No crying over spilt milk?

The plant-based dairy industry in Europe was concerned its number was up last autumn when The European Commission voted in favour of the so-called Amendment 171 to place fresh restrictions on how manufacturers could package and market their products.

EU law already means words like "milk", "cheese" and "yogurt" can only be used to describe milk-based products originating from animals. Under Amendment 171, those curbs were to go further, banning dairy-based descriptors such as "yogurt-style" or "cheese alternative", as well as words like "creamy", from being used on plant-based alternatives. Packaging styles similar to dairy equivalents like milk cartons or blocks of butter and cheese were also set to be prohibited.

NGO ProVeg International, plant-based specialists including Oatly and dairy companies with plenty of skin in the plant-based game, such as Nestle and Danone, called for the amendment to be taken off the table, arguing it wasn't in the interests of consumers, hundreds of thousands of whom across Europe signed a petition protesting against the plan.

This week, the amendment was dropped, prompting celebration in plant-based circles, including among the corporates that are investing heavily in the area. "Pleased to see that Europe is listening to its consumers: Amendment 171 is off the table!" Star Chen, the CEO of Unilever's Food Solutions division, posted on LinkedIn. "Making the right food choices should not be made more difficult."

Europe's dairy industry, however, was not crying over spilt milk. Alexander Anton, secretary general of The European Dairy Association, in fact, claimed during the recent trilogue phase of the EU's legislative process – which covers talks between EU member states, the Commission and the European Parliament – that "some forces proposed what they call a 'compromise text' of Amendment 171". That text, he suggested, "perverted the Amendment 171 into the exact contrary of the text voted by the European Parliament in October", adding: "So, the withdrawal of this 'compromise' amendment text is good news for the lactosphere.

Intriguing but, apparently, the dropping of the Amendment hasn't left any sour notes in dairy circles. That said, there's no question the traditional dairy industry has a job on its hands competing with a growing – and buoyant – plant-based market. Demand for plant-based alternatives continues to rise and trying to do battle on words such as "creamy" and over how plant-based milks are packed seemed futile from the outset.

The traditional dairy industry would do better to take its fight into other areas, emphasising what it sees as the positive credentials of its own products, not least with consumer scrutiny growing over how plant-based products are processed and over the make-up of the ingredients used in recipes. That looks set to be the next competitive frontier.

Dean Best

Managing Editor

Mondelez confirms deal to buy snacks maker Chipita

Snacking and confectionery giant Mondelez International has confirmed media speculation by securing a deal to buy Greece-based snacks maker Chipita for a price tag of about US$2bn.

The Cadbury chocolate owner has reportedly been chasing Athens-based Chipita for a number of years but its founder and chief executive Spyros Theodoropoulos was said to have been reluctant to sell. Reports then emerged in April over a possible deal.

Theodoropoulos has now succumbed. ”Chipita, for more than 40 years, based on quality and innovation created a new category of snacks loved by consumers internationally”, Theodoropoulos said in a statement (May 26). “I am certain that the acquisition of Chipita by Mondelez International, one of the world’s leading snacking companies, will create new prospects for its people and products.”

Chipita makes corn snacks, crisps and baked snacks under brands such as its namesake, along with 7 Days, Finetic and Chipicao, which together generated sales last year of about $580m. The business has 13 manufacturing plants and distributes its products in more than 50 countries.

US-headquartered Mondelez said the deal brings new categories to its own set-up, and a “significantly increased presence in the fast-growing central and Eastern European markets where Chiiita’s business is especially well-positioned”.

“Welcoming Chipita’s delicious pastry products into the Mondelez International family advances our strategy to become the global leader in broader snacking”, Dirk Van de Put, the chairman and CEO of the Oreo biscuit owner, said. “Their iconic brands and significant scale across so many attractive geographies make them a strong strategic complement to our existing portfolio and future growth ambitions in Europe and beyond.”

The Chipita transaction adds to a busy year for Mondelez in terms of M&A. It acquired the UK-based sports nutrition business Grenade, and in March struck deals for Australian biscuits and crackers firm Gourmet Food Holdings and better-for-you chocolate and snacks maker Hu Master Holdings in the US.

Mondelez said it will use Chipita’s central and Eastern European network to enhance its own distribution in the region, and will also pursue innovation and co-branding opportunities to enter new categories.

The deal is subject to competition approvals and does not include Chipita’s meat-processing business or its minority interest in an Indian joint venture with Britannia Industries. That JV was formed in 2017 and is known as Britchip Foods, with Chipita holding 40%.

Marfrig Global Foods takes minority stake in Brazilian meat peer BRF

Brazilian meat giant Marfrig Global Foods is to acquire a minority stake in local peer BRF.

Publicity-listed Marfrig announced on Friday (May 21) it had acquired a 24,23% interest in BRF through the purchase of more than 196 million shares, explaining its aims through the transaction are to diversify “investments in a segment that has complementaries with its sector of activity”.

Marfrig, headquartered in Sao Paolo, said it has no plan to elect members to the BRF board nor to “exert influence over the activities” of its Brazilian peer.

BRF, which mainly processes chicken and pork , acknowledged the deal via its own statement at the weekend, adding that Marfrig also has no plan to “promote changes in the control or in the administrative structure “ of the company.

Marfrig and BRF had entered discussions in 2019 over a possible collaboration. However, that never materialized.

At the time, Marfrig said a merger would result in “the creation of a world leader in the protein market with wide geographical and product diversification” and it would reduce risk and “exploit operational and financial synergies due to the balance and complementarità of products, services and geographical diversification”.

Last year, Marfrig and another Brazil-based meat group, Minerva Foods, both denied they had opened merger talks.

Meanwhile, sources for news agency Reuters said the minority deal between Marfrig and BRF amounts to US$800m.

In 2020, Marfrig generated net revenues of BRL 67.84bn (US$12.58bn). BRF posted sales of BRL 39.5bn

FrieslandCampina sells Russia unit to German peer Ehrmann

Dutch Dairy Cooperative FrieslandCampina has sold its subsidiary in Russia to German peer Ehrmann.

FrieslandCampina said the deal to sell Campina LLC, struck for an undisclosed sum, would allow the co-op “to focus on consumer markets elsewhere”.

Roel van Neerbos, president of FrieslandCampina’s consumer-facing Food&Beverage division said: “This divestiture is part of FrieslandCampina’s previously-announced strategy to review its position in various markets. Under Ehrmann’s umbrella, our Russian consumer dairy business will be able to further develop and realise its full growth potential.”

Ehrmann is set to acquire a dairy facility in Stupino, as well as the brands Fruttis and Nezhny. The German business will also be the distributor of FrieslandCampina’s Frisco specialized-nutrition products in Russia.

Christian Ehrmann, the CEO OF Ehrmann, said “This acquisition reflects Ehrmann’s strategy of growing its market share in Russia with locally produced, strong brands.”

The deal is subject to the regulatory approval of authorities in Russia, Kazakhstan, Uzbekistan and Belarus. The closing of the transaction is expected by the end of June.

Last week, FrieslandCampina announced an agreement to sell its Nutrefeed animal nutrition business in order to focus on consumer products.

World Pork Expo’s Seminars Educate on Latest Pork Insights

DES MOINES, Iowa, May 6, 2021 — Professionals in the pork industry will be the first to have access to the latest production and management strategies at this year’s World Pork Expo. This year’s line-up of PORK Academy and Business Seminars gives producers the opportunity to learn more about topics such as sustainability, data, industry collaborations, nutrition and more.

Visitors can find these seminars, networking opportunities, the world’s largest pork trade show and more at the 2021 World Pork Expo, presented by the National Pork Producers Council (NPPC), taking place June 9-11 at the Iowa State Fairgrounds in Des Moines, Iowa.

“These seminars provide a fantastic opportunity for all pork professionals to stay up-to-date on the latest information and insights available,” said NPPC President Jen Sorenson, communications director for Iowa Select Farms in West Des Moines, Iowa. “The Expo is truly a can’t miss event for those who are interested in how they can improve their own operations with the newest technology.”

More than 10 Business Seminars to Choose From

This year’s line-up includes a variety of sessions including multi-part panel discussions and Q&A opportunities. All Business Seminars take place in the Varied Industries Building. Here’s the schedule of events:

Wednesday, June 9:

8:00 a.m. – 8:45 a.m. — The evolution and revolution of the swine tech ecosystem. Driving business and production results with a software platform via connections, collaboration, and analytic insights, sponsored by MetaFarms.
9:00 a.m. – 9:45 a.m. — Learn firsthand how MetaFarms and Industry Affiliates are helping producers get the upper edge through the MetaFarms Production Gateway highlighting our AgView integration with the National Pork Board.
10:00 a.m. – 10:45 a.m. — How to use analytics to control costs, uncover opportunities, and create a successful data culture within your organization — sponsored by MetaFarms.
11:00 a.m. – 11:45 a.m. — Understand how the technology of today and tomorrow has practical uses in production systems. MetaFarms asks some of our forward-thinking customers to share how they are leveraging technology to identify issues using analytics, formulate plans to fix these issues and lastly, determine if their solution was successful.

Cost Effective Strategies for Sustainability in Pork Production: A four-part panel discussion for producers, sponsored by the National Pork Board and IFF Danisco Animal Nutrition.

1:00 p.m. – 2:00 p.m. — Understanding Sustainability. What are the Benchmarks for Producers Outlined by the National Pork Board and the USDA? Land use, water consumption, energy consumption, carbon emissions and more; what’s been accomplished and what lies ahead?
2:00 p.m. – 3:00 p.m. — Tools for Producers: What You Feed Your Pigs Can Impact Manure Management. Listen as our panelists discuss manure management practices that influence quality, application, environmental footprint and more.
3:00 p.m. – 4:00 p.m. — Nutrition and Sustainability: Driving feed strategies to meet environmental stewardship and cost efficiency goals; options to put you in the driver’s seat.
4:00 p.m. – 5:00 p.m. — Sustainability: Effectively Communicating Your Story. Science and soundbites for producers.

Big Ideas In Pork: Whether it’s big ideas or innovative thinking you’re looking for at this year’s World Pork Expo, Cargill-Provimi is pleased to bring you topics and experts to tackle the big challenges and the solutions needed to help pork producers, and our communities, thrive.

1:00 p.m. – 2:00 p.m. — Rethinking Methane: Animal Agriculture’s Path to Climate Neutrality
2:30 p.m. – 3:30 p.m. — Disruption: Technology and the Pork Systems of the Future

Thursday, June 10: Learn the latest about sow health, performance and care presented and sponsored by Zoetis.

10:00 a.m. – 10:45 a.m. — Becoming Vaccinologists: Critical Vaccination Training for Caregivers
1:00 p.m. – 1:45 p.m. — Successful Sow Health Through Individual Sow Care
3:00 p.m. – 3:45 p.m. — Improve Treatment Outcomes With Individual Pig Care Training

And don’t forget this year’s can’t miss PORK Academy events. Included with admission, attendees can participate in 6 free sessions. Presented by the National Pork Board and Pork Checkoff, the PORK Academy seminars give producers a deeper understanding of their checkoff investments.

There’s still time to register to join thousands of pork industry professionals at this summer’s hottest event. Learn more about the 2021 World Pork Expo by visiting our website. All the details including registration, daily event schedules, hotel availability and more are available online.

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