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kerry outwits costs with robust ingredients performance
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cost recovery and the on-going development of a stream-lined, customer-oriented working method led kerry's ingredients division towards a first half 2007, on both sides of the atlantic. the group, whose food ingredients division encompasses application-specific ingredients, flavours and bio-science businesses, reported total revenue of €2.33bn in the six months ended june 30 2007, representing an up-swing of 5.6 per cent. ingredients revenue was up 4.21 per cent to €1.61bn, or 5.9 per cent on a like-for-like basis, when exchange rates, acquisitions and disposals were taken into account. trading profits reached €130m. this growth was against a backdrop of energy-driven input cost inflation. director of corporate affairs frank hayes told foodnavigator.com that high energy costs in the last two years were the original catalyst, but that the impact has trickled down to changes in land use and increased use of biofuels. this, in turn, has driven up costs of key raw materials, including wheat and dairy products. kerry has implemented cost recovery programmes to combat this, including new efficiencies in processes, supply chain management, and passing on expenses. in the last case, however hayes said it is not possible to see immediate results since this is an on-going process that looks set to continue. in europe, this cost recovery lagged behind other markets. although "significant progress" was nonetheless said to have been achieved, the problem, hayes said, is that there is greater competition in europe in the major food categories. "it is harder to increase prices because of the intensity of competition," he said. kerry has also developed a "go-to-market" strategy, which involves a simplified structure so as to maximise selling opportunities across its customer base. the idea is to leverage strengths in science, and to provide innovative solutions and applications to match a customer's needs. this is not a formal restructuring, hayes said, but, put simply, "it means ten different business areas are not calling the same customers". amongst the best performing areas for ingredients in the six month reporting period was dairy, which bounced back following tricky market conditions in 2006 as demand increases and inventories reduced, leading to better returns for producers and processors. "kerry dairy ingredients has also continued to benefit from on-going development of milk proteins in the nutritional and functional food and beverage sectors," said the group in its report. in particular, the bio-science range of value-added dairy products, which aim to enhance taste, texture, shelf-life and convenience, performed well. bio-science was also instrumental in kerry's functional bakery activities - that is, enzymes, fermented ingredients and emulsifiers. fruit and sweet ingredients did well off the back of innovation and supply chain efficiencies, that led to better fruit applications for yoghurt and fruit smoothies. demand for nutritional offerings, especially in breakfast cereals and confectionery, also helped. the beverage sector benefited from expanded capacity at the menstrie yeast plant in scotland, said the report. mastertaste, kerry's flavours business, made "solid progress", particularly in the chilled savoury markets, in italian confectionery, and in natural solutions for the european beverage sector. in the us, mastertaste was given a push by new demand for foods with less salt and fewer calories - attributes that pose specific flavour issues since even the healthiest of foods will not enjoy consumer acceptance if they are lacking in the taste department. since the end of the reporting period mastertaste has tapped further into the salt/calorie reduction field, with the launch of new flavour modulation technology aimed to help reduce salt and sugar content in foods. it also recently announced the introduction of an extensive new range of botanical extracts for flavours. in the united states, kerry also drew attention to recovery of the dairy market and its role in lifting sales revenue. however the flip-side of this was slightly lower volume sales in the ice-cream sector, which was put down to raw material prices. other opportunities presented themselves in the form of trans-fat replacement, and enhanced nutritional offerings as a driver for ready-to-eat cereal and nutritional products. as for asia, sales revenue rose 14.3 per cent to €199m. highlights were the branded flavoured beverages and nutritional products for "growing diets" , especially in china. one detracting factor was the slow up of growth in the regional savoury markets, specially in australia.
Source :Food Ingredients Food Science - Additives, Flavours, Starch
Date :
4
September
2007
Category :
Codiments,Desserts,food additi
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a difficult funding climate resulted in more licensing and joint venture transactions than outright acquisitions in the health and nutrition sector in 2009, according to a new report focusing on m&a trends in the industry. the latest report on m&a activity in the health and nutrition sector from the us-based consultants, the jh chapman group, claims that a substantial increase in licensing and joint ventures from 21 in 2008 to 53 in 2009 is reflective of on-going interest for growth via unique technology and knowhow and lack of access to financing.
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irish food giant glanbia has turned in promising half year results with net earnings rising 26 per cent and the us food ingredients and nutritional products divisions performing strongly. glanbia predicted full-year earnings would rise 15 per cent year-on-year and analysts praised the strength of the results amid negative currency changes and sharply rising input costs such as energy and milk.
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kerry has reported continued development of its food ingredients businesses despite 2006 being a 'difficult' year for the food industry – and its nutrition and functional food ingredient systems played no small part. the global group, which has its headquarters in ireland, has reported overall sales of €4.6bn for the year ended december 31 – an increase of five per cent on the previous year.
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nutraingredients examines the omega-3 marketplace in the final instalment of a series that has scanned the scientific, regulatory and supply issues surrounding an ingredient that would appear to have everything. estimations vary as widely as the analysis, depending on which researcher or pundit you speak to, but omega-3 is unlikely to fade far from the public or business imagination because it has a sound grounding that is not possessed by all functional offerings: solid and voluminous scientific backing for health benefits ranging from heart and brain health to maternal and infant health, skin, joint and immune health and more a high level of public awareness and acceptance formulation diversity that means most foods and beverages are available for fortification with these facts banked, omega-3 has boomed and suppliers report buoyant sales to supplement manufacturers, food and beverage makers.
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a new review taking in animal, human populations, and clinical trials supports the potential role of soy protein to reduce cholesterol levels, and aid weight loss. according to the review, published recently in obesity reviews , the ingredients also have the added benefits of boosting bone health and aiding overall cardiovascular health. "overall, the current data suggest that soyfoods are as good as other protein sources for promoting weight loss and there is a suggestive body of evidence that soyfoods may confer additional benefits, but results must be carefully interpreted and additional evidence is needed before making firm conclusions concerning soyfoods and weight loss," wrote lead author mark cope from the university of alabama at birmingham.
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the rise in health and wellness, a 'sea of change' in the food industry, is creating challenges for formulators, but hydrocolloid companies can offer solutions, says cp kelco. "we see health and wellness creeping in to every aspect of the food industry," dr. steve bodicoat, marketing and innovations director for cp kelco, told foodnavigator.com at the recent fie in london.
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a range of development projects, from functional dairy proteins to cheddar cheese, will benefit from a multi-million euro investment in ireland's dairy industry, the country's government has announced. more than €114m of government money will be given to 19 different development projects across ireland's dairy industry as part of the government's agrivision 2015 action plan.
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Coca.Cola
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PEPSI
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Mcdonald
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Nestle
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Mars
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Baskin & Robins
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Nutrika
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Mumika
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Chika
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