Dean Best's food industry blog - from just-food.com

Auchan claims success with French hypermarkets

Fri, 20 Nov 2009 16:58:00 GMT

The deterioration of the French hypermarket sector is well documented.

Casino and Carrefour have both witnessed falling sales and profitability in their hypermarket businesses.

The trend, which began as sky-rocketing fuel prices prompted consumers to eschew out-of-town hypermarkets for more local supermarkets and convenience stores, continues to deepen as recession and still-rising unemployment forces French consumers to cut back on discretionary spending on non-food.

Nevertheless, both Casino and Carrefour remain dependent on the hypermarket channel, which brings in a significant proportion of their domestic sales.

In a bid to rejuvenate the hypermarket sector, Casino and Carrefour have both looked to reorganise management of their hypermarket businesses.

After posting "weak" third-quarter sales at the unit, Carrefour confirmed that it plans to replace the head of its hypermarket business, Alain Souillard, last month.

In a similar move, earlier this week Casino said it will replace Jean Duboc as head of G�ant Casino in a bid to create a single management team to "broaden" relations between its hypermarket and supermarket divisions.

However, a rare interview with Auchan, an arch-rival of Casino and Carrefour, suggests that not everyone is having difficulties with hypermarkets.

Auchan, owned by the publicity-shy Mulliez family, has insisted that its hypermarket business is in good shape.

"Unlike some of our rivals, we continue to believe strongly in hypermarkets, even very big ones," division head Arnaud Mulliez told Reuters.

Indeed, Mulliez said that Auchan's hypermarket business had seen a 3% year-on-year rise in sales during October. And prospects for the Christmas season are bright, he insisted.

Although it is difficult to gauge Auchan's performance against its rivals in France, as the country's second-largest retailer does not publish its financials, if indeed its hypermarket business is going great guns, then this raises some serious questions about what Carrefour and Casino are doing wrong.

In order to regain momentum in their hypermarket businesses, both retailers will need to experiment with store layouts, loyalty schemes, categories and product ranges while also investing in price, promotion and advertising.

And if Mulliez's interview is anything to go by, perhaps they should also take a long, hard look at Auchan's recipe for success.

Katy Humphries, deputy editor

Notes from the EU - a new customs code?

Fri, 20 Nov 2009 15:16:00 GMT

The latest proposed reforms to create a harmonised and modernised EU customs code could increase duties on branded food imported from outside the EU.

They could boost the customs valuation of these goods, inflating ad valorem tariffs; one change would ban the use of the 'first sale for export' for valuations, where importers declare the price a foreign exporter paid to a local supplier before shipping the goods to Europe.

This could be less than the price paid by the eventual European customer, with a correspondingly lower duty.

Another change would force exporters to include royalties and licence fees covering permissions to exploit intellectual property rights in their customs valuations. These are currently excluded when exporters source from suppliers not directly demanding their payment - essentially a third party.

Under the new system, royalties and licence fees would be included in valuation of any goods attracting some kind of trademark, patent or copyright.

Any changes would - naturally - need to be discussed at length by EU officials but the impact of any reforms is worth bearing in mind.

Keith Nuthall

Frankfurt FIE bids farewell to visitors

Thu, 19 Nov 2009 16:00:00 GMT

"As we are in the B2B environment, this is the most important show of the year for us."

The words of a top executive from chocolate giant Barry Callebaut as he talked to just-food on the final day of the Food Ingredients Europe exhibition in Frankfurt.

Expectations of the event, held every two years, were perhaps a little low this year, coming as it did at the end of the most tumultuous 12 months the business environment has seen since the 1930s.

However, the exhibition halls were packed with food manufacturers looking for suppliers, ingredients and technology that would help them gain a march on their competitors.

The decision to hold this year's show in Frankfurt - a location at the heart of Europe - undoubtedly helped, with some exhibitors comparing the accessibility of the event favourably with the last edition, which was held in London in 2007.

And, despite concerns over EU health claims regulations and uncertainty over how long the downturn will last, there was an upbeat feel to the event and a feeling that the food industry, though undoubtedly challenged this year, remains resolute in its pursuit of
development.

And, as a weary just-food boards its flight to Heathrow, the aching in its feet is a sure sign of a productive few days in Germany's business centre.

All the ingredients for a hectic Wednesday

Wed, 18 Nov 2009 16:03:00 GMT

And I thought it was busy here in Frankfurt.

Earlier this afternoon, in a brief break between meetings, I nipped into the press room for a quick look at our news pages. And it seemed things have been just as hectic back in the UK.

Confirmation of Ferrero and Hershey's interest in Cadbury and the surprise announcement that Morrisons boss Marc Bolland is set to take the top job at upmarket rival Marks and Spencer grabbed the headlines.

Both stories throw up numerous questions. What will Cadbury's reaction be to the prospect of a second bid for the business? How will Kraft Foods, which has an offer on the table, respond?

And what now for Morrisons, the star of the UK high street in the last 12 months? Its shares tumbled by more than 5% today after the news that Bolland - who in September declared his "love" for the company - is to move to M&S. Shares in M&S, meanwhile, jumped by almost 6%, a sign, perhaps, that the market hopes Bolland will improve the company's performance in a similar fashion to his work at Morrisons.

Meanwhile, back here in Frankfurt for day two of this year's Food Ingredients Europe show and the crowds have grown from yesterday with the main hall housing the likes of Barry Callebaut, Cargill, DSM and Glanbia, packed out. Will the likes of Arla Foods and Danisco rue their decision not to exhibit at the event this year?

The show has been a pleasant surprise. Some of the events attended by just-food this year have had a downbeat air but this exhibition has felt pretty buoyant.

The number of visitors at the show suggests that, while not everyone is optimistic about the business and economic climate, they are determined to remain active in looking for the latest products that could help their business save money - or gain vital market share.

Cost has ranked alongside health as two of the most-mentioned themes among food ingredient suppliers. In the last year, their manufacturing customers have placed greater emphasis on cost in a bid to protect their own margins. And all the while, health remains the key trend determining investment in NPD, with ingredient suppliers facing demands to develop products to improve memory and manage weight - to name just two key trends.

However, for all the talk of recession and recovery, the industry's ingredients suppliers remain concerned about the impact that EU regulations on the health claims brand-owners can make will have on their businesses.

Speaking to exhibitors, I get the impression that, while ingredients suppliers recognise the benefits of having robust, science-backed regulations in place, they still have concerns that the guidelines will be too strict and stifle innovation.

And, as Rabobank argued on our pages yesterday, cause a hike in costs, too.

UK...an attractive place to set up shop?

Tue, 17 Nov 2009 11:47:00 GMT

Sitting on the runway at Heathrow's Terminal 1 this morning - with bright blue skies and milky white clouds overhead - reminded just-food of the pleasant surprise that was Arla Foods' announcement yesterday (16 November) - the company's plans to build a super-dairy on the outskirts of London.

In the UK, we've become used to FMCG companies either taking their investment plans elsewhere - or deciding to move production overseas (Cadbury and Diageo being two FTSE 100 firms to decide to look outside the UK in recent years - although the latter's whisky workers are revolting).

We've become used to being told that, for reasons of cost or skills, you can't make stuff in the UK.

Arla's decision proves the UK can be an attractive place to set up shop - and, while the weak pound would have helped, dairy remains one of the sectors in which the country's infrastructure is competitive.

Nevertheless, the fact that it was Denmark's Arla - and not a UK co-op - that announced the multi-million pound investment does indicate that, while the UK can still attract some FDI, its own firms can sometimes lack the scale to match their foreign counterparts.

UK co-ops First Milk and Milk Link aborted a planned merger in February 2008, a transaction that would have brought the necessary scale to deal with the country's multiples - and to compete with the likes of Arla.

Last year's merger between Friesland Foods and Campina only underlined the need for a UK-grown dairy giant and, while just-food has heard industry watchers maintain consolidation is vital for UK dairy processors, there, as yet, appears few signs of movement.

Until then, UK dairy firms will remain in the shadow of their Continental counterparts.

It was dark clouds and drizzle that greeted just-food on arrival in Frankfurt, where we've travelled to visit this year's Food Ingredients Europe exhibition.

How have ingredients producers fared during the downturn? How have the demands of their customers changed? And how committed do suppliers remain to NPD?

These are the kind of questions we hope to answer this week. Keep your eyes peeled on the site for more.

Commodity cost concerns

Mon, 16 Nov 2009 15:08:00 GMT

Pressure from commodity costs have eased since the spikes seen in 2008 but a cursory look at the quarterly numbers issued in the last fortnight shows raw material prices remain a concern for food manufacturers of all shapes and sizes.

Companies may have been cheered by the tumbling cost of dairy commodities since last year's peak but food firms still face challenges across other raw materials. And UK firms bringing in ingredients from Europe have seen the appreciation of the euro drive up their raw material bill.

Moreover, on Friday (13 November), an analyst report crossed our desks that highlighted the problems the world's chocolate manufacturers will face in 2010. The report said confectioners will continue to have to walk a "tightrope" between high cocoa and sugar prices and a weak consumer environment, in which it will be difficult for manufacturers to pass along the higher costs.

With that in mind, food manufacturers and retailers will flock to this week's Food Ingredients Europe exhibition in Frankfurt to discover more about how their suppliers are faring in such a volatile economic environment. Food ingredients manufacturers from around the world, including the likes of ADM, Barry Callebaut, Cargill and Tate & Lyle will be present and they, among others, will seek to show just how they can add value to their customers' businesses.

But cost will not be the sole burning issue. Exhibitors will look to showcase a plethora of new products that they claim will generate revenue for brand-owners; ahead of the show, Tate & Lyle has issued research that it claims shows consumers are still looking for healthy products - and crucially will pay more - despite the downturn.
just-food will be one of the thousands of attendees at the exhibition; keep your eyes peeled on our news, blog and Twitter pages for the latest from the event.

The latest big news to reach us this morning is the announcement from dairy giant Arla Foods that it is looking to build the world's largest fresh milk dairy on the outskirts of London.

The planned investment is something of a surprise; Arla has restructured its operations throughout Europe this year, including in the UK, and scores of jobs have been affected.

The project is also a surprise boost for UK manufacturing; in recent years, dozens of foreign FMCG firms have tended to scale down or close their UK operations and take production to cheaper climes. Does the weakness of the pound mean that the UK is suddenly a more attractive place for investment?

M&S marketeers praised - by Waitrose

Fri, 13 Nov 2009 16:55:00 GMT

UK blog number two -

We don't often read too much into the weekly sales figures at Waitrose, the upmarket UK grocer.

It really isn't worth looking at seven days' worth of sales if one wants to garner much insight into the performance of a business.

However, today (13 November), Waitrose's weekly press release contained some insight into their ongoing ding-dong with fellow "posh" food retailer Marks and Spencer.

Waitrose reported its "highest sales growth" for a "standard" trading week since 2006. Sales jumped by more than 17%, driven, it said, by its own-label Essentials range.

The Essentials line has been credited with breathing fresh life into Waitrose, which suffered in the early months of the recession.

"The range has been hugely successful since its launch earlier this year but last week's performance was particularly sparkling," Waitrose said.

It then mischievously added: "Maybe we should be thanking the M&S marketing department for highlighting both the quality and value of our essential Waitrose range in its high-profile advertising campaign."

Last week, M&S launched a campaign that targeted the prices of Waitrose's Essentials line and sought to promote its own Wise Buys range.

M&S executive chairman Sir Stuart Rose, never shy to give his tuppence worth on Waitrose, will be wondering whether that was indeed a wise move.

Is Cadbury's defence looking Flakey?

Fri, 13 Nov 2009 17:00:00 GMT

UK blog number three:

I had a number of thoughts for the blog pages today - and one of which (don't yawn at the back) was on the ongoing takeover saga between Kraft and Cadbury.

Here in the UK, there is much nervousness about those allegedly big bad Yanks coming over and stealing - as some would have you believe - one of the country's business jewels.

What most of the nervy seem to miss is that there is already a significant (and apparently growing) US interest on the Cadbury share register.

Since Cadbury rejected Kraft's hostile approach on Monday, US hedge funds have snapped up shares in the Dairy Milk maker. According to the FT, up to 14% of the business is now owned by the hedge funds - or 'arbs' as they are otherwise known.

Hedge funds are renowned for their short-termism and, as the FT puts it, their presence as Cadbury shareholders could make it harder for the UK firm to "control its destiny". A higher bid from Kraft - even if not at the levels forecast by some analysts - could see the hedge funds sell. And sell fast.

Earlier this afternoon, I saw a blog on the website of UK regional newspaper the Birmingham Post. It also pointed out the arrival of the hedge funds could hit Cadbury's bid to remain an independent company.

However, one interesting strand the blog picked up upon was the fact that UK (now publicly-owned) bank RBS is providing Kraft with financial support - which is sure to add to the ire of both Cadbury's supporters and those exasperated at the bank bail-outs.

Here in the UK, there has been a growing perception that, even though the banks are owned by the state, the public can do little to influence their strategy, especially when it comes to freeing up lending to small business and individuals.

And the Birmingham Post blogger insists the association between RBS and Kraft provides the Cadbury saga with "one final twist".

"The thought of us as taxpayers bailing out a hopelessly run bank so that it can then support a US multinationals' attack on a well run British based firm would have beggared belief 18 months ago. Not now, given the weird and wonderful world we live in."

Don't milk Dairy Crest share fall

Fri, 13 Nov 2009 16:49:00 GMT

Prepare for three quick-fire UK-focused blogs:

First, Dairy Crest, the UK's largest dairy group and the company behind Cathedral City cheese and Country Life butter (the spread pushed by Sex Pistols frontman Johnny Rotten).

The company's shares curdled yesterday (12 November) despite a jump in half-year profits. The stock took a hit as the company announced it would slash its dividend - a decision it had already flagged to the market back in May.

So, it could be a little soon for the market to think the milk has turned sour at Dairy Crest. The company's cheese and spreads business is holding up well and, despite some weakness in dairy commodities and milk delivery, not all analysts are anxious about the company's performance to date.

"Overall, the group has produced a resilient result, with some modest half-on-half progress, despite the tough backdrop. We expect to see the same at the full year," insists Investec analyst Nicola Mallard.

Asda stands strong in lion's den

Fri, 13 Nov 2009 10:37:00 GMT

For the record, Asda's stood up well at yesterday's (12 November) Soil Association conference in London.

Corporate affairs director Paul Kelly admitted he felt like "Daniel in the lion's den" coming to events on sustainability.

But following a morning in which - on some occasions - big business was held up as the barrier preventing substantive change to the food industry, Kelly was keen to demonstrate how the Wal-Mart unit (and UK supermarkets in general) had sought to take a lead on the issues of climate change and sustainability.

It has been a mixed week for Asda. Yesterday afternoon saw the publication of some robust trading results for the third quarter of the year but, earlier in the week, a consumer lobbying group accused the company of being the "least green" of the UK's major multiples.

In fairness to Asda, the Consumer Focus report had its weaknesses (let's just say a study looking at just nine stores - one each for each of the nine largest food retailers in the UK - in one city is not the most robust investigation) and the retailer has been just as vocal on green issues as its local rivals.

Some could say that Asda is making more strides than others in putting its suppliers to the test on their environmental standards. Its parent Wal-Mart has been very vocal in putting pressure on manufacturers to sharpen up their act and Asda is looking to roll out a version of the US giant's sustainability index in the first quarter of 2010.

And Kelly argued yesterday that, while the media spotlight - and consequent public concern - is on the power of UK supermarkets and the allegations over the poor treatment of suppliers, retailers had made progress on making their businesses more environmentally friendly - and getting consumers to think green.

In contrast, Kelly claimed, the record of some suppliers on the environment was "woeful".

And Peter Melchett, policy director at the Soil Association, insisted more pressure needed to be brought on the mainstream agriculture sector, which, he argued, is subject to far less pressure to cut greenhouse gas emissions than other sectors of industry.

Soil Association looks back for the future

Thu, 12 Nov 2009 13:56:00 GMT

In London today (12 November), UK organic body The Soil Association has brought together organic food makers, academics, NGOs, government representatives and retailers to discuss what it is calling "the food crunch".

Or, in other words, to discuss how the world can continue to feed itself in the face of a number of pressing issues, including a warming planet and a growing population.

The message from this morning's session was stark - "business as usual" cannot continue.

However, as is to be expected when presented with perhaps the most wide-ranging set of problems and challenges ever faced by humanity, how to move away from "business as usual" is a matter of debate.

For some, we need to think 'local' in food production. Others believe tackling food waste is vital. There are those who believe big business is blocking the change that is needed. Others argue that political leaders across the world have yet to grasp the nettle - and that the imminent climate change conference in Copenhagen will yield few substantive results.

Patrick Holden, chief executive of The Soil Association, raised eyebrows; first, by agreeing with much of what his predecessor at the lectern Defra chief scientist Professor Bob Watson had to say on the issue (opposition to GM notwithstanding) - but also with his call for greater planning in how the food system works at local, regional and national levels.

Notably, Holden said all stakeholders needed to work together and likened the action needed to a "war effort".

Sections of industry spent the morning under attack from the World Development Movement, which claimed lobbying from big business had defined trade law and global food policy in its favour.

This afternoon, Asda puts its head above the parapet to suggest how industry can play a proactive role in enacting the change that is needed.

Will Cupid's arrow strike for Kraft and Cadbury?

Wed, 11 Nov 2009 15:04:00 GMT

There certainly is no love lost between Kraft Foods and Cadbury - of that there is little secret - and an end to the takeover saga may not come until a week before Valentine's Day.

After Cadbury's immediate rejection of Kraft's hostile takeover approach on Monday (9 November), industry watchers flicked through their calendars to pencil in the next likely sign-posts in the US food giant's pursuit of the Dairy Milk maker.

From Monday, Kraft has 28 days to publish its offer documents to Cadbury shareholders - and the UK firm has 14 days after that to publish a formal, written response to the bid. That would take us until 21 December.

The Christmas decorations would have come down before the next deadline for Cadbury. According to analysts at Jefferies International, Cadbury has until 15 January to publish any "material" new information - be it M&A (or more likely) a trading update.

A week later will come a critical day for Kraft: 22 January is the last date by which the Toblerone maker can revise its offer.

Kraft chairman and CEO Irene Rosenfeld then has until 5 February to get at a majority of Cadbury shareholders to accept her offer.

"We now believe this transaction will go to the wire," Jefferies equity analyst Simon Marshall-Lockyer writes.

"We suspect that Kraft made this low-end offer as a minimum official bid so as to remain in the running while buying time to achieve possible asset sales," Marshall-Lockyer adds - citing speculation that the group could sell its coffee units to Sara Lee.

Speculation of all kind continues to abound. As we reported yesterday, analysts agree that Kraft's offer is too low - but they are split on how far it should go in raising its offer.

There is also disagreement over whether a rival bid for Cadbury will emerge.

What is likely is that any end to this saga will come long after we have gobbled down our Christmas candy - and just before we send our love ones a box of Valentine's chocs.

McDonald's scores again with football deals - but who's cheering?

Tue, 10 Nov 2009 12:38:00 GMT

First, a disclaimer. I am well aware of the time and money spent on CSR projects by food manufacturers and retailers not just in the UK but also worldwide.

And it is just that those who draw up the most innovative and impactful programmes are recognised for their endeavours (see the UK Food and Drink Federation's annual Community Partnership Awards).

However, the cynic in me (humour me, I'm a journalist) cannot help but raise an eyebrow when companies like McDonald's get involved in grassroots and kids sport.

Yesterday, the purveyor of Big Macs and milkshakes (yes, they sell salads, too) signed a deal with the Football Association to support football in England.

"I am delighted we have secured McDonald's support for another four years and am confident that the investment and focus on driving up standards in English grassroots football will have a positive impact on young players, the coaches, the parents and ultimately the national game as a whole," the FA's chief executive Ian Watmore remarked.

Over in Thailand, McDonald's is reportedly looking for a similar "positive impact" within the nation's football community.

According to The Guardian newspaper, Thailand's top footballers will receive free burgers as part of a three-year sponsorship deal. The mind boggles.

As for the England deal, there were those who grumbled at Wembley Stadium's new arch replacing the famous old Twin Towers and becoming a central emblem of the game in the country. But what of the golden arches?

All eyes on Illinois

Mon, 09 Nov 2009 10:52:00 GMT

Welcome to the eleventh hour. At some point before 5pm today (9 November) US food giant Kraft Foods must either formalise its takeover bid for UK confectioner Cadbury or walk away from the proposal for at least six months.

News of the deal - and the increasingly antagonistic battle of words between the two food powerhouses - has dominated our headlines for some time. But last week, the tension was palpable as Kraft delivered what many commentators viewed as a pivotal trading update.

And while the world's second-largest food group hoped a better-than-expected jump in comparable profits and better margins would impress, the focus remained firmly on Kraft's lacklustre top-line, which was dented by lower pricing and poor volumes.

Kraft's poor sales performance will have done little to prove the value of Kraft's shares, which will partially fund the deal, or dispel Cadbury chairman Roger Carr's criticism of Kraft's "low growth model".

Although there has been mounting speculation that Kraft will back away from the deal - possibly returning in a year with a fresh proposal - reports in the UK's Sunday papers suggested that the Oreo-to-Dairylea maker would plough ahead regardless, turning its GBP10.2bn (US$16.7bn) plan into a hostile bid.

With the possibility that Kraft could increase the cash component of its offer, the question would then become whether Cadbury investors shared managements view that such a price "materially undervalues" the company and its prospects. Either way, the market is waiting with baited breath for an announcement out of Illinois.

In other news last week, we learnt that Dutch retail giant Ahold is positioning itself for expansion - both organic and acquisitive - by reorganising its operations in the US and Europe.

The company told just-food that the move would see it streamline and simplify its business, particularly in the US where it will combine the logistical operations of its four banners.

The move prompted speculation on the Continent that the Netherlands-based retail giant could be preparing a foray into Belgium and Germany.

While the company declined to confirm the rumours, a spokesperson told us: "We're keen to expand in new and existing markets and we've always said that we would look first at the adjacent market areas to the areas that we are present already."

We could well expect some exciting announcements from Amsterdam in the months to come.

Private label star waning?

Thu, 05 Nov 2009 16:55:00 GMT

We heard from two players on the US stage today (5 November) - one retailer and one manufacturer - both of whom bore the same message.

According to the management of meat-to-bakery group Sara Lee and supermarket operator Delhaize, the tide could be turning against private label in the US.

Delhaize admitted that increased promotional activity from national brands had slowed the growth of its private label sales in the country.

"When national brands fight for the growth of their top line with some very interesting promotions consumers are interested. We have seen a lesser increase in private label than in 2008 and early 2009," Delhaize CEO Pierre-Olivier Beckers said

In addition, the Belgium-based group said that consumers had been trading down within its three-tier private label offering.

Meanwhile, again pointing to increased promotional activity from branded producers, Sara Lee also flagged up the slowed growth of private label.

However, Sara Lee admitted that it has failed to benefit from this trend because it has been slower to invest in lowering prices than a number of its branded competitors.

This is something the group will look to address in the coming months.

Nevertheless, as Barnes cautioned: "The hardest thing to avoid is doing crazy things in the market place... We will not do crazy things to drive that volume up."

Click here to read more Sara Lee's plans to boost volumes, or here to check out Delhaize's take on trends in private label sales.

M&S premieres GBP10m ad campaign

Wed, 04 Nov 2009 17:33:00 GMT

UK retailer Marks and Spencer will fit mince pies, cashmere jumpers, "big juicy birds" and handbags into a top-dollar Christmas television advertisements over the coming months.

M&S today (4 November) gave journalists a sneak preview of a celebrity-led festive marketing campaign, called "Chistmas wouldn't be Christmas without...".

The nine adverts feature celebrities including Stephen Fry, Joanna Lumley, Jennifer Saunders, Myleene Klass and Wallace & Gromit.

The campaign, due for screening from 11 November, cost around GBP10m to create, M&S' executive director, marketing, Chris Sharp, revealed at a media briefing in London today.

The marketing spend is roughly equal to last year, when M&S showcased pop group Take That in its Christmas ads.

M&S will be hoping the investment, together with a cold winter snap, will bolster sales for the rest of 2009, with a January 2010 VAT increase lurking in the background.

The company also announced the launch of branded grocery and household products today, coinciding with its interim earnings statement.

M&S boss Sir Stuart Rose said the roll out will not materially change the business of Marks and Spencer, but simply add extra convenience.

A successful trial at 54 Marks and Spencer stores suggests the changes will not be received with the 'love it or hate it' feeling of one of the brands it will stock - Marmite.

However, the retailer will begin by merely dipping its toe into the waters of branded food, opting for "400 rather than 10,000 brands".

"Let's see how it goes, if it doesn't we'd be the first to stop it. If it does work and it works better than our expectations, then we'll have a think about what the implications are. But it's not earth-shattering."

Joe Ayling, just-style

Processed food sours the mood

Mon, 02 Nov 2009 17:41:00 GMT

We all know that junk food is bad for you. But probably only a few of us realise the affect that scoffing that burger, biscuit or fatty fry-up has could stretch well beyond our waistlines.

According to new research published today (2 November) in the British Journal of Psychiatry, people who have a poor diet that is high in fatty processed foods are "significantly" more likely to suffer from future depression.

Researchers from University College London, who compiled data on 3,500 middle-aged civil servants, found people whose diet is high in processed foods have a 58% greater risk of depression than those who opt for the carrot over the cake. Meanwhile, people who eat the most whole foods are 26% less likely to suffer from depression.

Responding to the report, Dr Andrew McCulloch, chief executive of the Mental Health Foundation, observed: "The UK population is consuming less nutritious, fresh produce and more saturated fats and sugars. Significant changes in the way food is produced and manufactured have reduced the amounts of essential fats, vitamins and minerals we consume. New substances, such as pesticides, additives and trans-fats have also been introduced to the diet. This imbalance combined with a lack of vitamins and minerals is associated with depression as well as concentration and memory problems."

And, with mental health campaigners joining the ranks pressuring food manufacturers to improve the health profile of their products, this latest piece of research certainly gives the sector some more food for thought.

EFFP sixth annual conference

Mon, 02 Nov 2009 15:24:00 GMT

Tomorrow (3 November), the English Farming and Food Partnership will hold its sixth annual conference in London headed 'Routes out of Recession'.

Speakers include Marc Bolland, CEO of Morrisons, Peter Kendall, president of the NFU, Jonathan Warburton, chairman of Warburtons and Bill Bartlett, corporate affairs director of McCain Foods.

Topics expected to be covered include the future of the domestic supply of raw materials, which businesses have been successful in tackling the recession and whether there will be new investment opportunities in farming and food.

Of course just-food will be in attendance bringing you news from the speakers so check back tomorrow for more insight.

Rieber & S�n shines spotlight on Russian strains

Fri, 30 Oct 2009 17:49:00 GMT

Scandinavia's food companies have a rather pleasing habit of making their CEOs available at the drop of a hat and, this week, we got to speak to the boss of Norwegian food group Rieber & S�n.

After reporting a mixed set of nine-month and third-quarter numbers on Thursday (29 October), Rieber & S�n CEO Patrik Andersson walked us through the group's performance and recent moves to reshape the business.

You can read more of our interview with Andersson here but it was interesting to note his comments on Russia, a market in which Rieber & S�n has a significant presence.

We've discussed Russia's travails on these pages before but Andersson offered some numbers that illustrated just how the downturn over there has hit his business.

"If my calculations are right, I think we are down on volume 25-30% in the quarter," Andersson admitted.

That's a steep drop. But, given the turbulent economic conditions in Russia, Rieber & S�n is unlikely to be alone.

Palm oil in the spotlight

Wed, 28 Oct 2009 15:34:00 GMT

Today's (28 October) publication of the WWF "palm oil scorecard" has revealed that, while the likes of Sainsbury's, M&S, Unilever and Cadbury are making progress on sustainable sourcing, there are dozens of other companies where a lot more work is needed.

Or, as the green campaigners put it this morning, where some need to "up their game".

The structure of the palm oil supply chain and cost of sustainable sourcing are frequently held up as two obstacles by food manufacturers and retailers that have yet to makes changes to the way they buy palm oil.

However, as Adam Harrison, the WWF's senior policy officer for food and agriculture told just-food this afternoon, cost should not be an insurmountable barrier, while there are ways to resolve supply chain issues - and he pointed to the GreenPalm certificates recently embraced by M&S in the UK.

just-food will be running a full-length interview with Harrison tomorrow. Palm oil is high on the sustainability agenda and, with the annual Roundtable Meeting on Sustainable Palm Oil being held in Malaysia next week, it is an issue that needs to be faced head on by all in the sector.