This week, Unilever was the first of the food majors to reports its results for 2015 – and its comments about the year ahead caught the eye. Sugar remained firmly in the headlines with Food Standards Scotland warning a sugar tax could be considered as the nation continues to face rising obesity and the European Parliament voting against a move from Brussels to allow baby foods to contain sugar far above WHO recommendations. Elsewhere, on our M&A pages, Emmi took full control of German organic milk processor Glaserne Molkerei and US private-equity firm Highlander Partners acquired invested in Polish meat firm QFG. Click on the links for more.
“What we see in [2015’s] results, despite tough trading conditions, is the outcome of improvements and investments we have made in many aspects of our business, not least innovation. But in a fast changing, volatile environment we need to continue to drive increased agility through the business” – Paul Polman, CEO of Unilever, believes that while conditions for packaged food firms were tough last year, 2016 is set to prove even more challenging.
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“There can be few in any doubt now as to the gravity of the health time-bomb related to poor diet and obesity facing our nation… We know that we have been missing the Scottish dietary goals for the past 15 years, despite the range of changes already made, so the board’s view is that a raft of alternative, more radical, measures and interventions must be considered and introduced if we are to have the impact that is needed” – Ross Finnie, chair of Food Standards Scotland, comments on proposals to curb obesity, opening up the possibility of a sugar tax in the country.
“The introduction of such high levels of sugar to foods – especially so early – would have contributed to the rising levels of childhood obesity and may affect the developing taste preferences of children. For infants and young children in particular, added sugar levels should be kept to a minimum” – UK MEP Keith Taylor, on the vote against a proposal from the European Commission to allow baby foods to continue to contain up to three times more sugar than recommended by the World Health Organization.
“Natural, sustainably manufactured products are a major trend in the dairy business, which Emmi wants to take even better account of in the future. In Gläserne Molkerei we have a very strong niche company that offers lots of potential for the future” – Urs Riedener, CEO of Emmi, on the Swiss dairy’s decision to take full control of German organic milk processor Gläserne Molkerei.
“Singapore is now becoming a focal point for major global infant formula manufacturers and raw material suppliers as a location to strengthen their sales activities in south-east Asia and Pacific Rim countries, thus we selected Singapore for the base of our ingredient sales activity in the region” – Ko Shiino, general manager of the international department within Morinaga, on the firm’s decision to set up a Singapore-based subsidiary.
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By GlobalData“KitKat is much loved and the iconic shape of the four-finger bar, which has been used in the UK for more than 80 years, is well known by consumers. We believe that the shape deserves to be protected as a trade mark in the UK and are disappointed that the court did not agree on this occasion. We are taking the necessary steps to appeal this judgement” – a spokesperson for Nestle says the company will appeal a decision from the UK High Court after its bid to trademark its four-finger KitKat bar was rejected.
“Customers in Europe, Poland included, expect us to produce more. The recent investment from Highlander Partners will help QFG to significantly increase our production capacity and satisfy this demand. The convenience food market in Poland and the European Union has been growing at a single-digit pace. Our realistic medium-term goal is the double-digit increase of our company” – Jaroslaw Krzyzanowski, the founder and president of Polish meat group QFG, comments following the investment from US private-equity firm Highlander Partners.
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