The magazine for professional developers of consumer packaged goods
Updated on 23/04/2003
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WELCOME    HEADLINE NEWS 23 April 2003
Research shows that  90 percent of new products launched in  supermarkets do not survive more than two years. The cost of failure runs into billions.

We believe we can show you some ways to improve your success rate, so subscribe now. It's free for 12 issues.

Anyone who develops new products for a living must be aware of a multitude of influences. Acknowledging this, we cover

scientific discoveries

consumer trends

product design and formulation

engineering technology

process engineering

manufacturing

filling and packaging

logistics and distribution

retail merchandising

end of life disposal

Then there are the legal and regulatory issues, such as safety and labelling, as well as intellectual property rights, brand management, competition and international trade that we have to take into account.

But it all means nothing without the creativity and insights of men and women who can put things together in new ways to create new products that improve our lives.

We celebrate those people.

Ian Grant

Publisher

US NFPA launches safe food web site
Europeans slash four of five GM crop trials
Key information highways are social, not physical
Wrigley chews up competition
MeadWestvaco loses 38 cents/ share for 1Q2003
Sonoco wraps up down under
Developers hit by world events
UK gives £1.3m for alternative medicine research
Fat cell receptor revealed
Breeders adapt soy to US tastes
Grow your own hydrogen fuel
Dixie’s To-Go range takes it away

Tyson Foods to close Maryland chicken plant

Food safety

US NFPA launches safe food web site

The US’s food processing industry association, the National Food Processors Association (NFPA), has set up a web site to give consumers practical advice, interesting facts, and simply stated background information on food topics in the news.

The web site, at www.safefood.org, has 13 information sheets on topics such as food allergies, irradiation, labelling, food safety and obesity.

The industry has drawn criticism in the past for encouraging Americans to eat more. This may be the start of a shift towards eating better.

GM

Europeans slash four of five GM crop trials

Four out of five genetically modified (GM) crop trials in Europe are no longer running, according to a new report from the European Science and Technology Observatory.

The report shows that field-based trials have fallen by almost 80 percent since 1998. This is due mainly to negative consumer attitudes that led to a moratorium on approvals of new trials, as well as legal uncertainty about ownership of the intellectual property arising from the trials.

Even so, the next five years will see the development and marketing of herbicide-tolerant maize, oilseed rape, soybeans, and sugar beet; insect-resistant maize, and potatoes; and modified starch or fatty acid content in potatoes, soybeans, and oilseed rape.

Ten years from now will show more varied modification of the nutrient content of key crops, and the development of fungi-resistant and virus-resistant varieties.

The report is at http://www.jrc.es/gmoreview.pdf.

Research

Key information highways are social, not physical

The most critical networks in any organisation are not necessarily the ones carrying Internet traffic, but the social networks among persons and groups that define an organization's process and knowledge flow.

At least, that’s what researchers who have just attracted $4 million in funding from the US National Science Foundation (NSF) believe.

The NSF is funding eight projects under the Management of Knowledge Intensive Dynamic Systems (MKIDS) programme. The aim is to see how information technologies can streamline processes for organisations that must respond rapidly to incoming knowledge, dynamic situations and uncertainty. These include news media, multinational research corporations, global finance institutions and the intelligence community.

One project hopes to estimate the size, shape and weaknesses of those social networks to help managers predict how an organisation is likely to respond to change. Another hopes to design organisations with no weaknesses at all.

Others include developing ways to represent, store and share knowledge derived by the systems, ensuring the systems can scale to global organisations, learning ill-defined workflow rules, allowing managers to participate in distributed decision-making, and developing innovative metrics and monitoring methods to evaluate performance.

Finance

Wrigley chews up competition

US chewing gum maker Wm Wrigley’s first quarter 2003 sales rose 12 percent to $672 million on a worldwide unit volume gain of four percent mainly from Europe and the US. Net earnings for the quarter were $0.43 per share, up $0.05 or 13 percent.

MeadWestvaco loses 38 cents/ share for 1Q2003

US-based packaging company MeadWestvaco has reported a net loss of $76 million, or 38 cents per share in the first quarter of 2003. This includes a charge of two cents per share due to accounting changes

Net sales for the first quarter were $1.69 billion on weaker demand in most of the company's markets.  Energy and raw materials costs were higher.

M&A

Sonoco wraps up down under

Global packaging company Sonoco has bought the $1.5 million/year Australian Tube Company (ATC), a privately held manufacturer of paper-based tubes and cores, for an undisclosed sum. Sonoco intends to consolidate operations at ATC’s Revsby factory in New South Wales, with its facilities in nearby Ingleburn.

NPD - 1

Developers hit by world events

New product developers are not immune to world events and need to take them into account in their work, says diet supplements boss Loren Israelsen.

“New product development is often seen as a ‘behind closed doors,’ secretive process insulated from politics, world events and regulators. However, at no time in recent memory has it become more important for R&D teams to be aware of and consider the impact of big picture issues,” he says.

He reckons developers need to monitor the following items as part of the new product development process.

Bioterrorism. New US legislation in the wake of 9/11 will likely have a dramatic and long-term effect on the ability to source and import new ingredients from overseas.

Proposition 65. “It really means 65 ways to ruin your new product launch in California,” says Israelsen. Increased vigilance in selection and analysis of raw materials must be Standard Operating Procedure (SOP) for all companies.

FTC’s weight loss campaign. The Federal Trade Commission’s move to crack down on false and misleading claims with respect to weight loss products means processors will have to make a very careful review of the safety and substantiation for the ingredients driving such claims. 

GRAS. Manufacturers hit by the sharp decline in dietary supplement (DS) sales may be tempted to offer dietary ingredients as new functional food ingredients. But this risks breaching laws that say they cannot be sold in foods unless they already generally recognised as safe (GRAS) or affirmed as GRAS. Hence a GRAS checklist should be a part of all new product development.

Funding

UK gives £1.3m for alternative medicine research

The British government is to give researchers GBP1.3 million to explore the benefits of complementary therapy and alternative medicines such as acupuncture and homeopathy in treating cancer, asthma, depression and chronic fatigue syndrome.

Public health minister Hazel Blears said that as more people use alternative therapies, "the development of a solid evidence base for complementary and alternative medicine is important."

Obesity

Fat cell receptor revealed

A cellular receptor that balances the accumulation of fat and fat burning in the body has been discovered by Salk Institute researchers, says a study published in Cell.

The receptor, PPARd, was found to regulate how the body uses fat and could point the way to new treatments for obesity and its associated complications: type II diabetes, cardiovascular disease, hypertension and atherosclerosis.

Stimulating PPARd (short for peroxisome proliferators-activated receptor) depleted fat deposits in mice, while mice deficient in PPARd were prone to obesity.

The body stores excess calories in fat tissue for future use. Fat is released and consumed when energy is needed, such as from exercise or shivering from cold exposure. PPARd is an important regulator of this function. By exploiting this, the researcher hope to design drugs that can control how much fat is stored in the body.

Obesity is officially an epidemic in the US. About 65 percent of Americans are thought overweight, and one in five is obese in some states.

NPD - 2

Breeders adapt soy to US tastes

As the health benefits of soy become better known, an Arkansas researcher is trying to adapt the bean to the sweeter taste preferred by Americans.

University of Arkansas assistant professor Pengyin Chen has mined the USDA soybean germplasm collection for genes that he uses to breed specialised beans adapted to Arkansas.

He has already produced larger and smaller beans. The larger soybeans are preferred for products such as tofu, miso (a paste made from soybean and rice), soy nuts and soy milk. The smaller beans are desired for making natto (a Japanese food made of fermented soybeans) and bean sprouts.

He is now working on selections for appropriate maturity, disease resistance, and resistance to lodging and shattering. Other projects look to varying colour (chocolate-coloured beans, for example, are desirable for soy nuts), increasing protein content and adjusting flavour to match Western tastes.

"We know the genes that produce the 'beany' flavour preferred in the Orient, but disliked in Western cultures," Chen said.

"By reducing this flavour and increasing the sucrose content, to produce a sweeter bean, we can develop a specialty bean for soy products that suit American tastes."

Energy

Grow your own hydrogen fuel

Environmentally friendly hydrogen powered fuel cells have taken a century to catch on, at least partly because of the flaming legacy of explosive disasters like the Hindenburg.

But news that you may soon be able to grow your own hydrogen may change that.

A research team at the US National Energy Technology Laboratory is using bacteria to produce a gas that is 80 percent hydrogen.

When burned, hydrogen produces pure water. The most promising current technology to produce hydrogen is to blast natural gas with nuclear-heated steam, stripping off the hydrogen ions.

The search for a better way to produce the gas has focused on a handful of microbes, thermotoga neapolitana and Chlamydomonas reinhardtii, the common green algae.

The unusual thing about the T. neapolitana work is that it seems to produce its hydrogen from ammonia in the form of cheap crystallised urea without fermentation at an optimum temperature of 75 degrees C.

The system, which produces right litres of gas an hour in a 14-litre glass bioreactor, should be easy to scale up. The high temperature of the bioreactor kills other microbes, which means sterile conditions aren't necessary--a big money saver. Also, cooling the reactor stops hydrogen production quickly.

Researchers elsewhere are using chlamydomonas reinhardtii, the common green algae, to produce hydrogen instead of carbon dioxide during photosynthesis. Without sulphur, the algae produce hydrogen by stripping the hydrogen atoms from water in a process very similar to electrolysis, and producing very few waste gases other than nitrogen.

But the algae are not as efficient as they could be. The researchers are tinkering with the algae chemically, physiologically, and genetically so that all of the light energy received by the cell is used to mine hydrogen from the water.

This system presently produces electricity costing 70 cents per kilowatt. Better efficiency can cut this to seven cents, two more than for natural gas. Better reactor design and recycling of the feedstock of inorganic chemicals could halve that cost again.

A 20 million euro, five-year multi-country European project uses fermentation and photosynthetic bacteria. They will ferment agricultural waste in a large anaerobic reactor, relying primarily on an extremophilic bacterium, Caldicellulosiruptor saccharolyticus. That process releases some hydrogen and also creates acetate. Then the brew is transferred to a glass-encased reactor filled with the photosynthetic bacterium from the Rhodopseudomonas species. That microbe breaks down acetate into hydrogen and carbon dioxide. The waste stream can then be burned to produce more energy. If all goes according to plan, they hope to harvest as much as 60 percent of the hydrogen from the feedstock.

But Craig Venter, who decoded the human genome, plans to build a hydrogen-producing engine, gene by gene, from a skeleton extremophile bacterium. 

Packaging

Dixie’s To-Go range takes it away

Dixie Foodservice has launched a new five-strong line of To-Go products for foodservice operators in the $161 billion takeout market.

The range includes PerfecTouch containers, Dixie Stoneware and Adaptables packaging, Liddles portion cups, and Quilt-Rap bags that retain food temperature, stop leaks and spills, and improve food presentation and image.

Manufacture

Tyson Foods to close Maryland chicken plant

Some 650 people will lose their jobs at the Tyson Foods poultry complex in Berlin, Maryland . Tyson aims to close the plant by the end of the year at a cost of $30 to $35 million, but saving $10 to $15 million from 2004.

The Berlin complex includes a hatchery and feedmill, in addition to the million chickens per week plant.

 
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