UK consumers to face higher food prices as government regulations on junk food come into force

UK – The Food and Drink Federation (FDF) has warned that consumers will inevitably face higher food and drink prices if manufacturers are forced to absorb the cost of proposed Government policies during the next few years.  In the report, entitled ‘Eating into household budgets: the Government’s recipe for food price inflation’, the FDF estimates that proposed government policies around public health and sustainability will cost the national industry at least £8 billion (US$9.3 billion).    The association notes that if these were passed on directly to consumers, it would increase the price of…

Read More

Medina and Freshways Dairies to merge businesses in pursuit of greater liquid milk market

UK – UK dairy companies Freshways Dairy, based in Acton, and Medina Dairy, based in Windsor, have confirmed they have agreed to merge to create a viable, long-term, fresh liquid milk business.  Combining the two businesses will create a more robust dairy company with over 1,000 employees and a processing capacity of 500m liters of British Red Tractor farm assured milk.    The new company which will reportedly trade as Medina Freshways Limited will also enjoy a turnover of around £400 million (US$549 million).   A new board and management structure will be put in place to oversee the merger, ongoing operations, and…

Read More

High inflation eats into Unilever’s Q2 profits forcing CPG giant to lower full-year profit guidance

UK – Consumer goods giant Unilever is the latest causality of rising costs of raw materials, packaging and transport which have eaten into the company’s Quarter 2 profits and forced it to lower its full year guidance. Despite Unilever reporting an underlying sales growth of 5.4%, high inflation resulted in the company’s underlying operating margin in the six months to June dropping 100 basis points from a year earlier to 18.8 percent.  The company further noted that additional investment in its brands had also weighed on margins pushing net profits…

Read More

China’s Mengtai Group imports entire distillery from Scotland to create “globally award-winning whisky”

CHINA – The Mengtai Group, One of Inner Mongolia’s largest private firms with vast interests in coal production and electricity generation, is importing an entire whisky distillery from Scotland to China.  According to a report by the BBC, more than 35 tonnes of equipment, including stills, flooring, control valves, and pipework, are leaving Buckie in Moray for the port of Tianjin.  On arrival, the equipment part of a £3m “design and build” deal signed between Forfar firm Valentine International and China’s Mengtai Group in 2019 will be assembled at a facility being built in Inner Mongolia.  The facility in Ordos – a city of more…

Read More

UK retail chains, pubs mull shutting some stores due to staff shortages amid rising Covid-19 cases

UK – The rising number of cases in the UK is presenting a new challenge to business operators as many employees have had to self-isolate themselves following contact with people who have tested positive.  Recent figures showed more than 500,000 people in England and Wales were “pinged” by the NHS Covid app in the week to 7 July and required to self-isolate for 10 days for coming into contact with someone who has tested positive for Covid-19.    According to a BBC report, the rising number of people who are being forced into self-isolation is having profound consequences for the economy…

Read More

Ball to build new aluminium manufacturing facilities in UK, Russia as EcoBlue expands footprint in Thailand

EURASIA – World’s leading provider of aluminum packaging for beverage, personal care, and household products Ball Corporation is expanding its manufacturing footprint in the Eurasia region with new plants in the UK and Russia.  According to Ball, the new manufacturing facilities would produce billions of cans every year – across a range of formats and sizes – from 2023, and provide up to 200 skilled jobs.  The news follows the announcement earlier this year of Ball’s plans for a new €170 million (US$235.50 million) aluminum can plant in the Czech Republic, which will help boost its output in…

Read More

Upcycling ingredients maker Comet Bio raises US$22m to expand manufacturing capabilities

UK – Comet Bio, a UK-based upcycled food ingredients maker, has raised US$22 million in a Series C funding round led by Effingham-based private equity management fund Open Prairie.  Other investors including Louis Dreyfus Co., BDC Capital, and Sofinnova Partners participated in the round aimed at expanding Comet Bio’s manufacturing capabilities.  Comet Bio uses its patented upcycling technology to produce ingredients from crops’ residue left in the field, including straw, leaves and shells, and food leftovers.  One of the company’s upcycled ingredients, Arrabina has been clinically proven to promote the growth of beneficial bacteria in the gut.  The product, sourced…

Read More

Truvant opens new packaging facility in US as Encirc embarks on decarbonization of glass manufacturing

US –  Global provider of packaging and display solutions, Truvant has opened a new facility in Indiana, US to support customers from industries including food with secondary and promotional packaging services.  The new complex features capabilities for kitting, fulfillment, assembly, bundling, shrink wrapping, liquid blending, pouching, blister packaging, e-commerce fulfillment, and more.  The facility will support customers with manual, automated, and semi-automated processes, allowing for a wide range of scalable contract packaging, contract manufacturing, and supply chain solutions.  Truvant says that Indianapolis provides a central location from which it can service 75% of the North American market…

Read More

Suntory Group invests US$912m in renewable energy transition as Pilgrim’s UK targets net zero by 2030

JAPAN – Japanese beverage giant, Suntory Group is investing US$912 million in transitioning all its facilities to renewable energy as part of efforts to meet its goal of halving greenhouse gas emissions (GHG) by 2030.  According to a statement from the global beverage company, the investment will enable it to power its 63 directly-owned manufacturing sites and R&D facilities in Japan, the Americas, and Europe with 100% renewable electricity by next year.  Transitioning to renewable energy will also support Suntory’s goal to achieve net-zero emissions across its entire value chain by 2050.   “As a…

Read More

UK issues stringent regulations for junk food marketing to curb rise of unhealthy eating habits

UK – The government of the United Kingdom has banned late-night advertising of junk food in an effort to promote a healthy society.  The law is the latest attempt by the UK government to tame unhealthy eating habits that are causing its citizens to suffer from lifestyle diseases such as obesity and diabetes.  Obesity is a common problem that affects around 1 in every 4 adults and around 1 in every 5 children aged 10 to 11 in the UK, according to the UK National Health Service.  According to a report by the Guardian, a “growing obesity crisis” has…

Read More