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Updated on 13/05/2003
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WELCOME    HEADLINE NEWS 13 May 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.

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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

STOP PRESS

US to challenge EU’s GM ban at WTO

Ahold director quits in wake of accounting scandal

UK marked down in innovation stakes
McDonald’s goes vegetarian
Artificial intelligence spots new genetic regulators
FDA proposes two new anti-bioterror rules

GM

US to challenge EU’s GM ban at WTO

The United States is to challenge the European Union’s four year moratorium on the import and cultivation of genetically modified organisms (GMOs) at the World Trade Organisation.

The move marks an escalation in the trade disputes between Europe and the US, some of which related to the subsidies each government pays to its farmers and to trade barriers such as import tariffs on commodities such as steel.

David Byrne, Europe’s consumer protection commissioner, described the Americans’ timing as “eccentric”. He believes the ban will be lifted by the end of the year, well before the WTO has a chance to hear the case.

It is believed that the US is acting heavy pressure from GMO suppliers such as Monsanto and food exporters. Ironically, the Bush administration faces calls for tougher rules on GM crops from US food and beverage manufacturers. They are worried that GM organisms could wind up in the food supply.

Business

Ahold director quits in wake of accounting scandal

Jim Miller, chief executive of US FoodService, the subsidiary company that misled Dutch retailer Ahold to the tune of $880 million, has quit.

Ahold chairman Henny de Ruiter announced today that the Ahold board had accepted Miller’s resignation. The scandal has already cost the careers of Ahold’s chief executive and chief financial officer, as well as US Foodservice’s finance and marketing bosses. More resignations and criminal prosecutions may follow once internal and Securities Exchange Commission staff have completed their investigations.

Innovation

UK marked down in innovation stakes

Britain’s ability to innovate and so gain a competitive edge has been blunted by poor middle management, short term thinking by investors, low investment in research & development, and an education system that avoids maths and science.

These are some of the main findings in a report by competition guru and Harvard professor Michael Porter published this week. The report, UK Competitiveness: moving to the next stage, was commissioned by the UK’s Department of Industry, and co-written by Christian Ketels.

The report finds Britain at a transition point. It has almost exhausted the competitive benefits of the changes wrought during the Thatcher era, and now finds itself behind the US, France and Germany in terms of capital intensity, infrastructure, unique value added features, formal education for managers (at junior and middle levels), labour productivity and use of advanced technology.

Porter and Ketels believe British managers are following the least cost/lowest price route to a competitive position. In contrast, most of its peers are looking to combine high value products with advanced management and control systems.

“To achieve higher prosperity, UK companies will need to upgrade their productivity by competing on more unique and more innovative products and services,” say the authors. “This will require changes in management behaviour, but it will also require targeted investments in the business environment, and the development and strengthening of new types of institutions. It will no longer be sufficient to just increase the efficiency of the existing infrastructure, the educational institutions, and the science and technology system; it will require the commitment of additional resources.”

They add both private and public sector will have to review their traditional roles. “The challenge is not solely private sector management (as) is sometimes assumed; it is how the public and private sector can jointly make the leap to the next stage.”

They argue for less government control and for the private sector to take the lead in improving competitiveness and prioritising actions. “Tight government control now will make success less likely. It will crowd out private sector leadership and runs the risk of picking bad priorities.”

To see the entire report click here.

Food service

McDonald’s goes vegetarian

US fastfood company McDonald’s, once synonymous with fat-rich meals, is offering healthier options to Californians from today. 

McDonald's 600 restaurants in Southern California have a new "Salads & More" menu that includes an all-new McVeggie Burger, a meatless Yves Veggie Cuisine soy-based patty with tangy barbeque sauce, fresh lettuce, tomato, slivered onions and pickles, all served on a toasted whole-wheat bun. At 8 grams of fat and 350 calories, the sandwich is cholesterol free, low in saturated fat and a good source of protein, vitamins and minerals, and all for about $2.19.

Another new product, a whole wheat grilled chicken sandwich with barbeque sauce, complements three recently-introduced premium salads plus a side-ranch medley salad, all served with Newman's Own(R) salad dressings. A fruit/yogurt parfait and a chicken fajita complete the new menu.

Comment: This could be a seminal moment in food history; the day McDonald’s became politically correct. After all McDonald’s has been nothing if not controversial. Remember the court cases, the desecration of Brazil’s rainforests, the bombs, the dehumanised service staff. For those who have grown up under the Golden Arches, soon it will no doubt bring a nostalgic tear to the eye to hear someone ask “Do you want fries with that?”

Biotech

Artificial intelligence spots new genetic regulators

US and Israeli computer scientists and geneticists have developed a method that uses pattern recognition to identify the genes that control the genetic machinery of a cell.

In a paper published online yesterday in Nature Genetics, researchers from Stanford University and Israel's  Hebrew University and the Weizmann Institute said that their method revealed several previously unknown control, or regulatory, genes from Saccharomyces cerevisiae, or baker's yeast.

The results come from software that develops general models for recognising meaningful patterns that span many related databases. This unique ability to "mix and match" biological data sources gives the new method its power.

Regulatory genes are usually identified experimentally, not computationally. The new method identifies regulatory candidates for testing in the lab and predicts how each regulator will affect cellular activity. 

In response to internal or external signals, regulatory genes tell clusters of genes to turn on or off, in other words, to start or stop making proteins. The proteins from each gene cluster, in turn, are responsible for a different cell process. These processes include converting sugar to energy, responding to stress, folding proteins, and building cellular components such as the nucleus.

The pattern recognition technique uses statistical models and relational databases to look for patterns across many different data sources. These include microarray data, DNA sequence data or protein-protein interaction data.  This lets the researchers assemble data sets like Lego blocks, plugging a new database into the relational structure and letting the algorithm go to work.  To make the results of this type of analysis more accessible to biologists, the group has developed the GeneXPress visualisation and exploration tool, freely available on the web.

Food safety

FDA proposes two new anti-bioterror rules

The US food & Drug Administration has proposed two new food safety regulations to bring industry in line with the Public Health Security and Bioterrorism Preparedness and Response Act of 2002.

The two new rules deal with establishing and maintaining records among food firms, and the administrative detention of foods that may pose a risk to public health. The other two proposals, concerning the registration of food facilities and prior notice of imported foods, were published in January 2003.

"These proposed regulations measures will further bolster FDA ability to protect the more than 400,000 domestic and foreign facilities that deal with food within our country," said FDA Commissioner Dr Mark McClellan.

Food and beverage manufacturers, processors, packers, distributors, receivers, holders and importers would be required to keep records identifying the immediate source from which they received the food, as well as the immediate next recipient. This would apply to almost all foreign and domestic food sources and almost all recipients of food destined for consumption in the US.

“It would assist FDA in addressing credible threats of serious adverse health consequences or death to humans or animals,” the FDA said.

For persons other than transporters, the proposed rule requires the records to contain the following information for each article of food:

  • the firm's name, and the responsible individual representative of the firm that was the immediate previous source or the immediate subsequent recipient of the food

  • the address, telephone and fax numbers, and e-mail address of that person, if available

  • the type of food, including brand name and specific variety

  • the date received or released Lot number or other identifier number, if available

  • the quantity and type of packaging

  • the name, address, telephone number and, if available, fax number and e-mail address of the transporter who transported the food

  • the immediate previous source.

The specific source of each ingredient used to make every lot of finished food product would have to be identified if this information is reasonably available.

“What is reasonably available may vary from case to case,” says FDA, adding firms have between four and eight hours to tell the FDA of suspect items.

Transporters such as trucking companies, private delivery carriers, railroads and airlines may also have to keep similar documentation, including information about all the means of transportation used.

FDA proposes that firms hold records for a year for perishable foods not intended for processing into non-perishable foods, and for animal food including pet food. Records for all other foods would have to be retained for two years after the date they were created.

There are some exemptions: farms, restaurants, (including all operations that prepare food for, or serve food directly to consumers), fishing vessels not engaged in processing, and firms regulated exclusively by the US Department of Agriculture. Some foreign facilities may also escape if their food products undergo further manufacturing/processing, including packaging, by another facility outside the United States.

FDA must publish a final rule no later than 12 December 2003, in accordance with the deadline given in the Act.

The other proposed regulation on administrative detention allows the FDA to detain any article of food for which there is credible evidence that it is a health threat.

Meanwhile the FDA and the Centres for Disease Control (CDC) are to expand the National Laboratory Response Network (LRN) and the Food Emergency Response Network (FERN) to include more counter terrorism laboratories capable of analysing foods.

The CDC will set up special funding arrangements to cover the extra cost of the work.

The CDC is expanding the scope of its cooperative agreements in the current funding cycle to include preparedness and response capacity of state food laboratories and other laboratories. The expanded network will accommodate the need for effective and efficient testing of food specimens to help public health officials deal with apparent or actual incidents of biological or chemical terrorism.

 
Tuesday, 01 February 2005
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