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Your Professional Guide to Ingredients and Processing

MARCH-APRIL 2016www.asiafoodjournal.comjjjj

ISSN 2010-4200 MCI (P) 105/06/2015 PPS1595/07/2013 (022965)

5 Secrets in Quality Chocolate Milk

PackagingThe Preferred Packaging Material

Food SafetySupply Chain Transparency

Ingredients Optimising Digestive Health

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Editor’sNote

ISSN 2010-4200

Maisie LohEditor, Asia Food Journal

Adding Natural to Labels The trend towards natural nutrition continues its upward momentum as consumers lean towards food with clean labels promising natural ingredients without unnatural additives. All around the world, consumers seek out clean labels promising to fulfi l health and lifestyle needs despite not fully understanding what the claim natural means. Their awareness towards choosing healthy food has limited their buying decisions to choosing mostly foods with natural ingredients on labels.

Most people believe a clean label means that packaged and processed foods have no genetically modifi ed organisms, no artifi cial ingredients or colours, chemicals and pesticides. This is not necessarily true as the word ‘natural’ has not been regulated by any major regulatory bodies.

Despite the range of interpretation by consumers on the meaning of natural when it comes to purchasing food, food and beverage producers are rushing to meet this nutritional food trend and consumers’ needs, using products and ingredients that are from natural sources or else intensely tested by regulatory bodies to meet health and safety standards.

While the term natural has been the buzzword in the food purchasing market over the last few years, manufacturers are mindful that no matter how natural the source of their ingredients, food still has to look fresh and colourful and satisfy mouthfeel to attract consumers.

Although the confusion and lack of regulation on the term ‘natural’ used on food labels have opened up many opportunities and changes in the manufacturing industry, food and beverage producers are still mindful of getting global certifi cation for their products so as to reach the hands of consumers. Besides sourcing for natural ingredients to replace artifi cial additives, manufacturers are also trending towards keeping to stringent standards in food safety and quality.

The advent of tough legislations in major food producing markets has skewed manufacturers’ concern towards product and consumer safety, despite having to keep their focus on productivity, profi t and product appeal.

As new editor replacing outgoing editor Denice Cabel, I believe the road to change in the food industry towards nutritious food is an exciting one, and I am happy to be a part of the journey witnessing this change.

IN THIS ISSUE

2 Asia Food Journal March-April 2016

ContentsMARCH-APRIL 2016

INGREDIENTSCOLOURING AND FIBRESPG 8

FOOD SAFETYCERTIFICATIONSPG 22

PACKAGINGMATERIALS

PG 16

FRESH FOR THE FACTORY

LATEST PRODUCTS IN THE MARKET

PG 28

IN EVERY ISSUE01 EDITOR’S NOTE & SALES OFFICES03 GRAB & GO28 FRESH FOR THE FACTORY

IN FOCUS6 Frutarom: Buy, Integrate, Innovate Asia Food Journal’s Denice Cabel interviewed the top management of Futarom in Israel on the company’s expansion.

12 5 Secrets in Quality Chocolate Milk Best-practice chocolate or enriched milk drinks don’t get sedimental or show creaming during their shelf-life-and they owe it to a group of networks that work closely together.

18 The Appeal of Digital Printing Exploring the use of digital print packaging to offer a personalized brand experience for consumers while reducing environmental impact.

INGREDIENTS8 The trend towards naturalness Global survey provides insights into consumer needs.

10 Optimising Digestive Health Positive health benefi ts of prebiotic fi bres without compromising mouthfeel.

PACKAGING16 The Preferred Packaging Material Through smart design and technological advances, beverage producers are improving shelf-life, sustainability and much more.

20 Health and Wellness: Food Packaging Consumer brands turn their focus on packaging ingredients for ensured health and wellness.

FOOD SAFETY22 Food Safety Certifi cation to know Global Certifi cation is pertinent, as food producers and sellers focus on quality and safety.

26 Benefi ts of Supply Chain Transparency Supply chain transparency contributes to food safety, labour protection and prevents fraud.

IN FOCUSChocolate MilkPG 12


Industry UpdatesBLOMMER CHOCOLATE ACQUIRES PLANT IN CHINA

Blommer Chocolate Company, a cocoa processor and ingredient chocolate supplier in North America, has acquired a manufacturing plant in China’s Jinshan district near Shanghai.The acquisition of the Jinshan facility is part of Blommer’s estimated US$40 million investment in a fully integrated bean processing and chocolate manufacturing facility, which will support the growing demand both in China and the Asian region.The plant will provide critical ingredient supply chain solutions for Blommer’s existing multinational branded customers and the expanding number of local Chinese companies entering the market.In the last 18 months, this multi-phase initiative has increased Blommer’s chocolate and compound capacity by over 70 million pounds in North America. Current projects will add an additional 70 million pounds of capacity over the next 12 months.Blommer’s growth plan is supported by a signifi cant investment in research and development, which has nearly tripled over the last 5 years, bringing enhanced capabilities in product and process technology.Blommer also has expanded its presence in West Africa and South America both directly and through strategic alliances to ensure a reliable and competitive supply of both sustainable and conventional cocoa beans and products. This includes the recently opened offi ce in Abidjan, Ivory Coast and expansion of on-the-ground staff there to manage its growing commercial and sustainability initiatives in the region.

Grab&Go

MARKET TREND

A third of consumers remain in the dark over what "clean label" means “Clean label” continues to be the on-trend FMCG buzzword according to the latest survey by Canadean. The latest consumer research from Canadean reveals a lack of consensus on what “clean” really means.

Caribou Coffee and Mars are the latest big players to embrace clean labelling, with the former committed to removing all artifi cial fl avourings by the end of 2016, while Mars will phase out artifi cial colours from its food and drinks globally over the next fi ve years. But with ambiguity surrounding the term, how much infl uence will such promises have on consumers?

According to Melanie Felgate, senior consumer insight analyst for Canadean, the term resonates differently among consumers globally. A third of consumers, about 34 percent, do not have any understanding of what it means at all. This could refl ect the fact that “clean label” is more widely used in the industry than as a marketing claim in itself. The ‘clean’ movement has also gained mainstream traction as refl ected by the popularity of social media hashtags such as #cleaneating.

Canadean’s fourth quarter 2015 global survey revealed consumers who understood the “clean label” most likely interpreted the meaning as products being natural and chemical free or organic. A smaller proportion of consumers also associates the term with other attributes such as being allergen-free.

Felgate adds that the “clean label” term may resonate with consumers as an indication that the product is free from chemicals and is natural. But a signifi cant proportion of consumers do not understand the term or interpret it to mean, for example, that a product could be gluten free, suggests that brands should continue to place their marketing focus on core benefi ts, rather than simply promoting their products as 'clean.'"

MARKET TREND

Arla Reports on its Responsibility ProgressDespite increased production Arla decreased its climate impact by 16 per cent compared to the level in 2005, and the company maintains its goal of decreasing CO2 emissions by 25 per cent in 2020.

Milk’s health benefi ts and farmer-ownership are two main agendas in Arla’s dialogue with the outside world. These and other themes are included in Arla’s new CSR report for 2015, which also includes assessments by four external experts.

As a responsible food producer Arla intends to play an active role in addressing the global food challenges and in fulfi lling the United Nation’s Sustainable Development Goals that were presented last year.

“In 2050, there will be nine billion people on this planet. When you think about it, you can either worry about it – or you can start acting,” writes CEO Peder Tuborgh in his foreword of Arla’s new 2015 responsibility report.

Arla’s progress in relation to corporate responsibility is reported in the document and it shows that Arla continues to develop in a sustainable way. Despite increased production Arla decreased its climate impact by 16 per cent compared to the level in 2005, and the company maintains its goal of decreasing CO2 emissions by 25 per cent in 2020.

As a new element in the report, an external view is given by four experts who comment on Arla’s ability to take on a corporate responsibility.

Majken Schultz, Professor of Management at Copenhagen Business School and International Research Fellow at the Centre for Corporate Reputation at Oxford University, refl ects on Arla’s actions within a range of areas, including transparency around governance structure and citizenship.

Bruce German, who is Professor and Director of Foods for Health Institute at UC Davis in California, and a leader in dairy research, gives his take on what Arla can do to help consumers live healthier lives.

Lena Tham, Senior Advisor at WWF Sweden, who has been Arla’s main contact person in WWF for several years, assesses Arla’s progress when it comes to bio-diversity and sourcing responsible soy in cow feed.

Allan Lerberg Jørgensen, Department Director for Human Rights and Development at the Danish Institute for Human Rights, comments on Arla’s work to uphold human rights both at home and on distant markets in developing countries.


Industry UpdatesARLA FOODS TO INVEST IN NIGERIAN DAIRY MARKET

Arla has officially committed to investing in local dairy production in Nigeria and to sharing knowledge about agricultural practices and other aspects of dairy production that will improve the local raw milk production and quality. The purpose is to contribute to a sustainable dairy sector development and growth in Nigeria.In 2015, Arla made a comprehensive investigation in Nigeria to assess how its increasing business activities in Nigeria impact the local dairy sector and if there are any negative effects on human rights of the local dairy farmers. Arla concluded in its report that the dairy sector in Nigeria is suffering from a number of barriers and that Arla’s presence in the market will be linked to a continuous underdevelopment of the Nigerian dairy sector if looked at in a broader perspective. In order to mitigate potential negative impact in the long run, Arla has decided to engage in the development of the local dairy value chain.In Arla’s new Strategy 2020 the company expects to triple its revenue from consumer sales in Sub-Saharan Africa by 2020 (most of which is expected to come in Nigeria and West Africa). Arla’s revenue in the region in 2015 was 75 million euro.

MARKET TREND

Trends to watch in fast moving consumer goods Health, wellness, technology, convenience, and indulgence are all projected to be key innovation platforms this year.

Protein has been a superstar in the food industry for some time, but storm clouds are gathering over animal-based protein. Some of the strongest support for plant protein is coming from an unlikely source – vegetarian athletes – a group that could help link plant protein with athletic prowess.

Health villains tend to come and go in the food industry, and things are looking up for one of the industry's biggest villains in recent decades – fat. Fat is actually being promoted as a health-enhancing ingredient in categories you would not expect, like bottled water. FATwater functional water, a recent US launch, contains medium-chain triglycerides (MCTs) derived from coconut oil.

Filling a gap between overly sweet "alcopops" and more sophisticated drinks like beer, wine, or spirits, "hard sodas" will be a trend to watch this year.

Genetically modifi ed organisms (GMOs) have been a magnet for controversy since their inception. Longer shelf life, reduced food waste, and more effi cient use of natural resources collectively make an increasingly "green" case for new-generation GMOs.

Look out for consumers to be more sweet on sour. Sour fl avors could be the next big fl avor trend in foods and beverages, with sour fl avors breaking out in everything from candy and beer to vegetables.

Consumers are hard-wired to indulge; they are also hard wired to feel guilty about indulging. Now there is a solution to that conundrum. Adding healthful, "better for you" iconic health ingredients to indulgent foods is a new trend that is gaining momentum.

MARKET TREND

Global Citrus Flavors Market to Reach US$13M by 2025 The global citrus fl avors market, in terms of value, is projected to grow from US$ 7,855.9 million in 2014 to US$ 13,182.0 million by 2025 (CAGR of 4.9%), regarding which Future Market Insights (FMI) offers vital insights in detail. In terms of volume, the global citrus fl avors market is projected to register a CAGR of 1.7% during the forecast period.

On the basis of application, the market has been segmented into beverages, savory, confectionery and dairy. The beverages segment is expected to account for 31.6% share of the global citrus fl avours market by 2015 end, and is expected to register healthy CAGR of 5.4% in terms of value over the forecast period. In terms of volume, the segment is expected to record a CAGR of 1.7% during the forecast period. Beverages and dairy are expected to contribute maximum revenues over the forecast period. Furthermore, advanced research and development is expected to fuel market growth during the forecast period. The confectionery and savoury segment is expected to record a CAGR of 3.9% and 3.6% respectively, in terms of value and CAGR of 1.9% and 1.6% respectively, in terms of volume during the forecast period.

Growth of the global citrus fl avours market is mainly driven by increasing consumer awareness and extensive research and development for manufacturing high quality citrus fl avours. To satisfy consumer demand for regionally customised citrus fl avours, manufacturers are implementation advanced technologies, this is another factor boosting the markets growth. Finally, rising disposable incomes are enable the consumer to spend freely, this too promotes the growth of the citrus fl avours market. However, demand for artifi cial citrus fl avours is showing a downward trend owing to the rising awareness among consumers about the adverse effects of consumption of chemicals added to food products for imparting citrus fl avours, on the health of the consumers. This, in turn is leading to the decrease in the overall demand for artifi cial citrus fl avours across the globe.

The report investigates trends driving each segment and offers analysis and insights about the potential of the citrus fl avours market in specifi c regions. North America is expected to dominate the citrus fl avours market with 29.8% market share by the end of 2015, and is projected to remain dominant by 2025. North America and Western Europe are collectively expected to account for over 54% of the total citrus market share in terms of value by end of 2015. Western Europe and Latin America are projected to register the highest CAGR in terms of value and volume respectively, between 2015 and 2025.In terms of volume, Latin America is expected to witness the fastest CAGR, since is Brazil is the largest production centre for citrus releasing fruits. Companies in the citrus fl avours market are continuously developing imitations of natural citrus fl avors, and extending its application across various product categories. Moreover, companies are undertaking technological upgradation, while integrating all processes in order to meet the changing manufacturing needs.


Viscofi ll

#GermanBlingBling#Viscofi ll

We do more.

DISCOVERY

Singapore Food Scientists Create Diabetic-friendly BreadA team of food scientists from the National University of Singapore (NUS) has formulated a recipe for making healthier bread by adding a natural plant pigment, called anthocyanin, extracted from black rice. This is the fi rst study where anthocyanin extract has been fortifi ed into a bread product, and the fi ndings open up new possibilities of creating healthier, diabetic-friendly food products.

Most bread contain a high amount of rapidly digestible starch, and hence many of them have a high glycemic index. Food high on the glycemic index are rapidly digested and absorbed into the bloodstream quickly, causing a sharp increase in blood sugar levels and making them unsuitable for diabetic patients. The excessive consumption of bread could increase the risk of overweight and obesity, and their associated diseases, such as Type II diabetes.

Anthocyanins belong to the group of fl avonoids that are naturally occurring pigments in fruits and vegetables, and are responsible for the orange, red, violet, and blue colours observed in nature. Fruits, such as blueberries, grapes, blackberries, as well as grains and vegetables like black rice and purple sweet potatoes, are naturally rich in anthocyanins. Anthocyanins are rich in antioxidant properties and may help prevent cardiovascular and neurological diseases, cancer, and infl ammation. Anthocyanins are also known to play a role in controlling obesity and diabetes as they can inhibit digestive enzymes and hence reducing blood glucose levels.

The NUS team, led by Professor Zhou Weibiao, found that digestion rates of the anthocyanin-fortifi ed bread reduced by 12.8 per cent, when 1 per cent of anthocyanin extract from black rice was added into the bread dough and baked at the optimal condition of 200 degree Celsius for 8 minutes. The digestion rate dropped further to 20.5 per cent, when the amount of anthocyanin extract increased to 4 per cent.

“We hope to conduct further studies to incorporate anthocyanins into other food items, such as biscuits. Our team is also keen to explore opportunities to work with industry partners to introduce the anthocyanin-fortifi ed bread to the market,” Prof Zhou said.

MARKET TREND

Food Encapsulation Market Growth Opportunities The global food encapsulation market is segmented according to major application into dairy, beverages, bakery, confectionery, dietary supplements, functional food, animal nutrition and others. Of all the aforesaid application segments, the dietary supplements segment is expected to account for around 25.6% share of the overall food encapsulation market by 2020. By core material, the global food encapsulation market is segmented into fl avoring agents, lipids, vitamins and minerals, antioxidants, acids, bases, and buffers, amino acids and peptides, enzymes and microorganisms and others. Among these, fl avoring agents is expected to record a CAGR of 10.5% during the forecast period. Increasing R&D by companies on the development of clean label products with micro-encapsulation technology comprising no preservatives, added antioxidants and gelatin are expected to drive the demand for food encapsulation in the global market during the forecast period. Region-wise, North America is expected to dominate the global food encapsulation market with a market share of 25.6% by 2020. However, Asia Pacifi c excluding Japan is expected to record highest CAGR of 10.2% during the forecast period. The growth is attributed to new product launches, geographical expansion by companies, and increasing demand for functional and fortifi ed food products among consumers.


INTERVIEW

Asia Food Journal’s Denice Cabel interviewed Ori Yehudai, CEO of Frutarom, and Yoni Glickman, President Natural Product Solutions, at the company’s headquarters in Israel on Frutarom’s expansion

Frutarom: Buy, Integrate, Innovate

FLAVORS AND NUTRACEUTICALS

There is a huge conversation on the usage of ‘natural’ in food labels, there is even some talk about the USFDA getting involved with fi nally bringing regulatory

defi nitions.

What are your thoughts on this? Yehudai: We have been waiting for that for 20 years. Having regulatory defi nitions will be benefi cial to us because as you may know, there are so many companies offering natural or healthy food products which have no research or proof to back up their claims. I am not naming anybody, but there are many companies that come up with claims that have nothing to do with truth. Frutarom is running a Swiss GMP pharmaceutical company from the lake of Zurich. All our products meet all standards of GRAS, etc.

In the US and Europe, you see so many declarations made even by big companies. People are saying ‘natural in, natural out’ – well, I don't think so. For Frutarom, purely natural means going back to basics – like taking the leaves, extracting with water and alcohol, and then measuring and standardizing the active ingredients. I believe that is really natural because you do not add anything. Then there are more questionable products that underwent a lot of processes and reactions, and you are coming to grey areas. We welcome any regulation by the USFDA because there are products that are not really giving the right benefi ts that consumers want. This also means fewer competitors for us.

Are you as a company participating in that process?Yehudai: We do some, but, to be honest, we are not very active in the last few years. We were unfortunately too busy, so we allowed our other competitors to do that. For me, any regulation that will force declarations and [eliminate] gray areas are welcome because we don't play in that game.

Glickman: There is one more thing that I would like to stress. One of the big issues of nutraceuticals and health ingredients is that they normally do not taste great. In fact, many of them taste very bad, so we hide them in a pill. Taste is one of the issues that we have in the industry. The taste must be enough for a product to be a success, and that’s what we bring to the table. We understand the healthy side of ingredients, how to extract

them, standardize them and undergo clinical trials when necessary. But the real beauty of the situation is that we can take the nutrients and work it into the food matrix in a way that we can really make a tasty product. At the end of the day, it is about humans.

Frutarom has plenty of application labs around the world where we create products that taste great and have a lot of health benefi ts – vitamins, minerals or whatever we put in the fortifi cation side. We have the ability to bring that combination to customers, and I think that is unique. A lot of the other companies come up with a good product and have a great clinical study to back it up, but the product ends up staying in the realm of a tablet

or pill because it is simply not palatable. That's the differentiating factor. We start in the pill and will end up somewhere in the food world.

Like Frutarom, there seem to be a lot of Israeli companies that have invested in the research of algae-based technologies. Do you think that this is going to be a big area of innovation in the future?

Yehudai: I think it is one of the many. I have read articles for 50 years about algae as a new source of protein, and I think this is very important. But then we innovate in many areas, such as botanicals, colors, fl avors and so on. Frutarom is a diversifi ed company. We do not have any customer, product or raw material that is more than 1 percent of the total. We spend a lot on R&D and work with universities, external R&D centers, and startups. Sometimes Frutarom is even a vehicle used by professors and startups to bring concepts to real products.

Can you tell us more about your research centers and application labs?Yehudai: We have labs in more than 40 countries. When you deal with fl avors, you have to tailor make a solution for a specifi c product in the right regulation, the right taste, and so on. That's the strength of Frutarom, and then we build on that in a much broader product proposition.

Glickman: Customer can come to our application labs and say to us, “I want to launch a beverage which is made of totally natural ingredients, and I want it to be marketed, for example, on an energy platform.” What we can do is give them the natural fl avor

Ori Yehudai, CEO, Frutarom


and color on an energy platform through different fortifi cations in terms of add-on ingredients, and then we tie up the whole system. You want to walk in with a beverage; you don't want to walk in with a pharmaceutical product. At the end of the day, it is the customers that make a decision and want to get the whole solution. That is a signifi cant difference from what everyone else is doing.

Aren’t other fl avor companies doing the same thing?Yehudai: I don't like to talk about competitors, but I don't think they are producing real healthy ingredients or nutraceuticals. We are able to add that into a proposition in our applications labs. What I am saying is that we do not buy health ingredients from one company and buy fl avor from another, and then try to combine them. We develop a health ingredient and through clinical studies, put it together with fl avors. That is something others are not doing, for example.

Frutarom has quite a big appetite for acquisitions. Do you plan to acquire more companies in the next few years?Yehudai: Absolutely yes. We want to do much more in the US as well as in emerging markets for our fl avor products. We haven’t done acquisitions in the natural ingredient area for quite a few years until last year, and under a very clear strategy that we want to grow the natural ingredients portfolio much faster, and not only just fl avors. You see that we made many of the acquisitions in that area; no doubt that we have a very strong pipeline with at least 20 potential acquisitions that we are discussing right now, as we speak. We will implement more acquisitions this year and going forward. That is in a way our bread and butter. We want to have more products, more innovations, and more capabilities.

Frutarom recently bought Inventive, one of China’s leading local companies in fl avor and inclusions, for US$17 million. Tell us more about your fi rst acquisition in Asia.

Yehudai: We acquired Inventive last November. We look at China and India all the time because there are many things to buy in these countries. We have made it the main goal to expand our activity in the emerging markets of China and Southeast Asia with their high rates of growth, both through internal growth and using acquisition. The acquisition of Inventive, one of China's leading local companies in fl avors and fl avor inclusions, is another important step towards attaining this goal. Growth rates for processed food consumption in China continue to be high and stem from the urbanization of Chinese society, the entry of women into the workforce, and changes in the lifestyle and spending habits of the Chinese consumer.

Right now we are discussing some acquisitions in the nutraceuticals area in China and India, as well as in other places. Construction was recently completed on our Chinese plant, with its state-of-the-art laboratories for development and applications, which will provide us for the fi rst time the ability to develop and produce savory fl avoring solutions locally in China. We are convinced that our new plant will contribute towards taking a leap forward in our activities in China and Southeast Asia which constitute target markets for growth and for leveraging our competitive advantages. We intend to work towards attaining maximum optimization in the operations of the two plants – Inventive's and Frutarom's – and provide Inventive customers the best of Frutarom's capabilities and its wide-ranging product portfolio.

In combination with Inventive's activities, we will continue to develop and deepen our presence in the important markets of China and Southeast Asia. We will utilize and integrate Inventive's R&D and sales and marketing platform with Frutarom's global R&D and sales and marketing infrastructure to leverage and realize the many cross-selling opportunities generated by this acquisition.

China is the biggest market by far, so it is important for us to be there. But to be honest, I think it will take us longer to grow our business there compared to the US market, for example, where we are now fi ve times bigger than we were four years ago.

What do you fi nd challenging in growing your business in China? Yehudai: China is diffi cult because of many factors, such as language, culture and different ways of doing business.

Glickman: Culturally it is a challenge to do business, but the fl ipside of that is nobody can ignore China. The country is a huge source of raw materials. We are strengthening our ability to source health ingredients in China.

Frutarom has doubled its size and revenue every four to fi ve years. In short, the company is on a roll. The bad news is that nothing lasts forever. Do you foresee any obstacles that will end the streak? Yehudai: No. Frutarom today is much stronger than we have ever been. We have a stronger management, better product portfolio, wider customer base, and proven record in integrating our acquisitions very well. We have not failed in any of our 53 acquisitions to date while statistics show that 65 to 70 percent of acquisitions fail because of poor integration. You choose right to begin with, and you don’t lose.

In the fl avor arena, there are around 800 small to medium-sized players, so the consolidation is far from being completed. I believe we are less than halfway down the road with integration in the fl avor area. Meanwhile, the natural health ingredients business is very diversifi ed. There are a few large companies, but most of the industry players are small and medium-sized local players with few product offerings. In the health ingredients segment, there are thousands of small companies, which means there is a huge opportunity for us to make more acquisitions on top of our internal growth.

We have strong balance sheets that allow us to spend US$400 million dollars at least in the next year or two on acquisitions. We also have strong support from our shareholders to continue this journey that also creates value. Frutarom became a public company 20 years ago with a market capital of US$13 million, and today we are a US$2.8 billion company. We are much stronger than we have ever been to allow us to double our size every 4 to 5 years. That's what we have done all of these years.

Some of the questions that investors and other people ask me are: “Why do I buy small companies?” “What does it bring you?” Look, I am a farm boy so I believe that if you grow every tree with the right ingredient, you will have a healthy tree that will bear good fruits. And then, later on, you will have a good forest or plantation that will give you a good yield. Frutarom buys small companies but with a real value proposition and innovations. Companies with unique products, customers, technologies, and capabilities are an important factor for us. We made 15 acquisitions in the last 12 months, which quite a lot.

In other words, you are looking more at what the company is doing as opposed to its book value.Yehudai: We are a public company and shareholders are looking for results, but I couldn’t care less about book value when I want to invest more in R&D and expertise that will bear fruits years from now. I have worked at this company for 30 years, so everyone can look at my track record and judge whether I know how to run this company or not. I believe that if your performance is well, you create value. It is that simple. I personally invested in startups, and it is quite frustrating for me when many people focus on profi t & loss and sales. If we start selling, that is going to be our last day because then you lose the value and the dream. I have to look at this [acquisitions] as a public company, but as a company that is committed to growth.


INGREDIENTS

FOOD COLOURING

Global survey provides insights into consumer needs

The Trend Towards Naturalness

The worldwide trend towards a natural nutrition has been on everyone’s lips for the past years. Meanwhile, the call for more transparency and clarity regarding labelling of ingredients and additives is getting louder. Before buying

foods or beverages, consumers seek to make sure that the products can fulfi l their growing needs. This trend presents manufacturers with new challenges but also with opportunities.

All around the world, consumers consider it increasingly important that their foods and beverages contain natural ingredients. A research, conducted by the market research institute TNS on behalf of the GNT Group, a leading global provider of colouring foods shows that before purchasing a certain product, two-thirds of all consumers thoroughly look through its ingredient label.

Global food survey provides detailed insightsTo unveil the true scope of this trend and help manufacturers to understand better its infl uence on purchase decisions, GNT and TNS have interviewed more than 5,000 people worldwide in ten countries – Brazil, China, France, Germany, Indonesia, Poland, Spain, Thailand, the UK and the USA. The answers shine a light on their eating and shopping habits, the perception of certain product characteristics as well as their infl uence on price acceptance. With the results of this consumer study, GNT intends to provide food and beverage manufacturers with a detailed image of their customers’ needs and show them how these needs can be met.

A careful look at the labelAs the study shows, 67 percent of all consumers worldwide, from which 73 percent of Asians place special importance on a conscious and well-balanced diet. If they have a choice, two-thirds of all consumers and 85 percent in Asia will choose the healthier product option in the supermarket, whenever possible. In this regard, 77 percent of Asians interviewed will put ‘healthy’ on the same level with ‘natural’. The majority of the respondents hold the opinion that natural foods and beverages are not supposed to contain any additives such as synthetic fl avours or colours. In fact, 82 percent of Asians in the study expect natural foods to contain only natural colours.

Asians often do not have a lot of time to spend on shopping; therefore, their keen interest in healthy foods has to be reconciled with a hectic lifestyle involving numerous obligations resulting in 50 percent of them willing to take the time to check the product

label. In the survey, 73 percent consider it easy to understand the information regarding ingredients as well as clear nutrition facts for it to be decisive in making buying decisions.

However, when looking at the label, consumers do not evaluate every single component individually. If the given information is cryptic or too extensive, they would depend on a method of elimination and scan the label for ingredients or additives they try to avoid. Examples of such ingredients are artifi cial colours or preservatives. They are on top of the black list for 60 percent of all consumers and more than half of the Asians in particular.

Trend towards clean label productsFor food and beverage manufacturers, these fi ndings lead to them to the following conclusion that consumers tend to look for clean label products. Despite the fact that the term is not defi ned consistently, people consider ‘clean’ labels to guarantee that food and beverages


are free from artifi cial additives. A short and easy to understand ingredient list provides precise information about origin and use of these ingredients. Natural, familiar ingredients ensure a good feeling and have a positive infl uence on the purchase decision. This idea can even be enhanced if manufacturers communicate the naturalness of their products via a credible front of pack claims.

In the course of the survey, the effect of different claims promoting the use of all-natural solutions such as colouring foods have been examined in more detail - the claims “with natural colours“ and “coloured with fruit and vegetables“ are perceived as credible by more than 75 percent surveyed. The claim “coloured with fruit and vegetables” conveys positive product characteristics such as “is healthy”, “is safe” or “is 100 percent naturally produced” to more than two-thirds of consumers.

The fi rst impression still countsRegardless of their demand for more naturalness, consumers do not want to compromise on the attractiveness of the foods they buy. Accordingly, 42 percent of Asian interviewees stated that the colour is a key criterion when choosing a particular product. The reason for that is simple; the human brain has connected certain fl avours to certain colours. For instance, cherry lemonade tastes better if it is coloured in dark red whereas strawberry yoghurt is expected to be slightly pink.

Colouring Foods offer truly natural colour solutionsAgainst the background of these facts, manufacturers are presented with challenges but also with opportunities. On the one hand, they have to meet the current trend towards a more health-

conscious nutrition. On the other hand, they need to produce appealing looking foods and beverages, to make it look attractive to potential customers.

As a result, more and more producers switch to colouring foods, which are ideally suited to meet this challenge, since they offer crucial advantages. The colouring concentrates are made exclusively from fruits, vegetables and edible plants and are processed by gentle physical methods without using any chemical solvents.

Thus, food can be simply coloured with food without having any impact on taste, texture or mouth-feel of the fi nal product. Colouring foods are completely comparable to synthetic or natural colouring additives in regards to colour range, brilliance or stability. Another key advantage is their unambiguous declaration on the product’s label. Since the colourings are classifi ed as ingredients, the colouring concentrates can simply be labelled for example under ‘Colouring Food - concentrate of pumpkin or elderberries.’

Individualised consultancy, customised solutions Meeting the trend towards a preference for natural ingredients and colourings used in food products, GNT’s Colouring Foods offers the solution with its brand EXBERRY. With a range of more than 400 colour shades, EXBERRY’s possible applications are wide-ranging. The concentrates are suitable for bakery and dairy products, confectionary, oil and fat-based snacks as well as soft drinks, alcoholic beverages and many more. The products from GNT are easy to handle and available as liquid concentrates or powders.

The company, with more than 35 years of experience in the fi eld of colouring foods, can meet challenges faced by food and beverage producers due to unique insights provided by global surveys and its longstanding experience in the industry. Tailored advice and comprehensive support throughout the entire product development process for food and beverage producers is provided by the company’s experts according to processing, application considerations and regulatory advice.

Customers from all around the worldDue to changes in consumers’ attitudes and preferences, the demand for colouring foods continues to show signifi cant growth. Already, new markets such as Asia and South America are developing an interest in colouring foods with natural ingredients. As a pioneer and market leader in the fi eld, currently supplying to more than 1,200 clients in almost 70 countries, GNT is ready to meet the growing needs of food and beverage producers with EXBERRY concentrates.

VICTOR FOO IS GENERAL MANAGER OF GNT SINGAPORE PTE LTD


INGREDIENTS

FOOD COLOURING

Positive health benefi ts of prebiotic fi bres without compromising mouthfeel

Optimising Digestive Health

Consumers globally are choosing to eat healthier, conscious of the positive effect that good nutrition can have on their well-being. Many actively select food items that contribute to healthy digestion in a natural

way, especially given that digestive health has evolved from just a medical topic to a well-being issue.

A recent survey conducted by BENEO revealed that digestive health and constipation are two of the main health concerns in Asia. Coupled with the fact that it has been shown that healthy nutrition is closely connected to natural ingredients, it is unsurprising that 3

out of 4 consumers in Indonesia and Thailand are actively looking for natural products while also preferring fi bre from natural sources such as chicory root. Furthermore, market fi gures also point to an increasing number of consumers associating fi bre with digestive health.

With results of the survey in mind, how can food manufacturers cater to consumer preference for natural products with fi bre? Also, what are the benefi ts to our digestive health brought about by these types of food? There are solutions where food manufacturers are able to not only utilise prebiotic fi bres to provide health benefi ts, but also to enhance the taste and texture of original recipes.


Packing in the fi breConsumers are aware of the benefi cial effects dietary fi bres have on their healthy digestive system, with the results of BENEO’s survey revealing that fi bre is the ingredient that consumers in Indonesia and Thailand most actively seek in their diet. Additionally, 84 percent Indonesian consumers and 81 percent of Thai consumers also look for food options that can enhance digestive health.

However, due to the processed nature of today’s diets, as well as hectic urban lifestyles, consumers are fi nding it increasingly diffi cult to prepare nutritionally balanced meals. As a result, consumers are still struggling to meet the recommended daily amount of dietary fi bre.

Many food manufacturers tap on BENEO’s non-GMO prebiotic fi bres inulin and oligofructose to boost the fi bre level of their products, which are naturally derived from chicory root by gentle hot water extraction. Inulin and oligofructose are soluble and have a mild sweet taste, which makes them ideal for the formulation of high fi bre foods that look and taste like the original food formulations.

Enhancing digestive healthInulin and oligofructose are dietary fi bres that are not digested in the small intestine but are instead fully fermented to short-chain fatty acids by the large intestine’s microfl ora. In addition, they provide a prebiotic effect, as their fermentation allows a selective increase of healthy microfl ora. Inulin and oligofructose are also substrates for microfl ora which host the Bifi dus bacteria – the benefi cial bacteria in the large intestine thus helping to build a strong digestive system.

Digestive health is an important element of feeling good, due to the fact that we often have a ‘lazy’ gut. As such, improved bowel regularity is a growing health target of consumers. Additionally, an increased fi bre intake also helps to achieve the dietary goal of adequate fi bre intake by the general population.

In early 2016, the European Food Safety Authority (EFSA) authorised an exclusive health claim for BENEO’s inulin in improving digestive health. The offi cial claim reads ‘chicory inulin contributes to normal bowel function by increasing stool frequency’, and is based on proprietary research from BENEO that found that adding inulin to a formulation increases stool frequency.

BENEO’s broad portfolio of chicory root fi bres enables manufacturers to choose the best solution for their desired

application. Consumer insights show that applications such as juice, yoghurt, cereals, or rice, almond or soy milk are appealing for fi bre-enrichment.

On one hand, manufacturers can opt for inulin to formulate low fat yoghurt that offers a creamy, fat-like mouthfeel. On the other hand, manufacturers can choose oligofructose if they are looking to formulate a low-calorie fruit preparation for yoghurts with enhanced fruit fl avour and balanced sweetness profi le.

Fortifi ed food productsWith easy access to information on nutrition and food science in the current Internet age, consumers are making better-informed decisions than ever before when it comes to food choices. Food products with improved nutritional profi les will see growing importance as consumers increasingly opt for healthier food options, including food and beverage products supporting digestive health. BENEO’s natural prebiotic fi bres offer food manufacturers new diet-related opportunities for the industry to respond to the growing consumer interest in a healthy digestive system.

With the right choice of ingredients, food manufacturers can be creative, innovative and push the boundaries of product concepts and processes to meet the high expectations of today’s consumers.

CHRISTIAN PHILIPPSEN IS MANGING DIRECTOR OF BENEO ASIA PACIFIC


INGREDIENTS

Best-practice chocolate or enriched milk drinks don’t get sedimental or show creaming during their shelf-life – and they owe it all to a group of networks that work closely together explains Hanne K. Ludvigsen

5 Secrets in Quality Chocolate Milk

ESSENTIAL INGREDIENTS

Early Chocolate MilkRumoured to have been created centuries ago in Jamaica, chocolate milk may fi rst have seen the light of day as the shavings of freshly harvested cacao, boiled with milk and cinnamon by locals and consumed as a hot beverage. Later, the drink was introduced to England by an Irish botanist where it was primarily used for medicinal purposes.

Of course, cacao had been known in Europe since 1502, when Columbus returned with samples from the Americas. We can also be quite sure that the pioneers of chocolate milk also noted the simple fact that the drink’s particles, if left undisturbed, gradually ‘settle out’ as sedimentation in the bottom of their cups, bowls or whatever else they were using at the time. Sedimentation was most likely a problem in chocolate milk over 500 years ago, and it’s still a problem now – only these days, the problem has reached an industrial scale, and it applies to much more milk drink and particle types than chocolate alone.

Shake Before UseConsumer ideas of what constitutes a desirable chocolate or enriched milk drink can differ widely. For example, some may expect it to be highly viscous while others prefer a plainer, milk-like viscosity. Sedimentation, too, while considered by the vast majority of manufacturers to be a problem, may even be treasured by some consumers as a core brand attribute, as is the case for the traditionally glass-bottled Cocio brand of chocolate milk in Scandinavia.

In that same Scandinavian market, however, and in other markets around the globe, sedimentation is an undeniable problem, particularly in carton packaging, as consumers often forget to vigorously shake the carton before consumption, resulting in a drinking experience that varies almost with every sip. Further, labels saying “shake well before use” or the more physically demanding “shake vigorously before use” may be perceived negatively, perhaps because they call attention to the presence of added substances. But such labels are to be applied to a growing variety of chocolate and enriched drinks, as we shall see.

Additional SubstancesDairy manufacturers have been quick to jump on the healthy living bandwagon, developing new products with added vitamins, iron, oat fi bres, calcium, conjugated linoleic acids (CLA), magnesium and more. The same issue, however, raises its ugly head: adding most

things to milk will destabilise the product and endanger both on-the-shelf appeal (for bottled products) and consumer enjoyment (for both bottled and carton products). Even coffee milk, while not widely considered a health-driven product, suffers from the same effect. And a related problem, in long shelf-life products, is the phenomenon known as ‘creaming’.

Sedimental BluesSedimentation begins the moment the drink has been produced. But, of course, it only really starts to work its dark magic once on the shelf. At worst, two distinct layers can appear. In chocolate milk, the bottom one is an “appropriately” dark chocolate colour, while the one just above it has been described as having a “white-livered” appearance by at least one source.

In assessing the sedimentation aspect of such drinks, sensory evaluations tend to focus upon:• The amount of sedimentation• The fi neness of the sediment• The ease or resistance with which it remixes with the milk when shaken

While some particle-containing drink manufacturers have managed to work out how to achieve a consistent and strong suspension, many others have not. For this latter group, there is much to be gained by deploying up-to-date techniques to combat the problem.


Four Networks Acting In ConcertEssentially, any drink containing insoluble particles is prone to sedimentation. Their resistance to sedimentation, if it is to be effective throughout the shelf-life of the product, fi rst requires manufacturers to consider the choice of milk and particle type.

To reduce the likelihood of sedimentation, state-of-the-art recipes for chocolate drinks based on fresh milk can make the most of four distinct, yet interacting networks that together enable an extremely robust suspension, keeping cocoa particles in their place while ensuring emulsion stability, creaminess and other benefi ts.Four of the fi ve networks we’ll discuss in this article are physical effects enabled by:

1. Emulsifi ers, which increased fl occulation of fat globules to form a three-dimensional network

2. Stabilizers, forming the essential carrageenan network3. Microcrystalline cellulose (MCC), whose effect on the formation

of hydrogen bonds forms yet another network 4. In chocolate milk and other enriched milk drinks that may

contain cocoa powder, the tannin component in the powder bonds proteins to add further strength to the drink’s suspension

If all four of these networks are present, as they may be in a sophisticated product, the combined result will hold the cocoa particles or other particles contained in enriched drinks tightly in suspension, preventing them from migrating to the bottom of the container. It’s a ‘thixotropic’ network, referring to the fact that if shear is introduced to the suspension, for example by stirring, the network will be broken down, but will tend to revert to its pre-shear state again once the disturbance stops.

Of course, gravity means the network is also subject to subsidence under its weight, but this is countered by adherence to the inside of

Extracted from seaweed, carrageenan is the most commonly used stabilizer in chocolate and enriched milk to prevent sedimentation of particles. It is, however, diffi cult to dosage as adding too much will cause gelation and too little will cause sedimentation.

the container. And at the same time, the stabilized network improves the drink’s mouth-feel.

CarrageenanAn additive extracted from seaweed; carrageenan is by far the most commonly used stabilizer in chocolate milk. In Europe, carrageenans are divided into two distinct groups: Refi ned carrageenan (E-407); and semi-refi ned carrageenan (E-407a), both of which can be used in chocolate milk. And it’s a sub-group of these, namely Kappa carrageenan, whose chemical composition has proved useful in chocolate milk because of the way it reacts with milk proteins to form a three-dimensional network.

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Visit www.palsgaard.com to learn more about how we can help you in your product development.

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Enhanced emulsion stability, mouth-feel, texture and viscosity. Improved stability, whippability, foam structure and water retention... Palsgaard’s

And with application centers on three continents we can help you throughout the entire process of preparing a new product for production or adjusting an existing recipe.


INGREDIENTS

Essentially, the carrageenan forms a helix with negatively charged sulphate groups turning outwards. This helix interacts with the positively charged casein micelle. When carrageenan is used as a stabilizer, and in order for the network to be formed, the chocolate milk must be cooled to below 25°C before fi lling, or below 25°C during constant rotation if in-can or in-bottle sterilisation is used. It’s important to store the product at temperatures below 30°C, as the network will start to break down in the heat.

Figure 3: An emulsifi er is a molecule with ambiphilic properties (part of the structure is hydrophilic, and other moieties are lipophilic). In a multiphase system, the emulsifi er will adopt a favourable position with respect to energy. The emulsifi er reduces surface tension between the phases

Add dosages of carrageenan is somewhat like walking a tightrope. And it’s a fi ne line indeed: A dosage that’s just a little too low will quickly produce undesirable levels of sedimentation. Slightly overdo the dosage, on the other hand, and the product is likely to acquire a heavy, gelated body.

So the margin between the two states is narrow. Unless that is, the stabilizer is accompanied by mono and diglycerides. The stabilizer increases the dosage margin, and has the useful effect, due to the creation of a network between fat globules and whey proteins, of reducing the amount of carrageenan required to form a stable product. But more on that in a moment.

Another factor to take into account in determining the right dosage of carrageenan is the variation that may occur in the composition of the milk, depending on the season. However, there’s more still to the dosage decision. It also depends, for example, on:• The milk’s fat content, as more fat requires less stabilizing• The cocoa content as more cocoa demands less stabilizer• The choice of heat treatment (Sterilisation requires less stabilizer than UHT, which in turn requires less than a pasteurised product)

The Mcc/Cmc ComplexTo consumers, it may seem surprising that refi ned wood pulp has a contribution to make to keeping milk drink particles in their place. But microcrystalline cellulose (MCC), as it is offi cially known, or rather a MCC/CMC complex, is often used in combination with carrageenan.

The mono and diglycerides form a complex with the whey proteins, making the fat globule membrane more resistant to coalescence, and reducing fat separation in the product at the same time. But that’s not all – these emulsifi ers lower the net charge of the membrane, creating a three-dimensional network that acts to increase the creaminess of the milk – and the consumer’s sensory perception of a thick, luxurious product. Importantly, and perhaps somewhat counter-intuitively, the emulsifi ers also guard against creaming in the fi nished product.

Cocoa Particles For chocolate milk drinks, the work performed by carrageenan, the MCC/CMC complex and emulsifi ers to create a robust suspension are further assisted by the cocoa particles themselves. A typical recipe contains around 1-2% cocoa powder – meaning there’s no shortage of particles to distribute and hold in position.

From the moment the milk and cocoa powder are mixed, casein is almost immediately adsorbed to the particles. The strength of this particular network-building effect depends on the degree of alkalisation of the cocoa powder. That’s because cocoa powder contains polyhydroxyphenols, which polymerise during alkalisation into tannins, known for their protein-binding properties.

Figure 1: How this network is formed in a carrageenan-stabilized chocolate milk.

MCC is derived from plant fi bres from which the crystalline part of the cellulose is extracted. In dispersion, MCC forms hydrogen bonds, creating the second of our three-dimensional networks. As an added bonus, MCC-based products can also lend more body and creaminess to the drink.At temperatures below 80°C, MCC’s functional properties are largely unaffected by fl uctuations, so cooling and storage temperatures become less critical. That makes MCC-based products a good choice where cooling below 25°C isn’t an option – or if the storage is likely to be at more than 30°C, as is often the case in South East Asia or the Middle East, for example.

Because MCC doesn’t react with the milk proteins in the same way as carrageenan, the risk of separation due to overdosing is less. That said, overdosing will result in a heavy body and high viscosity.

The Effect Of Carefully Selected Emulsifi ers The emulsifi ers used in enriched milk drinks are typically mono and diglycerides produced by the reaction of edible vegetable fats or oils when combined with glycerol. The resulting molecule in fi gure 3 is composed of a hydrophilic and a lipophilic part, positioned at the interface between fat and protein on the one hand, and water on the other. These molecules are formed during homogenisation and ageing of the product.

Figure 2: The network formation brought about by MCC/CMC, in which particles are suspended.


In general, the heat stability of chocolate milk is lower than that of milk. However, the closer the pH of the cocoa powder is to the pH of the milk the less impact it has on the suspension’s stability. It is important, too, to consider the particle size of the cocoa powder, as the network simply can’t support particles that are too heavy. In fact, Palsgaard recommends that less than 0.5% of the particles are larger than 75 micrometers.

Of course, the advantages of this fourth network are lost on enriched milk products that don’t contain cocoa powder. Calcium-fortifi ed, non-chocolate milk, for example, which face the task of suspending particles of calcium instead of cocoa, are similarly subject to unattractive settling but lack the networking effect of their cocoa cousins. The the suspension challenge is, however, no less important to address. For example, where sedimentation has occurred, the consumer may lose the fortifying benefi ts of the drink – and, at worst, ends up with a mouthful of solids and a distinctly chalky taste.

The creation of a durable suspension in this type of milk drink can largely be achieved, for example, by combining a small-particle-size, solid-precipitated calcium source with the networks built by the combination of carrageenan, the MCC/CMC complex and gellan gum, together with the right choice of emulsifi er. Gellan gum is a polysaccharide produced by fermentation that creates a gel structure in solutions, keeping the calcium particles in suspension. The gellan network is formed independently of the proteins in the drink and has only limited infl uence on viscosity, making it well-suited for a plain milk product.

As with cocoa-based milk products, there is, however, one more network that can make a signifi cant difference, and which can only be created with many years of experience.

The Fifth Network: Global Know-HowWorking with the four preceding networks isn’t something one can expect to get right fi rst time. In fact, it takes in-depth experience and a lengthy track record of varied recipes and testing before it is possible to determine the right balance of ingredients and effects quickly. So, in fact, there’s a fi fth network that plays an important role in achieving the best results – Palsgaard’s own, global knowledge network.

After many years of supplying the dairy industry with emulsifi ers and stabilizers, we’ve managed to build up a signifi cant knowledge bank that supports our customers in arriving at the right recipe, equipment and process parameters in far less time than might otherwise be expected. It’s the result of countless trials conducted in well-equipped application labs around the world. In Denmark, Singapore, Mexico and China, for example, application specialists spend days on end to create blends that take key factors such as milk quality, recipe, process conditions and sensory preferences into consideration. The labs are able to perform systematic trials with pasteurised, UHT or sterilised products, creating shelf-life studies that cover the entire shelf-life of chocolate or enriched milk.

Consider ThisMost often, such trials are conducted together with manufacturers – either in our labs or on the factory fl oor. In one case, for example, an Asian-based customer was experiencing gelation and sedimentation of the company’s calcium milk. That’s not unusual, of course, as calcium milk have a greater tendency to gel over time. Even so, the company was experiencing unacceptably short shelf-life – no more than a couple of weeks at best before the product began to show soft lumps, a prior stage to becoming gelatinous. Working together with Palsgaard’s dairy team, the recipe and process parameters were reproduced in one of our labs, and a process of experimentation managed to extend the product’s shelf-life to as much as six months.

Recommended SolutionsSo which products does Palsgaard recommend for manufacturers looking to arrive at uniform products with good creaminess and feeling in the mouth and high storage stability?Palsgaard ChoMilk 150 is a carrageenan-based product designed to bring uniformity, pleasant creaminess and an appealing mouth-feel to chocolate milk. It’s composed of mono- and diglycerides, carrageenan and guar gum – and it’s an excellent choice for most chocolate milk. Palsgaard ChoMilk 150 is an integrated product rather than a dry-blended one, which means spray cooling technology is used to coat the stabilizer with the emulsifier. This brings several advantages:• Free-flowing properties• Uniform product without the risk of deblending during storage and transportation of the emulsifier and stabilizer mixture• No dust formation• It can be added to the milk without pre-mixing with sugar

For situations where cooling is a problem, however, a different member of the Palsgaard ChoMilk family is likely to have the best effect. If the local climate, logistics challenges or other factors make it difficult to cool the product below 25°C after production, or if it is to be stored above 30°C, we advice using Palsgaard ChoMilk 173. This specialised product is declared as MCC, mono- and diglycerides, carrageenan and CMC – and it works well in chocolate milk drinks with relatively low protein content, either due to the milk’s protein level or as a result of dilution with water, and even in enriched applications. Able to be used for a wide variety of applications, Palsgaard Chomilk 173 is a dry-mixed product, so the suspension of the product in milk is facilitated by dry-mixing the product with sugar before it is added.

Manufacturers working with high-calcium milk can use Palsgaard Chomilk 173 or Palsgaard RecMilk 131 – declared as gellan gum, mono, as well as diglycerides and locust bean gum, depending on factors such as milk type, calcium particle type and the concentration of particles in the product.

All of the Palsgaard ChoMilk products are capable of delivering a consistently high-quality product without visible creaming or sedimentation, and with appealing consumption characteristics.

HANNE K. LUDVIGSEN IS THE PRODUCT & APPLICATION MANAGER FOR DAIRY & ICE CREAM AT PALSGAARD’S DANISH HEADQUARTERS.


PACKAGING

PET PACKAGING

Through smart design and technological advances, beverage producers are improving shelf-life, sustainability and much more

The Preferred Packaging Material

In the beverage packaging industry, innovation has been driven by a multitude of modern expectations of what today's bottled products should look like, as well as how they should be made. Each pack option has its own market,

environmental and process benefits, but the industry also needs to consider the different needs of retailers. Consumers assume that the beverage they buy is safely produced, in a pack format that is easy and convenient to use, and is hopefully packed in the most sustainable format available that meets branding requirements.

Due to its appeal to consumers and producers alike, polyethylene terephthalate (PET) has become the preferred packaging material for the beverage market since its introduction in the early 1980s. An attractive alternative to glass and other traditional packaging materials, PET meets the expectations and needs of beverage producers and consumers. It is light in weight, shatter-resistant, fully recyclable and offers outstanding design flexibility. To give beverages their individuality and capture the customer’s eye, producers are increasingly turning to PET to create bottles with distinctive shapes, attractive labels, optimal lightweighting and high quality.

“For years, soup in cans, wine in glass bottles and coffee in paper cups were the norm. But innovations in plastic packaging has brought plastics into new areas once dominated by these materials,” says Amunugama Nalin, General Manager of BOGE KOMPRESSOREN Asia Pacific.

With the demand for beverages predicted to double by 2030, manufacturers need to rely on packaging solutions that meet all their production, food safety, profitability, and sustainability goals. Since PET is fully recyclable, cost-effective and keeps beverages fresh and safe, it will no doubt continue to propel the beverage packaging market.

The characteristics of PET offer many design possibilities. Its transparency and clarity are also key assets, allowing customers to see the bottle’s contents and assess the quality of the beverage. Being light, yet resilient and re-sealable, PET bottles are also very convenient.

Global Industry TrendsAccording market research fi rm, EuroMonitor, PET is outpacing growth of other packaging materials because of its fl exibility in form and size, especially in beverages when compared to arch rivals, such

as the beverage can, glass bottle and liquid carton. The re-closability afforded by the PET bottle for on-the-go convenience is a pertinent, core strength of the format.

The global consumption of PET bottles in the retail marketplace – encompassing the needs of the beverage industry, as well as foods, beauty and home care industries amounted to 471 billion bottles in 2015. Some 42% of this global PET demand came from Asia Pacifi c, with this regional position to intensify further with 47% of the world’s consumer products in PET bottles set to be sold in Asia by 2019. By then, 8 of the 10 leading countries for PET usage will be developing countries, mainly from Asia Pacifi c and Latin America, driven primarily by bottled water, carbonates, juice and ready to drink (RTD) tea. Asia Pacifi c is expected to post a 9% CAGR over 2014-2019, the highest volume growth in PET globally, driven primarily by India and China. Population growth, urbanisation, busy lifestyles and higher purchasing power are overall economical factors driving growth.

Lightweight RulesConsumers are becoming very concerned with the environment. They understand the need to recycle materials in order to reduce waste and conserve natural resources. As a result, most manufacturers are already reducing the weight of their PET bottles by designing optimised preforms, converting the bottles to short neck or completely redesigning the bottle shape. More and more, they engage not only in lightweighting, but also in RightWeighting™ the bottles, in order to fi nd the perfect balance between resource savings and a great


or 40 bar. The innovative combination of oil-free compressing piston compressors (booster) and an oil-free screw compressor, renders it totally safe for producing PET beverage bottles, making the Flexpet ideal for other sensitive areas of applications such as the food and healthcare industry.

BOGE was able to develop and market the entirely oil free bundle solution for the PET industry with the help of its K15 Booster. The old Flexpet system was based on oil-lubricated SRHV boosters that fi ltered the oil from the air by means of fi lter technology. Thanks to the innovative push rod system, the booster does not use any oil at all. This means that manufacturers who operate in sensitive sectors will no longer need any expensive compressed air conditioning equipment.

“While oil-free compressors have a higher initial cost, they have lower maintenance costs because they eliminate the need for oil and fi lter replacements, and reduce energy consumption due to pressure drops in the fi lters,” Mr Amunugama reiterates.

The Flexpet comes with components for turnkey installation and is specifi cally designed to meet the requirements of medium-sized companies that operate in the beverage industry. Its IE3 motors with the highest possible effi ciency rating and the intelligent consumption-oriented control unit, namely the airtelligence provis 2.0 makes it highly fuel and energy effi cient, and cost effective to run, while reducing the carbon footprint and protecting the environment.

Direct Print TechnologyThe Martens Brewery is the second biggest brewery in Belgium and an extremely experienced fi ller of beer in PET bottles. Now in its eighth generation, the company's own house brands constitute approximately 15% of its output, with the remaining 85% attributable to private labels, which are distributed in European countries as well as in China, Japan, Hong Kong and others.

Through the most popular TV show on Belgian television, Martens Beer recently decided to fully exploit the newest technologies available to promote a special fl avour of the beer with a story.

"Bottling beer in PET bottles and printing images of TV show characters directly on the bottle are unique projects as such. And we added augmented reality which enables the characters in the images to talk to the consumer via their smart phones or tablets," explains Danny Dresselaerts from Martens Brewery.

Martens' new Dagschotel beer is fi lled into PET bottles, which, thanks to Direct Print Powered by KHS has no need for labels. The innovative process prints all information straight onto the bottle in true colour. FreshSafe PET technology is also used which covers the inside of the PET bottles with a protective layer of silicon oxide (ultra-thin, fl exible, pure glass), thus preventing oxygen from penetrating the bottle and extending the shelf life of Dagschotel beer. KHS's successful cooperation with Martens demonstrates the benefi ts the new technology offers beverage producers. The development, which recently won the German Design Award in combination with Nature MultiPack, not only allows bottlers to be more sustainable in their production by doing away with labels but to also open up completely new avenues when it comes to marketing. The innovative process also shortens the lead-time to market from several weeks to a few minutes.

What’s Next?The revolution led by the food and beverage industry will continue with intense focus on reducing the environmental footprint, developing ecofriendly products and increasing recycling. From water and juices, to beer and wine, and foods like yogurt, innovative PET packaging solutions and smart design will play an important role in the consumers’ decision to buy a product. Creating packaging that is sensitive to the environment will begin to take new forms, particularly using plant-based, recycled, and renewable materials.

RAHIMAH A IS COMMUNICATIONS SPECIALIST (FOOD AND TECHNOLOGY) WITH CORPORATE MEDIA.

consumer experience. However, when it comes to decreasing the quantity of material used and the overall weight of the bottle, design is very important for optimising the bottle’s performance.

Since the cost of the raw material used to make a PET bottle represents a signifi cant part of the cost of the product (up to 75% of the bottle fi lled, capped and labeled), the trend towards lightweighting also makes fi nancial sense. Over the last 23 years, the typical weight of PET bottles holding 1.5 liters of still water decreased from 42 to 22.5 grams, while the manufacturing rate increased from 1,000 to 2,250 bottles per hour. The lightweighting trend is expected to continue, with the typical bottle weight falling below 20 grams.

Banking on RecyclingPET bottle recycling surpassed the 1.36 billion kg mark in 2014, with PET and high-density polyethylene representing the bulk of the recycled material, the Association of Plastic Recyclers and the American Chemistry Council reports. Taking advantage of the increased availability of recycled materials, major brands like Coca-Cola and Pepsi started using recycled PET (R-PET) for their packaging, thus increasing their sustainability and reducing their carbon footprint.

Europe is also making a push to increase recycled content in PET bottles. The European Union is currently funding a US$3 million research project through Polymark. Launched in 2014, Polymark brings together stakeholders from the PET value chain with the aim of developing a new technology to identify and sort polymers, including PET, in the high-value plastics waste stream over three years. PET combines the ability to be used for innovative packaging with the capability to be recycled, and is by far the most recycled plastic material in Europe. More than 66 billion PET bottles were collected and recycled in 2014, representing 57% of all discarded PET bottles sold in Europe. Almost 30% of the total amount of recycled PET is already being used to produce new PET bottles.

In the fi rst 18 months, Polymark successfully developed a prototype, fl exible, coating-based approach for marking PET bottles. The group used commercially available, near UV-excitable markers with strong fl uorescence in the visible region of the electromagnetic spectrum that allowed them to develop high-speed detection technology with minimal UV/ozone generation hazards. The markers are formulated in a water-based, sprayable coating to minimize the use of volatile organic compounds (VOCs) that have associated fl ammability hazards.

Polymark recently published its preliminary technical results for the development of food-contact approved chemical markers which it hopes will improve identifi cation and sorting of higher value elements, particularly PET, in the plastics waste stream. This will help the recycling industry to more effectively distinguish between food-contact and non-food contact PET while meeting EU regulations on the use of recycled PET for food-contact applications.

Clean, Dry Compressed AirThe beverage industry depends on compressed air, free of any residues, such as particles, moisture or aerosols, for almost everything it does - whether it’s for cleaning, sorting and fi lling glass bottles or for labelling, packaging. For more than a decade, manufacturers have relied on oil-free compressors as they virtually eliminate compressed-air related food risks during production. For example, compressed air is required to make PET bottles. Any traces of oil in the compressed air can enter the bottles during the PET blowing process and contaminate the end product. This would negatively impact the taste and odour of the end product and even affect consumers’ health.

BOGE, a leading provider of compressed air systems has developed a complete package for manufacturing PET bottles. The company’s Flexpet BFPO is a fl exible and effi cient solution for manufacturers who require totally oil-free compressed air of up to 10


PACKAGING

DIGITAL PRINTING

Exploring the use of digital print packaging to offer a personalised brand experience for consumers while reducing environmental impact

The Appeal of Digital Printing

Rising consumer wealth, a rapidly growing middle class and increasing urbanisation in Asia are creating new opportunities for food and beverage brands. Leading companies are looking to attract and win the loyalty

of consumers through customising their products. By offering a personalised experience, food and beverage companies are striving to build deep, seamless and lasting connections between the consumer and the brand, while differentiating their products from those of their competitors.

In fact, research from Deloitte’s, Consumer Product Trends Navigating 2020, 2015, showed that consumer spending is shifting toward customised products across a broad range of ‘commodity’ consumer products. It found that 42 percent of consumers surveyed are interested in technology to customise products, and 19 percent indicate a willingness to pay a 10 percent price premium to customise or personalise products they purchase.

Customisation is also helping companies reach specifi c consumers — such as the millennial shoppers, who are known for their fast-moving preferences and demands for instant gratifi cation. According to research from Mintel, one in fi ve US millennials seek custom or personalised packaging, and nearly one-quarter of Chinese consumers indicate they would pay more for personalised soft drink packaging.

In a world where customised products and personalised, targeted marketing experiences win companies market share, leading food and beverage companies in Asia are starting to view packaging as an important way to engage consumers on a local, personal, or even emotional level.

This is driving the need for digital printing for packaging, which delivers benefi ts over legacy analogue printing, such as the ability to produce short print runs economically and meet the demand for faster time to market – both critical factors for effective product customisation.

Printing-on-demand also means less waste, ensuring that new packaging or graphic designs or changes in ingredients don’t result in redundant stock. Technological developments in inkjet and electrophotography mean that digital print is becoming increasingly accessible and cost-effective for all types and sizes of food companies, and is not just for small brands with low volume.

Mintel believes 2016 will be the tipping point for digital print packaging as brands and package converters begin to move beyond using digital primarily for limited editions and personalisation, and

begin to capitalise on its economic and speed-to-market advantages for mainstream package decoration.

With digital print packaging driving new opportunities for food and beverage brands, we weigh up the major advantages and potential barriers to adopting this approach.

Locking in Consumer Demand To win and retain the loyalty of Asian consumers who are increasingly demanding, digitally savvy and affl uent, food and beverage companies need to move beyond traditional methods and provide a more personal consumer experience. With digital print packaging, consumers can order a product that is both bespoke and customised, which may allow brands to engage with their customers in exciting new ways.

The product is produced with a purpose and on demand, which is usually not the case with conventional shopping, where consumers buy only what is available on the shelf. Digital printing allows businesses to print on demand and in smaller quantities, therefore reducing cost and waste.

Savvy companies are already using digital print packaging to engage with consumers in new ways. For example, My Kleenex, an e-commerce loyalty programme allowed designs and photos to be uploaded online for a customised oval tissue package. The website made other promotional product information available on the web page. Personalised tissue ovals had a minimum quantity of one and were delivered directly to homes with a four times price premium compared to the store price.

Coca-Cola is at the forefront of one-to-one marketing, engaging consumers and increasing shelf appeal with digitally printed


counterfeit packaging technology that will protect their brands throughout the supply chain.

Counterfeiters have sophisticated techniques to make changes on a scientifi c basis to fi gure out what they can do to a product to increase its commercial viability. And while most savvy shoppers can fi gure out a fake purse being sold for $15 is probably not authentic, it is hard to tell that a bottle of virgin olive oil is diluted with corn oil.

With mounting pressure on food companies to prove their product's origins and prevent counterfeiting, companies can introduce new and personalised offerings with the benefi t of digital printing’s ability to create unique, information-rich codes such as micro-text variable data printing (VDP), anti-counterfeit QR codes, dynamic guilloche and end-to-end track and trace solutions.

The Next Frontier for Customised Brand Experiences

The future for digital print packaging looks promising, but there are some barriers to the adoption of digital printing. For example, despite digital printers constantly improving, they still can’t quite match the colour quality and sheer fl exibility of traditional offset printers. Traditional offset printers also offer a wider range of paper, ink and fi nish options, using the Pantone Matching System and inks to deliver unparalleled colour accuracy, although some modern digital printers have bridged the gap.

Another challenge is that digital printer inks aren’t fully absorbed into the print paper, which means cracks can appear in the colour near edges which are folded in the fi nished publication. This isn’t a problem in traditional offset printing.

It’s also important to remember that traditional offset printing can be more cost effective than digital printing for higher volume print runs as the individual unit price comes down.

That said, these barriers haven't stopped digital printing becoming an increasingly signifi cant presence in packaging, as Smithers Pira's report in The Future of Digital Print for Packaging to 2020, August 2015 has indicated.

Today’s Asian consumer is seeking unique, customised experiences and positive reactions to customisation campaigns such as My Kleenex, Coca-Cola’s ‘Share a Coke’, Bud Light and Oreo cookie pack designs prove that digital print packaging delivers an impactful and relevant way to elevate a consumer’s brand experience.

Digital print packaging that creates “hyper” personal experiences enhances brand transparency and builds purchasing confi dence.

Packaging suppliers need to build on the buzz by making digital printing options more readily available to help leading brands deliver customisation campaigns to enhance further their brands’ engagement with Asian consumers.

JAI RASTOGI IS VICE-PRESIDENT OF PACKAGING TECHNOLOGY INTEGRATED SOLUTIONS APMEA, A DIVISION OF HAVI GLOBAL SOLUTIONS

personalised labels and packaging. In its popular ‘Share a Coke’ campaign, Coca-Cola enabled consumers to make meaningful connections with personalised Coca-Cola labels. Label production for this particular type of highly complex campaign requires meticulous attention to variable data, consistent productivity and fl awless colour management.

Similarly, Bud Light created 200,000 unique, limited-edition festival cans using digital printing technology to deliver a unique consumer experience. Digital printing technology was also used to enable consumers to personalise Oreo cookie packs with Christmas theme designs.

Environmental Benefi ts Asian consumers are putting more pressure on brands to do the right thing for the planet. To meet this demand, food and beverage companies are constantly searching for environmentally responsible packaging options. A recent survey by HAVI Global Solutions revealed that 41 percent of professionals, ranging from academics to brand owners, see sustainability as a key area of opportunity for the future. The survey entitled Future of Packaging: 2023 questioned over one hundred professionals on the key factors which are expected to affect the industry in the decade to come. Among the many key fi ndings, the survey revealed that 78 percent of respondents believe sustainability will become more important in the next ten years.

Most businesses considering environmentally-friendly packaging tend to focus on the materials themselves, however, the processes companies use to create their packaging also have a signifi cant environmental impact. Using digital printing is a far more sustainable alternative to traditional print methods and in many situations, digital printing is also more cost-effective.

For example, increasing legislation means any simple ingredient change in a product renders printed packs and labels obsolete. Using digital print-on-demand obviates this, reducing waste and redundant stock.

Enhancing Supply Chain TraceabilityDelivering safe food requires visibility into its journey from farm to fork. Food and beverage companies are not only expected to deliver more, high-quality products, faster and for less, but to provide all the information associated with the origins of ingredients and product materials including packaging, as well as the conditions under which they were produced and transported along the value chain.

Traceability requires that food companies provide regulators with records that allow them to trace a material or product through all stages of manufacturing, processing and distribution. The records should enable regulators to identify businesses that are involved in all aspects of packaging and food contact materials.

In addition, with counterfeiting fi gures continuing to grow and counterfeiters getting closer to copying original packaging designs, it is more critical than ever for food companies to invest in anti-


PACKAGING

PACKAGING INGREDIENTS

Consumer brands turn their focus on packaging ingredients for ensured health and wellness

Health and Wellness: Food Packaging

With increasing intensity, consumers are now more than ever are seeking products that are preservative-free, organic and healthy. This wellness trend is here to stay and continues to penetrate deeper into major

consumer demographics. Health and wellness products already represent 20% of the packaged food market and are growing twice as fast. Over the last few years, the wellness trend has grown to include concerns over the safety of food packaging.

As consumers grow more determined to understand the ingredients in their food, they have begun to realize that packaging plays a signifi cant role in the quality of their food. They know that anything that touches the food product, called food-contact packaging, deserves scrutiny and investigation. What good is a healthy product if it’s packaged in material that can degrade the food or introduce unwanted ingredients? Consumers recall the BPA concerns and understand that it’s not enough to pay attention to the food itself. Packaging is often considered the fi nal element of a product, it can be considered an out-gredient and it is important to understand the underlying materials used in food packaging.

Ingredients that are found inside food packaging are just as important as ingredients found in food products. These additives are tested to the highest toxicological standards to guarantee that consumers are purchasing holistically healthy food products. Consumer brands have not been waiting. The industry is taking no risk and is pro-actively replacing any material that could shed any doubt on the safety of the materials used in food packaging.

Like antioxidants that are found in healthy and natural foods, antioxidants are used in food packaging materials to protect the plastic during its manufacturing and its life cycle in the retail environment and the home. All antioxidants used in packaging have been heavily tested over the years and are inherently safe, but the industry is now looking at the next level, ensuring that no impurity or potential degradant from these materials that might be of concern will touch our food, even at infi nitesimal levels.

As an example, one of the anti-oxidants used in packaging, TNPP, is a safe material, but it is manufactured from nonylphenol as a precursor and could lead to a few parts per million residual presence of nonylphenol in the packaging. Nonylphenol is under scrutiny in several countries for its environmental impact, and the industry is proactively replacing it with new solutions. Government regulatory agencies like the U.S. Food and Drug Administration (FDA) and the European Food Safety Authority (EFSA) are probing historical additives that are currently being used in food packaging. In China,

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New solutions are emerging that are replacing these older antioxidant technologies. These new solutions are tested with methodologies that did not exist in the past and give the new technologies an edge over their older alternatives regarding safety and peace of mind for packaging manufacturers.


WESTON 705 is a new nonylphenol-free Liquid phosphite antioxidant additive developed for use in polyethylene. Today, it is the only anti-oxidant for packaging fi lm that has been tried and tested to the latest most stringent regulatory standards.

The benefi t of new additives that keep up with or even surpass agency regulatory standards is they do not pose the threat of forcing un-forecasted changes in polymer production, processing and conversion due to regulatory changes. WESTON 705, the polyethylene additive market’s most tested antioxidant additive, processes like TNPP, yet it outperforms other additives in production and increases the throughput of the extrusion equipment.

As it is a liquid and not a powder, resin producers are able to cut down on in-facility pollution, contamination and clean up in comparison to powders. They will also benefi t from more exact dosages and a more effi cient production line which allows for uniform resin consistency, better processability and of course, greater customer satisfaction.

Like resin producers, processors and converters always seek higher effi ciency and increased quality when it comes to polyethylene fi lm. WESTON 705 converts and processes better than any other phosphite antioxidant on the market, making the switch not only a painless one but also a more effective solution. It also allows processors and converters to run expensive production lines at maximum speeds and permits even older machines to run hotter and at greater throughput providing signifi cant boosts in operational effi ciency.

The FDA-approved WESTON 705 differentiates itself as the most rigorously tested, highest performing and most reliable additive on the market. As consumers grow more concerned with safety regarding their food and wellness products, food brand owners

using packaging with WESTON 705-inside can guarantee consumers packaging that matches the quality of the brand asset.

With regulations in fl ux, it is important, now more than ever to understand what ingredients are used in our food packaging. Whether you are a brand owner, resin producer, converter or processor, packaging additives can dramatically affect your business each and every day. By understanding what ingredients food packaging and packaging materials contain, the supply chain can better address and meet the consumer’s need for safe and reliable packaging while simultaneously overcoming the global regulatory challenges and increasing operational performance ineffi ciencies in processing and converting food packaging by using WESTON 705.

DAVID BRASSINGTON IS VICE-PRESIDENT REGULATORY AFFAIRS, ADDIVANT


FOOD SAFETY

Global Certifi cation is pertinent, as food producers and sellers focus on quality and safety

Food Safety Certifi cation to Know

QUALITY CERTIFICATION

Food and product safety have become top priorities for food producers and sellers as consumers, retailers and food manufactures are increasingly focused on the food they purchase and consume.

With the advent of tough new legislation from major markets such as the USA and China where laws aim to reassure customers of proper product quality, manufacturer’s concern is skewed towards product and consumer safety, despite their primary focus on productivity, performance and profi tability driver by consumer demand and product appeal.

Besides general food safety, other concerns such as healthy or organic, biologically grown foods and animal welfare are increasing being addressed by certifi cation procedures – often to globally accepted food standard, which helps ensure consumers receive products of suffi cient quality and integrity. In a broader view, this means retailers and manufacturers are more likely to buy from certifi ed suppliers and sub-suppliers.

That’s why so much work is being put to ensuring uniform conformity among standards, and manufacturers are receiving help to decide which standards are right for them. This work is driven mainly by the Global Food Safety Initiative (GFSI), a retailer/manufacturer non-profi t foundation.

The Global Food Safety Initiative (GFSI)The GFSI was set up in 2000 at the request of CEOs of around 30 international retailers and is managed by The Consumer Goods Forum. The initiative was established against the backdrop of various food safety crises, with the intention of establishing and ensuring worldwide consumer confi dence in food safety.

GFSI benchmarks existing food standards against food safety criteria, with the goal of standardising certifi cations and eliminating multiple audits. Preferred implementation places the GFSI just above third parties / accreditation bodies (see Figure 1).

The Benefi ts of Certifi cationBesides the existing quality standards such as ISO 9001 and quality systems such as GMP or HACCP, it is increasingly becoming important for food manufacturers and retailers to be certifi ed according to a food-specifi c, GFSI-accepted standard. Benefi ts include improved customer confi dence, enhanced brand protection, a standard process and minimised costs – the result of not having to deal with complexities of distributing non-conforming products.

GFSI Accepted StandardsGFSI, since 2012 onwards, have accepted the standards listed below. Schemes of standards in bold below currently rank as the most often used and frequently accepted worldwide.• BRC Global Standard for Food Safety• Canada GAP• FSSC 22000• The Global Aquaculture Alliance• Global GAP• Global Red Meat Standard• IFS (International Featured Standard) Food• Primus GFS• SQF

Overview of commonly accepted GFSI-accepted standardsBRC Global Standard for Food SafetyOriginally developed in response to the needs of UK members of the British Retail Consortium, BRC standards have gained worldwide use and are proving to be acceptable by growing numbers of retailers and branded manufacturers in the EU, North America and further afi eld. BRC offers fi ve related standards: BRC Global Food Standard, BRC Storage and Distribution, BRC Packaging and Packaging Materials Standard, Global Standard for Agents and Brokers and BRC Consumer Products.

Figure 1: GFSI benchmarks existing food standards against food safety criteria.


Subject BRC IFS SQF FSSC 22000

Systemrequirements

Quality and food safety Quality and food safety Level 2 Food Safety;Level 3 includes Quality(need to conduct food safety analysis, defi ne critical quality control points)

Food Safety

Systemestablishment andimplementation

Prescriptive requirements

Prescriptive requirements

Some requirements areprescriptive; Requires SQF practitioner (full-time)

Provide frameworkrequirements for thecompany to demonstratehow to comply anddemonstrate their foodsafety system

Report /data management

By certifi cation body and standard owner

By certifi cation body andstandard owner

Company needs to register in Quickfi re system prior to certifi cation process

By certifi cation body and standard owner

Certifi cationprocess

No stage 1; Companygoes directly to an on-site certifi cation audit

No stage 1; Company can easily go direct to an on-site certifi cation audit

Stage 1 on or off site; Stage 2 on site; Any major nonconformity found during stage 1 needs to be closed out prior to stage 2 audit

Stage 1 on site; Stage 2 on site; Critical items from stage 1 to be closed out during stage 2 audit

BRC Global Standard for Food Safety was fi rst introduced in 1998, and now has almost 15,000 certifi ed sites in over 100 countries. It was developed in order to specify safety, quality and operational criteria to which food manufacturers should comply in order to protect consumers, and it was the fi rst standard to be accepted by GFSI in 2000.

IFS for FoodFounded in 2002 by a German retailer association, the IFS (International Featured Standard) represented more than 190 dealers (including 12,000 IFS-certifi ed suppliers in 90 countries) by 2011. The standard provides a range of integrated checks on safety and quality in food processing companies, and offers certifi cation across the

6


FOOD SAFETY

Subject BRC IFS SQF FSSC 22000

Certifi cate validity Certifi cate valid for 1 year; Grade C-Recertifi cationwithin 6 months

Certifi cate valid for 1 year

Certifi cate valid for 1 year;Grade C-Recertifi cationwithin 6 months

Certifi cate valid for 3 years

Integrated audit Recertifi cation dependson audit result (Grade Cneeds to be 6 months so interval or integratedcondition will be changed depending on result)

Does not allow integration with ISO management system standard; Allows integration with product certifi cation schemes

Different managementsystem structure butpossible for integratedaudit – will requireseparate reports since SQFreporting is uploaded to adatabase

Same managementsystem structure as ISOstandard so it is easilyintegrated with othermanagement systemstandards

Recertifi cation/maintenance visit

Same audit time ascertifi cation visit

Same audit time as certifi cation visit

Same audit time as stage2 on site

Maintenance audit requires less audit time on site than initial or recertifi cation

Certifi cation mark Not allowed to be displayed on the product

Not allowed to be displayed on the product

Level 3 certifi cation – canuse certifi cation mark onthe product

Not allowed to bedisplayed on the product

whole range of food processing, with the exception of agricultural primary production. The IFS comprises fi ve related standards: IFS Food, IFS Broker, IFS Logistics, IFS Cash & Carry / Wholesale and IFS HPC.

IFS Food, Version 6, has involved the International Technical Committee, as well as French, German and Italian working groups. In addition, support and input has been provided by retailers and stakeholders, as well as by industry and food services representatives, plus certifi cation bodies. Further help was given by a recently formed IFS North America working group, alongside retailers from Spain, Asia and South America. IFS Food Version 6 was last updated in April 2014.

IFS commenced with the publication of IFS Food and then developed Standards for other sectors of the supply chain, such as IFS Broker, IFS Cash & Carry/Wholesale, IFS Food Store, IFS HPC, IFS Logistics and IFS PACsecure.

SQFSQFI has combined two standards:• The SQF 1000 Code, for primary producers• The SQF 2000 Code, for manufacturers, distributors and brokersTogether, these form a single standard for food safety ‘from farm to fork’. Additionally, by requiring bothregulatory and customer compliance, the SQF Code is equipped for an ever-evolving market. The SQF Program makes certifi cation attainable for even the smallest companies by dividing the process into three steps:• Level 1: Fundamental food safety controls, appropriate for low-risk products• Level 2: HACCP and ISO-based food safety program recognized by the Global Food Safety Initiative (GFSI)• Level 3: A comprehensive mastery of safety and Quality Management systems

FSSC 22000Founded in 2004, the Foundation for Food Safety Certifi cation has developed FSSC 22000, which is supported by ‘FoodDrinkEurope’, a representative body for the European food and drink industry. The scheme is recognized by the Global Food Safety Initiative (GFSI).

The FSSC 22000 Food Safety Management System provides a framework for effectively managing an organization’s food safety responsibilities. FSSC 22000 is based on existing ISO Standards, and

demonstrates that a company has a robust Food Safety Management System in place that meets the requirements of its customers and consumers.

Already, 9000+ organizations in 146 countries have achieved FSSC 22000 certifi cation – and with 100+licensed Certifi cation Bodies plus over 1,500 auditors now worldwide, the aim behind FSSC 22000 is to ensure total consumer trust in the supply of safe food and drinks.

Comparing commonly used GFSI-accepted standardsCompanies adopting the GFSI-accepted standards must demonstrate that they possess a food safety management system, have Good Manufacturing Practices (GMP), good distribution and /or good agricultural practices and have conducted Hazard Analysis and Identifi ed Critical Control Points where required, in line with HACCP principles.

Each scheme varies in scope and structure and the following chart analyses the basic differences amongst the most widely-used standards.

There is much to consider when comparing the standards, and producers may want to bear in mind:• Product characteristics• The company’s position in the supply chain• Current management systems• The company’s historic compliance with existing regulations• Customer /industry preferences

As noted previously, one standard may be the easiest to apply, but it may not offer the benefi ts

Sample Audit ProcedureThe fl owchart in fi gure 2 illustrates the standard procedure for obtaining FSSC 22000 certifi cation. Other procedures may vary slightly – however, this is an excellent basic representation of a certifi cation audit.

The process can be arduous, but experts within the certifying body and industry will be available to provide necessary guidance so as to ensure systems are compliant and safe.

Challenges AheadThe trend towards more stringent food safety and quality regulation continues, with new challenges concerning food safety and quality


being created by developments such as GMOs (Genetically Modifi ed Organisms), nanotechnology and the increase in international sourcing and trading of food. These developments are expected to create ever more demanding standards and regulations. Robert J. Parrish, Vice-President Global Food, SGS Geneva (Consumer Testing Services) believes that the following food safety issues will emerge in the coming years:• Organisations will take even more ownership of food safety to protect their brands• Even tighter controls will be established to safeguard the food supply chain• Traceability and integrated management programmes will become an essential part of food production

With these trends emerging, as well as equivalent changes in international and national laws, corresponding standards and certifi cation processes will be subject to regular revision. Some examples of recent legislation impacting certifi cation processes follow.

New Chinese Food Safety LawIn February 2009, the Standing Committee of the National People’s Congress of the People’s Republic of China passed the Food Safety Law of the People’s Republic of China after fi ve years of deliberation and review. The law became offi cially effective on the 1st June 2009. Apart from the Food Safety Law, there are over 3,000 food safety regulations and standards in China – and these have been published by bodies such as the Ministry of Agriculture (MOA), the Ministry of Health (MOH), and the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ).

China’s current food safety system involves at least fi ve departments, including Health, Agriculture, Quality Supervision,

Industry & Commerce Administration, and Food & Drug Supervision. These departments have different responsibilities for food safety; for example, Quality Supervision Administration monitors the food production sector, but when foodstuffs leave factories for sale, this is monitored by the Industry & Commerce Administration.

U.S. Food Safety Modernization Act (FSMA)In the U.S., the Food Safety Modernization Act became law under President Obama in January 2011. It shifts federal regulators’ focus from ‘responding to contamination to preventing contamination’. Implementation of the new regulations is in progress and covers:• Enhanced prevention controls• Increased frequency of mandatory FDA inspections• Stronger accountability for importers

In general, both the new Chinese Food Safety Law and the FSMA:• Strengthen monitoring/supervision powers• Toughen safety standards• Ensure recall of substandard products• Subject offenders to severe sanctionsIn addition to these more stringent requirements, global oversight bodies are working to ensure that certifi cation standards are ever more comprehensive and widely accepted. Consequently, more manufacturers and suppliers will fi nd themselves seeking certifi cation if they wish to stay ahead of legislative changes and ensure future profi tability.

The importance of certifi cationConsumers and governments worldwide are becoming increasingly concerned about unsafe food. News of recent contamination cases (such as the Enterohaemorrhagic Escherichia coli {EHEC} outbreak in June 2011) is often published and distributed widely and rapidly via electronic media, which clearly leads to reduced income for those suppliers involved in such contamination events – and may result in reduced income for an entire industry segment.

Being certifi ed according to a GFSI-accepted standard, such as IFS, SQF, FSSC 22000 or BRC, demonstrates a company’s commitment to focusing on safety. While all certifi cations deal with similar food safety-related concerns, it’s important to choose the right certifi cation (based on a company’s industry, needs and customer preferences), even as GFSI continues to work to create harmony among the approved scheme owners and provide a ‘Once certifi ed, accepted everywhere’ approach.

Knowing and implementing requirements according to one of these standards provides a framework for continually improving production quality processes. This helps to protect and enhance brand reputation and ensures future profi tability in a competitive global market.

THIS ARTICLE IS CONTRIBUTED BY METTLER-TOLEDO (S) PTE LTD

Figure 2: Standard procedure for obtaining FSSC 22000 certifi cation.


FOOD SAFETY

Supply chain transparency contributes to food safety, labour protection and prevents fraud

Benefi ts of Supply Chain Transparency

SUPPLY CHAIN

Increased consumer demand for a larger, more diverse set of products has resulted in a complex and globally dispersed supply chain. The result is a rise in issues of product safety, product fraud, and social responsibility.

Consumers in the meantime have become more concerned with health, wellness, and social responsibility. They are also demanding more information and accountability from brands.

Governments have responded with more stringent regulations forcing more disclosure of product and supplier information. The combination of factors has created a “perfect storm.” The combination of factors has resulted in the urgent need for a transformative approach to managing supply chain transparency.

The core industry challenge centers on four major areas:• Knowledge of all suppliers within the supply chain network• Knowledge of all ingredients and components• Knowledge of the manufacturer’s compliance to safety and social responsibility standards • Knowledge of the manufacturer’s facility country of origin

Most companies have the visibility to this information for their immediate suppliers and in some cases, they also have visibility to the raw material providers. However, the majority of organizations struggle to have visibility to the intermediate supply chain tiers. The opaque middle tiers in the supply chain can often be the origin of product safety, food fraud, and social responsibility issues.

What is required?Legacy solutions are complex, time-consuming and often resemble spreadsheets. In today’s technology, solutions must be simple and easy to use but yet powerful enough to make strategic supply chain decisions. Past solutions rely on one-to-one system connections while today’s innovative solutions link many-to many-systems resembling a social network model, to meet consumer expectations and drive consumer trust.

There are four key pillars for an industry solution:• Private workspaces – each company can manage its information• Network architecture – companies are able to connect like a social network, working on common data standards• Benefi ts for all stakeholders – everyone needs to see benefi ts, not just the brand owners• Data management and freshness – assure that data is accurate and timely

Where to Begin?Achieving transparency is a lofty goal. It is important to defi ne

what the objectives are in concrete terms. Many companies are approaching transparency initiatives focused on specifi c critical areas, but what is common in each is the ability to assess the entire supply chain, not just the fi rst tier.• Certifi cation Management – providing online, real-time access to certifi cations through all levels of the supply chain to attain a “farm to fork” level of compliance, not just for the fi rst tier of suppliers• Do I know that my entire supply chain has up-to-date safety audits?• Sensitive Ingredient Management – identifying key sensitive ingredients in the supply chain and assuring traceability of those products from farm to fi nished good – as well as understanding how those ingredients are transformed into processed products• Can I identify what other products might be impacted by a potentially harmful ingredient from a specifi c supplier?• Proactive Recall Risk Management – constant monitoring of the farm to fork supply chain for potential risks around food safety, food fraud or social responsibility• Can I assess my supply chain for potential suppliers that are producing in areas considered to be at high risk for child labor or modern slavery?

Acquiring TransparencyTransparency is a journey. It is important to defi ne objectives and clear attainable projects – but it is clear the industry is evolving to offer greater transparency to consumers. Transparency-One provides innovative solutions to manage detailed specifi cations and farm to fork supply chain visibility, assuring information accuracy and risk management.

LAURENT CORBAZ IS VICE PRESIDENT BUSINESS PLANNING AND CONTROL, CERTIFICATION AND BUSINESS ENHANCEMENT AT SGS

Recognising Excellence in Automation TechnologiesDate: 25 August 2016, Singapore

Time: 6:30 pm to 11:00 pm

Organised by the Manufacturing Group of publications at Contineo Media, the Asian Manufacturing Awards 2016 provides a distinct opportunity to honour control, instrumentation, and automation product manufacturers and service providers who, over the past year, have provided the best solutions to address today’s engineering and manufacturing challenges.

Award CategoriesAutomation & ControlBest Automation Systems IntegratorBest Embedded Systems ProviderBest Fieldbus Infrastructure ProviderBest Industrial Cyber Security ProviderBest Industrial Network ProviderBest Industrial Wireless ProviderBest Internet of Things ProviderBest Human Machine Interface ProviderBest Machine Vision ProviderBest Machine Safety Systems ProviderBest Process Control Systems ProviderBest Process Instrumentation ProviderBest Process Safety Systems ProviderBest Programmable Control Systems ProviderBest Robotics ProviderBest Variable Speed Drive Provider

Industrial SoftwareBest CAD/CAM Systems ProviderBest ERP Systems ProviderBest PLM Systems Provider

Best Supply Chain Provider (New)

Industry Solution (New) Best Pharma Solutions ProviderBest Food & Beverage Solutions ProviderBest Chemical Solutions ProviderBest Power & Energy Solutions ProviderBest Oil & Gas Solutions ProviderBest Water & Wastewater Solutions ProviderBest Pulp & Paper Solutions ProviderBest Refi nery Solutions Provider

Corporate Social ResponsibilityBest Solution for Sustainability

Special Awards (New)Industry Leader of the Year

Call for Entries14 March – 22 April

awards.manufacturingasia.co

For more information, please contact your Asian Automation Awards representative or:

Caroline Yee, Assistant Sales DirectorTel: (65) 6521 9751

Email: [email protected]

Arthur Ong, Account ManagerTel: (65) 6521 9767


Rechelle Tangcangco, EditorTel: (65) 6521 9784


OrganiserYour Professional Guide To Ingredients and Processing

Offi cial Media Supporting Media


FreshFactoryfor the

New and improved Ice Cream fi llerTetra Pak has launched an ice-cream fi ller designed for small and medium ice-cream producers looking to lower operating costs with minimum investment.

The Tetra Pak Ice Cream Filler A3 produces up to 18,000 ice cream cones per hour. It comes with a cone dispenser with high reliability with capabilities of handling different cones and cups. It has an easy-to-operate chocolate sprayer with exceptional accuracy as well as a precise lid dispenser, which improves standardization.

These features help manufacturers boost effi ciency by reducing waste, minimising stops and increasing overall speed, while ensuring product quality. Furthermore, the modular design of the machine offers signifi cant production fl exibility with simple setup and easy equipment changeovers. This allows customers to switch smoothly between different cone sizes or cups, as well as ice cream fl avours, in just a few minutes.

The new fi ller offers an effective solution, which improves cone handling and delivers different products on one machine. This function cuts operational costs, with pilot tests showing that customers are able to save up to 69,000 Euros per year on the cone dispenser alone as it reduces wastage.

The company sees particular demand for the line from customers in Southeast Asia and South America where new producers are entering the market, and also in Eastern Europe where existing manufacturers are looking for more production fl exibility.

The cone dispenser, chocolate sprayer and lid dispenser are also available individually for customers who want to upgrade their existing ice cream fi lling lines.

www.tetrapak.com

Custom Candy Processing System Dries, Cools and Screens Agglomerated Sugar and Recycles Fine ParticlesA sanitary, custom candy processing system from The Witte Company combines a vibrating fl uid bed dryer, cooler, screener and integral baghouse collector to dry agglomerated sugar, cool it with ambient air and screen out oversized chunks.

Each stage in the system uses the company's proprietary vibrating technology to gently advance the hot, sticky sugar from the dryer infeed to the screener discharge without lumping, clumping or clogging.

Developed for a major candy/food manufacturer, the entire food-grade system features 100% sanitary, stainless-steel construction for both structural and product contact areas with polished welds for smooth product movement.

Effective for agglomerated coffee, cereals and other food products, such as sugar, the design sets the baghouse collector directly atop the fl uid bed dryer to capture fi ne sugar particles entrained in the dryer airstream and return them to the process for recovery as fi nished product instead of allowing it to be lost as dusty waste.

The company’s signature design also captures the heated process air and returns it to the dryer for reuse for savings in energy and a reduction in air exhausted to the environment.

For wash downs, cleaning and maintenance, the fl uid bed dryer, cooler and screener are designed for easy access to the interiors without any tools, while the drying and cooling sections are set on casters and rails to roll out like a drawer.

www.witte.com

Test validated for dairy antibiotic testingDelvotest T, the testing tool developed by DSM Food Specialties has been successfully validated by two independent facilities in Europe and Asia in accordance with the European Community Reference Laboratories (CRL) guidelines for determining up to 27 antibiotic residues in raw cow’s milk and dairy ingredients, such as milk powders.

Delvotest T is a broad-spectrum test which identifi es a variety of antibiotics at EU MRLs, with particularly high sensitivity for tetracyclines. In this validation study, Delvotest T was evaluated against fi ve criteria, including the screening target concentration (STC) detection capability, false-positive (FP) and false-negative (FN) rates, robustness and cross-reactivity. The Delvotest T multi-residue test was reported as being easy to use, with no specialized analyst required, it is also cost effective

with no sample preparation needed. The result was delivered in three hours and incubation temperature change including delay of reading did not impact the fi nal result.

The presence of antibiotic residues in raw milk poses signifi cant risk to consumer health, including allergic reactions and antibiotic resistance. Delvotest T therefore provides a solution and is a tool for farmers, dairies and milk control laboratories to take specifi c measures to determine the safety and quality in cow’s milk by identifying antibiotic in residues.

www.delvotest.com

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