Growth strong for Nestlé in Oceania

Nestlé has released the results for the first nine months of 2020 with the Oceania sector having strong growth over that time.
“Nestlé has remained resilient in a difficult and volatile environment. Our people have acted in a responsible and prompt manner to mitigate the impact of the global pandemic and have adapted quickly to evolving consumer needs. Strong organic growth was broad based and supported by sustained momentum in the Americas, Purina PetCare and Nestlé Health Science, as well as the acceleration of our coffee business in the third quarter,” said Mark Schneider, Nestlé CEO.
“We continue to develop our portfolio with speed and discipline. As an example, we are transforming Nestlé Health Science into a nutrition and health powerhouse through a combination of strong organic growth and targeted acquisitions. The recent additions of Zenpep, Vital Proteins and Aimmune Therapeutics are further steps in the expansion of our nutritional health offerings.”
Zone Asia, Oceania and sub-Saharan Africa (AOA)
Organic growth was flat, with RIG of -0.2 per cent and pricing of 0.2 per cent. Foreign exchange reduced sales by 6.7 per cent. Reported sales in Zone AOA decreased by 6.7 per cent to CHF15.3 billion. Organic growth in the Zone reached 4.5 per cent in the third quarter.
China saw negative growth, turning positive in the third quarter. Coffee, culinary and ice cream all delivered positive growth, with sequential quarterly improvements. The contraction in Wyeth infant formula sales continued to moderate. The roll-out of the locally produced Belsol brand is on track. Infant cereals and Purina PetCare both grew at a double-digit rate. Nestlé Professional reported a sales decrease, with growth recovering to almost flat in the third quarter. Strong momentum in e-commerce continued, driven by Nescafé, Starbucks products and dairy.
South-East Asia maintained mid single-digit growth. Sales in the Philippines grew at a double-digit rate, with elevated consumer demand for Bear Brand, Milo and Maggi. Indonesia delivered high single-digit growth, led by Bear Brand, Dancow and Milo. South Asia continued to perform well. India posted strong mid single-digit growth, with good momentum in Maggi, Nescafé and KitKat. Sub-Saharan Africa grew at a double-digit rate, with strong growth across most markets. Growth in Japan, South Korea and Oceania was slightly positive.
Oceania reported strong growth across most product categories, particularly in coffee and confectionery. Japan saw a decline in sales, with some improvement in the third quarter. KitKat sales declined in Japan, impacted by a reduction of inbound tourists.
By product category, the largest contributions to growth came from dairy, culinary, coffee and Purina PetCare. In coffee, consumer demand for Starbucks products remained strong. Infant nutrition continued to perform well outside of China. Nestlé Professional and confectionery posted negative growth, with improved sales development in the third quarter.
The company expects full-year organic sales growth around 3 per cent. The underlying trading operating profit margin is expected to improve. Underlying earnings per share in constant currency and capital efficiency are expected to increase.

Coca-Cola soft drink and water brands now produced in 100 per cent recycled plastic

Coca-Cola Australia and Coca-Cola Amatil have announced that all Coca-Cola soft drink brands (600ml and below) and all water brands (600ml and below) in Australia are now being produced in 100 per cent recycled plastic bottles. This includes Coca-Cola, Sprite, Fanta, Mount Franklin and Pump.

This follows the announcement earlier in the year that Coca-Cola Amatil will make 7 out of 10 plastic bottles from 100 per cent recycled plastic by the end of 2019. Coca-Cola’s juice and dairy brands are on track to transition and complete the goal before the end of the year.

Committed to helping close the recycling loop, Coca-Cola Australia has also ramped up its efforts to promote recycling to all Australians, announcing its sponsorship of Planet Ark’s National Recycling Week, now in its 24th year.

Russell Mahoney, director of sustainability at Coca-Cola Australia said; “The plastic waste crisis is one of the most pressing issues of our time – one that we’re committed to help solve.

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“We know actions speak louder than words, which is why together with Coca-Cola Amatil we have made a landmark investment in recycled plastic in Australia to help support a viable domestic recycling economy.

“The other important piece of the puzzle is supporting initiatives that encourage Australians to recycle, which is why we’re proud to be working closely with Planet Ark as the major sponsor of National Recycling Week.”

As Australia’s biggest beverage company, Coca-Cola’s move to recycled plastic will significantly reduce the environmental impact of its operations; ensuring plastic from existing bottles is repurposed, while decreasing demand for new plastic.

Peter West, Managing Director of Australian Beverages at Coca-Cola Amatil, said: “Earlier this year we took our strongest step forward in reducing packaging waste by making recycled plastic the norm in 7 out of 10 products in our portfolio.

“Today we are well on track to meet that target and become a market leader in innovation as the first country in the world where all Coca-Cola bottles 600ml and under are made from recycled plastic.

“We’re meeting our target to bring our total use of recycled plastic to 16,000 tonnes this year,” Mr West said.

Ryan Collins, head of sustainability resource programs at Planet Ark and spokesperson for National Recycling Week said, “By using more recycled plastic and encouraging Australians to recycle, Coca-Cola is leading the way and taking responsibility for the end of life of its products. We know this will help stimulate a viable local recycling industry, enabling highly valuable material like PET plastic to be meaningfully repurposed.

“Just like Planet Ark, Coca-Cola does not want to see valuable resources go to waste. It’s a perfect match for National Recycling Week, and we’re thrilled to be working together for the first time this year,” Collins said.

Mars’ Heague returns home to take up GM role

Mars Incorporated has appointed a new general manager, Bill Heague, to lead Mars Food Australia.

Heague originally joined the Mars company in 2008 as sales manager for Mars Food Australia, the manufacturer of food brands such as Masterfoods, Uncle Ben’s, Dolmio, Kantong, Promite and Seeds of Change.

Following a successful five-year stint with Mars Food in Australia, delivering continuous growth and gains in market share, Heague relocated to Europe to take up the role of Market Director, Multisales, for Mars in the Czech Republic and Slovakia. In this role, which was part of the newly formed Central Europe cluster, he played a central part in the transformation of the cluster and the integration of Wrigley into the Multisales business.

READ MORE: A chance to show off the latest and greatest in baking

Heague has managed Mars’ Irish Multisales business since 2018 in a challenging business environment which included managing the uncertainties generated by Brexit.

Heague said he is thrilled to be returning home to Sydney and taking up his new role with Mars Food Australia.

“I’m a foodie at heart and very excited about the major advances and significant challenges we are seeing in the food industry, both in Australia and around the world, and the innovation that our business can bring to the table,” Heague said.

“I’m a firm believer that dinner time matters, and we know that finding opportunities to cook and share meals with family and friends is good for both physical and mental wellbeing. It’s the foundation of our business, side by side with providing healthy, easy, affordable and tasty meal options.”

Heague will take up the new role from today, 1 November 2019, and is currently in the process of relocating back to Australia. He will be working out of Mars Food Australia’s head office and manufacturing plant at Wyong on the NSW Central Coast, and its satellite North Sydney office, from 13 November 2019.

Macadamias aim to disrupt chocolate category

Australian Macadamias has today released findings from independent research agency, GalKal, revealing macadamias are an underutilised ingredient in the traditional chocolate and nuts pairing. As consumers constantly crave new and creative confectionery, macadamias can bring excitement and interest to commonplace product formulations.

While chocolate and nuts are an established pairing, the space is dominated by nut varieties such as peanuts, hazelnuts and almonds. Over 13,000 chocolate products were launched globally in the past year; more than 1,400 (11 per cent) featured hazelnuts and a further 485 (4 per cent) featured peanuts, while only 75 (0.5 per cent) products launched featured macadamias.

Be it to unwind, de-stress, uplift or re-energise, consumers around the world crave chocolate confectionery to bring a sense of indulgence and escape from the everyday. There is a global demand for new flavour and texture combinations that inject luxury and surprise into the everyday chocolate experience.

READ MORE: The macadamia challenge returns

Lynne Ziehlke, general manager, marketing for the Australian macadamia industry said, “While consumers are very familiar and comfortable with the idea of nuts in chocolate, the current pairings have become quite commonplace and expected.

“The research showed that macadamias are the ideal ingredient to disrupt the tried and trusted nut-chocolate relationship and help create more exciting, novel and unique expressions of chocolate.”

The findings also brought to light the notion of ‘permissible indulgence,’ meaning consumers seek out chocolate that justifies the indulgence they crave either because it is perceived to be high-end or contains ingredients that are healthy. However, consumers do not want to compromise by settling for products that don’t deliver on the inherent pleasure of eating chocolate.

Ziehlke adds, “We continue to see the concept of ‘health as the new form of wealth’ dominating the consumer landscape. Macadamias are recognised as a guilt-free ingredient due to their nutritional value but at the same time are recognised as a premium product that will add luxury and deliver an indulgent eating experience.”

“The distinct, rich and creamy taste and texture of macadamias means they are the ideal ingredient to inspire chocolate innovation and bring excitement to a category in need of disruption. Macadamias also have a unique ability to balance out very sweet or very savoury flavours and create a harmonious overall taste profile. This opens up a wide range of opportunities for new product formulations.”

Methodology
Interviews were conducted with influencers in Germany, China and the US, followed by an online community with prosumers in Germany and the US and focus groups in China

Unleashed a game changer for award-winning bakery

Located an hour’s drive south of Perth, Pinjarra is a little town with a huge drawcard – its renowned bakery run by the Pantaleo family.

Founded just over 22 years ago by patriarch and former panel beater Larry, the bakery has not only put the town on the map, but has won a bookshelf-full of national awards for its pies. Its award-winning ways were capped off this year by taking out the Best Meat Pie award in the Great Aussie Meat Pie Competition at the Fine Food Australia Exhibition held in Sydney.

Like any company, growth is key, and since starting the business in 1997, Larry and the rest of his family, has grown the business to include stores in Maddington and Waroona, also in Western Australia.

However, while expansion is exciting, it does come with a set of challenges, one being more paperwork. When in its infancy, dealing with spreadsheets wasn’t a problem for the Pantaleo family. However, as the business expanded, so did the bureaucracy of keeping it running. The bakery’s general manager, Larry’s son Daniel, knew something had to be done to streamline processes with paperwork. Enter Unleashed Software’s solution.

READ MORE: Integration and easy of use key to cloud solution

“The old system that we had of dealing with the paperwork and spreadsheets was no longer going to work,” said Daniel Pantaleo. “It was very inefficient and time-consuming for us. It all came to a head when we opened our Maddington store.”

Unleashed’s inventory management software was a perfect solution for the family, and Pantaleo noticed the impact straight away.

“What we like about Unleashed is that it is a hosted solution, which means I can jump on it from anywhere in the world and I can check what is going on,” he said. “I can update my prices. I can contact my customers through the CRM. So it allows me – as someone who is here, there and everywhere at any given time of the day – to jump on any time anywhere and see what is going on. This is very important for me, because the last thing I want was a dedicated software solution on one computer at one location. A key to me was having that flexibility.”

According to Pantaleo, the system also streamlined a lot of processes that the bakery had, which were old and clunky. Many mistakes were getting made and Unleashed allowed Pantaleo to enter all the parameters he needed to cover in one place. From there, he could control the ordering of stock, see what stock he had, as well as the taking feedback from the other two stores.

“Everything became a lot clearer as to how we were operating that business,” said Pantaleo. “You need to keep control of your numbers otherwise it is pretty daunting feeling when you think you are losing control of the stock, the numbers and what is going on with that side of the business.

“Unleashed is quite precise in what it does. It is flexible, too. Not only in terms that we can operate it from anywhere, but also how you can tweak it to your style of business. It tells you everything you need to know. If you manage your stock and distribution correctly, Unleashed will do all the hard work for you. It allows you to customise and design your own purchase orders, invoices and stuff like that, which is very handy.”

Pantaleo is confident that Unleashed is capable of being used in many other industries. He said that it takes a while to set everything up, but once it is up and running it is a powerful tool.

“The biggest issue we worried about was that we had all these items that we needed to enter into it, which we thought was going to take forever,” he said. “But we were pretty much given a template of a spreadsheet and then told how we needed to enter the data. And from there, once we had the 1,000 plus items in there – the product, the supplier, the prices, the sell price tiers etc – we uploaded it to Unleashed and then we were ready to use it.”

With more than 70 staff onboard, Pantaleo knows that he is not the only one who needs to know how to use the software, which means he has had to teach others how implement it, too. He said that he has found teaching others how to use it easy for a couple of reasons.

“Unleashed is really easy to teach, because they have a lot of online training tools,” he said. “They have what they call a university that shows people how to use the software. If I do need to onboard somebody to use it, I usually send them to do that training first. From there, I manage them for a couple of days to give them pointers of the little intricacies of how we operate our business. It’s fairly straight forward.”

There are several highlights that Pantaleo points out. This includes being able to run a reorder report, which reads all the stock levels the bakery has at any given time.

“From that report you can generate a purchase order to all of your suppliers with the levels you require,” said Pantaleo. “That saves us a lot of time and this is why it is one of the main highlights of the product.”

The other feature that Pantaleo loves is its business-to-business portal that was released a year ago, which is an online ordering platform. It was a real game changer for Pinjarra Bakery.

“Initially we got Unleashed because it was reducing the paperwork, but as we increased our stores that paperwork was starting to increase again, just through the volume of the stores we had,” said Pantaleo. “Having that online portal allowed us to place our orders online and that would then pull the orders straight in as a sale order, which saves us possibly two or three hours a day of not having to enter stock manually. The orders that come in are now a lot more accurate and saved us a tonne of time and allowed our distribution manager to focus on more things to improve the distribution as opposed to being stuck behind a computer all day.”

Steel belts for chocolate manufacturing solutions

Cooling and forming are critical stages in the production of both chocolate and confectionery, and few companies have more experience in these areas than Melbourne-based IPCO.

As an independent company owned by FAM AB, and part of the Swedish-based Wallenberg group, IPCO is a globally active engineering company with sales and service offices in more than 35 countries. As a business its connection with the food industry stretches back almost a century, when its steel belts were first used in bake ovens.

Milestones since then include their use for cooling chocolate drops at an American confectionery company in the 1930s, for ice-cream freezing (1959) and for chocolate conveying (1960). Today, IPCO steel belts are used in applications ranging from simple conveying to continuous processes such as cooling/solidification, conditioning, casting, freezing and finishing.

In parallel with this, IPCO has developed its own forming systems including the Rotoform FD – a food-grade pastillation system used to turn molten product, such as chocolate, fruit-flavoured jelly, gum base, fats and other additives, into solid, consistently sized pastilles.

Processing solution for industrial and decorative chocolate
This expertise in pastillation in general, and chocolate in particular, has seen the company create a specialist division focussed on chocolate processing.

With its own production facilities in Breda, The Netherlands, this division produces versatile forming systems for both industrial (chunks, chips and blocks) and decorative (rolls, shavings, blossoms etc.) chocolate products. These systems are designed to maximise productivity while also ensuring a premium quality end product.

The company has developed a portfolio that includes depositors, extruders, cutters and decorative forming systems, as well as high-performance, steel-belt conveyors and economical plastic belt systems. By combining these different elements, IPCO can offer process lines suitable for everything from low-cost, rapid-deployment start-ups to high-performance, multi-layer systems.

Rotoform rotary depositing chip production
At the heart of every IPCO high-speed, high-capacity chocolate forming system is the Rotoform rotary depositor, a unit first developed for the chemical industry but subsequently adapted for food processing. More than 2,000 Rotoform depositors are now used around the world.

The Rotoform itself consists of a heated cylindrical stator and perforated rotating shell that turns concentrically around the stator. Chocolate drops are deposited across the whole operating width of a continuously running cooling belt. The outer depositor shell can be replaced to enable the production of chips of a different size, with a changeover in less than 30 minutes.

The circumferential speed of the Rotoform is synchronised with the speed of the belt so drops are deposited without deformation. The heat of the drops is transferred to cooling air blown onto the product and also to the belt itself.

The most recent addition to this range is the Rotoform HP, a high-performance system offering a range of advantages including increased productivity, reduced maintenance and the ability to handle higher viscosity products. Reliable, versatile and easy to use, the Rotoform HP is available on all IPCO chocolate production lines, or as a retrofit replacement for piston depositors.

Suitable for the production of chips from 250-35,000 pcs/kg, this versatile module delivers a consistently sized product at depositing speeds of up to 40 m/min. Available in 800mm, 1,200mm and 1,500mm widths, the Rotoform HP can process viscosities up to 25,000 mPas.

Single- and triple-pass cooling lines
IPCO produces a range of cooling systems to meet different throughput requirements. Single-pass, end-to-end cooling lines are designed for low-to-medium capacity requirements from 200-2,000 kg/hr.

These affordable systems can incorporate a gear or rotary depositor for chip production and/or extruder and servo cutter for chunks. IPCO triple-pass cooling systems enable high throughput rates while minimising floor space requirements. The product is deposited on the first belt and adheres to the underside for the second pass. It is then removed on to a second conveyor for a third pass.

IPCO steel belts for confectionery processing
As well as producing complete process systems, IPCO is also a manufacturer of steel belts, supplying third-party machine builders (OEMs) throughout the food industry in general, and the confectionery industry in particular.

Steel belts are a versatile conveying medium. They are available in solid or perforated form and can be manufactured to virtually any length and, at IPCO’s manufacturing plant in Sweden, to widths from 25-9,000mm.

Steel belts offer a unique range of thermal properties, being capable of operating in temperatures from minus 80°C to +750°C. Cooling is an area in which IPCO has end-to-end process expertise, working with machine manufacturers to ensure optimum productivity and return on investment.

These systems are used for cooling and solidifying, with applications including chocolate, sugar mass, caramel, gelatine, hard-melt candy, nougat, nut brittle and more.

Steel belts are also used in zoned conditioning systems; slab and bar casting applications (e.g. caramel and sugar mass); freezer lines; drying units; chocolate melt reclamation; and in finishing operations (e.g. cutting, folding, layering).

In terms of cleanliness and hygienic food handling, the flat surface of a steel confectionery conveyor means there are no joints or crevices in which germs can hide. Its smoothness means a cleaner, easier discharge of lollies, chocolate and similar products at the end of a conveying or processing line.

And stainless steel can be subjected to any method of cleaning – steam, pressure, detergents, brushes, chemicals, even aggressive scrapers – to ensure the lowest levels of bacteria and the highest standards of hygiene.

IPCO supplies belts for use in OEM systems and it can also supply every aspect of a steel-belt conveying unit, including drums, compact belt tracking devices, belt and drum cleaners, safety scrapers and belt-edge detectors, cast-iron skid bars, graphite skid bars and both active and passive belt-tracking controls.

Engineers can advise on upgrade paths or optimum process layouts, and the company’s worldwide technical support network means that installations and commissioning can be carried out quickly and efficiently.

The company can also supply complete, standalone conveyor units that represent best practice in terms of hygienic food conveying. These feature a stainless-steel framework designed to allow access for cleaning, with no narrow gaps or other hard-to-reach places in which dirt, debris and bacteria could otherwise collect.

The framework is designed to minimise the risk of water pooling after cleaning, reducing the possibility of bacterial growth. The stainless-steel conveyor belt is “endless welded” to eliminate any trace of a joint and its smooth surface means there are no hidden gaps or recesses in which bacteria could collect. All bearings are food approved and lubricated for life with food-approved lubricating grease. The motor is food-approved and has IP65 protection.

Enhanced technical and service support throughout Oceania
In line with the strategic vision for business growth in the region, IPCO recently announced its relocation to a new office, warehouse and workshop facility at Burwood, Victoria. This new facility will enable IPCO to increase efficiency and enhance support capabilities – resulting in stronger partnerships with clients throughout Oceania.

Seven things you should know when exporting to China

According to Dr Mathew McDougall, CEO of Reach China and revered expert in doing business with China, Australia’s trade relationship with China is growing by the day and it includes large scale exports of resources through to everyday items which small and medium size Aussie businesses are ideally placed to provide.

“China represents a huge opportunity for Aussie SMEs,” McDougall said. “We import over $62 billion worth of goods from China and export over $93 billion dollars worth of goods and services to China.

“China has a population of nearly 1.4 billion people and their middle class is growing. They are also avid online shoppers and eager to purchase premium quality brands. They also seek out authentic Australian brands as our products are considered high quality, clean, green and produced in highly regulated environments. Our soils, air and water are seen as pure.

READ MORE: Why the Australian food industry needs Alibaba

“The key areas of export opportunity for Aussie food and beverage small businesses include:

  • Maternity, baby care products and baby food
  • Milk powders (including infant formula and adult milk powder), UHT and pasteurised milk, yoghurt, cheese and butter
  • Seafood (particularly saltwater shell fish such as oysters, crabs, lobster and abalone)
  • Fresh fruits (citrus, table grapes, cherries and mangoes) and natural fruit juice
  • Oats and other breakfast cereals
  • Chilled, frozen beef and processed foods
  • Wine and craft beer

McDougall suggests that while the idea of exporting to China may seem daunting, many Australian businesses, from mum and dad operations to larger companies have commenced the journey of exporting to China with great success.

“It is really a matter of preparing well and taking the right steps,” Dr McDougall said. He has put together seven key steps Australian businesses should follow if they want to export to China.

  1. Work with an experienced export consultant to help you in your journey. A good export consultant will assist you to work through all steps of the process
    This is essential to ensure you are making the right decisions and doing the right things. This avoids putting money in the wrong places and minimising mistakes.
  2. Ensure your product is suitable for the Chinese market and that there is a demand for your product.
    While this may seem straight forward, China is a big country with different markets. Be clear about what part of the market you are targeting and the potential for sales and growth. The more unique and high quality, the more appealing the product will be.
  3. Get to know Chinese culture
    Get to know the market to which you are seeking to export. Find out what products are doing well and why. Understand their social media platforms such as WeChat and how they engage and shop. A little research goes a long way.
  4. Grow awareness of your products in the Australian market first to build brand credibility and trust in China
    Chinese consumers buy brands based on reputation, trust and credibility. If your brand is known in Australia and has a good reputation, then the Chinese are more likely to buy your product in or from China.
  5. Build a sound online presence through a good website and social media
    Chinese consumers are very internet savvy and research products before they buy. They also rely on reviews. Having a strong online presence ensures your brand is well represented and and findable on the internet.
  6. IP and branding
    Protecting your IP is important, not only in Australia but overseas. Ensure your products are clearly branded and IP registered in Australia and that the branding has no conflicts with any existing brands known or registered in China.
  7. Be patient, flexible and scalable
    Many businesses have achieved explosive growth exporting to China, while others have found the journey a bit more slow going. Regardless, it is important to ensure that you are taking the right steps and are prepared for growth when it happens.  Sometimes strategies and tactics need to be adjusted and this is normal, the key is to be patient and committed – and be ready when things do shift quickly.

“I have helped many Australian startups and larger businesses export into China. With many, we have drawn on the Australian based Daigou sector to get the export process underway,” McDougall said.

“Daigou are Australian based Chinese who buy products and send them back to their friends, relatives and others in China. There are over 80,000 Daigou in Australia and the Daigou trade channel is growing fast helping many Australian brands to build awareness among consumers in China.

“Regardless of the strategy, the key is to ensure you have a good product to sell There are many Australian businesses with good products that are ideal for export. Hopefully we see more making the move to export. It can be a life-changing experience.”

Food regulations helps accelerate natural food colour additives sales

The global natural food colour additives market is anticipated to grow at a CAGR of more than 5 per cent during the forecast period in terms of value. With the growing awareness of the masses towards using clean label products, the usage of natural food colour additives has been gaining traction. The aversion of consumers towards the synthetic and chemical products has been evident in the recent past. The key factors affecting the natural food colour additives market are the increasing downstream demand and consumer health consciousness.

The rules and regulations regarding the chemical content limits have become stringent and have been heavily imposed by various governments. Major changes have been implemented in the global food colour additives market with the introduction of ISO 22000, designed to address food safety management systems. This will help garner significant demand for product in the forecast period.

The demand for the natural and plant derived products is creating significant opportunities for the food and beverage industry. Manufacturing companies are replacing synthetic or artificial colours with natural food colour additives. According to various health associations and organisations, the consumption of food with such additives are beneficial for health, as it fulfils a  range of nutrients demand. The long-term use of the these additives will help the consumers to sustain better food and snacking habits.

READ MORE: Five signs of a lagging food safety culture

These products refer to any substance used to impart desired colour when mixed. Natural food colour additives are either vegetable and fruit derived, or animal derived, or can be obtained from other natural sources. Multiple product offerings are available for natural food colour additives like Carotenoids, Turmeric oleoresin, Enocianina, Paprika oleoresin, Spirulina Extract, Chlorophyll, Carmine and others. The portfolio of these products is increasing day by day.

Catering to the needs of the consumers, industry players have been using natural food colour additives in beverages, milk products, baked goods, confectionery, snack and cereals, soups and sauces, meat products and others. Among beverages, natural food colour additives are used for carbonated soft drinks, energy drinks, milk drinks, juice-based drinks and others. Beverages holds a prominent share for natural food colour additives and is expected to augment the market growth during the forecast period. Use of these additives in dairy products include yogurt, ice cream, frozen dairy products, dips and spreads and cheese. Natural food colour additives in bakeries and similar institutions for making baked goods usually have a standard offering of bread, cakes,  biscuits and cookies. In terms of meat products, these additives are used to make the processed meat and poultry and seafood, aesthetically pleasing.

Due to the shifting consumer behavior toward the vegan and organic trends in United States, the companies with clean labels and organic claims have been gaining special brownie points. The FDA’s ban on PHO’s (Partially Hydrogenated Oils), the majorly used emulsifiers, has created the need for alternatives. The inclination of end use industries for natural food colour additives is due to the broad range of colours and colour stability. Research for cheaper and sustainable ways for extraction of these additives will help the end use industries with a plethora of options. The markets for these products in East Asia and South Asia are expected to have exponential growth rate in the forecast years. Albeit the icky factor that comes with carmine, a colour derived from cochineal beetles, the growth of carmine will hold a steady growth rate in this market

Nestlé commits to zero net emissions by 2050

Nestlé has announced its ambition to achieve zero net greenhouse gas emissions by 2050. It embraces the most ambitious aim of the Paris Agreement, to limit global temperature rise to 1.5°C. Ahead of the U.N. Secretary-General’s Climate Action Summit this month, Nestlé will sign the ‘Business Ambition for 1.5°C’ pledge.

With this announcement Nestlé is accelerating its climate change efforts. This builds on a decade of work to reduce greenhouse gas emissions. Over the past four years, Nestlé has aligned its objectives with science-based targets to keep the temperature increase below 2°C. The company is determined to play a leading role in tackling climate change. Over the next two years, it will lay out a time-bound plan including interim targets consistent with the 1.5°C path. Nestlé will review its progress annually to ensure it is on track.

“Climate change is one of the biggest threats we face as a society. It is also one of the greatest risks to the future of our business,” said Mark Schneider, Nestlé CEO. “We are running out of time to avoid the worst effects of global warming. That is why we are setting a bolder ambition to reach a net-zero future. Deploying Nestlé’s global resources and industry know-how, we know we can make a difference at significant scale. Our journey to net zero has already started. Now, we are accelerating our efforts,” he added.

To achieve its 2050 ambition, some of the company’s specific actions include:

  • Speeding up the transformation of its products in line with consumer trends and choices. Nestlé will launch more products that have a better environmental footprint and contribute to a balanced diet. This includes more plant-based food and beverage options. Nestlé will also look to reformulate its products using more climate-friendly ingredients. Consumer demand for such products is rapidly increasing, and Nestlé’s core strategy is in line with this shift. The company is also moving to alternative packaging materials.
  • Scaling up initiatives in agriculture to absorb more carbon. Nestlé will strengthen its programs with farmers to restore land and limit greenhouse gas emissions. This includes improved management of its dairy supply chain. Nestlé will step up efforts to protect forests by replanting trees and enhancing biodiversity. All of these initiatives will help build resilient agricultural communities.
  • Using 100% renewable electricity in Nestlé factories, warehouses, logistics and offices. A third of Nestlé factories (143) are already using 100 per cent renewable electricity. Nestlé will continue to increase the use of energy from renewable sources. This will enable suppliers to invest in new infrastructure such as wind and solar farms.
  • Limiting global warming to 1.5°C requires transformational change across industries, governments and society as a whole. Nestlé will continue its advocacy for government policies to ensure all sectors move faster towards 1.5°C. Supportive legislation could help to reduce barriers to expanding renewable energy markets, incentivize innovation in the agriculture and forestry sectors to capture more carbon, and help to establish carbon pricing.

Nestlé inaugurates packaging research institute

Nestlé has officially inaugurated the Institute of Packaging Sciences, the first-of-its-kind in the food industry. The new Institute enables Nestlé to accelerate its efforts to bring functional, safe and environmentally friendly packaging solutions to the market and to address the global challenge of plastic packaging waste.

Speaking at the inauguration, Mark Schneider, Nestlé CEO, said, “Our vision is a world in which none of our packaging ends up in landfill or as litter. To achieve this we introduce reusable packaging solutions and pioneer environmentally friendly packaging materials. Furthermore, we support the development of local recycling infrastructure and deposit schemes to help shape a waste-free world. The Nestlé Institute of Packaging Sciences enables us to create a strong pipeline of sustainable packaging solutions for Nestlé products across businesses and markets.”

The Nestlé Institute of Packaging Sciences focuses on a number of science and technology areas, such as refillable or reusable packaging, simplified packaging materials, recycled packaging materials, high-performance barrier papers as well as bio-based, compostable and biodegradable materials.

Stefan Palzer, Nestlé CTO said, “Reducing plastic waste and mitigating climate change effects through cutting-edge technology and product design are a priority for us. Nestlé experts are co-developing and testing new environmentally friendly packaging materials and systems together with our development centres, suppliers, research institutions and start-ups. Located at our Nestlé Research facilities in Lausanne, Switzerland, the Institute also leverages our existing research capabilities in food safety, analytics and food science.”

Commenting on the inauguration, Sander Defruyt, New Plastics Economy Lead at the Ellen MacArthur Foundation, said: “Nestlé was one of the first companies to sign the New Plastics Economy Global Commitment, setting concrete targets to eliminate plastic waste and pollution at the source. It is great to see the world’s largest consumer goods company now increasing its research focus and capacity to deliver on these ambitions.”

Nestlé is already making progress towards its 2025 packaging commitments, and has launched novel packaging solutions. For example, Nestlé packaging experts and suppliers developed products in recyclable paper packaging such as the Nesquik All Natural cocoa powder and the YES! snack bars in under 12 months.

The Institute is part of the company’s fundamental research entity Nestlé Research in Switzerland, reaffirming Nestlé’s commitment to further strengthen the unique Swiss innovation ecosystem.

Speaking at the official opening, Philippe Leuba, State Councilor of the Swiss Canton of Vaud, said: “This new institute will strengthen our Canton as a centre of excellence when it comes to the food value chain and allow the development of innovative packaging solutions that respect the environment and sustainable development. Waste management, a global challenge, will now benefit from an innovation ecosystem in the Canton of Vaud made up of universities as well as research centres from major private sector players such as Nestlé.”

Cookie Project unveils real person traceable packaging via QR code technology

New Zealand-based The Cookie Project has unveiled new packaging to help break down social stigmas around disabilities. A first in the country, the cookie packaging brings real person traceability to life via QR code technology, allowing consumers to meet their bakers.

Sustainably made from 100 percent recycled material, the packaging is designed to give the New Zealand public the ability to connect with and empower the disabled community.

Through personalised stickers for each baker on the back of the product, customers can scan a QR code via their own smartphone to discover who made their cookies, leave a message of encouragement and or request the baker to make their next batch of cookies.

The innovative packaging also furthers the social enterprise’s goal of providing employment pathways for its staff, with potential employers able to use the linked profile page as a platform to offer opportunities directly to the baker.

Knowing first-hand how complex understanding disabilities can be, co-founder Eric Chuah wanted to help educate the public by simplifying disabilities into four simple categories – sensory, physical, cognitive, and mental health. Each represented by a colour in the QR code, the public can learn more about the different types of disabilities when they scan the sticker.

Co-founder Graeme Haddon says, “We believe two key steps in breaking down social stigma for the disabled community is awareness and education. By making disability easier to understand, we hope this is the first step towards inclusion.”

Eric Chuah says, “Everything we do at The Cookie Project is human-centred around our bakers. We wanted our packaging to be a platform where customers and potential employers can connect with our bakers. We’re proud to help drive this conversation and show New Zealand that people with any type of disability can contribute to society and should be treated equally as such.

Quentin Van Heerden, managing director of Quentosity says, “For us, we want to play our part in helping to tackle discrimination in our society against people with disabilities. And so the key focus for Quentosity Digital Marketing Agency is to combine great design, with a great product, and critically, to encourage people to buy the cookies. We came up with a clean, attractive design, with emoji icons to embrace youth, whilst encompassing elegant, contemporary design elements.”

Handmade on-demand in the Eat My Lunch kitchen, The Cookie Project uses premium ingredients from Kiwi partners Lewis Road Creamery, Trade Aid and Pic’s Peanut Butter to make its products with no preservatives, additives or colouring.

The Cookie Project products will be available in New World Metro on Queen Street and other selected Auckland stores from September onwards, and rolled out nationwide later in the year.

 

Understanding what products consumers want to buy

Most new products only get one shot at the big time when they are launched. All the money spent on marketing, promotions and ad campaigns can go down the gurgler if companies don’t do their due diligence on public perceptions, which can be fickle. Anybody remember Crystal Pepsi? McDonalds’ Arch Deluxe? How about Cosmopolitan yoghurt? Or New Coke?

Well, the last one is certainly seared into the memory banks due to it being a colossal failure back in 1985. The others, not so much. Bringing a new product to market is no easy task. It takes a lot of recipe tweaking, taste tests, and a fair bit of money. New Coke showed that even with the backing of a world-renowned brand, failure is possible.

A key ingredient is market intelligence. Formed in London 47 years ago, Mintel is a company that has pioneered research in many arenas including food and beverage. A conjoining of the words “market” and “intelligence”, Mintel has several consumer insight tools – the latest being Mintel Purchase Intelligence, which is product comparison technology, providing rapid, reliable consumer opinion on every reported new food and drink product in the Australian marketplace.

It was developed because the company knew that manufacturers of food and beverages not only wanted to know what consumers wanted to buy, but why.

“It was developed in-house to help food and beverage manufacturers understand which products consumers want to buy and which product attributes are correlated to a purchase decision,” said Mintel’s senior purchase intelligence analyst, Megan Stanton. “The tool goes beyond purchase intent with data and insight on the key attributes consumers care about. What attributes help them make those purchasing decisions? Quality, taste, the trustworthiness of a brand, how fun, exciting, or environmentally friendly are they – these are some of the 16 product attributes that consumers are asked to rate.”

Manufacturers can use Purchase Intelligence in many different ways. They can analyse how a group of products, a newly launched chocolate bar range for example, compares to the benchmark of chocolate bars already in market. This gives manufacturers an insight on why a new product might be underperforming, and then identify areas of improvement. There might be an issue with the packaging – maybe people just don’t like the look of it.

Perhaps, there is something fundamentally wrong with the way it’s getting their brand message across. This helpful feedback is available through the words of consumers who rate the products on the Purchase Intelligence tool. The other way Purchase Intelligence can be utilised is as a go-to market tool where a manufacturer can buy what Mintel calls “concept intelligence”.

“You can buy the information as ad hoc if you are launching a new product,” said Stanton. “It gives you the opportunity to have a pre-look at what consumers would say about your product before it launches to the public, as well as benchmark your concept against products that are already in the market.”

How does the information get collected, and how does the company get feedback? Mintel has shoppers throughout the different states who look for new products that are being launched. When they find the product, they send it to Mintel headquarters in London where all the information – packaging, nutrition, type of product – is photographed and recorded and added to Mintel’s Global New Product Database. The market intelligence agency then conducts surveys on the new product, with responses then filtered through to the Purchase Intelligence tool.

“We survey 100 people on each product, a statistically reliable number,” said Stanton. “The survey is always based on the general population in Australia. We make sure we use the Australian Bureau of Statistics (ABS) figures to make sure that we have a representative population.

“For example, we make sure that the population represents a certain percentage from New South Wales, Victoria, Queensland and other states, and we manage also for age and gender.”

Stanton said food manufacturers want to know about their products, and have an indication of the group of people who are going to buy their products. Purchase Intelligence will give them this information, as well as on other factors that will allow manufacturers to compare their product against that of their competitor’s.

“If a respondent says they would buy the product we ask them why,” said Stanton. “Conversely, if they say no, we ask them why, too. Then, we are able to filter and search through all that information to help manufacturers understand why the respondent has given a particular answer.

“There are 16 questions we ask – eg good value, quality, trustworthy brand, natural, and environmentally friendly etc to give us a gauge of what consumers think of a product. Then, we are able to correlate which of those attributes has a strong relationship to a purchase decision.”

Useful information that Purchase Intelligence will show manufacturers includes how many Australians have the intention to purchase their product; what attributes are correlated to a purchase decision; how does that product, or group of products, compare to their competitors, or how it compares to a category on the whole.

Mintel’s Purchase Intelligence tool enables manufacturers to analyse the numbers or explore thousands of verbatims to learn the context of purchase decisions directly from consumers.

And how do manufacturers feel about their product being on the database? Do they have any issues with it being compared to other, similar products?

“A lot of manufacturers are really interested in Mintel Purchase Intelligence,” said Stanton. “We’ve had a number of our manufacturing customers, including retailers, who are very interested in not only how their product is performing but their competitor’s products, too.”

Overall, the reaction in the market to the product intelligence tool has been good, said Stanton. And she believes its reputation will grow as it gets a foothold in the market research space.

“Mintel Purchase Intelligence has been very successful in the US and we’ve been there for just over three and a half years,” she said. “We launched the product intelligence tool in Australia in November of 2018 and we’ve had fantastic feedback.”

Nestlé sells off confectionery brands in New Zealand

Nestlé is selling off toffees, licorice and other confectionery in New Zealand.

The company is saying goodbye to lollies, but it’s staying in the business of producing chocolate and baking goods for the New Zealand market.

RJ’s in New Zealand will purchase the Mackintosh’s, Heards, Oddfellows, Black Knight and Fabulicious Red Licorice brands from Nestlé.

The completion of the sale is expected to happen on the 31st of August.

READ: Nestlé joins Global Coalition to advance animal welfare standards

Where possible, RJ’s intends to continue the manufacture of these brands in New Zealand, with plans to be finalised in the coming weeks.

Nestlé will also sell the Life Savers brand to Darrell Lea in Australia.

The sale of these brands will result in up to 55 redundancies from Wiri factory, but RJ’s is helping to identify opportunities for redundant workers.

Earlier in July, Nestlé announced it was committed to using certified sustainable palm oil in all its products by 2023.

Nestlé’s global head of responsible sourcing Benjamin Ware said transparency in Nestlé’s supply chain had always been a priority.

“Nestlé has always been committed to implementing responsible sourcing and has made significant progress towards our commitment to using fully responsibly sourced palm oil,” he said.

“Nestlé supports RSPO’s role in driving industry wide change and appreciates its decision following the submission of our action plan, which focuses on increasing traceability primarily through segregated RSPO palm oil,” said Ware.

The Roundtable on Sustainable Palm Oil reinstated Nestlé’s membership following its time-bound action plan to achieve 100 per cent RSPO certified sustainable palm oil.

 

Golden North judged Australia’s best ice cream

Golden North has been judged Australia’s best ice cream in an independent customer survey by Canstar Blue.

The nationwide study included more than 1,600 consumers who were each asked to rate ice cream brands based on taste, consistency, value for money, variety, packaging and overall satisfaction.

Golden North was the only brand to receive a five-star rating for taste, consistency and overall satisfaction, clinching the title of Australia’s favourite ice cream tub ahead of a host of major national brands, including Bulla, Cadbury, Peters and Streets.

In order, the top ranking ice creams in Canstar Blue’s 2018 ice cream customer satisfaction survey were Golden North, Aldi, Bulla, Cadbury, Connoisseur, Peters, Sara Lee, Streets, Ben & Jerry’s, Coles, Woolworths.

Golden North Marketing Director Trevor Pomery said the Canstar Blue award is a major honour for the proud South Australian company as its products expand into more outlets nationally.

“We’re absolutely thrilled to be judged Australia’s best ice cream, particularly when you consider some of the brands we were up against,” said Mr Pomery, who added the Canstar Blue award is Golden North’s second major accolade in a matter of weeks after the company was last month named Metcash’s Perishable Supplier of the Year (under $50 million).

In addition to all South Australian and NT supermarkets, selected Golden North products are now available in IGA, Supa IGA and Woolworths stores in New South Wales, Victoria, Queensland and Western Australia, plus Drakes Foodmarkets in Queensland.

Established in 1923, the privately owned and operated ice cream manufacturer is based at Laura in South Australia’s upper Mid North where it produces a range of ice cream flavours, including its signature Golden North Honey Ice Cream tubs and Giant Twins ice creams.

Importantly, Golden North’s ice cream is palm oil free and is made using only the freshest milk and cream from local dairy farmers to create its rich and creamy texture.

Blackberry & Cream crowned Allen’s Fruit & Cream of the Crop

Allen’s has welcomed a new Fruit & Cream of the Crop to its lolly line-up. Australians officially chose the Blackberry & Cream to join favourites Strawberries & Cream and Peaches & Cream in Allen’s Fruits & Cream Mix, launching exclusively at Woolworths this February.

The announcement follows a nationwide vote that saw luscious Blackberry & Cream go head-to-head with runners-up, juicy Apple & Cream and on-trend, zesty Yuzu & Cream.

Nestlé General Manager – Confectionery, Martin Brown, said the search to find the Allen’s Fruit & Cream of the Crop showcased the passion of lolly enthusiasts and attracted more entries than ever before.

“What better way to decide on a new Allen’s lolly than with the help of the nation! The final addition to the new Allen’s Fruits & Cream Mix has been chosen by our fans – the never-been-tasted, by the public, Blackberry & Cream is sure to put smiles on faces when it arrives in store next month.

“We can’t wait for our lolly lovers to taste this latest flavour in the Allen’s line-up. And no matter how you like to eat your Fruit & Cream – fruit or cream first, or all in one go – it’s sure to be truly delicious,” Mr Brown said.

 

Allen’s invites Australians to pick favourite lolly

A line-up of three new fruit and cream flavours are auditioning to become the Allen’s Fruit & Cream of the Crop, and it’s up to lolly lovers across the country to have their say and pick the winner.

Allen’s is calling on fans nationwide to cast their vote at allenslollies.com.au/vote and decide which delicious flavour will be launched alongside much-loved Strawberries & Cream and Peaches & Cream, in an all new Fruits & Cream Mix. Fans have one week to select the lolly that will take centre stage.

The annual Allen’s vote follows last year’s search for a remixed classic which saw Ginger Cats, Choc & Cream and Funny Teeth go head-to-head. Receiving overwhelming support, Choc & Cream ultimately took out first place. In 2016, Allen’s lolly aficionados were also invited to decide which jelly would go solo in its own bag, with Peaches & Cream crowned the winner – proving that locals absolutely love their creamy lollies.

Nestlé General Manager Confectionery, Martin Brown, said that Allen’s always likes to hear from its fans to ensure that the sweets they produce continue to create smiles for all lolly lovers.

“We have spent months perfecting the potential new flavours of Apple & Cream, Blackberry & Cream and Yuzu & Cream, ensuring that each has just the right balance of a juicy dollop of fruit flavour on top of a creamy vanilla base,” he said.

Allegro Funds buys Everest Foods

Sydney-based turnaround firm Allegro Funds has purchased Everest Foods, a manufacturer and distributor of premium ice cream, gelato, sorbet and frozen desserts.

Established in 1958 and based in Melbourne, Everest Foods’ brands include NorgenVaaz and Gelateria brands and the Everest gelato brand. The company has a unique platform underpinned by leading agile production capabilities, long-standing customer relationships and national distribution footprint.

Comet Line Consulting advised Everest Foods on the sale of the business.

“We are delighted to have helped the vendor successfully exit Everest Foods and to have found such a strong new owner for the business,” said Ben van der Westhuizen, Director, Comet Line Consulting.

Swiss invent new pink chocolate

Swiss chocolate maker Barry Callebaut has come up with a new type of chocolate ‘Ruby’ which is made from the Ruby cocoa bean. Ruby chocolate has an intense taste and characteristic pinkish colour.

The Ruby bean is unique because the fresh berry-fruitiness and colour precursors are naturally present. The cocoa beans are sourced from different regions of the world. The bean has a specific set of attributes, which Barry Callebaut managed to unlock through an innovative process that took many years to develop.

According to quantitative research performed by independent international market and consumer agency Haystack, Ruby chocolate meets a consumer need no chocolate ever did before. It’s expected that Ruby, like Dark, Milk and White chocolates will be introduced in different product categories.

The invention of Ruby chocolate is the work of global R&D centers of Barry Callebaut, based in France and Belgium – part of a global network of 28 R&D centers- , the Jacobs University, and over 175 years of expertise in sourcing and manufacturing.

The fourth type in chocolate offers a totally new taste experience, which is not bitter, milky or sweet, but a tension between berry-fruitiness and luscious smoothness. To create Ruby chocolate no berries or berry flavor, nor color, is added.

Ruby chocolate has been tested and validated through extensive consumer research run by independent global research agencies Haystack and Ipsos in the UK, US, China and Japan.

As part of these studies, Ruby’s consumer appeal and purchase intent have been tested, indicating consumers would buy Ruby chocolate at different price points.

 

CSIRO maps out Australia’s food future

New technologies could see us eating algae-based sources of protein, developing allergenic-free nuts and tolerable varieties of lactose and gluten, and reducing environmental impact through edible packaging.

Speaking at the launch during the Australian Institute of Food Science and Technology’s (AIFST) 50th Anniversary Convention in Sydney, Assistant Minister for Industry, Innovation and Science, Craig Laundy , highlighted the importance of innovation and entrepreneurship in driving new economic growth in the industry.

Keeping a greater share of food processing onshore and better differentiating Australian food products are major themes across the Roadmap, which calls on businesses to act quickly or risk losing future revenue streams to the competitive global market.

Developed with widespread industry consultation and analysis, the Roadmap seeks to assist Australian food and agribusinesses with the desire to pursue growth and new markets.

Deputy Director of CSIRO Agriculture and Food, Dr Martin Cole said Australia was well positioned to act as a delicatessen of high-quality products that meet the needs of millions of informed and discerning customers both here and abroad.

“Australian businesses are among the most innovative in the world, and together with our world-class scientists, can deliver growth in the food and agribusiness sector amid unprecedented global change,” Dr Cole said.

“Less predictable growing conditions, increasingly global value chains and customers who demand healthier, more convenient and traceable foods are driving businesses to new ways of operating.

“Advances are already being made through the use of blockchain technology and the development of labels that change colour with temperature or time, or are programmed to release preservatives.

The Roadmap was developed in collaboration with the government-funded food and agribusiness growth centre: Food Innovation Australia Limited (FIAL).

Recently, FIAL launched their Sector Competitiveness Plan, which outlines the over-arching industry vision to grow the share of Australian food in the global marketplace and the necessary strategy to achieve the vision.

“With the growing Asian middle class, Australia is in the box seat to take advantage of the many emerging export opportunities,” FIAL Chairman Peter Schutz said.

“Consumers are looking for differentiated products that cater to their needs.

“This is especially exciting for Australian food and agribusinesses which have the capability to respond with customised and niche products.”

Currently, Australia exports over $40 billion worth of food and beverages each year with 63 per cent headed for Asia.

Dr Cole explained that Australia is a trusted supplier of sustainable, authentic, healthy, high quality and consistent products.

“We must focus on these strengths and enhance the level of value-adding to our products,” DrCole said.

“Recent Austrade analysis shows early signs of such a shift, as for the first time in Australia’s history value-added foods have accounted for the majority (60 per cent) of food export growth.”

The Roadmap outlines value-adding opportunities for Australian products in key growth areas, including health and wellbeing, premium convenience foods and sustainability-driven products that reduce waste or use less resources.

Five key enablers for these opportunities are explored in the Roadmap: traceability and provenance, food safety and biosecurity, market intelligence and access, collaboration and knowledge sharing, and skills.

These enablers align with FIAL’s knowledge priority areas that are central in helping the food and agribusiness industry achieve its vision and deliver increased productivity, sustainable economic growth, job creation, and investment attraction for the sector.

The Roadmap calls for improved collaboration and knowledge sharing to generate scale, efficiency and agility across rapidly changing value chains and markets.

“To survive and grow, the challenge facing Australia’s 177,000 businesses in the food and agribusiness sector is to identify new products, services and business models that arise from the emerging needs of tomorrow’s global customers,” Dr Cole said.

Kitkat Secret Garden

Kitkat has collaborated with former MasterChef contestant, Reynold Poernomo, to craft a limited edition chocolate dessert – Kitkat Secret Garden.

Using his expertise and passion for innovative sweet treats, Rey’s latest creation celebrates three flavour combinations from the new ‘Inspired By KitKat Chocolatory’ range.

The three new flavours – Mint Cream & Cookie Smash, Caramel Burst & Sea Salt and Espresso Biscuit & Ganache – have been influenced by popular bespoke creations made in the Kitkat Chocolatory in Melbourne.

The dessert features a large gold-dusted chocolate sphere which can be literally smashed open, to reveal the decadent layers within.

The dessert is served with Kitkat Espresso Biscuit & Ganache gelato and a nitrogen mousse, topped with micro mint and chocolate crumble.

The  range is available now in 140g block format at Coles and independent retailers including IGA.