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East Coast Dockworkers End Strike After Tentative Agreement

East Coast dockworkers reach a tentative wage agreement, ending a strike that threatened U.S. agricultural exports and disrupting supply chains.

Introduction: Strike Ends with Tentative Wage Agreement

In a significant development for the U.S. agricultural and shipping industries, East Coast dockworkers ended their strike after reaching a tentative wage agreement with the United States Maritime Alliance (USMX). The agreement, announced in a joint statement by USMX and the International Longshoremen’s Association (ILA), marks a turning point in negotiations that have been ongoing for weeks. The two sides have agreed to extend their current contract while continuing discussions to finalize a new deal by January 15, 2025. The breakthrough in negotiations, first reported by The Wall Street Journal, came when USMX offered a 62% wage increase over six years.

The Impact of the Strike on Agriculture and Food Exports

The dockworkers’ strike had raised significant concerns across the agricultural sector, particularly among producers and exporters who rely heavily on East and Gulf Coast ports. These ports handle approximately 40% of the U.S.’s containerized agricultural exports, making them a critical component of the nation’s food and agricultural supply chains. Agricultural groups, alarmed by the potential disruptions, had even written to President Joe Biden to emphasize the severe consequences of prolonged strikes.

Mike Seyfert, President of the National Grain and Feed Association, explained the dire situation that many ag exporters found themselves in. “If containers are the majority of your export business and the majority of that’s going through the East Coast, you’re now in a really tough situation,” Seyfert told Agri-Pulse during the strike. “Your supply chain’s been shut down — the supply chain you built your operation around — and now you’ve got to try and find an alternative market. That’s not always an easy thing to turn on a dime to do.”

The disruptions caused by the strike had a ripple effect across the food and ag industries, as finding alternative shipping routes or markets to maintain export flows is a complex and time-consuming process.

Challenges Ahead: Automation and Container Royalties

While the tentative wage agreement represents a significant step forward, difficult issues remain unresolved. The most contentious topics left to negotiate include the role of automation at ports and container royalties. Automation has been a hotly debated issue in labor negotiations, with dockworkers concerned about the impact it will have on job security and working conditions. Port operators, on the other hand, argue that automation is necessary to improve efficiency and remain competitive in the global shipping market.

Container royalties, which refer to payments made to dockworkers based on the number of containers moved through a port, are another sticking point. These royalties have been a long-standing feature of dockworkers’ compensation, but the two sides will need to come to an agreement on how they are structured in future contracts.

The wage increase is a significant win for dockworkers, but the negotiations are far from over. The next three months will be crucial in determining how the U.S. maritime industry adapts to ongoing labor challenges and the evolving needs of global trade.

Agricultural Groups Welcome the Resolution

Agricultural industry leaders welcomed the news of the tentative agreement and the end of the strike. The reopening of East and Gulf Coast ports allows exporters to resume their operations and restore stability to the supply chain. Mike Steenhoek, Executive Director of the Soy Transportation Coalition, emphasized the importance of reliable port operations, particularly in light of current economic challenges and the nation’s efforts to recover from the devastation caused by Hurricane Helene.

“Having a reliable system of ports is clearly in the best interest of the American farmer,” Steenhoek said. The timing of the strike, he noted, was “particularly unfortunate,” as it came during a period when the agriculture industry was already grappling with economic challenges. The ports’ reopening comes as a relief to many in the sector who feared longer-term disruptions to their export operations.

Looking Ahead: A Critical Time for U.S. Ports

While the strike has ended for now, the issues left unresolved in the negotiations highlight the importance of continued dialogue between port operators and labor unions. The role of automation in the future of U.S. ports is particularly critical, as technological advancements have the potential to reshape the industry. The balance between maintaining jobs and improving efficiency will be a key point of contention as the parties work toward finalizing a long-term contract.

For the U.S. agricultural sector, the reopening of the ports provides an opportunity to stabilize supply chains and ensure that exports can move efficiently to international markets. However, the threat of future labor disruptions remains, and stakeholders will need to stay engaged in the process to ensure that the interests of farmers, exporters, and workers are all adequately addressed.

Conclusion: A Temporary Reprieve for the U.S. Agricultural Supply Chain

The tentative agreement reached between East Coast dockworkers and USMX has brought an end to the strike, allowing port operations to resume and providing much-needed relief to U.S. agricultural exporters. While the wage increase is a significant achievement for workers, the next phase of negotiations will focus on more complex issues like automation and container royalties.

For now, agricultural and food producers can breathe a sigh of relief as supply chains return to normal. However, as the January 15 deadline for a new contract approaches, the industry will be watching closely to see how these critical negotiations unfold. The resolution of these issues will not only shape the future of U.S. ports but also have far-reaching implications for the agricultural sector and global trade.

Posted on Author Categories Produce

Martina Müller Appointed Managing Director of FrieslandCampina Iberia, Italy, and France

Martina Müller takes on the role of managing director at FrieslandCampina Iberia, Italy, and France, focusing on expanding the business in key markets and enhancing sustainability efforts.

Introduction: Martina Müller Takes Leadership of FrieslandCampina in Key European Markets

FrieslandCampina, one of the largest dairy companies in the world, has announced the appointment of Martina Müller as the new managing director for Iberia, Italy, and France. Starting her role in October, Müller brings a wealth of experience to the table, having successfully driven strategic partnerships with major clients such as McDonald’s and Burger King in her previous role at FrieslandCampina Professional. With this new appointment, Müller is tasked with further expanding FrieslandCampina’s footprint across these critical European markets.

A Proven Leader in the Dairy Industry

Müller’s background showcases her expertise in business administration and strategic marketing, gained from over 19 years of experience working with major multinational companies. Having studied at IE Business School and London Business School, her educational background laid a strong foundation for her career in global companies like Mondelez, Pepsico, and Reckitt-Benckiser.

At FrieslandCampina, Müller previously served as the commercial director QSR and coffee & tea for the professional division, where she was responsible for managing key accounts and fostering long-term partnerships that have significantly benefited the company. Her success in this role positioned her well for her new responsibilities as managing director of FrieslandCampina’s operations in Iberia, Italy, and France.

Strategic Focus: Operational Efficiency and Market Expansion

In her new position, Müller will focus on several key areas to ensure the continued success and growth of FrieslandCampina in the region. These include:

1. Enhancing Operational Efficiency

One of Müller’s primary objectives is to improve operational efficiency across the company’s supply chain and distribution networks in the Iberian Peninsula, Italy, and France. By streamlining processes, Müller aims to ensure that FrieslandCampina remains competitive in the fast-paced dairy industry.

2. Expanding Presence in Strategic Channels

Another important focus for Müller will be the expansion of FrieslandCampina’s presence across multiple distribution channels. She will work to strengthen the company’s market positioning in retail, foodservice, and professional markets by building on established brands such as Millán Vicente, Recién Cortado, Castillo de Holanda, and Campina in the cheese segment.

FrieslandCampina is already a trusted supplier for major retail chains across Southwest Europe, and Müller’s role will involve consolidating this presence while also identifying new growth opportunities in the region.

3. Adapting to Changing Market Demands and Sustainability Trends

Müller will also prioritize adapting FrieslandCampina’s business strategies to changing market demands and growing consumer interest in sustainability. As part of a company that has long been committed to sustainable dairy production, Müller will be tasked with ensuring FrieslandCampina’s operations align with the latest environmental and social governance (ESG) standards.

She is expected to lead initiatives that will contribute to FrieslandCampina’s overarching goal of becoming a climate-neutral company by 2050.

FrieslandCampina’s Presence in Southwest Europe

FrieslandCampina boasts a robust portfolio in Southwest Europe, where the company operates several well-known brands across different dairy categories. Among the most recognized brands are:

  • Millán Vicente, Castillo de Holanda, Recién Cortado, and Campina in the cheese category.
  • Debic, which supplies creams and butters for professional chefs and foodservice operators.
  • Chocomel, a popular milkshake brand known for its rich, chocolatey flavor.
  • Valess, a meat alternative product that caters to the growing demand for plant-based foods.

Through these brands, FrieslandCampina has solidified its position as a leader in the dairy and foodservice industries, and Müller’s leadership will be instrumental in driving the company’s future success.

Strategic Partnerships and Innovation

One of Müller’s key strengths is her ability to build and maintain strategic partnerships, a skill she honed in her previous role managing large accounts at FrieslandCampina Professional. Her success in collaborating with McDonald’s, Burger King, and other major foodservice operators has had a lasting impact on the company’s growth.

In her new role, Müller will likely continue to leverage her strategic expertise to foster partnerships that align with FrieslandCampina’s growth objectives. This approach will be essential as the company seeks to expand its product offerings and enter new markets across Europe.

Looking Ahead: The Future of FrieslandCampina Under Müller’s Leadership

As FrieslandCampina moves forward under Martina Müller’s leadership, the company is well-positioned to continue its expansion in Iberia, Italy, and France. With Müller’s proven track record in business administration, marketing, and strategic partnerships, FrieslandCampina will focus on enhancing operational efficiency, growing its presence in key distribution channels, and adapting to emerging sustainability trends.

The dairy industry is evolving rapidly, with consumers demanding healthier, more sustainable options. Müller’s expertise in understanding these trends will be crucial in guiding FrieslandCampina’s strategy, ensuring the company remains a leading player in the global dairy market.

Conclusion: A New Chapter for FrieslandCampina

Martina Müller’s appointment as managing director of FrieslandCampina Iberia, Italy, and France marks a significant milestone for the company. Her extensive experience, strategic vision, and focus on operational efficiency will drive the company’s growth in these vital regions. As FrieslandCampina continues to expand its presence in Southwest Europe, Müller’s leadership will be key in navigating the complexities of the market and adapting to the ever-evolving demands of consumers.

Mondelēz Acquires Stake in Urban Legend to Expand Healthier Pastry Offerings

Mondelēz acquires a minority stake in Urban Legend, a UK-based bakery known for healthier doughnuts and pastries. Learn how this partnership supports the better-for-you trend.

Introduction: Mondelēz Backs Healthier Bakery Brand Urban Legend

Global confectionery and snacking giant Mondelēz has acquired a minority stake in Urban Legend, a UK-based bakery brand known for its healthier take on doughnuts and pastries. This investment comes as part of Mondelēz’s broader strategy to expand into the growing better-for-you bakery market, focusing on reduced sugar and calorie options. Urban Legend’s innovative approach to healthier indulgences aligns perfectly with consumer demand for mindful, yet delicious, treats.

Urban Legend’s Mission: Healthier Indulgence Without Compromise

Founded in 2021 by Anthony Fletcher, former CEO of the healthy snack brand Graze, Urban Legend was born out of the desire to create indulgent bakery products that offer significantly reduced sugar, fat, and calories. Through extensive recipe development and novel technology, the brand has achieved reductions of 30% to 75% in high fat, sugar, and salt (HFSS) content, while slashing calorie counts by up to 200 per pastry.

Urban Legend’s current product portfolio includes 12 varieties of doughnuts and pastries, which are already available in 200 stores across the UK, housed in standalone bakery cabinets.

“Our combination of novel technology and extensive recipe development enabled us to be the first ones to deliver iconic doughnuts and pastries with less sugar, fat, and calories,” Fletcher explained.

Mondelēz’s Investment in the ‘Better-for-You’ Fresh Bakery Category

The decision by Mondelēz to invest in Urban Legend through its SnackFutures Ventures reflects a growing focus on the better-for-you trend in the bakery and pastry sector. Richie Gray, global head of SnackFutures Ventures, emphasized the company’s goal to expand into this adjacent market as consumers become more health-conscious.

“Urban Legend is well positioned to disrupt the UK’s fresh bakery category,” Gray stated. “We’re excited about the brand’s growth potential, focus on ‘mindful indulgence’ and the opportunity to help Mondelēz build capability in the fast-growing ‘better-for-you’ fresh bakery space.”

This minority stake follows Mondelēz’s recent acquisition of Chinese frozen cakes and pastries brand Evirth, demonstrating its intent to diversify and expand its presence in the bakery sector on a global scale.

Scaling Up: Urban Legend’s Expansion Plans

The partnership with Mondelēz is expected to provide Urban Legend with the resources and expertise needed to scale the business across the UK, Europe, and potentially worldwide. Fletcher noted that the investment would allow Urban Legend to further its mission of delivering healthier baked goods to a broader market, particularly as the demand for better-for-you products continues to grow.

Urban Legend has raised £13 million since its 2021 launch, including a £3 million investment round earlier this year, led by Samworth Brothers’ investment arm, Perfect Redd. The brand also boasts high-profile investors, including former England football captain Harry Kane and Welsh rugby coach Warren Gatland.

The Growing Consumer Demand for Healthier Pastries

The increasing popularity of healthier alternatives in the food industry is driving brands like Urban Legend into the spotlight. As consumers seek indulgent treats that don’t compromise on taste but are lower in sugar, fat, and calories, companies are racing to meet this demand. This is particularly true in the bakery and pastry sector, which traditionally has been associated with indulgence and high-calorie products.

Richie Gray pointed out that pastries are “adjacent to chocolate” in terms of indulgence, making them a natural area of expansion for Mondelēz as it seeks to align with the better-for-you movement. This strategy comes at a time when consumers are more focused on health-conscious choices, looking for guilt-free indulgence that doesn’t sacrifice taste.

How SnackFutures Invests in Innovation

Mondelēz’s investment in Urban Legend is part of its broader SnackFutures Ventures initiative, which focuses on identifying and growing emerging brands in the snacking and confectionery industries. SnackFutures typically looks for companies that are either profitable or on a clear path to profitability, as noted in discussions with Richie Gray.

The venture arm has placed a strong emphasis on innovation, particularly in categories that have proven difficult to disrupt. Fletcher’s background as a scientist and advocate for well-being uniquely positions Urban Legend to succeed in this space. The company’s ability to balance indulgence with healthfulness sets it apart from competitors in the bakery industry.

“As a scientist and advocate for well-being, I saw a need and opportunity to tackle innovation in one of the toughest categories,” Fletcher explained, referring to the challenges of developing healthier bakery products.

The Future of the ‘Better-for-You’ Bakery Market

As the demand for healthier snacks and pastries continues to grow, companies like Urban Legend are well-positioned to lead the charge in the better-for-you segment. Mondelēz’s investment signals a growing commitment to this market, as the snacking giant seeks to meet consumer preferences for mindful indulgence while maintaining the flavors and experiences that make bakery products so popular.

Urban Legend’s ability to deliver on this promise with lower HFSS and reduced calories places it at the forefront of the movement toward health-conscious eating, without compromising on the indulgence factor that consumers crave.

Conclusion: A Strategic Partnership for Future Growth

The acquisition of a minority stake in Urban Legend by Mondelēz represents a strategic move to expand into the better-for-you bakery sector, a category that is experiencing significant growth due to rising consumer demand for healthier options. By partnering with Urban Legend, Mondelēz is poised to capitalize on the brand’s innovative approach to healthier indulgence, while offering Urban Legend the resources and support needed to scale its business globally.

As the bakery industry evolves to meet health-conscious trends, brands like Urban Legend are not only leading the way but also shaping the future of indulgent, yet mindful, eating. This partnership marks a pivotal moment for both companies as they work together to redefine the fresh bakery market.

How the U.S. Port Strike Could Cripple the US Economy & Distrupt Global Trade

A U.S. port strike threatens to cripple the American economy, disrupt global trade, and cause long-lasting ripple effects worldwide. Discover the potential consequences in this analysis.

The U.S. economy is heavily reliant on its port system for the smooth flow of goods domestically and internationally. A major strike at these critical nodes of commerce could cause significant disruptions, not only affecting the U.S. but also sending ripples throughout the global economy. This article delves into the potential impacts of a port strike in the U.S., examining both immediate and long-term effects on the national economy and global trade.

The U.S. Port System: A Pillar of Commerce

Ports in the United States handle roughly $6 trillion worth of imports and exports annually, serving as key arteries for the flow of goods. From automobiles to electronics, textiles, and food products, these goods come from and go to every corner of the world. Major ports like Los Angeles, Long Beach, and New York/New Jersey play pivotal roles in the supply chain, moving goods to and from Asia, Europe, and Latin America.

Any disruption to this critical infrastructure due to a strike would have immediate and widespread consequences, halting the movement of goods, disrupting supply chains, and impacting industries ranging from retail to manufacturing.

Immediate Economic Impact on the U.S.

In the short term, a port strike could bring certain sectors of the U.S. economy to a standstill. Here are several key areas that could be hit hard:

1. Supply Chain Disruptions

A port strike would immediately disrupt supply chains. Factories would struggle to obtain raw materials, and retailers might run out of stock for high-demand products. This would lead to production slowdowns, idle workers, and eventually layoffs, as companies could be forced to reduce labor costs due to lack of materials.

For example, during the 2015 West Coast port slowdown, losses were estimated at $2 billion per day, impacting sectors like agriculture, automotive, and electronics. With the global supply chain more fragile post-pandemic, the economic damage could be even worse today.

2. Rising Consumer Prices

As goods become scarce due to delays, the prices of imported products would increase. This would further exacerbate inflation, which remains a critical concern in the U.S. economy today. The port strike could trigger price surges in essential goods like food, clothing, and household electronics, placing additional financial strain on American consumers.

3. Unemployment and Lost Wages

A port strike would also directly affect the workers who rely on the ports for their livelihoods. From dock workers to truck drivers, the ripple effects would spread across various industries. These workers could face weeks or months without income, leading to increased unemployment and further weakening local economies that depend on port operations.

In a worst-case scenario, a prolonged strike could lead to mass layoffs in the retail, manufacturing, and transportation sectors, resulting in broader social and economic distress.

Long-Term Impact on U.S. Economic Stability

Beyond the immediate disruptions, a prolonged port strike could have more enduring consequences for the U.S. economy:

1. Loss of Trade Competitiveness

Extended disruptions in the U.S. port system could cause international trading partners to shift their supply chains elsewhere. Nations in Europe and Asia may look to alternative suppliers or ports to avoid the uncertainty tied to U.S. labor disputes, potentially causing a permanent loss of market share for American exporters.

For industries like agriculture and high-tech manufacturing, this could result in billions of dollars in lost revenues, as international buyers turn to other markets for goods that the U.S. had traditionally supplied.

2. Undermining Business Confidence

A port strike, especially one with widespread and prolonged impacts, would significantly erode business confidence in the U.S. economy. Domestic and international companies might rethink investment plans, choosing to relocate or expand operations in countries with more stable infrastructure. Such shifts could reduce future U.S. job growth and lower economic output, with the consequences felt for years to come.

3. Strain on Transportation and Logistics Industries

A strike at U.S. ports would also place additional strain on other segments of the transportation and logistics industry, such as rail and air freight, as companies scramble for alternatives to move goods. This increased demand could lead to higher freight costs, further amplifying price pressures across industries.

While companies could turn to Canada or Mexico to bypass U.S. ports, this would only be a partial solution, as these alternatives would quickly be overwhelmed by the extra demand.

Global Ripple Effects of a U.S. Port Strike

The effects of a U.S. port strike would not be confined to the United States. The interconnectedness of the global economy means that any disruption in the U.S. supply chain would have significant international repercussions. Here are some of the key ways the global economy could feel the pinch:

1. Disruptions to Global Supply Chains

Many multinational corporations rely on U.S. ports for the timely movement of their goods. A prolonged strike could disrupt global supply chains, leading to delays in manufacturing plants around the world. For example, companies in Asia that depend on U.S.-sourced components may face production bottlenecks, delaying product releases and increasing costs.

As U.S. companies miss deadlines for fulfilling orders, international customers could face shortages, leading to inventory imbalances and production delays in sectors such as automotive, electronics, and pharmaceuticals.

2. Impact on Emerging Markets

Emerging markets that heavily rely on exports to the U.S. would be particularly vulnerable to a port strike. Countries like China, Mexico, and India could see a significant drop in their export volumes, leading to economic instability and job losses in those regions.

Moreover, these disruptions could lead to trade imbalances, currency fluctuations, and a slowdown in foreign direct investment, hampering long-term growth prospects in emerging markets.

3. Increased Shipping Costs Worldwide

With U.S. ports offline or operating at reduced capacity, shipping companies might need to reroute goods through more distant ports, causing shipping times to balloon. These delays, combined with the increased cost of fuel and labor, could drive up global shipping costs, inflating prices for consumers worldwide.

For countries that import large volumes of goods from the U.S., this could translate into increased costs for everything from food to electronics, adding to inflationary pressures already felt in many global economies.

The Role of Labor Negotiations

At the heart of this potential crisis lies the fragile state of labor negotiations in the U.S. port system. Union leaders are demanding better pay, working conditions, and benefits for port workers, while port authorities and shipping companies are pushing back, citing economic pressures and rising operational costs.

Resolving this labor dispute is crucial to avoiding a prolonged strike. Both sides must recognize that a shutdown of U.S. ports could devastate not only local economies but also lead to long-term damage to global trade and prosperity.

Conclusion: A Crisis with Global Consequences

A U.S. port strike holds the potential to cause significant damage to the American economy, stalling supply chains, increasing inflation, and causing mass layoffs. However, the broader impact on global trade could be even more severe, disrupting supply chains, destabilizing emerging markets, and driving up shipping costs.

The world is more interconnected than ever, and a breakdown at any point in the system, especially in a major global economy like the U.S., would send shockwaves worldwide. It is in everyone’s best interest to reach a resolution and prevent the ripple effects from deepening into a prolonged economic crisis.

Shanghai Containerized Freight Index Drops 43% in Q3: A Detailed Analysis

The Shanghai Containerized Freight Index (SCFI) has seen a dramatic 43% drop in Q3 2024, marking the largest non-pandemic decline since 2009. Explore the factors behind this fall and its impact on the shipping industry.

Introduction: A Significant Drop in the SCFI

The Shanghai Containerized Freight Index (SCFI) experienced a sharp decline in the third quarter of 2024, falling by 43%, according to Niels Rasmussen, Chief Shipping Analyst at BIMCO. This significant drop marks the largest third-quarter decline in a non-pandemic year since the SCFI was launched in October 2009. The SCFI, which measures spot container rates for container loading in Shanghai, serves as a key indicator of supply and demand within the shipping industry.

Rasmussen’s analysis highlights that while this decline is substantial, it is only exceeded by the sharp drop in 2022, when the end of a 24-month cargo volume boom, driven by pandemic-induced high consumer spending, caused a rapid decline in volumes and spot rates.

Understanding the SCFI: An Indicator of Supply and Demand

The SCFI is a crucial metric for understanding the supply and demand balance in the container shipping industry. Spot container rates, which carriers quickly adjust in response to market conditions, provide insights into the health of the shipping market. When capacity utilization is high, spot rates tend to increase, and when utilization is low, spot rates fall. Contract rates, on the other hand, tend to respond more slowly to these market shifts.

In the third quarter of 2024, the SCFI experienced its largest non-pandemic drop, reflecting the current state of the market. Freight rates on key routes—particularly those to Europe, the Mediterranean, the US West Coast, and the US East Coast—have seen significant declines.

Key Routes See Major Declines

Freight rates to several major trade destinations have seen considerable reductions during Q3:

  • Europe and the Mediterranean: Spot rates have dropped nearly 55%, with average rates down approximately 20%.
  • US West Coast and East Coast: Spot rates have fallen by about 40%, while average freight rates have declined by 20%.

These declines in rates signal a weakened demand for shipping services, particularly on routes to key markets. The drop in rates suggests that capacity utilization has decreased, leaving shipping companies to adjust their pricing strategies in response to reduced demand.

China Containerized Freight Index (CCFI) Also Falls

In addition to the SCFI, the China Containerized Freight Index (CCFI), which measures average freight rates for containers loading across China, also experienced a significant drop during the third quarter of 2024. The CCFI fell by 19%, marking the worst third-quarter performance in a non-COVID year since 2009. Similar to the SCFI, the CCFI’s decline reflects the broader challenges the shipping industry is facing as demand weakens on key global trade routes.

Stable Time Charter Rates Amid Declining Freight Rates

Interestingly, while spot and average freight rates saw substantial declines, time charter rates have remained relatively stable throughout the third quarter. Historically, time charter rates and freight rates tend to move together, but this divergence can be attributed to limited ship availability and the continued impact of Red Sea rerouting on demand.

Rerouting through the Red Sea has absorbed about 10% of the global fleet, supporting time charter rates even as freight rates decline. Additionally, upcoming changes to global shipping alliances may further increase demand for ships as carriers adjust their service plans.

Factors Behind the Decline: Early Peak and Lower Bunker Prices

Several factors contribute to the adverse development in third-quarter freight rates. One key driver is the earlier-than-normal peak in cargo volumes, which resulted in weaker demand as the quarter progressed. Lower bunker prices, which reduce operational costs for carriers, may have also played a role in lowering rates during this period.

Another contributing factor is the recent port strikes on the US East Coast and Gulf Coast. While these strikes may provide temporary relief by boosting rates to these markets, they are not expected to have a long-lasting impact on the overall indices.

Long-Term Concerns for the Shipping Industry

Despite the SCFI and CCFI still being 140% and 90% higher than last year, there are growing concerns about the long-term sustainability of current freight rates. Rasmussen emphasizes that the potential release of the 10% of the fleet currently rerouted through the Red Sea, combined with fleet growth expected to reach nearly 7% in 2025, could exacerbate the supply-demand imbalance.

“Medium- to long-term freight rate development must be a concern for carriers, especially if ships can return to the Red Sea. The 10% of the fleet that has been absorbed by the rerouting will at some point be released and add to supply growth,” Rasmussen notes. This additional supply, coupled with limited demand growth, could put further pressure on rates in the coming years.

Conclusion: A Challenging Outlook for the Shipping Industry

The sharp drop in the SCFI during Q3 2024 highlights the challenges the global shipping industry is currently facing. With declining demand on key trade routes, carriers have been forced to lower spot rates significantly. While time charter rates have remained stable due to limited ship availability and rerouting through the Red Sea, the long-term outlook remains uncertain as fleet growth and shifting global alliances are likely to impact future rates.

As the shipping industry continues to adjust to these evolving market conditions, carriers will need to monitor demand closely and make strategic decisions to manage capacity and pricing effectively. The coming months will be crucial in determining whether rates stabilize or continue to decline as new challenges emerge.

Hard Candy Market: Innovation, Value, and Consumer Preferences in 2024

Explore how the hard candy market is evolving in 2024, with rising consumer demand for value, innovation, and better-for-you options despite inflationary pressures.

Overview of the Hard Candy Market in 2024

Hard candy remains a beloved treat, and despite rising inflation and increasing costs, consumers continue to indulge in the category. However, recent market trends indicate a shift in consumer behavior, with many seeking value and healthier options. Perfetti Van Melle USA’s non-chocolate candy category director, Chris Borges, highlights this shift, particularly in the lollipop segment, where consumers are increasingly looking for more affordable ways to enjoy their favorite sweets.

Borges notes that consumers are purchasing both larger and smaller pack sizes, depending on their budget. “Shoppers are either picking up larger pack sizes to get a better price per ounce or smaller pack sizes for lower absolute price points,” Borges explains. “Consumers still want lollipops, and candy in general, but they are seeking good value where they can.”

Market Performance and Key Data

The hard candy market experienced moderate growth over the past year. According to Circana’s multi-outlet data, the category grew by 5.2%, generating $1.1 billion in sales for the 52-week period ending June 16, 2024. However, unit sales fell by 4.9% to 498.5 million, while the average price per unit rose by 10.7%, reaching $2.25.

Three major players dominated the category, all experiencing growth:

  • Hershey Company: Sales increased by 5.7%, totaling $171.2 million.
  • Bazooka Candy Brands: Sales surged by 29.2%, reaching $127.1 million.
  • Storck: Sales grew by 3.1%, totaling $125.4 million.

Consumer Preferences: Value and Health-Conscious Choices

In addition to seeking value, consumers are increasingly interested in innovative and better-for-you products in the hard candy category. Heidi Dorosin, co-CEO of SmartSweets, observes that many consumers are opting for lower-sugar options that still evoke the flavors of their childhood favorites. “They’re seeking out products with less sugar and are shying away from those with artificial sweeteners,” Dorosin notes.

SmartSweets offers a nostalgic twist on lollipops, providing products without artificial sweeteners, added sugar, or sugar alcohols. The brand’s lollipops come in flavors such as Blue Raspberry and Watermelon, and contain just 1 gram of sugar per two lollipops.

Similarly, Zolli Candy, founded by Alina Morse, has introduced innovative products catering to the health-conscious market. Despite rising costs, Zolli Candy continues to see demand for its zero-sugar offerings. One of its latest products, Zolli Gum Popz, is a sugar-free gum lollipop that features a strawberry-flavored gum surrounded by strawberry hard candy. “Zolli Gum Popz are dye-free, allergen-friendly, natural, vegan, keto, and gluten-free,” Morse explains, emphasizing their wide appeal.

Flavor Trends and Product Innovation

Although traditional flavors like fruit and mint remain popular in the hard candy category, some brands are pushing the envelope with more unique flavor profiles. Liz Smiley, brand manager for Brach’s, points out that while fruit and mint flavors such as lemon, peppermint, and cinnamon continue to dominate, there is an opportunity to introduce more diverse and globally inspired flavors.

Perfetti Van Melle has embraced this opportunity with the launch of two new products: XXL Trio and Melody Pops. The XXL Trio is a multi-layered lollipop featuring bubblegum inside and two different flavor layers. It comes in four flavor combinations, including Cola Lemon, Strawberry Kiwi, Mango Orange, and Tutti Frutti Pineapple. Borges highlights the growing consumer demand for multi-flavor, multi-sensory experiences, stating that these features are driving growth in the non-chocolate candy category.

Melody Pops, another new addition from Perfetti Van Melle, combines candy with entertainment. This lollipop doubles as a whistle, allowing consumers to play different notes while enjoying the candy. It is available in Strawberry, Blue Raspberry, and Watermelon flavors.

Seasonal Products and Nostalgia

Seasonal sales continue to play a significant role in the hard candy market. Smiley notes that consumers still crave everyday options, but seasonal products, such as Brach’s Candy Canes and Cinnamon Imperials, drive ongoing growth. Brach’s, in particular, has found success with holiday-themed products. Last year, the company collaborated with the classic film Elf to release a series of whimsical holiday candies, including Swirly Twirly Gum Drops and Candy Cane Forest Mellowcreme Candy.

Smiley adds that the partnership with Elf was a fun way to put a new twist on Brach’s classic candy canes. Inspired by the film, the candy cane flavors included Buddy the Elf Maple Syrup, World’s Best Cup of Peppermint Hot Cocoa, and Cotton Candy Headed Ninny Muggins.

Sour Candy: A Growing Trend

Sour flavors are on the rise in the non-chocolate candy category. Borges notes that sour is the second biggest flavor in candy, with 130 new sour items introduced in 2023, generating over $140 million in sales. “We see sour lollipops growing at double the rate of regular lollipops,” Borges says.

In response to this trend, Perfetti Van Melle will be launching Chupa Chups Sour Lollipops later this year. These lollipops offer a perfect balance of sweet and sour throughout the eating experience. Unlike some sour candies that lose their punch after a few seconds, Chupa Chups Sour Lollipops maintain their sourness from start to finish. The product will be available in a mixed bag with Sour Strawberry, Sour Lemon, and Sour Green Apple flavors.

Looking Ahead: New Channels and Innovations

As the hard candy market continues to evolve, brands are finding new ways to connect with consumers. SmartSweets plans to launch its first hard candy offering on QVC in the fall of 2024. This move will allow the company to showcase its products through a new retail channel, expanding beyond traditional in-store experiences.

Borges remains optimistic about the future of the non-chocolate candy category. Despite rising costs and inflation, he believes consumers will continue to seek out innovative products that offer exciting flavors, better-for-you attributes, or a sense of nostalgia. “Regardless of the economic impact, the hard candy category is still about indulgence and fun,” Borges says.

Conclusion: The Hard Candy Market in 2024

The hard candy market has shown resilience in the face of inflation, with consumers continuing to purchase their favorite treats, albeit with a greater focus on value and health-conscious options. Brands like Perfetti Van Melle, SmartSweets, Zolli Candy, and Brach’s are leading the way by offering innovative products that cater to shifting consumer preferences, including sour flavors, nostalgic treats, and better-for-you options.

As the category continues to grow, manufacturers are finding new ways to meet consumer demands, whether through seasonal products, new flavor combinations, or alternative retail channels like QVC. Despite the challenges posed by rising costs, the hard candy market is poised for continued innovation and success, as brands tap into the evolving tastes and desires of today’s consumers.

Boar’s Head Closes Jarratt, VA Plant Indefinitely Amid Listeria Outbreak

Boar’s Head indefinitely closes its Jarratt, VA plant after a Listeria outbreak. The company takes steps to improve food safety, impacting employees and industry standards.

Boar’s Head Shuts Down Jarratt Plant Following Listeria Outbreak

On September 13, Boar’s Head made a significant announcement regarding the indefinite closure of its Jarratt, Virginia, facility, which had been shut down since July due to a Listeria outbreak. The closure marks a critical moment in the company’s history, forcing the producer to reconsider its food safety measures and the impact on hundreds of employees.

In a statement, Boar’s Head expressed deep regret over the situation. “This is a dark moment in our company’s history, but we intend to use this as an opportunity to enhance food safety programs not just for our company but for the entire industry,” the company said.

Root Cause of the Outbreak: A Unique Production Process

Boar’s Head’s internal investigation revealed that the contamination was linked to a specific production process that existed solely at the Jarratt plant. This process was used for manufacturing liverwurst, a product that the company has now decided to permanently discontinue in light of the outbreak.

While identifying and eliminating the root cause, the company acknowledged the difficulty of the decision to close the plant. “It pains us to impact the livelihoods of hundreds of hard-working employees,” Boar’s Head added. “We do not take lightly our responsibility as one of the area’s largest employers. But under these circumstances, we feel that a plant closure is the most prudent course of action.”

Union Response and Employee Transition Support

The United Food & Commercial Workers Local 400 union responded to the news, emphasizing that the workers were not at fault for the outbreak and highlighting the company’s efforts to support employees during the transition. The union confirmed that Boar’s Head had agreed to provide workers the option to transfer to other facilities or accept severance packages.

“Everyone agrees this unprecedented tragedy was not the fault of the workforce, so it is especially unfortunate that the Jarratt plant must close indefinitely and put so many men and women out of work,” the union stated. “Thankfully these workers have a union they can count on to always have their backs.”

Revamping Food Safety: A New Chief Food Safety Officer and Council

As investigations into the Listeria outbreak continue, Boar’s Head has announced a comprehensive overhaul of its food safety and quality assurance programs. One of the major steps includes the creation of a new position within the company—a Chief Food Safety and Quality Assurance Officer (CFSO)—who will report directly to the president of Boar’s Head. The company is actively recruiting for this role.

In addition to appointing a new CFSO, Boar’s Head is establishing the Boar’s Head Food Safety Council, comprised of independent food safety experts. This council will assist in the investigation and development of enhanced quality assurance protocols.

Key Appointments to the Food Safety Council

The Boar’s Head Food Safety Council will feature some of the leading minds in food safety:

  • Dr. David Acheson: President and CEO of The Acheson Group, a global food safety consulting firm, and former Chief Medical Officer at the FDA’s Center for Food Safety and Applied Nutrition.
  • Mindy Brashears: A former USDA Undersecretary for Food Safety, Brashears is a professor at Texas Tech University specializing in food safety and public health.
  • Martin Wiedmann, DVM: A food microbiologist from Cornell University with expertise in foodborne pathogens and prevention, Wiedmann co-directs the New York State Integrated Food Safety Center of Excellence.
  • Frank Yiannas: A former Deputy Commissioner for Food Policy and Response at the FDA, Yiannas played a key role in implementing the Food Safety Modernization Act (FSMA) and enhancing food safety collaboration at the agency.

A New Era of Food Safety at Boar’s Head

Boar’s Head is committed to making significant changes in its approach to food safety. The Food Safety Council will serve as advisors to the CFSO and guide the company’s food safety protocols going forward. This initiative aims to set new industry standards, reinforcing Boar’s Head’s dedication to product quality and customer safety.

In a statement on its website, the company said, “We remain steadfast in our commitment to our customers and to the safety and quality of our products. You have our promise that we will work tirelessly to regain your trust and ensure that all Boar’s Head products consistently meet the high standards that you deserve and expect. We are determined to learn from this experience and emerge stronger.”

USDA Citations and Plant Violations

The closure of the Jarratt plant has also led to the release of detailed USDA inspection reports, shedding light on the facility’s long-standing food safety issues. In July, Boar’s Head recalled 7 million pounds of meat and poultry products due to the Listeria contamination, a move that prompted further investigation into the plant’s operations.

USDA documents revealed 69 instances of noncompliance between August 1, 2023, and August 2, 2024. However, a second round of inspection reports uncovered violations dating back to 2022. These findings indicated that the facility had been flagged as an “imminent threat” before the Listeria outbreak occurred.

The Human Toll of the Listeria Outbreak

As of the latest figures from the Centers for Disease Control and Prevention (CDC), 57 people have been hospitalized due to the Listeria outbreak linked to Boar’s Head products, and nine people have tragically lost their lives. The outbreak was traced back to sliced deli meat, including products manufactured at the Jarratt plant.

Boar’s Head’s decision to shut down the plant indefinitely underscores the severity of the outbreak and the company’s efforts to mitigate further risk to public health.

Moving Forward: Restoring Trust and Strengthening Standards

The indefinite closure of the Jarratt facility and the decision to discontinue liverwurst production are critical steps in Boar’s Head’s response to the Listeria outbreak. By appointing a CFSO and establishing the Boar’s Head Food Safety Council, the company is not only addressing the current crisis but also setting the stage for more rigorous safety standards across the entire food industry.

Boar’s Head has made it clear that customer trust is at the forefront of its priorities. “We are determined to learn from this experience and emerge stronger,” the company reiterated, committing to working tirelessly to ensure that all its products meet the highest standards of quality and safety.

As the company continues to navigate this challenging period, its efforts to enhance food safety and support affected employees reflect a commitment to long-term solutions that will help rebuild its reputation and ensure the wellbeing of both its workforce and customers.

Conclusion: A New Chapter for Boar’s Head

The Listeria outbreak at the Jarratt plant has been a major turning point for Boar’s Head. As the company takes responsibility for its role in the contamination and moves forward with corrective actions, its decisions will likely serve as a blueprint for improving food safety practices across the industry. The creation of the Food Safety Council and the new CFSO position are just the beginning of what Boar’s Head hopes will be a safer, more accountable future for its operations and the industry at large.

The Jarratt facility remains closed, and investigations continue as Boar’s Head works to implement its enhanced safety measures, ensuring that such an outbreak does not occur again.

Posted on Author Categories Meat

Pepsi & Pizza

Pizza and Pepsi have long been a classic pairing, but Pepsi is taking it up a notch with a new campaign that ensures every pizza delivery comes with the perfect companion.

The “Pepsi Chase Cars” campaign, launched today, features branded cars humorously chasing pizza delivery vehicles around Los Angeles. This playful stunt emphasizes Pepsi’s claim that pizza pairs best with their iconic cola, according to a press release.

“We’re more dedicated than ever to showing that food—especially pizza, America’s favorite—tastes better with Pepsi. We love this combo so much that we sent out an absurdly powerful fleet of ‘Pepsi Chase Cars’ to make sure no pizza is eaten without a Pepsi chaser,” said Jenny Danzi, Pepsi’s head of brand marketing. “Pizza deserves to be enjoyed to its fullest, which is why we’re giving away tens of thousands of free pizzas to prove that Pepsi, with its citrusy sweetness and carbonation, is the perfect match for pizza. If you’re not chasing your pizza with Pepsi, you’re missing out on flavor.”

To promote this ideal pairing, Pepsi has teamed up with DoorDash to offer tens of thousands of free pizzas to customers who order Pepsi products alongside their pizza.

Starting tomorrow, September 13th, customers who purchase a 2-liter or 20-ounce bottle of Pepsi, Pepsi Zero Sugar, Diet Pepsi, or Pepsi Wild Cherry can claim a free pizza (any size, any toppings) from participating pizza chains:

  • Little Caesars — Minimum order of $30, including a 2-liter or 20-ounce bottle of Pepsi.
  • Papa Johns — Minimum order of $40, including a 2-liter or 20-ounce bottle of Pepsi.
  • Pizza Hut — Minimum order of $40, including a 2-liter or 20-ounce bottle of Pepsi.

The free pizza offer is valid exclusively through DoorDash from 4 to 10 p.m. ET on September 13th, or until supplies last.

Stall in sequential improvement as consumers still feel challenged

KANSAS CITY — For the food industry, the expression “sequential improvement” has emerged as a candidate for catchphrase of the year, or at least the first half of 2024. Used by executives and investment analysts to demonstrate improving financial trends, the term has been intented to show optimism about prospective results for the balance of the year.

Josh Sosland, editor of Milling & Baking News.
Source: Sosland Publishing Co. 

To date this year, the expression has appeared in BakingBusiness.com news articles, in quotes and otherwise, at a rate 260% greater than the average of the previous 15 years. Its popularity reflects that while sales volume figures have been persistently bad for the last several quarters, decreases at many companies had grown steadily smaller in the final quarter of 2023 and the first quarter of 2024.

Leaning into the sequential improvement trend, executives hypothesized the effects of ending emergency food assistance payments would be lapped in the later parts of 2024, and consumers would show signs of acclimating to higher prices for food products.

Optimism in the grain-based foods sector was fueled by US Department of Agriculture data showing flour production in April-June 1.9% higher than the same quarter in 2023. While up from the year before, production of 104.9 million cwts was below 2022 production and was just slightly above the average of 104.1 million cwts milled in the second quarter in the years between 2015 and 2020.

For some food and beverage sectors, second-quarter sales in several segments, particularly grain-based foods, suggest that reality is not playing out as the industry hoped. It turns out the adage “past performance is no guarantee of future results” also applies to the continuation of sequential improvement. At some point, the sequences stop improving.

Of the top 25 food and beverage categories tracked by Circana, 12 experienced sales unit volume decreases in the 13 weeks ended June 30, versus the same quarter in 2023. Another five enjoyed growth of less than 1%.

The widest decreases were sustained in chocolate candy, down 11.9%, and non-chocolate candy, down 7.9%. Among grain-based food categories, bread and rolls were down 1.5%; cookies, down 0.1%; ready-to-eat cereal, down 1.8%; crackers, down 1.8%; snack bars/granola bars and clusters, down 3.6%; and salty snacks, down 0.7%. Also losing ground during the period were numerous beverage categories, including beer, down 1.8%; wine, down 5.1%; and ready-to-drink tea and coffee, down 6%.

The quarter was not without winners. Taking volume at the expense of grain-based foods were several dairy categories, including natural cheese, up 2.2%; dairy milk (now a smaller category than natural cheese), up 0.1%; yogurt, up 5.1%; and ice cream, up 1.6%.

Consistent with these trends, the food category has widely underperformed the overall stock market so far this year. The Grain-Based Foods Index through the end of July was down 3%, versus a 17% gain for the S&P 500. Performance on a company-by-company basis was more erratic, as exemplified by ADM, down 12%; Bunge, up 11%; Flowers Foods, down 1%; General Mills, up 1.3%; Kraft Heinz, down 9%; Mondelez International, down 8%; and Grupo Bimbo, down 21%.

Halfway through the third quarter, flour milling sources have indicated flour demand is flat at best, suggesting the food industry continues to await a recovery in consumer demand.

Even as they spoke hopefully about prospects for later in the year, many companies left guidance unchanged and offered words of caution. For example, Grupo Bimbo said it was hesitant to raise guidance “mainly because the overall consumer environment in North America continues to be challenging.”

Flowers Foods’ leadership said it was comfortable with the middle of its financial guidance but also recognized the risk from “the potential impact of an uncertain economy on the consumer and promotional environment, and the transition of our California distribution.”

It is now four years since what had been generally predictable patterns in consumer consumption were disrupted. When it is that demand trends will regain the consistency that had been the norm in the past remains to be seen.



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Papa Johns hires ex-Wendy’s exec. as chief digital officer

Papa Johns International Inc. announced Monday that the company has hired former Wendy’s chief information officer, Kevin Vasconi, as the Atlanta’s-based pizza chain’s new chief digital and technology officer. The announcement comes a month after Papa Johns hired former Wendy’s CEO Todd Penegor as CEO, succeeding Rob Lynch, who left the company earlier this year to head Shake Shack Inc.

Vasconi worked for Wendy’s for four years, where he led the company’s transformation and was able to triple its ecommerce business in three years and leverage technology to build Wendy’s loyalty program. Besides serving as chief information officer for the brand, Vasconi was also an executive advisor to the CEO until April 2024.

Related: Papa Johns renews exclusive partnership with PepsiCo for another decade

“Kevin and I worked together at The Wendy’s Co. where I experienced first-hand his ability to lead technology innovation that delivered significant impact for our customers, team members and franchisees,” Penegor, Papa Johns president and CEO said in a statement. “His experience spans a number of industries, though his leadership in QSR, in particular, has been recognized in the industry and has served as an inspiration for other peers in our category. I look forward to Kevin’s partnership across our leadership team to build on the success Papa Johns has had in the digital space, while also leveraging technology to develop even better platforms, partnerships and systems to enable us to build for the future.”

Prior to working for Wendy’s, Vasconi worked at Domino’s Pizza for eight years as executive vice president and chief information officer, where he was in charge of building domestic and international eccomerce business.

Related: Taco Bell’s ‘retirement community’, Papa Johns turns to digital loyalty, Noodles & Company may close restaurants

In his new role, Vasconi will be responsible for “guiding the development and execution of Papa Johns long-term strategy across the entire digital and technology ecosystem,” which will include both customer and restaurant-facing technology like data analytics, enterprise technology, information security, and scaling capabilities for the global franchising system.

“I am excited to join the talented team at Papa Johns and lead our technology strategy as we look to create great experiences for our customers and team members around the globe,” Vasconi said in a statement. “Papa Johns is a brand I’ve admired given its continued innovation in the technology space. With the digital space in QSR becoming more competitive than ever, there’s both great challenge and opportunity ahead.”

Ravi Thanawala, who served as interim CEO while the company looked to replace Lynch, will return to his position of chief financial officer while also adding the role of executive vice president, international.

Additionally, Joe Sieve, who previously served as Papa Johns’ chief development and operations officer, will have an expanded role of chief restaurant and global development officer.

Contact Joanna at [email protected]



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Eriez Names Todd Loudin as VP of Global Sales

Eriez has appointed Todd Loudin as vice president of global sales. 

In this role, Loudin will leverage his expertise to drive revenue growth and enhance Eriez’s global market presence. 

With more than three decades of experience in international business and sales management, Loudin has a track record of success. He most recently held a senior executive position at Valmet, a global leader in flow control solutions, where he expanded market share and strengthened customer relationships.  

As part of the Eriez executive leadership team, Loudin will apply his understanding of international sales dynamics and pipeline management to advance Eriez’s efforts to diversify its business worldwide.  

“We are proud and excited to welcome Todd to the Eriez team,” says Eriez President and CEO Jaisen Kohmuench. “Todd’s visionary leadership will be integral to our work to more closely unify and better support our 12 global subsidiaries across six continents. We are confident that Todd’s contributions will have a positive impact on shaping Eriez’ future and elevating the organization.” 

Loudin earned a bachelor’s degree in marketing and business from Kent State University and an executive MBA from Loyola University Maryland. Throughout his career, Loudin has been engaged in prominent professional organizations, including serving on the International Society of Automation (ISA ANSI) Standards Committee for more than 12 years.



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Appliance Brands Try to Tap Into AI Zeitgeist With AI-Powered Food Recognition

This weekend at IFA, several big appliance brands used the show to tell the world that they are all in on AI, mainly through the integration of cameras into their ovens paired with software to enable personalized recipes and customized shopping lists.

Siemens showed off the iQ 700 oven has a built-in camera that recognizes over 80 different dishes and automatically adjusts to the ideal cooking settings. This feature allows users to place food, like a frozen pizza, in the oven and hit start for optimized cooking. The updated model offers more food recognition capabilities than previous versions and includes an optional steam function to achieve a crispy crust on baked goods.

Hisense debuted the Hi9 Series Oven, equipped with AI-powered InCamera technology for intelligent baking with over 140 pre-programmed recipes. The company also introduced a smart fridge in the Hisense Refrigerator PureFlat Smart Series, and its description sounds like they’ve been taking cues from Samsung and the Family Hub. The company described the fridge as “a home appliance control center” that “allows you to adjust temperature settings remotely through the ConnectLife app.”. The fridge also has AI-powered inventory tracking, though the company was light on details about how the tracking feature works.

Beko also let everyone know that they are trying to jam AI into as many things as possible, including their ovens. Like with HiSense and Siemens, they pointed to camera-assisted cooking in their ovens. From the release: “Beko brings AI-assisted camera technology to its Smart Home ovens, delivering a self-improving cooking experience for optimal results in the kitchen whatever the dish. With food recognition and cooking suggestions across more than 30 different food types, the new Beko Autonomous Cooking technology uses AI to finish cooking according to personalized browning levels.”

Ovens with cameras and food recognition aren’t exactly new, as we’ve been seeing this feature for the better part of a decade since June (RIP) debuted the technology. The appliance industry often displays a herd mentality, and clearly, the herd feels they’ve got to show off their AI chops, even if the technology is somewhat pedestrian at this point.

Electrolux Debuts Taste Assist AI on AEG Line

Not every new AI-feature introduction at IFA was tied to integrated cameras and image recognition. Electrolux introduced its AI Taste Assist feature on its AEG line of kitchen appliances. According to the announcement, AI Taste Assist will take recipes from the Internet, import them, and send cooking instructions to the oven, but not before it recommends ways to enhance and optimize the cook. In a demo on-stage by Electrolux at IFA, the company emphasized how the new feature was meant to overcome what they called the “cooking gap”, which they described as the limitations of existing recipes and the enhanced capabilities of modern cooking equipment. The feature that Electrolux primarily promoted to bridge this gap was steam cooking, a feature that was injected into a lasagna recipe in an on-stage demo of the Taste Assist feature by Christopher Duncan, Electrolux’s SVP of Taste for Europe.

One notable absence at Electrolux’s IFA new conference was GRO, the next-generation modular kitchen concept the company announced in June of 2022. All indications are that the Swedish appliance brand has not made any progress in commercializing GRO, probably partly due to the company’s struggles over the past couple of years. The company laid off approximately three thousand employees last year, and earlier this year, it saw the departure of its longtime CEO, Jonas Samuelson, as the company continued to struggle post-pandemic and in the fast of increased competition from Asian appliance brands.

SideChef Unveils AI Feature in App That Creates Step-by-Step Recipes From Photos of Food

SideChef recently introduced RecipeGen AI, a new beta feature that generates step-by-step recipes from a photo of any dish. Users can upload pictures of meals from restaurants or social media, and the app will provide a shoppable recipe based on the image.

From the release: “We are living in exciting times, where every inspiration can become a person’s reality,” says SideChef Founder & CEO, Kevin Yu. “At SideChef we’re excited to be the first to use AI to allow any home cook to make their food inspiration a reality for themselves and loved ones, with a single photo!

CNET writer Amanda Smith gave the app a test drive and came away with mixed feelings. While the app successfully identified many ingredients, it missed key components in some cases, such as sourdough focaccia and strawberry butter. It also occasionally added ingredients that weren’t in the dish, like bell peppers, leaving Smith feeling the accuracy was somewhat hit or miss.

Smith’s takeaway: Succes “depends on the recipe. It has a hard time with nuance and, like other AI tools, tends to make it up if it’s unsure. It’s a handy little app that could be used to inspire new ideas and ingredient concoctions or if you’re in a restaurant and don’t want to bother the waiter with dish details.”

Samsung Food Also Debuts AI-Powered Shopping Lists From Photos

SideChef isn’t the only smart kitchen company debuting photo-to-recipes/shopping lists powered by AI in their apps. At IFA last week, Samsung announced new AI-powered meal planning and food management features. The Vision AI feature now allows users to add ingredients to their Food List by simply taking a photo with their smartphone, expanding beyond the previous limitations of Samsung’s Family Hub smart fridge. This list can be used to suggest recipes, prioritize items nearing expiration, and automatically update after meals are cooked or ingredients are purchased.

Additionally, the company announced a new premium tier called Samsung Food+, a $7/month subscription service offers personalized weekly meal plans, tailored to users’ nutritional goals and dietary preferences, and tracks macronutrients and caloric intake. This premium tier also integrates more advanced AI functionality, allowing users to customize recipes and receive a full week of meal recommendations, helping reduce food waste and simplify grocery shopping by making the app a central hub for food management and meal preparation.



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Pilgrim Foodservice opens depot in Colchester

Colchester, Essex, UK: Pilgrim Foodservice has officially opened its new depot in Colchester. It will enable Pilgrim Foodservice to expand its operations, ensuring more efficient deliveries of its products and services across Essex, Suffolk, and London.

Charles Bateman, managing director of Pilgrim Foodservice said: “The positive customer feedback we’ve received since the depot started operating reflects the dedication of our Colchester team, and the ribbon-cutting ceremony felt like the perfect way to celebrate this exciting new chapter.”

One long-standing customer said: “The new Colchester depot has significantly improved how we purchase our stock. The quality and freshness of the products are second to none, and we’ve noticed that all of our deliveries are arriving earlier which is great for us.”

Pilgrim Foodservice supplies a wide range of products, from fresh produce and pantry essentials to premium meats from the company’s in-house butchery, C.J. Butchers. The company delivers these products to independent restaurants, hotels, and cafés across East Anglia, the East and West Midlands, Yorkshire and the Humber, and London.

Pictured above are: Mayor of Colchester, councillor Lesley Scott-Boutell, who opened the site, with the Pilgrim Foodservice team



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Patagonia to source alternative packaging materials

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Outdoor gear and apparel company Patagonia aims to stop sourcing packaging materials from endangered forests, according to a Sept. 5 press release from environmental nonprofit Canopy.

In partnership with Pack4Good — a sustainable packaging initiative from Canopy — Patagonia will opt for alternative fiber sources for paper and packaging that don’t rely on logging, per the press release. Currently, paper packaging used for delivery boxes, hang tags and shoe boxes are responsible for more than 3 billion trees being logged from endangered climate critical forests, according to Canopy.

Alongside Canopy, Patagonia will take “steps to review and develop new, more-responsible packaging materials,” said Patagonia Packaging and Branding Director Jennifer Patrick. Alternative packaging products use materials like agricultural waste and non-forest alternative fibers.

Patagonia has remained focused on reducing or slashing the environmental impacts from its manufacturing operations. In 2019, the outdoor apparel and gear company vowed to become carbon neutral by 2025 and has since taken several steps to ensure sustainable practices. The year prior, for instance, Patagonia reintroduced wool into its products after implementing a responsible wool standard following an animal cruelty investigation at one of its suppliers.

The retailer has also partnered with Canopy in the past to help shift viscose and rayon textile sourcing practices, according to the press release. In an effort to reduce its carbon footprint, “Patagonia has been using 100% recycled content for all its packaging and catalogues.”

Ending deforestation is a major topic, especially across the apparel supply chain. To date, more than 400 brands have parntered with Pack4Good, according to Canopy’s website. In July, Zara owner Inditex joined the initiative to eliminate materials from endangered forests from its paper packaging. Clothing brand Ganni followed suit a month later.



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Another season, another cantaloupe recall

Arizona-based Eagle Produce LLC from Scottsdale is recalling 224 cases of whole cantaloupe melon because of the potential for Salmonella contamination.

The fruit was distributed between August 13 and 17 at various retail supermarkets in five states, specifically Michigan, Missouri, Ohio, Ohio, Texas and Virginia.

The melons are identified with a red and white sticker with the word KANDY at the top and the UPC number code, 4050.

The recall is the result of routine sample testing conducted by the State of Michigan that revealed the presence of Salmonella in cantaloupe sold at retail.

Salmonella can cause serious and sometimes fatal infections in children, the elderly, and people with weakened immune systems.

Healthy people may experience fever, nausea, vomiting, diarrhea, and abdominal pain.

The company is cooperating with the FDA regarding this recall.

As of the publication of this news release, there have been no reported illnesses attributed to the recalled product. In addition, the recall does not affect any other product or lot code date.

Last year, Sofia Produce, LLC, from Nogales, Arizona, which does business under the name “Trufresh” recalled all sizes of fresh cantaloupes packaged in cardboard containers labeled with the “Malichita” label. The fruit was sold between Oct. 16 and Oct. 23, 2023, and was contaminated with Salmonella, resulting in at least two deaths. 

 

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Posted on Author Categories Fruits

3 things to know about Class 3 walk-behind vehicles

Grocery distributors and food manufacturers have their processes down to a science. But like any good scientist, they also know it’s crucial to keep improving and make their processes even more effective. Every pallet touch point is important, as is every square foot of space in a facility and, above all, the well-being of every employee.

This is why manufacturers, distributors and retailers must evaluate their equipment choices with a critical eye. “It can be tough to make a change from your last buying cycle, or even your last two or three buying cycles,” says Kurt Spyke, director of national accounts and strategic product for Big Joe Forklifts. “But operators and managers know their day-to-day challenges, and with the right partnerships and equipment, they can meet those challenges and do their jobs even better.” 

Food industry leaders who value continuous improvement should take a closer look at Class 3 walkie equipment for their facilities. These walk-behind vehicles improve multiple business functions, and while they may not always seem like the obvious solution, what you don’t know may surprise you.

Class 3 walkies increase operational efficiency

Vehicle downtime is a significant issue for grocery distributors, food manufacturers, and any warehouse moving goods from place to place. Whether it’s a forklift, motorized cart or anything in between, vehicles need to remain in service with minimal maintenance so operations run efficiently. This is where Class 3 walk-behind vehicles have a distinct advantage over many forklifts. Class 3 models such as Big Joe’s PDSR are powered by a lithium-ion battery, which outperforms vehicles powered by combustion.

“Few things have changed the material handling industry more than lithium-ion batteries,” says Spyke. “Big Joe’s Class 3 products outperform gas powered vehicles, as they require little to no maintenance, and their cost and charging time have come down now that the technology has matured.”

Not only do battery-powered walkies stay in operation longer, they also increase the available space in a facility. “You’re literally buying back real estate because you no longer need eyewash, washdown or safety areas that are required for lead-acid battery users,” Spyke explains. Class 3 walkies operate longer, have fewer components and make better use of space, meaning they are extremely efficient in any warehouse setting.

Walk-behind vehicles save money

Those efficiencies translate to cost savings, as well. Battery-powered vehicles, of course, save on fuel, but they also have lower maintenance costs by the nature of their long-lasting batteries. “Imagine a pie chart showing the ownership cost of a vehicle — 80% of the cost is parts and labor maintenance,” says Spyke. “

These savings are particularly valuable for small and midsized locations where a Class 1 forklift is unnecessarily large and expensive. Class 3 walk-behinds provide the same picking and stacking capabilities, but with a smaller footprint. The PDSR, for example, features a pantograph mechanism for lifting and lowering products, and it can reach up to 189 inches in height. With standard power steering it’s easy to maneuver and less costly than a larger vehicle with the same functions. 

Class 3 vehicles solve labor challenges

Another crucial advantage of a Class 3 walkie is that these vehicles do not require operator certifications. Even new employees can quickly be trained to operate these vehicles safely. As labor shortages persist in the grocery and manufacturing sectors, walk-behind stackers like the PDSR or Big Joe CB 30/35 can enhance warehouse productivity, even when certified forklift operators aren’t available.

These battery-powered walk-behind vehicles also create a safe environment for workers because they move at lower speeds and have no particulate emissions from fumes or exhaust creating a cleaner environment. As midsized coffee roaster Baronet Coffee found, these vehicles provide safety and efficiency in a 50,000-square-foot facility, and since they’re easy to learn to operate, most employees can run them. 

Operable in small spaces yet able to reach high, side shift and maneuver heavy loads, Class 3 walk-behinds offer the best of both worlds — heavy-duty capability plus simple, safe operations.

Do what you do — but better than before

In an industry where margins are tight, labor is constrained and failure is not an option, operators and managers must explore all available solutions to find the right one for their business. By reducing downtime and maintenance costs while increasing facility space usage and workforce capabilities, Class 3 walk-behind vehicles tackle multiple challenges facing the food industry. “These vehicles are like a Swiss army knife for moving product,” Spyke says. They allow industry leaders to keep doing their jobs but to do them even better.
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Producers’ share of retail beef dollar tracks sideways

 

THE Australian beef producer’s share of retail dollar spend on beef has tracked sideways, after hitting all-time historical lows back in the December quarter.

The recent release of June 2024 quarterly Consumer Price Index data from the Australian Bureau of Statistics provides the opportunity to update the quarterly producer share of retail dollar calculation (see details below) published jointly by Episode3 and Beef Central.

As can be seen on the graph above, the recent recovery in saleyard cattle prices during the second quarter has helped maintain retail beef market share for producers, currently sitting at 35 percent for the second quarter, down marginally from 35.2pc in the March quarter, due to sideways movements for both saleyard and retail beef prices.

March was the best result seen for producer share since the second quarter of 2023, but a long way off the long-term trend line growth seen since the late 1990s.

Back in December the beef producer share of retail $ dropped to its lowest point since the data-set began back in 1998, at just 25.8pc. Back in 2022-23 when cattle prices approached record levels, the producer share index soared to almost 60pc.

In the graph above comparing the saleyards cattle price index versus the retail price index (1998 providing the benchmark at 100 for both), the saleyard index was little changed in the June quarter, having lifted 30pc between December and March from 271 to 352. Retail beef prices mirrored the sideways movement seen at the saleyard with the index increasing by just 1 point over the June quarter from 258 to 259.

Background to the producer share of retail prices calculation

In collaboration with analyst Matt Dalgleish from Episode 3, Beef Central last year launched a new quarterly series looking at trends in the beef producer’s typical share of the retail consumer’s spend on beef products.

A similar analysis was compiled by MLA for four years, before being discontinued by the industry service delivery company back in December 2016. The project was originally launched as a result of producer requests during the 2012 MLA annual general meeting.

Beef Central sought, and gained MLA’s blessing to resurrect the discontinued series, based on clear reader interest. The same formula is used to compile the new set of results as originally used by MLA (see explanation of the calculation below).

Episode 3 and Beef Central now jointly publish a quarterly report, soon after ABS quarterly retail beef price data is released.

The exercise sees national saleyard cattle prices in carcase weight terms being converted into an estimated retail weight equivalent and compared to average retail beef prices, as reported by ABS .

About the producer share of retail spend calculation

The beef producer share of the retail dollar is calculated using a range of assumptions:

  • The national saleyard trade steer indicator is used as the benchmark livestock prices, representing animals suited for the domestic market. Livestock prices are collected by MLA’s NLRS.
  • Converting the carcase weight price to an estimated retail weight equivalent price is achieved using a retail meat yield for beef of 68.7pc.
  • The indicative retail meat prices are calculated by indexing forward actual average beef prices during each quarter, based on meat sub-group indices of the Consumer Price Index, provided by ABS. These indices are based on average retail prices of selected cuts (weighted by expenditure) in state capitals.

The producer share is calculated by dividing the estimated retail weight equivalent livestock price by the indicative retail price.

Click the links below to read earlier reports in this series:

March quarter 2024

December quarter 2023

September quarter 2023

June quarter 2023

September quarter 2014

Should cattle producers be paying more attention to retail margin share?

 

 

 





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MSC comes to the aid of ONE, HMM and Yang Ming

THE Alliance will become the Premier Alliance from next February, with Ocean Network Express (ONE), HMM and Yang Ming Marine Transportation as partners, and the world’s largest containerline helping plug gaps on Asia-Europe tradelanes. 

From next year there is set to be the biggest overhaul in liner alliances in a decade, with Mediterranean Shipping Co (MSC) ditching Maersk in the 2M vessel sharing agreement to largely go it alone, and Germany’s Hapag-Lloyd subsequently exiting THE Alliance to join the Danish carrier in what will be called the Gemini Cooperation. The liner switches had left the remaining members of the all-Asian THE Alliance as the smallest grouping on the main east-west trades. 

Today, the three Asian carriers reaffirmed they will remain partners for at least another five years through to the end of the decade, while unveiling a new branding, Premier Alliance, 

“Collectively this new tripartite alliance will offer strong, reliable and highly dependable end-to-end direct port container services to its customers on both the transpacific and Asia-Europe trades,” Jeremy Nixon, CEO of ONE, shared his thoughts on this new collaboration and ONE’s business outlook going forward.

More headline-grabbing, however, is the news that the three carriers have negotiated a slot exchange deal with MSC on the Asia-Europe trades on nine services, helping plug the gap in size. 

In the wake of Hapag-Lloyd’s departure from THE Alliance, the Asian trio had been canvassing potential new partners. 

A senior executive at Taiwan’s Wan Hai Lines admitted recently that his company had been approached to join a shipping alliance, without revealing which grouping had made the approach. 

From February next year, the main east-west trades will see MSC largely operating solo, the Premier Alliance brand commence, the Gemini Cooperation start, while existing liner group Ocean Alliance, made up of CMA CGM, COSCO, Evergreen and OOCL, has agreed to continue their vessel-sharing agreement until the end of March 2032.



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Port authority and industry push for urgent border control review

The idea that meat infected with African swine fever (ASF) might be getting into the country unchecked and circulating freely is a terrifying one for the pig sector.

According to Lucy Manzano, head of Dover Port Health Authority (DPHA), the ASF threat is now coming as much from commercial meat imports due to the flawed implementation of the Border Target Operating Model (BTOM), as it is from illegal meat imports.

This, she believes, is largely down to the previous government’s decision to build a brand-new border control post (BCP) 22 miles inland at Sevington to carry out sanitary and phytosanitary (SPS) checks for goods arriving at Dover Port and via Eurotunnel, rather than at the point of entry at Dover, where a perfectly good BCP already exists.

“The implementation of the BTOM at the Short Straits is not working effectively or consistently,” Ms Manzano told Pig World.

“We are aware that illegal imports of commercial meat are coming through in significant and concerning volumes and without appropriate intervention at Sevington.

“In addition, IT systems continue to work ineffectively and do not communicate with each other as required or expected – and Port Health controls in place at Sevington are not identifying and controlling consignments as they should be.

“We are being notified of goods being called for examination that don’t arrive, or do arrive and are turned away, or arrive and then sit there for long periods of time and have then been told to leave without checks at all.”

She said the inherited imported food system now operating at the Short Straits was based on flawed Defra data assumptions – a poor understanding of the type of food and the volumes coming through – and not opening a BCP at the border in Dover.

“As such, controls aren’t working as they should, the impact of which is a big hole in this critical border, which means meat is getting in unchecked or, if it is, checked in a very inconsistent and ineffective way,” she said.

About 100t of illegally imported meat has been seized at the Port of Dover so far, but the authorities need more funding to sustain the service © DPHA

Minimal checks

Defra has stressed that it is operating a risk-based approach that will see a significant reduction in the number of checks at Sevington.

It has also said the checks are being gradually phased in since April, although it has given no further indication of how it will up the frequency.

But in a recent letter to Defra secretary Steve Reed calling for action to address the situation, the UK Livestock Chain Advisory Group (LCAG), a coalition of 26 farming and meat industry bodies, said less than 10% of about 100 physical checks that should be taking place each day are happening.

British Meat Processors Association chief executive Nick Allen said only around 2% of goods coming through are being checked at Sevington. “How is that effective as a control?” he said.

This is partly due to the option of auto-clearance at the BCP, which means loads can be auto-cleared two hours prior to arrival.

Loads are auto-clearing through Sevington even if they’re entering via a different port as they know no physical checks will take place, according to LCAG.

Ms Manzano added: “Goods that should categorically not have come in have done so and with commercial papers.

“Our work has and continues to identify that commercial meat from ASF-restricted areas is clearly coming in at the straits without the checks required – exactly as we said would happen at the very beginning and warned the previous government of.”

Illegal meat checks

Meanwhile, Dover Port Health Authority, in conjunction with UK Border Force, continues to carry out checks for illegal ‘personal imports’ of meat at Dover Port.

“We have teams down there now, as we speak, on the tourist lanes carrying out ASF checks for, technically, personal imports, but they are largely not what we would consider personal imports.

“This is predominately illegal meat deliberately brought in, often in very large volumes, from those ASF-infected areas,” Ms Manzano added.

About 100t of illegal meat has been seized at Dover over the past two years, but it is widely acknowledged that this represents just the tip of the iceberg.

Yet Defra told DPHA in December that it was cutting its budget for this work from £3.2m to £1.2m in 2024-25, starting in April, and then to nothing in 2025-26. Despite this, the requirement for Dover Port Health to complete ASF controls has been extended to Coquelles, in France.

Funding of this critical work remains unconfirmed. “We are fully committed to completing these extended checks, and working with the new government, but we can’t do this critical work for GB biosecurity without the funding required to deliver the service,” Ms Manzano said.

“We have put forward funding models to be able to effectively control the risk at Dover and Coquelles. We await responses from the new government.”

Government help

DPHA has also written to Mr Reed calling for an urgent review of how the BTOM is operating at the Short Straits and the biosecurity value it is delivering for GB at this critical border.

“The current system is failing. It is absolutely not operating in the best interests of GB biosecurity and, as the Port Health Authority, it is our responsibility to be really clear about what is and isn’t working and to help the new government identify what needs to change, and to make some really swift adjustments to plug those holes,” Ms Manzano added.

The authority, and wider industry, is hopeful, that as parliament returns to full swing in the autumn, they will see some action from Defra ministers.

After all, food security minister Daniel Zeichner showed an active interest in the situation while in opposition and, since the election, Defra ministers have identified addressing border control flaws as a major priority.

“We are hoping that as they return in September, they move forward quickly with a review and start to unpick what is happening here now,” Ms Manzano said.

“We have lost sight of the purpose of border controls – it is not a documentary process. It is about keeping the bad things out. We want to see consistent and transparent checks of biosecurity value, carried out at the point of entry at Dover, our greatest line of defence. The move to Sevington is exposing us to entirely unnecessary and needless risk.

“It must be addressed before it’s too late and, as the port health authority at the border, we cannot sit back and ignore what is happening, especially when there are relatively simple solutions that could be activated quickly to secure this border and GB biosecurity.

“Dover Port Health’s objective is to keep GB safe and fix these glaring holes. If we don’t, the outcome could be catastrophic for us all, but especially for the UK pig industry.”

Ms Manzano’s comments reinforce the sentiments of the LCAG call to action for Defra ministers to address the risk posed by both commercial and illegal imports.

“I’d like to think Steve Reed, Dan Zeichner and co are listening here,” Mr Allen said, adding that the expectation is that ‘things will start to happen in early autumn’.

Key priority

A government spokesperson said: “Protecting UK biosecurity is one of our key priorities, and we are working with BCPs and traders to ensure checks are carried out effectively and swiftly. The UK has never had an outbreak of ASF.

“We are not complacent and suspected illegal meat products are routinely checked at the border to ensure they don’t reach our shores.”

Defra made it clear that it will continue to monitor and review the impact of the new controls, and work with industry, trade partners and enforcement agencies to try and minimise disruption and costs to trade, while protecting biosecurity.

It indicated it will work with the Animal and Plant Health Agency, Port Health Authorities and BCP operators to ensure BCPs operate effectively and are resourced appropriately, and that it remains committed to agreeing an appropriate funding model with DPHA to tackle illegal imports, with a focus on the ASF safeguard measures.

Defra remains confident, however, that BCP capacity, including staff resource, is sufficient for the current volume of checks, which it says are operating 24/7 and carrying out the inspections required.

Checks are intelligence-led and based on biosecurity risk, with the risk of legitimate commercial loads not attending Sevington mitigated by ‘robust, data-backed enforcement options’, it said.



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