The magazine for professional developers of consumer packaged goods
Updated on 30/05/2003
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The European Parliament  has banned the use of konjac (E425) in jellies by amending Directive 95/2/EC. Member states will have six months from publication to give effect to the ban through local legislation.

WELCOME    HEADLINE NEWS 30 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

BASF innovates eco-friendly barriers for paper
Timing is everything
UK’s FSA issues new salt intake guidelines for kids
Bottled water leads to pollution problem
ConAgra poaches Nestlé boss
Whining power
Trade the real issue behind US GM complaint
Innovation needed to drive category sales

Fast takes

Harvard University researchers reckon vitamin E may be good for more than stretch marks and rust. They reckon it could also inhibit inflammation, aid the proliferation of smooth muscle cells, and help the body to use vitamin A, essential for health cells and good vision.

The US National Food Processors Association (NFPA) has welcomed the US Department of Agriculture’s decision to permit irradiated meat in school meals. European regulations ban all but a few irradiated products.

The United Nations’ Food & Agriculture Organisation (FAO) and World Health Organisation (WHO) have called for the submission of data on the levels of acrylamide, a cancer-causing agent, in foods and total diet. Details from http://www.acrylamide-food.org.

The White House is likely to ask the USDA to come up with dietary guidelines that encourage people to eat more fish and vegetables and to cut back on sweets and potato crisps. The new guidelines, due in 2005, will have a massive impact on school meals and food labels.

Packaging

BASF innovates eco-friendly barriers for paper

A new approach to innovation has helped German chemicals company BASF to ally with Sweden’s paper giant, Stora Enso, to develop fully recyclable environmentally friendly barrier coatings for paper packaging. BASF hopes it might replace waxed paper, aluminium and plastic foil as the packaging medium of choice.

The 20 month project led to polymer dispersions that protect packaged goods against water, moisture, oil and grease. Application of the polymers forms part of existing production processes. This gives higher production speeds and lower costs than other barrier coating methods.

Since July 2001, BASF has set up several new business development teams to promote new ideas with strong innovative potential and, together with customers, to bring them to market. All projects deploy a clearly defined business development process. Dr Martin Brudermüller, head of BASF’s functional polymers division, said “The success of the barrier dispersions project confirms the importance of BASF's new concept of systematic innovation management.”

The industry has been looking for alternatives to the costly and complex composite packaging for almost 15 years, he said. Up to now, materials such as wax coatings, aluminium and plastic foils have protected packaged goods. The barrier dispersion-coated paper and board packaging is fully recyclable. “This technology shows our dedication to this highly promising market of the future,” said Wolfgang Hormuth, BASF's project manager.

NPD

Timing is everything

Ever wondered if those left-overs are really safe to eat after a week in the fridge? Or if the packet at the back of the fridge is past its use by date? Help is on the way in the form of Timestrips. These are self-adhesive layered stickers that when activated leak food grade coloured liquid at a predetermined rate into special compartments to account for the passing of time.

The makers reckon Timestrips are suitable for almost any product with a shelf life. This includes home cooked food, prepared and frozen food, prepacked herbs and spices, deli counter goods, as well as medicines, baby foods, breast milk, contact lens solutions and even herbicides.

The makers are looking to incorporate the labels into screw tops for bottles, Tupperware and jar lids. They reckon this could prevent the UK from wasting 430 million tonnes of goods that are wasted each year because they are not consumed by due date.

Nutrition

UK’s FSA issues new salt intake guidelines for kids

The British Food Standards Agency has issued salt intake targets for children for the first time, and asked foodservice firms and caterers to cut salt levels in their products.

The advice is based on a new report by the Scientific Advisory Committee on Nutrition (SACN). The FSA says kids should have no more than 1 g/day between birth and six months, rising to 6 g/day for teenagers.

The SACN reckons that cutting salt consumption by one-third for adults, from around 9 g/day to 6 g/day, would benefit public health by reducing average population blood pressure levels. This would cut the risk of stroke and heart disease for the whole UK population.

The British food industry has already acted to cut average salt levels in processed foods.

Waste

Bottled water leads to pollution problem

The staggering rise in consumption of bottle water, especially in single-serve formats, is causing a waste management problem, says the California Department of Conservation (CDOC).

It says more than one billion water bottles a year wind up as California trash and landfill. That costs some $26 million in unclaimed California Refund Value (CRV) deposits annually. If recycled, the raw materials from those bottles could make 74 million square feet of carpet, 74 million extra large T-shirts or 16 million sweaters, among other things.

Which makes performance of the controversial German deposit system for single trip containers worth watching. CDOC reckons only 16% of polyethylene terephthalate (PET) water bottles sold in California are recycled.

People

ConAgra poaches Nestlé boss

ConAgra Foods says the former president of Nestlé foodservice division Allan Lutz is to be president and chief operating officer of its own foodservice operating group. The company also promoted William Caskey to the new position of president of foodservice sales.

Buying habits

Whining power

Don’t underestimate the strength of the whine. US kids will directly control $10 billion in food and beverage spending this year, and will influence four of five purchases in this category, says a new report from Packaged Facts.

Expect more foods and drinks to come with popular cartoons. “Character licensing has turned shopping into a relationship building exercise for children,” said Packaged Facts acquisitions editor Don Montuori.

GM

Trade the real issue behind US GM complaint

The Bush Administration is trying to use guilt over hunger and spurious legal challenges to lever open market for US-grown genetically modified organisms (GMOs). Or so believes the Washington Post.

In a long analysis of the US charge that the European Union’s ban on new GMOs is illegal, the Post concluded that “the dispute needs to be understood for what it is: a multibillion-dollar cross-Atlantic battle over agricultural trade.”

The White House is under pressure from farmers, the food industry and biotechnology companies to prise open exports markets, even as local food processors worry that GM crops grown for pharmaceuticals may wind up in the food chain.

The Post says the US has planted nearly 100 million acres with GM crops, and that agriculture officials claim farmers have lost at least $1 billion over the last five years because they have been unable to export some biotechnology crops, mainly corn, to Europe. However, GM soy products escaped as they were approved before the ban.

Mary Kay Thatcher, director of public policy at the American Farm Bureau Federation, said "We rely on export markets for one-third of our crops; this is a nightmare."

Meanwhile, European consumers and farmers alike appear to be resisting the introduction of GM crops and foods, unless they are clearly labelled. Most are incensed at the Bush plea to the World Trade Organisation to void the EU’s moratorium and labelling requirements. The suit implies, they say, that Europeans should not have the right to say or know what they eat.

The current trade debate is really about food safety and the need to test a product before it is put up for sale. How it is resolved could determine the course of agriculture.

Retailing

Innovation needed to drive category sales

Retailers want innovative products that will drive category sales before they will give them shelf space, says Kathleen Kiley of Consumer Markets Insider, a trade magazine.

She writes “The competition for shelf space in supermarkets, and the need for grocery stores to stay competitive with low-cost mass merchants, has made introducing a new product more important and risky. Not only does a new item have to be successful on its own, but the new product is now expected to also drive overall category sales growth.”

New products contribute to 70% of any given category's overall sales growth, while established brands drive the remaining 30%, according to Information Resources Inc (IRI), a market researcher.

Consumers are looking for products that save them time and make them feel better or look younger, says Kiley. This helped drive sales of breakfast bars to $128 million from $97 million in the first quarter a year ago.

"Manufacturers want a hot product no one else has, and retailers are looking only to drive traffic," says Stan Logan, KPMG industry sector leader of food and beverage. New products hopefully create a new category, allowing companies to develop complementary product lines and extensions, says Procter & Gamble spokesman Robert Killins, citing the company's teeth whitener Crest Whitestrips as an example.

IRI says the teeth whitening category is one of the fastest growing for retailers, up by more than 300% in the US in the last five years, says the American Academy of Cosmetic Dentistry. Growth like that attracts competition. Having a great product is not enough; getting it on the shelves and keeping it in stock is still a problem, says Logan. Besides, it’s hard to be heard over the din of more than 1,000 new launches a year.

Networking

New methods for portal building in economic clusters

European researchers have developed a new way of collecting and publishing information about their local business community.

In an EU-sponsored project, they “trained” Autonomy software to match businesses searching for products and services in the Port of Rotterdam with local SMEs that provided the requested services.

The software learned the context of port services and transport and logistics. Researchers added to an existing database of SMEs extra content regarding the products and services delivered by these SMEs. To do this, they "spidered" SMEs’ websites and created an upload tool to enable SMEs to add extra relevant data.

The developers believe the approach has relevance to other business sectors, particularly economic clusters and business incubators. Details from the Gemeentelijk Havenbedrijf Rotterdam. T +31-10-2521844 E schagen@portofrotterdam.com URL http://www.portofrotterdam.com.

 
Tuesday, 01 February 2005
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