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Stuck on innovation? Try an unlikely marriage.

Increasingly, it seems that the best way to come up with an innovative product that works is to marry heaven and earth. Especially with chocolates, we further blur the lines between “good” and “evil”.

The latest innovations saw the “sinful” chocolate become the doctor’s friend in Stollwerck’s Pharmacy chocolate, added with above average amounts of anti oxidants. Chocolates with organic sprouted flax by dietician Dina Khader made the product 100 percent organic...

Archives - June/July 2009

Industry News

Antibiotic-free Chickens In Singapore

Singapore: A healthy, antibiotic-free option for fresh chicken is now available in Singapore’s supermarkets. Branded under the name Sakura, these chickens are farmed using a proprietary Japanese technology through which no antibiotics and growth-promoters are used, the meat has less fat, a ‘cleaner’ smell and sweeter taste than ‘regular’ chicken. It is now available at NTUC Fairprice.

The chicken has now made its way into restaurants nationwide, including the Tung Luk Group (Mama Leong’s Chicken Rice Recipe at Space@Humble House) and Friends@Jelita. Friends co-owner Thomas Chiam claims that the chicken’s plump, tender and silky texture pairs well with luxury ingredients like truffles or morels.

Singaporeans Dine Out Less

Singapore: To tighten their belts, more Singaporeans now spend their money on fresh food and groceries, rather than eating out, the Straits Times reported, quoting a ShopperTrends report released by The Nielsen Company, Singapore.

Monthly household expenditure increased by 14 percent, partly driven by higher food prices and as more people cook at home as a belt-tightening stance, according to Ooi Pin Pin, Associate Director of Retailer Services. As a result, fresh food spending grew by 15 percent, with the biggest jump being reflected among the high-income households.

The latest Nielsen Global Online Consumer survey shows, on the other hand, that seven in 10 Singaporeans have changed their spending habits in order to save more. Up to 74 percent of those surveyed buy only what they need while 37 percent say they will buy the same products but in smaller quantities. Chocolates, carbonated soft drinks and savoury snack foods are groups that consumers buy lesser of now, as compared to increasing purchases of staples and dairy items.

Swine Flu Worries NY Restaurants

New York, US: New York’s restaurateurs are beginning to fear that the current swine flu pandemic might discourage consumers from eating pork. The city has recently, before the outbreak, seen an influx of restaurants that specialise in porcine dishes, given its then growing popularity among food reviewers.

Crain’s New York Business online reported that at least one establishment specialised in pork dishes has felt a slight pinch. “A bit of a drop” in business was recorded, said Matt Lindemulder, co-owner of Porchetta. The main reason is because not many people understood that properly cooked meat is safe to consume, and swine flu is not transmitted between humans and pigs.

Some other restaurants have been preparing their staff to answer customers’ questions about the disease and the restaurant’s food. Still others, who source responsibly for pork, such as those that are pasture risen, hope that the current circumstances put them in an advantage.

Nestle And Gov’t Agencies To Help SMEs

Selangor, Malaysia: Nestle (Malaysia) has signed a memorandum of understanding with the Halal Industry Development Corporation (HDC) and the National Small-Medium Enterprise Council (Nasmec) to promote the growth of small and medium enterprises in the food and beverages industry.

Under the new agreement, an e-learning online portal will provide a one-stop education, reference and solution centre for SMEs, and workshops and seminars will be offered to upgrade their services and performance in compliance with international quality standards.

The council will be responsible for the facilitation of the e-learning portal where it will offer online training, while HDC will provide Halal certification and requirements.

Nestle Malaysia managing director Sullivan O’Carroll said the two biggest weaknesses in local SMEs are the lack of strong financial backing and product branding. The MOU, with these three parties, can help in these areas.

HDC CEO Datuk Seri Jamil Bidin said Halal primarily means the item is clean and safe for all, and not that it is just suitable for Muslims. “We welcome every SME in Malaysia regardless of race or religion to come join our programme, and we urge local SMEs to use our services to help them gain access to the global Muslim market,” he said to Sun2Surf news online.

Under the deal, Nestle will support the promotion and funding of the mentoring programme. The Food Industry Mentoring programme jointly organised by Nestlé and the council since 1999, is now renamed the Nestle-Nasmec-HDC F&B Mentoring Programme. Nestle Malaysia does this despite the difficult financial climate.

Fried Food Is Here To Stay

Illinois, US: Despite the trend for healthy living, consumers still want their fried food. According to the new Future of Fried Foods Study, the billions of fried food servings ordered each year by Americans are driven by value, craveability and broad appeal. The QSR magazine quoted Technomic's latest consumer survey, which reportedly shows that the top consumer associations with fried foods include:

  • 89 percent - "tasty"
  • 86 percent - "satisfying"
  • 83 percent - "filling"
  • 80 percent - "something I crave"
  • 77 percent - "comforting"
  • 71 percent - "good value"

As health conscious eating habits increase, the growth rates of fried foods will decline over the next three years, said the Technomic survey. However, this decline will not differ substantially from that of the foodservice industry as a whole.

Other findings from the study that indicate fried foods will hold their own include:

  • Impulse is a major driver of fried food sales. About one in five consumers (21 percent) say that their purchases of fried food at restaurants are usually made on impulse.
  • About one-third of respondents (32 percent) like to order fried foods at restaurants because they do not normally prepare them at home.

"We don't foresee a large drop in fried food sales because they are widely available and are frequently bundled with value meal purchases," says Bob Goldin, executive vice president at Technomic. "Fried foods are offered at a reasonable price point that has strong appeal across multiple consumer groups. The crispy texture and craveable flavour is something that they cannot duplicate at home."

The Future of Fried Foods Study provides in-depth analysis of over 1,500 interviews with US consumers and looks at data by segment based on restaurant usage, demographics, and attitudes toward fried food. Menu trend analysis for the 250 largest full-service chain restaurants, limited-service chains, and emerging chains was based on Technomic's proprietary MenuMonitor database and primary and secondary industry data.

2 Giants In A Coffee World

Illinois, US: One of the world’s modern coffee culture epitomes and another, a fast food chain giant, are increasingly entwined in a coffee war, according to a report on the Wall Street Journal. Starbucks Corp and McDonald’s Corp have launched national marketing campaigns to lure coffee drinkers in the US.

A newcomer to the targeted coffee-café scene, McDonald's aims to win over consumers with its fancy yet more affordable McCafé mochas, lattes and cappuccinos. They are also marketed on TV, radio, the Internet and in print as a great way to brighten up days. One commercial shows a disgruntled woman waiting at a bus stop, while a man holding a McCafé mocha smiles and turns his commute into a commuté (pronounced commute-ay, to rhyme with McCafé). The advertisement then continues that McCafé makes a better day ‘possiblé’.

Starbucks, on the other hand, aims to convince consumers that not all kinds of coffee are equal, and it uses premium coffee beans and offers additional quality assurance. A string of newspaper advertisements were in place, persuading consumers not to settle for cheaper alternatives.

On the other hand, previous marketing efforts by McCafe franchisees have straightforwardly dismissed that paying US$4 for a cup of coffee is ridiculous. McDonald's espresso-based coffee drinks typically range from US$2.29 to US$3.29. By contrast, a caffè mocha at a Starbucks in Chicago ranges from US$3.10 to US$3.95. McDonald's USA President Don Thompson said the company told the franchisees "'That's not the way we do it,' and they pulled the billboard down."

Starbucks’ earnings sank by 77 percent in the fiscal second quarter, as restructuring and store closures are ongoing. McDonald’s profits, conversely, rose by four percent in its latest quarter.

Flexible Packaging Closely Linked To Export Growth

Singapore: Packaging is vital for export as it protects the contents and ensures that quality products reach the consumer. Growth in the flexible plastic packaging market for food is a function of the growth of the food and food processing industry and growth in food exports. Countries such as Malaysia and Thailand have strengthened their position as Halal food exporters and have gained a share of the export market in the Middle East, thereby, enhancing growth in this market.

New analysis from Frost & Sullivan, Southeast Asia Plastic Flexible Packaging Market for Food, finds that the market earned revenues of over US$1.41 billion in 2008 and estimates it to reach US$2.22 billion in 2015. This is due to robust growth in the food processing sector and the rise in demand for food exports as well as an increase in the affluence of the urban population who tend to spend more on packaged food. The countries covered in this research service are Thailand, Indonesia, Malaysia, the Philippines, and Singapore.

Increasingly, rigid packaging is being replaced by flexible packaging. The traditional benefits of rigid packaging can now be achieved with flexible packaging with the added advantages of lower cost and greater flexibility. Stand-up pouches and re-closable packs offer merchandizing advantages and other marketing benefits to fast-moving consumer goods (FMCG) manufacturers, similar to other rigid forms of packaging.
Flexible pouches with re-sealable closures consume lower energy and emit less greenhouse gases than rigid packaging. This trend of favouring flexible packaging over rigid packaging acts as a key driver for growth.

Growth is likely to be driven by the rise in demand for packaged food from the affluent, urban middle-class as well as the intensifying need to meet the changing lifestyles of customers. The growth in demand for exports is another factor enhancing the food industry, consequently driving the food packaging industry. Changes in technology and the replacement of rigid packaging with flexible packaging also act as catalysts for market expansion.

The highly volatile price of raw materials is a primary concern for packaging manufacturers. Heightened environmental concerns also pose a challenge, motivating packaging manufacturers to devise improved packaging solutions. This may lead to more widespread usage of bio-plastics in the future. In Southeast Asia, bio-plastics are currently perceived as a niche market, while being beset by cost and performance issues.

India To Raise Level Of Processed Food

New Delhi, India: India requires a whopping investment of 28 billion dollars to raise the food processing level to 8-10 per cent, a senior government official said on Monday.

To raise India’s food processing levels to eight to 10 percent, the government needs to invest US$28 billion, said Ajit Kumar, Joint Secretary in Food Processing Industries Ministry. There are aims to increase the processing of perishable produce to five percent and by 2015 decrease post-harvest losses to 20 percent.

Kumar referred to the current level of food processing to be at five percent, according to The Economic Times. He added that the level of processing is 90 percent in case of cereals while only 2.2 per cent of fruit and vegetables produced in the country is processed.

Since five years ago, the industry has received about US$15 billion on foreign direct investment. While the sector is growing rapidly, there is a lack of skilled labour and India requires 3.4 million of them, Kumar revealed.

In a separate news, the Press Trust of India reported that the UPA government will fulfil the Congress promise of providing rice and wheat at cheap rates through ration shops in the wake of record procurement by the state agencies, Agriculture and Food Minister Sharad Pawar said.

A minimum of 25kg of rice or wheat will be provided to the impoverished at INR 3 per kg. Government bodies, mainly the Food Corporation of India, has purchased a record 23.3 million tonnes

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