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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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from heart-friendly margarines to sugary cereals that strengthen bones, once-demonized foods are being spiked with nutrients to give them a healthier glow — and consumers are biting, even on some that are little more than dressed-up junk food.a report released thursday finds that even in a weak economy, people will pay a premium for products seen as preventing a health problem or providing a good alternative to sodas and empty-calorie snacks.
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an avalanche of scientific evidence may have come down in support of the health benefits of vitamin d but so far, with the exception of the us, this buzz has yet to translate into a market boom. over the past few years scientists have uncovered evidence suggesting that vitamin d is a lot more than just a simple bone health ingredient. studies over the past 10 years have highlighted diverse benefits related to fall prevention and neuromuscular function, immunity, insulin response, and gut health.
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london—frost & sullivan presented its 2008 global food and beverage prebiotics innovation award to marigot ltd. and gtc nutrition for their partnership product concept calcilife™. the prebiotic mineral-based blend combines aquamin® calcified minerals from cork, ireland-based marigot, and nutraflora® prebiotic short-chain fructooligosaccharides (fos) from golden, colo.-based gtc nutrition. deborah cross, an industry analyst with frost & sullivan, said, “the companies have answered the needs of a growing consumer demographic by innovatively targeting nutrition and health within the developing global functional food ingredients market with their science-based combination product.
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early sales figures for densia yoghurt suggest that danone has found a winning niche in the bone health market. danone launched densia in august on the spanish market and early sales indicators supplied by mintel suggest the yoghurt is performing well. carla ogeia lewis, trends and innovation consultant at mintel, told nutra ingredients that densia is enjoying sales numbers that are well above average for the yoghurt category.
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the market for low-fat and reduced-sugar foods rose 6.7 per cent in value in 2007, moving up from a 4.7 per cent rise in 2006, claims a new report from uk market researcher key note. but despite the growth, the researchers anticipate a slow down in the near future as consumers switch to all-encompassing products that are staked on a broader health platform. "this is in large part due to the current trend of consumers being less interested in products sold on a slimming or diet platform and opting for those with wider health benefits," say the report authors.
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