Stock Performance of Major Shipping Companies

From October 7 to October 11, 2024, several leading shipping companies experienced minor fluctuations and volatility in their stock prices. These trends reflect broader market conditions, including shipping demand, global trade disruptions, and industry-specific factors such as fuel prices and geopolitical risks. Here’s a closer look at the performance of key companies in the shipping sector:

Yang Ming Marine Transport Corp (2609)

  • Currency: TWD (New Taiwan Dollar)
  • Performance Summary:
    • October 7: TWD 64.1
    • October 8: TWD 63.5
    • October 9: TWD 62.5
    • October 11: TWD 62.8
  • Overview: Yang Ming Marine’s stock showed a consistent downward trend early in the week, declining to TWD 62.5 by October 9. However, a slight recovery to TWD 62.8 on October 11 suggests potential market stabilization. Despite this, the overall decline of about 2% points to short-term volatility influenced by fluctuating global trade activities.

Hapag-Lloyd AG (HLAG)

  • Currency: EUR (Euro)
  • Performance Summary:
    • October 7: €143.5
    • October 8: €141.7
    • October 9: €139.6
    • October 11: €142.0
  • Overview: Hapag-Lloyd experienced mild volatility with a slight drop in stock value early in the week. The stock fell from €143.5 on October 7 to €139.6 by October 9. A moderate recovery followed, closing at €142 by October 11. The company faced a slight overall decline of around 1%, reflecting a generally stable performance with minimal risk for long-term investors.

Evergreen Marine Corp Taiwan Ltd (2603)

  • Currency: TWD (New Taiwan Dollar)
  • Performance Summary:
    • October 7: TWD 188.0
    • October 8: TWD 189.0
    • October 9: TWD 183.5
    • October 11: TWD 186.0
  • Overview: Evergreen Marine saw a mix of rises and falls in its stock, starting at TWD 188 on October 7 and peaking slightly at TWD 189 the next day. The stock dropped to TWD 183.5 by October 9 before rebounding to TWD 186 on October 11. This 1.1% decline over the week demonstrates moderate volatility, which could reflect industry challenges such as rising fuel costs.

HMM Co Ltd

  • Currency: KRW (South Korean Won)
  • Performance Summary:
    • October 7: KRW 17,040
    • October 8: KRW 17,060
    • October 10 – 11: KRW 16,870
  • Overview: HMM’s stock exhibited relative stability, with only minor fluctuations. After a small increase from KRW 17,040 to KRW 17,060 by October 8, the stock dipped to KRW 16,870, where it remained unchanged for the remainder of the week. The total decline of around 1% suggests minimal volatility, highlighting the company’s resilience during this period.

COSCO SHIPPING Holdings Co Ltd ADR (CICOY)

  • Currency: USD (United States Dollar)
  • Performance Summary:
    • October 4: $7.70
    • October 7: $8.18
    • October 8: $8.17
    • October 9: $7.20
    • October 10: $7.70
  • Overview: COSCO’s stock exhibited significant volatility. While the stock increased from $7.70 to $8.18 between October 4 and October 7, it dropped sharply to $7.20 on October 9, followed by a recovery to its initial price of $7.70 by October 10. This up-and-down movement suggests heightened sensitivity to market factors and potential investor caution.

AP Moeller-Maersk AS (AMKBY)

  • Currency: USD (United States Dollar)
  • Performance Summary:
    • October 4: $7.19
    • October 7: $7.29
    • October 8: $7.37
    • October 9: $7.24
    • October 10: $7.20
  • Overview: AP Moeller-Maersk’s stock saw moderate fluctuations. After peaking at $7.37 on October 8, the stock gradually decreased to $7.20 by October 10. This reflects minor volatility and aligns with the broader market trends seen across the shipping sector.

Conclusion

The stock performances of these major shipping companies highlight a period of modest volatility across the sector from October 7 to October 11, 2024. With slight declines and recoveries, the sector’s movements suggest that external factors such as fluctuating demand and global economic conditions are likely influencing short-term performance. Investors should remain cautious yet optimistic as the sector continues to navigate these challenges.

Food Inflation Surge in September: Key Insights and Implications

In September, grocery prices experienced their largest jump since January, with a 0.4% increase driven by price hikes across various staple foods, according to the Bureau of Labor Statistics (BLS). This significant rise, particularly in essential food categories, is a reminder of the challenges in taming food inflation, which remains volatile despite overall economic progress.

Key Drivers of the Price Hike

The BLS noted that five out of six major grocery store food groups saw price increases. Notably, the “meats, poultry, fish, and eggs” category surged by 0.8%, with egg prices spiking 8.4% in September alone. This follows a similar increase in January, also 0.4%, indicating recurring inflationary pressure on food staples.

In contrast, August showed only a modest 0.1% increase in grocery prices, following two months of 0.2% hikes. Despite September’s sharp rise, year-over-year data shows food price inflation stabilizing, with food at home (groceries) prices up 1.3% over the last year, while food away from home (restaurant) prices rose 3.9%.

Sector Breakdown: Meat, Dairy, and Grains

Among the key trends, egg prices have soared 39.6% in the past 12 months, driven in part by the ongoing impact of highly pathogenic avian influenza, which has severely affected egg production. Other notable increases include:

  • Fats and Oils: Up 1.1%, with butter seeing a 2.8% increase in September (7.8% over the year).
  • Bakery Products: Cereal and bakery products rose 0.3%, reflecting steady growth in grain-based items.

While some prices decreased, like pork chops (-1.2%), milk (-0.3%), and ice cream (-0.9%), these declines offer only temporary relief. Over the past year, pork chop prices are still up by 4.2%, highlighting that even products with short-term declines face longer-term inflationary trends.

Inflation Trends and Future Outlook

Although September’s increase was the largest since January, experts remain cautiously optimistic about the overall inflation trajectory. Andy Harig, vice president of FMI-The Food Industry Association, pointed out that year-over-year food-at-home inflation is now at a moderate 1.3%, a significant improvement from the more severe inflation spikes of 2022.

“We remain cautiously optimistic that the worst of food price inflation is behind us,” Harig said. However, he also warned of potential future challenges, such as the impacts of hurricanes like Helene and Milton on the food supply chain.

Broader Economic Context

The overall Consumer Price Index (CPI) rose 0.2% in September, driven by both food price increases and rises in other sectors. Key categories that saw significant price hikes included shelter, motor vehicle insurance, and medical care. On the other hand, the energy index fell by 1.9%, continuing a trend from August.

Interestingly, the all-items index has seen a 2.4% rise over the past year, marking the smallest 12-month increase since February 2021. While this may signal broader progress in controlling inflation, food prices continue to reflect the volatile nature of commodity markets and supply chain disruptions.

Looking Ahead: Stabilizing Food Prices?

With both optimistic and cautious outlooks, the food industry and consumers alike are keeping a close watch on inflation trends. Harig highlighted that recent lessons from the COVID-19 era have strengthened the resilience of the food supply chain, but there are still uncertainties, especially with the looming threat of climate-related disruptions.

For now, while consumers may see some stabilization in grocery prices, the potential for future shocks remains. Factors like climate events, disease outbreaks, and supply chain issues will continue to play a significant role in shaping the cost of essential food items.

Conclusion

The sharp rise in September grocery prices underscores the complexity of managing food inflation in a post-pandemic economy. While year-over-year inflation appears to be slowing, the monthly volatility, especially in key staples like eggs and meats, highlights the ongoing challenges facing consumers and businesses alike. Staying informed and prepared for these fluctuations will be crucial for navigating the unpredictable landscape of food prices in the months ahead.

For more info check out Agri-Pulse

Related: USDA forecasts smaller drop in 2024 farm income

McDonald’s Sues Tyson Foods and Others Over Alleged Beef Price Manipulation: What You Need to Know

McDonald’s Legal Action
In a major move against some of the largest meat processors in the U.S., McDonald’s has filed a lawsuit accusing Tyson Foods, JBS, Cargill, and National Beef Packing of colluding to manipulate the beef supply chain and inflate prices. This lawsuit is not an isolated incident but part of a growing trend of accusations against meatpacking giants for allegedly violating antitrust laws by reducing production to artificially raise beef prices.

Allegations of Collusion
The lawsuit claims that these meatpacking companies have been conspiring since January 1, 2015, to deliberately limit beef production. This, McDonald’s argues, has allowed the companies to control market conditions, driving up prices and increasing their profits at the expense of customers. According to McDonald’s, the companies “systematically reduced production levels,” impacting not just McDonald’s but also retailers like Target and Kroger, who have raised similar concerns in recent years.

Big Four Meatpackers
The companies McDonald’s has targeted in its lawsuit—Tyson Foods, JBS, Cargill, and National Beef—are often referred to as the “Big Four” of the beef industry. Together, these companies control about 80% of all fresh and frozen beef sales in the U.S., giving them enormous influence over market pricing. This concentration of market power is central to McDonald’s case, as it alleges that this control enabled the companies to coordinate actions to reduce the supply of slaughtered cattle, thereby driving up beef prices.

Impact on Beef Prices
With such control over the beef supply, McDonald’s alleges that these companies could artificially manipulate the prices of beef to benefit themselves. According to the lawsuit, this resulted in McDonald’s, along with other businesses and consumers, being forced to pay significantly higher prices. The lawsuit calls for a jury trial and seeks unspecified monetary damages, along with an injunction to end the alleged price-fixing.

A Pattern of Legal Scrutiny
This lawsuit is part of a broader legal and regulatory examination of the meat industry. In June 2020, the Department of Justice (DOJ) issued civil subpoenas to investigate these meatpacking companies’ pricing practices, focusing on potential violations of U.S. antitrust laws. Other entities, including cattle ranchers, have also tried to bring legal action against these companies, although they have struggled to provide direct evidence of anti-competitive behavior.

The Road Ahead
McDonald’s is seeking not only compensation but also a ruling that would halt these alleged practices. If successful, this case could have far-reaching implications for the beef industry and the broader food supply chain. The court’s decision could also potentially pave the way for other businesses and even consumers to seek damages or bring similar lawsuits.

Conclusion

As McDonald’s moves forward with its case against Tyson Foods and the other meat giants, it shines a spotlight on an industry that has faced increasing scrutiny over its pricing and business practices. Whether McDonald’s can prove its allegations remains to be seen, but the case adds momentum to the growing calls for transparency and reform within the meatpacking industry.

Food & Beverage Industry NewsletterDate: October 9, 2024

Crops & Animal Feed

  • Bunge: While Bunge’s operations remain stable, political discussions in Kenya’s Senate could affect future policy environments for agriculture. No immediate operational changes are expected.
  • Tyson Foods: Tyson Foods, JBS, and Cargill are involved in a significant lawsuit filed by McDonald’s, accusing them of price-fixing in the beef market. This lawsuit highlights the industry’s complex pricing strategies since 2015.
  • Cargill: Cargill is undergoing internal restructuring following a slowdown in earnings this year. The company aims to simplify operations amid a downturn in commodity markets, particularly in grain and animal feed.

Vegetable & Fruit Produce

  • Greenyard Vegetables: Greenyard USA/Seald Sweet introduced a new line of tropical fruit products at the Global Produce & Floral Show. This includes vibrant, sweet, and savory produce items.
  • Fresh Del Monte: Fresh Del Monte is making headlines with the launch of a new line of single-serve dessert pudding cups in four flavors, catering to convenience-seeking consumers. Additionally, the Rubyglow® pineapple will launch in Europe by 2025.
  • Tesco: Tesco has initiated a new program that will provide over £4 million worth of fruit and vegetables to 400 schools this year, highlighting its continued investment in promoting healthy eating among children.

Animal Protein & Plant-Based Protein

  • Tyson Foods: Tyson Foods is in the spotlight due to its role in a price-fixing lawsuit, alongside JBS and Cargill. The outcome of this case could significantly influence meat pricing across the U.S. and potentially globally.
  • Pilgrim’s Pride: Pilgrim’s Pride stock rose by 1.34%, outperforming broader market expectations. The company continues to thrive despite the challenges within the global protein market.
  • JBS SA: JBS shareholders enjoyed an 81% return over the past year, demonstrating the company’s strong position in the global meat industry. JBS continues to leverage international demand for beef, particularly from emerging markets.

Processed Food & Confectionary

  • Kraft Heinz: Kraft Heinz’s away-from-home business sector saw a 14% growth, driven by partnerships and innovative product lines, expanding its reach beyond the traditional restaurant sector.
  • Nestlé: Nestlé is testing a new paper-based tub for its Quality Street chocolates, a move aimed at reducing plastic waste. This pilot project is being run in select Tesco stores in the UK.
  • Post Holdings: Post Holdings continues to attract investment interest, with Anderson Hoagland & Co. maintaining $3.83 million in holdings. Post is a key player in processed food markets, with a focus on breakfast cereals and snacks.

Beverages

  • Molson Coors: Strikes continue at Molson Coors’ Milwaukee brewery, where 43 machinists are seeking higher wages and better scheduling. The two-week strike has impacted production, raising concerns over supply in the coming weeks.
  • Monster Beverage: Despite a disappointing Q2 with a more than 8% drop in stock value, Monster Beverage remains a dominant player in the energy drink sector. Its acquisition of Bang Energy for $362 million is set to reinforce its market position.
  • Coca-Cola HBC: Coca-Cola HBC is set to benefit from declining sugar prices, which are expected to improve margins by 50 basis points for fiscal year 2025. This reduction in costs is seen as a boost to overall earnings.

Food Packaging & Equipment

  • Middleby Corporation: Middleby is expanding its footprint in bakery processing equipment, competing with major players like Buhler AG. Their innovation is driving growth in automated food processing technologies.
  • Alfa Laval: Alfa Laval is preparing to roll out the first ammonia-fuelled marine vessels by 2025, a significant step in reducing carbon emissions in logistics, which is critical to global food supply chains.
  • Saputo: Saputo has positioned its premium cheese products as a luxury everyday convenience. The company continues to push for growth in its deli cheese offerings, tapping into the trend of higher-end processed food products.

Food Supply Chain & Logistics

  • DB Schenker: DB Schenker launched “Ocean Bridge,” an AI-powered tool for monitoring and optimizing maritime logistics. This is part of a broader strategy to modernize and streamline the global supply chain.
  • Nippon Express: Nippon Express has opened a new Integrated Logistics Center (ILC) in Taiwan, expanding its logistics capabilities in the Asia-Pacific region. The new center aims to enhance efficiency in handling and distribution.
  • C.R. England: C.R. England continues to be a major player in refrigerated transportation and supply chain logistics, supporting the smooth distribution of perishable goods across North America.

Foodservice

  • Aramark: Aramark saw a boost in its stock price, with Stifel raising its target to $43 due to the company’s growth prospects. Aramark is investing heavily in foodservice innovations to meet rising demand across global markets.
  • Gordon Food Service: Gordon Food Service has joined retailers like BJ’s Wholesale Club in accusing meat suppliers, including Tyson, of price-fixing. The lawsuit could affect supply chain costs in the foodservice sector.
  • Panera Bread: Panera Bread has settled its first wrongful death lawsuit linked to its highly caffeinated Charged Lemonade drink. This lawsuit has raised concerns over transparency in beverage offerings across the foodservice industry.

Grocery Retail

  • Carrefour: Carrefour celebrates its 29th anniversary with the “Growing Together” campaign, offering special promotions and customer loyalty incentives. This initiative reflects Carrefour’s focus on long-term customer relationships.
  • Aldi: Aldi is investing over £30 million in British dairy farming through its Dairy Farm Partnership. This ensures 100% of Arla’s fresh milk supply is covered, further enhancing Aldi’s commitment to local sourcing.
  • Tesco: Tesco’s new dessert range, launched ahead of the festive season, includes seasonal offerings such as chilled puddings. The retailer also announced plans to provide £4 million worth of fruit and vegetables to schools, promoting healthy eating among children.

Building Resilient Supply Chains for the Future

As businesses move forward, they must draw on the lessons from the COVID-19 pandemic. Automation is essential for routine operations, but human creativity, foresight, and adaptability will always be necessary to navigate unpredictable challenges. By investing in both resilience and efficiency, companies can safeguard their operations from future disruptions. The key is finding a balance that ensures continuity, no matter what lies ahead.

Human Oversight: The Critical Factor in Crisis Management

Automation plays a crucial role in driving efficiency, but navigating crises like the pandemic requires human insight. Teams must anticipate disruptions, establish contingency plans, and build flexible relationships with suppliers. By combining automation with human oversight, businesses can better position themselves to withstand sudden shocks.

The Role of Automation: Enhancing Flexibility and Efficiency

Technological advances, particularly in AI and machine learning, provide businesses with tools to automate routine tasks, such as demand forecasting and inventory management. These systems can optimize operations and reduce waste, allowing for a more flexible approach to supply chain management. However, automation alone cannot respond to irregular, unpredictable events, making human input indispensable.

Finding the Balance Between Resilience and Efficiency

The trade-off between resilience and efficiency is a pressing issue in today’s volatile world. Lean, highly efficient supply chains may be cost-effective, but they are vulnerable to disruptions. On the other hand, investing heavily in resilience can increase operational costs. Businesses must strike a balance to maintain both profitability and readiness for future challenges.

Illustration of a modern supply chain with robots and human workers optimizing production, using real-time data dashboards to balance efficiency and resilience.

The Shift Toward Resilient Supply Chains

During the pandemic, companies began to realize the importance of resilience. No longer could they focus solely on efficiency; instead, they needed flexible, agile supply chains. Diversifying suppliers, creating redundancies in logistics, and building buffer stocks became essential for mitigating risk. The shift toward resilience was a critical response to the vulnerabilities exposed by the pandemic.

The Vulnerabilities of Lean Supply Chains

COVID-19 revealed the fragility of lean supply chains. Companies that relied on single-source suppliers or narrowly optimized logistics systems faced severe disruptions. Factories shut down, materials became scarce, and shipping routes were bottlenecked. Organizations that hadn’t built redundancies into their operations struggled to meet customer demand, facing revenue loss and reputational damage.

Lean Supply Chains: Optimized but Fragile

Before the pandemic, many companies embraced the lean supply chain model, focusing on reducing excess and fine-tuning operations for maximum efficiency. Kaizen, or continuous process improvement, was central to this approach, supported by real-time data dashboards and centralized control systems. However, these highly optimized supply chains were not designed to cope with the unpredictable disruptions that the pandemic brought.

Introduction: The Pre-Pandemic Lean Supply Chain Model

Before 2020, companies worldwide prioritized lean supply chains, focusing on reducing inventory and improving efficiency. By minimizing waste and ensuring just-in-time (JIT) delivery, they could cut costs and optimize production. However, while this approach offered cost benefits, it left companies vulnerable to unforeseen disruptions—vulnerabilities that the COVID-19 pandemic soon exposed.

For more news and insights: Supply Chain & Logistics

Source: Lessons for Modern Supply Chains

The Daily Food & Beverage Industry Report: Insights and Trends from 2024

The global food and beverage sector has faced numerous shifts in 2024, driven by changing consumer preferences, technological advancements, and evolving sustainability standards. From plant-based innovation to mergers shaping the industry, businesses must stay informed to maintain competitiveness.

1. The Rise of Plant-Based Foods and Regulatory Changes

As consumers increasingly seek healthier and sustainable food options, the plant-based sector continues to expand. Companies are now not only developing plant-based alternatives to traditional meat and dairy but also exploring new ways to label their products. For instance, the European Court of Justice (ECJ) recently ruled that plant-based foods can use meaty terminology, signaling a shift in how these products are marketed. This decision opens doors for food companies to market their plant-based products more aggressively, without facing legal challenges over naming conventions .

2. Mergers and Acquisitions: The Food Industry Grows Bigger

Consolidation in the food industry is on the rise. One notable development was the Mars-Kellanova mega-deal that ignited discussions of further large-scale mergers within the U.S. packaged food sector. While experts suggest that deals of this magnitude may not become commonplace, there’s a growing appetite for transactions in the $1-2 billion range . These mergers could reshape the market, creating larger players capable of tackling global challenges such as sustainability and supply chain efficiency.

3. Advancements in Sustainable Packaging

Sustainability remains a top concern in the food and beverage industry, particularly in packaging. Brands are now exploring new materials and technologies to reduce their environmental footprint. At the recent PACK EXPO, companies showcased flexible and sustainable packaging solutions aimed at reducing waste and increasing efficiency . As consumers demand eco-friendly products, businesses that invest in sustainable packaging will likely see greater customer loyalty and regulatory support.

4. Beverage Trends: Hydration and Non-Alcoholic Innovation

The beverage sector is also experiencing significant innovation, especially in non-alcoholic drinks. In Southeast Asia, hydration-focused beverages are leading the market. Consumers are increasingly looking for drinks that not only quench thirst but also provide functional benefits, such as electrolytes or probiotics. This trend is expected to grow globally as consumers prioritize health and wellness .

5. Technology Transforming Food Production

The adoption of AI and automation in food production continues to accelerate. From optimizing supply chains to improving food safety, technology plays a crucial role in the future of food and beverage manufacturing. Retailers are leveraging AI not just for production but also in enhancing customer experience, as seen in major trade shows like Groceryshop 2024, where technology took center stage .

Conclusion

The food and beverage industry is evolving rapidly, with sustainability, technology, and health driving change. As businesses adapt to meet new demands, staying ahead of trends such as plant-based foods, sustainable packaging, and technological innovations will be key to maintaining market relevance in 2024 and beyond.

Read: Top 10 Global Leaders in Food Packaging for 2023: Innovating for a Sustainable Future

It showcases a blend of global landmarks, eco-friendly packaging materials, and symbols of advanced technology, emphasizing the companies’ global reach…

Sources:

  1. ECJ Ruling: Plant-Based Foods Can Use ‘Meaty’ Terminology
  2. Mars-Kellanova Merger Ignites U.S. M&A Discussions
  3. Sustainable Packaging Innovations at PACK EXPO
  4. 2024 Beverage Trends in Southeast Asia
  5. AI’s Role in the Food Industry at Groceryshop 2024

How Regenerative Agriculture is Transforming the Future of Food Production in the Bakery and Snack Sectors

Regenerative agriculture is more than just a trend; it’s a revolution in how food is produced, focusing on restoring the environment, enhancing biodiversity, and improving soil health. In an era where consumers are increasingly demanding sustainable food products, the bakery and snack industries are leading the charge, utilizing regenerative agricultural practices to secure a greener future. Companies like Wildfarmed, Quinn Snacks, and Puratos are at the forefront, proving that regenerative agriculture is not just a solution for the environment but also a pathway to building resilient supply chains.

What is Regenerative Agriculture?

Regenerative agriculture is a holistic farming practice that seeks to reverse environmental degradation by improving the health of ecosystems. It utilizes techniques like crop rotation, reduced tillage, and cover cropping to restore soil health, increase biodiversity, and sequester carbon from the atmosphere. Unlike conventional farming, which often depletes soil nutrients and contributes to carbon emissions, regenerative agriculture actively restores the environment.

The bakery and snack industries are particularly well-suited for this transformation, as many of the crops used in these sectors, such as wheat, corn, and almonds, can be grown using regenerative methods. In addition to environmental benefits, regenerative agriculture reduces the need for synthetic inputs like fertilizers and pesticides, making it a more cost-effective solution in the long term.

Why Regenerative Agriculture Matters

As concerns about climate change and environmental sustainability continue to grow, regenerative agriculture is emerging as a crucial solution to these challenges. It does more than minimize harm—it actively improves ecosystems by rebuilding soil fertility, enhancing water retention, and promoting biodiversity. According to a report from Puratos, 64% of global consumers are now seeking products that are produced sustainably, and regenerative agriculture is playing a pivotal role in meeting these expectations.

One of the critical insights from Nestlé Professional’s recent report—Unlocking the Community Benefits of Regenerative Agriculture from Field to Fork—is that farms adopting regenerative principles are seeing substantial financial benefits. These farms have reported income increases of up to 49%, thanks to reduced input costs and stronger community connections. This highlights that regenerative agriculture isn’t just beneficial for the environment—it also makes economic sense for farmers.

Katya Simmons, Managing Director of Nestlé Professional UK&I, emphasizes the broader impact: “By strengthening local ecosystems, improving livelihoods, and fostering community resilience, regenerative practices can make a real, lasting impact.” This underscores the transformative potential of regenerative agriculture not only for the food system but also for the communities that depend on it.

Bakery and Snack Sectors: Leading the Charge

Several companies in the bakery and snack sectors are pioneering the adoption of regenerative agriculture, recognizing that sourcing ingredients from regenerative farms aligns with consumer preferences for environmentally friendly products. This shift is essential for staying competitive in a marketplace increasingly defined by eco-consciousness.

Wildfarmed: Pioneering Regenerative Flour

Wildfarmed is one of the most prominent names in regenerative agriculture within the bakery industry. Founded in 2019, the UK-based initiative works with over 100 farmers across the UK and France to grow wheat without the use of pesticides or herbicides. This approach promotes biodiversity and enhances soil health, ensuring that the flour produced is not only of high quality but also environmentally sustainable.

Today, Wildfarmed’s flour is used by over 500 brands, including well-known names like ASK Italian, Franco Manca, and Waitrose. From sourdough bread to pizza bases, Wildfarmed’s regenerative flour is helping to reshape the bakery sector, proving that sustainability and quality can go hand in hand.

Puratos: Partnering for Sustainability

Puratos UK has made significant strides in integrating regenerative agriculture into its supply chain. By launching sourdough products made from regeneratively farmed flour, Puratos has set a new standard for sustainability in the bakery industry. The company has partnered with UK farmers to grow crops like rye and spelt using regenerative methods.

As Francesca Angiulli, Puratos’ sustainability director, explains, the company has teamed up with cooperatives like Cultivae and Farm for Good to support farmers transitioning to regenerative practices. These collaborations not only ensure a sustainable supply chain but also provide farmers with fair compensation, making it easier for them to invest in regenerative techniques.

Quinn Snacks: Innovating in the Snack Sector

In the snack sector, Quinn Snacks is a leader in the regenerative agriculture movement. Known for its pretzels and popcorn, the Boulder, Colorado-based company has partnered with farmers like Steve Tucker, who grows sorghum using regenerative methods. “Regenerative agriculture not only improves crop health but also creates more resilient supply chains,” says Kristy Lewis, founder of Quinn Snacks.

The company is also part of the Soil Carbon Initiative, which encourages farmers to adopt regenerative practices that improve soil health and climate resilience. By focusing on crops like sorghum, Quinn is proving that regenerative agriculture can be applied across different types of farming, creating a more diverse and sustainable food system.

Regenerative Agriculture’s Broader Impact

The benefits of regenerative agriculture extend beyond the farm. By sourcing ingredients from regenerative farms, bakery and snack producers can reduce their environmental footprint, improve product quality, and build stronger relationships with consumers who prioritize sustainability.

Bertie Matthews of Matthews Cotswold Flour notes, “One of the benefits of a regenerative system is that the production costs for the farmers should be lower.” This reduction in costs comes from the decreased need for synthetic inputs like fertilizers and pesticides, making regenerative agriculture a more cost-effective and sustainable practice.

Moreover, regenerative agriculture improves the long-term viability of soil, ensuring a stable supply of high-quality ingredients for years to come. Bob Gladstone of Silvery Tweed Cereals adds, “Regenerative farming results in a broader mix of grains being grown and improves soil health,” further highlighting the resilience this farming method offers in the face of climate change and environmental degradation.

The Time for Action is Now

The bakery and snack sectors have a unique opportunity to drive positive environmental and social change by investing in regenerative agriculture. Not only does this practice offer a way to produce more sustainable and resilient food systems, but it also aligns with the growing consumer demand for products that are both eco-friendly and ethically sourced.

As Katya Simmons of Nestlé Professional UK&I aptly states, “Regenerative agriculture has the power to transform not only our food systems but also the communities they support.” The time for businesses to take action is now, and the rewards—both for the planet and for the industry—are clear.

Conclusion: A Sustainable Future for Food Production

Regenerative agriculture represents a fundamental shift in how food is grown, moving beyond sustainability to actively improve the environment. For the bakery and snack industries, adopting these practices offers not only environmental and economic benefits but also a way to meet the growing demand for sustainability from consumers. As companies like Wildfarmed, Quinn Snacks, and Puratos lead the way, it’s evident that regenerative agriculture is the future of food production—and it’s one that benefits everyone involved, from farmers to consumers to the planet.

AD Retail Media Partners with Vibenomics In-Store Audio

As the world of retail continues to evolve with technology and data-driven solutions, AD Retail Media is making waves by introducing a cutting-edge in-store audio solution across Ahold Delhaize USA banner stores. This initiative, announced Thursday, is designed to enhance in-store retail media strategies by giving brands the ability to reach customers in a highly personalized and impactful way. Through a collaboration with Vibenomics, the new system empowers CPG (Consumer Packaged Goods) partners to fine-tune their in-store advertising campaigns using data and insights to create an engaging and multi-sensory shopping experience.

The Future of In-Store Advertising

In-store retail media has rapidly become a focal point for retail strategies, and Ahold Delhaize is doubling down on this trend as part of its 2024 advancements. The newly launched in-store audio solution provides CPGs with a platform to develop tailored audio strategies that are played directly to shoppers while they browse the aisles of Food Lion, Giant Food, The Giant Company, and Stop & Shop stores. This move builds on the company’s pre-existing in-store advertising capabilities, offering CPGs yet another way to engage customers during their shopping experience.

Creating Personalized and Data-Driven In-Store Audio

The collaboration between AD Retail Media and Vibenomics marks an exciting leap forward in the ability to customize advertising messages based on real-time data. Vibenomics’ technology offers detailed insights into omnichannel measurement and provides CPG partners with analytics to develop personalized audio messages. These messages can be targeted based on product type, geographical market, time of day, and customer demographics, allowing advertisers to be highly strategic in their approach.

According to the announcement, each brand partner’s audio spot will play twice per hour, ensuring maximum exposure during a shopper’s average 30-minute visit to an ADUSA brand store. This cadence ensures that customers have multiple opportunities to hear the messages, increasing the likelihood of a product grab or purchase based on the ad.

Bobby Watts, senior vice president at AD Retail Media, emphasized the agility of these audio channels, noting that they can be adapted in real-time to respond to current customer needs and trends. For example, during a heat wave, the channels could be utilized to promote cold beverages or frozen treats, driving sales of specific categories based on environmental factors. Similarly, new product launches can be effectively promoted, driving both brand awareness and immediate action in-store.

Building on the Connected Store Initiative

This new audio solution is the latest addition to AD Retail Media’s ongoing Connected Store initiative, which aims to bolster retail media efforts across in-store, on-site, and off-site channels. As part of this comprehensive approach, AD Retail Media is working to deliver a seamless and cohesive shopping experience, where omnichannel strategies are optimized for engaging consumers across multiple touchpoints.

Over the years, grocery stores have been incorporating interactive sampling kiosks, cooler screens, and digital aisle banners to create a more dynamic shopping environment. The integration of in-store audio ads adds yet another dimension to this evolving media landscape, ensuring that brands can reach consumers through multiple sensory experiences.

Vibenomics’ Proven Track Record

The partnership with Vibenomics is a logical step for Ahold Delhaize and AD Retail Media, as Vibenomics has been a leader in in-store audio advertising for years. Back in 2020, Kroger partnered with Vibenomics to launch a targeted audio ad network across its stores, delivering highly specialized and localized audio messaging to shoppers. Similarly, in 2022, Hy-Vee followed suit, adopting Vibenomics’ audio platform to play targeted advertisements throughout its grocery stores.

These partnerships have demonstrated the effectiveness of audio advertising in driving in-store engagement and sales. Vibenomics has proven that audio ads provide a unique opportunity to communicate directly with shoppers while they are actively making purchasing decisions. The ability to control what shoppers hear, coupled with Vibenomics’ real-time data and analytics, ensures that each message is tailored to be as impactful as possible.

The Role of Data in Enhancing Audio Advertising

One of the key differentiators in the AD Retail Media and Vibenomics collaboration is the data-driven nature of the in-store audio solution. By leveraging data on shopper behavior, purchasing trends, and market conditions, the system can fine-tune its audio messaging to optimize effectiveness. Vibenomics’ technology allows CPGs to track the impact of their audio ads in real-time, measuring results across multiple metrics.

For instance, a brand promoting a cold beverage could see a spike in sales during a heat wave, with the audio ads driving immediate customer purchases. Similarly, by adjusting the messaging based on time of day, such as promoting breakfast products in the morning or snacks in the afternoon, brands can deliver highly relevant content to shoppers at exactly the right moment.

This level of precision targeting is made possible by the omnichannel measurement tools that Vibenomics provides. These insights allow brands to develop a holistic media strategy that goes beyond traditional advertising to create an immersive and multi-sensory in-store experience.

A Look Ahead: The Future of Retail Media

As in-store retail media continues to evolve, it’s clear that the future of advertising lies in the ability to personalize and optimize messaging based on real-time data. The collaboration between AD Retail Media and Vibenomics represents a new frontier in how brands can engage with consumers during their shopping journeys.

With audio ads being played throughout stores, and Vibenomics’ real-time insights offering actionable data, CPG partners have the flexibility to adapt to changing market conditions, seasonal trends, and consumer preferences. This allows for greater agility in media strategies and ensures that every touchpoint, whether visual or auditory, is maximized for impact.

In a competitive retail landscape, the ability to create a multi-sensory experience for shoppers will be a key differentiator. As audio ads continue to gain traction, grocery stores will likely see increased engagement and sales driven by the enhanced shopping experience.

As Ahold Delhaize USA rolls out this new in-store audio solution across its brand stores, the partnership with Vibenomics marks an exciting step forward in retail media innovation. Brands now have another powerful tool at their disposal to connect with shoppers, and the future of in-store advertising is set to be more dynamic and personalized than ever before.

USDA Weekly Beef and Pork Export Sales Surge: A Closer Look at the U.S. Meat Export Landscape

The U.S. beef and pork export markets have experienced significant movement in recent weeks, signaling a robust demand for American meat products. The latest USDA export sales report showcases notable increases in both beef and pork sales for 2024, reflecting strong demand from key global markets. Here’s a deep dive into the numbers, factors driving these exports, and the broader implications for the U.S. and global meat industry.

Beef Exports: Surging Demand from Key Asian Markets

In the week under review, net beef sales reached 22,500 metric tons (MT) for 2024, a substantial increase from the previous week and a staggering 68 percent higher than the four-week average. The main destinations for U.S. beef were South Korea (7,900 MT), China (6,200 MT), Mexico (2,800 MT), Japan (2,600 MT), and Taiwan (1,000 MT). These nations have long been key importers of U.S. beef, with South Korea and China leading the pack.

Exports were equally strong, with 17,700 MT shipped out—a marketing-year high—up by 42 percent from the prior week. The increase in exports reflects not only growing international demand but also the competitiveness of U.S. beef in these markets. South Korea, Japan, China, Mexico, and Taiwan remain the largest importers, accounting for most of the shipments.

Pork Exports: A Booming Market, Led by Mexico

While beef sales were impressive, pork export sales for 2024 surged even higher, with net sales totaling 43,400 MT, a 55 percent rise from the previous week and a 61 percent boost from the prior four-week average. The primary buyers of U.S. pork were Mexico (24,000 MT), China (7,900 MT), Canada (2,900 MT), South Korea (2,000 MT), and Japan (1,500 MT).

Mexico continues to dominate U.S. pork imports, as it accounted for the lion’s share of the export volume. However, the sales to China and Canada reflect the global appeal of U.S. pork, even amid competition from other pork-exporting nations. While exports to Japan and South Korea remained modest, the consistent demand from these countries provides a solid foundation for future growth.

Iowa AG Challenges Massachusetts Pork Law: The Impact on Interstate Commerce

In other significant news affecting the U.S. pork industry, Iowa Attorney General Brenna Bird led a coalition of 22 states in filing an amicus brief to challenge a Massachusetts law—Question 3 (Q3)—that enforces minimum size requirements for farm animal containment. The law, which is similar to California’s Proposition 12, prohibits the sale of pork from hogs that don’t meet Massachusetts’ containment standards.

Bird argues that Massachusetts is overstepping its bounds by effectively dictating how farmers in other states should raise their animals. The ban on transporting non-compliant pork through Massachusetts further complicates interstate commerce, potentially raising pork prices and placing additional burdens on farmers.

This legal battle underscores the growing tension between states with differing agricultural standards and the broader issue of balancing animal welfare regulations with market access and costs.

China’s Sow Herd Declines: Shifting Dynamics in Global Pork Production

China, the world’s largest pork producer and consumer, continues to experience a decline in its sow herd. As of August, China’s sow herd stood at 40.36 million head, representing a 4.8 percent year-on-year decrease. This contraction is being driven by a combination of low pork prices, lingering diseases such as African swine fever (ASF), and an oversupply of pork from aggressive herd expansion in previous years.

Despite this decline, China remains a significant player in the global pork market, with 695 million head of swine expected to be produced in 2024. The ongoing shift toward large-scale production in China, coupled with improved efficiency in weaning piglets, is expected to help mitigate some of the effects of the shrinking sow herd.

FDA Commissioner Warns of Avian Flu Pandemic Risk

Meanwhile, in the U.S., FDA Commissioner Robert Califf has raised concerns about a potential avian flu pandemic. The commissioner highlighted that the virus has already infected a significant number of dairy cattle in the U.S., and should the virus mutate to infect humans, it could lead to a major health crisis.

Califf stressed the need for enhanced surveillance systems to monitor and contain any potential outbreaks, as well as efforts to update food labeling regulations. These initiatives are part of a broader effort to protect both public health and food safety amid evolving risks from animal diseases.

USDA Reports Bearish on U.S. Hog Market: A Mixed Outlook

The USDA’s Hogs & Pigs Report presented a somewhat bearish outlook for the U.S. hog market. As of September 1st, the U.S. hog herd was estimated at 76.480 million head, a 0.5 percent increase from the previous year. The breeding herd, however, declined by 2.2 percent, while the market hog inventory rose modestly.

The report noted that while the summer pig crop fell slightly, productivity improvements, such as more piglets per litter, helped offset the decline. Despite the neutral-to-bearish outlook, frozen meat stock data points to sustained demand, particularly for pork.

China Moves to Support Struggling Cattle Farmers Amid Oversupply

In response to an oversupply of beef and dairy products, China has taken measures to stabilize its cattle industry. The Ministry of Agriculture and Rural Affairs (MARA) has introduced a series of initiatives aimed at reducing feed costs, offering credit to key farms, and investing in dairy processing. These efforts are intended to shore up prices and prevent further herd liquidation, though no new subsidies or reserve purchases were announced.

The focus remains on ensuring food security, rather than profits, with local governments encouraged to issue consumer coupons to boost milk demand. The market reacted positively, with a surge in dairy company stocks, reflecting optimism about the sector’s recovery.

Conclusion: A Dynamic Week for U.S. and Global Meat Markets

The latest USDA data on U.S. beef and pork export sales highlights the continued strength of American meat in global markets, with strong demand from major players like South Korea, China, and Mexico. However, the industry also faces challenges, including regulatory battles such as the one over Massachusetts’ Q3 law, and health threats like avian flu, which could have significant implications for the global food supply.

On the global stage, China’s efforts to stabilize its pork and cattle markets, amid declining sow herds and oversupply, reflect the complex dynamics at play in the meat industry. As these trends unfold, the U.S. meat sector will need to adapt to both opportunities and challenges in this ever-shifting global landscape.

Posted on Author Categories Poultry

ECJ Ruling: Plant-Based Foods Can Use ‘Meaty’ Terminology

The European Court of Justice has ruled that EU member states cannot ban the use of ‘meaty’ terminology for plant-based foods. This decision allows vegetarian products to use terms like steak and burger, provided no specific legal name exists.

In a significant ruling on October 4, 2023, the European Court of Justice (ECJ) declared that EU member states cannot prohibit food manufacturers from labeling vegetarian products with ‘meaty’ terms such as steak, sausage, escalope, and burger. This decision affirms that as long as a country has not established a specific legal name for vegetable protein-based foods, manufacturers are free to use these descriptors.

Background of the Case

The ruling follows France’s attempts to ban the use of meat-related terminology for plant-based foods. In February, the French government sought to implement restrictions on domestic manufacturers, continuing efforts from a similar decree proposed in 2022. The move sparked a legal challenge from several organizations, including Protéines France, the European Vegetarian Union (EVU), the Vegetarian Association of France (AVF), and the prominent meat-alternative company Beyond Meat.

These groups argued that the French government’s restrictions infringed upon existing EU laws that already provide adequate consumer protection. The case was subsequently brought before the ECJ for a definitive ruling.

ECJ Findings

The ECJ’s decision emphasizes that while EU member states retain the authority to establish legal names for food products—allowing them to assign specific terms to various food items, including plant-based alternatives—they cannot impose bans on the use of general descriptive terms if no such legal name exists. The court’s ruling reinforces the principle that the existing EU legislation sufficiently protects consumers, negating the need for additional national regulations that would limit the labeling of vegetable protein products.

According to the EVU, this ruling not only supports the rights of manufacturers in the plant-based sector but also encourages a diverse marketplace where consumers can easily identify and choose plant-based options.

Implications for the Plant-Based Market

This decision marks a pivotal moment for the growing plant-based industry within the EU. By allowing manufacturers to use familiar terms that resonate with consumers, the ruling can help bridge the gap between traditional meat products and plant-based alternatives. This is particularly important as the demand for vegetarian and vegan options continues to rise among consumers seeking healthier and more sustainable food choices.

Moreover, the ruling may also have broader implications for food labeling and marketing practices across Europe. As the market for plant-based products expands, the clarity and accessibility of labels could play a crucial role in shaping consumer preferences and purchasing behavior.

Conclusion

The ECJ’s ruling stands as a landmark decision in the ongoing evolution of food labeling laws within the European Union. By affirming that vegetarian products can utilize ‘meaty’ terminology, the court has paved the way for a more inclusive and transparent food market. As consumers increasingly seek out plant-based alternatives, this ruling will likely contribute to the continued growth and acceptance of these products across Europe.

For businesses and consumers alike, the implications of this ruling signal an exciting shift in the food landscape, promoting greater choice and innovation in the plant-based sector.

Project Café USA 2025: Insights into the Branded Coffee Shop Market

Project Café USA 2025 reveals the US branded coffee shop market has grown to $54 billion, with over 42,700 outlets. Despite strong growth, operators face challenges from high inflation and rising competition, emphasizing the need for value.

World Coffee Portal’s Project Café USA 2025 report reveals a dynamic landscape for the US branded coffee shop market, which now boasts a staggering $54 billion in value and encompasses over 42,700 outlets operating under 500 unique brands. While most operators are enjoying year-on-year sales growth, industry leaders are proceeding with caution in light of high inflation, fluctuating consumer confidence, and the pressure of rising value-focused competition.

Strong Growth Amid Challenges

The branded coffee shop market in the US has experienced robust post-pandemic growth, adding 2,062 net new outlets in the past year, a 5% increase that brings the total to 42,773 stores. Major players like Starbucks and Dunkin’ continue to expand their footprints, while emerging chains such as Dutch Bros and Scooter’s Coffee have each opened over 100 new locations. Notably, Arkansas-based 7 Brew has emerged as the fastest-growing chain by outlet count, reflecting the intense competition within the sector.

In total, World Coffee Portal identifies 500 distinct branded chain concepts in the US market. The last year saw six new entrants, including Italy’s Café Barbera, the UK’s WatchHouse and Black Sheep Coffee, as well as Vietnam’s Trung Nguyên Legend. Additionally, 44 independent US coffee shops successfully transitioned to branded chain status by surpassing five locations, indicating a vibrant market ripe for innovation and diversification.

Pricing Pressures and Consumer Behavior

Despite the impressive outlet growth, US coffee chains are grappling with significant pricing pressures stemming from rising property, labor, and green coffee costs. Over the past year, many have raised prices, with the average cost of a 16oz latte now exceeding $5. In some cases, blended frappes of the same size are priced at over $6. As inflation bites, operators are exercising caution regarding further price increases, particularly as consumers become more discerning about discretionary spending.

The need for value has become a critical battleground in the competitive landscape. Market leaders like Starbucks and Dunkin’ have responded by introducing lower-cost food and beverage options to counteract the rising competition from value-focused non-specialist operators such as McDonald’s and 7-Eleven. This shift highlights the necessity for brands to adapt to consumer preferences while maintaining profitability.

Long-Term Growth Potential Despite Short-Term Challenges

While the current environment presents hurdles, many operators remain optimistic about the future. A survey conducted by World Coffee Portal found that only 39% of industry leaders expect trading conditions to improve within the next year, reflecting a near 20% decline from the previous year. A fifth of respondents anticipate a deterioration in market conditions, signaling underlying concerns.

However, despite the short-term outlook, 82% of surveyed industry leaders believe that there is significant growth potential for branded coffee chains in the US. World Coffee Portal forecasts a compound annual growth rate (CAGR) of 3.7% for the total US branded coffee shop market over the next five years, predicting it will surpass 59,900 outlets by 2029. Total sales are expected to exceed $72 billion in the same timeframe, with a CAGR of 5.9%.

Industry Expert Insights

Jeffrey Young, Founder and CEO of Allegra Group, expressed optimism regarding the findings of Project Café USA 2025. He noted, “I’m encouraged to see that both larger chains and boutique concepts are demonstrating strong growth in the robust US branded coffee shop market. There continues to be a tremendous thirst for coffee across the US, with the growing popularity of iced beverages and a shift towards indulgence providing fuel for the next generation of coffee shop consumers. I’ve no doubt there remains plenty of room for growth in this behemoth market.”

Project Café USA 2025 serves as the definitive annual study of the US branded coffee shop market, encompassing all 50 states. The comprehensive research includes market sizing, sector-by-sector insights, beverage pricing, brand profiles, and an in-depth survey of over 5,000 US coffee consumers.

Average newbuild price in 2024 cracks $90m, 30% above previous high

A Banner Year for Asian Shipbuilders: The Surge in Newbuild Prices

2024 has proven to be a remarkable year for Asian shipbuilders, with newbuild prices reaching unprecedented heights. According to the latest data from Clarksons Research, the average price for new vessels has soared to $90 million, a staggering 30% increase from the previous record set in 2022. This marks a significant departure from the last decade’s average of around $50 million, highlighting a transformative period for the shipbuilding industry.

Factors Driving Price Increases

Several key factors contribute to this surge in newbuild prices. Primarily, the increasing deployment of green technologies plays a vital role. As global environmental standards tighten and the shipping industry faces mounting pressure to reduce its carbon footprint, shipbuilders are investing heavily in sustainable technologies. This includes the integration of alternative fuels, advanced energy efficiency systems, and environmentally friendly materials, all of which add to the construction costs.

In addition to sustainability, the shift in the types of vessels being ordered has also driven prices upward. Owners are increasingly opting for larger, more complex ships that can accommodate the growing demands of global trade and passenger transport. The average size of vessels ordered this year stands at an impressive 54,000 gross tonnage (gt), marking a record high and representing a 40% increase over the ten-year average. This trend underscores a significant shift in market dynamics, as shipowners seek to maximize efficiency and capacity in a competitive marketplace.

Furthermore, the composition of the newbuild orders reflects a higher value product mix. Almost 50% of the tonnage ordered this year consists of higher-cost ship types, such as gas carriers, containerships, and cruise ships. In contrast, the average across the 2010s for such vessels was merely 28%. This transition not only points to the increasing sophistication of the industry but also indicates a broader economic recovery, as demand for luxury and specialized shipping services grows.

Strong Ordering Trends

The momentum in newbuild contracts has been robust, with shipyards across Asia witnessing a significant uptick in orders this year. In the first nine months alone, the volume of contracted tonnage reached 93.6 million gross tonnage (gt), already surpassing the total figures for 2022 and 2023. With Clarksons forecasting over 100 million gt to be contracted by the end of the year, the shipbuilding sector is poised for an exceptional year, albeit still below the all-time high of 172 million gt recorded in 2007.

This resurgence can be attributed to several factors, including the global economic rebound following the pandemic, heightened demand for shipping capacity, and the strategic positioning of Asian shipbuilders. Countries like South Korea, Japan, and China, renowned for their shipbuilding prowess, are capitalizing on these trends, attracting clients looking for quality and advanced technology.

Challenges Ahead

Despite the positive outlook, the shipbuilding industry faces challenges that could impact its momentum. Supply chain disruptions, exacerbated by geopolitical tensions and fluctuating raw material prices, remain a significant concern. These factors can lead to delays in production and increased costs, which may deter some owners from placing orders. Furthermore, while the demand for larger, more sophisticated vessels is rising, the transition to green technologies can be a double-edged sword. Shipbuilders must navigate the complexities of new regulations and the costs associated with implementing innovative solutions.

Additionally, the competition among shipbuilders is intensifying. While Asian shipbuilders currently dominate the market, there is a growing interest from European and American yards to reclaim some of their lost market share. This could lead to increased competition, potentially influencing pricing and order volumes in the coming years.

The Road Ahead

Looking ahead, the outlook for Asian shipbuilders remains optimistic. The sustained demand for new vessels, driven by global trade expansion and the ongoing shift toward sustainability, indicates that the industry is well-positioned for growth. As shipowners continue to prioritize efficiency, capacity, and environmental compliance, the trend towards larger and more technologically advanced ships is likely to persist.

Moreover, as international shipping evolves, shipbuilders that can effectively integrate cutting-edge technologies and sustainable practices into their designs will likely lead the market. Investment in research and development, along with collaborations with technology providers, will be crucial in maintaining competitive advantages.

In conclusion, 2024 stands as a banner year for Asian shipbuilders, with newbuild prices reaching record highs and order volumes robust across various sectors. While challenges remain, the combination of rising demand for advanced vessels and the industry’s commitment to sustainability bodes well for the future. As the shipping landscape continues to transform, Asian shipbuilders are not only adapting but thriving, positioning themselves as leaders in the global maritime industry.

Conagra Brands Reports First-Quarter Profit

Conagra Brands reports a 46% profit increase in Q1 2025 despite plant disruptions and lower sales across segments, with a focus on reshaping its product portfolio.

Introduction: Conagra Brands Swings to Profit Amid Mixed Results

Conagra Brands Inc. has reported a significant turnaround in its fiscal 2025 first-quarter earnings, with a profit increase of 46% compared to the same period last year. This recovery comes after a challenging fourth quarter of fiscal 2024, where the company posted a net loss. For the quarter ending August 25, 2024, Conagra’s net income rose to $466.8 million, equal to 97 cents per share, from $319.7 million, or 67 cents per share, a year earlier. Despite these gains, adjusted net earnings dropped, and sales across all business segments showed declines, with production halts at Conagra’s Hebrew National hot dog plant contributing significantly to the negative figures.

Hebrew National Plant Disruption: A Major Impact on Sales

One of the major challenges Conagra faced in Q1 2025 was a temporary manufacturing disruption at its Hebrew National hot dog plant, which occurred during the peak grilling season. The plant’s pause in production resulted in a notable drop in sales for the Hebrew National brand, down by 47% for the quarter.

Sean Connolly, Conagra’s President and CEO, explained that the plant halt led to an estimated $24 million loss in the Refrigerated and Frozen business segment. “While we were able to fully resume plant operations, the temporary manufacturing pause resulted in lost sales,” Connolly said. He further noted that this disruption had a considerable impact on total organic net sales and volume, contributing to a 60-basis-point reduction in total volume and a 90-basis-point reduction in total organic net sales during the quarter.

The timing of the disruption was particularly unfortunate, likened by Connolly to “getting a flat tire on the way to your wedding.” However, he expressed confidence that the majority of the financial impact would be contained within the first quarter.

Refrigerated and Frozen Segment: Struggles and Gains

The disruption at the Hebrew National plant heavily impacted Conagra’s Refrigerated and Frozen segment, one of the company’s key business units. Net sales for the segment fell by 5.7% to $1.1 billion in the first quarter, with a price/mix decrease of 5.8% and a volume increase of just 0.1%. Excluding the Hebrew National brand, the segment’s sales would have dropped by 3.6%, reflecting a more manageable decline.

Despite these setbacks, Conagra managed to gain frozen food dollar share in several key categories, including single-serve meals, multi-serve meals, breakfast, and vegetables. Connolly noted a 1.9 percentage point gain in single-serve meals, the company’s largest frozen category, boosting Conagra’s share in the $6.5 billion single-serve meal market to 51%. “Our investments have enabled us to drive steady share improvement in this category throughout fiscal ’24, and we built upon that success during the first quarter of fiscal ’25,” Connolly said.

Grocery and Snacks Unit: Holding Steady Amidst Declines

Conagra’s Grocery and Snacks segment saw a modest decline in net sales, down 1.7% to $1.2 billion in the first quarter. Organic net sales also fell by 1.9%, driven by a 0.1% decrease in price/mix and a 1.8% drop in volume. Despite the overall decline, the company reported growth in several key snacking categories, including microwave popcorn, seeds, pudding, and pickles.

The snacks portfolio performed particularly well, with a 1.2% volume gain compared to a 0.9% decrease for the overall snacks category. Connolly attributed this success to Conagra’s advantaged portfolio of on-trend, permissible snacking options such as meat snacks, popcorn, and seeds. Brands like Slim Jim, Duke’s, and Angie’s Boomchickapop led the charge in the snacking segment, benefiting from consumer preferences for low-carb, protein- and fiber-rich snacks.

The recent acquisition of Sweetwood Smoke & Co. added the Fatty Smoked Meat Sticks brand to Conagra’s meat snacks portfolio, further bolstering its leadership in the high-margin meat snacks category.

Foodservice and International Segments: Mixed Results

Conagra’s Foodservice segment experienced a sharp decline, with net sales down 7.8% to $267 million and operating profit dropping 20% to $35 million. The company attributed the drop in sales to the lingering effects of the COVID-19 pandemic and the resulting changes in consumer behavior, including reduced restaurant traffic. However, Conagra did manage to sustain its Foodservice margins at pre-pandemic levels, a sign of effective cost management.

In contrast, the International segment posted relatively strong results. While net sales were down slightly by 0.4% to $259 million, organic net sales grew by 3%, driven by gains in price/mix and volume. The Global Exports business performed particularly well, contributing to a 42% rise in operating income for the International segment.

Strategic Outlook: Portfolio Reshaping and Growth Focus

Looking ahead, Conagra remains focused on reshaping its product portfolio to drive future growth and margin expansion. CEO Sean Connolly highlighted the company’s ongoing efforts to modernize its brands, invest in innovation, and explore mergers and acquisitions (M&A). The August acquisition of Sweetwood Smoke & Co. and the divestiture of its majority stake in India-based Agro Tech Foods Ltd. are recent examples of this strategy in action.

“Consumer tastes and habits are constantly changing, and we continuously evaluate opportunities to reshape our portfolio to position the company for further growth and margin expansion,” Connolly explained. He also indicated that Conagra is actively assessing opportunities for value-accretive divestitures or spins to optimize its portfolio.

Conclusion: Conagra’s Path to Recovery

Conagra Brands’ fiscal 2025 first-quarter results reflect both the company’s resilience and the challenges it continues to face. The temporary disruption at the Hebrew National plant, coupled with declines across several business segments, resulted in missed sales targets. However, the company’s ability to maintain profitability, gain market share in frozen foods and snacks, and pursue strategic acquisitions positions it well for the future.

As Conagra continues to navigate the complexities of consumer preferences, production disruptions, and market competition, its focus on portfolio reshaping and innovation will be critical to sustaining long-term growth. With plans for sequential volume recovery and margin improvement in the coming quarters, the company is optimistic about its prospects for fiscal 2025.

For more insights and updates on Conagra’s performance, stay tuned for the next quarterly report.

Posted on Author Categories Meat

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

Brazil’s Poultry Prices Drop Against Record Production & Strong Export Performance

Brazil’s chicken meat production hit record highs in Q2 2024, but prices fell despite strong export performance due to oversupply in the market.

Introduction: A Challenging Quarter for Brazil’s Chicken Meat Industry

The second quarter of 2024 presented a mixed bag for Brazil’s chicken meat industry. While export performance remained robust, the sector experienced a significant decrease in domestic chicken meat prices. This was largely due to a record-breaking level of production, according to a market report from Cepea. Despite Brazil’s chicken exports continuing to perform well, the sheer volume of supply weighed heavily on market prices, presenting challenges for producers.

Record Production Pushes Prices Down

According to data from the Brazilian Institute of Geography and Statistics (IBGE), chicken meat production in Brazil reached an all-time high in the second quarter of 2024. A total of 1.6 billion animals were slaughtered during this period, representing a 1% increase compared to the first quarter of the year and a 3.2% rise from the same period in 2023.

This unprecedented production volume flooded the domestic market with supply, which significantly impacted prices. Chicken meat quotations dropped notably as the market struggled to absorb the oversupply. The IBGE report highlighted that the last time the sector saw such a substantial increase in production was in 1997, underlining the exceptional nature of the current situation.

Strong Export Performance Isn’t Enough to Offset Domestic Challenges

One of the key factors buoying Brazil’s chicken meat sector in recent years has been its export performance. The second quarter of 2024 was no exception, with exports performing strongly and contributing to the industry’s overall growth. Brazil is a leading exporter of chicken meat, supplying major global markets such as the Middle East, Asia, and Europe.

However, even with these strong export numbers, the domestic market’s oversupply meant that producers faced difficulty maintaining price levels. While international demand remains strong, it was not enough to counterbalance the massive increase in production. The price drop in Brazil’s domestic market is a stark reminder that even high export demand cannot always stabilize internal market prices when production exceeds expectations.

A Look Ahead: What’s Next for Brazil’s Chicken Meat Market?

As the chicken meat sector heads into the final quarter of 2024, market players will be closely watching whether production levels will adjust to better align with demand. Brazil’s poultry producers may need to consider strategies to manage output more effectively to avoid further price declines. Additionally, while export demand remains strong, any shifts in global trade conditions could further impact Brazil’s chicken meat prices.

The key challenge for the sector will be balancing the need to meet growing international demand with managing domestic production levels to avoid oversupply. If production continues at record levels without a corresponding increase in domestic or international demand, the industry could face continued pressure on prices, potentially squeezing profit margins for producers.

Conclusion: A Mixed Quarter for Brazil’s Chicken Meat Sector

The second quarter of 2024 was a period of contrasts for Brazil’s chicken meat industry. On the one hand, the sector celebrated record-breaking production levels and solid export performance. On the other hand, these gains were overshadowed by a significant drop in domestic prices, driven by oversupply in the market.

As the industry moves forward, producers will need to focus on strategies to manage output and stabilize prices. Whether through adjusting production levels or exploring new markets for exports, the sector must find ways to navigate the challenges posed by high production levels and fluctuating demand. With strong export markets as a foundation, Brazil’s chicken meat industry is well-positioned to recover, but careful management will be essential to ensuring long-term stability.

Posted on Author Categories Poultry

McDonald’s Unveils Chicken Big Mac

McDonald’s Unveils Chicken Big Mac as LTO Innovation: A New Twist on an Iconic Classic

McDonald’s introduces the Chicken Big Mac as an exciting Limited-Time Offering (LTO) on October 10, paying homage to the original Big Mac while targeting a new generation of fans.

A New Spin on a Classic Favorite

McDonald’s is about to give its iconic Big Mac a new twist. In a bold move to both honor its history and attract modern food lovers, McDonald’s revealed that it will launch the Chicken Big Mac on October 10, 2024, as a Limited-Time Offering (LTO). With this innovative take on a classic, McDonald’s continues to evolve its menu while staying true to the brand’s core identity. Tariq Hassan, McDonald’s USA Chief Marketing and Customer Experience Officer, said the sandwich is part of a strategy to tap into key consumer passions, such as “dupe culture” and social media engagement, proving that McDonald’s remains at the forefront of both culinary and marketing innovation.

Reimagining the Big Mac for a New Generation

The original Big Mac has been a staple of McDonald’s menu since its debut in 1968, instantly becoming one of the fast-food chain’s most beloved items. Now, more than five decades later, McDonald’s is reimagining this iconic burger for today’s consumers by swapping out beef patties for chicken.

“The Chicken Big Mac pays homage to one of our most iconic menu items, while introducing it to a whole new generation of fans,” Tariq Hassan explained. The decision to innovate the Big Mac by introducing a chicken version signals McDonald’s ability to stay relevant in a rapidly changing fast-food market, where customer preferences are shifting towards new flavors and dietary options.

This move comes as part of McDonald’s strategy to appeal to younger customers, many of whom are highly engaged on social media and enjoy exploring new food trends. The Chicken Big Mac offers an exciting alternative for those who may prefer chicken over beef or are simply curious to try a new version of the famous sandwich.

A Sneaky Launch: The McDonnell’s Pop-Up Experiment

The Chicken Big Mac wasn’t introduced without a bit of intrigue. In a stealth marketing move, McDonald’s secretly piloted the sandwich at a Los Angeles pop-up event under the guise of a fictional brand, “McDonnell’s.” This one-day-only event was designed to introduce the Chicken Big Mac in an unexpected and mysterious way, allowing consumers to experience the sandwich without the immediate brand recognition.

The pop-up was part of a broader marketing campaign that cleverly played into the growing “dupe culture,” which refers to the trend of finding affordable alternatives to high-end products. At the pop-up, attendees unknowingly tried the Chicken Big Mac disguised as “The Chicken Sandwich,” alongside other McDonald’s signature items, such as beef tallow fries, deep-fried apple pie, and soft serve ice cream.

This marketing tactic created buzz and intrigue, with attendees invited to give their thoughts on what they believed was a “dupe” of a McDonald’s item. One attendee commented on how close the sandwich tasted to a Big Mac, stating, “It’s impressive how close this is to McDonald’s.” The element of surprise added an extra layer of excitement to the launch, as McDonald’s leveraged the power of social media to spark curiosity and conversation.

The Role of Social Media and “Dupe Culture” in Marketing

McDonald’s innovative approach to launching the Chicken Big Mac extends beyond the sandwich itself. The company has incorporated social media and pop culture into its campaign, targeting trends such as “dupe culture.” This trend, particularly popular on platforms like TikTok and Instagram, involves consumers seeking out cheaper versions of popular or expensive items and sharing their findings online.

By tapping into this trend, McDonald’s not only builds excitement around the Chicken Big Mac but also connects with a younger, digital-native audience. The McDonnell’s pop-up, along with the social media campaign, allowed McDonald’s to create buzz in a way that felt authentic to the digital generation.

To further amplify the campaign, McDonald’s partnered with well-known internet personality Kai Cenat. His involvement added an element of humor and interactivity, as fans were invited to weigh in on the question of whether the Chicken Big Mac can truly be considered a Big Mac. This integration of influencer marketing helped McDonald’s reach a wider, more engaged audience, enhancing the overall campaign’s effectiveness.

A Limited-Time Offering to Drive Foot Traffic

As with many of McDonald’s most successful promotions, the Chicken Big Mac will be available as a Limited-Time Offering (LTO), encouraging customers to try it before it disappears from the menu. The fast-food chain often uses LTOs to create a sense of urgency and excitement, driving foot traffic to restaurants and boosting sales during the promotional period.

The Chicken Big Mac will be available at participating U.S. McDonald’s locations while supplies last, giving customers a limited window to experience this innovative take on a classic menu item. By keeping the offering temporary, McDonald’s creates a sense of exclusivity that entices customers to visit sooner rather than later.

Tapping Into the Nostalgia Factor

For many McDonald’s customers, the Big Mac represents more than just a sandwich—it’s a symbol of the brand’s history and its longstanding place in American fast-food culture. By introducing a chicken version of the Big Mac, McDonald’s is paying homage to its heritage while offering something new and exciting for a modern audience. This balance between tradition and innovation is key to McDonald’s continued success in an increasingly competitive market.

The Chicken Big Mac appeals not only to those who are curious about new flavors but also to those who feel a sense of nostalgia for the original Big Mac. The familiarity of the Big Mac combined with the novelty of the chicken patties offers a unique experience that is both comforting and adventurous.

The Road Ahead: What’s Next for McDonald’s Menu Innovation?

McDonald’s has long been known for its ability to innovate while staying true to its brand. The Chicken Big Mac is just the latest example of how the fast-food giant continues to evolve in response to changing consumer preferences. As competition in the fast-food industry intensifies, McDonald’s ability to surprise and delight its customers will be crucial to maintaining its leadership position.

Looking ahead, it’s clear that McDonald’s is focused on more than just adding new menu items—it’s about creating experiences that resonate with today’s consumers. Whether through clever marketing campaigns, social media engagement, or pop culture tie-ins, McDonald’s has proven time and time again that it understands what its customers want and knows how to deliver.

Conclusion: A New Era for the Big Mac

With the launch of the Chicken Big Mac, McDonald’s is introducing a new chapter in the story of one of its most iconic menu items. This Limited-Time Offering brings together tradition and innovation, appealing to both loyal Big Mac fans and a new generation of fast-food enthusiasts. By tapping into trends like “dupe culture” and leveraging social media to build excitement, McDonald’s is once again showing that it knows how to capture the attention of consumers and keep them coming back for more.

As the Chicken Big Mac makes its debut, one thing is clear: McDonald’s is not just serving up sandwiches—it’s creating moments that surprise, delight, and keep its customers engaged in an ever-evolving fast-food landscape.

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.

Lamb Weston Announces Closure of Connell Facility and Workforce Reductions Amid Economic Challenges

Lamb Weston plans to close its Connell facility, cut 428 jobs, and restructure its operations to address soft demand and increase cost efficiency. Discover more here.

Introduction: Lamb Weston Announces Major Restructuring Efforts

Lamb Weston, a leading supplier of frozen potato products to restaurants and retailers, has announced the closure of its older, higher-cost processing facility in Connell, Washington. In addition, the company plans to temporarily curtail certain production lines and schedules across its North American network. The restructuring will result in the elimination of 4% of its workforce, or approximately 428 jobs, as well as the removal of unfilled positions. This move is aimed at addressing the current supply-demand imbalance and improving operational efficiency as consumer demand remains weak.

The Impact of Soft Demand on Food Producers

The decision to close the Connell facility and reduce its workforce comes amid ongoing economic challenges, with soft demand for food products weighing heavily on producers. According to Tom Werner, CEO of Lamb Weston, the demand for the company’s frozen potato products is expected to remain soft through the remainder of fiscal 2025.

With consumers eating out less frequently and tightening their spending due to economic uncertainties, companies like Lamb Weston are under pressure to maintain profitability and manage costs. The economic landscape has prompted food producers across the industry to take decisive actions to align output with reduced demand.

Strategic Restructuring: A Focus on Cost Efficiency

Lamb Weston’s restructuring plan is designed to drive operational efficiency, reduce costs, and improve cash flow. The closure of the Connell facility and the reduction of jobs will help the company manage its factory utilization rates more effectively, while also addressing the supply-demand imbalance in North America.

The restructuring is expected to generate approximately $55 million in pre-tax cost savings and a reduction in working capital over fiscal 2025. According to Werner, these actions will better position the company to navigate the current economic environment and maintain competitiveness.

“We expect these actions will help us better manage our factory utilization rates and ease some of the current supply-demand imbalance in North America,” Werner said.

Industry-Wide Adjustments: A Common Response to Economic Pressure

Lamb Weston is not the only food company making adjustments to its production network in response to slow consumer demand. Several other major food manufacturers have recently announced closures and workforce reductions in an effort to cut costs and boost operational efficiency.

In July, Wonder maker Flowers Foods announced plans to close a bun-making plant in Louisiana. Similarly, Bimbo Bakeries USA, which oversees popular brands such as Entenmann’s and Sara Lee, is shuttering two facilities in New York and another in Texas. The Dr Pepper brand has also announced closures in Virginia and Vermont, while increasing investments in its South Carolina coffee roasting and manufacturing facility.

Even major players like Campbell Soup have been impacted. In May, the company announced the closure of one facility and the downsizing of another. At the same time, Campbell Soup committed to investing $230 million through fiscal 2026 to build newer, more efficient plants aimed at improving the competitiveness of its supply chain.

Driving Growth Through Operational Efficiency

As food producers face continued economic pressures, many are shifting their focus toward improving factory utilization rates and cutting operational costs. By optimizing production processes and eliminating underperforming facilities, companies aim to boost their profit margins while managing slower demand for consumer goods.

Lamb Weston’s restructuring efforts align with this industry trend, positioning the company to weather the economic storm and prepare for future growth. The closure of the Connell facility, along with the reduction of its workforce, is part of a broader strategy to ensure that the company can respond more effectively to changes in demand while maintaining operational efficiency.

Looking Ahead: What’s Next for Lamb Weston?

With the decision to close its Connell facility and streamline operations across North America, Lamb Weston is taking proactive steps to adapt to the changing market landscape. The company’s focus on cost efficiency and supply-demand alignment will allow it to remain competitive in the frozen potato product industry despite the challenges posed by softer demand.

Looking ahead, Lamb Weston will continue to monitor market conditions closely while seeking out opportunities to enhance its production capabilities. The company’s efforts to improve its supply chain efficiency are expected to yield long-term benefits, even as the near-term outlook remains uncertain.

Conclusion: Navigating Economic Challenges with Strategic Restructuring

Lamb Weston’s decision to close its Connell, Washington facility and reduce its workforce is a strategic move aimed at improving operational efficiency in response to a challenging economic environment. As consumer demand for food products remains soft, the company is aligning its production capabilities with market realities, generating significant cost savings and positioning itself for future growth.

This restructuring effort mirrors actions taken by other food producers, such as Flowers Foods, Bimbo Bakeries USA, and Dr Pepper, as companies across the sector look to increase profitability and better manage their operations in an uncertain economy. By focusing on driving cost efficiency, Lamb Weston is preparing to navigate the current landscape and ensure long-term success in the competitive food industry.

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.

EU Delays Deforestation Law: What It Means for Global Trade and Environmental Policies

The EU delays its deforestation law, giving companies more time to comply. Discover how this decision impacts global trade and environmental efforts.

Introduction: EU Deforestation Law Delayed

In response to mounting pressure from agri-food organizations and international partners, the European Commission (EC) has decided to delay the implementation of its highly anticipated EU Deforestation Regulation (EUDR). Originally set to take effect by the end of 2024, the EUDR aims to combat deforestation, reduce greenhouse gas emissions, and protect biodiversity. The new timeline provides large companies with an additional 12 months to comply, with small and micro-enterprises receiving an extension until 2026.

This article examines the reasons behind the delay, the reactions from various industries and environmental groups, and the potential impact on global trade and environmental policy.

What is the EU Deforestation Regulation?

The EU Deforestation Regulation (EUDR) is a landmark initiative aimed at ensuring that products imported and sold in the European Union do not contribute to deforestation. The law targets high-risk commodities such as cocoa, coffee, palm oil, soy, and timber. Companies trading in these goods will need to provide documentation proving that their supply chains are deforestation-free.

Initially announced in late 2021, the regulation was developed as part of the EU’s commitment to reducing its environmental footprint and addressing global climate change. However, as the 2024 deadline approached, stakeholders raised concerns about the law’s practicality and feasibility, leading to the recent delay.

The Push for a Delay: Industry and Government Concerns

Powerful agricultural and trade bodies, including Copa-Cogeca and the European Livestock and Meat Trading Union (UECBV), were among the first to raise alarms about the timeline for implementing the EUDR. In a co-signed letter, these organizations, along with other sectors like packaging and timber, argued that the timeframe for compliance was unrealistic.

International governments, particularly those in South-East Asia, also voiced their concerns. These countries, heavily reliant on exports of palm oil and timber, questioned how quickly they could align their national industries with the new regulations.

Additionally, the United States Department of Agriculture (USDA) and the U.S. Trade Representative expressed apprehension about how the law might impact U.S. producers who already practice sustainable production. The pressure from various global stakeholders was ultimately enough for the European Commission to announce a one-year extension, acknowledging that more time was needed to implement the complex law.

EU’s Decision to Delay: What Does it Mean?

On 2 October 2024, the European Commission announced the extension, giving large companies until 30 December 2025 and small enterprises until 30 June 2026 to fully comply. The EC stressed that this additional “phasing-in time” would allow businesses and governments to better prepare for the transition without compromising the core goals of the law.

The extension is accompanied by updated guidance documents to help industries understand the requirements more clearly. The EC also emphasized the importance of international cooperation in ensuring the successful adoption of the law across member states and third-party countries.

Despite the delay, the substance and objectives of the law remain unchanged. The goal is still to combat deforestation, but the extra time allows for smoother implementation, especially for smaller players in the global supply chain.

The Reaction: Mixed Responses from Industry and NGOs

The news of the delay was met with mixed reactions. On one hand, industry groups expressed relief. In their view, the delay provides much-needed breathing room to make the required adjustments to their supply chains without facing heavy penalties or business disruptions.

However, environmental NGOs were quick to criticize the postponement. Giulia Bondi, senior EU forests campaigner at Global Witness, stated that the delay undermines the urgency of protecting endangered forests and indigenous communities. She stressed that businesses opposing the law are mainly concerned with maintaining their profit margins at the expense of the environment.

Similarly, Nicole Polsterer, a sustainable consumption campaigner at Fern, argued that the delay threatens the integrity of the regulation. She noted that while many businesses need time to adjust, others are using this delay as a way to push back against the regulation altogether.

Impact on Global Trade

The EU’s decision to delay the EUDR implementation could have significant ripple effects on global trade. Here are some key areas to consider:

1. Agricultural Exports from Emerging Markets

Countries like Indonesia, Malaysia, and Brazil, which are major exporters of palm oil, soy, and timber, now have additional time to align their industries with the new regulations. However, the delay may also create uncertainty, as these countries could face challenges meeting the stricter EU standards.

2. Supply Chain Adjustments

The one-year delay gives companies time to reassess and reconfigure their supply chains. For businesses in food, beverage, and retail, this means ensuring that their products are ethically sourced and compliant with EU regulations. Failure to do so could lead to import bans or heavy penalties.

3. Impact on U.S. Producers

American exporters of agricultural products have expressed concerns about how the law will affect their trade with the EU. While the USDA has welcomed the delay, it remains to be seen how quickly U.S. producers can adjust to the new requirements without incurring additional costs or losing market access.

The Future of Environmental Policy in the EU

The EUDR delay also highlights the complexity of implementing global environmental policies. While the EU is pushing for stricter controls on deforestation, the reality is that such measures are difficult to enforce without strong international cooperation. Countries with vested economic interests in deforestation may continue to resist or push for further delays.

Moreover, as the EU strives to become a leader in sustainable trade practices, it faces the challenge of balancing environmental concerns with economic growth. The delay provides an opportunity to fine-tune the regulation but also risks giving businesses more time to lobby against its full enforcement.

Conclusion: A Step Back or a Step Forward?

The delay in implementing the EU Deforestation Regulation reflects the challenges of achieving global sustainability goals. While industries now have more time to prepare, environmentalists fear that this delay could weaken the law’s impact and hinder efforts to combat deforestation. The next 12 months will be crucial for businesses, policymakers, and environmental advocates to collaborate and ensure that the law is implemented smoothly, without further setbacks.

The EU must navigate this period carefully, balancing the need for environmental protection with the practical realities of global trade. The ultimate success of the EUDR will depend on the ability of all stakeholders to come together and make deforestation-free supply chains a reality.

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