Tag Archive | "coffee"

Zentis Polska unveils new ingredient for yogurts


timthumbZentis Polska has developed a new ingredient for drinkable yogurts with coffee, cream, cardamom and chilli – as well as its Pop & Joy line of juicy popping boba.

The product was introduced in May and follows several months of research and development to create the new functional preparation for drinkable yogurts, with functional properties and original taste characteristics. It contains coffee, cream, cardamom, chilli and Pop & Joy.

Coffee and cream give the yogurt a “gourmet” taste, while other ingredients provide original spice notes, which, in combination with coffee, deliver a unique taste and aroma. Cardamom is one of the oldest and most expensive spices in the world with many health-supporting properties, such as helping to fight against obesity, remove toxins from the urinary tract and alleviate the symptoms of colds.

In turn, capsaicin contained in chilli stimulates appetite and gastric juice secretion, facilitating digestion and further supporting the cardiovascular system – as well as increasing resistance to colds. The capsaicin gives a spicy taste to the yogurt.

Pop & Joy are jelly balls with a juicy liquid centre. The innovation was the winner in the best beverage ingredient category at the World Beverage Innovation Awards 2015 for its chili-flavoured boba with plant-sourced proteins.

Pop & Joy gives the yogurt an appearance that is attractive to the consumer, Zentis Polska said, and offers a multisensory experience.

“The health-promoting nature of the preparation with coffee extract and mix Pop & Joy also draws attention.”

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Fairtrade sees support from UK consumers


TeaVolumes of Fairtrade tea, coffee, cocoa and bananas all grew in the UK in 2015 as consumers showed support for Fairtrade, according to the organisation, and these increased volumes will, it said, lead to greater financial premiums to Fairtrade farmers and workers in Africa, Asia, Latin America and Caribbean.

Fairtrade reported positive volume growth in four out of the five main Fairtrade food categories – coffee, tea, bananas and cocoa – and said that this sent a strong signal that shoppers and businesses are still standing up for Fairtrade, despite the tough grocery market.

“These figures show that British shoppers remain committed to Fairtrade, despite the turbulence in the grocery market,” said CEO of the Fairtrade Foundation Michael Gidney. “That’s good news for those businesses offering Fairtrade products. “We’re delighted to see increases in most of the categories for which Fairtrade is best known – this means more producers are getting a better deal for the food they grow for us.”

Commodities seeing strong volume growth were as follows:

  • Coffee: 12%
  • Tea: 3%
  • Bananas: 5%
  • Cocoa products: 6%

In real terms, the organisation said that the growth in volumes means that in 2015, the UK’s appetite for Fairtrade meant:

  • More than 88 million more Fairtrade bananas were eaten, compared to 2014.
  • The nation’s love affair with Fairtrade coffee showed no signs of abating, with an estimated 255 million more cups drunk in 2015 compared to 2014
  • An additional 184 million cups of Fairtrade tea were brewed n 2015, compared to 2014.

However, not all Fairtrade products fared as well in 2015. In particular, changes in EU market regulations on sugar had created a collapse in sales of cane sugar, said the Foundation, as it had warned in its 2015 report Sugar Crash. Volumes of Fairtrade sugar declined by 36% in 2015, compared to 2014, spelling real challenges for the many thousands of small-scale cane growers dependent on cane exports to the EU for their livelihood.

The decline in the price of sugar in Europe has led to a shift away from cane towards domestic, subsidised beet sugar, delivering what Fairdtrade described as an effective triple whammy of reducing cane farmers’ livelihoods, reduced impacts for Fairtrade farming communities and much more cheaply available sugar at a time of national concern over obesity. Meanwhile sales of Fairtrade fresh and dried fruit and nuts also saw decline in 2015, as did Fairtrade cotton once again.

The Fairtrade Foundation’s initial estimates of the overall retail value of the UK Fairtrade market show a slight decline to around £1.6 billion in 2015, compared to £1.7 billion in 2014. However, if the collapse in the price and market for cane sugar is removed from the equation, overall Fairtrade sales grew by an average 4% in volume, whilst the retail value remained steady with around 1% growth.

“Sales in many commodities remain strong for Fairtrade, yet the irony of the EU flooding the market with cheap sugar at a time of increased concern over obesity is surely lost on no-one, with the added risk of pushing 200,000 farmers in developing countries back into poverty,” said Gidney.

For 2016, the Fairtrade Foundation said it remains cautiously optimistic, with recent announcements by a range of businesses to extending their commitments to buying on Fairtrade terms.

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Bosch Packaging Technology at the Forefront of Developing the Coffee Industry in Ethiopia


German multinational the Bosch Group is hosting the ground breaking 1st International Coffee Processing and Packaging Round Table in Addis Ababa, Ethiopia.

It will feature representatives from United Nations Industrial Development Organisation (UNIDO), several industrial and agricultural institutions, big business, SMEs, farmers, civil society as well as local and international aid agencies in a strategic bid to enhance food security.

The discussion seeks to increase localisation to enhance food security in the region while looking to improve the quality of life for citizens through stimulating economic growth in one of the country’s key sectors. It further seeks to bring key stakeholders together in a first step to increase local value addition and industrialisation.

Ethiopia is believed to be the birthplace of coffee with one in every five citizens presently involved in the industry. The forum will be held during the 3rd Annual Addis Agrofood Exhibition that takes places from 27 to 29 November 2015. It will be hosted by a business division of the Bosch Group, Bosch Packaging Technology, which is a global market leader.

Among the topics to be discussed include ways to increase coffee processing and packaging that is adequate for domestic, regional and export retail markets.

Other items to be discussed include the latest technology for roasting as well as for coffee growers, and technical solutions for advanced packaging.

Bosch Packaging Technology has around 130 000 energy efficient packaging machines installed and running in 13 000 factories worldwide. It has a presence in 170 countries with its portfolio including 250 different machine types in 40 business sectors.

It’s culture of doing business with a conscience led to the company’s involvement in the United Nations’ “Save Food” initiative since 2011. The programme aims to find solutions to global food losses and waste and ensure less food is lost en route to customers and by customers themselves.

As a market leader, Bosch Packaging Technology allows food to be transported better over long distances for end users in emerging markets.

Dr. Markus Thill, the President of Bosch Africa, says in 2013 Bosch Packaging Technology received 77 000 global orders alone, explaining: “As part of the Bosch Group we offer best-in-class technologies that are ‘invented for life’ in the truest sense. Our machines, solutions and services provide vital support to human health and nutrition – especially in emerging markets such as those in Africa.”

He adds: “And our machines are robust, long-lasting, easy-to-use and boast low energy consumption. This is why we believe that, together with key stakeholders, we can assist and support the development of the coffee sector in Ethiopia.”

Ethiopia is a major player in the world coffee market. It is presently the sixth largest producer in the world, exporting over 150 000 tons a year. However, the country exports more than 90% of its raw commodity and thus it is unrefined, unprocessed and unpackaged. This means that the overwhelming majority of the profits are generated out of the country.

Now Bosch Packaging Technology is taking the lead in developing public- private partnerships to create an enabling environment for entrepreneurs and farmers to actively participate in the industry through processing, roasting, manufacturing, packaging and even distributing raw coffee.

Mr Vandan Rughani, Managing Director of Bosch East Africa continues: “We believe that technology is the best way that the coffee industry can move up the value chain in Ethiopia and compete globally. This is why UNIDO works with companies like Bosch to make this a reality. Bosch views this initiative as crucial to the progress of the African continent both in terms of economic development and sustainability as well as enhancing food security. It is a partnership as our business model is underpinned by creating long-term, sustainable solutions for emerging and developing markets.”

He says that the round table is merely the first step to ensure Ethiopia maximises the country’s coffee resources for greater socio-economic development.

“Agriculture accounts for almost half of the country’s GDP. In addition, Ethiopia is one of Africa’s fastest growing economies and now is the time for it to stimulate its micro and macro economies that benefits all its people. And technology helps in this regard.”

Bosch is a leading global supplier of technology and services operating in over 150 countries and employing over 360000 through its 440 subsidiaries and regional interests. What makes its business model unique is that 92% of the company is owned by a charitable foundation. This ensures that, rather than being profit-driven, its focus is on creating sustainable global solutions through conscientious investments.

Dr. Thill: “technology is made available to local entrepreneurs and farmers to improve food security, eradicate wastage and build new industries. We have already started supplying packaging machinery to local business people and farmers and co-operatives. This allows them to process and package local coffee and thus leverage growth throughout the value chain.”

Mr Vandan Rughani concludes: “We believe a holistic approach will boost SMEs, stimulate job creation as well as additional opportunities and supplementary industries further down the value chain.”

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New Head For Nestle UK & Ireland


Fiona Kendrick (pictured), currently head of Nestle’s Global Coffee & Beverage Strategic Business Unit, will succeed Paul Grimwood as chief executive of Nestle UK & Ireland in October. Having been at the helm of Nestle UK & Ireland since January 2009, Paul Grimwood is moving to head up the Swiss food and beverage giant’s US business.

Fiona Kendrick joined Nestle in 1980 in the UK. She started her career with Nestle working in sales & marketing for Findus in the Frozen Food Division. She became general manager of the division in 1991 before moving into the coffee business in 1993.

Fiona Kendrick became managing director for the Beverage Division in Nestle UK in 2001, a position which she held for seven years. She moved to Nestle in Switzerland in 2008 when she became responsible for the global management of Nestle’s coffee and beverage brands. In this capacity, she has the responsibility for setting the strategic global direction for Nescafe as well as Milo, Nesquik and Nestea.

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Nestle Reaffirms Commitment to Coffee Farmers in Vietnam


Nestle has reaffirmed its commitment to support more than 20,000 coffee farmer households in Vietnam. The company will continue to develop sustainable coffee farming in the country in partnership with the Vietnamese Ministry of Agriculture and Rural Development. Measures include improving coffee productivity through better farming practices and distributing high-yield, disease-resistant plantlets over the next five years.

The initiative is backed by Nestle’s global Nescafe Plan which it extended toVietnamlast year. As part of the plan Nestle looks to source 30,000 tonnes of coffee from around 16,000 Vietnamese farmers annually, helping them obtain better prices and a steady income. This is part of an approach to business Nestlé calls ‘Creating Shared Value’, which aims to create value for the company’s shareholders at the same time as for those communities where it operates.

Last year Nestle announced an investment of $270 million in a new coffee factory in Dong Nai province. It will produce products under the Nescafe brand for both local consumption and export. The first phase will begin in November 2012 and looks set to create 170 new jobs once fully operational next year.

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Fairtrade Sales Reach Almost €5 Billion


€4.9 billion ($6.6 billion) was spent globally on Fairtrade certified products last year, according to figures by Fairtrade International. Around the globe, retail sales of Fairtrade certified products increased by a total of 12% compared to 2010. In Fairtrade’s biggest market, the UK, shoppers spent 12% more on Fairtrade products. In Fairtrade’s first and oldest market, the Netherlands, Fairtrade sales grew by 24%.

Meanwhile, growth of Fairtrade sales in new countries is skyrocketing. South Africans spent more than three times more on Fairtrade certified products in 2011 over 2010. In its first year with a national Fairtrade organization, sales in South Korea registered at Eur17 million. Products with the FAIRTRADE Mark are now available to people in more than 120 countries.

Sales grew steadily across all of the leading Fairtrade products: coffee by 12%, cocoa by 14%, bananas 9%, sugar 9%, tea 8%, and flowers by 11%.

“Fairtrade is the norm for millions of people. It is a part of the regular weekly shopping. And now sales of Fairtrade certified products are taking off in new countries, as entirely new groups of people discover Fairtrade for the first time,” points out Tuulia Syvaenen, executive operations officer at Fairtrade International.

Strong Fairtrade sales are great news for the more than 1.2 million farmers and workers working at 991 Fairtrade certified producer organisations in 66 countries. In addition to the income they earned from sales of Fairtrade products, farmers and workers earned an extra Eur65 million in Fairtrade Premium in 2011. They spent this money on projects that they decided upon democratically, such as farm improvements, education, healthcare and community projects.

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DE Master Blenders 1753 Starts Official Trading


DE Master Blenders 1753, the independent pure-play coffee and tea company, which was spun off from Sara Lee Corporation in June, has commenced full trading on NYSE Euronext in Amsterdam. Michel Cup, chief financial officer of DE Master Blenders 1753, comments: “DE Master Blenders 1753 offers a compelling growth story. We have the ambition to become the number two coffee and tea company in the world through value added offerings, innovation and expansion. The independent listing gives us additional flexibility in structuring transactions and provides greater visibility in the financial markets.”

The creation of a stand-alone focused company enables DE Master Blenders 1753 to more rapidly introduce new products and to react faster to changes in its markets. There is a more streamlined organisation due to the reduced number of management layers, and the company is able to optimise its capital structure more easily than as part of a larger conglomerate business. The independence offers greater strategic flexibility, including more opportunities for strategic partnerships and/or acquisitions.

DE Master Blenders 1753 offers an extensive range of high-quality, innovative products through well-known brands such as Douwe Egberts, Senseo, L’OR, Pilao, Merrild, Moccona, Pickwick and Hornimans in both retail and out of home markets. The company holds a number of leading market positions across Europe, Brazil, Australia and Thailand and its products are sold in more than 45 countries. DE Master Blenders 1753 generated sales of more than Eur2.6 billion in fiscal year 2011 and employs around 7.500 people worldwide.

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Separation of Sara Lee Completed


The Hillshire Brands Company, formerly Sara Lee Corporation, has completed the previously announced separation of its international coffee and tea business – DE Master Blenders 1753 – and has started trading on the New York Stock Exchange.

The Hillshire Brands Company is the US leader in meat-centric food solutions for the retail and food service markets. The company generates nearly $4 billion in annual sales and has approximately 8,500 employees. Hillshire Brands’ portfolio includes iconic brands such as Jimmy Dean, Ball Park, Hillshire Farm, State Fair, Sara Lee frozen bakery and Chef Pierre pies, as well as artisanal brands Aidells and Gallo Salame.

Headquartered in the Netherlands, DE Master Blenders 1753 is an international coffee and tea company. Its coffee and tea products are available in more than 45 countries and with sales of Eur2.6 billion, DE Master Blenders 1753 is the third largest company in the coffee and tea industry.

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Hillshire Brands Company is New Name For Sara Lee’s North American Business


Sara Lee has chosen Hillshire Brands Company as the new name for its North American business. Sara Lee will become two independent pure-play, publicly-traded companies on June 28, 2012. DE Master Blenders 1753 will focus on international coffee and tea and Hillshire Brands will focus on meat-centric food products and foodservice operations. Hillshire Brands will include several popular, market-leading consumer brands including Jimmy Dean, Hillshire Farm,BallPark, Aidells, Gallo Salame and State Fair. Hillshire Brands will be listed on the New York Stock Exchange.

“As a pure-play company with strong momentum, we needed a name and identity that captures the potential of this new organization,” says Sean Connolly, chief executive officer of Sara Lee North American Retail and Foodservice, who will become chief executive officer of Hillshire Brands. “Hillshire Brands represents our strong heritage in quality and great taste, as well as our ambitions for growing our portfolio of iconic brands in the future.” The Hillshire name was inspired by the Hillshire Farm brand, which Sara Lee acquired in 1971.

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Nestle Strengthens Nespresso With €250 Million Investment in Switzerland


Nestle is strengthening its premium portioned coffee brand Nespresso by investing SFr300 million (Eur250 million) to meet growing consumer demand worldwide. The company is to build a new factory in Romont in the Swiss canton of Fribourg to increase coffee capsule production.

Nespresso’s third production site will boost employment in the region, creating 400 new direct jobs in the long term. It is the latest multi-million Swiss Franc investment that Nestle has made in Nespresso in the last three years. SFr300 million was invested to build Nespresso’s second production and distribution centre in Avenches,Switzerland, in 2009.

“Some 25 years after creating the portioned coffee segment, the third Nespresso production centre will provide the capacity needed to sustain growth in Europe and develop our brand globally,” says Patrice Bula, executive vice president for Nestle, responsible for the Strategic Business Units, Marketing, Sales and Nespresso.

Construction of the factory is due to begin before the end of the year. It will be operational by 2015. The factory will be one of three Nespresso production sites in Switzerland. In addition to Avenches, Nestle opened its first Nespresso production centre in Orbe.

Nespresso has continued to grow since it was launched by Nestle over a quarter of a century ago. Last year, Nespresso achieved sales of more than SFr3 billion and growth of about 20%. Strengthening its capabilities in emerging and developed markets, it has recently opened boutiques in Dohain the state of Qatar, Seoul in South Korea and Innsbruck in Austria. There will be over 300 Nespresso boutiques worldwide by the end of 2012.

As part of Nestle’s continued effort to construct more environmentally friendly buildings worldwide, the new factory in Romont will use renewable energy produced by its coffee roasting technology to heat the building.

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United Coffee Sold to Japanese Group


United Coffee, Europe’s leading independent coffee group, is being sold by private equity fund, CapVest Equity Partners, to UCC Holdings, Japan’s leading coffee company. The transaction is expected to complete during the second quarter of 2012 and will bring together two leading coffee groups from Europe and Asia to become one of the top five biggest independent coffee companies in the world. United Coffee will continue to trade as United Coffee across all of its key markets.

UCC is Japan’s largest producer of coffee with a turnover of Eur2.5 billion and employs 3,700 people. It supplies some of Japan’s leading companies in retail, out-of-home and industrial markets and owns successful retail and out-of-home brands. Founded in 1933, UCC remains a family-owned company. UCC has a strong track record in innovation and has pioneered coffee culture in Japan for 80 years, including the invention of canned coffee in 1969. It continues to push the boundaries to reflect the latest consumer trends.

UCC was the first Japanese coffee company to implement the integrated business model and operates a number of coffee businesses with plantations in Jamaica and Hawaii, plus seven plants in Japan. All are certified for their high standards of quality control and operate within strict global safety standards.

Headquartered in Geneva, United Coffee has an annual turnover of Eur422 million. The company produces 72,000 tons of green beans equivalent coffee products at seven major factories in the Netherlands, Spain,Switzerland, UK and France and employs 1,000 people. The group serves major retail customers in Spain, The Netherlands, Switzerland, Scandinavia, France, Germany, UK and a number of export markets. It markets household brands to the HORECA market with ‘Rosca’ in Switzerland, ‘Templo’ in Spain and ‘Smit & Dorlas’ in Holland.

Gota Ueshima, chief executive of UCC, says: “With the sale of our gift company, Shaddy, last month we have refocused on our long-term strategy of developing a global coffee business. I am very excited that we have been able to acquire one of the greatest coffee companies in Europe and, together with United Coffee, we can create a truly international market- leading coffee group.”

The new group has a number of exciting initiatives planned. Earlier this year United Coffee launched its coffee capsule system to the out-of-home market. Following the acquisition, this is now expected to grow in multiple markets worldwide.

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New Nescafe Coffee Uses Micro-granules Adapted to Local Tastes


Consumers worldwide can enjoy a new premium Nescafe that uses a blend of soluble and finely ground micro-granulated coffee designed to meet specific tastes in individual countries. This month it has been launched in Brazil as Nescafe Duo Grao.

It was first launched to Japanese consumers as a luxury coffee called Nescafe Koumibaisen last year. In the United Kingdom, it was launched as Nescafe Azera, and as Nescafe Molienda in Mexico. The product aims to reach more consumers in more countries this year.

Nescafe asked researchers at the Nestle Product Technology Centre in Orbe, Switzerland, to help them understand how to match its coffee to consumers’ taste preferences and habits. The researchers found out that consumers in Mexico do not like bitter coffee, but prefer a smoother taste. The Japanese like their coffee stronger and rich in aroma, while the British like a well-balanced coffee taste. Brazilians prefer their coffee with a smooth but aromatic taste.

“From Brazil to J apan, we discovered that consumers have really diverse tastes,” explains Michael Briner of the beverage strategic business unit at Nestle. “Lifestyle, consumption and daily patterns all made a difference so we used our coffee expertise and know-how to tailor the product to each country.”

Nescafe selected a blend of Arabica and Robusta coffee beans to achieve specific tastes, choosing beans that provided a smoother or more bitter taste. The beans are either lightly or deeply roasted to determine the different aromas. The roasted beans are then ground down to micro-granules and blended together with soluble coffee to provide a unique and specifically crafted cup of coffee.

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Eden Springs Entering the Coffee Market


By acquiring the coffee activities from Thecafe, the Dutch market leader in water coolers, Eden Springs, has established a platform for its planned growth in the office coffee service market. Eden Springs is Europe’s leading provider of water solutions for the workplace, offering a broad range of bottle-fed water coolers and plumbed-in water coolers. With a network of branches and water sources across 15 European countries, Eden bottles and distributes more than 368 million litres of water annually and services more than 450,000 clients. In order to broaden its drinking solutions’ concept, Eden Springs is also providing different coffee solutions for all kinds of workplaces.

Raanan Zilberman, chief executive of the Eden Springs Group comments: “This acquisition will enable Eden Springs to offer all customers a full hydration package, with mains and bottle-fed water coolers and a complete range of hot beverage solutions including premium coffee, hot chocolate, tea and even soup.”

In The Netherlands the Thecafe’s industry knowledge will help to provide Eden customers with the very best advice and a wide selection of coffee machine solutions.

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Britain’s Growing Appreciation For Green and Herbal Tea


New research from Mintel finds British consumers are increasingly turning to alternative varieties of tea, as sales of green tea bags have shot up an impressive 83% in past two years alone. Indeed, the strain is showing for good old-fashioned English Breakfast tea. Although accounting for the biggest share of the tea market (70%), sales of ordinary English Breakfast tea bags dropped by 1.5% from £470 million to £463 million between 2010 and 2011. Since 2009, the share of ordinary bags as a percentage of all in home tea sales has declined from 73% in 2009 to 70% in 2011. What is more, the number of British consumers using English Breakfast tea in the past 12 months has fallen from 87% in 2010 to 83% in 2011.

Meanwhile, other more exotic varieties have shown more positive performances, indeed, between 2009 and 2011, sales of “Fruit and Herbal bags” (valued at £54 million in 2011) increased 10%, while “Speciality bags” (£52 million) and “Decaffeinated bags” (£36 million) grew by 8% and 16% respectively. But it was the “Green bags” sector which was the real star performer of the home tea sector. Sales of Green bags grew a sensational 83% between 2009 and 2011, the market almost doubling from £12 million in 2009 to £22 million in 2011. Today, as many as 12% of Brits drink Green tea on a weekly basis.

Alex Beckett, senior food analyst at Mintel, comments: “While Engligh Breakfast tea is fondly regarded, the expansion of coffee chains and the exotic flavours of fruit, herbal and green teas are encouraging consumers to diversify their consumption habits, prompting fewer cups of standard tea to be drunk. Though the segment continues to play only a niche role in the market, Green tea, like Fruit and Herbal teas, has benefited from positive associations with healthiness. Green tea extracts are increasingly found in cosmetic beauty products, raising the profile of Green tea among women in particular.”

Overall, retail value sales of tea in the UK jumped by 22% to £655 million between 2006 and 2011. Annual sales growth had rapidly accelerated to 11.9% in 2009 when the market was valued at £610 million. This was largely fuelled by price inflation, which also remained high in 2010 when the total value hit £660 million. The tea market then declined in 2011, when value fell 1% to £655 million. Today, tea is drunk by almost nine in ten (87%) Brits.

“When faced with adversity, Britons have historically reached for a cup of tea. And the state of the current economic climate should in theory provide bountiful times for tea brands, considering three quarters of users describe it as comforting. However, diversity appears to be impacting tea consumption more than adversity these days. With usage rates falling and value sales growth all but reliant on commodity inflation, it could be forgiven for disregarding the long-established motto to ‘Keep calm and carry on’.” Alex Beckett continues.

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Sara Lee Moves Closer to Coffee and Tea Business Spin-off


Sara Lee expects to complete the spin-off of its international Coffee & Tea business by the end of June 2012. Post spin-off, the Coffee & Tea business will be domiciled as a new publicly traded company incorporated in the Netherlands.

“With over 250 years of history, the Coffee & Tea business has solid market positions and deep roots in many European markets,” says Sara Lee executive chairman Jan Bennink. “Domiciling Coffee & Tea in the Netherlands allows management to be close to its key Western European markets and effectively manage its global portfolio.”

The Coffee & Tea business intends to move its operating headquarters from Utrecht to Amsterdam in the second half of calendar year 2012. Amsterdam was chosen as the location for the new headquarters in the Netherlands due to its central location and accessibility to an international labour market.

As a consequence of the spin-off, Sara Lee expects to release approximately $700 million of deferred tax liabilities currently on its balance sheet. At the time of the spin-off, Sara Lee now expects to have total debt of approximately $1.7 billion and approximately $300 million in cash.

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Nescafe Dolce Gusto Expands in Europe


Nestle is strengthening one of its fastest growing businesses in Europe with a Eur220 million (over SFr265 million) investment in building a new Nescafe Dolce Gusto factory in Germany, the largest market for the brand worldwide. Nescafe Dolce Gusto is Nestle’s machine and capsule ‘coffee shop experience-at-home’ system for both hot and cold drinks. It offers nearly 30 coffee, Nesquik and Nestea varieties.

The factory, located in Schwerin, will create 450 jobs. With 12 new production lines, it will become operational by the end of 2013. Located about 100 km from Hamburg, the biggest European port for coffee imports, the factory aims to produce about two billion coffee capsules a year for export to the rest of Germany, Eastern Europe and Scandinavia.

“This is one of our biggest investments in Europe and highlights our continuous investment in our capacity for innovation,” says Laurent Freixe, Nestle’s zone director for Europe. “Nescafe Dolce Gusto is the leader in the portioned coffee market in 20 countries. With a growth rate of over 50%, it is one of the fastest growing businesses for Nestle inEurope.”

The Schwerin site is the company’s third Nescafe Dolce Gusto factory. Last year, Nestle invested SFr64 million in the Nescafe Dolce Gusto site at its Nescafe factory in Girona, near Barcelona, Spain.

The company’s first Nescafe Dolce Gusto factory, which opened in 2006 in Tutbury in the United Kingdom, is already running at full capacity. Last year Nestle invested £110 million in the site to triple production.

The Schwerin factory is Nestle’s latest investment in Germany– the company’s fourth largest market globally.

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Nestle Launches Coffee Machine For Small Businesses in Europe


Nestle has launched a new coffee machine designed to appeal to Europe’s millions of small businesses. The Nescafe Alegria, which is being rolled out by the company’s ‘out-of-home’ food services business Nestle Professional, is aimed at so-called ‘micro-enterprises’ of fewer than ten employees.

Micro-enterprises represent nine out of ten small to medium-sized enterprises in Europe, which in turn account for 99% of all businesses on the continent. Nestle says it has identified a gap in this market for a cost-effective system that allows small organisations to make a range of cafe-style coffees for their customers.

The design of the Nescafe Alegria is based on Nestle’s highly successful Nescafe Barista home coffee machine. Available in Japan only, Nescafe Barista was created by Nestle’s research and development network and launched in 2007. More than 600,000 have been sold since then, making it the most popular coffee machine in the country.

To adapt the system for small businesses inEurope, Nestle Professional increased the size of its water tank and renamed it to complement the existing Nescafe Alegria coffee machine range.

The Nescafe Alegria machine has already been launched in seven countries in Europe including Germany, the Netherlands, Poland, Russia and the United Kingdom. Nestle Professional plans to roll out the machine in other European countries later this year. The company may also launch it in Latin America and other parts of Asia.

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Nestle to Restructure UK Coffee Operations


Nestle UK has unveiled proposals for a further £200 million extension to its Nescafe factory in Tutbury, Derbyshire, but will close its coffee factory at Hayes. The investment at Tutbury is in addition to the £110 million extension to the Nescafe Dolce Gusto facility at the site announced in November 2011. For the first time in the UK all forms of coffee production including freeze dried, spray dried and pod technology, will be brought together on one site.

However, production at Nestle’s coffee factory in Hayes will transfer to Tutbury, leading to the eventual closure of the Hayes site, where 230 people are employed, in 2014. The Hayes factory plays a vital role in Nescafe production. However, it is not feasible to redevelop the Hayes site to create the manufacturing facility Nestle UK needs for the future.

125 new jobs will be created in Tutbury through the transfer of production. This is in addition to the 300 new jobs in Tutbury announced in November 2011.

Paul Grimwood, chairman and chief executive of Nestle UK & Ireland, says: “Over the next three years, we are investing £500 million to establish our next generation of world class manufacturing facilities in the UK. The proposed restructuring, which will bring all our coffee manufacturing together at Tutbury, is a key part of this overall investment programme.”

Over the past five years Nestlé has undertaken a multi-million pound investment programme, establishing its next generation of world class competitive manufacturing facilities in the UK. This investment programme includes:

* £200 million spent transforming Nestle’s major confectionery factory in York to create a best in class manufacturing facility;

* creating a £40 million European centre of excellence for Nescafe Cappuccino in Dalston, Cumbria;

* establishing a £20 million seasonal confectionery manufacturing centre in Halifax;

building a new £35 million bottling plant in Buxton that will be one of the most environmentally sustainable operations of its kind in the world when it opens later this year;

* a £7 million expansion for Nestlé’s global Research & Development centre for confectionery in York.

Nestle UK & Ireland has approximately 7,000 employees across 19 sites and comprises: Nestle UK (Food & Beverage, Confectionery and Food Services), Nestle Ireland, Nestle Purina Petcare, Nestle Waters, Nestle Nutrition, Jenny Craig, Nespresso, Cereal Partners UK (a joint venture with General Mills) and Lactalis-Nestle Chilled Dairy (a joint venture with Lactalis).

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Sara Lee Strengthens its International Beverages Business


Sara Lee has acquired Tea Forte, a US-based leader in the ultra-premium tea category, for an undisclosed sum. The deal is in line with Sara Lee’s plans to divide the group into two publicly traded, pure-play companies: one focused on meats in North America and the other focused on the international coffee and tea market.

Tea Forte posted revenues of $12 million in 2011 and is present at leading hotels, restaurants and luxury retailers in 35 countries. Tea Forte’s award-winning teas are available in loose format and in the company’s signature pyramid infuser.

“Acquiring Tea Forte fits perfectly into our strategy to spin off ‘CoffeeTeaCo’ as a pure-play coffee and tea company poised for strong growth,” says Jan Bennink, executive chairman of Sara Lee. CoffeeTeaCo will retain the current management team of Tea Forte to run the business independently before integrating it into its international coffee and tea operations.

Meanwhile, Sara Lee has completed the sale of the majority of its North American Foodservice coffee and tea operations to The JM Smucker Company for $350 million in cash. The two companies have also established a long-term partnership to collaborate on liquid coffee innovation.

“In recent years, our North American coffee business has been foodservice-based and largely unbranded, which is a challenge in a highly competitive marketplace,” says Jan Bennink. “Our decision to sell a major part of this business to Smucker is an example of Sara Lee Coffee and Tea’s renewed focus on sustainable, profitable growth and part of our mandate to create the strongest possible pure-play company.”

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Sara Lee to Acquire Dutch Cafe Store Leader


Sara Lee, the US-based food and beverage group, is acquiring CoffeeCompany, a leading Dutch cafe store operator. The acquisition will boost Sara Lee’s branding platform and strengthen its presence in the growing segment of young out-of-home coffee consumers. The transaction is expected to close in the next 30 days, pending final closing conditions.

 

“This acquisition is part of our strategy to create a pure-play coffee and tea company poised for strong growth,” says Jan Bennink, executive chairman, Sara Lee. “Acquiring CoffeeCompany, one of the most exciting, dynamic coffee names among young urban consumers, will make Sara Lee the number one cafe operator in the Netherlands. It will also allow the business to expand its platform for inspiration, branding and consumer connection.”

 

Sara Lee plans to divide into two pure-play publicly-traded companies, one focused on the international coffee and tea market and the other on North American meats. The split is on track to occur during the first half of calendar year 2012.

 

Sara Lee plans to retain the current management team of CoffeeCompany, which will integrate and run the combined network of 60 premium cafes with more than 7 million yearly consumer visits. The new combined cafe stores business will have a strong presence in premium downtown locations in major cities like Amsterdam, Rotterdam, Utrecht and The Hague.

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Sara Lee Strengthens European Coffee Business


Sara Lee and its Norwegian joint venture partner, Kaffehuset Friele, have agreed to acquire the House of Coffee business, a leading food service provider of beverage solutions to offices and institutions in Norway and Denmark, from ISS for an undisclosed sum. The deal is subject to regulatory approval but is expected to close before the end of 2011.

 

Sara Lee owns approximately 45% of Kaffehuset Friele, the leading coffee company in Norway. Through this joint venture, Sara Lee successfully sells products such as Senseo coffee pods and Cafitesse liquid coffee in the Norwegian market. In Denmark, Sara Lee owns Merrild, the country’s number-one coffee brand. The acquisition of House of Coffee will help Kaffehuset Friele and Sara Lee strengthen their positions across various out-of-home channels in both countries.

 

“As we prepare for the launch of our successful pure-play coffee company, we continue to strengthen our positions in important markets that will be key to both our success and the success of our partners,” says Jan Bennink, executive chairman of Sara Lee.

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Nestle Invests £110 Million in UK Coffee Factory


Nestle is investing £110 million in its Nescafe Dolce Gusto factory in the UK, creating 300 new jobs and tripling coffee capsule production. The investment will expand the factory, located in Tutbury in Derbyshire, and its workforce. It is the latest in a series of multi-million pound investments Nestle has made in the UK over the last five years.

 

These include £200 million to transform its confectionery factory inYork, £40 million to create a European centre of excellence for Nescafe Cappuccino in Cumbria, and most recently, £35 million to build a new water bottling factory in Buxton.

 

“We are creating our next generation of world class competitive manufacturing facilities,” says Paul Grimwood, chairman and chief executive of Nestle UK and Ireland. “We need to continue to innovate to remain ahead of the market and are committed to the ongoing modernisation of ourUKmanufacturing capabilities.” Nestle employs about 7,000 staff across 19 sites in theUK.

 

The factory workforce at Tutbury has grown from 160 to 500 employees since 2006 and will increase to 800 by 2013, following the expansion of the site. Some of the 300 new employees at Tutbury will form part of the first intake of the ‘Nestle Academy’. This new initiative will offer young people apprenticeships, graduate programmes and on the job training to help them build a lasting career with Nestle.

 

The factory in Tutbury is one of only two production sites for Nescafe Dolce Gusto coffee capsules in the world. The other is located in Girona, Spain.

 

The investment will equip the Tutbury factory with 12 new high speed production lines to triple its output. It currently produces about four million capsules a day. More than 90% of the capsules will be exported to more than 38 countries around the world. They will also be sold in the UK. Nestle has invested more than £100 million in the factory over the past five years to strengthen its position as a leading Nescafe production site.

 

Nestle manufactures a variety of iconic brands in the UK. These include: Kit Kat, the country’s number one selling biscuit, Quality Street confectionery, Nescafe soluble coffee, and Shredded Wheat cereal. The company had sales of SFr3.7 billion (£2.6 billion) in the UK in 2010. Nestle is one of the UK’s major food exporters, selling products worth more than £260 million each year to 50 countries around the world.

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Kraft Foods to Invest $100 Million to Expand in Russia


Kraft Foods plans to invest $100 million to more than double the capacity of its coffee production plant at Gorelovo in the Leningrad region of Russia. Kraft Foods, which owns the Jacobs and Maxwell House brands, is the second biggest player in the expanding Russian coffee market with a share of 19%, behind Nestle with 28%.

 

The investment will increase annual coffee production at Gorelovo to 16,900 tonnes in 2013 and to 23,000 tonnes by 2015, from a current level of 10,500 tonnes. Kraft Foods has already invested in excess of $150 million in developing the factory to date.

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Nestle Expands Russian Coffee Factory


Nestle has completed a SFr240 million (Eur195 million) expansion of its soluble coffee factory in Timashevsk, Russia. Located in the Krasnodar region, the site is Nestle’s largest soluble coffee factory in Europe. It is also the company’s biggest investment project in Russia so far.

 

The factory uses advanced freeze-dry technology to make Nescafe coffee products for consumption in the Russian market and for export to other Commonwealth of Independent States (CIS) countries. Nescafe is the leading soluble coffee brand in Russia; the world’s biggest market for soluble coffee.

 

The expansion of the Timashevsk site, announced in 2008, has equipped the factory to produce Nescafe Gold freeze-dried coffee from raw material processing through to packing. It will also produce other soluble coffee products including Nescafe Gold Mild, Nescafe Gold Strong, and Nescafe Montego.

 

The factory, which employs 1,200 people, was alreadyRussia’s first “full-cycle” production site for soluble coffee. It has produced Nescafe Classic coffee ever since the first phase of its construction was completed in 2005.

 

“This factory is a perfect example of our long-term commitment to Russia and its consumers. It highlights our ongoing investment in the country,” says Paul Bulcke, chief executive of Nestle. “We have invested more than one billion US dollars (around SFr885 million) into manufacturing and distribution facilities in Russia over the past 15 years.”

 

Russia plays an important role in Nestle’s European operations, particularly in central and eastern Europe. The company’s brands in the country include Comilfo, Nescafe, Mega, Maggi, Perrier and Purina.

 

Currently, Nestle Russia employs more than 10,000 people and operates 12 production sites, ten sales offices and ten distribution centres. In August this year, the company announced it will invest more than SFr38 million to double pet food production at its Purina PetCare factory in Russia’s Kaluga region. This followed an investment of SFr60 million in 2010 in a new factory for Maggi products in the Vladimir region. The first phase of construction is expected to be completed by the end of 2011.

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Sara Lee to Spin-off International Coffee and Tea Business


US-based food and beverage group Sara Lee has decided to spin-off its International Coffee and Tea business, rather than spinning off its North American business. At the start of the year, Sra Lee had been planning to spin-off its North American meats and frozen-desserts business.

“This transaction is more than a spin-off of one business segment – we are really separating a global company into two, independent pure-play companies, which adds complexity as well as opportunity,” explains Jan Bennink, executive chairman of Sara Lee. “As we began to get into the details of separating the two businesses, we determined there are greater efficiencies to be gained from spinning off the International Coffee business.”

Sara Lee plans to split into two publicly traded companies in early 2012.

Sara Lee is currently in the process of selling its North American Bakery business to Grupo Bimbo. The transaction is expected to close early in Sara Lee’s 2012 fiscal year.

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UK Fairtrade Sales Break £1 Billion Barrier


UK sales of Fairtrade products soared by 40% in 2010 to an estimated retail value of £1.17b compared with £836m in 2009. UK shoppers are continuing to embrace Fairtrade, showing no downturn on ethical values despite the tough economic times.

Figures released by the Fairtrade Foundation reveal that every day in the UK, some 9.3 million cups of Fairtrade tea, 6.4 million cups of Fairtrade coffee, 2.3 million chocolate bars, 530,000 cups of Fairtrade drinking chocolate and 3.1 million Fairtrade bananas are consumed.

Sales of Fairtrade chocolate confectionery have more than quadrupled in 2010 to an estimated retail value of £342m, making chocolate the leading Fairtrade product by value in the UK. Sales of Fairtrade drinking chocolate have nearly trebled to an estimated retail value of £34m.

Smaller categories of Fairtrade products are also showing growth – Fairtrade spices increased 30% over the last year, and over 1 million cosmetic products were sold. Sales of some categories have had flat or declining sales – for example, fresh fruit and flowers.

Every day in the UK, 3.1 million Fairtrade bananas are consumed.

“It is fantastic to break the first billion,” says the Fairtrade Foundation’s executive director, Harriet Lamb. “Fairtrade is going from strength to strength because the public want it, it makes business sense, and most importantly because it’s working for the millions of farmers, workers and their families who see Fairtrade as their lifeline in these tough times. They’ll be cheering to know that UK shoppers and businesses still care. The challenges of global poverty and inequality are more serious than ever, especially for the farmers who grow the coffee, tea, bananas, rice or cotton on which we depend here in the UK. This first billion shows the potential for change. If the public, businesses and producers can now build on that momentum, Fairtrade could get to £2 billion by the end of 2012 . It’s ambitious, but it really would be game changing.”

Support for Fairtrade in local communities continues to surge in the UK, where the Fairtrade Mark is recognised by 74% of the public. Vibrant community campaigns in more than 500 Fairtrade Towns across the country, along with thousands of schools and universities, faith groups, are helping the public make a personal and local connection to Fairtrade.

Responding to that public support, major company moves to Fairtrade which have contributed to 2010 growth figures include Cadbury Dairy Milk, all Starbucks espresso-based coffee, Nestle’s four-finger KitKat, Sainsbury’s tea, coffee and sugar, Morrison’s roast and ground coffee, Tesco Finest Tea and Tate & Lyle retail sugar. And the growth is set to continue throughout 2011 with Ben & Jerry’s still rolling out its commitment to make every ingredient used, from sugar to nuts to cocoa, Fairtrade that can be Fairtrade in the UK by the end of 2011, and Green & Black’s conversion of its entire range of chocolate bars and beverages in the UK to 100% Fairtrade, by the end of this year.

Fresh commitments include the Co-operative’s announcement to convert all commodities that can be Fairtrade to Fairtrade by 2013, starting with bananas; Waitrose’s conversion of the majority of Waitrose Tea to Fairtrade as well as several products in the Duchy Originals range; and the spice and herb company Schwartz’s announcement that it is launching four new Fairtrade herbs – basil, mint, marjoram and dill – later in the year. Meanwhile, Aldi is launching its first Fairtrade product range, including bananas, coffee, tea and chocolate; and Sainsbury’s will offer a new coffee for Comic Relief from the Democratic Republic of Congo, aimed at helping farmers in a conflict-ridden land.

The pioneering Fairtrade companies have also introduced new products including the first Fairtrade raisins from Afghanistan launched by Tropical Wholefoods to support small-scale farmers in the Parwan province.

Against a picture of overall growth, however, some product categories have struggled in the midst of recession. In particular, Fairtrade cotton sales have declined in the past year, as ethical ranges struggle to compete with a continuing trend for cheap, fast fashion.

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JBS Group Targets Sara Lee


The world’s largest beef producer JBS Group of Brazil is reported to be preparing an offer of $21 a share for Sara Lee, which would value the US-based food and beverage group at about $13.4b. Sara Lee is believed to have already rejected an offer of about $11b from JBS.

If successful this time, JBS is expected to break up Sara Lee. Private equity group Blackstone is likely to be interested in Sara Lee’s coffee business.

The acquisition of Sara Lee would be in line with JBS’s geographical expansion strategy. The Brazilian beef processor has been expanding by acquisitions in the US and Europe. In North America, JBS acquired meat processor Swift & Co in 2007 and part of Smithfield Foods in 2008. The following year it bought poultry producer Pilgrim’s Pride.

Sara Lee’s North American meat retail business had sales of $2.8b last year, which would be equivalent to 15% of JBS’s total revenue.

Sara Lee recently sold its European personal care business to Unilever for £1b and has been divesting in order to focus on its coffee and meat operations.

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Kraft Foods Opens $14 Million Sugar Confectionery R&D Centre in Europe


Kraft Foods has opened a European Gum and Candy Research & Development Centre at Eysins in Switzerland. The $14m state-of-the-art facility will focus on innovation and new product development for many of Kraft Foods’ confectionery brands, including the world’s leading gum brand Trident and the world’s leading candy brand Halls, as well as other brands like Bassetts, Carambar, The Natural Confectionery Co, Trebor and V6.

Worth $23 billion annually, the global gum market has grown by almost a quarter since 2005, and is one of the fastest-growing categories within confectionery. Kraft Foods has a number of gum brands with leading positions in markets across Europe, such as Hollywood in France, Trident in Spain, Greece and Portugal, and Stimorol in Denmark and Switzerland.

The new centre will be home to a team of product and package developers and quality experts who are responsible for breakthrough gum and candy innovation, such as the new Fresh & Clean gum product which is currently launching in markets across Europe. As the European Centre for innovation and technology for gum and candy, the team based in Eysins will collaborate closely with the Kraft Foods Global Gum & Candy Centre of Excellence, based in New Jersey in the US, to drive innovation and new technologies that support the company’s European gum and candy business and global category growth platforms.

The Center in Eysins joins 14 other Kraft Foods R&D Centres supporting the company’s global businesses including beverages, biscuits, cheese, chocolate, coffee and gum and candy.

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McDonald’s Aims For Bigger Share of UK High Street Coffee Market


In response to rising coffee sales, McDonald’s is extending its freshly-ground coffee range with the addition of sustainably-sourced Espresso. The Rainforest Alliance certified beverage marks another step in McDonald’s journey to transform its coffee business in the UK by offering freshly-ground, sustainably-sourced coffee at affordable prices.

Espresso is the latest addition to McDonald’s Full BEAN coffee range, now available at McDonald’s 1,200 restaurants across the UK. The move marks a bid to grow coffee sales beyond breakfast, and take a greater slice of the high street coffee market, which is predicted to grow to £2 billion by 2012.

Despite an overall drop in high street coffee sales during the recession, McDonald’s has seen the number of cups sold climb by 39% over the last two years since re-launching its coffee range in 2007. Last year alone, McDonald’s sold 84 million cups of coffee – more than one cup for every adult in the UK. McDonald’s sales of freshly-ground coffee account for more sales than any other brand on the high street, including those of the major coffee chains.

Each Espresso will be brewed using 100% Arabica coffee beans developed using the latest in sustainable farming techniques. McDonald’s already serves freshly-ground Lattes and Cappuccinos as part of its Full BEAN range, and uses only semi-skimmed organic British milk in all hot drinks.

McDonald’s has become the largest retailer of coffee on the high street sourced from farms that meet sustainable standards. The introduction of Espresso is part of a larger commitment by McDonald’s to support sustainable food production. It spends £490 million pounds a year on food, much of which comes from the UK and Ireland including semi-skimmed organic milk, free range eggs, and beef from farmers that meet strict standards on animal welfare and environmental practices.

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Nestle to Invest SFr500 Million in Coffee Projects


In addition to the SFr200m (Eur150m) invested over the past ten years, Nestle will invest SFr500m in coffee projects by 2020. This includes an investment of SFr350m for the Nescafe Plan, which aims to bring under one umbrella Nestle’s commitments on coffee farming, production and consumption. The just launched Nescafe Plan contains a set of objectives which will help Nestle further optimise its coffee supply chain.

The Rainforest Alliance, an international non-governmental organisation, will support Nestle together with other partners of the Sustainable Agriculture Network (SAN) and the coffee association, 4C, in meeting the Nescafe Plan objectives related to farming.

Over the next five years, Nestle will double the amount of Nescafe coffee bought directly from farmers and their associations, eventually purchasing 180,000 tonnes of coffee from around 170,000 farmers every year. With the support of the Rainforest Alliance and the 4C Association, all directly purchased green coffee will meet the internationally-recognized 4C sustainability standards by 2015. In addition, 90,000 tonnes of Nescafe coffee will be sourced according to the Rainforest Alliance and Sustainable Agriculture Network (SAN) principles by 2020.

Under the Nescafe Plan, Nestle will distribute 220 million high-yield, disease-resistant coffee plantlets to farmers by 2020. This helps farmers to rejuvenate their plantations, thus multiplying the yield on existing land and increasing farmers’ income.

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Generation Brew – Young British Coffee Drinkers Not Satisfied With a Cup of Instant


New research from YouGov SixthSense reveals that a generational divide exists in UK coffee consumption. 83% of over 55s has drunk a cup of instant coffee in the last month compared to 67% of 18-24 year olds. Younger generations are more likely to choose alternatives such as a cappuccino (43%), a latte (39%) and an americano (22%).

Commenting on the findings in the report, research director for YouGov SixthSense, James McCoy, says: “What we are seeing here are two very different coffee drinking cultures informed by two different consumer experiences. The younger generation has grown up with Starbucks, Costa, Cafe Nero etc. offering a more varied and comprehensive coffee menu. Also, young people are used to meeting with their friends at places like coffee shops where conversation can be carried out over a freshly brewed coffee, Friends-style. The previous generation hosted more and, therefore, was more inclined to resort to whatever was in the kitchen cupboard if and when a guest requested coffee.”

Starbucks’ recent foray into the instant coffee market reflects an industry-wide push to produce something closer to the taste of freshly brewed coffee in instant coffee form. James McCoy adds: “It is possible that moves by coffee house chains into the instant sector might see a slight rebalance in favour of instant in the home.”

Londoners exhibit a more discerning taste in coffee compared to drinkers in other parts of the UK – 12% of Londoners say that they regularly drink ‘freshly brewed coffee’ for breakfast during the week, compared to Wales (6%), the Midlands (5%) and Northern Ireland (1%).  A smaller proportion of Londoners (69%) has drunk a cup of instant coffee in the past month than anywhere else in the UK, while the North (84%) is the region with the most drinkers of instant brands such as Nescafe, Kenco etc.

Coffee’s appeal seems to derive from its image as a ‘stimulating’ drink, with 67% of consumers choosing to label it as such. In contrast, 79% of respondents view regular tea (ie not herbal) as traditional, while tea is also synonymous with Britishness for 63% of UK adults. Herbal tea provides a calming effect with respondents using terms like relaxing (53%), soothing (36%) and healthy (55%) to describe it. Almost half of respondents (44%) say herbal tea is a good alternative to standard tea.

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Nestle Investing in Greenfield Factory in Russia


Nestle Rossiya is investing SFr60m (Eur45m) in the construction of a greenfield factory in the Vyazniki district of Vladimir region (some 300 kilometers east of Moscow) to produce a wide range of culinary products under the Maggi brand. When the first phase of construction is completed in the third quarter of 2011, the new plant will produce more than 30,000 tons of Maggi products to meet the growing demand for these products in Russia and CIS countries. The state-of-the-art factory will create 500 new jobs.

The development of the new factory is part of Nestle’s strategy to consolidate its production operations in Russia. After the investment project is completed, Nestle will transfer its culinary production out of the current site located in the town of Zhukovsky, in the Moscow region, to concentrate operations at the newly constructed plant.

With sales of around SFr2b in 2009 in Russia, Nestle is market leader in coffee, chocolate, infant cereals and culinary products.

The Zhukovsky factory will then be fully focused on ice-cream production and will be expanded with the transfer of production lines from Nestle’s Kuban factory located in Krasnodar region. Coffee production at Nestle Kuban will subsequently be expanded after the launch of freeze-dry technology in 2011.

“We believe in Russia’s huge long-term potential, that’s why we continue with Nestle investments into the development of local production facilities. With the new factory in Vladimir region Nestle opens a new chapter of Maggi business and sets a new standard for technology in culinary production in Russia,” says Stefan De Loecker, chief executive of Nestle Rossiya. “Our new investment projects and optimisation of production facilities will allow the company to use existing resources held by the Nestle group of companies in Russia with maximum efficiency, as well as to develop successful brands and strengthen positions in the Russian culinary and ice cream markets.”

Over the past 15 years, Nestle has build up a strong presence in Russia. The new plant will be the group’s 14th production site in Russia. With double-digit growth rates and sales of around SFr2b in 2009 in Russia, Nestle is market leader in coffee, chocolate, infant cereals and culinary products.

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