Unsafe in any place?
Campina builds growth on innovation 
Superweed casts questions over GM crops 
EC to investigate Coke 
Toshiba cracks CO2 ceramics 
Bad debts rising in food sector 
Talc makers harm tiger jungles 
US to look harder at food supplements
Rising sun shines on exports...

...But consumers seek novelty 

Health 

Unsafe in any place?

Shakespeare's Richard III may have been playing paranoid when he said "We are not safe, Clarence; we are not safe." But a report on the health threats posed by some 30,000 chemicals suggests he was right. 

Britain's Royal Commission on Environmental Pollution (RCEP) says today's regulatory system "fails to prevent serious risks to human health and the wider environment." Moreover it says consumers lack information on exactly what chemicals are in various products. 

The Chemicals in Products report follows publication last week of a list of more than 100 "chemicals of concern" from another government-sponsored body, the Chemicals Stakeholder Forum. The commission called on the government to tighten up policies to protect consumers. But the US warned that this might breach World Trade Organisation rules. 

Environmental campaigners Friends of the Earth is to work with 13 British retailers to eliminate the most dangerous of the chemicals. The bakers' dozen is Argos, Body Shop, Boots, B&Q, Co-op, Debenhams, Early Learning Centre, Focus Wickes, Homebase, Ikea, Marks Spencer, Mothercare and Sainsbury's. 

Innovation 

Campina builds growth on innovation 

Dutch diary products manufacturer Campina has opened a new innovations centre in The Netherlands. The move is part of its drive to use research and development to growth sales and market share despite a lack-lustre market. 

"Efficient and transparent processes, critical mass and focus form the three basic elements for fast and effective innovation," the company says. Campina has concentrated R&D in three innovation centres (liquid milk products or Campina Innovation, cheese and butter, and ingredients). 

The centres link to external technology centres to make optimal use of knowledge and skills and the focus on market segments. Direct co-operation with marketing employees ensures that innovations match consumer needs. Staff at Campina's research and development centres are connected to laboratories worldwide so that the results of fundamental research are known early and used in the company's own innovations. 

In recent years, Campina has won patents in packaging, cheese, desserts and ingredients in the food and pharmaceutical sectors. The centre, which serves Campina's Dutch, German and International divisions, will concentrate on health, user convenience, enjoyment and safety in "white dairy" products. 

GM

Superweed casts questions over GM crops 

As president George Bush was pushing genetically modified crops as the answer to hunger in the developing world came news that weeds are becoming resistant to the weedkillers that complement the GM seed. The news suggests that GM crops will need more weedkillers, not less as GM supporters have claimed. 

Iowa State University's Professor Hartzler says five species of weed have been found with resistance to Monsanto's Roundup. Monsanto sells seed modified to tolerate glyphosate, the chemical name for Roundup. This allows them to be sprayed with the herbicide throughout the growing season. It now seems that more weedkillers will be needed, on top of the glyphosate. Reports suggest that the weeds evolved their resistance naturally. 

Business 

EC to investigate Coke 

The European Commission is to investigate Coca-Cola's European operations for suspected anticompetitive practices. The news adds to Coke's legal troubles; it is already subject to a Securities Exchange Commission investigation into its US business practices and an awkward whistle-blower suit from a former employee. 

The EC first looked at Coke in 1999 when it raided offices in Germany, Austria and Denmark and later in the United Kingdom and Belgium. They want to see whether Coke gave illegal rebates and loyalty payments to retailers and wholesalers to edge out other soft-drink companies. 

Although payments for trade promotions are not strictly illegal, in 1999 Coke paid a $16 million fine in Italy and is waiting for a case in Spain to be heard. The EC is expected to say in autumn if it will proceed with the action. 

Misaccounting of trade promotion revenues is thought to be at the heart of Dutch retailer Ahold's recent financial scandal which saw it report sales more than half a billion dollars lower than previously. 

Innovation 

Toshiba cracks CO2 ceramics 

Toshiba Ceramics says it has developed a lithium-silicate based ceramic material with exceptional carbon dioxide (CO2) absorption characteristics, which offers new applications in environmental management and carbonated beverages. The new material can absorb 400 times its own volume of CO2 at an unmatched rate of absorption at room temperature for more than 500 cycles without degradation. Commercial samples are available, it says. 

Building on earlier work on cylindrical formats, Toshiba Ceramics can now form spherical lithium-silicate. This improves performance, and gives a granular form that absorbs CO2 at room temperature and at a ten-times faster rate of absorption. The spherical version releases all CO2 during discharge, and is ideal for repeated use at high temperature applications, the company claims. CO2 fixed in the new ceramic could also be recycled. 

Toshiba and Toyo Engineering Corporation are testing a system to separate CO2 from hydrogen when the latter gas is produced from natural gas heated to a temperature of 500 to 600 degC. This will simplify hydrogen production and increase efficiency. 

Toshiba expects to sell the new ceramics to thermal power plants, where they will provide the cheapest solution yet for capturing and fixing CO2. The captured gas could then be sold to beverage companies that use CO2 as an ingredient. 

Business 

Bad debts rising in food sector 

Three years of economic slowdown are putting more UK food companies out of business, and things could get worse, warns a credit insurance company. "Businesses across all sectors of the food industry should secure their cash flow and protect themselves against the risk of bad debt in the light of rising levels of insolvencies in the industry over the past year and forecasts for further increases," says Gerling NCM, a UK credit insurance and receivables management company. 

Fewer tourists means less food sold. This has pushed insolvencies in the hotel and catering industry up by 37% in the past 12 months. Wholesale and retail business failures rose 20% over the same period, and forecasts suggest that food retailers are in for a tough 2003, it says. 

Environment 

Talc makers harm tiger jungles 

Illegal talc miners in Rajasthan, India are destroying a protected forest that is home to endangered tigers. The talc is going to cosmetics manufacturers including Unilever, Johnson & Johnson, Revlon and Avon, say the Environmental Investigation Agency (EIA) and Friends of the Earth. 

They accuse the Golcha Group, an Indian mining company, of illegally quarrying for soapstone in the Jamwa Ramgarh Wildlife Sanctuary. "Soapstone is used for cosmetics, detergents and skincare products, and the illegally mined talc could be finding its way in to UK products such as Dove, Lux and Omo," they say. 

The wildlife sanctuary is an important tiger habitat, and mining could also be having a damaging impact on water levels in the area, they suspect. Indian law forbids mining within 10km of the protected area. 

Supplements 

US to look harder at food supplements 

A rising tide of class action suits may force US regulators to tighten their scrutiny of the $18 billion/y food supplements industry. Manufacturers are presently exempt from having to provide proof of the efficacy of products generally regarded as safe. But a growing queue of multimillion dollar class action suits may force a change. 

A California judge recently fined Cytodyne Technologies, the maker of an ephedra-based weight-loss pill, $12.5 million for false advertising. He also slammed claims made by the food supplements maker. Cytodyne makes Xenadrine RFA-1, the supplement implicated in the death of a baseball player. The judge said Cytodyne exaggerated the findings of clinical trials it commissioned, and also pushed some researchers to falsify results in published scientific articles. 

In less than a year judges have found three other makers of weight-loss pills guilty of false advertising. A federal judge said a fourth had hidden evidence. Most cases involved ephedra-based products. 

Markets 

Rising sun shines on exports 

Japan's decade-old economic crisis has not hurt it taste for imported food, but the shape of the market is changing as the population ages. Japan imports 60% of its food, making it the world's largest food importer. Demand for imports is rising as the population ages. Seafood and meat dominate, but processed food and drinks imports have risen from 36% to 44% by value. 

Although the Japanese are still largely loyal to local cuisine there is a gradual and irreversible increase in awareness and acceptance of Western products. Ten years ago the Japanese didn't eat cheese, but it is now a mainstream grocery item and imports are rising rapidly. 

The recession has changed consumption patterns. Whisky, wine and beer imports have been hit hard. Beer imports have decreased by 90 per cent over the past few years as consumers returned to domestic brands and happo-shu, the low alcohol beer. Wine and whisky, similarly hit, reflect a significant drop in the conspicuous consumption associated with corporate entertaining. More now eat at home, and 16 major food scares in two years has pushed safety up the agenda. 

Italian food is fast becoming a Japanese favourite. Pasta is not unlike soba noodles and the preference for simple recipes focusing on fresh produce is common to both cuisines. Japanese consumers are keenly aware of product origin; Italian food needs to be of Italian origin, cheese should be French, etc. The exception is Indian food. Japan has a curry culture, but one with a style entirely different to Indian food. The preference is for beef curry, which clearly is not an Indian dish. 'Curry culture' is seen to come from Britain. Japanese companies value and look for enthusiasm, consistency, reliability and stable management in trading partners. Food from Britain, the marketing consultancy, says those seeking to export to Japan should: 

• Seek introductions at the most senior possible level 

• Send senior representatives o Do not meet buyers without firstly researching the market, category and segment 

• Demonstrate domestic success of the product

• Expect to be asked for exclusivity; if granted, set a time limit  

• Expect to provide the equivalent of five to 10% of turnover for advertising and promotions.

...But consumers seek novelty 

Product developers have to surprise consumers with novelty products to create new markets in Japan. More and more it is understood that fickle consumers will not let a product become a big hit unless they are surprised twice - when they first see it and then after they try it. Originality is essential to grab their attention. 

Novel products achieve popularity mainly by word of mouth. With the rapid spread of camera-equipped cell phones, it is now possible for consumers to show such items to their friends via their handsets right from the store. Inevitably, however, rivals quickly copy such groundbreaking products, unless the technologies are too difficult to reverse engineer. To stay ahead of the game, developers have to start introducing new ideas even as earlier releases are still struggling to reach the big time. 

Breath film and a paint-on stocking show the kind of ideas hitting big with consumers. The breathe film product is a thumb-size case that holds 24 sheets of mint-flavoured film that are only 55 microns thick. The film quickly melts in the mouth with an unexpectedly strong mint flavour kick. The film-type breath mint, dubbed Cool Shock, was developed by chewing-gum maker Lotte has become popular, particularly among young men in their 20s and 30s. Compared to granular mints that make it difficult for people to speak while eating, the film-typed candies, which melt in several seconds have become the in-thing. 

The Air Stocking from Nissin Medico launched at the beginning of the year. When users apply the liquid foundation mixed with silk powder to their legs, it looks as if they are wearing nylon stockings. Air Stocking is the first consumer item marketed by the Tokyo-based company, whose main products are cleaning sprays for air conditioners. The idea came from the company's women staff, who said that they like to wear sandals but don't want to show bare skin, and others who do not want to cover up their pedicure under stockings. Air Stocking gained wide recognition through demonstrations at shops, and shipped 300,000 bottles in just three months.