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Food prices

With memories of peak prices in 2007-8 still vivid, manufacturers must keep a close watch on commodity markets. Sudden shifts can have a massive, overnight impact on costs - and worsen food insecurity in developing countries.

Competition causes concern in retailer-manufacturer dealings

20-Feb-2009 - The CIAA has expressed its concerns over the alleged abusive practices by retailers in their dealings with food manufacturers, as high food prices in 2008 put firms under pressure.

Nestle uncowed by economic outlook

19-Feb-2009 - Nestle expects to carry on seeing growth in earnings over 2009 despite the global recession, using its strong 2008 results as a springboard for growth.

Private label trend reduces the power of brands

16-Feb-2009 - The switch to private label over branded food is gathering pace in the recession, according to an index compiled by a UK newspaper, which may tighten the squeeze on branded goods manufacturers.

More reformulation on the cards, predicts RSSL

13-Feb-2009 - Food reformulation is expected to gather pace as the credit crunch hits home, predicts Reading Scientific Services (RSSL), which has seen an increase in enquires from customers seeking cheaper alternatives to costly inputs.

Unilever in supply standoff with major retailer

12-Feb-2009 - Tension between Unilever and a major supermarket chain has resulted in the de-stocking of 250 of the manufacturer’s products because it was making strict demands over what the retailer should sell.

UK food and drink sales resist recession pressures (so far)

11-Feb-2009 - While the recession bites in the UK, and consumers tighten their belts, food and drink retail sales were up 5.1 per cent, on a like-for-like basis from January 2008.

Frutarom completes acquisition of UK flavour group

05-Feb-2009 - Frutarom has finalized its acquisition of the UK flavour and fragrance company Oxford, which brings it one step closer to its goal of being a $1bn group by 2012.

Cashing in on phosphate price hikes

30-Jan-2009 - The market for cheaper alternatives to phosphates used in food is expected to blossom over the next few years as prices for the ingredient are likely to remain high, according to an industry analyst.

ADM strengthens European position with Schokinag acquisition

26-Jan-2009 - Archer Daniels Midland Company (ADM) is continuing its march into the European chocolate market and moving closer to its customers on this side of the Atlantic with the acquisition of the German firm Schokinag.

Recession bites into Barry Callebaut chocolate sales

23-Jan-2009 - There is further evidence that the market for chocolate is not as recession proof as traditionally thought as Barry Callebaut sales in Europe saw a marked drop over Q1.

Comparative cost of enzymes is boon to Novozymes

23-Jan-2009 - The high cost of inputs that has dogged the food industry in recent times looks to have helped raise the profile of enzymes as cheaper alternatives to other ingredients, according to Novozymes’ annual report.

Enzyme technology is tool for sustainable food, report

22-Jan-2009 - More research is needed on innovative raw material sourcing and alternative uses, according to a new report on how chemistry can contribute to sustainable food supply, which sees novel enzyme technology is a key area of development for ingredients, processing and preservation.

Chocolate could lose its ‘recession-proof’ reputation, warns ICCO

07-Jan-2009 - London cocoa prices hit a 23-year high at the end of December, but emerging questions about consumer demand could see prices fall in 2009, according to the International Cocoa Organisation (ICCO).

Frozen foods benefiting from recession

07-Jan-2009 - The frozen foods market is showing signs of a revival in the tough economic climate, with indications that consumers are switching back from higher-priced chilled foods to frozen alternatives in order to save costs and reduce waste.

Frutarom starts year with Oxford acquisition

06-Jan-2009 - Frutarom has made a confident start to 2009, putting its rapid growth strategy into action once more with an agreement to acquire UK flavour and fragrance ingredients firm Oxford.

Falling pound value may aid UK-Euro dairy woes

05-Jan-2009 - British dairy groups are proving to be particularly sensitive to the bleak new year outlook facing European processors, though the falling value of Sterling may cushion the nation’s producers ahead of an expected long-term pickup.

Melamine takes its toll on ingredient sales in China

19-Dec-2008 - The impact of this year’s melamine dairy crisis has rumbled through the food chain and although quality assurance measures can benefit responsible firms, downturn in Chinese dairy has still led to lost of ingredients sales.

Campina and Friesland get merger green light

18-Dec-2008 - Dairy co-ops Campina and Friesland are to become one at the end of this year, following competition clearance subject to conditions, and a favourable final vote by the councils of both.

Sweeteners still a bitter pill for Danisco margins

16-Dec-2008 - Margin pressure in its sweeteners and Genencor business divisions has caused Danisco to lower its bottom-line outlook and take a long hard look at its production set-up for xylitol and other products.

Splenda bounces back as Tate & Lyle releases figures

07-Nov-2008 - Tate & Lyle’s sucralose product has recovered from a drop in demand to see a sales increase after the opening of the firm’s Singapore production plant, albeit with a reduced operating profit.

Credit crisis cuts M&A activity in food industry

04-Nov-2008 - Consolidation in the food industry shifts down several gears as the global credit crisis cuts into financing opportunities for merger and acquisition activity and cash-rich firms with strong balance sheets sit and wait.

CSM announces 200 jobs cuts by the end of the year

03-Nov-2008 - Dutch bakery supplies business CSM has announced that it will cut 200 jobs from its workforce across Germany, France and the US in the next two months in response to plummeting sales and falling consumer confidence.

Competition watchdog extends probe of Danisco-Nordzucker deal

03-Nov-2008 - The Danisco deal to spin-off of its sugar arm to Germany's Nordzucker faces delays after German competition authorities take their review into a second phase, opting to investigate the €750m takeover further.

Falling vegetable oil prices to improve AAK cash flow

31-Oct-2008 - Specialty fats firm AAK has said that the falling price of vegetable oils will help keep its financial situation in good health – especially useful when acquisitions and organic growth in food ingredients are on the horizon.

Symrise optimistic in face of financial crisis

28-Oct-2008 - German flavour and fragrance manufacturer Symrise remains confident of seeing growth for the remainder of this year and next, despite the financial downturn which is gripping the world markets.