The bird that threatens African food securityfoodprocessingafrica.com/2017/FPA-April2017.pdf · The bird that threatens African food security HOW SUPERMARKET ... Parmalat recognises

March/April 2017

The bird that threatens African food security

HOW SUPERMARKET GIANTS KEEP OUT SMALL SUPPLIERS

HIGH-PRESSURE PROCESSING: THE FUTURE OF FRESH

Awards for Street Food entrepreneurs

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March/April 2017

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HIGHLIGHTSKenafric goes for bold expansion 4

Lesaffre bakes exellence in Zim 5

African insomnia guaranteed! 5

Parmalat recognises Kotapreneurs 6

SUPERMARKET GIANTS VS SMALL SUPPLIERS 8

Front-of-pack labelling: Will it help? 10

THE SMALL BIRD THAT’S A CURSEON AFRICAN FOOD SECURITY 12

Ghana’s biscuit leader has big plans 13

HPP is a fresh food game-changer 14

Heat & Control’s 25 years in Africa 16

Afrox knows how to chill quickly 18

Mageu gets a makeover 19

Extrusion: it’s a winning solution 20

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South African private equity group Metier

together with French investment firm Amethis recently announced their acquisition of a significant minority stake in the packaged food business of Kenafric Industries.

Nairobi-based Kenafric was founded in 1987 by the Shah family and has grown into a major FMCG group in East Africa directly employing over 1500 people.

Kenafric enjoys a leading position in the packaged food sector, being one of the best known local FMCG brands in East Africa. Kenafric is engaged in the manufacture, branding and distribution of confectionery, snacks, ready-to-drink juices and culinary spices products.

Metier says the company is unique in the packaged food sector in East Africa, having built strong entry barriers based on: (1) a capillary distribution network, (2) strong premium brands and (3) a pan-African regional footprint. Kenafric sells around 45% of its production outside Kenya.

Kenafric has reached a critical size and now intends to expand into a regional packaged food platform, leveraging on its existing strengths of

an excellent route to market to broaden its product range and basket offering.

The fragmented East African market offers a unique opportunity for acquisitions and

strategic partnerships. The stated aim is to be able to supply the entire range of snacking products in a kiosk through adjacencies and brand extensions. Kenafric, Amethis and Metier have been working together on a promising acquisitions pipeline.

“Having built a trustworthy relationship with Kenafric’s management over the

past years, we are excited about this partnership which will allow Kenafric to leverage on its strong existing base to expand into a diversified packaged food platform in East Africa. Thanks to this partnership, Kenafric is now poised to engage into a new phase of its history" said Jean-Sebastien Bergasse, the

Amethis Partner in charge of the project. For Metier, a leader in Southern

African Private Equity, this marks its first investment in Kenya. Metier enjoys a long and successful track-record in private equity investing in Southern Africa and has already realized and successfully exited similar transactions in the packaged food industry.

“Metier, as a partner to both the Shah family and Amethis, are glad and proud to seal a partnership with Kenafric to support the business’ future

evolution while contributing to the development of the regional consumer goods sector” said Paul Botha, Metier’s managing partner

Commented Bharat Shah, Chairman at Kenafric: “We are excited about the partnership with Amethis and Metier. Through this investment, we will seek to leverage the deep relationships that they enjoy in the region, operational support and a strong capital base to accelerate future growth.’”

www.kenafricind.com

DEALMAKING

Kenafric teams up with private equity partners

Kenafric is a major player in the East African confectionary sector.

”Kenafric is now

poised to engage

into a new phase

of its history”

http://www.kenafricind.com


The world's largest yeast producer, ¸France’s Lesaffre, has opened its first Baking Center of Excellence in Southern Africa.

The centre for bread-making expertise, in Harare, will be dedicated to training, technical support, product and process development and commercial presentations of the products.

In September 2015, Lesaffre established Lesaffre Zimbabwe through the acquisition of a majority stake in Anchor Yeast. During the past year, Lesaffre has made a series of major investments in its Zimbabwean subsidiary.

“The investments include the Baking Center and the ongoing modernisation and extension projects at the Gweru plant," said Bernard Laguerre, General Manager of Lesaffre Zimbabwe. "These investments have been made in collaboration with the best local and external

suppliers, with the aim of improving competitiveness within Zimbabwe and beyond the borders."

Laguerre said the Baking Center will be a “catalyst of ideas, a constant source for devising and perfecting solutions for improving recipes or bread making techniques, creating and developing new products and expanding knowledge and expertise. This Baking Center will be part of a network born in France in 1974 and today composed of 38 centres, with more than 300 technicians in bakery on the five continents.

Added Antoine Baule, CEO of Lesaffre: “We are very pleased to

continue to invest in Zimbabwe where we have been present for just over a year. Currently, Lesaffre is in the process of upgrading and expanding the Gweru yeast plant, the main focus being to improve quality and increase exports into the region.”

BUSINESS

LESAFFRE OPENS BAKING EXCELLENCE CENTRE IN ZIM

Africa has been known to give some people sleepless nights, but now it’s guaranteed! Black Insomnia Coffee, developed in South Africa, has been confirmed after lab tests in Switzerland as the world’s strongest coffee.

Black Insomnia has been described as the “deadliest of all” by consumer information site Caffeine Informer.

The brand was founded by Capetonian Sean Kristafor last June and after some local success it’s now being sold worldwide by mail order.

A coffee brand called Death Wish previously claimed the World's Strongest Coffee crown, but the new lab tests confirm that Black Insomnia has 6,35% more caffeine.

Kristafor warns that it should be used with caution, and only by people who have a high tolerance to caffeine should drink it. One cup offers double the recommended dose for adults.

He says Black Insomnia is made from special robusta beans that have the highest levels of caffeine.

In Switzerland, samples were tested via liquid chromatography - the separation of a mixture by passing it in a solution - and Black Insomnia has 17.5 grams of caffeine per kilogram of coffee.

African insomnia: now it’s guaranteed

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ENTREPRENEURS

Similar to a bunny chow, the Kota comprises a hollowed-out quarter-loaf of bread filled with various

ingredients, including hot chips, polony, Russian sausages, egg and cheese. It was the cheese that presented the window of opportunity for Parmalat, and that resulted in it unexpectedly supplying a premium product – individually wrapped and branded single cheese slices – to informal fast food and retail outlets in townships across the country.

That move now sees Parmalat leading the Kota market as the preferred single cheese slice provider – no mean feat considering it is estimated that 200 million cheese slices worth R1-billion are consumed in SA every year.

However, it wasn’t this exponential growth that captured the attention of Parmalat but rather the opportunity to support these informal businesses in such a way that their businesses would flourish as a result.

“It was this thinking that gave rise to the Parmalat Phuma Phambili programme in 2015. Says Parmalat CEO Paul Verhaak: “We consider small businesses to be the economic heartbeat of South Africa, and believe they need all the help they can get to not just survive, but thrive. We soon

realised that beyond just selling our products to township fast food and retail outlets, we could actually add value to their businesses by helping them become more sustainable and creators of much-needed local employment,”

The programme aims to support and promote small businesses in the informal market; work with emerging fast food and retail businesses as a business enabler; and give these township start-ups a much-needed competitive advantage.

To participate, Kota-producing outlets must register their businesses in the programme; buy and use Parmalat Cheese Slices in their Kotas; and then monitor and track their sales.

The incentive for businesses to use Parmalat Cheese Slices is the opportunity to gain access to support from Parmalat in the form of access to improved equipment and branding; enhanced marketing collateral; and more efficient production to help entrepreneurs achieve better margins. Programme participants also receive items like TVs, fridges and

chromadek signage boards to help give their businesses a more competitive edge.

“Parmalat Phuma Phambili isn’t a handout. It’s our salute to these entrepreneurs’ forward-thinking attitudes, and our commitment to supporting them to get ahead and thrive both in business and in life,” adds Verhaak.

Each year, the top-performing businesses are recognised and rewarded for their efforts with access to further business support. The 2016 top performers were announced at an event in Johannesburg recently.

“These entrepreneurs recorded phenomenal results last year, with sales increases ranging from 55% at Pule’s Fast Food to 317% in the case of Zakhele Fast Food. Significant employment opportunities were created as a result of these increases,” says Verhaak.

Winning Kotaprenuers, from left: Luyanda Kunene (on behalf of Betty Ndawonde), Doris

Matatanya, Parmalat’s Paul Verhaak, Busi Dladla, Mrs Babie (on behalf of Pule Babie

and Maryjane Ngwenya.

Parmalat backs street food genius with Kotapreneur awardsA R10 billion market sector

employing up to 70 000 people.

These are statistics one expects

of a rapidly growing segment

of the formal economy.

Remarkably, they relate to the

humble township street food,

the Kota. Dairy giant Parmalat

has not only devised an

innovative way to tap into this

market, but to nurture strong

brand loyalty among



How supermarket giants keep small suppliers out

By Reena das Nair, Senior

Researcher, Centre for

Competition, Regulation

and Economic Development,

University of Johannesburg.

This article is part of a series

of studies titled “barriers to

entry”, specifically looking

at the expansion of regional

supermarket chains in

southern Africa.

Supermarkets are a key route to market for many suppliers of food and household consumable

products. The growth of supermarket chains in southern Africa presents important opportunities for suppliers, as it potentially opens up much larger regional markets for them. Supermarkets can therefore be a strong catalyst to stimulate suppliers in food processing and light manufacturing industries in southern Africa.

But even the most efficient suppliers with competitively priced, high-quality products are unlikely to succeed if they can’t get their products to consumers. Here, large supermarkets play a key role. Onerous requirements and exertion of buyer power by large supermarket chains can result in small- and medium-sized suppliers and entrepreneurs failing to enter and participate in the economy.

We examined the obstacles to accessing shelf space in supermarkets in Botswana, South Africa, Zambia and Zimbabwe. The research revealed a range of costs that suppliers incur even before a single unit of their product is sold off supermarket shelves in each country.

Supplier development initiatives have been put in place by supermarkets and governments. But these have had limited success because they are restricted in scale and scope, are largely ad hoc, and don’t have a regional development perspective in mind.

There is a need for more co-ordinated, sustainable and regionally focused interventions to increase the participation of suppliers in supermarket supply chains. These should aim to

Continued on next page

RETAILING


From previous page

reduce barriers to entry by, for example, curbing supermarket buyer power and building capabilities of suppliers.

Supermarket buyer power

The formal South African supermarket industry is concentrated, with only a handful of large chains holding more than 70% of the national market share. South African supermarket chains also have a strong and growing presence in each of the other countries assessed, although recent years have seen the emergence of other African and global chains too.

Large supermarket chains therefore have considerable buyer power, and are often able to control pricing and trading terms with suppliers. This can include a range of fees such as listing or support fees paid by suppliers to get their products listed in supermarket books.

These fees can be prohibitive for small suppliers. Estimates of listing fees in South Africa range from US$350 to $3,500 per year for a single product line of a basic food item on the shelf. They can go as high as $17,000 to $20,000 for prime till positions for products like sweets and lollipops for a limited time period.

In Zimbabwe, listing fees can be up to $2,500 per product line, with $50 to $100 for the introduction of additional new product lines by the same supplier.

Suppliers are also often required to offer supermarkets settlement discounts for paying them within the number of days stipulated in the trading terms. This varies depending on the supplier.

Long payment periods put considerable pressure on suppliers’ cash flow and working capital which is problematic particularly for small suppliers. Local suppliers in Zambia raised this as a key reason for non-participation in supermarket value chains although it was a concern in all the countries studied.

Over and above the advertising costs faced by suppliers themselves in creating brand awareness for their products, supermarkets require them to make a host of additional payments. These can include discounts off the purchase price for indirect advertising; contributing

towards promotions. Our research showed that it can cost anything from $2,500 to $7,000 to promote a single product line as a contribution to the costs of the supermarket advertising through TV, newspapers and flyers; and paying to participate in different promotions held by supermarkets such as Easter and Christmas promotions.

A range of other fees also apply, varying by supplier and according to industry. These include general discounts, fixed or variable rebates based on sales volumes, transport discounts and swell or wastage allowances.

Cumulatively, the various fees can add up to at least 10-15% off the price of the product sold to supermarkets, placing considerable strain on supplier margins.

General access to good shelf space often comes at further costs. It is critical for successful sales that products are displayed where shoppers can easily see them. Eye-level shelf space is often taken up by dominant suppliers.

Similarly, access to refrigeration space is important for suppliers of cold products such as soft drinks, ice creams and frozen food. There have been competition cases and in South Africa that have recognised the harm to competition of dominant suppliers imposing exclusivity requirements on fridge space.

Over and above legal requirements such as compliance with national standards, food safety, labelling and packaging requirements, suppliers also have to adhere to private standards imposed by supermarkets. These can include barcoding and specific packaging requirements as well as sustainability criteria and religious requirements (such as halaal and kosher certicfications).

These can also include higher accreditation standards which often involve on-going audits at the supplier’s cost.

Helping emerging suppliers

Codes of conduct between suppliers and supermarkets can be a useful way to control the exertion of buyer power.

In the UK, for example, the Groceries Supply Code of Practice was set up specifically to oversee the relationship between supermarkets and their suppliers following an inquiry by the

former Office of Fair Trading.Similarly, in Ireland and Spain,

there are plans to institute voluntary or mandatory codes of conduct in the grocery sector to govern commercial relations between suppliers and supermarkets in the food chain.

We recommend that such codes also be set up in southern Africa. Given the multinational nature of supermarkets in the region, these codes can be harmonised across the region.

Supermarkets can also play an active role in building the capabilities of suppliers. Almost all supermarkets in South Africa have some form of voluntary supplier development program in place.

In some instances, large supermarkets have been mandated to set up supplier development programs. For example, as part of the merger between Walmart and Massmart, the merged entity was required to set up a supplier development fund. Around $16.7 million was allocated to be spent over five years to develop suppliers.

Some aspects of the program involving farmers were unsuccessful. But there have been positive outcomes for some black entrepreneurs in food processing. One beneficiary, Lethabo Milling, a new entrant producing maize meal, received around $110,000 towards refurbishing his plant.

And the company was able to secure a loan from a commercial bank on the back of a guaranteed route to market through supplying Massmart stores in South Africa. Lethabo Milling also received additional support through training, waived listing fees and fast-track payments.

Successfully developing supplier capabilities in the region requires a much larger, long-term and commercially oriented approach by supermarkets in partnership with governments. This can be done through the creation of supplier development funds similar to the Massmart/Walmart programme. Funding can also come from fines levied by the competition authorities in abuse of dominance or cartel matters in each country.

This article first appeared in The Conversation

RETAILING

http://theconversation.com


Overweight and obesity are a growing public health challenge, both in South Africa and globally.

As indicated in the South African health study, the increased burden these diseases add to the incidence and risk of non-communicable diseases is immense. The fact that this burden will also be transferred to an under pressure health system is cause for concern.

As a strategy to fight the growing disease burden, nutritional labelling was identified as a way to inform consumers and encourage them to make better, healthier choices. The set format of the nutrient declaration (what is commonly referred to as the nutritional information table or the nutrition facts table, depending on country) allows for comparison of the nutritional quality of similar products, thereby encouraging the consumer to select the healthier option.

Nutritional labelling is defined by the Codex Alimentarius Commission (CAC) as the description of the nutrient content of a food for consumer awareness and is comprised of the nutrient declaration and supplementary nutrition information. Nutrient declarations are usually found on the back-of-pack or the side panel. Nutrient declarations are becoming mandatory in more countries and territories, with the USA, European Union (EU), United Kingdom (UK) and most of South America already having it as a mandatory requirement.

In line with the Codex General

standard for labelling, South Africa and other countries only make the need for nutritional information

mandatory where nutrient content claims are made.

What is Front-of-Pack Labelling?

Supplementary nutrition information includes front-of-pack (FOP) labels. Front-of-pack labelling refers to simplified, at a glance nutrient declarations; they are clearly visible as they are on the main panel of packaging. The positioning and simplified structure allow for a quick assessment of the product and, while it is not a replacement for the nutritional information table, it is used in conjunction to improve consumer awareness of nutritional information.

Front-of-pack labelling was first introduced by non-profit organisations

(NPO) and government bodies from around 1985. The American Heart Association (AHA) launched the Heart-Check Mark in 1987 as a strategy to combat cardiovascular disease and other risk factors for cardiovascular disease by showing consumers products that are better for them.

Similarly, in 1989, the Swedish National Food Association launched the Green Keyhole, also initially designed to combat cardiovascular disease and associated risks.

Since then, various systems have been launched by NPOs and government bodies.

The American IOM report (2010) on front-of-package nutrition systems classified the varied systems as nutrient specific, summary indicator and food group information.

FRONT-OF-PACKLABELLING:DOES IT HELP?

For countries weak in

nutritional literacy (are

there any that aren’t?),

simplified front-of-pack

(FOP) labelling can cut

through the jargon and

encourage healthier

lifestyles. Mutsa Rwasoka,

Food Labelling Consultant

at Mérieux NutriSciences

in Johannesburg, explores

the FOP landscape.

LABELLING


Nutrient Specific Systems (NSS) Summary Indicator Systems (SIS) Food Group Information Systems (FGIS)

Indicates the amount per serving of select nutrients, or symbols based onclaim criteria

Single symbol, icon or score provides summary information about nutrient content of food

Symbols are awarded to food products based on presence of a single food group or ingredient

Examples: UK traffic light, GIFSA, GDA, health star rating

Example: Keyhole, Heart & Stroke Foundation – Heart mark, Diabetes SA, Choices

Examples: Whole Grain and 5 A Day

LABELLING

Traffic Light System

The traffic light system is an example of a nutrient indicator system. It is similar to the guideline daily amount (GDA) indication, but adapted to direct the consumer to the healthier choice. The traffic light system, which was introduced by the UK Food Standards Authority (FSA) in 2007, was proposed as an aid to the European Union labelling regulations EU Regulation 1169/2011 and standardised the format due to the presence of varying systems in the market.

The sugar, fat, saturated fat and salt content of a product are graded

into green, amber or red – much like a traffic light.

• Green - indicates frequent consumption

• Amber – indicates less frequent consumption

• Red – indicates foods which should be limited

Due to the prominent positioning of the traffic light, consumers can quickly see and select products which are healthier. However, it has been argued that traffic lights can add to the confusing amount of food nutrition information. For instance, if two similar products have two green and two red nutrients, which one do you choose? The nutritional literacy of the population will also decide how useful traffic lights really are.

Adaptations of the label, although not FSA prescribed, include a summary traffic light to show the overall status of a product in order to make the decision even easier for the consumer.

Traffic light labelling is not mandatory.

Keyhole

Summary indicator systems tend to have a set of qualifying criteria that a product must meet to allow for use of the

symbol - in line with the nutrient profiling model proposed by SA’s draft labelling regulation R429/2014.

As with the nutrient-specific systems, this will usually take into consideration fat, saturated fat, sugar, sodium/salt and dietary fibre.

The Swedish Keyhole is one of the oldest of the systems, having been introduced in 1989. As of 2009, the programme has been adopted by Denmark and Norway as well.

Several studies have shown that the keyhole is effective in encouraging awareness and heathier eating behaviour throughout the population.

At the adoption of the Keyhole in Norway (2009), the number of Keyhole products on the market was 409. By 2014 this number had reached 2000. This demonstrates that the system has encouraged manufacturers to reformulate products to comply with the criteria.

The number of consumers who recognise and understand what the symbol means for them also increases and adds to the impetus for manufacturers to provide products that will be Keyhole-compliant. The criteria for the Keyhole are reviewed based on the nutritional requirements of the general population, although, the criteria and acceptability of some foods are based on algorithms.

Summary systems are easier to recognise and do not require the

consumer to have strong nutritional literacy.

The presence of the mark means that the product is lower in fat, saturated fat, trans fat, sodium and/or higher in dietary fibre. Certain foods such as ice cream and junk

foods do not qualify for the mark.Whole Grain

Food group information systems alert the

consumer to the presence of a specific food, as opposed to a nutrient(s). Fruits and vegetables, as well as whole grains, are ideal for this type of labelling.

In 2005, the Wholegrain Council introduced the whole grain stamp, which can be used on products which contain at least 8g of whole grain, and indicates the amount of whole grain present.

The 5-a-day campaigns launched in various countries to promote the consumption of at least five portions of fruit and vegetables per day were extended to products.

Products may indicate that they contain two, three, four or five of the recommended minimum five-a day portions.

South Africa

South Africa does not presently have any regulated FOP labelling. The food industry uses guideline daily amount (GDA) indication as voluntary FOP labelling. This is a standard nutrient-specific indicator and, in some cases, only highlights the energy value of the product.

Additionally, endorsements permitted by the National Department of Health (NDoH) for Glycaemic Index (GI), Diabetes SA and the Heart and Stroke Foundations’ heart mark are summary

Continued on next page


African agriculture experts have been meeting in

Khartoum to decide on fresh strategies to combat one of the biggest threats to food security on the continent: quelea birds.

Quelea, a small red-billed bird, remains one of the most dangerous agricultural pests threatening food security in Africa. Scientists estimate the number of quelea, originating from Africa, at around 100 million, with an average daily grain consumption of 10 grams per bird - a flock of two million quelea birds can devour 20 tons of grain in one day.

Sudan's Agriculture Minister Ibrahim Al-Dekheiri told the conference that flocks of quelea birds “attack and destroy millions of hectares of agricultural farms and fields annually, leading to substantial grain deficiency in the African continent.” The FAO estimates the agricultural loss resulting from quelea birds at over 50

million dollars annually.Elwathig Osman Mukhtar, Assistant

FAO Resident Representative in Sudan, said: "These birds are a great threat to Africa's food security, one of the main causes of famine, therefore, we must unite our efforts and find applicable

solutions in the face of this risk.”

Quelea birds are found in several African countries all the way from South Africa to North Africa such as Tanzania, Kenya, Ethiopia, Mauritania as well as the African coast.

Sudan has been suffering from quelea bird flock attacks against agriculture, particularly in the Gezira State in central Sudan and the Northern State in Northern Sudan, which constitute major agricultural areas for grain cultivation, namely maize and wheat.

Dr. Fawziya Abbas, Deputy General Director of the Plant Protection Directorate in Sudan said Sudan was one of the most affected African countries by quelea birds.

"Thousands of farms are affected by quelea birds' flock attacks, and local measures have failed to decrease the catastrophe. We look forward to finding scientific alternatives.”

FOOD SECURITY

Small bird is a huge problem for Africa’s food security

From previous page

indicator systems which can be seen on products in the market.

The various systems identify foods which are suitable for special dietary purposes. These government-endorsed FOPs support government’s agenda to reduce NCDs.

FOP labelling is convenient. Becker et al. 2015 have noted that FOP labels make it faster for consumers to find and assess nutritional information. The idea being that consumers notice information and use it to make healthier decisions,

with the net result being healthier eating behaviour.

In contrast to nutritional information tables (which may be confusing with various units and formats), FOP systems do not require high nutritional literacy to be understood.

In particular, the summary indicator systems give consumers all the information they need, so the busy mother trying to avoid being stuck in traffic after work does not have to spend too much time trying to figure out which product is better for her family.

FOP systems which are regulated

lead to reformulation and thereby put more healthy options on the consumer’s shelf. It should also be noted that studies comparing differing systems found that endorsement by national and international health organisations increased the credibility of the labelling format.

Overall, front-of-pack systems may be useful tools for consumers to make healthier food choices, with systems indicating the nutrients of concern and providing guidance to the consumer being particularly useful.

However, the format needs to be carefully selected so it does not add to consumer confusion.

Front-of-pack labelling


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Big growth plan forGhana’s leading biscuit maker

Trade & Industries Minister, Mr. Alan Kyerematen, addressing guests

at the factory inauguration ceremony as his Singapore counterpart, Dr.

Koh Poh Koon, (second right), Mr. V. Srivathsan, Managing Director and

CEO for Africa & Middle East and Mr. Amit Agrawal, Country Head of Olam

Ghana, look on.

After strong domestic growth, Ghana’s Olam’s Nutrifoods Biscuit company is expanding into the West African market following the recent completion of major expansion works

and the launch of its factory in Tema.Jointly owned by Singapore’s Olam International (75%) and

Sanyo Foods of Japan (25%), the Nutrifoods facility is currently the leading biscuit factory in Ghana. The company invested US$8.25 million in expansion work, upgrading the capacity of the facility with new state-of-the-art production equipment and technology, including an additional third production line.

The expansion has strengthened Nutrifoods’ position as the number one biscuit producer in Ghana, commanding a 30% share of the local market. It also increased employment by 150 jobs.

The completion of the project has been hailed by stakeholders as a major milestone not only for Nutrifoods but also for the entire food manufacturing sector in Ghana. An inauguration ceremony held at the factory was attended by the Minister of State for Trade and Industry of Singapore, Dr Koh Poh Koon and Ghana’s Minister for Trade and Industry, Alan K Kyeremanten.

At the event, Dr Koh congratulated Olam on the inauguration of their new factory and expressed hope that more Singapore companies would participate actively in Ghana’s growth.

Minister Kyeremanten said the private sector would always play a crucial role in the country’s developmental agenda enabling environment for all private businesses to thrive. “There are a lot of opportunities out there for Ghanaian companies, especially with the African market now about to become globalized.”

CONFECTIONERY


HPP. HPP. HOORAY!Africa’s largest high-pressure pasteurisation ‘tollgate’ has opened in Johannesburg. Bruce Cohen went to see what all the excitement is about.

High Pressure Processing or Pasteurization (HPP) has been a game-changer for the food and

beverage industry and is gaining rapid momentum worldwide. For manufac-turers, it’s the holy grail of significantly-increased shelf life without compromising safety or using nutrient-destroying heat or preservatives while still retaining fresh and flavourful products. And consumers, too, demanding healthy, chemically-free, clean-label foods, are fast recognising the value of HPP.

Until recently South African manufacturers had very limited access to HPP technology, which requires considerable plant investment and know-how. But all that changed earlier this month with the opening of HPP South Africa’s plant, which is offering a contract service to the industry on a “tolling” basis.

You could build a Boeing in HPP South Africa’s giant, state-of-the-art facility in Midrand. And you get the sense, too, that the team behind the company is also thinking big, really big.

Willie Brand (CEO), Heinrich Zandberg (COO) and Claudio de Freitas, are a trio of entrepreneurial disrupters who, having spotted the opportunity that HPP offers South Africa, have thrown themselves passionately into the deep-end.

Their confidence in the future of HPP seems well-placed. In the USA, HPP is growing at 40% per annum and is already a multi-billion dollar business. It looks like

the future of fresh foodbev preservation staring you in the face.

Zandberg says he first stumbled onHPP while researching starting a business in cold coffee brewing and excitedly pitched the idea of opening an HPP plant to Brand, an entrepreneur and capital raiser for small businesses. Their excitement grew and the pair identified Avure in the USA as a leading player in

By processing foods at extremely high water pressure (up to 6,000 bar / 87,000 psi – more than the deepest ocean), HPP protects consumers and companies by destroying dangerous foodborne pathogens that lead to illness, death and major recalls every year. HPP literally crushes pathogens like listeria, salmonella, E. coli to death. HPP runs cold. It doesn’t alter food taste, texture or

quality. Nutrients are unaffected by the pressure. HPP can extend shelf life up to several times longer than traditional preservation methods. HPP is a post-packaging solution: already-packaged products like PET bottles of juice or vacuum-packed meats are processed under evenly-distributed pressure which ensures that the packaging is never crushed/distorted. Glass packaging will not work with HPP. Treatment by HPP takes around 10 minutes.

The HPP SA team, from left, Heinrich Zandberg, Willie Brand and Claudio de Freitas.

PROCESSING

How HPP works

HPP technology.Brand and Zandberg were soon on

their way to the US where they secured an exclusive SA tolling license from Avure which allows them to offer a contract processing service here (in the USA they call it “tolling”).

Now they needed money. Lots and lots of it because HPP equipment doesn’t come cheap. We’re talking tens of millions and that excludes the vast cold rooms/refrigeration systems required to make the plant viable for large-scale processing and handling.

The pair was successful in bringing on board TMM Holdings, the engineering, security and technology group. With funding secured, they placed their order with Avure for the largest HPP installation in Africa.

The machinery arrived in January and by March the plant was up and running in test phase, ready for full production in April. Already a second line is being planned for Midrand and Brand expects to open another plant in Cape Town by September.

The Midrand plant is currently able to process 1.8 tons per hour, and the type of product it can handle is vast, from sliced/processed meats (even raw fillet), juices, pork and chicken, cut fruit, ready-to-eat meals, sauces, dips, yoghurt, cheeses and sea foods such as oysters and lobster.

A group of blue-chip clients has already been lined up, but Zandberg is adamant they will make space for small manufacturers too. “We want a balanced basket to help develop the sector,” says Zandberg. “Yes, we could fill the machine with just one product but that’s not what we are about.”

The Avure relationship is wide-ranging and deep, says Brand. The American company is committed to sharing its research and show-how with

HPP South Africa to ensure the local operation is always using the latest, smartest techniques. The SA plant is also under 24X7 remote monitoring by Avure, and Brand and his team have received intensive technical training in operations and maintenance. Says Brand: “HPP can’t be done 97% - it has to be done 100%. It’s a complex technology and it has required extensive training.”

Zandberg points to the huge benefits that HPP offers. The shelf life of some meat products, for example, can be extended from 30 days to as much as 120 days if the cold-chain is properly maintained, while raw, pressed juices (a growing consumer trend) can go from 4-5 days to as long as 30-40 days. In the case of processed meats, the pressure on manufacturers to drastically reduce salt content without compromising safety can now be met by HPP, and high-risk sea foods like oysters can be

safely preserved for extended periods. The huge advantage of HPP, though, is that flavour and nutrient quality is never compromised.

South Africa, however, is not yet ready for raw milk processing by HPP because, unlike countries like Australia (where raw HPP milk is already being sold) and the USA, our own laws specify pasteurisation of milk must be done using heat (HPP is a cold process).

Brand believes the opportunities for HPP in SA are huge. He says the airline industry in particular is ripe for HPP processing of in-flight meals. Airlines, he says, are looking for a food safety guarantee, and HPP delivers exactly that.

HPP South Africa is offering far more than just HPP processing. “We want to be a solutions provider,” says Brand, with the company offering extensive cold-storage facilities to clients for their incoming product as well as a full end-of-line solution – barcoding/labelling, packing and palletising – so the final product can be shipped directly to retailer distribution centres. Being in Midrand close to the DCs of the major food retailers is an added advantage; reducing logistics helps make the HPP solution cost-effective, says Brand.

Although HPP South Africa works only with post-packaged product so food safety risks are very low, Brand says they will shortly be fully HACCP compliant.

HPP South Africa, he says, will onlydo contract work and never compete with its customers.

Brand and his team exemplifythe start-up spirit so vital to drive game-changing advances that new technologies offer old industries. It’s a welcome breath of fresh (high-pressure) air.

www.sahpp.co.za

PROCESSING

HPP can extend shelf life

from 30 to120

days

Fitchef is just bursting with fresh HPP ideasThe benefits of HPP South Africa’s service offering were immediately clear to Wayne Kaminsky, founder and CEO of FitChef, the online food and drink company which bans anything and everything artificial/refined from its products.

“HPP is an incredible technology that makes it possible to extend the shelf life of our products without having to add chemical preservatives,” says Kaminsky. “For FitChef,

it means we can make healthy, nutrient-dense smoothies, drinks, food and snacks that last longer and are more convenient for customers and retailers.”

Adds Kaminsky: “Our first HPP-processed range about to launch is from our #DrinkClean Range - 100% wholefood-blended smoothies, our Refresher drink and other whole juices. Followed by on-the-run real food.”

http://www.sahpp.co.za


Heat and Control’s global and historical footprint continues

to grow. Year after year, the Company celebrates another successful milestone in its 65 plus years of value-added service to the food processing and packaging industry … and 2017 is no exception.

25 years ago, at a time when South Africa was experiencing a rapid transition in its political and economic landscape, Heat and Control opened an office in one of the country’s most historical and picturesque cities, Cape Town. Heat and Control had already started expanding beyond the United States, and Africa would be its next endeavour.

Since then, Heat and Control in Africa has grown to work with customers across many market segments, such as snack foods; fruit and vegetable; meat, poultry and seafood; cereals and grain.

In South Africa, for example, Heat and Control provides multi-tier drying systems for a major breakfast cereal processing company; distribution systems for a multinational frozen vegetable processor; and complete turnkey processing lines for a multinational savoury snack processor. In Kenya, Heat and Control works with producers of snacks, nuts and vegetables. Heat and Control’s footprint today stretches across Africa and into various industries, even providing services to the growing Indian-based snack food industry, by bringing in experience with its Indian namkeen production capabilities.

“When we first opened our office in 1992, we had a small team who worked hard to grow our customer base,” says Jeff Rossouw, General Manager, Africa. “By bringing in our global experience and in-depth knowledge, it helped us to

service the expanding South African food processing industry. Our customers saw the value we could bring to the table and before long we were working with some of the country’s most progressive food manufacturers.”

And with the industry continuing to

grow, Heat and Control is ready to tackle the challenges of this ever-expanding industry.

“We are seeing an upward trend in the demand for high quality food processing equipment across Africa,” says Jeff. “Producers want highly efficient, robust equipment that can handle the wide array of food products to satisfy consumer needs. They want machines

that are energy efficient, provide greater automation and produce more in a shorter amount of time. And Heat and Control is able to meet this demand with our invaluable industry knowledge and complete turnkey solutions. We are definitely ready for the next 25 years and beyond.”

Founded in 1950 by five engineers who had the goal of modernising cooking equipment for the food industry, Heat and Control has played an integral role during the early days of industrial cooking systems transforming the food processing industry and pioneering continuous cooking equipment.

Heat and Control innovations include pioneering the external heat exchanger for industrial frying systems, high-speed processing equipment for potato chips and other snacks, and the invention of the multi-purpose oven, the MPO Cooking System®. More recent

innovations include the HeatWave® fryer, FastBack® conveyor, Revolution® Seasoning System and Revolution® Proportional Gate and the KleenHeat® heat exchanger.

“Through our customer relationships, we truly embrace the African proverb,

‘If you want to walk fast, walk alone; but if you want to walk far, walk together,’” concludes Jeff.

To celebrate its 25-year anniversary, Heat and Control

will be conducting several open days throughout the year in its newly established demonstration area. The

demonstration area allows customers to get a better understanding of Heat and Control’s offering by seeing its equipment up close.

[email protected]: +27 21 948 5934

25 hot years in Africa

We are seeing an upward trend in the demand for high quality food

processing equipment across Africa - Jeff Rossouw, GM Africa

PROCESSING

25EST. 1992

GM Jeff Rossouw (top row right) with the Heat and Control team

www.heatandcontrol.com


TURNKEY SOLUTIONS FROM A TO Z

WWW.HEATANDCONTROL.COM

25 YEARS IN AFRICAINNOVATION & WORLD-CLASS SERVICE

www heatandcontrol.com

Email [email protected]

Cape Town +27 21 948 5934

With manufacturing facilities and sales offices worldwide, Heat and Control supports manufacturers with experience, expertise and resources to develop the most value driven and efficient solutions for any food production challenge.

Processing + Packaging SystemsSnack | Process Prepared | French Fry | ConveyingSeasoning + Coating | Weighing + PackagingInspection | Controls + Information

25EST. 1992

May17_FoodBevReporter_210x297_H&C.indd 1 13/04/2017 9:37:06 AM


Developed by Linde, Afrox’s parent company, the ACCU-CHILL® SC in-line sauce cooling technology uses liquid nitrogen to rapidly chill pumpable hot liquid foods for the

ready meals sauce market. This in-line process rapidly chills hot sauces within minutes instead of hours, increasing production capacity and improving product quality.

“Linde has been developing and trialing this new technology for some time and it is now ready for global roll-out. The ACCU-CHILL® SC in-line sauce cooling technology is available in South Africa exclusively from Afrox,” says Hendrik Pretorius, Applications Specialist at Afrox. Pretorius is part of Linde’s specialist global team that develops new applications.

High viscosity sauces such as gravies, pasta sauces and soups need to be rapidly cooled down to minimise bacterial growth and maintain product quality. Traditional cooling methods rely on water immersion techniques or jacketed, tubular, scraped-surface heat exchangers.

The ACCU-CHILL® SC in-line sauce cooling technology is a streamlined, cost-effective alternative to traditional heat exchangers that are very costly, take up a large amount of space and have lengthy chilling times.

The system uses cryogenic injector technology to inject extremely cold liquid nitrogen directly into hot, cooked sauce in a mixing container. The low temperature of the liquid nitrogen cools the sauce immediately without freezing it. The subsequent mixture of gas and sauce is transferred to a degassing vessel where the nitrogen is vented, before being pumped into packaging.

“In addition to reducing the cooling time which reduces bacteria growth during processing, and a lower capital investment cost for the processing line, the ACCU-CHILL® SC in-line sauce cooling technology eliminates the use of water in the cooling process and reduces sanitation time due to elimination of heat exchangers,” explains Pretorius. “Furthermore, cryogenic cooling eliminates the variation in cooling times with traditional methods, and thus prevents overcooking and improves nutritional value.”

Pretorius adds that the ACCU-CHILL® SC in-line sauce cooling technology will complement future in-line cooking processes that are currently being developed.

The major components of the ACCU-CHILL® SC in-line sauce cooling system are a manifold, phase-separator and chilling injector that is connected to the hot sauce production line. Gaseous nitrogen is used to purge the lines and the injector after chilling to ensure that no product residue remains in the system.

The application will be tailor-designed by the global specialist team to suit customers’ specific processing needs following an investigation of customers’ existing processes. A local team from Afrox will install the application and will provide support and training.

Afrox will recommend the pump system and supply the control system, which will be linked to Afrox’s PLC (programmable logic controller) communications.

“As part of the Linde group, Afrox has access to leading technology to provide innovative solutions to challenges faced by the food industry. While Afrox is a gas company, we offer real solutions, not molecules,” says Pretorius.

Contact:[email protected] : +27 (0) 11 490 0570

AFROX’S NEW RAPID SAUCE COOLING TECHNOLOGYA revolutionary technology that reduces

sauce chilling time from hours to minutes is

now available in South Africa.

The super-fast cryogenic solution from Linde does it in minutes instead of hours.

CHILLING


BUCKLE PACKAGING (PTY) LTDBag Closing Technology

Tel: +27 11 613 8024 • email: [email protected]

Manual hand stitchers also available

Trouble Free Bag Closers by Fischbein

Mageu, Maxau, maHewu, amaRhewu or amaHewu – there

are many names for the same traditional non-alcoholic and non-dairy drink made from fermented mealie pap.

When RCL Foods, manufacturer of the Number One Mageu brand, a popular version of the traditional drink, set out to find a new packaging solution that would improve shelf life and refresh the brand, it turned to Ampack (part of Bosch Packaging Technology since 2012), a specialist in aseptic machines for liquid food filling with over 40 years of experience in the market.

After careful evaluation of the products’ characteristics, Ampack specialists suggested the mageu drink be filled in high density plastic bottles (HDPE) using aseptic filling - the highest possible hygiene level, allowing for up to one-year shelf life outside of the cold chain.

Until then mageu had only been available in cardboard cartons. The Ampack solution was based on the idea of enhancing product protection, improving end-consumers’ convenience and boosting brand position at point-of-sale. “It was a perfect combination of the highest quality engineering and cutting-edge technology that we were looking for,” says Johan Niemand, operations executive at RCL’s beverages unit.

The Ampack filling machine chosen by RCL was designed with the latest hygiene guidelines, ease of use and productivity in mind. Throughout the whole filling process, the packaging material is thoroughly decontaminated and the product is kept in sterile

conditions to avoid any loss in quality.

The Ampack line is capable of handling three different bottle sizes (250mm, 500mm and 1 liter) with format changes taking less than 20 minutes and total speeds of up to 14 000 bottles per hour.

The HDPE bottles have high barriers to protect the product from deterioration by external factors such as sunlight or oxygen.

The new Ampack machine has been installed at RCL’s production facility in Pretoria primarily for the mageu line, but it can handle various products with different levels of viscosity, giving RCL the flexibility of extending its production options in the future.

“Since the installation, the machine is running flawlessly and is a perfect example of engineering excellence in its purest form,” says Niemand.

www.boshpackaging.com

Tradition meets hi-tech ...RCL’s mageu gets a boost to safety, shelf life and brand appeal with new Ampack solution

PACKAGING

http://www.boshpackaging.com


Baker Perkins' twin-screw extrusion technology can deliver significant savings in the production of core

ingredients for the food industry. Typical examples include breadcrumb, croutons, gluten-free bread products, modified and pre-gelatinised flours.

Marketing manager Keith Graham says that compared with traditional processes, extrusion can bring major savings in space, equipment, energy and labour; the process is also very flexible, enabling quick and easy switching between different recipes

Extrusion is hygienic and energy efficient: all the action is in the short barrel – ingredients in and product out seconds later. If it is possible to make a product with an extruder, it is almost certainly the cheapest, most efficient and most compact method for making it. Conventional processing typically involves a great deal more equipment, time and cost.

Breadcrumb is a typical example. The traditional process involves mixing, forming and baking bread before discarding the crusts and grinding. The same product can be made with no waste using only a twin-screw extruder and dryer.

Similarly for croutons: a bread-like texture can be developed in the extruder and the pieces cut to size at the die or by a post-extrusion cutter. Croutons for the ingredients market (such as soups and salads) or a crunchier variant for the snacks market can both be produced by this method with rapid changes between them.

Graham says extrusion is also an excellent way of addressing the market for gluten-free bread products as it can handle with ease the various alternative flours and starches used to make the dough. Screw profiles can be adjusted to achieve the desired characteristics much more readily than conventional processes, and it also overcomes the problems caused by stickiness of the dough.

Extruders also bring a lot of

advantages to modified and pre-gelatinised flours used in products such as instant soups, ready meals, bakery pre-mixes and infant nutrition.

The wide range of conditions that can be created in an extruder enable characteristics such as rapid and/or cold-water thickening, increased protein or fibre content, improved dispersibility and enhanced texture to be readily developed.

Other examples include soy-based high-protein crispies used in breakfast cereals, chocolate bars and snack/trail mixes to add texture and volume, and low-protein versions based on wheat or corn; rusk for sausage fillings; and ice cream inclusions – generally cookie or biscuit based.

As well as the savings in space, equipment, energy and labour the process is also much more flexible, enabling quick and easy switching

between different recipes. Extrusion systems can be expanded as a business grows or markets change to move from ingredients into production of foods such as snacks and cereals.

"Extrusion is perhaps the most versatile process available to the food industry, " says Graham. "It is capable of producing a wide range of end products from a variety of different ingredients and rapidly switching between them. It can replicate products made using other, less flexible, methods and the breadth of process options offers product developers plenty of scope for innovation."

Keith Graham Tel +44 1733 283000. [email protected] www.bakerperkins.com

Extrusion squeezes out major savings for foodbiz

TECHNOLOGY

Extrusion is perhaps the most versatile process available to the food industry

[email protected]

http://www.bakerperkins.com


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