Confectionery Industry Newsletter - December 2013

Ai Group Confectionery Sector
Confectionery Industry News
Edition 4, 2013
Wishing you, your staff and families a very happy
Christmas and a prosperous and safe 2014
Confectioners Choose
Confectioners in Australia will be able to choose whether - or
not - they wish to use the full front of pack labelling (FoPL)
system.
Following a meeting in Canberra, in early November, where
the confectionery industry was represented by the Ai Group’s
Confectionery Sector, it was agreed that confectioners could
choose to use the full system and therefore be in lock step
with the remainder of the food industry.
the industry in the very positive position of being able to
choose how it complies with the new voluntary system”.
“Confectionery companies can now have a consistent
approach which will help deal with smaller packages as well
as marketing benefits that can be achieved,” Mr Piper said.
There is an appreciation too that the new voluntary
system will not be easy for all companies, particularly
smaller brands owners that use generic packaging and low
automation, where customisation of packing involves a high
degree of manual handling.
Meanwhile progress on the Health Star Rating algorithm,
style guide, consumer research, governance and
implementation matters are continuing. Ministers for Food
Regulation are due to receive a report at their next meeting
on 13 December that will include refinement details to the
algorithm and solution for dairy.
Typically confectionery is expected to score between ½
and 2 stars with sugar style confectionery generally scoring
more stars than chocolate formats.
Figure 1 : Illustration of the full FOPL Health Star Rating
The new voluntary system encourages the food industry
brand owners to use a new interpretative star rating system
together with informative nutrient elements and energy.
Confectioners will use either the full system or an integrated
approach which only requires them to include energy on
front of pack, together with size descriptor measure.
The Principal Advocate for the Confectionery Sector in
Australia, Tim Piper said “the most recent agreement leaves
Figure 2 : Example energy icons
continued on page 6
Ai Group Confectionery Sector
Ai Group Confectionery Sector
Confectionery Industry News
Confectionery Industry News
Compliance action paying off
From the Chief Executive’s Desk
and governance arrangements. It is intended that companies will
commence taking up the new voluntary labelling system from
mid-2014 combined with the confectionery industry’s responsible
consumption messaging, be treatwise®. You will hear more about the
take up details in the early part of next year and how you can play
your part in the delivery of the important messaging about healthy
eating choices and healthy lifestyle, but importantly too, education
and awareness of the role of confectionery as a treat.
Industry efforts to combat the perennial issue of confectionery
compliance are being stepped up by your Confectionery Sector
too. Non-compliant parallel imports in terms of composition and
labelling, continue to pervade the retail landscape whilst harming
local business viability and reputation. Compliance is a condition
of doing business, whatever sector or area, and I strongly encourage
all businesses to give this their attention in 2014. Ai Group’s
Confectionery Sector is available to assist.
Dear Member,
This has been a tough year for many of our members and Ai Group’s
focus on reducing business costs and complexities remains
a priority.
At the Federal level, we are representing your interests with the new
government on all the key business priority issues such as workplace
relations changes; further tax reforms; regulatory reform; skills
infrastructure; innovation; climate policy; and broadband.
We revisited several stores recently that had previously been alerted to authorities because they stocked non-compliant
parallel imports. Disappointingly, more than twelve months later, these stores were continuing to sell non-compliant
parallel imported confectionery goods.
Our follow up monitoring and the responsive action being taken by the local authorities is achieving positive outcomes.
In one case the parallel imports have been relabelled to the satisfaction of the jurisdiction and in the second
situation the matter has been referred up the supply chain and several local councils are liaising directly with the
identified importers.
Compliance campaign
Ensuring industry compliance is important for a number of key reasons, especially from the perspective of consumer
health and safety and potential to mislead, but also to ensure a level playing field for all and to enable local companies
to manage potential brand reputation damage.
2013 is rapidly drawing to an end and I wish you all the very best
for the festive season and hope that you all can enjoy a welldeserved break.
To support this surveillance effort, the Ai Group Confectionery Sector needs your participation. Your field sales staff are
ideally placed to assist as they pursue their regular activities.
Members are asked to:
1 Actively audit and monitor product in the marketplace for compliance, both compositionally and from a labelling perspective
Regards,
2 In liaison with the Ai Group Confectionery Sector seek remedial action against the non-compliant goods,
by either:
a. communicating with the businesses responsible for selling, distributing or producing the goods, and/or
At the Confectionery Sector level front-of-pack labelling, be
treatwise® and compliance have been the focus areas in 2013.
The front-of-pack labelling system was primarily approved in
mid-2013 and the second half of the year has focussed on the
system refinements, developing support materials, infrastructure
b. alerting the relevant authorities to the irregularities (Customs, Department of Agriculture, Forestry and Fisheries (DAFF), state and territory enforcement authorities, National Measurement Institute
(NMI) or local councils)
Innes Willox
Chief Executive
Australian Industry Group
3 Always send evidence of non-compliant cases to Jennifer Thompson, Technical & Regulatory Manager in the
Ai Group Confectionery Sector, by email on [email protected] for the industry data register to support the industry’s continued understanding of the issue scope. Information required includes purchase details, evidence in the market and business impact.
Confectioners Choose
1
Environment and Energy
From the Chief Executive’s Desk
2
Export Victoria - Trade Event Program
11
Compliance Action Paying Off
3
Technical Papers
12
Technical Report
4
Key Dates 201412
News Bites
5
Cocoa Market Report
13
New Name
10
6
The Alfred Stauder Award for Excellence
13
ConTech20146
Fruit and Nut Market report
14
Confectionery Sector in Review
7
Sugar Market report
15
Welcome to New Members
7
In the spotlight – An interview with Donna King
16
Photos from Pre-Christmas Rush Cocktail Party
As reported in the last issue of Confectionery Industry News (Edition 3, 2013), the Ai Group Confectionery Sector
continues to pursue the elimination of non-compliant confectionery product in the marketplace, including non-compliant
parallel imports.
On the horizon, after your busy Easter period, the annual ConTech
will be held in Melbourne. We are once again working to bring you a
must attend event. For now, please save the date … 30 April 2014!
Merry Christmas and may 2014 bring you peace, joy, happiness
and prosperity.
Across the states we are making important progress for business
in relation to WorkCover costs, energy costs, skills development
and support for manufacturing and industry through programs
focused on innovation, business model improvement and
increased productivity.
The Ai Group Confectionery Sector is also pleased to report action being pursued on industry’s behalf by the Melbourne
City Council and Frankston City Council is paying off.
A correspondence campaign forms part of our communication with industry and we look forward to your involvement.
For further information please do not hesitate to contact Jennifer Thompson on 03 9867 0181 or
[email protected]
8,9
2
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Ai Group Confectionery Sector
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Technical Report
NEWS BITES
the amount of saturated fat. A similar Roundtable on
Trans Fats in the Quick Service Restaurant industry was
established for the same purpose.
trans fat
Trans fatty acids (TFAs) occur both naturally and in
manufactured products. Naturally occurring TFAs are found
in some animal products including butter, cheese and
meat. Manufactured TFAs (also known as artificial TFAs) are
formed when liquid vegetable oils are partially hydrogenated
or hardened during industrial processing. Some TFAs are
also formed during high temperature cooking.
At this time, the confectionery industry also encouraged
companies to review their formulations with the view to
ensuring that TFA content was reduced or removed so it was
as low as reasonably achievable and we continue to remind
all confectioners of this ongoing objective.
The following 2009 FSANZ review of TFAs found intakes
of TFAs from manufactured sources in the Australian and
New Zealand populations had decreased by around 25
to 45 percent since 2007, reflecting changes in industry
practice to reduce TFA levels in manufactured foods. As
a result of these findings, in October 2009, ministers
agreed that the non-regulatory approach should continue.
US FDA takes steps to ban trans fat
In early November, the US Food & Drug Administration
(FDA) said it will take steps to ban trans fat from all
processed foods, citing concerns about public health.
The US FDA has announced its preliminary determination,
based on available scientific evidence and the findings of expert
scientific panels, that partially hydrogenated oils, the primary
dietary source of artificial or manufactured TFAs in processed
foods, are not “generally recognised as safe” for use in foods.
The Institute of Medicine says there is no safe level of artificial
trans fat and that the additive does not provide any known
health benefit.
As noted above, the FSANZ review work is underway and
is expected to be completed by the end of 2014 and
the Ai Group Confectionery Sector continues to remind
companies of this important health issue.
FSANZ guidance on establishing food-health
relationships for general level health claims
The FDA is accepting public comment on the proposed ban for
60 days, through to 6 January 2014, giving food manufacturers
a chance to determine a timeline for removing trans fat from
products.
Food Standards Australia New Zealand (FSANZ) has issued
a guidance document to assist food businesses wishing to
establish a relationship between a food or property of food
and a health effect (food-health relationship) by a process of
systematic review for the purpose of making a general level
health claim.
All the requirements for making a general level health claim
on a food label or in an advertisement are set out in Standard
1.2.7 – Nutrition, Health and Related Claims in the Australia
New Zealand Food Standards Code (Code).
Food businesses wishing to make a general level health
claim can base their claim on a food-health relationship that
is either:
• pre-approved by FSANZ as listed in Schedule 3 of
Standard 1.2.7, or
• established in accordance with requirements set out in
Schedule 6 of Standard 1.2.7.
Meanwhile, on 22 November a US House of Representatives
Congressman, Steve Israel, reintroduced a bill that would
require more transparent labelling of trans fat on food
packaging. An FDA requirement allows companies to label
food as “0g” trans fat if the product contains no more than
0.4 gram per serving. The legislation would require an
asterisk, with a note indicating the product has “less than
0.5 gram trans fat.” Under the existing rule there is concern
that consumers might exceed the American Heart Association
recommended limit of 2 grams per day by eating multiple
servings.
Australia/New Zealand progress
In December 2011, the Forum on Food Regulation (FoFR)
sought further technical evaluation and advice about
this issue, which arose from Recommendation 13 in the
Labelling Review.
This guidance outlines scientific best practice for undertaking
a systematic review as described the Standards.
More information or to download the guidance document
refer to http://www.foodstandards.gov.au/publications/Pages/
Guidance-on-establishing-food-health-relationships-forgeneral-level-health-claims.aspx
Recommendation 13 proposed “that mandatory declaration
of TFAs above an agreed threshold be introduced in the
nutrition information panel if manufactured TFAs have not
been phased out of the food supply by January 2013”.
FSANZ is currently undertaking technical evaluation and
preparing advice for FoFR ministers. FSANZ’s work includes
the assessment of the current levels of TFAs to determine
if manufactured TFAs have been phased out and to review
the effectiveness of voluntary industry measures to reduce
manufactured TFAs in foods.
Mexico passes candy tax legislation
Both chambers of Mexico’s Congress have passed new
legislation taxing certain “non-staple” foods, including
confectionery and chocolates as well as cocoa products and
chewing gum. The tax would be applied to products that
contain 275 calories (1155kJ) or more per 100-gram serving.
The USDA published a report saying the tax could affect
exports of certain processed products and raw commodities.
The tax still needs to be approved by Mexico’s president
before it would take effect.
In 2007 the Australia New Zealand Collaboration on Trans
Fats was established with health, industry and government
stakeholders to work to reduce the amount of TFAs in the
Australia and New Zealand food supply, without increasing
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Edition 4, 2013
J H Whittaker
& Sons Ltd
Ferrero
Australia
appoints new
Managing
Director
Recently New Zealanders
were asked to vote for the
favourite Fairtrade product.
The three winning products
included J H Whittaker’s
Dark Ghana Block. The
Award highlights Fairtrade
brands in New Zealand who
have taken the greatest
steps to help create
better futures for farmers and their families and
communities in developing countries.
Ferrero Australia has
appointed Craig Barker as
its new Managing Director
for the Australian and New
Zealand markets.
Craig has 20 years of experience in the confectionery
industry having spent 12 years with Mars in the UK
and the last 8 years with Ferrero, working across the
UK and Ireland, a global role based in Ferrero’s central
headquarters in Luxembourg and the last 3 years in
Australia.
Change of address for Manildra
Please note a change of address and phone/fax numbers
for Manildra Group:
Daniele Bondì, Craig’s predecessor, remains an integral
part of the Ferrero Group and has been recently
announced as the Global President for Ferrero’s famous
Nutella brand.
6 Frank Street
Gladesville NSW 2111
Australia
Tel: 61 2 9879 9800
Tel(TollFree): 1800 224 591
Fax: 61 2 9879 5579
Email: [email protected]
Website: www.manildra.com.au
Tim Piper, Ai Group Victorian Director & Principal
Advocate for the Confectionery Sector said “We offer our
congratulations to Craig Barker and thank Daniele Bondì
for his stewardship. We wish them both well in their new
professional challenges.”
Allied Industries
Allied Industries is now the agent for Dumoulin, France,
manufacturers of automatic coating installations for the
confectionery and pharmaceutical industries.
Tell us your story please
News Bites welcomes all industry news contributions.
If you have a human interest story, personnel changes,
celebrating a company milestone, please email your news
to [email protected] to share it on this page.
Contact Martin Crumpton at
[email protected]
for further information.
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Ai Group Confectionery Sector
Ai Group Confectionery Sector
Confectionery Industry News
Confectionery Industry News
New Name
Confectionery Sector In review
The Confectionery Reference Group (CRG) was born on 24 October 2013.
At the latest combined Confectionery Advocacy Group (CAG) and Confectionery Industry Advisory Committee (CIAC) industry
meeting it was resolved that a new and more appropriate title be created to better reflect joining of these two groups.
For most of 2013 the policy and strategy development, leadership activities and industry guidance had been driven by the
combined efforts of the industry working groups and it seemed time that a new acronym be established.
And so we have the CRG standing for the industry’s Confectionery Reference Group. This Group draws from the membership
cross category representation including suppliers, wholesaler/distributor and retailers as well as manufacturers.
New members to the group are welcome. If you would like to learn more about what is involved, please do not hesitate to contact
Tim Piper on 03-9867 0265 or Jennifer Thompson on 03-9867 0181.
Back by popular demand, ConTech 2014’s dinner
will present Georgia Wilkinson – the opera singer who
delighted the industry at this year’s event, plus there will
be our guest entertainer with something more.
Contech2014
Proudly
sponsored by
Manildra
So don’t forget to keep the speaker suggestions coming
in and if you have colleagues planning business trips
to our part of the world in 2014, please work toward
aligning with ConTech and bring them along or if they are
interested to speak on the program let us know too.
Construction
of the speakers
program for
ConTech2014
– to be held on
30 April – is
well underway.
The one day, jam packed program, is certainly going to
provide you with new insights, new practical tools and
the much sought after networking opportunity.
Sponsorship
ConTech also offers a valuable opportunity to market
your business and to reach your customers through
sponsorship. There is a variety of sponsorship
opportunities available through ConTech - be they
through assisting with speakers, sponsoring an event in
the program or reaching potential customers by inclusion
of your marketing and communication materials in the
delegate satchels. Support of the industry through any of
these opportunities is welcome and appreciated.
Themes that will be featured in the main program this
year range from market trends and growth opportunities;
developments in allergen management; global obesity
responses; tips for exporters and importers; packaging
issues; confectionery ingredient and processing
techniques to entrepreneurship and digital technology.
27 September – Ai Group Confectionery Sector submits
comments to the Food Standards Australia New Zealand
(FSANZ) Code Review under Proposal P1025
4 November - Tim Piper, Victorian Director, Ai Group attended
13th Front of Pack Labelling Project Committee meeting in
Canberra
30 September – Jennifer Thompson, Manager Technical &
Regulatory, convenes a ConTech2014 working group meeting
to progress development of the speakers program
11 November - Confectionery BTW Pty Ltd trustee meeting
conducted to formalise adoption of tagline in conjunction with
the Be treatwise trademark
30 September - Jennifer Thompson, Manager Technical &
Regulatory, meets with GS1 to review opportunities leveraging
Be treatwise messaging
13 November - Jennifer Thompson attends Mondelez’s SME
Innovation & Collaboration Workshop at Ringwood
20 November - Jennifer Thompson attend industry Front of
Pack Labelling Meeting hosted by AFGC in Melbourne
10 October - Ai Group Confectionery Sector submits comments
on the FSANZ Code Interpretation Service
22 November - Tim Piper and Jennifer Thompson meet with
Front of Pack Labelling Secretariat to progress arrangements
for the new voluntary Health Star Rating system
18 October - Ai Group Confectionery Sector submits comments
on the Food Regulation Policy Options Paper reviewing the
regulation of caffeine in food
27 November - Tim Piper attends Creative Innovation 2013
Asia Pacific
18 October - Jennifer Thompson hosts Ai Group Confectionery
Sector non-compliance working group meeting
29 November - Jennifer Thompson attends Healthy Together
Victoria, CO-OPS Collaboration, EPODE International Network
and SA Health’s OPAL at Game Changer - Evolving our
approach to prevention
24 October - The Ai Group Confectionery Advocacy Group and
Confectionery Industry Advisory Committee met in Melbourne
24 October - Ai Group Confectionery Sector Pre-Christmas
Rush Cocktail Party (see photos on pages 8 and 9)
2 December - Ai Group Confectionery Sector Technical
Committee meeting is held in Melbourne
Welcome to New members
For sponsorship enquiries please contact Julie Barnes on
03-98670147 or email [email protected] to
discuss how to get involved.
Australian Botanical Products - ABP
Confectioners Choose continued from page 1
The new voluntary FOPL system permits the
confectionery industry’s continued use of its on pack
responsible consumption communication. The FOPL
system also permits the co-location of the complementary
be treatwise and FOPL messaging.
In addition, the be treatwise labelling has been
enhanced by the addition of the new tagline “Enjoy
a balanced diet”.
Figure 3 :
Confectionery industry’s enhanced be treatwise graphic
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Edition 4, 2013
Montana Confectionery
ABP, specialists in the chemistry of essential oils, is
based in Hallam, Victoria.
Products include essential oils, aromatic chemicals,
vegetable oils, fragrances and finished products.
www.abp.com.au
Montana Confectionery is an Australian owned family
business located in Bayswater, Victoria. They have been
in the confectionery industry for some 28 years and
specialise in packaging, wholesale confectionery and
corporate work. Their brands include the Sue Shepherd
Gluten Free confectionery.
www.montanaconfectionery.com.au
ChocCreator
ChocCreator was founded in 2012 by Mark Tubman
who has over 30 years’ experience in chocolate and
confectionery development, process and production
techniques and factory management. Mark is also the
Australasian agent for Wolf Special machinery (Germany).
www.choccreator.com.au
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7
Peter Simpson, Manildra Group
L-R Patrick Flynn, Murray Goulburn Co-op, Jeroen Rens with Jonathan
Finney, Juremont
L-R Stephanie Anderton and Jerome Borell, GKC Foods with Adam
Armstrong, Manildra Group & Phil Sims, Robern Menz.
L-R Wayne Carroll, Carroll Partners, Stuart Dale and Tony Raponi, Nestlé
Confectionery & Snacks
L-R Heather Milivojac and Michael Milan, Minuteman Press with Wendy
Jarvis, William Angliss Institute
L-R Angeline Achariya and Neil Smith, Mondelez International
L-R Milly Hams, Grant Inches and Penelope Large from Koko Black
L-R The Hon Bruce Atkinson MLC, Victorian Government with Graeme Dossetor,
AFIS
Thank you to Manildra for the sponsorship
of the Ai Group Confectionery Sector
Pre-Christmas
Rush Cocktail
Party on
24 October
L-R Joseph Haber, Nestlé Confectionery & Snacks with
Kaye Kirkpatrick & Alan Mortimer, Australian Blending
Company
L-R Stephen Day, Department of State Development
Business and Innovation with Will Muddyman,
Australian Native Nuts & Chocolates
L-R Phil Sims, Robern Menz, Jonathan Finney, Juremont and Richard
Sims, Robern Menz
L-R John Borell, GKC Foods and Mark Tubman,
ChocCreator
L-R Julia Fraser, Mondelez International, Catherine Pemberton, The Wrigley
Company with Derek Lath and Craig Barker, Ferrero Australia
8
Edition 4, 2013
Guess who ?
(it’s Adam Armstrong, Manildra)
Edition 4, 2013
Tony Raponi, Nestlé Confectionery & Snacks
9
L-R Lindsay Mallin, FTA Food Solutions with Lisa
Flower, Mondelez International
L-R Gabe Tokolyi, Corvina Foods, Stuart Redman, Paton’s
Macadamias and David Ness, FTA Food Solutions
Ai Group Confectionery Sector
Ai Group Confectionery Sector
Confectionery Industry News
Confectionery Industry News
NEW FREE PROGRAM TO ASSIST YOUR BUSINESS CUT COSTS AND
BOOST PRODUCTIVITY
Ai Group is working in conjunction with Sustainability Victoria
and City West Water in Victoria, and Zero Waste SA in South
Australia to help companies cut costs and boost productivity
through the Resource Efficiency Assist Program.
The Program provides a range of free services to help businesses
in Victoria and South Australia with less than 200 employees.
In Victoria, Ai Group and City West Water in conjunction with
Sustainability Victoria’s Smarter Resources, Smarter Business
Program is providing the following services:
Business assessments
•
Level 1 energy assessments
•
Level 1 equivalent materials assessments
Master classes
•
Site visits to companies that have implemented
initiatives; and
•
Online videos.
In South Australia, Ai Group in conjunction Zero Waste SA
is providing:
“Companies, in particular small-to-medium sized businesses,
often lack the time and resources required to improve resource
efficiency,” said Ai Group’s Victorian Director, Tim Piper. “This
important initiative will help overcome this barrier by providing
both onsite assistance as well as training on energy and
materials efficiency.”
•
•
•
Business assessments
•
Level 1 equivalent materials assessments (or combined materials and energy assessments)
•
Technology energy benchmarking
•
Master classes; and
•
Site visits to companies that have implemented
initiatives
Export Victoria - Trade Event Program
The Victorian Government’s Trade Event Program is
designed to help Victorian businesses cover costs
associated with attending international trade events.
Businesses taking part in the Trade Event Program benefit
by developing deeper, more strategic and sustained
business relationships with emerging trading partners.
It is specifically aimed at supporting Victorian companies
to attend international events that are outside the current
Victorian Government trade mission schedule or those
located in markets where it is not feasible to run a trade
mission.
Who can apply?
Grants of up to $2000 (plus GST) are available to support
attendance at Victorian Government approved trade events,
exhibitions or trade shows. A list of eligible events can
be found at www.export.business.vic.gov.au/funding-andassistance/trade-event-program/eligible-events.
• Financially viable and solvent
Eligible events have been selected based on their
strength in showcasing Victorian business capabilities in
key industries and their ability to strengthen trade and
investment links with Victoria’s trading partners.
Organisations are eligible to attend two (2) Trade Events
per year.
To apply for a Trade Event grant you must be:
• Victorian based or head-quartered
• Currently exporting or considering exporting
• Operational for at least two (2) years
• Working in a priority sector or priority market
• Attending an eligible Trade Event
For information please see www.export.business.vic.gov.au/
funding-and-assistance/trade-event-program/eligible-events.
For further information, contact Ai Group’s Environment and
Energy Help Desk on 1300 733 752;
email: [email protected]; or visit:
www.resourceefficiency.aigroup.com.au.
Build your
qualifications
The Vocational Graduate Certificate in
Food Industry Management 22035VIC
A nationally accredited postgraduate qualification designed for
supervisors and managers interested in obtaining specialised
management and leadership training in food and beverage or
confectionery manufacturing.
TRAINING FOR INDUSTRY LEADERS
Expressions of interest are open for confectionery
manufacturing short courses in:
William Angliss Institute is currently receiving enrolments for the second intake of the Vocational Graduate Certificate in Food Industry
Management for commencement in February 2014.
Chocolate Manufacturing (production, enrobing, moulding
and depositing)
• Manufacture of high and low boil confectionery products.
•
This program aims to deliver enhanced technical, analytical and leadership skills within the manufacturing setting.
For more information contact Kristine Wilson on 0418 552 675
or email [email protected] or visit: www.angliss.edu.au
Enquiries to: Kristine Wilson on telephone (03) 9606 2167 or email [email protected]
10
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11
3512-V1 0913
This is a nationally accredited postgraduate qualification designed for supervisors and managers interested in obtaining specialised management and leadership training in (i) confectionery manufacturing or (ii) food and beverage (two streams).
Ai Group Confectionery Sector
Ai Group Confectionery Sector
Confectionery Industry News
Confectionery Industry News
Technical Papers
Handling peanuts for food safety and quality – The three
main areas of concern for peanuts are aflatoxin, foreign
material control and shelf life. By Alan Milton, American
Blanching Company
In each issue of Confectionery Industry News we list
details of several technical articles that are available online from the originating trade publications, for a small
fee. If you have any queries, please do not hesitate to
contact:
[email protected]
The Manufacturing Confectioner, October 2013
www.gomc.com/articles.html
Bulk nutritive sweeteners for global market formulations –
When using bulk nutritive sweeteners it is important to
consider the desired product requirements as well as the
regulatory requirements, environment in which they will
be sold and cultural norms. Shelly Renken, Mondelez
international
Walnuts and pecans in confectionery products – Nuts
present confectioners with formulation challenges due
to their composition and processing. By Ed Dudley,
Photocept.
The Manufacturing Confectioner, September 2013
www.gomc.com/articles.html
The Manufacturing Confectioner, October 2013
www.gomc.com/articles.html
Using almonds in confections – Almonds provide added
nutrition, texture and crunch – they’re a versatile and
affordable tree nut. By John Wagaman, Blue Diamond
Almonds
Hazelnuts – In addition to adding taste and texture to
confections, hazelnuts offer nutrition and health benefits. By Felah Alothman, Balsu USA
The Manufacturing Confectioner, October 2013
www.gomc.com/articles.html
The Manufacturing Confectioner, September 2013
www.gomc.com/articles.html
KEY DATES 2014
26 – 29 January: ISM International Sweets and Biscuits Fair, Cologne, Germany, www.koelnmess.com
30 April 2014: ConTech2014, Pullman Melbourne Albert Park - (formerly The Sebel Albert Park Melbourne)
8 – 14 May 2014: Interpack Processes & Packaging, Dusseldorf, Germany, www.interpack.com
COCOA MARKET REPORT
Terminal Markets
Whilst the 2012/13 season has drawn to an
end the bullish momentum has remained
and cocoa prices reached 2-year highs mid
Oct13: 1,769 GBP/mt London and 2,766
USD/mt NY. LIFFE stocks at 130tmt = -3.3%
vs. 2 weeks ago = +5.0% vs. 1 year ago and
ICE stocks at 259tmt = -5.3% vs. 2 weeks
ago = -6.9% vs. 1 year ago. Funds are still
holding a historically high/long position of
around 170k lots and with 1.65 mln mt
of 2013/14 sales and already 100tmt of
2014/15, it is leaving the industry with only
4.5 months of coverage at the end of Oct13
(1.8 months less than last year).
Ghana, opening 2013/14 figures have
not yet been released by the Cocobod.
The full 2012/13 crop was concluded, on
expectations, at 835tmt (a 2% decrease
versus 2011/12). Rainfalls since Jan13 are
still well below a 23-year average (by 12%)
and have remained below 2012 (by 7%).
Consequently, survival rates of cherelle pods
have been suboptimal.
The El Niño Southern Oscillation (ENSO) has
remained neutral for a full year. Australian
climate models are forecasting neutral
conditions up to Jun14 (but are also slightly
favouring El Niño/warm scenarios).
The Supply
The Demand
In the past month, closing 2012/13 statistics
have been released and cocoa analysts
have made few changes to their 2013/14
crop forecasts. Final 2012/13 arrivals from
the CCC and purchases from the Cocobod
are pointing at a combined Ivorian plus
Ghanaian statistical crop of 2,273tmt;
3% below 2011/12. 2013/14 main crop
farmgate prices have been announced and
little smuggling is to be expected. Fresh
2013/14 Ivorian arrivals have been healthy
– in terms of quality (bean counts below 100
and low FFA rates) and quantity (106tmt in
the first 3 weeks ie. 36% above our 4-year
average). But, the tail of the 2013/14 Ivorian
main crop is expected to be less ample.
On a cumulative basis since Jan13, rainfall
stands below a 30-year average (by 13%)
and now also below last year (by 2%). In
Q3 2013 official grinds came close to
analysts’ estimates and have induced
minor changes in 2012/13 figures. The
2013/14 bean demand is still being
discussed close to LTA (circa +3% YoY).
All Q3 2013 official grinds finally came at
+4% versus Q3 2012 but compared to
Q3 2011, the overall figure remains 6%
lower. At a worldwide level, the increase
was even more important and estimated at
+6% since untracked countries have been
performing well (mostly Ivory Coast with a
10% increase year-on-year). Butter and
powder inverse rallies are apparently loosing
momentum (first time since Apr12) and
some fresh fundamentals (demand) could
surprise stakeholders.
15 – 16 May 2014: WCF Partnership Meeting, Bali, Indonesia, www.worldcocoa.org
ICCO View - Cocoa Supply & Demand
The ICCO is still forecasting a 2012/13
deficit of 52tmt (better than the market
consensus of -135tmt). For the just started
2013/14 season, the deficit range has
slightly narrowed (from 75tmt to 200mt).
Potential Factors Driving Terminal Markets
On one hand, it seems difficult to see funds
going longer from this record level but on
the other hand, they won’t let go without a
tangible trigger (cocoa-related, or not).
As a conclusion factors are:
Bullish factors:
• Industry cover (4.5 months end of Oct13,
vs 6.3 months end of Oct12)
• Q3 2013 grinds (official +4%, world +6%
YoY) and LT CAGR (of +3%/year)
• Tail of West African main crops expected
below normal
• Supply & Demand (2012/13 consensus
and 2013/14 mid point both close to
-135tmt)
• LT structural deficit (bought by some
index system funds)
Bearish factors:
• Funds at a record high/long
(above 170klots)
• Start of West African main crops
(expected above normal)
• Butter & powder stocks (both
increasing QoQ)
• Semi finished product market in a
structural overcapacity (of circa 30%)
• Cocoa slightly overvalued vs CRB index
This report is only for general information.
20 – 22 May 2014: NCA Sweets & Snacks Expo, Chicago, USA, www.sweetsandsnacks.com
11 – 14 June 2014: ProPak Asia, Bangkok, Thailand, www.propakasia.com
The Alfred Stauder Award for Excellence
7 - 9 September 2014: Philadelphia Candy Show, Atlantic City, USA, www.phillycandyshow.com
The Alfred Stauder Award for Excellence is presented to the person who has displayed significant expertise and exceptional
achievement within the industry. The Award is open to all confectionery manufacturers, suppliers and distributors.
24 – 26 September 2014: Food Ingredients Asia-Indonesia, Jakarta, Indonesia, www.ingredientsnetwork.com
The Award will be presented at the ConTech2014 Industry Dinner on Wednesday 30 April 2014.
16 – 18 November 2014: PLMA Private Label Trade Show, llinois, USA, www.plma.com
12
Correspondence requesting nominations for the Award, will be mailed to key contacts of Ai Group Confectionery Sector
member companies early in the New Year.
Edition 4, 2013
Edition 4, 2013
13
Ai Group Confectionery Sector
Ai Group Confectionery Sector
Confectionery Industry News
Confectionery Industry News
FRUIT & NUT Market Report
ALMONDS (USA)
Firm
The Australian crop is progressing well and with
favorable conditions during summer we should
be expecting a larger crop than last year. We are
anticipating that the crop will produce a greater
percentage of larger kernels which will further
increase the opportunity for export as there is
a shortage of large sizes in the world market.
There is some confidence in the American crop
that the estimate of 1.85 billion pounds is less
than reality with many believing the crop will
end up slightly higher. Export volumes increased
again compared to this time last year and there
is a reluctance of processers to offer anything
long. This will keep buyers active throughout the
year. Many USA processers are already looking
forward to 2014 crop as there is a potential
water shortage looming which could impact
supply so 2013 crop may have to stretch into
2014. As the crop continues to produce smaller
kernels we are seeing a significant premium for
any reasonably sized offers.
APRICOTS (Turkey)
Stable
The Turkish Apricot market is currently very
stable with prices around USD $3.00/kg for
size #4’s. Prices are expected to soften in
coming weeks with demand for larger sizes
decreasing and the expectation that buyers
have booked their usage for the Christmas
2013 period. Reports from suppliers are
advising that the market has settled at bottom
levels in Turkey. No major changes to pricing
are expected to occur until March or April
2014 when weather conditions, frost situation
and currency movements should then give
an idea about the 2014 crop and market
conditions. During the August 1 to October
16 period of this year 41,398 tons of apricots
were exported compared to 39,259 tons
exported during the same period in 2012.
BRAZIL NUTS (Brazil / Bolivia)
Steady
Continuing on from the last report. The
Brazil market continues to be quiet as many
processors are fulfilling existing contracts
as the industry is waiting for new season to
become available. Most collectors will be going
out just before the New Year to start bringing
in new crop. We are moving closer to the busy
shipping period before Christmas which could
create some delays in shipments from origin.
CASHEWS (Vietnam / India)
Steady
Even with the East African crop becoming
available we haven’t seen an increase in
buying for raw seed as the kernel market
continues to be quiet. Within Vietnam, Vincas
has advised their members not to offer low
priced contracts until they have secured the
raw seed. There has been some upward
movement in raw seed which will soon reflect
in kernel pricing as contracts will become
unprofitable. Reports suggest that processers
are not sitting on large amounts of stock as
demand continues to be sporadic as most of
the Christmas trade has been concluded.
COCONUT (Philippines / Indonesia)
Firm/Volatile
Effects from Super Typhoon Haiyan which
hit the Philippines is expected to have a
major impact on the coconut industry. The
damage is still being assessed and it could
be some time before we understand the
domino effects from this catastrophe. While
the storm has largely spared the desiccator
mill factories, some of the traditional supply
areas have been affected. There are 79
provinces in the Philippines, 68 provinces
are coconut areas and initial reports are that
36 have been damaged by the typhoon. The
Visayas region which bore the brunt of the
super typhoon is the base for majority of the
coconut oil mills. Oil mills use up 80% of local
coconut production in the form of copra (oil
mills and desiccators compete for the same
raw material). With so many trees uprooted
and felled by strong winds, these oil mills
will be looking to source their raw material
in other areas. Prices have risen sharply as
many millers are now out of the market until
they have a clearer picture on availability and
where nut prices will be.
HAZELNUTS (Turkey)
Steady
Once the holiday period finished in Turkey
there was an increase in buying activity which
caused the market to firm. In the following
weeks the market stabilized as buyers held off
in making any more offers. Alternative origins
such as Georgia are handling a large number
of enquiries from China for in shell product.
Weaker demand in the last week has caused
the market to soften slightly but prices still
remain higher than new season.
14
Sugar MARKET REPORT
PEANUTS (USA / China)
Stable
The world peanut market is stable at present
being lead by Argentina as the world’s leading
export supply origin. Reports from Argentina
are forecasting that plantings will be down
between 8-10% on last year. However, with
favourable weather conditions this shouldn’t
affect the overall volume produced, as last
year the yield was down due to drought
conditions from late December through to
March. The current USA crop has significantly
less plantings than last season (approx.
40% down) so that crop is not expected to
provide market relief. The Chinese crop is
becoming less influential year on year in terms
of supply to Australia as China are now a net
importer of peanuts these days. This does not
mean the Chinese crop is less important as
they do need a large crop to satisfy internal
demand for cooking oil and snacking. The
Australian crop has begun planting for
next year with over 60% of farmers already
taken seed to sow. Overall if there is any
remaining requirement for this season it is
recommended to take cover.
The Brazilian harvest is beginning to wind down with spasmodic rain
hampering operations and some mills closing for the season. While
sugar production is on par with last season (third graph), ethanol
production is up some 20%, with the anhydrous ethanol (used to blend
with gasoline) sales up 28% from last year due to the increase in the
mandated blending requirement. There are rumours than some mills
may not open next year as a result of financial hardship. This combined
with a fall in sugar yields and capacity constraints may see Brazil unable
to get anywhere near being able to crush next season’s crop which
could reach as high as 640 million tonnes of cane.
The world raw sugar market’s recovery through September and
the first half of October has proven to be short-lived, with prices
retreating back towards their recent lows thanks mainly to supply and
demand fundamentals.
After posting three-year lows in July, world raw sugar futures rose on
the back of re-stocking and speculative buying. This speculative/fund
buying saw their net position turn sharply from a short (sold) position to
the largest long (bought) position, as a percentage of open interest, on
record. This buying, as well as a fire to Copersucar’s terminal facility in
the Brazilian port of Santos which destroyed 180,000 tonnes of sugar
and will see their operations limited for some months, saw the prompt
contract gain over 3 c/lb to reach a ten-month high of 19.50 c/lb.
However with damage from the fire reassessed as well as profit taking
/ long liquidation and producer pricing emerging, prices (basis prompt
contract) have been unable to sustain these levels and have fallen back
to the 17.5 to 18.0 c/lb range (see first graph).
SULTANAS (Turkey)
Uncertain
Prices in the Turkish sultana market has
finally shown some easing following the
chaotic start to the Sultana crop as fruit has
been released onto the local Izmir Bourse by
stockholders. Only 49,666 tons of sultanas
have been shipped from Izmir until November
9, compared with 74,072 tons shipped in the
same period last year. The significant drop
in export sales has worried Turkish farmers
and traders encouraging offers for good
quality standard no.9 sultanas between USD
2450-2550 per ton FOB Izmir. Fears that
the sultana and raisin crop will not be able
to meet demand should be eased with the
reduction in sales. The potential size of next
season’s crop will be critical in influencing the
current crop price and if there are predictions
of a large crop, prices could be reduced even
further. Buyers should consider this when
making decisions and should possibly only
cover some of their forward demand. The
market conditions in Turkey have allowed the
US raisin market to continue it’s strong trend
of increased sales to all its export markets.
Prices have remained stable with offers for
Thompson seedless raisins available between
USD $1.07-1.10 per lb C&F covered out until
March/April 2014. The prices for Chinese and
Iranian sultanas have also remained at their
high starting price despite recent movements
in Turkey. They are not expected to fluctuate
much in the short term as both markets
have stabilized.
Edition 4, 2013
The devastation caused to local communities in the Philippines by
typhoon Haiyan fortunately will only result in cane losses of around
15%, while in India, another pre-season cane price dispute (mills are
forced to pay a government-set minimum cane price) has seen only
one-third of mills start crushing this season, although the country
expects to export around three million tonnes. If this level of exports
eventuate, combined with another bumper crop in Thailand, will
see further downward pressure on prices. The International Sugar
Association has also just revised their 2013/14 global sugar surplus 5%
higher to 4.73 million tonnes.
The forward futures curve (second graph) shows nearby contracts are
a discount of over 150 points to further-dated contracts, illustrative of
the surplus market conditions we are currently in with many importing
countries able to replenish stocks at attractive price levels.
Domestically, the Australian sugarcane harvest is coming to an end with
only a few mills still crushing. The final cane volume delivered to mills
this year will come in at around 30.5 million tonnes, making around
4.2 million tonnes of raw sugar produced, with over 75% of this to
be exported.
The information contained in this report is general in nature and is not
intended to constitute financial advice.
Edition 4, 2013
15
Ai Group Confectionery Sector
Confectionery Industry News
In the spotlight
Interview with Donna King, CEO
Australian Sweet Co
What do you do at Australian Sweet Co?
What do you love about the industry?
We produce a range of handmade,
gourmet confectionery using traditional
recipes with a modern twist.
What’s not to love about lollies,
chocolates and sweets? My mother
and I have always had a sweet tooth,
and she taught me how to make
sweets when I was growing up.
There is something truly special
about making something you love
for a living, and there are still lots of
opportunities to create fantastic and
fun products.
As a fairly new, family-run confectionery
business, I absolutely love the challenge of
growing the business from the ground up.
What would you do if you weren’t in the
confectionery industry?
I’ve run various service-based
businesses over the years and I love
the new challenge of creating a brand
that is outside of myself. If not in the
confectionery sector, I would probably
look at doing sell goods/services online or
maybe come up with that next “must-have”
app.
What types of advertising/marketing
mediums are the most effective for your
company?
What are you promoting at the moment?
We still do lots of face-to-face
marketing. We love to get out to markets
and festivals and give our customers
the opportunity to see and sample our
products, and then we promote them in
their local lolly shops and gourmet delis.
We are working hard at promoting our own
branded line of products and emphasising
the Australian made aspect, as well as our
goal to use Australian ingredients as much
as possible.
We have also just re-launched our website
and I’m looking forward to exploring new
ways to promote and sell our products
through this medium.
Earlier this year we took over the
manufacture of aniseed balls and
gobstoppers from a Perth-based
manufacturer. I believe we are the only
Australian company making gobstoppers,
and ours really are ‘ever-lasting’.
What is the biggest challenge facing the industry
today?
Remaining competitive against imports.
We are working really hard on promoting
the use of Australian ingredients to
produce a product that not only looks
fantastic but tastes awesome.
What is your favourite chocolate or lolly?
Oh, where do I start? I love our
Macadamia Brittle – it gets hand broken
on the table and there are always small
pieces left over that I love to take home
and put on ice cream. My other firm
favourite would have to be chocolatecoated raspberries. Yum!!
Favourite food?
I love food that is spicy and full flavour, but
not too much chilli. Sri Lankan and Thai
are my favourite cuisines.
Favourite movie?
I love a good musical and a romantic
flick – Dirty Dancing, Mamma Mia and
The Notebook are on constant replay in
our house.
Favourite way to spend the weekend?
Chilling out with my fourteen-year-old
daughter. That is, if she wants to spend
time with me. I also love taking the dog
to the beach or the park.
Favourite sporting team?
The Australian Diamonds netball team.
Favourite holiday destination?
Nashville, USA for the County Music
Festival and London.
If you could dine with any three people, living or
deceased, who would you choose?
Sir Richard Branson, Beyoncé and
my Nan.
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16
Edition 4, 2013
13455
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