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Emerging markets

Comment: Ferrero's dilemma highlights the problem of red tape in India

3 December 2014 | Katy Askew

Ferrero Group is purportedly re-thinking its investment plan in India due to difficulties with regulators in the country. The Indian market - with its massive population and still growing middle class - is a huge opportunity for FMCG manufacturers. But, as the Ferrero case shows, Indian regulations continue to discourage investment in local production - to the detriment of the country's economic outlook.... read more

Comment: Russia's Danone, PepsiCo criticism points to more challenges

1 December 2014 | Katy Askew

For US and European companies exporting products to Russia, the operating environment has been challenging to say the least. Recent comments from Moscow would suggest that the going could get tougher for multinationals who operate local subsidiaries in the country as well, Katy Askew suggests.... read more

Editor's viewpoint: United Biscuits sees Yildiz head West again

3 November 2014 | Dean Best

Yildiz Holding today (3 November) announced it had won the race to buy UK-based biscuit maker United Biscuits. In doing so, the privately-owned Turkish food group has moved once more to buy a major Western food brand.... read more

Comment: FrieslandCampina in China - the right place at the right time

10 October 2014 | Hannah Abdulla

FrieslandCampina made two announcements last week that it was re-jigging its European operations, demonstrating it was well on its way to right-sizing its business. This week it announced it had struck a deal to grow its presence in China's infant formula market. Given the country is in the midst of lifting its one-child policy, this latest move from the Dutch dairy giant could prove fundamental to its growth, fast-tracking it to hitting its route2020 targets. Hannah Abdulla explores. ... read more

Comment: Competition to rise as dairies invest in whey production

1 September 2014 | Katy Askew

Arla Foods is wise to invest in its whey protein production capacity. However, the company is far from alone in pursuing this strategy, with various dairy firms stepping up production to meet growing global demand. As activity increases so too could competition, Katy Askew suggests.... read more

Editor's viewpoint: Land of the minnows

4 August 2014 | Dean Best

Size matters, right? Scale - and the economic benefits that come with it - provide a business with clout smaller competitors find hard to battle. However, could large food companies be losing some of the advantage gained from their size?... read more

Comment: Danone could be preparing strategic shake-up

24 July 2014 | Katy Askew

The spotlight will turn on Danone's strategy to grow its sales and profits tomorrow (25 July) when the group reports its second-quarter results. With what looks set to be a disappointing first half in store, questions could well be asked about whether Danone is on the path to long-term sustainable growth, Katy Askew suggests.... read more

Editor's viewpoint: Why whole sector should take heed of UK, China meat allegations

24 July 2014 | Dean Best

The meat supply chain is in the spotlight this week, with allegations in the UK and China of poor and potentially unsafe practices at firms supplying retail and foodservice giants including Tesco and McDonald's. But the entire industry needs to pay attention: consumer interest in what they eat is at its highest-ever level.... read more

Comment: ConAgra's TaiMei buy fails to address core problems

17 July 2014 | Katy Askew

ConAgra Foods believes its latest acquisition - Chinese potato group TaiMei - will help further unlock the growth potential in its Lamb Weston unit. However, the move fails to address the issues dogging ConAgra's private-label and branded businesses and will do little to boost results in the near-term, Katy Askew suggests.... read more

Comment: Trade restrictions hitting Russian outlook

9 July 2014 | Katy Askew

In a period of escalating international tensions, Russia is turning to the use of trade restrictions as a political weapon. This adds a layer of risk to food manufacturers exporting goods to the previously promising BRIC market and potentially has some profound consequences for the consumer outlook in the country, Katy Askew suggests.... read more

Editor's viewpoint: Dairy Crest's appeal may grow after deals

3 July 2014 | Dean Best

Strategically, Dairy Crest's deals with fellow UK dairy group Fayrefield Foods and New Zealand dairy giant Fonterra to serve the global infant formula market are astute moves. But the deals could also catch the eye of some of the world's larger dairy processors about Dairy Crest's new capabilities.... read more

Industry view: CPG futures online - beware the drones

2 June 2014 | John Lawrence, business development director, SGK Europe

With CPG sales migrating online, innovative delivery methods being developed by the likes of Amazon will have profound implications for food manufacturers, SGK Europe's John Lawrence suggests.... read more

Consuming issues: Why understanding food wastage is vital

28 May 2014 | Ben Cooper

The considerable attention given to the topic of food wastage over the past couple of years has ensured the issue has grown both in public awareness and also as a priority for companies and policymakers seeking to make the global food system more sustainable. ... read more

Comment: Multinationals face local challenge in BRICs

27 May 2014 | Katy Askew

Food companies in developed markets are increasingly looking to cash in on the potential offered by high-growth emerging markets. But as data published by just-food in partnership with Kantar Worldpanel suggests, multinationals are coming up against some stiff local competition.... read more

Comment: Pork DNA in halal Cadbury chocolate could undermine trust

27 May 2014 | Katy Askew

A string of headlines out of Malaysia this weekend would suggest that Mondelez International is in some hot water in the market.... read more

Editor's viewpoint: Why sale the best bet for Goodman Fielder

19 May 2014 | Dean Best

For the more patriotic sections of Australia's food industry, there is likely to be some dismay at the prospect of another local food company falling into overseas ownership. But the proposed sale of Goodman Fielder, one of the country's largest food manufacturers, looks to be the right move for its shareholders - and for the business as a whole.... read more

Editor's viewpoint: Food security and consumer demand

8 April 2014 | Dean Best

There is a growing consensus that a warming climate has an impact on food production - putting supply firmly at the debate over food security. But the demands of a growing global population are just as important to consider as industry, government and academia wrestle over how to solve the issue.... read more

Comment: Unilever raid shows South Africa eyeing food

4 April 2014 | Katy Askew

News the South African offices of Unilever and Sime Darby were raided by competition authorities this week comes as a further evidence that the country's competition watchdog has set its sights on the food sector, Katy Askew suggests.... read more

Editor's viewpoint: Milking emerging market demand

31 March 2014 | Dean Best

Arla Foods, The Irish Dairy Board and Fonterra have all in the last week announced investments - or hinted at expansion to come - with growing demand for dairy products in emerging markets in mind.... read more

Comment: Food majors eye Mexico as obesity debate looms large

27 January 2014 | Katy Askew

The link between a nation's economic health and the health of its population - "health is wealth" - was a key message coming out of a round table event at the World Economic Forum this weekend.... read more

Comment: E.Coli recall could sour Fonterra's reputation further

15 January 2014 | Katy Askew

Food recalls are part of the industry in which we operate. Even companies with best-in-class safety and quality standards can, from time to time, be forced to recall product. However, when New Zealand dairy giant Fonterra issued an E.Coli recall earlier this week, echoes of last year's botulism scare jumped to mind. With this fresh recall coming hot on the heels of such as massive blow, Katy Askew suggests Fonterra could find its reputation tarnished further still.... read more

Comment: Hershey makes serious move in China

2 January 2014 | Dean Best

The final full week before Christmas saw another notable international move from Hershey, with the US confectionery giant underlining the seriousness of its ambitions in China.... read more

Comment: Investment boosts reputations of Tesco and New Delhi

23 December 2013 | Dean Best

It is, for both sides, an investment that can help improve their reputations. Tesco's plan to run multi-brand retail outlets in India demonstrates to the market the UK retailer, for all its problems, still has plans for growth. India's government will be happy that, 15 months after it pushed through plans to allow overseas players to invest in multi-brand retailers, someone has finally taken the bait.... read more

Comment: All eyes on Saputo as Bega shows hand on WCB

14 November 2013 | Dean Best

Two of the bidders for Warrnambool Cheese and Butter Factory have this week made fresh offers for the Australian dairy. The focus now moves to the third suitor - Canadian dairy giant Saputo, which has long coveted an entry into the market and is eyeing the business as a way into Asia.... read more

Consuming issues: A taxing question

14 November 2013 | Ben Cooper

As it has done elsewhere, the food industry is opposing the imposition of a tax on sugary drinks and high-calorie foods in Mexico. The industry has been generally successful in forestalling the imposition of nutrient taxes and its reasons for opposition - such taxes are ineffective and regressive - carry some weight. But when industry is seen to have prevailed in debates purely by dint of massive lobbying power, issues of trust and credibility inevitably arise.... read more

Best bits: Adapt to - don't abandon - emerging markets

21 October 2013 | Dean Best

Emerging market economies are cooling but markets like Brazil and China can still offer opportunities for growth. Adapting to a steadier pace of growth will be the name of the game, as Wal-Mart and Nestle highlighted last week.... read more

Comment: Emerging markets remain key long-term play

1 October 2013 | Dean Best

There is no doubt trading conditions in the world's key emerging markets is tougher than in recent years and the short-term outlook for some economies remains muted. However, the longer-term potential of markets like the BRICs remains attractive.... read more

Best bits: Home, overseas factors drive Bega bid for WCB

23 September 2013 | Dean Best

Competition among processors for milk supply in Australia, price pressure from retailers and Bega Cheese's desire for greater scale to compete internationally are the key reasons for its move for local peer Warrnambool Cheese and Butter Factory.... read more

Analysis: China key as NZ looks to rebuild dairy reputation

11 September 2013 | Katy Askew

The New Zealand government has provided details of how it plans to work hand-in-hand with industry help rebuild the reputation of the country's dairy exporters in the wake of the recent high-profile Fonterra recall. While much can be done to rebuild trust, the scandal comes as competition to build a safe raw milk supply is heating up in one key market - China. Katy Askew reports.... read more

Best bits: FMCG must adapt to slower BRICs growth

2 September 2013 | Dean Best

"The Great Deceleration" warned a front cover of The Economist in July, as the magazine reflected on a cooling in the BRIC markets. FMCG companies are upbeat about the long-term prospects of these economies but will have to adapt as period of slower growth.... read more

Best bits: Another blow for NZ, the "Saudi Arabia of milk"

19 August 2013 | Dean Best

New Zealand, dubbed in some quarters as the Saudi Arabia of milk, has suffered another knock to its reputation, with another recall - this time over nitrate levels in ingredients headed for China. After the botulism scare surrounding Fonterra, this is another below for the country's dairy sector.... read more

Best bits: Tesco's face-saving plan for Chinese business

12 August 2013 | Dean Best

Nine years ago, Tesco first entered China and high hopes for its business there. After losses and falling sales, it is set to become a minority partner in a venture with China Resources Enterprise, evidence, Dean Best writes, of the UK retailer's failure in the market.... read more

Comment: Tesco, China Resources JV part of growing trend

9 August 2013 | Katy Askew

Confirmation that Tesco is in joint venture talks with China Resources Enterprise highlights a mounting trend in the FMCG sector. International companies eyeing growth in the rapidly expanding Chinese market are seeking out local joint venture partners. If Tesco's negotiations with CRE prove successful, a stronger business will emerge, Katy Askew suggests... read more

Best bits: Fonterra scare could help China's domestic formula sector

5 August 2013 | Dean Best

Safety concerns have again blighted the infant formula sector with Fonterra's recall of whey powder after fears over botulism. China has reacted, banning some imports from Fonterra and Dean Best writes the scare could prompt some consumers to question their belief foreign-made products are safer.... read more

Comment: Wheels within wheels: PepsiCo, Mondelez and Peltz

23 July 2013 | Katy Askew

"Round like a circle in a spiral, like a wheel within a wheel. Never ending or beginning, on an ever spinning wheel." It is not often you get to quote Dusty Springfield lyrics as a business journalist. But this song plays through my head each time I think about the Peltz-PepsiCo-Mondelez rumours that are causing so much excitement.... read more