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Subject:
FOOD BUSINESS NEWS
Period: July 2, 2011 to July 9, 2011
Geographies:
Worldwide
Categories:
Comment & Opinion or Companies, Organizations or Consumers or Controversies & Disputes or Deals, M&A, JVs, Licensing or Earnings Release or Finance, Economics, Tax or Innovation & New Ideas or Legal, Legislation, Regulation, Policy or Market News or Marketing & Advertising or Other or People & Personalities or Press Release or Products & Brands or Research, Studies, Advice or Supply Chain or Trends
Contents
 
Companies, Organizations  

Strong Demand For Anti-Aging Skin Care Products Bolsters Beauty And Personal Care Industry

Premium beauty product sales rebounded strongly in 2010, driving the recovery of the global beauty and personal care industry. Also fueling the recovery was “dynamic innovation activity” in skin care, the largest market category, Natural Products Insider reports. The category is expected to grow three percent a year to $100 billion in sales by 2015, one fourth of which will come from sales of anti-aging products. Thanks to the focus on innovation, technically advanced skin care formulations based on stem cell technology and aesthetic medicine are showing up in new cosmeceutical products. A major disappointment, however, has been the slow start of nutricosmetics products, which have not yet surmounted the skepticism of consumers.

"Opportunities for Cosmeceuticals", Natural Products Insider, July 04, 2011

“General Wellbeing” Foods/Beverages Are Booming In U.S.

Retail sales of  health and wellness foods and beverages in the U.S. totaled $153 billion in 2010, accounting for one fourth of global sales in the category, according to Euromonitor International. “General wellbeing” comprises the largest subcategory, accounting for 40 percent of U.S. health and wellness sales. Euromonitor says general wellbeing is popular because “it does not make any overt allusions to ‘disease’.” In fact, marketers of health and wellness products are advised to avoid mentioning disease because that “needlessly narrows down a potential mainstream audience to a select target group.” Weight management products remain the second largest sales category, but growth is stagnant; energy boosting products and products to improve digestion are being well received; but beauty-from-within foods and beverages have not yet caught on in the U.S.

"Health and Wellness by Prime Positioning: The US", News release, Euromonitor International, June 29, 2011

McCormick Expands European Presence With Acquisition Of Polish Seasonings Maker

Spice and seasonings manufacturer McCormick & Company said it will acquire all of the shares of Kamis S.A., a privately held Polish flavorings company whose market comprises Poland, Russia and other parts of Central and Eastern Europe. According to McCormick, Kamis is a brand leader in spices, seasonings, mustards and other flavor products in Poland with annual sales of zł 300 million (zloty, or $105 million). The purchase price is about zł 830 million (zloty, or  $291 million). McCormick said the acquisition, which will close in September, extends its presence in Western Europe into Poland and other markets in Central and Eastern Europe. The company also recently announced a joint venture in Turkey.

"McCormick Enters Agreement to Acquire Kamis, a Brand Leader of Spices, Seasonings and Mustards in Poland", Press release, McCormick, June 28, 2011

Sen. Durbin To Introduce Bill To Tighten FDA Regulation Of Dietary Supplements

Sen. Dick Durbin (D-Ill.) announced he will introduce a bill requiring the FDA to regulate the number of beverages and foods being marketed as dietary supplements, often taregting young adults. The Dietary Supplement Labeling Act would improve the information available to consumers and “curb the prevalence of drinks and foods that are masquerading as dietary supplements” that may contain potentially dangerous ingredients not approved by the FDA. Durbin said makers of dietary supplements that contain additives currently do not have to prove their products are safe before putting them on the market. A key provision of the bill is a requirement that the FDA define what a conventional food is so foods marketed as health aids could be better regulated.

"Durbin to Introduce Legislation Designed to Protect Consumers of Dietary Supplements", Press release, Sen. Dick Durbin, June 27, 2011

Controversies & Disputes  

CPG Companies Withdrawing Their Advertising Money From News of the World Following Phone-Hacking Revelations

UK consumer packaged goods companies including Procter & Gamble, Tesco, Asda, and Coca-Cola GB, as well as telecom companies Orange and Vodafone plan to withdraw their advertising from the News of the World following revelations of phone hacking by the tabloid. Other companies, such as mobile service providers 3, T-Mobile, and O2, are reviewing their advertising deals with the tabloid as public outcry grows over the phone-hacking revelations. Advertisers' withdrawals are having a negative impact on News of the World's annual advertising revenue, estimated at £38 million.

"Procter & Gamble, Asda and Tesco consider pulling News of the World ads", Guardian, July 06, 2011

Nutritionists Doubt Antula Healthcare's Health Claims For Its Chewing Gum

Some nutritionists and consumers are debating Antula Healthcare's claim that its Vigo Beauty chewing gum, recently launched in Sweden, can make consumers more beautiful. Antula Healthcare has used the European Food Safety Authority's approval of the vitamin-reinforced chewing gum's beautifying benefit claims, such as strengthening hair and nails and making the skin more elastic, in marketing the product. Although nutritionists acknowledge that the vitamins and nutrients in the chewing gum can contribute to healthier nails, hair and skin, other nutrients – such as iron and zinc - are also needed, and can come from a healthy and balanced diet.

"Chew yourself beautiful: The wonder gum that claims to make you more beautiful", Daily Mail, UK, June 30, 2011

Harvard Got It Wrong; Nutritious Potato Can Help Fight Obesity

A Harvard study that claims eating potatoes on a regular basis contributes to weight increase and was published by the New England Journal of Medicine failed to adequately study potato's dietary importance, according to an opinion from the Governor of Idaho. Results of the study covered by the Los Angeles Times and other media organization ignored potato's historical and practical contributions to human nutrition and survival. The United Nations declared 2008 as the International Year of the Potato in recognition of its nutritional value and environmentally-friendly cultivation. The potato contains 110 calories per serving, offers 620 grams of potassium (more than a banana), and provides up to 45% of the recommended daily value of vitamin C. Other studies over the years have highlighted the potato's nutritional characteristics, as well as its role in weight reduction.

"STUDY ASIDE, THE POTATO IS GETTING A BAD RAP", C.L. "BUTCH" OTTER GOVERNOR, June 28, 2011

Market News  

Consumption Maintains Growth Mode In India As Multinationals Shift Focus To Emerging Markets

Consumption will grow 14% in India over the next three years, according to Ambit Capital Research's "Indian Consumer: a robust operator in an uncertain world" report. Multinational companies recognize India's growth potential, as they shift their business focus from mature markets in Europe and the United States to Asia-Pacific and Latin America. For example, McDonald's India is expected to increase its contribution to McDonald's Corp.'s global business from 0.37% to 0.5%, while Unilever expects emerging markets to account for 70%-75% of its global revenue by 2020, up from the current 56%. India is playing an increasing role in multinationals' manufacturing operations, as well as in innovation.

"Indian consumption to grow 14% in 3 years: Study", Economic Times, July 05, 2011

Canada’s Organic Products Rules Are Now Mandatory

The voluntary phase-in period of Canada’s Organic Products Regulations, issued in 2009, ended on June 30. As of July 1, compliance with the rules is mandatory and will be enforced by the Canadian Food Inspection Agency (CFIA). Products labeled as “organic” are subject to the rules and must be certified by a CFIA-accredited certification body. All organic product labels must carry the name of the certifier. According to the CFIA, the rules “have leveled the playing field and given both domestic and foreign consumers confidence in the organic label” in Canada. Both the U.S. and the European Union recognize Canada’s organic standards.

"Canada’s Organic Rules in Full Force", Organic Trade Association, June 30, 2011

Press Release  

Mars Chocolate Plans To Open New Factory In Kansas

Mars Chocolate North America has announced plans to construct a new manufacturing plant in Topeka, Kansas, its first to be built in the United States in 35 years. The move highlights the company's policy of building factories in markets where it sells its confectionery products. Mars Chocolate plans to invest more than $250 million in the first phase of the project, scheduled for completion in 2013, and which include hiring about 200 workers to manufacture M&M and SNICKERS brands of candies. It will be built to meet achieve LEED Gold Certified standard. 

"Mars Announces Plans to Build State-of-the-Art Manufacturing Facility in Topeka, KS North America", Mars, June 29, 2011

60/40+ Program Enhances Health And Nutrition Benefits Of Nestlé Products

Nestlé has sold CHF 36.4 billion worth of products covered by its 60/40+ product development and marketing program over the past three years. 60/40+ products are defined as those preferred by 60% or more over its main competing products, using a large sample of consumers, and which also offer additional nutrition benefits. The program underpins Nestlé’s innovation approach and has helped the company reduce harmful or unhealthy ingredients, such as trans fats and saturated fats, sodium and sugar, in its products worldwide, either through launching new products or by renovating existing ones.

"Nestlé assesses products worth CHF 36.4 billion to enhance taste and nutritional value", Nestle press release, June 28, 2011

Products & Brands  

A Third Of UK Consumers Ignore Fast-Growing Functional Food And Beverage Market

A third of UK consumers said they did not and do not intend to consume functional food and beverage products, according to Leatherhead Food Research's SenseReach survey. The market grew 150% from 2003 levels to reach $24.2 billion in value in 2010, thanks mainly to the 25% of consumers who use functional products daily and the 20% who said they do so at least once every two weeks. The authors conclude that functional food and beverage companies seeking to expand their sales should target those who already buy functional foods and drinks rather than trying to convert those that don’t.

"Sizable minority will never buy in to functional foods, UK consultancy says", Functional Ingredients, June 29, 2011

General Mills Follows Food-Inside-Food Trend, Launches New Products

General Mills has launched new food products that come stuffed with other foods inside, a trend that both consumers and manufacturers have found to their liking. Recent food-in-food launches include Betty Crocker and its Fun da-middles baking mix, Totino's Pizza Stuffers, and Pillsbury Grands' Biscuit Sandwiches that comes with eggs and sausage stuffed inside a biscuit. General Mills plans to launch similar products that belong to other product categories, such as yogurt, cereal, and snack bars. Most new products fail, underscoring General Mills' ambition to create new ‘platforms’.

"General Mills new food lineup focuses on foods stuffed inside other foods", Twin-Cities, June 29, 2011

Weight Loss, Aisle 6

Nutraceutical World, June 30, 2011

Research, Studies, Advice  

Study Shows High Folate Intakes Reduce Colorectal Cancer Risk

Increased intake of folate may help cut the risk of colorectal cancer, according to a study published in the Gastroenterology journal of the American Gastroenterological Association Institute. Researchers focused on the link between folate consumption and colorectal cancer among 99,523 participants in the Cancer Prevention Study II Nutrition Cohort. Results showed no significant association in the first two years of follow-up studies, but discovered significantly inverse relations in the following years. Findings supported epidemiological evidence that increased folate intake cuts colorectal cancer risk and eased worries that high intakes of the water-soluble B vitamin may actually increase risk of cancer.

"High Folate Intake May Reduce Risk of Colorectal Cancer", American Gastroenterological Association, July 05, 2011

No Evidence That “Moderate” Reduction In Salt Intake Offers Health Benefits

A systematic review of the results of seven studies involving more than 6,000 participants found little evidence to conclude that a moderate reduction in salt intake cuts the risk of dying or experiencing cardiovascular disease, though there was evidence that it reduces blood pressure. The researchers said moderate reductions in salt intake in the studies were perhaps too little to have a significant health benefit. They acknowledged that they would be more comfortable drawing conclusions regarding clear health benefits if the pool of participants were at least triple the number they examined. Larger studies should be conducted “to get a full understanding of the benefits and risks of reducing salt intake," said British researcher Rod Taylor.

"Reduced Dietary Salt for the Prevention of Cardiovascular Disease: A Meta-Analysis of Randomized Controlled Trials (Cochrane Review)", American Journal of Hypertension, July 05, 2011

High Levels Of Folate Intake Are Associated With Reduced Colorectal Cancer Risk

U.S researchers who analyzed eight years of data from a large (nearly 100,000 participants) cancer prevention study found an association between consuming high levels of the water-soluble B vitamin known as folate and a reduction in colorectal cancer risk. Folate occurs naturally in fruits, vegetables and other foods, and is also available as folic acids in supplements. The researchers found that the best results came from total folate and folic acid intake, from both natural and fortified foods, and from supplements. The study period was from 1999 to 2007, after folate fortification began. Researchers found neither higher nor lower risk of cancer during the first two years of follow-up (1999 to 2001), but found statistically significantly reductions in colorectal cancer during the subsequent years (2002 to 2007).

"High Levels of Folate From Supplements and Fortification Are Not Associated With Increased Risk of Colorectal Cancer", Gastroenterology, July 05, 2011

Natural Form Of Vitamin E Prevents Nerve Cell Damage Following Stroke

U.S. researchers have found that a natural form of vitamin E activates the production of a protein in the brain that washes toxic substances from neurons and keeps them alive following a stroke. The researchers suggest that alpha-tocotrienol could be have a more powerful effect than drugs in acting on single mechanisms for preventing stroke damage. The tocotrienol form of vitamin E, or TCT, is commonly found in the Southeast Asian diet. It is scarce in the American diet, however, but available in nutritional supplements. The researchers said alpha-tocotrienol influences the production of the protein MRP1 that clears away a toxic compound that destroys neurons when stroke blocks blood flow to brain tissue.

"Natural Vitamin E α-Tocotrienol Protects Against Ischemic Stroke by Induction of Multidrug Resistance-Associated Protein 1", Stroke, June 30, 2011

Resveratrol Prevents Harmful Effects Of Lack Of Physical Activity

A study by French researchers has found that resveratrol curbs insulin resistance and prevents bone density loss associated with spaceflight weightlessness and lack of physical activity. Experiments with rats in which the weightlessness experienced by astronauts was simulated showed that animals who were not fed resveratrol lost soleus muscle mass and strength, developed insulin resistance, and lost bone mineral density and resistance to breakage. Animals who received resveratrol experienced none of these effects. “[Resveratrol] could thus be envisaged as a nutritional countermeasure for spaceflight but remains to be tested in humans,” the researchers concluded.

"Resveratrol prevents the wasting disorders of mechanical unloading by acting as a physical exercise mimetic in the rat", The FASEB Journal, June 29, 2011

New System Makes Measurements Of Food's Impact On Blood Sugar More Accurate

A Swedish researcher has developed a way to measure a food’s impact on blood sugar levels – the glycemic profile or GP – that provides a more accurate picture when combined with the glycemic index (GI) system because it takes the shape of the blood sugar curve into account. The flatter the curve over time the better the GP. Food that produces an even and reasonably low curve scores the highest GP values because it delivers energy for a long time. Using the GI system alone is inaccurate because it only takes into account short-term fluctuations in blood sugar. The best foods have a low GI and a high GP score. To calculate GP, blood glucose is measured for three hours after a meal, rather than two hours used in GI.

"New measurement important complement to GI", News release, Lund University in Sweden, June 28, 2011

More Frequent Meals And Bigger Portions Lead To Elevated Energy Intake Of American Adults

A study revealed that changes in eating and drinking occasions (EOs) and portion size (PS) are the main causes of changes in total energy (TE) intake of American adults over a period of 30 years. Researchers used cross-sectional data from the Nationwide Food Consumption Survey (1977–1978), Continuing Survey of Food Intakes of Individuals (1989–1991), and National Health and Nutrition Examination Surveys (1994–1998 and 2003–2006) for adults aged 19 years and above to analyze TE and its components (PS, EO, and energy density). Results showed an increase in TE intake and the number of daily EOs between 1977–1978 and 2003–2006, while average PS rose between 1977–1978 and 1994–1998.

"Energy Density, Portion Size, and Eating Occasions: Contributions to Increased Energy Intake in the United States, 1977–2006", PLoS Medicine, June 28, 2011

Plant Foods Help Children And Adolescents Lower Risk Of Obesity

Regular consumption of plant foods may prevent obesity among children and adolescents, according to a study in the United States. Researchers used a non-quantitative food frequency questionnaire from the 1980 Child-Adolescent Blood Pressure Study to determine the link between the risk of being overweight and consumption of food groups. Results showed that the frequency of consumption of plant foods including grains, nuts, vegetables, and low nutrient-dense foods was inversely related to the risk of obesity. Also, researchers found that dairy consumption increased the risk.

"The risk of child and adolescent overweight is related to types of food consumed", Nutrition Journal, June 24, 2011

Beetroot Juice “Shots” Deliver A Powerful Dose Of Antioxidants, Polyphenols – Study

Researchers in the U.K. have found that a 70 ml (2.4 oz.) “shot” of beetroot juice delivers a large number of bioavailable antioxidants and polyphenols “in a small convenient volume.” Beetroot contains pigments known as betalains that comprise betacyanins, betaxanthins and other healthful phenolic compounds. In addition to these biologically accessible antioxidants, beetroot contains nutrients such as potassium, magnesium, folic acid, iron, zinc, calcium, phosphorus, sodium, niacin, biotin, vitamin B6 and soluble fiber. Consuming beetroot juice offers a more convenient alternative to eating the vegetable, the authors wrote, adding that their findings “clearly demonstrate that antioxidants [in the beetroot juice] become more accessible following digestion than those in other vegetable juice products.”

"A beetroot juice shot is a significant and convenient source of bioaccessible antioxidants", Journal of Functional Foods, June 22, 2011

Children Turn To Junk Food To Ease Stress, Boredom, Depression, Etc.

Many children and teens, especially females, overeat to ease stress, boredom and depression, according to a ten-year U.S. study. And they often become addicted to these unhealthy foods, making it difficult to lose weight or keep from gaining weight. The study involved 29,406 young people who ranged in age from eight to 21 years (ninety-four percent were females). Information was collected on a Web site through bulletin board posts, etc. Thirty-two percent of the participants said they chose sugar-sweetened beverages, junk food, and fast food when sad, depressed, stressed, nervous, lonely, tired or bored. The solution to the problem? “Taxation of sugar-sweetened beverages, and possibly junk food and fast food, and restriction of such outlets to children, would seem warranted and even embraced by some children.”

"Addiction to Highly Pleasurable Food as a Cause of the Childhood Obesity Epidemic: A Qualitative Internet Study", Eating Disorders, June 21, 2011

Higher Folic Acid Intake During Pregnancy Does Not Cause Childhood Atopic Diseases

A study revealed that folic acid supplementation and higher intracellular folic acid (ICF) levels during pregnancy are not associated with atopic diseases, such as asthma and wheeze, in childhood. Researchers conducted multivariable logistic and linear regression analyses of data gathered via the KOALA Birth Cohort Study. They also defined folic acid use as standalone and multivitamin supplements based on the period of use before and during pregnancy. Results of the study showed that increased ICF levels during pregnancy slightly decreased risk for developing asthma.

"Folic Acid Use in Pregnancy and the Development of Atopy, Asthma, and Lung Function in Childhood", Pediatrics, June 20, 2011

Soluble Fibre Supplementation May Help Reduce Abdominal Fat

A study revealed that increased consumption of soluble fibre may help lower the amount of deep belly fat or abdominal fat that humans accumulate. Researchers examined possible links between lifestyle factors — such as smoking, physical activity, calorie intake, and fat intake — and five-year change in abdominal fat as measured by computed tomography in the Insulin Resistance and Atherosclerosis Family Study. Results showed that soluble fiber intake and vigorous physical activities were inversely related to change in visceral adipose tissue, but soluble fiber played no role in change in subcutaneous adipose tissue.

"Lifestyle Factors and 5-Year Abdominal Fat Accumulation in a Minority Cohort: The IRAS Family Study", Obesity, June 16, 2011

Very Low-Calorie Diet Reverses Type 2 Diabetes In Clinical Trial

An extremely low-calorie diet reversed Type 2, or adult-onset, diabetes in a clinical trial conducted in the U.K. All eleven people who participated experienced diminished symptoms of the disease –  a chronic condition caused by excessive glucose in the blood – by limiting their food intake to 600 calories a day for eight weeks. Their diet during the trial consisted of liquid diet drinks and non-starchy vegetables. Pre-breakfast blood sugar levels were normal after one week; eventually the pancreas recovered the ability to produce insulin and post-meal blood sugar levels improved. After two months, the volunteers returned to a normal diet. In a three-month follow-up of ten participants, seven were still free of diabetes.

"Reversal of type 2 diabetes: normalisation of beta cell function in association with decreased pancreas and liver triacylglycerol", Diabetologia, June 09, 2011

Zinc Found To Play Major Role In Blood Sugar Regulation

University of Michigan researchers have discovered that zinc prevents a protein known as amylin from forming clumps in the pancreas associated with type 2 diabetes. Those clumps shut down the insulin-producing cells that control levels of sugar in the blood. Under normal conditions, when healthy people have proper levels of zinc in the pancreas, amylin helps blood sugar control. But when zinc levels drop, as in type 2 diabetes, amylin begins to clump together, which leads to the formation of ribbon-like structures called fibrils. These structures have been linked to a number of human diseases.

"A Two-Site Mechanism for the Inhibition of IAPP Amyloidogenesis by Zinc", Journal of Molecular Biology, May 17, 2011

Researchers Discover A Useful Fat In Waste Material From Canning Of Asian Fruit

Researchers in Thailand have discovered that the seed kernel waste of the edible Asian fruit rambutan can be processed to yield a fat that could possibly be used in the cosmetic and food industries. The fat extracted from the seed kernel – normally a waste product generated in the production of canned rambutan – contains high levels of arachidic acid, which makes the fat highly resistant to oxidation and therefore very stable. The extracted fat is white, solid at room temperature. Other physical and chemical characteristics “compared well with those of conventional fats.” Though the fat needs to be tested for safety before using it in food products, “the merit of using rambutan kernel fat in the cosmetic and food industries may be justified,” the researchers said.

"Response surface optimization and characteristics of rambutan (Nephelium lappaceum L.) kernel fat by hexane extraction", LWT - Food Science and Technology, May 11, 2011

Extract Of Cinnamon Bark Shows Promise In Preventing Alzheimer’s Disease

Researchers in Israel have discovered that an extract of cinnamon bark known as CEppt inhibited the development of Alzheimer’s disease in genetically altered mice and fruit flies. CEppt was isolated by grinding cinnamon and extracting the substance into an aqueous buffer solution. The  solution was added to the drinking water of the mice and fruit flies. The researchers discovered after four months that disease development had slowed remarkably; the animals' activity levels and longevity compared favorably to that of their healthy counterparts. According to the researchers, the extract inhibited the formation of toxic amyloid polypeptide oligomers and fibrils, which compose deposits of plaque found in the brains of Alzheimer's patients.

"Orally Administrated Cinnamon Extract Reduces β-Amyloid Oligomerization and Corrects Cognitive Impairment in Alzheimer's Disease Animal Models", PlosONE, January 28, 2011

Early Childhood Obesity Prevention Policies

Food and Nutrition Board, Institute of Medicine, June 23, 2011

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