Budweiser American Ale will only enhance the high regard and reputation Budweiser has earned over the past 130 years of brewing heritage.” Based in St. Louis, Anheuser-Busch brews the world’s largest-selling beers, Budweiser and Bud Light. It holds 48.5 percent share of US beer sales.
Kampala, Uganda: Secretary of the Uganda Tea Association (UTA) Isaac Munabi told Reuters that the African country’s tea exports will rise from 44,015 tonnes last year to 46,000 tonnes this year, fetching good prices at auction. Profits, although higher than last year would be slightly dampened due to the rise in oil prices, electricity shortages and a strong Ugandan shilling. The shilling was at 1,748.81 versus the dollar last year, reaching a peak of 1,587 in mid-June. In 2007, earnings for Ugandan tea reached US$47.6 million.
“The rate of exchange is a very big problem ... so you earn from auction a good, but weakened dollar, and you spend in the Ugandan market a good, but high shilling,” he added.
Uganda sells its tea on neighbour Kenya’s Mombasa auction. Kenya is the world’s leading producer of black tea. Munabi said they will have to add value to their tea to earn more money. Uganda’s tea-producing land covers some 21,000 hectares.
Lagos, Nigeria: Multi-Trex Ltd, one of Nigeria’s top cocoa grinders plans to expand its capacity to 60,000 tonnes per annum in the next 12 months. Its Chief Executive Officer Yusuf Isiaka told Reuters, “We are now raising installed capacity to 60,000 tonnes. New machinery will start coming in at the end of October through to February. The expansion will last 12 months.”
Although their target was 6 million naira, the company managed to raise about 4 billion naira (US$34 million) from a private placement but Isiaka said the firm would still raise the balance. In 2006, Multi-Trex planned to increase capacity to 18,000 tonnes but the expansion was delayed after it failed to raise around 500 million naira. He added, “There is nothing to worry about because we have secured enough guarantees and commitments to achieve our target of 6 billion naira.”
The company could only operate at 70 percent of its capacity since it started production in 2005 due to a power crisis in Nigeria. Therefore, the latest upgrade is largely overdue. Isiaka explained, “Each time we had a problem or needed to service the generators, we had to shut down for days, this affected our capacity utilisation.”
Multi-Trex plans to list on the Nigerian Stock Exchange before the end of 2008. The company processes cocoa into butter, cake, powder and liquor for export mainly to Europe. Its future plans include producing its own brand of cocoa beverage and convert solids to consumer products for markets in Asia, the US, South Africa and West Africa.
According to the country’s Cocoa Association of Nigeria (CAN), good rain and sunshine in the last month will boost this season’s output. “If the weather remains favourable, with the training that farmers are getting, there should be an increase of at least 15 percent on last year’s output,” commodity consultant Robo Adhuze told Reuters.
Los Angeles, US: A report on London’s Daily Telegraph noted opposition by the Hershey Trust, which controls a majority of Hershey’s shares, to a sale of the company. A rise of 8.7 percent in Hershey’s shares was attributed to market interest in this development. Switzerland’s Nestle SA is said to be in talks to buy 25 percent or all of Hershey in the next two years.
Hershey Co spokesman Kirk Saville told Reuters, “We don’t comment on mergers and acquisition issues.” Spokesman for the Hershey Trust, Tim Reeves also declined to comment on the reports. The Trust, according to Hershey Trust officials, cannot legally give up its control of the company. It will continue to retain a controlling interest in Hershey Co.
Hershey is expected to consider a tie-up due to several food and beverage company consolidation which included the proposed InBev/Anhesuer-Busch deal and the planned acquisition of Wm Wrigley Jr Co by candy company Mars Inc. Analysts believe Hershey would need to merge with another company to compete with Mars-Wrigley.
Analysts reacted with caution. William Lefkowitz, an options strategist at brokerage firm vFinance Investments in New York said in a Reuters report, “There are takeover rumors circulating on Hershey once again. As in the past, investors are aggressively buying calls in the company on hopes that the shares will go higher. Ever since Budweiser has agreed to be taken over by InBev, Hershey’s has often been mentioned as the next one to be taken over. But I am always skeptical on these rumours.”
Texas, US: Teller Owens, the Dallas Cowboys wide receiver has been created “Chief Mayhem Officer” by energy drink company Venom Energy. Spokesperson Owens said, “With my schedule, I need an energy drink that keeps me going all day. Venom Energy gets me pumped and energized and always enables me to perform at my best.” Owens, whose athletic ability and star power transcends football, most recently moved into second place on the all-time NFL touchdown receptions list and was elected a captain of the Dallas Cowboys for the 2008 season.
Venom Energy’s parent company Dr Pepper Snapple Group will support Owen’s charitable foundation, Catch a Dream, which provides food, clothing, shelter and proper resources to 81 underprivileged families. Through March 2009, Dr Pepper Snapple Group will donate money to Catch a Dream for every bottle of Venom sold. Owens will also be participating in Venom Energy’s promotion and marketing campaigns including attendance at sponsored events and on in-store merchandising materials.
Randy Gier, Chief Marketing Officer of Dr Pepper Snapple Group said “We’re excited that the best wide receiver in the NFL has joined our team. Terrell is an athlete that everyone connects with, so we’re expecting great things from this partnership. We’re popping the popcorn for his first visit with the Board.”
In addition to its flagship Dr Pepper and Snapple brands, the company’s portfolio includes 7UP, Mott’s, A&W, Sunkist Soda, Hawaiian Punch, Canada Dry, Schweppes, Squirt, RC Cola, Diet Rite, Penafiel, Rose’s, Yoo-hoo, Clamato, Mr & Mrs T and other well-known consumer favorites.
The Venom energy blend contains caffeine, l-carnitine, guarana, ginseng and taurine and is sold in the US at a retail price of US$ 2.39.
Lisbon, Portugal: Starbucks opens its first store in Portugal on September 30 in a joint venture operation with Grupo VIPS, a subsidiary of Sigla S.A. which operates 75 Starbucks stores in Spain and 45 in France.
Alvaro Salafranca, General Director of Starbucks Coffee Spain and Starbucks Coffee Portugal, said, “We are humbled and proud to introduce Starbucks Coffee and the unique Starbucks Experience to customers across the Iberian Peninsula with the opening of our first store in Portugal, a country filled with tradition and a rich coffee culture”.
Local food, supplied by small specialty Portuguese food companies, will be served at the Portugal store including Pastel de Nata (custard tart) and Pastel de Feijao (almonds and sweet bean pastries). Luis Mello, Operation Director of Starbucks Coffee Portugal, added: “We are thrilled that we will be able to share our passion for high-quality arabica coffee and the Starbucks Experience with the people of Portugal ... Additionally, we are excited to offer some traditional Portuguese favorite food items in innovative ways that are complementary to our high-quality coffees”.
Martin Coles, president of Starbucks Coffee International said, “Being respectful of the surrounding environment and relevant within the community where we do business is important to us. It is essential that we enter Portugal with a strong and trusted partner that shares our values and passion for people, quality and service, attributes that Grupo VIPS clearly has.”
One of Starbucks International’s growth strategies is to create successful partnerships in order to cover new territories. Grupo VIPS, a Starbucks business partner for more than six years, also owns and operates 11 premium restaurants including Iroco, Teatriz and El Bodegón. Grupo VIPS employs more than 10,450 people and operates 400 restaurants and stores.
London, UK: Latest research from Mintel, the consumer market research agency, shows that the British are making dramatic changes to their foodshopping habits. Deep in denial, British shoppers have been spending more than they did in 2007 this year, in spite of the mounting evidence that their incomes were being squeezed.
In the last 12 months alone, 41percent of shoppers have switched to cheaper brands and three in ten (34 percent) have cut down on the premium ranges, such as Tesco Finest and Sainsbury’s Taste the difference.
“It is clear that shoppers are now really feeling the pinch and beginning to trade down when out buying food,” explains Richard Perks, Director of retail research at Mintel. “During the recent years of unprecedented prosperity in Britain, we saw a very noticeable shift towards premium, upmarket food, with shoppers buying more luxurious ready meals and exotic produce. But in the space of just a few months, this trend has already started to be reversed.”
Becoming more price-conscious, the British will now look for promotions and deals with 29 percent spending more time to compare prices in the supermarket. Discount supermarket Lidl and Aldi have risen in popularity, appealing to a broad section of shoppers and not just to low-income earners.
“The major battle of this recession will be the fight between the hard discounters and the market leading superstores,” comments Richard Perks. Value for money is the key to success in tougher times. “ASDA is focusing on its entry level prices and Tesco has just launched an ultra-low-priced range called ‘Market Value’. With this shift they are making it very clear that they will not just lie back and watch their market share being whittled away by the likes of Lidl and Aldi,” he adds.
Downers Grove, US: Sara Lee Corp. announced on September 17 that it has signed an agreement – expected to close in October – to acquire Café Moka, a family-owned coffee business located in São Paulo, Brazil. The Brazilian company serves more than 4,000 small and medium retail customers through a direct distribution system with total sales of approximately US$ 65 million in 2007. The transaction is expected to advance Sara Lee’s sustainable coffee programme as a green coffee processing plant which will provide access to the coffee farmers in Brazil’s main coffee growing state Minas Gerais will also be acquired.
Frank van Oers, Chief Executive Officer of Sara Lee’s international beverage and bakery business said, “With the acquisition of Café Moka, we will complement and strengthen our position in the Brazilian coffee market, particularly in the important São Paulo area, where the company is located. The company has a very well-established direct sales and distribution system for the growing small and medium trade segment, with ample expansion opportunities.”
Café Moka’s largest brand is the mainstream brand Moka, while Jaragua, a smaller brand will focus on the economy segment of the market. Sara Lee is already a market leader in Brazil with its Pilao, Caboclo, Café do Ponto, Uniao and Seleto brands. The US-based company generates more than US$ 13 billion annually and employs 44,000 people worldwide.
Chicago, US: Despite its negative reputation, snacking has become ‘acceptable behaviour’. According to a report ‘Snacking in America 2008’ prepared by The NPD Group, a leading market research company, “snacking is a behavior that is entrenched in the daily routine of American lives”. From 1996 to 2002, the consumption of snacks went through a period of decline but is forecasted to grow by 14 percent by 2017.
Harry Balzer, vice president at The NPD Group and author of Eating Patterns in America said, “A generation ago most Americans believed they should ‘avoid snacking entirely but today snacking is more acceptable and is clearly the fourth meal of the day.” He added, “Twentyone percent of all meals are snacks.”
NPD finds that among children aged six to 12, snack-oriented foods, although primarily eaten between meals, is increasingly being consumed along with meals or as a meal replacement.
However, snacking among children aged two to five is declining. By 2017, NPD projects children under nine and adults ages 30-39 and 50-59 comprises the largest number of snack eaters.
Arnie Schwartz, who heads up the The NPD Group food and beverage business unit said, “There is an aging curve that shows between meal eating peaking at a very young age; although children in general remain the heaviest snackers. On the other end of the age spectrum, between meal eating shows growth after the age of around 60. Because this is where the population is heading, we would expect this behavior to just outpace population growth.” Top five snacks: cookies, candy, gum, ice cream, and chips. Most snacking still occurs in the evening at home. However, fruit is the top food eaten between meals anywhere.
Balzer said, “Regardless of age, lifestyle or health, snacking, whether mindful or mindless, is a component of our daily eating patterns. Mom’s warning about spoiling our appetites with snacks is definitely going unheeded.”
Washington, US: The American Beverage Association (ABA) is up in arms over a study “Caffeinated Energy Drinks – A growing Problem” to be published in the journal Drug and Alcohol Dependence. The study warns of “caffeine intoxication” and single servings containing the caffeine equivalent of 10 cans of Coca-Cola.
Scientists from the Johns Hopkins University School of Medicine in Baltimore have suggested prominent labels for energy drinks listing caffeine doses and warning of potential risks when used alone, or in combination with alcohol. Doctors, they said should get familiar with signs of caffeine intoxication, withdrawal and dependence in young people who might be consuming the beverages. The study stated: “In children and adolescents who are not habitual caffeine users, vulnerability to caffeine intoxication may be markedly increased due to an absence of pharmacological tolerance.”
The American Beverage Association published a statement defending energy drinks which they said contains only half of the caffeine found in regular coffeehouse coffee. It stated: “It’s unfortunate that the authors of this article would attempt to lump all energy drinks together in a rhetorical attack when the facts of their review clearly distinguishes the mainstream responsible players from novelty companies seeking attention and increased sales based solely on extreme names and caffeine content.”
In the EU, energy drinks are required to carry a “high caffeine content” label. In Canada, Red Bull is the only drink sold as a natural health product but its label cautions against mixing with alcohol and that no more than two cans (500 ml) be consumed a day. Apart from water as a base, ingredients in a can of energy drink may contain: B-Vitamins, High Fructose Corn Syrup (HFCS), Taurine, Caffeine, Guarana and Ginseng. Caffeine content for various drinks published in Drug and Alcohol Dependence include Wired X505 (24 ounces) which contains 505 mg of caffeine, Red Bull (8.3 ounces) which contains 80 mg and Coca-Cola Classic (12 ounces) which contains 34.5 mg caffeine. The ABA believes that energy drinks can be part of a balanced lifestyle when consumed sensibly.
London & Rotterdam: Paul Polman, currently Executive Vice President and Zone Director for the Americas at Nestlé SA, has been chosen to succeed Patrick Cescau as Unilever’s Group Chief Executive. Polman will be proposed for appointment to the Board at Extraordinary General Meetings to be convened during the autumn. Patrick Cescau, Group Chief Executive, will retire from Unilever at the end of the year. Polman, who joined Nestlé in 2006 as Chief Financial Officer, served Procter & Gamble for 26 year becoming Group President, Europe from 2001 to 2005. Cescau who was appointed Unilever’s first Group Chief Executive Officer, a position created in April 2005, had been with the company since 1973. He was elected to the Board as Finance Director in 1999. He was appointed Chairman of Unilever PLC and Vice Chairman of Unilever NV in 2004. Patrick Cescau said: “Four years ago we set out to transform Unilever and to get the business back on track. I believe that phase of work is largely complete, so now is exactly the right time to pass on the baton.”
Michael Treschow, Chairman of Unilever added, “Patrick has had an outstanding career. We are greatly in his debt for the transformation he has brought about over the last four years. The performance of the business has improved markedly under his leadership. Liked and admired in equal measure, Patrick leaves a substantial record on which to build.”
Lake Bluff, US: Family-owned Terlato Wines has recently promoted its Chief Marketing Officer David Lane to Chief Operating Officer. Lane has 17 years of experience in the premium wine industry. With his key understanding of the luxury wine market, Lane has driven strategies to maximize the strength of the Terlato portfolio enabling top line revenue growth of more than US$ 50 million. Lane replaces Tom Steffanci, who has chosen to leave TWI to create his own wine brand in California.
President and Chief Executive Officer Bill Terlato said, “David has made outstanding contributions to the company since he joined us in 2005. He has led our marketing, communications and research teams, dramatically changing our activities in these areas and improving measurable results. We now have a better understanding of the luxury wine consumer’s needs, which has translated into stronger advertising executions and partnerships, greatly enhanced brand awareness, along with stronger brand programming and excellent package development.”
Lane, a Florida State University Paul Polman Bachelor of Science graduate, also holds a Master of Business Administration degree (marketing and international business) from Duke University. He began his career in the wine industry in 1991, at E & J Gallo Winery where he served as Fine Wine Sales Manager, Southeast U.S. and On-Premise Division Manager for Florida.
Canton, US: Most recently a Senior Vice President of Marketing for the Oxygen Network, Cynthia Ashworth has had more than 15 years leadership experience, responsible for all consumer and business to business marketing for the media company.
Prior to Oxygen, Ashworth spent eight years with the advertising agency, Kirshenbaum Bond + Partners, where she led the Account Management department. Reporting to Frances Allen, Dunkin’ Donuts Brand Marketing Officer, Ashworth will be responsible for all consumer messaging, including advertising, media, interactive marketing and in-store retail. In a press statement, Allen said, “ Cynthia has a terrific track record for driving business results in wide-ranging categories. We’re thrilled to have such a seasoned integrated marketing executive come aboard during this exciting time for Dunkin’ Donuts.”
Ashworth, a graduate of the University of Toronto obtained her MBA at the University of Virginia. She has also received industry recognition that includes BDA/Promax awards (for Campaign of Distinction and Website Gold), a Bronze Effie, and a Webby Award.
Dunkin’ Donuts has more than 7,900 chains in 30 countries worldwide. Last year, its sales reached US$5.3 billion. It is the leading retailer of hot and iced regular coffee-by-the-cup in America, and the largest coffee and baked goods chain in the world. In 2007, Dunkin’ Donuts’ global system-wide sales were $5.3 billion.
SOFI Awards 2008 (Part II):
All That Glitters
In a two-part series, we feature the best of the best from the US. These gold award specialty food winners are purveyors of fancy foods and evidence of the country’s resilience.
The National Association for the Specialty Food Trade’s (NASFT) SOFI Awards recognise outstanding food and beverage products in 32 categories of specialty food. SOFI stands for Specialty Outstanding Food Innovation.
Winners were selected from close to 2,100 entries by a national panel of specialty food industry experts. Every year, winners are conferred at the Summer Fancy Food Show in New York City. A record 2,191 entries were received this year. The field was narrowed to 150 silver finalists by a panel of specialty food experts last spring. The gold winners were handpicked by a group of more than 250 retailers and restaurant buyers in a judging event at the Fancy Food Show. The event is also owned and operated by the NASFT. Companies must be members of the NASFT to enter a product for competition.
“The winners of this year’s SOFI awards are evidence that our members continue to create distinctive products that delight consumers,” said Ann Daw, president of the NASFT. “That is part of why our industry remains resilient in this challenging economy,” she added.
Outstanding CrackerThese baked goodies are made using gluten-free, wheat-free and organically grown brown rice, quinoa, flax seeds and brown sesame seeds, with no added fat. The winning original flavour has a rich nutty flavour.
Outstanding Cooking Sauce or Flavour EnhancerTomatoes and exotic spices are blended to make this Indian product. It can be used to spice up any North Indian dishes by adding heavy cream and water.
Outstanding Cheese or Dairy ProductFaithful to the traditional methods of the French farmstead cheese maker, Coach Farm makes artisanal goat cheeses that were once found only in the remote villages of France. Only the French Alpines breed’s 100 percent Grade A goat’s milk is used. The milk is pasteurised and non-homogenised.
Outstanding New ProductThe winner is a first-time exhibitor who wowed the judges. Thierry Farges, president of Transatlantic Foods Inc, said: “It’s a product we developed over the years. We’ve perfected it”.
Outstanding Frozen SavouryThis golden brown, miniature cream puff is handmade, hand cut, filled and capped with hopped fresh mushrooms, walnuts and seasonings.
Outstanding Diet or Lifestyle ProductOrganic Nectars’ raw, organic, non-dairy, and low-glycemic agave gelato is made from raw, organic soaked and rinsed cashews (reduced phytates) and is free of refined sugar, dairy, eggs, soy, wheat, glutens and GMOs. The only sweetener used is Organic Nectars’ own 100 percent raw and organic agave syrup, so it is low glycemic and suitable for people watching their sugar intake. All ingredients are also kosher.
Outstanding ConfectionThis healthful and wholesome snack is packed with the antioxidants of its handselected, organic ingredients. Using real fruit extracts, they are handmade and packed in new resealable bags.
Outstanding Cooking Sauce or Flavour EnhancerThe sweet and sour fruit is infused with wine and balsamic vinegar. It can be used as a finishing sauce over grilled meats, poultry and seafood. It is also perfect as a dessert sauce over ice cream, pound cake and fresh fruit or as a topping for cheesecakes.
Outstanding Perishable Foodservice ProductThe beef tenderloin is accented with mushroom duxelle in a French-style puff pastry.
Outstanding Snack FoodThese handmade snacks have a honeyed taste. Packed fresh from frying, the shelf life is about four to six months.
Outstanding Soup, Stew, Bean or ChilliThis Smoked Scallop Lobster Bisque is made using heavy cream, real butter as well as spices. And most importantly, it features a blend of the smoked scallops and Maine lobster meat. It is packed and shipped frozen.
Outstanding CookieLace cookies are a Southern specialty and for Minnie Beasley’s, an artisan business. They are handmade with almonds into about five inches long and can be frozen if they are not consumed within a few weeks.
Cocoaland: Chewy Fruitiness
The first gummy candy in Malaysia enriched with Vitamin C, Cocoaland's Lot 100 comes in a variety of flavours, incuding Mango, Blackcurrant, Strawberry and Cola. Containing 80 to 90 percent fruit paste, the candy is a fun and healthy snack for the whole family.
Pepperidge Farms: Classic Cookie
A simple and elegant cookie, Pepperidge Farm’s classic Milano will never go out of style. A sandwich biscuit with rich dark chocolate filling, it comes in various flavours to suit any mood. Try chocolate mint, chocolate raspberry, orange or mint, among others.
Dove: Silky Smooth
Another winning product from Mars, the Dove chocolate collection is made from the finest cocoa beans around the world. Its singles range comes in either milk chocolate or dark chocolate.
Cookie Tree: Premium Variety
Cookie Tree uses only the finest ingredients to produce an exceptional range of premium quality products. It improves on traditional recipes and add a new twist to popular favourites. The biscotti range, a perfect complement to coffee, comes in a few varieties including Pistachio Toast, Cranberry Almond Toast, Hazelnut Toast and Almond Toast.
True Heritage Brew: National Cocktail
Sling was created during Singapore’s colonial days in 1910 and is now considered Singapore’s national cocktail. As a for-export product, it has an exotic tropical taste. The original mix makes it easy to use for simple concoctions. True Heritage Brew claims that this is at least 43 percent cost saving as compared to conventional ways of mixing.
The Hurns Brewing Company: This is a rich, red premium cask ale produced using pale ale, crystal and wheat malt. It gives a full fruity/citrus hop flavour of Willamette and Fuggle with the light aroma of Goldings. It is labelled under Tomos Watkin from The Hurns Brewing Company in Wales.
Absolut: Absolutely Exotic
Absolut Mango is aromatic and juicy, with a pronounced and genuine character of ripened mango. It is made from all natural ingredients and contains no added sugar or sweetener. The manufacturer said mango is a “commercially underexplored flavor” that has a “strong global appeal”. ABSOLUT MANGO comes in the following sizes: 1l,
75 cl, 70 cl and 50 ml. It was only available in Global Travel Retail from February 2008, starting with selected markets.
Cavalchina: Exquisite Vintage
The very late maturation and delicate structure of the grapes make the Santa Lucia a rare jewel. The harvest generally happens towards the end of October and after destalking the fermentation takes about 15 days; with initially high temperatures, which are then lowered. The different structure of the Sangiovese grape means that it has to be fermented separately, with a reduced maceration, for between six and eight days. The wines are blended and bottled in the summer and then kept in bottle for three months before release in November a year after the vintage.
Sunbeam: Traditional Goodness
Sunbeam’s range of traditional easy-to-cook meals is a delight for those who enjoy Malay cuisine but does not have the time to prepare it. A packet contains a variety of rice noodles with spicy gravy ranging from assam laksa and curry laksa to the East Coast specialty, laksam which is a milky coconut and fish gravy.
Stanson: More Kick, More Power!
Black Fury is an energy drink formulated to increase and maintain alertness, endurance and performance levels of your body and mind. Use it to overcome stress, or inject energy into physical activity - or simply savour the taste that comes with power! Introduced in May 2007, Black Fury is a product of Malaysia with Halal certification. It is manufactured for and distributed by Stanson Marketing Sdn. Bhd.
BQM: Homemade Quality
BQM produces quality meatballs and burgers with a high percentage of meat ingredients. It manufactures both beef and chicken balls of various homemade recipes such as Swedish, black pepper, curry and cheese. These products are prepared in a clean and hygienic environment and endorsed by a few organisations including Malaysia’s Halal Industry Development Corporation (HDC).
D’Gateaux: Ready-To-Eat Dessert
Manufactured by Deligateaux (M) Sdn Bhd, the dessert is available in several flavours: Cheesecake, Tiramisu, Black Forest and Chocolate Truffle. This ready-to-eat dessert is Halal-certified and is also produced under stringent good manufacturing practice and HAACP standards. A fast solution for any occasion.
Taking A Larger Bite Of The Global Pie
After a re-branding exercise that made it into a household name, Munchy’s, one of Malaysia’s ‘Superbrands’ is planning to take a larger bite of the global pie by developing a range of innovative products and making in-roads into regional markets by implementing a ‘step-by-step’ strategy. Food Export International talks to Group Chief Executive Officer CK Tan.
By Azrina Abdul Karim & Nicole Liang
A landmark for travellers driving from Kuala Lumpur into the southern town of Batu Pahat in Johor through Yong Peng, Munchy’s red, white and blue factory-office is hard to miss. Located in the Tongkang Pecah industrial zone, the factory is affectionately known as “Disneyland”. The unmistakable smell of baking cookies wafting through the site brings up a bout of nostalgia. This is the hub of Munchy’s “world”; where new ideas are implemented and then, executed. Led by a tightly-knit band of five brothers, Munchy’s or Munchy Food Industries (M) Sdn Bhd thrives on innovation. It is the first biscuit manufacturer in the region to create a mini-sized sandwich biscuit, which is “a nightmare to produce”, says Group Chief Executive Officer CK Tan.
Munchy’s ideas factory is located up north in the royal town of Klang in Selangor, where Tan has just returned from an exhaustive trip overseas bringing back a range of snacks and biscuits to give him ideas on how to further expand the company’s line of products. The Klang office, which oversees branding and marketing efforts under Munchworld Marketing Sdn Bhd is a bright and cheerful red and white themed office with quirky quotations on the walls and portholes which allow you to peek into other departments. From the lift lobby, the visitor would need to enter a red tunnel with white arrows and signs proclaiming “this way to munchy’s” before arriving at the marketing headquarters, a lively environment complete with a central bar, billiard table and anthropomorphic orange bench. There is a good vibe about the place. The décor reflects a “fun” statement: “To produce all kinds of fun eating snacks and fill them in every home all over the world.” Its ‘Bite Me’ catchphrase with tonguein- cheek statements like “You want a piece of me?” aims to win over a global audience which of course, would largely comprise a younger set that is quick to embrace a brand that looks the way they feel.
Conquering The World One Bite At A Time
Its wafers brands such as the Munchy’s Munchini Gigabyte wafer rolls and Yoss, (the first Munchy’s product that “took the world by storm”) is targeted at children, but the company also manufactures other family-oriented products aimed at capturing a broad segment of the snack food market. Its latest product, the Munchy’s Mini is attractive to all age groups, especially busy working people who find the tiny cream-filled sandwich biscuits a handy snack that can be eaten on the go.
Already a household name in Malaysia, Munchy’s aspires to become a well-known global brand and a market leader. First stop, Singapore. Second, regional markets like Thailand and Indonesia. Finally, the world. “After successfully building Munchy’s as one of the largest brands in Malaysia, we are now already branching out … to try and build the brand in the regional market.”
On Singapore, Tan says, “Some of our products like Lexus, Mini, Music has been receiving very good response from the Singapore market. And I think with these few upmarket products that we have, we are going to definitely capture the heart of Singapore.” However, Singapore is not Malaysia. The cosmopolitan city-state is a different ball game altogether. “We only sell our so-called ‘world products’ to the Singapore market.” Products like Lexus, Music and Mini, he explains, are specially designed for the world. “A lot of our products are, probably in terms of packaging, catered [mainly] for the domestic [Malaysian] market.” Therefore, a different strategy was needed to market Munchy’s to Singaporean consumers with its large expatriate base. Apart from magazine advertisements and television commercials, posters were placed at bus-stops near supermarkets using a ‘Path to Purchase’ strategy. Tan feels that “if you can compete in Singapore with all the international big brands, then obviously you can compete anywhere around the world”. That strategy, he says, “has been proven right”.
Tan explains, “We are now actually in more than 50 countries but in those countries, we are only relying on the efforts of our distribution partners.” Tan hopes to garner a larger market share in Southeast Asian countries by building factories locally and directly distributing the products, thereby side-stepping obstacles like import duties. Regulations, he says, “is the way each country protects its domestic industry”. He adds, “It is annoying but it is something we have to live with.”
In Malaysia, Munchy’s is the exclusive distributor of products by Singapore’s Super Coffeemix Manufacturing Ltd which includes the popular Super Power range of beverage mixes enhanced with herbs like Tongkat Ali, Misai Kucing, Kacip Fatimah, Ginseng and even Collagen.
Tan says, “When we took on Super three years ago, it was more well-known within the Chinese market … So, it is not an easy job.” In Malaysia, Munchy’s priority was to build the brand in the heart of the Malay market, as Malaysia comprises 60 percent Malays. However, when Munchy’s execute their product marketing planning, Tan says, “it’s across the board”. Young or old, irrespective of race, “We want everyone to accept our products.”
“After three years of re-branding efforts, as well as Super’s marketing efforts, we are actually the fastest growing brand for coffee in the industry. Last year, our sales [for Super products] already reached over RM60 million in just three years. That’s why it’s been very encouraging for us, and we are aiming at over RM80 million for this year.” He adds, “We are also looking around the region to see some products with capabilities and similar strengths to Super. Then, we’ll bring them in.”
For Munchy’s, convincing a potential partner to take on its products is easy “due to ten years of heavy marketing”. However, choosing the right distribution partner, he says, “is the hardest and the most difficult challenge because both companies are independent” and the way each company approaches the product may differ in very fundamental ways. “I find that just in this region alone, every country, people’s way of life is different, working hours, see things differently, habits … these are areas that we need to work on and think about.”
Basically, he says, “You can’t be imposing your corporate guidelines on other people, except your own.” Munchy’s can only advise their partners, based on their brand guide, on how they merchandise their products but adopting the same strategy in another country may not be feasible. Therefore, some partners may say they cannot use the same approach because in their country, the situation differs. Tan gives an example: “In our country, we build a 70 million business; then we will do above the line branding. But in some countries, they want you to do above the line immediately!” For Munchy’s, a profit of RM20 million in the first year does not justify putting money into an ‘above the line’ campaign. In Singapore, however, Munchy’s is considering doing above the line advertising for its Mini biscuits where sales have been very encouraging. In Thailand, Tan says, Munchy’s has spent “a million dollars” on bus advertising.
While recognising the world is in an economic slump, Munchy’s has continued to implement its plans and investment strategies by spending over RM70 million to produce new products and to strengthen existing products under its current portfolio. “We are trying to use our money more creatively, working closely with our partners like Media Prima [a Malaysian media company] and continuing with our sponsorship programmes.”
There are internal challenges; teething problems with new machines, for example, but “you have to keep pumping money into R&D”. Innovation is the name of the game. Tan explains, “I feel innovation is nothing but seeing things from another dimension”. The Munchy’s Mini, for example, was a result of this approach. “We are the first in the region that is able to do the mini. In order to do this product, we had to spend over 20 million.” The investment has been worth it. So far, Munchy’s have been producing 40,000 cases of its new mini biscuits per month; and that’s just for the local market. “Maybe within 3 to 5 years, nobody can come as close as us in terms of the capabilities of what we are doing right now.”
The next ten years will be a period of rapid expansion for Munchy’s. Growth is important, he says. “If you don’t grow, you die.” As a company grows, diversification is inevitable but at the moment, Munchy’s are restricting themselves to biscuits and wafers. Tan says, “I can only move one step at a time.” At present, he adds, “We will stick to FMCG, things that can enrich people’s lives.”
If possible, Tan would like to launch a new product every month, but at the moment, this is not logistically feasible. Right now, the key word is “health”. Tan says, “We are riding on trans-fat free, no GMO flour, enriched with vitamins … Lexus, for example, is enriched with vitamins, but now we are moving towards less oil, to make the texture better.” There are more surprises in the future, Tan promises. “We are now working on something really, really healthy; something that you can eat everyday, providing a lot of fibre and rich in protein.”
What does it take to become a global brand? Tan says, “I think the first thing the company needs is to have a goal.” The leadership needs to “have the heart to do it right”. The second element is “good people”. Tan explains: “You need to have people who believe in you, in the management’s mindset … Those are the people who are going to make it
happen, people who are going to ride the journey with you.”
The group currently employs 1400 people. Third, is “good
communication”: vision should be communicated effectively
top down. Finally, execution. “That’s about it,” Tan says.
Sounds simple, but Tan believes that every business has to go
through “growing pains” to mature. “If you continue to grow,
you have to expect a lot of obstacles.” Change, in business,
as in life, is unavoidable. “I think it’s part of life in business.
Things change all the time. It’s just a part of progression.”
Zespri: Kiwi Powered
The Kiwi, or the Chinese gooseberry as it was known then, was re-discovered by the New Zealanders in 1904. Since then, they have researched and improved the fruit to produce green and gold variants. Food Export International speaks to Daniel Mathieson, Market Manager – Southeast Asia and Chen Yu-Jan, General Manager Asia of Zespri Kiwifruit on the fruit’s marketability in today’s food climate.
By Ong Hong Tat
Today’s consumers want more from their foods - more value, better taste and higher nutritional content. The humble Kiwifruit from New Zealand is an export success story that seems to fulfill this need – it is sold to 60 countries around the world. In 2007, Zespri Kiwifruit International exported 52.5 million trays of the fruit to Europe, 16.4 million to Japan, 18.4 million to Asia and 5.9 million to North America.
In New Zealand, the fruit is predominantly grown in the Bay of Plenty. The area accounts for 77 percent of New Zealand Kiwifruit production. Zespri Kiwifruit is also a major export for the country. In the year ending December 2007, Kiwifruit exports amounted to 60.6 percent of all fruit and nut exports and 27.3 percent of all horticultural exports from New Zealand. While New Zealand is not the largest producer of Kiwifruit in the world, Zespri is the largest marketer of the fruit globally in terms of value – with over 20 percent of market share year round.
Zespri International is a New Zealand-based company that markets Zespri brand Kiwifruit around the globe. Headquartered in NZ, the growerowned company has offices in the major markets that it sells to: Europe, UK, North America, Japan, including Asia and the Pacific.
Hoping to grow its business further, Chen Yu-Jan, General Manager Asia at Zespri, said that Zespri kiwifruit will base its Southeast Asia hub in Singapore to target the growth opportunities in the region. He was in Singapore on June 12 to kickstart the launch of the Kiwifruit Season as part of the company’s efforts to cover the Asian market more completely. He said, “Zespri wants to capitalise on Singapore’s infrastructure. The workforc e i n Singapore is suitably qualified and its location in the center of Southeast Asia means it is convenient to reach the other markets. From Singapore, we can run a better marketing programme.”
Daniel Mathieson, Market Manager – Southeast Asia said, “An average Kiwifruit provides the recommended daily value of vitamin C as well as other beneficial nutrients necessary to maintain well-being. Zespri Kiwifruit will be releasing new research in the near future that shows how the goodness of Kiwifruit can assist in boosting immunity.”
Emphasising the fruit as a rich source of nutrients has certainly paid off. Before it began its blueprint for Southeast Asian growth, Zespri has already been exporting to China since 1993 and sales are rapidly heading towards NZ$ 50 million (US$ 34.42 million), or approximately four percent of Zespri’s NZ$ 1.2 billion net sales. The country is a significant and fast-growing market for New Zealand Kiwifruit, with 40 percent year-on-year sales growth. China’s agreement to reduce the 20 percent tariff on Kiwifruit to zero over the course of the next nine years is significant to the future of New Zealand Kiwifruit – one that will be worth many millions of dollars to the industry over time. China is also a likely source of Kiwifruit for Zespri in the New Zealand off-season. Zespri already has some trials of Zespri Gold underway and is looking to expand its presence in China. Zespri sells about NZ$ 80 million of the Kiwifruit sourced from outside of New Zealand; this strategy assists in maintaining the business’s year round sales.
From Crunch Time To Crunchy Good Times
Raw material and freight costs are rising. Consumers are tightening their belts. During this crunch time, business at Miaow Miaow Food Products Sdn Bhd, a crunchy snack manufacturer and exporter, is better than ever.
By Nicole Liang
Miaow Miaow Food Products Sdn Bhd (MMFP) benchmarks itself as Asia’s answer to the Laysbranded potato chips, a division of Frito-Lay that is owned by PepsiCo Inc. Today, the Batu Pahat-based manufacturer is a specialised crunchy snack manufacturer and possibly one of the biggest suppliers of salty crackers in extrusion, deep fried, roasted, pellet and pillow forms.
Manufacturing out of its 4,500 sq m factory, MMFP exports over 75 percent
of its monthly output of 30 containers. A new plant, which began operations in September this year, covers an area of 5,574 sq m. This will help MMFP double its capacity – a step taken to meet growth projections despite challenging market conditions.
The factories will produce in-house brands Miaow Miaow, Real and Spino, which are shipped to 28 countries worldwide. Real is a range of the potato chips imported from Oregon in the US. It is seasoned and flavoured to suit local tastes before being packed for both private labels and the in-house Real brand. The biggest export markets for this in-house trio is Saudi Arabia, which accounts for close to 50 percent of total shipments.
Responding to Food Export International’s (FEi) email enquiry on his observations on the Middle Eastern market, MMFP’s Managing Director Ch’ng Poh Tee wrote: “Approximately 90 percent of the population in Middle East adheres to Islam, therefore there are massive opportunities for us to tap into and network with the distributors there to cater to the demand for Halal foodstuffs.
“Consumers in the Middle East are generally quite young. In Saudi Arabia, 40 percent of the population is under 14 years old, while those
aged between 15 and 24, and between 25 and 39 account for 18 percent and 24 percent of the total population, respectively. In fact, this group of people is our targeted market.
“The Middle Eastern countries have been reforming their trade regimes. To promote intra- and inter- regional trade, a number of free trade agreements are in place and this will subsequently increase the import demand”.
Despite its strong portfolio of up to three in-house brands which all boast export capabilities, MMFP pays surprisingly substantial attention to its OEM offering. Ch’ng explained in a separate interview with FEi: “Hypermarkets have been mushrooming for the past few years. This trend gave us the opportunity to widen our market share as an OEM. Be it our in-house or private label brands, each is a way for us to reach the consumer”.
Apart from its in-house brands, the company is also a private label manufacturer and OEM for several other names. In fact, Ch’ng said that MMFP hopes to be a leading OEM partner in snack food. Some of the brands it works with include: Farmland Oregon Fresh (Singapore); Haton (Singapore); Tesco (Malaysia); Dr Ten (Thailand); and Dr Taco (Thailand). Altogether, MMFP churns out more than 100 SKUs.
Ch’ng said that the company was Tesco Malaysia’s first OEM for its Tesco Value range. Private label manufacturing is also done for other supermarkets: Giant in Malaysia and NTUC FairPrice in Singapore. “With Tesco, our product is matched closely to the market positioning of Lays,” Ch’ng added.
Reducing Costs: Lose Some, Gain More Matching this market positioning did not mean having to sacrifice cost competitiveness. MMFP’s strategy is to build an extensive network of alternative suppliers and compare their services and prices each time before placing procurement orders. “Look for more suppliers. It may mean more work but this lowers costs. Ingredients can also be sourced from other countries as long as the quality is not affected,” Ch’ng shared.
In most instances, however, relationship works too. A long-standing supplier may also be able to offer quality materials at competitive prices. This is usually a privilege enjoyed by customers who pay vendors in a timely manner, said Ch’ng. “And this is probably the reason we always have an intimate relationship with our suppliers,” he added.
Notwithstanding the above, MMFP did have to give up some profit margins since it had to maintain quality standards amidst cost cuts. It is a pinch that Ch’ng willingly endures. This way, he is able to keep volumes high, so that productivity does not suffer during this crunch time. “We go by volume; less of premium,” Ch’ng emphasised succinctly.
On the other hand, MMFP chose to shed some product net weights and packaging to lessen price hikes. As a result, sales revenue reached a record high by the first quarter this year. Businesses have come knocking on MMFP’s doors as its competitors began to sell at escalated prices. Ch’ng declined to reveal any sales figures but said that even its exports to the Middle East have picked up by as much as 50 percent during this period. It has even added the Philippines and Thailand as new export destinations.
“These two markets were rather difficult to break into. We’ve tried to do so before but were not successful. This is another breakthrough for us this year. Our in-house brands have also penetrated the Cambodian and Indonesian markets,” Ch’ng added.
Within each of its export market, MMFP appoints an exclusive distributor and makes sure that the partnership is lucrative to both parties. “To the right agents, we are always their major suppliers. More than half of their revenues should come from carrying our products,” Ch’ng said.
MMFP achieves this via what Ch’ng calls “a price-competitive strategy”: “What works is selling to distributors at the lowest prices possible. Only then can they work out budgets to help us, and themselves, invest in marketing efforts locally. It is up to them to design their own promotional programmes and activities. If we sell at prices too high, they will have less capital to engage advertising and promotional support”.
Rara Avis
He is the Chef de Cuisine behind one of Japan’s first few Michelin-starred Chinese restaurants, thrives on the use of rare ingredients, and adopts an amazingly humble keenness in tackling Japan’s demanding culture. Albert Tse calls himself a tailor with the mission to create the best fitting garment, for any guest, using rare pieces of fabric.
By Nicole Liang
Albert Tse is an avant-garde Chef de Cuisine heading the now one-starred China Blue - one of only five Chinese restaurants in Tokyo awarded the Michelin star this year. He describes himself as the artisan tailor who makes the best fitting garment out of rare pieces of fabric.
Indeed, Tse often uses extraordinary ingredients. For example, he uses an exclusive kind of pork that is obtained from pigs that are fed only on Korean ginseng and cabbage. Orders must be placed up to 10 days in advance and prices are on average 1.5 times that of Wagyu beef. According to Tse, there is only one supplier who provides this, at best a handful. And it was the same supplier who suggested the use of this breed to Tse. He continued, “This breed offers a good amount of collagen. Every part of the animal is ordered in advance; even the bones are snapped up quickly”.
Tse added: “This is a selling point – we offer the best pork in Japan. I like to do what others haven’t or cannot do. In this case, I am not afraid that other restaurants might replicate the use of this ingredient. It is too expensive and demands very different cooking methods. The chef would need to learn how to handle the meat first. What’s more, it is not even readily available”.
The Hong Kong-born chef revealed that as much as 80 percent of the ingredients he uses in China Blue are sourced as special orders. Besides the rare and dear pork, other common Chinese staples such as noodles, dumpling skins and seasoning sauces are all imported from a manufacturer that concocts them exclusively according to Tse’s requirements. Kwong Cheong Thye (KCT), a Singapore-based sauce specialist, which has also diversified into pastry-based Chinese ingredients, caters to all of China Blue’s needs in this area. Tse has specially commissioned KCT to manufacture his latest innovation – pumpkin noodles and wheatgrass noodles. “Diners may not be able to
find any traces of the taste of wheatgrass or pumpkin in the finished dish but the name and novelty is more important,” Tse said. KCT’s supplies to Tse’s are exclusive to China Blue. As a main supplier, KCT’s ingredients are worked into permanent items on the menu that cannot be done without. Substitutes are difficult to find, especially in Japan. He explained, “Japanese soya sauces have the salty taste but not the fragrance that is signature of Chinese cuisines. Those supplied by KCT match the authentic Chinese palate very well and leaves a wonderfully sweet aftertaste”.
Crabs are also imported fresh from Singapore. Japan may be well known for its crabs but most are more suitable for shabu-shabu (Japanese hot pot served usually with thinly sliced meats, crab, lobster, tofu, mushrooms and vegetables). Although the crabs that Tse imports are not local but from Sri Lanka, he said that authorities in Singapore have strict import controls so the produce sourced this way is safer. These Sri Lankan crabs are especially tasty for Chinese soups, Tse added.
Other local and more common ingredients are ordered one to two days in advance. This is quite unlike the practise in Singapore, said Tse, because markets are located far away from the restaurant in Japan. With distinct seasonal changes that directly affect dietary needs, purchasing decisions must be thought out early. “In autumn, we can go for Canadian influences or Cantonese soups. In winter, we need better nourishment and heavier tastes. If we want the ingredients, we must order early. What we want may not be available by the time we order, if we can’t keep up with the seasons,” Tse said.
Tse usually dictates the kinds of ingredients to use but seldom participates in how or at what costs they are sourced. He notes that prices fluctuates from day to day. Together with this purchasing manager, they must try to strike a balance between costs and the fixed menu items. “Dishes and prices on the menu cannot be changed. The latter requires approval and adjustments from many sides, including the computer and POS system,” Tse explained.
With all these extraordinary materials and a world-recognised Michelin star, the tailor/chef is endowed to deliver his best and consistently like clockwork. After all, this is an immense achievement, pride and glory for all ethnic Chinese chefs and chefs of Chinese cuisines. And Tokyo is the first and only Asian country in the Michelin Guide series. Tse is a rare find. The pressure mounts.
Tse explained why: “Winning the Michelin star officially means that we can’t stop or rest or skive or compromise even the slightest bit. The Michelin panel is like a guardian or accreditation body. They might visit the restaurant every few months for ‘spot checks’. We won’t know when or who, just like we had no idea at all that the Michelin judges were here to do the tastings and never found out who actually came or when. Supposedly, different judges visit a restaurant of their choice four times over one year. The choice of restaurants to be judged is not revealed and restaurants cannot nominate themselves either”.
“This illustrates the importance of being consistently up to standards everyday. Price, menu, taste, hospitality, service and dining ambience must be matched perfectly. I can’t do this alone; I need the entire team to work with me. I have to set a good example for everyone else to follow,” Tse added.
He continued, “I have to lead the whole team to live up to our name. For my staff, their future is now in sight – that is what I say to them to spur and encourage them. We have to keep the star and retain it every year.” This is already an expectation-laden task and being in Japan adds a cultural challenge to it. The Japanese look up to chefs in a manner that is perhaps found nowhere else in Asia.
Tse shared, “Chefs enjoy a very high position in Japan and the diners are very respectful towards us. Here, one would really learn what manners and refinement mean. Which is why I must show more respect to my occupation and diners in return, as a form of gratitude and appreciation”.
There are up to 12 set menus offered in China Blue at any time and changes are made at least once every week. But no matter how much a guest is expected to spend in the restaurant, Tse believes that everyone should be attended to with equal attention. Be it a 300-dollar menu or a three-dollar menu, the guest expects the meal to be reasonably filling and satisfying. Alluding again to the tailor metaphor, there might be a price tag to the fabric, but it should be tailored to fit any body of any spending power.
“The price you are prepared to pay should not affect the quality you receive. My wait staffs do not begin by recommending the most expensive dishes. Neither would they appear condescending if the guests order less premium items,” said Tse. He continued, “We must never ever cause any guest to feel embarrassed. This would be a very severe mistake to commit. It means the chef as a leader of the restaurant does not even know what he is doing”.
The point to bear in mind, instead, is to take note of their preferences and tastes, not the size of their bills, according to Tse. At China Blue, his wait staffs are required to keep records of each table – the guests’ names, addresses and telephone numbers if possible; their likes and dislikes; the items they ordered; the wines they prefer; and how much they spent. All these information must be entered into the computer system every time. “Be just a little more attentive and considerate. What if the guest comes back three years later and hopes to order the same dishes? It happens. We must be prepared,” Tse said.
Also, Japan’s government boasts an extensive and demanding set of rules and regulations that adds substantial weight to Tse’s workload. Ensuring compliance to these stipulations forms the operations part of Tse’s job besides cooking, menu engineering and staff training. Tse worked for more than 10 years in Singapore previously as Executive Chef of Jiang-Nan Chun at Four Seasons Hotel Singapore, and prior to that, Director of Kitchens of Club Chinois under the Singapore-listed Tung Lok Group. He also had another decade’s experience in Hong Kong before that. But none of these culinary paradises honed Tse as much as Japan did, in terms of kitchen hygiene and stringent food safety management.
He shared a few examples: “Everyday, we have to extract a sample of the foods we serve and keep them labelled in the fridge for up to three months. All foodstuffs must come with supplier stamps. Expired goods as well as all kinds of personal foods and drinks are prohibited in the kitchen. I must also check that refrigeration temperatures are maintained daily”.
There is more: Every month, the restaurant must hire at its own expense, a certified hygiene officer from the government to inspect the kitchen.
And twice every year, the government will send a hygiene inspector to the restaurant. Kitchen staffs are required to go for monthly health check-ups.
Japan taught the culinary seamster, in addition, the seamless combination of speed, accuracy and aesthetics. Said Tse: “Traditional Chinese cuisines often featured carvings of fruits and vegetables, or elaborate plating. The Japanese, however, believed in natural and aesthetically simple presentations that save time, hence preserving freshness. Attention is given to the main item on the plate. Cooking and plating to individual portion wherever possible also ensures that food remains hot, as compared to that which is cut and distributed before serving like it is mostly done in Chinese banquets”.
If it appears that the culinary veteran displayed a keenness to learn that is almost surprising for one who is a Chef de Cuisine (and of a Michelin-starred haute cuisine restaurant in one of Tokyo’s swankiest hotels), it should not come across as unusual. The vanguard chef is an exceptional man of substance himself.
Fresh Inspiration, Inspired Imagination
A chef who excels at combining the best from eastern and western cuisine into an inspiring and imaginative medley of flavours, Kevin Cape is the perfect candidate to advance the YTL Group’s food agenda. Based at Kuala Lumpur’s iconic Starhill Gallery, the British-born chef is savouring being on still ground after more than a decade on the legendary Eastern & Oriental Express. At home in Asia, he aims to provide a total dining experience that goes beyond borders, raising the bar on food service and concepts.
By Azrina Abdul Karim
Corporate Executive Chef Kevin Cape is like a kid in a big, beautiful playground. The Feast Village, at YTL’s iconic Starhill Gallery on Kuala Lumpur’s Bintang Walk, is Chef Cape’s expansive domain. With twelve dining options anchored by Shook!, a first-of-a-kind restaurant concept in Malaysia emphasising seasonal trends and exciting ‘fusion’ cuisine, the Feast Village is a visual and culinary delight.
Fusion, however, is a word that the British-born Cape prefers not to use to describe his creations which marries the best of East and West. Cape would rather talk about ‘freshness’ in ingredients, concept, taste, textures and flavours. After all, he says, “Malaysia is one whole big pot of fusion!”
As Executive Chef on the luxurious Eastern & Oriental Express which takes pampered guests from Singapore to Bangkok via Kuala Lumpur, Cape was well-known for organising a menu which is deemed by many to be the highlight of their journey. By “breaking with tradition”, he adds an exotic flavour to a familiar dish such as a lamb chop cooked in European style but coated with spicy Massaman curry sauce (from Southern Thailand) and garnished with Thai pickled tomatoes, a lemon-flavoured risotto topped with steamed fish served with a Thai Panaeng sauce or a steamed lobster with green curry sauce (normally used for chickens). When you travel on the E&O Express, Cape says, “Don’t go on the train purely for the excursion; go for the food.” According to travel writer Rowena Carr-Allinson, the food, in her opinion is worthy of a Michelin star!
As a young chef, Cape was trained under the legendary Michel Bourdin, Executive Chef at the world-renowned Connaught Hotel in London and later became its first British Executive Sous Chef. Although classically trained in French and British cooking, Cape took it upon himself to discover the fundamentals of Asian cuisine by cooking at restaurants in London’s Chinatown in his spare time. He also experimented with Asian cuisine when he was the Executive Chef at the Bell Inn, Aston Clinton in Buckinghamshire. He loves Asian culture and is heavily influenced by Thai cooking. “Thai food,” he says, “blends naturally with western food.” So, it’s easy to create something fresh and exciting by mixing Thai and Western ingredients or flavours. However, he adds, “If you want to understand Asian cuisine, you’ve got to go to its roots.” Attempting to fuse two different styles without studying its fundamentals will not yield successful results.
After fifteen years working on a train – even though it is one of the most famous train services in the world – Cape must find it slightly strange to step foot on the spacious Feast Village which occupies 46,000 sq ft on the lower ground floor of Starhill Gallery. “On a train,” he says, “you must be very, very disciplined.” To ensure success in a restricted space, organisation is key. From the luxurious confines of the E&O Express to the metropolitan elegance of the Feast Village, Cape has not missed a beat. He brings his talent for mixing styles and flavours with the finest attention to detail, constantly churning out ideas that is hoped to reinforce YTL Corporation Berhad’s Managing Director Tan Sri Dato (Dr) Francis Yeoh’s commitment to offer guests a world-class dining experience. Unlike executive chefs at top hotels bogged down by a lot of daily paperwork, Cape is given more freedom to do what he does best – creating! “The great thing about working for Tan Sri,” he says, “you’re totally your own boss!” He was also asked to concentrate on what he was good at: cooking and training. But more importantly, he has to help raise the bar in terms of food and service, as well as providing an overall experience that encapsulates what YTL is best known for – quality service and concepts.
Cape is currently in the process of brainstorming for YTL’s re-branding of the 18-year old Lot 10 (another Kuala Lumpur icon on Bintang Walk) complete with a new 700,000 sq ft ‘Rooftop Hangout’ featuring concept restaurants and trendy bars. He is furiously experimenting with new flavours and creating new ideas non-stop. An earlier event, the Midsummer Nights’ Feast, a 10-day gourmet festival held in July at Starhill, required months of planning and strategizing. Lot 10’s ‘Rooftop Hangout’ will be even more challenging as the scale is larger. Beyond Malaysian shores, YTL will open a Starhill Gallery in Singapore and London to follow the success of its Dubai launch. Cape will also be heavily involved in creating food concepts for these establishments.
To create something ‘fresh’, he relies heavily on quality ingredients from his suppliers. Most of the ingredients used at Feast Village are imported, but in the past year since he has taken the helm, Cape has managed to source local raspberries from Cameron Highlands and melons which he describes as “phenomenal”. He has combined goose liver with mango and a local banana called ‘pisang emas’ (golden banana). The dish is rich and smooth but tangy. He has tried different types of banana but only the ‘pisang emas’ works with the goose liver, he explains. “I’m always checking with my suppliers to try and get me something different,” he adds.
Cape aims to raise the bar in all aspects of the dining experience beginning with the ingredients that he uses and encourages his local suppliers to do the same by asking them to “change their mindset a little bit”. For a party at JW Marriott held just before Christmas last year, 90 percent of the ingredients used were organic from local sources. Organic farming,
he suggests, should be heavily subsidised as “cost is a big problem in Asia”. Cape loves experimenting with new ideas or re-packaging existing concepts and giving it a different, sometimes startling twist. He has created an exhaustive range of Amuse Bouche (bite-sized morsels that cleanse the palate) as well as a selection in juice form including a dragon fruit with star anise and coffee bean infusion, the fragrant cranberry juice with ginger flower infusion and an apple juice and curry powder combination called ‘Curried Apple Pie’. “Tasting is an art,” he says. Not every chef possesses the ability to combine contrasting flavours and making them work.
While he is familiar with Muslim sensitivities (at the E&O Express, he decided not to serve pork as the train travels through Malaysia), it is the first time Cape is stationed (for the long-term) in a predominantly Muslim country. Cape discovers that he has to be creative in working within the halal framework. For example, to make a good pizza, “you need to have a good sausage on the pizza” and one of the most flavourful happens to be chorizo, a spicy pork sausage. To produce an authentic flavour, he works with his butcher to create a chorizo-type local sausage using beef. He is also in the process of creating prosciutto or parma ham with lamb and beef. After 75 days, he is nearly there – the preliminary result is exquisite.
Apart from his butcher and supplier, Cape believes in pushing his staff to reach greater heights. “My main focus is training and encouraging,” he explains. The local staff have a lot of potential; but, he says, they need more exposure so that they will see that there are other, better ways of doing things. He is optimistic that his chefs will achieve greater heights under his guidance. Although he won’t be implementing the “hard training” that he had gone through as a young chef, he admits that he does “chase them”.
Previously a chef lecturer at Milton Keynes College and Accrington and Rossendale College, he is not averse to sharing knowledge, telling his staff: “You’re coming to my office to read a book!” He feels that Malaysia should have more affordable educational opportunities for young people to train as chefs. The country also needs more chefs that can be trained to top-level positions. In terms of his approach to training, Cape says, “I’ve been in Asia long enough to know what to do and what not to do.” Boot-camp type of training is not his style but giving encouragement, he adds, is high on his list of priorities. He believes that his chefs should know that they are appreciated if they have done a good job. “Build up on their weak points and home in on their good points,” he says. Apart from flavour and presentation, he likes to emphasise the importance of ‘detail’. “Most of what we do,” he adds, “it’s about the details.” Attention to detail sets YTL apart from its competitors. As executor of YTL’s multi-layered food agenda, 50-year old Chef Kevin Cape says, “I’m here to look after his [Tan Sri Francis Yeoh] culinary interests.”
Success is based on the guest’s level of satisfaction, where food is not just a feast for the palate, but also for all the senses – taste, texture, smell, sight. He says, “For me, food is about enjoyment.” After fifteen years on the E&O Express, travelling leisurely up and down the green peninsular, constantly moving from one station to another, Cape is now right smack in the middle of one of Southeast Asia’s most vibrant and colourful cities, anchored but not stationary, doing what he does best: fusing the best of East and West with inspired imagination.
Born in 1958, Chef Kevin Cape who is a graduate of the Crawley College of Technology, has worked under the expert guidance of Chef Felix Muntwyler at the Portman Hotel and Chef Michel Bourdin at the Connaught Hotel, both in London. The first British Executive Sous Chef at the legendary Connaught Hotel, Cape also represented Britain at various international competitions including the Prix Pierre Taittinger in 1984 and the Bocuse d’Or in 1987 where he was proclaimed “a gentleman of gentlemen; one of the best competitors with the best attitude”. After holding positions as Executive Chef at Bell Inn Aston Clinton and Tarnhouse Hotel, he accepted the post of Executive Chef with the Eastern and Oriental Express, becoming one of the most respected chefs in Asia. The award-winning chef has also taken up guest chef positions all around the world, from the 21 Club in New York to the Datai in Langkawi. Cape has been the Corporate Executive Chef of the YTL Group since 2007.
Sharpening The Edge
The Food Innovation and Resource Centre (FIRC) was set up in April 2007 to help small and medium enterprises create and test new products. In slightly over a year of operation, FIRC has assisted many Singapore food companies develop and test new products from scratch. Food Export International speaks to Loong Mann Na, Centre Director of FIRC and two prominent businesses that have benefited from FIRC’s wealth of food-technology knowledge to find out how research and development is an important driver of growth in the food business.
By Ong Hong Tat
The Food Innovation and Resource Centre (FIRC) is an initiative by SPRING Singapore and Singapore Polytechnic, designated to be a one-stop centre for food enterprises to create and test new products from concept up to market testing. The centre was initiated by SPRING Singapore, which worked with the Ministry of Education and Singapore Polytechnic to set up FIRC for the food industry. It will invest some S$7 million (US$4.92 million) in equipment and qualified personnel over a three year period from 2007 to 2010.The FIRC is the first center of innovation (COI) to be launched under SPRING Singapore’s S$150 million Technical Innovation Programme (TIP), which encourages small and medium enterprises (SMEs) to grow their business by adopting technology to create high value products to compete globally.
Located within the Singapore Polytechnic campus, the FIRC is ideally placed. It has four full-time and four part-time professional food technologists serving the research and innovation needs of the food industry. “FIRC was set up to provide technology consultancy and develop practical downstream technology platforms for SMEs. Our proximity to the polytechnic campus means we can effectively leverage on existing resident expertise to support the industry,” said Loong.
The centre is now housed in an interim 400 sq m facility. In addition, it makes use of th
