INDUSTRY’S FIRST-EVER SUSTAINABLE MANUFACTURING LABEL LAUNCHED

Singapore: In a bid to assist companies in Singapore to improve their business efficiency and better preserve the environment, a tripartite collaboration between the Singapore Manufacturers’ Federation (SMa), Singapore Environmental Council (SEC) and SPRING Singapore (SPRING) launched the Sustainable Manufacturing Label Programme; reported a November 3 joint release.

With growing awareness and demands for eco-friendly manufacturing practices, the Sustainable Manufacturing Label enables companies to establish a baseline on their current sustainable operations through a structured framework.

The programme also serves to aid restructuring of procedures to improve process flow efficiency and increase profit margins; via energy conservation and converting by-product waste into higher value-end products.

Manufacturers are now able to conduct self-assessments on the current maturity level of their sustainable manufacturing practices, get audited on their facilities and be awarded if the minimum standard level is achieved.

Moreover, manufacturers can partake in the Singapore Environmental Achievement Awards – SME category.

The Label was rolled out not only in light of the rising importance of adopting green practices but also to gain a leading edge with the environmentally-conscious consumers.

In his speech, Renny Yeo, President of SMa, encouraged local manufacturers to go-green as “this growing trend will also unlock new opportunities for our manufacturers”.

This key point was reiterated by Ted Tan, Deputy Chief Executive, SPRING Singapore, “Singapore companies must be quick to identify and capture the growth opportunities that the environmental sector has created for both the local environmental technology services and manufacturing companies.”

In conjunction with the launch of the Label, a Sustainable Manufacturing Programme pilot project involving a consortium of players in Singapore was also introduced. This was part of the objectives outlined in the Memorandum of Understanding (MOU) signed between SMa and SEC in April this year.

Supported by SPRING under the Local Enterprise and Association Development (LEAD) Programme, companies participating in this Sustainable Manufacturing Programme are able to tap on SPRING Singapore’s EnviroTech Capability Programme and the support level is up to 70 percent of qualifying cost for SMEs and industry projects.

Howard Shaw, Executive Director of SEC, concluded, “We hope that businesses, regardless of size or sector, will benefit not only from the recognition it brings but also further evolve good practices through adherence to the Sustainable Manufacturing Label framework.”

The organizers also held a half-day seminar on Envirotech Capability Development to enable the sharing of best practices by companies who incorporated sustainability into their operations.

LAWSON STRENGTHENED COMMITMENT WITH NEWLY APPOINTED DIRECTOR

Singapore: Lawson Software announced the appointment of Ronnie Sabnani as Regional Director, Channels, Lawson Asia Pacific & Japan. According to Lawson’s October 7 press release, Sabnani will be tasked to drive the growth and success of the Lawson channel partner ecosystem within Asia Pacific.

A significant portion of Sabnani’s time will be spent on establishing and promoting the expansion of business in the emerging markets. He reports to David Hope, general manager and regional managing director, Lawson Asia-Pacific & Japan.

This new appointment signifies Lawson’s commitment to develop channel partnerships in the Asia-Pacific region.

For Sabnani, his main goal with his new appointment will be to work with quality partners in the region to maximize coverage in key geographies and industries for Lawson and “make our reseller business a success”.

Sabnani has over 15 years’ experience in solution positioning, consulting and sales and marketing in the enterprise application industry. He also gained regional exposure across the Asia-Pacific (including Japan) with success in securing complex and multi-faceted projects commonly encountered by both small and medium businesses and multinational corporations today.

F&N PLANS 50 NEW PRODUCTS AFTER JANUARY 2010

Kuala Lumpur, Malaysia: Fraser & Neave Holdings Bhd (F&N) plans to launch 50 new food and beverage products within the next two-three years, reported The Star on November 11.

This is F&N’s bid to further expand and strengthened its dairy products and 2010soft drinks market shares upon the expiry of their agreement with Coca-Cola in September 2011.

The launch of the new products is restricted as stated in the clause agreed upon by both F&B giants.

F&N’s Chief Executive Officer, Tan Ang Meng, said that the launch of the 50 products would be done after January and will spread over two to three years so as to prevent over-saturating the market and “confusing the consumers with too many products”.

Also commenting on the F&N’s fiscal 2009 results, Tan said the group’s overall performance was commendable against the backdrop of an economic recession.
According to Bernama, F&N posted a 25.1 percent jump in pre-tax profit for the financial year ended September 30, 2009. The group also recorded a profit of RM299.777 million (US$89.087 million) as compared to RM239.672 million in the previous year.

F&N’s Soft drinks sales grew by 10.5 percent, while the operating profit for the dairies division improved by 59 percent to RM140 million.

Despite being affected by lower sales, F&N’s glass division managed to register a two percent growth in operating profit still.

Due to the vast population residing in the Indochina region, F&N also plans to enhance penetration into their canned milk market, which is worth about RM40 million-RM50 million.

F&N's total export of milk products is worth about RM300 million a year to countries in the Middle East, Africa as well as Hong Kong and Taiwan.

MALAYSIAN SEAFOODS PLAN TO EXCEED US$1.59 MILLION UAE EXPORTS

Dubai, UAE: A 14-member Malaysian delegation is set to participate in the upcoming ‘Sea Food Expo 2009’, the region’s only dedicated seafood event.

This is part of the extensive plans to exceed the US$1.59 million seafood exports recorded by the country to the UAE in 2008, according to Mena Reports, on November 18.

The participation is also aimed at increasing the value of its overall fish and fishery exports to the Middle East, which is currently at US$5 million, according to INFOFISH, an intergovernmental organisation that provides marketing information and technical advisory services to the fishery industry of the Asia-Pacific region.

As shared by Dr. S. Subasinghe, Director, INFOFISH: “Malaysian companies are very interested in exposing their high quality certified Halal seafood products to prospective regional and global customers in the country”.

The Middle East is fast becoming one of the leading hubs for Halal seafood trade as companies aim to establish contacts with potential buyers in the Middle East, impacting the growth and development plans for the Halal seafood export industry to the region.

With high profile participants set to stage extensive presence at the event, Orange Fair & Events, the event organisers for Sea Food Expo 2009’, is expecting to welcome some of the UAE’s largest seafood companies.

MARKET NEEDS TO RECOGNISE SUSTAINABLE PALM OIL

Kuala Lumpur, Malaysia: The premium for certified palm oil should be at US$50 per tonne compared to US$8 dollar per tonne currently in order to support the sustainable palm oil industry due to the costly certification process.

In stating this, Plantation Industries and Commodities Minister Tan Sri Bernard Dompok said some of Roundtable of Sustainable Palm Oil (RSPO) members who are non-producers were not fully supportive of the high premium certified sustainable palm oil.

Currently, a total planted area of 157,000 hectares in the country are producing more than one million tonnes of palm oil which have been certified by the RSPO, according to Bernama on November 9.

Dompak further shared that plantation companies are trying their best to produce sustainable palm oil even though there is qualified need for it presently.

In Malaysia, close to 40 per cent of the planted areas are managed by smallholders and as such, outreach efforts needed to be made to bring on board this particular segment of the industry, he said.

In addition to ensuring sustainable production, the Malaysian oil palm industry has also voluntarily adopted the Code of Practices (COPs) drawn up by the Malaysian Palm Oil Board (MPOB), he said.

The code covers the entire supply chain of oil palm and palm oil, incorporating elements of sustainability and food safety to ensure the production of sustainable and environmentally friendly palm oil for the global community.

The adoption and implementation of COPs is part of the industry strategy to comply with food safety and quality requirements of importing countries, the minister added.

A RM100 million oil (US$29.7 million) palm research facility was also developed by the MPOB to help boost the oil palm industry's productivity through a better understanding of the plant's genetic code.

DAIRY FARM FEELS PINCH FROM FOOD INFLATION

Singapore: Asian retail giant Dairy Farm International said that although most of its businesses “continued to perform well” in its fiscal second half, food inflation weighed on results.

As published by kamcity.com, the group’s sales growth for the half ending 11November had slowed slightly from the first, on constant-currency terms. However in terms of US dollar, sales growth had improved slightly from the first half.

Dairy Farm added that while the 7-Eleven chain in Hong Kong and South China were affected by the “challenging economic conditions”, its Malaysian and Indonesian businesses reported improved performance.

The group shared that it will continue to generate adequate free cash flow to support its expansion programme, and is in a strong financial position with net debt staying at less than $100m.

Dairy Farm continued expanding in the half, opening 130 new outlets and taking its group store total to 4,977 outlets.

PHILIPPINES TO IMPORT 1.4 MILLION TONNES OF RICE IN 2010

Manila, Philippines: The Philippines will import at least 1.4 million tonnes of rice next year, to beef up government stocks and stabilize domestic supply, Malaysia’s Bernama reported on November 16.

Ludovico J. Jarina, deputy administrator of the state-owned National Food Authority (NFA), shared that Philippines’s self-sufficiency level is only at 86 percent; importing 1.4 million tonnes of rice will put the government rice stocks at "a very comfortable level."
The NFA purchased 250,000 tonnes of rice Nov 4 and will tender for 1.2 million tonnes of rice in December. The imports are expected to come in the first half of 2010.

They are also eyeing to source rice from Thailand, Vietnam, China, Pakistan, Australia, the United States and India.

NFA officials, however, said that the 1.4 million tonnes of rice does not yet take into account the damages in the country's rice sector.

Typhoons "Ketsana" and "Parma" flooded rice growing areas in Luzon, northern Philippines and damaged as much as 1.3 million tonnes of palay (paddy rice).

Jarina added that the Philippines is importing rice as soon as possible to take advantage of good prices.

Based on the previous tender for 250,000 tonnes of rice, the weighted average price was at US$530 per tonne.

As of Oct 30, the country's national rice inventory is at 2.38 million tonnes. The NFA's rice stocks is at 1.1 million tonnes, which is good for 32 days based on an average daily rice requirement of 36,000 tonnes.

MALAYSIA TO INCREASING FOOD OUTPUT FOR UNIVERSAL PEACE

Kuala Lumpur, Malaysia: Malaysia is committed to increasing world food production which is becoming more critical, so as to ensure adequate food supply and continued universal peace, said Tan Sri Muhyiddin Yassin.

According to Bernama, the deputy prime minister said if there are no serious efforts to address agriculture production, it would impact food supply, causing poverty to climb and threaten world security.

Muhyiddin led the Malaysian delegation to the three-day World Food Security Summit in Rome organised by the United Nations' Food and Agriculture Organisation.

He is among more than 60 heads of state and government attending the summit, aimed at pressing for a new momentum to combat famine that affects 1.02 billion people.

This high-profile summit is also aimed at deriving the political will of world leaders in addressing the causes of famine in some countries of the world.

"The poverty rate has also dropped to 2.7 per cent. I hope we can get rid of hardcore poverty and relative poverty," Muhyiddin said.

According to UN statistics, almost one billion of the world's population are facing starvation compared with 800 million two years ago and the number of poor has increased to 1.5 billion this year.

The deputy prime minister hoped that through this summit, the developed countries particularly, could give their commitment to combating poverty and ensure adequate food production and food security.

Muhyiddin said at the G8 meeting, there was realisation to create a US$20 billion fund to help poor and developing nations, but it was not known how much had been collected and channelled to the recipients.

The leaders at the summit will not only discuss ways to institute a more effective and integrated food supply and food security management system, but also to develop regulations and mechanisms to help farmers in the developed and developing nations earn income that is on par with that in the other sectors.

JETRO TO PROMOTE JAPANESE FOOD

Mumbai, India: To directly appeal Japanese food and beverage products to Indian consumers, Japan External Trade Organisation (JETRO), a government-related organisation that promotes mutually beneficial trade, has launched two ‘Japan Shops’ at Nature’s Basket Warden Road and HyperCITY, Malad, in Mumbai.

Commenting on the potentials of the Indian market, Naoyuki Maekawa, director general of JETRO Mumbai said, “In order to be successful in India, Japanese companies need to develop a sophisticated strategy, a strategy that suits the Indian market.”

According to JETRO, the ‘Japan Shops’ will be operated by Maido India (Maido Enterprises Pvt. Ltd) and will sell 58 products including food, beverages, seasonings, snacks and confectionery.

They are selected for the Indian market by seasoned buyers of international gourmet products, a selection process arranged extensively in Japan in August 2009.

The ‘Japan Shop’ will be the gateway for the Japanese food industry in India and will simultaneously provide the people in India an opportunity “experiment and learn about the Japanese food and beverages”, added Tamon Mochida, consulate general of Japan in Mumbai.

SUNTORY COMPLETEs ACQUISITION OF ORANGINA

Tokyo, Japan: Japan's Suntory Holdings Ltd has completed acquisition of privately held European beverage maker Orangina Schweppes Group in a deal that will help elevate its position in the global soft drinks market, the Wall Street Journal reported on November 16.

Although the actual transaction price has not been made public, it was understood that Suntory bought Orangina for US$3.3 billion from the Blackstone Group and Lion Capital.

According to Campden FB on November 16, the acquisition is part of a wider strategy by company head and third-generation family member Nobutada Saji to expand overseas and gain access to the softdrink market in Europe.

Suntory currently enjoys a strong market share in Japan, but the business is looking to strengthen its international market share in light of contracting domestic markets.

The group paid more than EUR600 million (US$893.1 million) for Groupe Danone SA's Australian and New Zealand drinks business Frucor earlier this year.

Suntory is currently in merger talks with Tokyo-based counterpart Kirin Holdings Co., the completion of which would create a beverage giant with sales of Y3.8 trillion (US$40.9 billion) based on 2008 earnings.

CHINA AGRI-INDUSTRIES GETS SEVEN US$250 MILLION LOAN

Beijing, China: China Agri-Industries Holdings, one of the leading producers and suppliers of processed agricultural products in China, has secured US$250 million five-year loan from seven banks,

According to China Knowledge on November 18, these banks include BOC Hong Kong (Holdings) Ltd, Bank of Tokyo-Mitsubishi UFJ, Industrial and Commercial Bank of China (Asia), Standard Chartered, CITIC Ka Wah Bank, Mizuho and Banco Santander.

The loans will be used to fund its oilseeds processing projects and the company plans to set aside HK$2.1 billion (US$0.27 billion) to increase production capacity this year.

China Agri-Industries is a subsidiary of China National Cereals, Oils & Foodstuffs Import and Export Corp, or COFCO Group, the country's largest food manufacturer and trader.

CHINA KANGDA FOOD'S REVENUE DOWN 23.2 PERCENT

Beijing, China: China Kangda Food Co Ltd- primarily engaged in the processing, sales and distribution of chilled and frozen meat products- recorded a gross revenue of RMB 188 million (US$27.5 million) in the third quarter of this year, down 23.2 percent from a year earlier, China Knowledge reported on November 17.

According to the firm's latest financial report, its gross profit dived 44.6 percent from a year earlier to RMB 23.79 million in the same period. Profit attributable to equity holders were RMB 12.56 million, down 19.9 percent year on year, with earnings per share declining to 2.9 RMB cents.

During the first three quarters of this year, the firm's revenue dropped 24.1 percent from a year earlier to RMB 533.2 million. Gross profit was RMB 67.31 million, down 42.3 percent from RMB 116.61 million a year earlier.

TAIWAN SAYS NO TO U.S. GROUND BEEF, ORGANS

Taipei, Taiwan: US ground beef and internal organs are barred from entering Taiwan while importers and marketers are forced to slash price tags on other non-controversial US products in order to stem sales slide.

Early this month, the government eased the imports of US beef products to include internal organs, ground beef and those attached to bones as long as they meet hygiene and health standards, in accordance to a trade agreement newly reached with Washington.

However no importer has filed applications to bring in any of these products because of strong local public objections.

According to The China Post, the opposition Democratic Progressive Party (DPP) was unable to push through its plan to directly deny the entry of such US beef products while it refuse to review alternative proposals from the ruling Kuomintang.

The strong opposition towards relaxing US beef import rules are caused to the negative press reports on possible spread of the mad cow disease,

Most leading wholesale stores were forced to cut the prices of US imports by at least 10 to 20 percent in order to lure back customers. Other retailers and restaurants have to put up signs stressing they only sell or use beef products from other countries.

Local importers dismissed the possibility of import such products in the near future as current US beef sales declined sharply due the ongoing beef safety controversies.

TAIPEI’S FIRST MICHELIN EXPECTED TO SPUR COMPETITION

Taipei, Taiwan: The newly opened Michelin-starred restaurant branch in Taiwan is expected to spur intense competition in the restaurant industry, Taiwan News reported on November 11.

The three-star Michelin restaurant, L'Atelier de Joel Robuchon, was inaugurated by its head chef and founder, Joel Robuchon, at the Bellavita Shopping Center in Taipei City's Xinyi District on November 5.

Catering to the upmarket, the restaurant features rare and luxurious food where lunch and dinner courses range between NT$480 (US$15) and NT$2,000. An eight-course set meal carries a price tag of nearly NT$6,000.

Robuchon has operated restaurants in major international cities such as Hong Kong, and Las Vegas and has collected a record-breaking 24 Michelin stars.

Robuchon-run restaurants have gained Michelin recognition and if other restaurants want to set prices similar to Robuchon's "they will have to offer selections and services on par with the standards of the new restaurant," Chiu said.

Chiu Hsiang-ping- a local gourmet who sampled the food and wine at the new restaurant- predicted L'Atelier de Joel Robuchon will create a big impact on Taiwan’s restaurant scene, and Taiwanese employees at the new restaurant are likely to learn from their experience there.

CHINA RESOURCES TO BUY HYPERMART CHAIN, BREWERY

Hong Kong, China: China Resources Enterprise Holdings is to focus on the rapidly growing mainland consumer market through an asset swap with a major shareholder, in a deal valued at nearly HK$5 billion (US$0.65 billion), reported Reuters on October 29.

The deal will see the conglomerate transferring its interest in a textile division and 10 percent interest in each of the two container terminal operations in Hong Kong and China's Yantian, valued at HK$4.78 billion, to its major shareholder China Resources (Holdings) Co Ltd, in exchange for a hypermarket chain and a brewery in Shandong, valuing HK$4.94 billion.

Another HK$30 million in cash will be paid to complete the deal.

Executive director, Lai Nihium, said that the deal is part of the company's strategy to be a market leader in its core consumer business, namely retail, beverage, food processing and distribution.

According to Lai, the hypermarket chain, which has 75 stores operating in northern and central China, is expected to break even this year and may contribute to profit in the years ahead.

The major shareholder will also transfer a brewery to the company's brewery unit China Resources Snow Breweries Ltd in a move to expand the distribution network and production capacity in Shandong province.

The company is also said to be in talks with various potential buyers for its stake in a joint venture with Esprit.

7-ELEVEN’S FIRST ‘WORLD-WINE’ RELEASE

Dallas, US: US’s 7-Eleven, Inc. (SEI) and Seven-Eleven Japan (SEJ) are jointly introducing two proprietary wines into the market, a Chardonnay and a Cabernet Sauvignon; under the Yosemite Road label, as reported by Reuters on November 5.

These California wines are produced by The Wine Group exclusively for 7-Eleven stores and its parent company, Seven & I Holdings Co., Ltd. of Tokyo - a US$57.6 billion corporation.

Also participating in the launch and carrying the new beverages are; Ito-Yokado super- and hyper-markets, Northern Japan’s York Benimaru supermarkets, Shell Garden upscale grocery stores, Denny’s family restaurants, Seibu and Sogo department stores, and Seven & I Holdings’ retail outlets.

Suggested retail price for a standard 750 millilitre bottle is US$3.99 (US$4.99 in Florida because of state taxes) and 598 yen in Japan.

Leveraging its sheer scale and sourcing capabilities, 7-Eleven approached The Wine Group, the world’s third-largest wine producer, to craft two quality and affordably priced varietal wines. Experienced, award-winning wine-makers John Willumson and Jim McDonald were also tapped for the task.

Yosemite Road is currently a limited-edition wine that will be available while supplies last.

COSTCO STOPS CARRYING COKE PRODUCTS

Portland, US: Costco announced its decision to discontinue carrying Coca-Cola products in its stores nationwide due to a pricing dispute with the beverage maker, reported the Associated Press on November 16.

As Costco members pay an annual fee to shop for groceries as well as luxury items, the Washington-based company limits the mark-up on products it sells.

According to Costco’s statement on its website, Coca-Cola has not provide Costco with competitive pricing, in which they “may pass along the value our members deserve”.

Atlanta-based Coca-Cola Co. declined to comment on on-going negotiations but said Costco is an important customer that it is committed to working with "in a spirit of fairness."

F&B GIANTS BACK INITIATIVE TO CUT CARBON EMISSION

London, UK: Leading retailers and F&B companies are backing a new drive to cut manufacturers’ carbon emissions and energy costs by up to a third and shrink the carbon footprints of end products.

Tesco, Britvic and Highland Spring are among the major industry players supporting the Carbon Trust in its Industrial Energy Efficiency Accelerator (IEEA) scheme.

Trade bodies including the Food and Drink Federation (FDF) and Dairy UK have also joined.

According to FoodBizDaily.com, The F&B manufacturing industry is the largest manufacturing sector in the country and the £15 million (US$25.2 million) innovation programme is designed to cut carbon, reduce costs and make UK manufacturing more competitive.

It also aims to help businesses respond effectively to the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme, which comes into effect in April 2010,

David North, community and government director at Tesco, said: "We need precisely this sort of collaboration on carbon and cost savings in manufacturing if we are to achieve the low-carbon economy we need."

Stephen Reeson, FDF head of climate change and energy policy, welcomes the implementation of the IEEA scheme, saying the programme serves to “support initiatives in tackling sector specific energy issues.”

The FDF and its members will also explore opportunities for improved recycling of heat from industrial ovens and more energy efficient methods of producing confectionery.

FDA CRACKDOWNS ON CAFFEINATED ALCOHOLIC BEVERAGES

Washington, US: The Food and Drug Administration (FDA) has notified nearly 30 manufacturers of caffeine-infused malt beverages that the agency intends to investigate the safety and legality of their products.

These companies have 30 days to respond with studies, and other corroborating evidence, reported the Supermarket News on November 16.

The move comes a year after the nation's largest brewers, Anheuser-Busch and MillerCoors, voluntarily agreed to stop making their brands of caffeine-laced malt beverages, Tilt and Bud Extra, and Sparks.

The drinks — marketed primarily to college-aged youths — have been criticized for deceptive advertising, and for fostering a perception that they're safer to drink than regular malt beverages.

With these caffeinated alcoholic drinks getting increasingly popular among college students, it is imperative to investigate their potential health and safety implications, said Dr. Joshua Sharfstein, the FDA's principal deputy commissioner of food and drugs.

At issue is also whether caffeine can lawfully be added to alcoholic beverages without proper federal approval.

RUBY TUESDAY EXPANDS INTERNATIONALLY

Maryville, US: According to The Daily Times, the Maryville-based casual-dining chain has signed new franchise agreements to develop its flagship brand in the Middle East and the United Kingdom.

Development rights for three new Ruby Tuesdays in the eastern territories of Saudi Arabia have been granted to an affiliate of Daliya Al-Wataniya for General Trading and Contracting W.L.L., the current franchisee for the countries of Bahrain, Oman, Jordan and Lebanon.

Six additional restaurants are stated to open in Abu Dhabi by Bin Hendi Hospitality, the franchisee that now has the rights to open 18 Ruby Tuesday restaurants in all seven Emirate nations over the next five years.

In addition, the United Kingdom will welcome its first Ruby Tuesday, where five more restaurant openings are expected in the next four-and-a-half years.

Ruby Tuesday Inc. has also granted franchise rights for Wok Hay, an Asian-focused casual dining concept, in the Republic of Trinidad and Tobago and Chile.

RAISING COST OF CANADIAN’S HEALTH

Toronto, Canada: The cost of healthy eating rose more than seven percent in the past year, and that has Toronto's chief medical officer of health calling for more food help from the government for the poor.

A ‘Nutritious Food Basket’ (NFB) for a family of four in Toronto now costs CA$146.37 (US$ 139) per week, or CA$633.78 per month, reported CTV Toronto on November 16.

According to the city’s news release, the sum of average monthly rent (excluding other living expenses) and NFB will add up to CA$150 more than the monthly social assistance usually given to a Toronto family of four.

"We know there is a direct correlation between nutritious food and health, especially in the prevention of chronic diseases such as diabetes and heart disease," said Dr. David McKeown, Toronto's chief medical officer of health.

"When the price of healthy food remains out of reach for so many people, we are faced with a serious health threat that is within the power of government to prevent."

Ontario has launched a poverty reduction strategy, but the Liberal government has not raised social assistance rates enough to cover the cost of healthy food.

HALAL FOOD GOES MAINSTREAM

The Hague, Netherlands: The halal food business is set to grow rapidly in Europe as more supermarket chains target the sector, according to Reuters on November 18.

At the World Halal Forum in The Hague, Frits van Dijk, Executive Vice President of Nestle said that he expects the halal food industry in Europe to grow by 20 to 25 percent within the next decade.

The total European halal food market is currently valued at about US$66 billion, including meat, fresh food and packed food, while the global market is worth about US$634 billion.

Milk powder, cooking aids, seasoning and sauces are among the most popular halal products in Europe at the moment, while Nestle has recently started selling a range of meat-based and frozen food halal products in France, Van Dijk shared.

Nestle is the world's leading manufacturer of halal food, selling about 5.3 billion Swiss francs (US$5.23 billion) worth of halal food in 2008, about 5 percent of its annual revenue.

About 85 of Nestle's 456 factories globally are now halal-certified but Van Dijk said the different interpretations of halal standards around the world is a challenge for the industry.

FOOD SEED BANKS NEED $250 MILLION

London, UK: Seed banks need a further £$250 million (US$ 420 million) to preserve all varieties of food crops including those which may best survive future climate changes, the Global Crop Diversity Trust said.

The crop trust is the main supporter of a seed vault in the Arctic archipelago of Svalbard, intended as a global back-up for food crops, and says it needs more money to complete that project and support other, more accessible seed banks worldwide.

The trust joined 60 agricultural experts in a statement published at a Food Summit in Rome, highlighting the threat to food security posed by climate change, reported by Reuters on November 17.

Executive Director of the trust Cary Fowler said that wild relatives of cultivated crops are still unprotected even though they are a potent resource for climate change adaptation, and seed banks could preserve the crops that will emerge as the most resilient to future warming.

Fowler estimated Svalbard had copies of nearly half a million food crop varieties, representing most of the diversity of major crops, compared with 1 to 1.5 million distinct varieties of all food crops.

World leaders will be meeting again at a United Nations global warming summit in December at Copenhagen to address the issue of agriculture.

HERSHEY, FERRERO CONSIDERING CADBURY BID

Philadelphia, US & Milan, Italy: Chocolate makers Hershey and Ferrero are considering a joint bid for Cadbury that could help the British confectioner fend off a hostile takeover by Kraft Foods.

According to the Financial Times, talks between US-based Hershey and Italy’s Ferrero are still “very preliminary”.

Hershey has been more aggressive about pursuing a deal, but financial details have not been discussed and no offer has been made, the Wall Street Journal supplemented on November 17.

The talks are the strongest sign yet of a possible rival bid to Kraft’s US$16.7 billion offer, which Cadbury rejected and said was “derisory”.

It was understood that Cadbury had not been contacted by Ferrero but would consider any attractive offer.

Ferrero and Cadbury both declined to comment.

Although Cadbury’s assets are very attractive, “it doesn’t appear that either Ferrero or Hershey is in the financial position of taking on Cadbury all by themselves”, said Erin Swanson, an equity analyst with Morningstar.

Commenting on the possible Cadbury-Ferrero alliance, Nomura analyst Alex Smith shared that they will probably offer a potential offer similar to that of Kraft’s, at 820p per share.

However Cadbury shareholders can look forward to hold shares in a high-growth confectionery group – with a potentially retained UK listing – rather than being paid around 50 percent equity in a low-growth US-listed conglomerate, Nomura added.

Kraft’s cash and stock offer for Cadbury is closer to 726p per share.

LOBLAW REPORTS THIRD-QUARTER PROFIT OF $189M

Toronto, Canada: Canada's largest supermarket chain said it faces a highly competitive Christmas selling season and will continue to cut prices to boost sales.

However, Loblaw Cos. Ltd also said it managed to boost profit in its latest quarter despite falling inflation and "pressure" on volume sales.

The news drove Loblaw's share price 3.68 percent higher to CA$31.52 (US$30) on the Toronto Stock Exchange, The Star reported on November 17.

Basic net earnings for the third quarter rose 20.4 percent to CA$189 million, or 69 cents a share, the company said.

Sales declined 0.2 percent to CA$9.47 billion despite the positive impact of a shift in the calendar, which moved Thanksgiving into the quarter this year. The quarter ended October 10.

Same-store sales, considered a key measure of retail performance, fell 0.6 percent.

Thanksgiving added 0.5 percent to the quarter, while the acquisition of Asian supermarket chain T&T in September, added 0.2 percent.

These were partially offset by the sale late last year of Loblaw's food service business, which would have contributed 0.5 percent to third quarter sales.

Gross profit margin rose 80 basis points to 22.9 percent as the company benefited from improved efficiencies in buying and transportation and a better sales mix.

Internal retail food price inflation fell 3.5 percentage points, more than the Canadian Consumer Price Index for food and significantly more than in the second quarter, which hurt revenue.

The company also said volume sales fell during the quarter, not just dollar sales and it planned to focus this quarter on boosting unit volume. In addition, it plans to invest CA$1 billion this year in capital improvements, both in improving its food stores and computer system.

The company spent CA$25 million in the quarter on previously announced improvements to its computer systems, which lowered earnings by 6 cents a share.

Sales of food and drugs declined modestly, while sales of apparel, mainly its exclusive Joe Fresh brand, were moderate.

Sales of gasoline also declined significantly on lower gasoline prices.

Sales of general merchandise also fell significantly, as the company continues to exit that business in all but its largest superstores.

Canada's CA$76 billion a year grocery industry has become increasingly competitive since the entry two years ago by general merchandise giant Wal-Mart Canada Corp. into the fresh food business.