08 2009 GlobalFood&Beverage&LiquorIndustryIntelligence

SEPTEMBER 2009

IN FOCUS….

TEA CONSUMERS MAY HAVE YOUNGER BIOLOGICAL AGE

The cells of regular tea drinkers may have a younger biological age than cells from non-drinkers, according to new research from

China. Researchers from the Chinese University of Hong Kong looked at the length of telomeres, DNA sequences at the end of

chromosomes that shorten as cells replicate and age. The ageing and lifespan of

normal, healthy cells are linked to the so-called telomerase

shortening mechanism, which limits cells to a fixed

number of divisions. During cell replication, the

telomeres function by ensuring the cell's

chromosomes do not fuse with each other or

rearrange, which can lead to cancer. Elizabeth

Blackburn, a telomere pioneer at the

University of California San Francisco,

likened telomeres to the ends of shoelaces,

without which the lace would unravel. With

each replication the telomeres shorten, and

when the telomeres are totally consumed,

the cells are destroyed (apoptosis). Previous

studies have also reported that telomeres are

highly susceptible to oxidative stress. Some

experts have noted that telomere length may be

a marker of biological ageing. The Hong Kong-

based researchers, noted that the telomeres of

people who drank an average of three cups of tea per

day were about 4.6 kilobases longer than people who

drank an average of a quarter of a cup a day. Green tea contains

between 30 and 40 per cent of water-extractable polyphenols, while black tea (green tea that has been oxidized by fermentation)

contains between 3 and 10 per cent. The four primary polyphenols found in fresh tealeaves are epigallocatechin gallate (EGCG),

epigallocatechin, epicatechin gallate, and epicatechin. Overall, only tea consumption was associated with telomere length. The

highest intakes, three cups or 750 millilitres per day, was associated with significantly longer telomere lengths, compared to

people who drank 70 millilitres per day or less, said the researchers.

www.pleasantstonefarm.com

Market Watch – Global – Food, Beverage & Liquor September 2009

INDEX

1. INDUSTRY NEWS .................................................................................................................................9

1.1 NORTH AMERICA/CANADA.......................................................................................................................9 USA: Economic recession increases consumers' desire for snacks..................................................................................... 9 USA: Explorer's bounty unveils new line of tribal stone crackers...................................................................................... 9 USA: Antioxidants abound in cereals, popcorn, whole-grain snacks- study ...................................................................... 9 USA: Frito-Lay opens co-gen "green" facility.................................................................................................................. 10 USA: Kellogg false advertising complaint finalized......................................................................................................... 10 USA: General Mills to feature smart choices nutrition labeling on packaging................................................................. 10 Canada: Allergy alert-undeclared allergens in Lotte brand snack foods from Korea ....................................................... 11

1.2 LATIN AMERICA.........................................................................................................................................11 Brazil: Brazil Abicab expects Arabs at sweet fair in recife............................................................................................... 11

1.3 UK/EUROPE/RUSSIA...................................................................................................................................12 UK: It's healthy to munch on popcorn .............................................................................................................................. 12 Europe: European Union to limit health claims on cereal packets.................................................................................... 12 Sweden: GDA labels from Coca-Cola, OLW and Quaker Oats reported to KO .............................................................. 12

1.4 ASIA & PACIFIC...........................................................................................................................................13 Australia: Snacks that are worth their salt......................................................................................................................... 13 Australia: Time to trim down on treats ............................................................................................................................. 13

1.5 MIDDLE EAST & AFRICA .........................................................................................................................13 Middle East: Open display of food forbidden................................................................................................................... 13 Middle East: New sweets, confectionary and snack technology show to run alongside sweets Middle East ................... 14 Israel: Hefestus launches new system for shelf-life boost................................................................................................. 14

2. SNACK FOOD ......................................................................................................................................15

2.1 NORTH AMERICA/CANADA.....................................................................................................................15 USA: Tropical Foods launches five snack mixes.............................................................................................................. 15 USA: US functional foods market worth $27 billion........................................................................................................ 15 USA: Pepperidge Farm adds veggies to Goldfish Crackers.............................................................................................. 15 USA: Duncan Hines launches new products..................................................................................................................... 16 USA: Snack maker nibbles way to new price high ........................................................................................................... 16 USA: Yogurberry sells nutritious frozen treats foodmorsels many flavors, toppings to choose from.............................. 16 USA: Kellogg's may pop Motley Fool.............................................................................................................................. 16 USA: HEB stores to carry UT Texas A&M-branded chips .............................................................................................. 17 USA: Diamond Foods reports strong snack sales ............................................................................................................. 17 USA: Boulder Canyon Natural Foods introduces first snack chip made from rice and adzuki beans .............................. 17 USA: Corn tortilla chips ................................................................................................................................................... 18 USA: Zero-calorie sweetener............................................................................................................................................ 18

Information Center - Nielsen - India 2


USA: Frito-Lay expands smartfood popcorn clusters line ................................................................................................ 18 USA: LesserEvil named to 2009 Inc. 500 list of America's fastest-growing private companies ...................................... 18 USA: Unilever’s unfrozen ice cream plan ........................................................................................................................ 19 USA: Inventure's Boulder launches adzuki chip line........................................................................................................ 19 USA: Betty Crocker introduces gluten-free mixes............................................................................................................ 19 USA: Unilever marketer reveals Bertolli's secret sauce.................................................................................................... 19 USA: Introducing Perky Jerky...Caffeinated Beef Jerky combines premium quality meat snack with the energy boost. 20 USA: Supervalu expands frozen desserts line................................................................................................................... 20 USA: Tropical Foods introduces new snack mixes........................................................................................................... 20 USA: J.M. Smucker lays the coffee grounds .................................................................................................................... 20 USA: Natural expansion; healthy bites ............................................................................................................................. 21 USA: Monogram Food Solutions to acquire meat snack business of American Foods Group......................................... 21 USA: Ragu old world style pasta sauces. sweet tomato.................................................................................................... 21 USA: Dairy Crest relaunches Clover Spread .................................................................................................................... 21 USA: Land O'Lakes introduces American Deli cheese product made with 2% milk ....................................................... 22 Canada: Organic Meadow launches premium ice cream .................................................................................................. 22

2.2 LATIN AMERICA.........................................................................................................................................22 Argentina: Pepsico set to expand Mar de Plata plant ........................................................................................................ 22 Argentina: Olive oil industry building up regional brands................................................................................................ 22 Brazil: Europeans keen on caipirinha effects .................................................................................................................... 23 Peru: Kraft Foods invests in Peru...................................................................................................................................... 23

2.3 UK/EUROPE ..................................................................................................................................................24 UK: Heinz real taste of home: Steak & Guinness Casserole Soup ................................................................................... 24 UK: Madrigal Participaciones may acquire Ibersnacks Snacks ........................................................................................ 24 UK: Biscuit maker looks for funding to secure future ...................................................................................................... 24 UK: Unilever Coy over ambient ice cream plans.............................................................................................................. 24 UK: McVitie’s Mini pouches mean big sales in sharing................................................................................................... 24 UK: Warburtons’ limited edition winter fruit loaf is back ................................................................................................ 25 UK: PepsiCo to launch product health audit ..................................................................................................................... 25 UK: First half of 2009: Nestlé delivers 3.5% organic growth combined with a 30 bps EBIT margin improvement........ 25 Europe: Unilever boosts ice cream capacity ..................................................................................................................... 25 Belarus: 3,300 tons of ice-cream sold in Minsk in H1 2009 ............................................................................................. 26 Belarus: Brestkhlebprodukt to invest BYR 2.4bn in productive facilities ........................................................................ 26 Czech: Czech cheese passion ............................................................................................................................................ 26 Finland: Sales of oat meal have increased clearly in 2009................................................................................................ 26 Finland: Helsinki Mills launches organic instant oatmeal ................................................................................................ 27 Latvia: Company Pure Food to produce branded sweets .................................................................................................. 27 Norway: Higher turnover for Tine in H1 .......................................................................................................................... 27 Poland: Snack sales grow despite decreasing beer sales ................................................................................................... 27 Poland: Nestle records 18% revenue increase in H1......................................................................................................... 27



Poland: Agros Nowa to develop ready-made meal and preserve offer ............................................................................. 28 Romania: Kraft Foods enters the ice cream market via Darko......................................................................................... 28 Slovakia: Ice cream sales not affected by crisis ................................................................................................................ 28 Sweden: Organic food producer expects sale rise............................................................................................................. 28 Sweden: Skåne-möllan's operating profits up H1 ............................................................................................................. 28 Russia: Vologodskaya Yagoda begins new investment project ........................................................................................ 29 Russia: Ex owners of Baltimor to set up holding Solnechnaya Kultura ........................................................................... 29 Russia: Butter and cheese base Chuvashskaya introduces new ice-cream Briz ................................................................ 29 Russia: Orkla may strengthen its positions in Petersburg waffle market .......................................................................... 29 Russia: 'Zhitnitsa' flour enhances taste of natural additives in bakery .............................................................................. 29 Russia: Facility illegally producing tea under trademark Lipton liquidated ..................................................................... 30 Ukraine: Output of chocolate and cookies decreases ........................................................................................................ 30

2.4 ASIA PACIFIC...............................................................................................................................................30 Australia: Nestlé gets ice cream go-ahead ........................................................................................................................ 30 Australia: Ben & Jerry's to scoop chunk of market........................................................................................................... 31 New Zealand: Selling ice cream to the Russians .............................................................................................................. 31 China: Golden Dragon Holdings enters into distribution agreement with Vosges ........................................................... 31 China: China Marine Food Group Ltd. develops four new products for consumer tastes in Sichuan area....................... 31 China: Haagen-Dazs China turnover grow 40% annually ................................................................................................ 32 China: Sales up but profits down at Want Want; Financial report.................................................................................... 32 India: In a trice .................................................................................................................................................................. 32 India: Japanese food giant Ajinomoto eyes mergers and acquisition in India .................................................................. 32 India: Eastern's new ready-to-cook products .................................................................................................................... 32 India: Snack time .............................................................................................................................................................. 33 Japan: Pepsi in Calbee Snack Food joint venture.............................................................................................................. 33 Japan: Devil Kings in snack food form............................................................................................................................. 33 Japan: Ajinomoto steps up global push............................................................................................................................. 33 Malaysia: New brews to perk up market share ................................................................................................................. 34 Singapore: The Singaporean Savory Snacks market generated total revenues of $115.9 Million in 2008 ....................... 34 Vietnam: Foreign investment Kinh do expands bakery franchise in Vietnam.................................................................. 34

2.5 MIDDLE EAST & AFRICA .........................................................................................................................35 Nigeria: Nestlé bracing for strong Q3............................................................................................................................... 35 Uganda: Dairibord collapses ............................................................................................................................................. 35 Zimbabwe: Cairns coming back........................................................................................................................................ 35 Middle East: Consumers in the UAE and Qatar will find the Italian "Autentica Trattoria" potato chips and Bruschetti

'simply irresistible’............................................................................................................................................................ 36 Middle East: Kraft Bahrain cuts water wastage ................................................................................................................ 36 Middle East: Oatmeal with pig gelatine pulled in Qatar .................................................................................................. 36 Middle East: Kraft Foods reports operating income increase of 7.6% from the previous year......................................... 36 Middle East: Halwani aiming to double sales growth....................................................................................................... 37



3. CONFECTIONERY..............................................................................................................................37

3.1 NORTH AMERICA/CANADA.....................................................................................................................37 USA: Introduces stress-suppressing chewing gum ........................................................................................................... 37 USA: Kegg's Candies expands operations to second site owner reports sweet success as demand grows ....................... 38 USA: US closures sour Lindt H1 ...................................................................................................................................... 38 USA: Rita's partners with Cadbury for Swedish Fish flavor............................................................................................. 38 USA: Warheads candy...................................................................................................................................................... 39 USA: Godiva unveils accessible posh chocs Gems .......................................................................................................... 39 USA: Kraft's Toblerone gains competition from former distributor ................................................................................. 39 USA: Candy chain Fannie May outlines expansion.......................................................................................................... 39 USA: Choclatique introduces Napa Valley Wine Chocolates .......................................................................................... 39 USA: Richardson Foods acquires Bogdon Candy from Dynamic Confections ................................................................ 40

3.2 LATIN AMERICA.........................................................................................................................................40 Argentina: Companies look to new funding sources......................................................................................................... 40 Chile: Sweets being chewed as always ............................................................................................................................. 40

3.3 UK/EUROPE ..................................................................................................................................................41 UK: Mars rationalises Christmas offering ........................................................................................................................ 41 UK: Gilded £1000 Wispa Gold is the world's most expensive chocolate bar ................................................................... 41 UK: Aim Gifts Jammin' Lollipops in musical shapes ....................................................................................................... 41 UK: Wrigley adds variant to Locket range ....................................................................................................................... 41 UK: Cadbury much-loved Wispa bar back with special edition costing pounds 961.48 .................................................. 42 UK: Lebanese chocolate maker Patchi plans Dubai listing............................................................................................... 42 UK: New chocolate won't melt in your hand .................................................................................................................... 42 UK: Change of flavour needed ......................................................................................................................................... 42 UK: Galaxy moves into large chocolate blocks ................................................................................................................ 44 UK: UK chocolate sales bolster Nestle ............................................................................................................................. 44 Ireland: Gormley chews over tax on gum ......................................................................................................................... 44 Croatia: IPK Kandit posts results for H1 of 2009 ............................................................................................................. 44 Finland: Confectionery products sell well in spite of recession........................................................................................ 45 Finland: Malaco launches new Must confectionery.......................................................................................................... 45 Finland: Confectionery company Panda's sales to grow in 2009 ...................................................................................... 45 Germany: Rising sales fail to stem Halloren H1 losses .................................................................................................... 45 Hungary: Mars Hungary set for tougher year in 2009 ...................................................................................................... 45 Italy: Ferrero wins praline battle with Russia ................................................................................................................... 46 Latvia: Skriveru Saldumi plans to launch three new kinds of candies Gotina .................................................................. 46 Poland: Cadbury continues its EUR 200mn investment plan ........................................................................................... 46 Poland: Pastiglia Leone to introduce chocolate packed in tubes....................................................................................... 47 Poland: Cadbury Wedel to go ahead with E200 million Skarbimierz sweet factory ........................................................ 47 Romania: Kraft Foods starts redundancies at Brasov chocolate factory ........................................................................... 47 Russia: Perfetti van Melle offers new soft jellies.............................................................................................................. 47



Russia: Abakan Confectionery Factory launches new candies ......................................................................................... 47 Russia: Voronezh Confectionery improves financial results in Q2 2009.......................................................................... 47 Russia: Confectionery factory Lamzur introduces sweets iced in white chocolate........................................................... 48 Russia: Chandenie to launch products under private label of Metro C&C ....................................................................... 48 Russia: Krupskaya Confectionery Factory and Pekar sign agreement.............................................................................. 48 Russia: Russia's Red October RAS net loss narrows 17.6% on year in Jan-Jun ............................................................... 48 Russia: Output of confectionery decreases in Rostov region............................................................................................ 49 Russia: Nestle Russia chooses Pravila Uspekha to deliver gift tubes ............................................................................... 49 Ukraine: Nestle to expand confectionery operations ........................................................................................................ 49

3.4 ASIA PACIFIC...............................................................................................................................................49 Australia/New Zealand: Cadbury's Fairtrade Dairy Milk to hit Canada, down under ...................................................... 49 Australia: Amcor settles for $193 million in Australia ..................................................................................................... 50 Australia: Chocolate maker's ban worries Pacific............................................................................................................. 50 New Zealand: Cadbury in New Zealand to stop using palm oil in its chocolate............................................................... 50 India: States Campco to raise eclair production capacity.................................................................................................. 51 India: Toon Kidz to foray into chocolate business............................................................................................................ 51 India: Perfecting Perfetti ................................................................................................................................................... 51 Japan: 'Gari'-flavored candy.............................................................................................................................................. 51

3.5 MIDDLE EAST & AFRICA .........................................................................................................................52 Middle East: Caramel--oops, camel delights .................................................................................................................... 52 Middle East: Al Nassma to expand into US, Japan markets ............................................................................................. 52 Middle East: Middle East in top ten confectionary markets in the world ......................................................................... 52

4. BEVERAGES/softdrink/LIQUOR .......................................................................................................53

4.1 NORTH AMERICA/CANADA.....................................................................................................................53 USA: Pepsi offer sweetened ............................................................................................................................................. 53 USA: Coca-Cola Enterprises to close Kansas bottling plant............................................................................................. 53 USA: The ICEE(r) company launches iced coffee by Javo Beverage .............................................................................. 53 USA: Mike's Hard Lemonade(TM) new packaging design by Anthem Worldwide results in sales lift........................... 53 USA: Soft drink sales could be hit by new legislation...................................................................................................... 54 USA: Sugar guidelines could hurt soft drink firms........................................................................................................... 54 USA: Nitrous Monster First Energy Drink with Nitrous Oxide; new product launches in new re-sealable 12 oz. Rexam

.......................................................................................................................................................................................... 54 USA: Pernod Ricard unveils added value packs ............................................................................................................... 55 USA: Krystal unveils new energy drink aimed at young males........................................................................................ 55 Canada: Corby Distilleries FY profits fall ........................................................................................................................ 55

4.2 LATIN AMERICA.........................................................................................................................................56 Brazil: PepsiCo buying Brazilian coconut water maker.................................................................................................... 56 Brazil: Citrus BR to show realities of orange processing industry.................................................................................... 56 Brazil: Brazil is back to the orange trade war with the US ............................................................................................... 56



Brazil: Brazil grape juice promoted worldwide ................................................................................................................ 56 Colombia: Coca-Cola Femsa invests in Colombia............................................................................................................ 57 Mexico: PBG to distribute Rockstar in Mexico ................................................................................................................ 57 Mexico: Coca-Cola Femsa, S.A.B de C.V. higher raw material costs to bottle up margins, going forward .................... 58 Mexico: Coca Cola to invest 10 bln dlrs in Mexico to produce fruit juice ....................................................................... 58

4.3 UK/EUROPE ..................................................................................................................................................58 UK: Nestlé forecast cut ..................................................................................................................................................... 58 UK: Carlsberg UK trials new drink for women ................................................................................................................ 59 UK: Makana introduces two new wines to the UK........................................................................................................... 59 UK: Crisis quenches demand for premium drinks ............................................................................................................ 59 UK: Coca-Cola HBC S.A. half yearly report.................................................................................................................... 59 Europe: Pernod Ricard continues to reduce its debt with the disposal of Tia Maria to Illva Saronno for 125 Million..... 60 Ireland: Supervalu to make further price cuts ................................................................................................................... 60 Belarus: Belgospischeprom proposes to develop licensed production.............................................................................. 60 Belarus: Starodorozhsky fruit, vegetable plant to produce juice Spadar........................................................................... 60 Belarus: Output of vodka and cognac increases in H1 2009............................................................................................. 61 Belarus: Veynyansky Rodnik introduces several novelties............................................................................................... 61 Czech: The consumption of Coca-Cola decreased in the Czech Republic........................................................................ 61 Finland: Sales of beer fell by 0.1% in January-June 2009 ................................................................................................ 61 Germany: German beer sales sink to all-time low; aging, changing health habits, even weather play a role................... 61 Hungary: Nielsen's report on sales of fruit and vegetable juice ........................................................................................ 62 Latvia: Spilva begins producing juice, nectar ................................................................................................................... 62 Latvia: 2008 profit of Coca-Cola HBC Latvia down 18 pct; sales reach Eur 31 mln ....................................................... 62 Norway: Water sales up by 2.3%, soft drink sales up by 3.1% in July ............................................................................. 63 Poland: Soft drink market predicted to grow to EUR 4.79bn in 2009 .............................................................................. 63 Poland: Soft drinks sell well in Poland ............................................................................................................................. 63 Sweden: Kiviks Musteri and KM Produktion to merge .................................................................................................... 63 Sweden: Coca-Cola launches Mer in 1-litre cartons ........................................................................................................ 63 Turkey: Anadolu Efes to restructure Etap as joint venture company................................................................................ 64 Russia: WBD Foods swings to RAS net profit in January-June ....................................................................................... 64 Russia: Foreign companies control 40% of juice market.................................................................................................. 64 Russia: RAS net profit of Lebedyansky juice maker drops 84% y/y in H1 ...................................................................... 64 Russia: SABMiller launches Grolsch in Russia ................................................................................................................ 64 Kazakhstan: Carbonated drinks sales to start growing in 2011......................................................................................... 65 Ukraine: Erlan and AVI may start producing iced tea Dilmah ......................................................................................... 65

4.4 ASIA PACIFIC...............................................................................................................................................65 Australia: Coca-Cola Amatil expects high single digit growth in 2nd half....................................................................... 65 Australia: Linfox the big cheese with $2b deal................................................................................................................. 65 New Zealand: Suntory's Frucor gets Simply Squeezed buy green light............................................................................ 65 China: Shuaiyi International announces plan to launch a new product: Cordyceps-Cereal Beverage .............................. 66



China: Coca-Cola expands as Huiyuan considers its options ........................................................................................... 66 China: Coca-Cola, PepsiCo, Huiyuan Juice and Tsingtao named as top water polluters in Beijing................................. 67 Hong Kong: Huiyuan Juice Group issues H1 profits warning .......................................................................................... 67 India: Organic tea.............................................................................................................................................................. 67 India: Drinks industry growth fuels sustainability row in India........................................................................................ 67 India: Pepsi to take Nimbooz to South & East.................................................................................................................. 68 India: Brand Calculus to invest in more Booster Juice outlets in Indian metros............................................................... 68 India: Indian alcoholic beverages industry demands tax cut on liquor ............................................................................. 68 Japan: Japan's Meiji Seika, Pokka to introduce Cocoa-coffee drink................................................................................. 68 Japan: The conclusion of a distribution agreement in Japan Market with Doehler, the no.1 biggest juice compound

manufacturer/supplier in the world ................................................................................................................................... 69 Japan: Sapporo moves to boost soft drink business .......................................................................................................... 69 Japan: Kirin, Asahi take rivalry into no-alcohol arena...................................................................................................... 69 South Korea: Lotte hits below belt to score instant success.............................................................................................. 70 Malaysia: FMCG acquisitions and consolidation ............................................................................................................. 70 Philippine: Coca-Cola set to invest $1 B in RP expansion ............................................................................................... 70

4.5 MIDDLE EAST & AFRICA .........................................................................................................................71 Egypt: Carbonates to continue dominating ....................................................................................................................... 71 Ghana: Number one energy drink hits market .................................................................................................................. 71 Nigeria: Coca-Cola shuts Ota plant................................................................................................................................... 72 Rwanda: Opening of New Inyange Industries delayed again ........................................................................................... 72 Rwanda: Gov't earmarks $700,000 for concentrate plant ................................................................................................. 72 Uganda: Water, juice makers to be registered................................................................................................................... 73 Uganda: Food processing plant launched.......................................................................................................................... 73 Middle East: Nichols' sales sparkle due to Vimto's growing appeal ................................................................................. 73 Middle East: PepsiCo and Almarai JV set to acquire Beyti .............................................................................................. 73 Middle East: PepsiCo moves Gulf HQ to Saudi .............................................................................................................. 74

COMPANY INDEX ........................................................................................................................................75



1. INDUSTRY NEWS

1.1 NORTH AMERICA/CANADA

USA: ECONOMIC RECESSION INCREASES CONSUMERS' DESIRE FOR SNACKS Snack foods -- whether sweet or salty, traditional or cutting edge, organic or vitamin fortified, healthy or indulgent --

play an integral part in the American lifestyle. And now more than ever, Americans are craving these delectable treats

according to "Sweet and Salty/Savory Snacks in the U.S.: Lifestyle Marketing and New Product Development in the

New Economy, 3rd Edition" by leading market research publisher Packaged Facts. This increased desire stems, in part,

from the recession, which has snack consumers embracing a value mentality that prizes quality and whole ingredients,

better-for-you recipes, and green production practices. While low prices are always a draw, consumers are seeking

snacks with fewer additives or preservatives, and are spending extra dollars for organic and premium snack treats that

can boost their flagging spirits over the long climb back to prosperity. Savvy marketers taking advantage of consumers'

intensifying desires for value and wholesome packaged snacks will help the industry near $82 billion by 2013, a 20%

increase from the $68 billion experienced in 2008.

Marketwire: August 24, 2009

USA: EXPLORER'S BOUNTY UNVEILS NEW LINE OF TRIBAL STONE CRACKERS A new 100% certified organic snack will soon be hitting supermarket shelves. Explorer's Bounty is pleased to announce

the debut of its new Tribal Stone Crackers. Launching in July 2009, Tribal Stone Crackers are the first snack of their kind

in the world to be made from Rainforest Alliance Certified Yuca. In addition to being 100% certified organic and

authentic, these artisan-baked crackers have no added sweeteners, are gluten free, allergen and fat free as well as vegan

friendly. A starchy tuberous root, Yuca (also known as cassava) has earned the distinction of being the third largest

source of carbohydrates for human food in the world. The root contains significantly more fiber content than a potato.

Explorer's Bounty has stone-ground and artisan-baked that natural and healthful Yuca to create a line of snack crackers

that are not only good for people but also flavorful. Tribal Stone Crackers are currently available in original, cinnamon,

garlic and onion varieties. Tribal Stone Crackers are manufactured through a Mancion partnership. A region of

Hispaniola, in Mancion charcoal is used as the primary energy source. There, however, the facility that produces the

Explorer's Bounty line of Tribal Stone Crackers has converted away from charcoal energy. Instead, it harnesses natural

and organic sources like those obtained from Macadamia nut shells. It is this organic process that is used in the

manufacturing of Tribal Stone Crackers. Good for you, good for the planet. This Mancion partnership is indicative of the

Explorer's Bounty mission. The company searches the globe over for earth-friendly products and strives to support

organic farmers - like those in Mancion - who reduce the pollution and waste that is harmful to the planet.

Obesity, Fitness & Wellness Week: August 1, 2009

USA: ANTIOXIDANTS ABOUND IN CEREALS, POPCORN, WHOLE-GRAIN SNACKS- STUDY Eating a bowl of your favorite cereal every day is a great source of natural antioxidants, new research shows. a professor

of chemistry at the University of Scranton, in Pennsylvania, and his team have found that nearly all whole-grain breakfast

cereals and many common, grain-based snacks contain substantial amounts of polyphenols, a form of antioxidants that is



thought to have major health benefits. Vinson was scheduled to present his findings at the American Chemical Society

annual meeting, held in Washington, D.C.

Consumer Health News (English): August 18, 2009

USA: FRITO-LAY OPENS CO-GEN "GREEN" FACILITY PepsiCo recently opened its Frito-Lay Killingly, "green" manufacturing facility in the US state of Connecticut. The

facility, funded by a government support grant, features a co-generation system, which will produce almost 100% of the

site's electrical requirements. The facility will use the waste heat generated to produce steam to help with the

manufacturing of its snack products, which PepsiCo said would help the site reduce its environmental footprint. With the

installation of the co-gen system, Frito-Lay said the site will reduce carbon dioxide and nitrous oxide emissions, which

contribute to greenhouse gas.

www.just-food.com

USA: KELLOGG FALSE ADVERTISING COMPLAINT FINALIZED After a 30-day public comment period, the Federal Trade Commission said that it finalized a complaint against Kellogg

Co. for claiming its Frosted Mini-Wheats were clinically shown to improve kids' attentiveness by nearly 20 percent. The

Commission alleged that the claims - made nationally in television, print and Internet advertising, as well as in product

packaging - were false and violated federal law. The complaint alleged that, in fact, and only about one in nine children

who ate Frosted Mini-Wheats for breakfast improved by 20 percent or more, and only about half the children showed any

improvement in attentiveness. Kellogg agreed to settle the charges. The settlement, made final by a Commission vote of

4-0, bars deceptive or misleading cognitive health claims for Kellogg's breakfast and snack foods. It also bars the

company from misrepresenting any tests, studies or research regarding any morning or snack food product.

Battle Creek Enquirer (Michigan): August 3, 2009

USA: GENERAL MILLS TO FEATURE SMART CHOICES NUTRITION LABELING ON

PACKAGING Reflecting its support of a national initiative designed to promote public health, General Mills soon will feature a new

nutrition labeling system on its packaging (see also General Mills). Smart Choices, launching is the first-ever uniform

front-of-package nutrition labeling program. Approximately 500 products from eight companies (General Mills,

ConAgra Foods, PepsiCo, Kraft Foods, Sun-Maid, Unilever - U.S., Tyson and Kellogg Company - U.S.) have qualified

for the Smart Choices' green check mark in the program's 19 categories. The number of products is expected to more than

double by next spring. Dozens of General Mills products will carry the green check mark, including Yoplait Light

yogurts, Green Giant frozen vegetables, most Progresso lower-sodium soups and virtually all Big G cereals, including all

kid cereals. The company plans to phase in the use of Smart Choices to coincide with other packaging changes. General

Mills supports the Smart Choices program because it is a single, credible system that will help eliminate consumer

confusion, predicts Susan Crockett, RD, Vice President of the General Mills Bell Institute of Health and Nutrition.

Lab Law Weekly: August 21, 2009



CANADA: ALLERGY ALERT-UNDECLARED ALLERGENS IN LOTTE BRAND SNACK FOODS

FROM KOREA The Canadian Food Inspection Agency (CFIA) is warning people with allergies to almond, egg, milk, peanut and soy not

to consume the Lotte brand snack foods described below. These products contain allergens which are not declared on the

label. All codes of the following Lotte brand snack foods, imported from Korea, are affected by this alert. Product

information can be found on the package and the sticker applied for the Canadian market.

Product Size UPC Undeclared Allergens

Snack (Kancho) 50 g 8 801062 247417 Almond, egg, milk

Snack (Kancho) 200 g 8 801062 247578 Almond, egg, milk

Cookie (Margaret) 228 g 8 801062 248537 Almond, egg, milk, peanut and soy

These products are known to have been distributed in Alberta, Ontario, Quebec and Nova Scotia. However, they may

have been distributed nationally. There have been no reported allergic reactions associated with the consumption of these

products. Consumption of these products may cause a serious or life-threatening reaction in persons with allergies to

almond, egg, milk, peanut and soy. The importer is voluntarily recalling the affected products from the marketplace. The

CFIA is monitoring the effectiveness of the recall.

Canadian Corporate Newswire: August 26, 2009

1.2 LATIN AMERICA

BRAZIL: BRAZIL ABICAB EXPECTS ARABS AT SWEET FAIR IN RECIFE The 12th edition of Sweet Brazil International, a sweet fair to take place from August 10th to 13th, in Recife, capital of

Pernambuco state, should receive international buyers from the Americas, Africa, the Middle East and Europe.

According to information disclosed by the Brazilian Cocoa and Confectionery Manufacturers Association (Abicab),

which organizes the event, Arab importers always participate. The organisation sent mail shots to 2,000 buyers inviting

them to the fair. Apart from that, the participating companies themselves usually invite their clients. In the case of

company Itamaraty, for example, a maker of biscuits, coffee and chocolate, the packages of the line of wafers to be

presented at the event should be translated into Arabic. The company, which already exports to the region, wants to

expand sales to the Arab market and hopes to meet buyers at the fair. In total, 32 companies should exhibit at Sweet

Brazil, a low number, but which represents 96% of the Brazilian chocolate production, 86% of the sweets and chewing

gum and 60% of the peanut market. The companies promise to show around 100 novelties at the fair. According to

figures supplied by the Abicab, Brazil is currently the fourth main world producer of chocolate, sweets and chewing

gum. Last year, Brazilian sector exports totalled US$ 329 million, growth of 9.3% over 2007. Brazilian products were

shipped to 142 countries on all continents, being the main clients in the United States, Argentina, Paraguay, Uruguay and

South Africa. To the Arab countries, exports totalled US$ 6.85 million, which represented growth of 19% over 2007. The

Brazilian sweet industry is the fourth largest producer and the third largest exporter globally. Sweet Brazil should take

place in the sidelines of the 29th Annual Convention of Wholesale Distributors, promoted by the Brazilian Association of

Wholesalers and Distributors (Abad). The event is recognised as one of the main meetings in the sector in Brazil and is

considered the largest in the sector in Latin America.

InfoProd: August 2, 2009



1.3 UK/EUROPE/RUSSIA

UK: IT'S HEALTHY TO MUNCH ON POPCORN Popcorn could become the latest health food. The traditional cinema snack contains "surprisingly large" amounts of

healthy antioxidant plant chemicals called polyphenols, say scientists. Tests showed that the compounds account for

2.5% of popcorn kernels' weight - higher than in a range of other cereal products. Polyphenols - also found in fruits,

vegetables, chocolate, wine, coffee and tea - are known to protect the heart and reduce the risk of cancer.

The Mirror (London, England): August 19, 2009

EUROPE: EUROPEAN UNION TO LIMIT HEALTH CLAIMS ON CEREAL PACKETS Breakfast cereal producers may be forced to withdraw health claims used to promote their products, under European

Union regulations. Many products in the pounds 1.3 billion a year cereals market use health claims based on a few

ingredients even though they also include high levels of potentially unhealthy ingredients such as sugar, fat or salt. The

European Food Safety Authority is reviewing around 4,000 claims made by food producers, including cereal

manufacturers. Many of the 60 rulings published so far, covering products such as probiotic drinks and yogurts, have

dismissed the alleged health benefits. The European Commission is also developing a scheme to stop food manufacturers

promoting products on the basis of one or two healthy ingredients if they also include "high'' levels of sugar, saturated fat

or salt. While health campaigners including the Food Standards Agency believe that products should be considered

"high'' in sugar if it is above 15 per cent, Europe is likely to settle on a figure between 20 and 25 per cent for cereals. But

even at these higher levels cereal manufacturers could be forced to change the way they market their products. Many of

the cereals likely to be affected are aimed at children, such as Sugar Puffs which claim to "help growth, maintain healthy

skin and eyes, and boost the digestive and nervous systems'' even though they contain 35 per cent sugar. Other cereals are

aimed at an adult slimming market such as Kellogg's Special K Yoghurty, which contains 23 per cent sugar. Even muesli

could be affected by the regulations.

The Daily Telegraph (London): August 24, 2009

SWEDEN: GDA LABELS FROM COCA-COLA, OLW AND QUAKER OATS REPORTED TO KO The Swedish consumer organisation Sveriges Konsumenter has reported Guidance Daily Amount (GDA) labels used by

Coca-Cola, OLW and Quaker Oats to the Consumer Ombudsmannen (KO) as it believes these labels are misleading and

suggest that the products are healthier than they are. Coca-Cola has been reported as the GDA label on its 50-centilitre

bottle assumes that the bottle is two portions, because it uses different portion sizes for 25-centilitre bottles and 33-

centilitre cans and because of its claim of 0% sugar and fat. OLW has been reported as its GDA label for crisps uses 25

gramme portion sizes, which means the number of calories per portion can be misleading. Quaker Oats has been reported

for its GDA label on Kalaspuffar [Sugar Puffs], which is a product for children, as it has used the recommended daily

intake for an adult woman. GDA labels are used in Sweden by several companies, including Kelloggs, Kraft,

Masterfoods, Nestlé and Unilever.

Dagens Handel: August 27, 2009



1.4 ASIA & PACIFIC

AUSTRALIA: SNACKS THAT ARE WORTH THEIR SALT The desire for comfort food by consumers has generated an almost 13% increase in sales of salty snackfoods for the year

ending June 2009. Economic conditions are causing people to stay at home, which is leading to indulgences such as salty

snacks. New products are being introduced, the demographic is getting older and the industry is rationalising. Australian

soft drink cans are 375ml and one 600ml bottle of Coke contains 71 per cent of the recommended daily intake of sugars.

Chocolate bars in Australia vary widely, starting around 20g.In Australia, Mars bars have shrunk from 60g to 53g with

another 90 products to follow suit, Cadbury Dairy Milk family blocks from 250g to 200g, Red Rock Deli family size

chips from 200g to 185g and individual-size Twisties from 50g to 45g.But in most cases the price has remained

unchanged.

The Australian Financial Review: August 13, 2009

AUSTRALIA: TIME TO TRIM DOWN ON TREATS Doctors are urging junk food makers to ignore consumer complaints of being ripped off and cut package sizes to help

tackle the obesity problem. Some manufacturers have already begun shrinking the size of chocolate, soft drink and snack

food packets and containers -- but not the price. But health professionals say the obesity epidemic is so dire the food

industry needs to go further and governments may have to force action.

Sunday Tasmanian (Australia): August 16, 2009

1.5 MIDDLE EAST & AFRICA

MIDDLE EAST: OPEN DISPLAY OF FOOD FORBIDDEN Open displays of food by outlets are not permitted, Khalid Mohammad Sharif, Director of Food Control Department,

Dubai Municipality, said in a memorandum issued to all food outlets. During Ramadan, it is a common practice for the

public to buy snack foods sold on the streets. Dubai Municipality has issued a memorandum in this regard to all food

outlets to ensure that food is prepared and displayed safely during Ramadan. According to the memo, food outlets need a

separate approval to display and sell snacks. All food should be sold in closed display cases in a clean area, free of spills,

dirt and pests. The municipality has stipulated that all snacks with stuffed meat, vegetables and eggs should be kept hot,

at 65C or above, until sold. The memo said that certain snacks like "pakoras" (spicy chickpea deep-fried dumplings) and

other fried food items that are not stuffed can be kept without heat for a period of not more than two hours from the time

of preparation. In addition, food handlers who sell snacks should maintain high standards of personal hygiene and staff

members should not use their bare hands to handle snacks. Snacks should be sold in clean packs. Consumers are advised

not to buy food from outlets that do not follow these instructions. If people find food displayed in the open, they can

report this by telephoning 800900. Food should be consumed as soon as possible and not stored for more than two hours.

The memo also explained correct temperatures help control the growth of pathogens (agents such as bacteria that can

cause disease) in food. Food kept at the wrong temperature is considered a serious health risk. Open display of food lead

to contamination and render the food unsafe for human consumption. Bacteria, viruses and other pathogens can find their

way into the food through a contaminated environment, people and pests.

Gulf News (United Arab Emirates): August 25, 2009



MIDDLE EAST: NEW SWEETS, CONFECTIONARY AND SNACK TECHNOLOGY SHOW TO

RUN ALONGSIDE SWEETS MIDDLE EAST New sweets, confectionary and snack technology show to run alongside sweets Middle East Middle East's only Sweets,

Snacks and Confectionery Exhibition to Showcase the Entire Value Chain from the First Step of Manufacturing Process

to Sales of Finished Products Including raw Materials and Packaging The growing hospitality industry is strongly

influencing the growth and size of the sweets and confectionery market and is already worth AED 300 million in the

UAE and growing at 10% annually. Currently relying on over 80% imported products the UAE Government has a keen

interest in fostering the development of the food processing industry having invested $1US.4 billion since 1994 to

develop a value-added food-manufacturing sector to target local and re-export markets, say reports by Dubai Chamber of

Commerce and Industry. The result is that there are around 150 food processing plants in the country representing a large

number of the region's food manufacturing capability. Valued at $3US billion (2007) the UAE's food processing industry

is growing at 11% a year, according to a report by the Dubai Chamber of Commerce and Industry, owing its growth to

being the world's third largest re-exporter. Recognising the growth and increasing sophistication of the Middle East food

service market, Dubai World Trade Centre and Koelnmesse have partnered to launch Sweet & SnackTec Middle East -

the 1st International Exhibition for Processing, Machinery and Packaging for the Sweets, Confectionery and Snack

Industry. Valued at $3US billion (2007) the UAE's food processing industry is growing at 11% a year, according to a

report by the Dubai Chamber of Commerce and Industry, owing its growth to being the world's third largest re-exporter.

Imports in the GCC region reaching $12US billion annually and worldwide chocolate sales accounting for $4US.2 billion

make Sweets Middle East and Sweet & SnackTec Middle East an important regional platform for the Gulf's snack,

sweets & confectionery industry.

Al-Bawaba: August 19, 2009

ISRAEL: HEFESTUS LAUNCHES NEW SYSTEM FOR SHELF-LIFE BOOST Hefestus, Israel, has created an advanced packaging solution for extending fresh seafood shelf life. This packaging

system protects the safety and freshness of the product while retaining shape and product appearance. Seafood and fish

are highly susceptible to oxidation and degradation. Classic thermal processing methods like cooling usually are

deployed to protect and extend the shelf life of fish and fish products. Other options are to use ice — which requires

special drainage and handling processes to avoid possible pathogenic contamination — or to vacuum-pack with special

equipment. Although there is increasing awareness of health benefits of fish and seafood, consumers often resist

purchasing fresh seafood due to its short shelf life. SLB technology, shelf life booster, further enables manufacturers to

pack fresh fish and seafood and keep its freshness, good flavor and high quality for up to twenty-one days. Restaurants

and retailers often must keep efficient fresh stock of seafood and fish, and so face high logistic and storage challenges as

well as increased costs. Hefestus’ advanced packaging system allows manufacturers and marketers to transport fresh

seafood products to distant destinations without any impact on product odor and appearance.

Food Ingredients First: August 18, 2009



2. SNACK FOOD


USA: TROPICAL FOODS LAUNCHES FIVE SNACK MIXES US snack maker Tropical Foods has launched five snack mixes in a bid to offer healthier snacks in "popular flavours".

Go Bananas, Happy Heart, Heartland, Mango Tango and Neapolitan are all "no- or low-sodium", the company claimed,

with "0g cholesterol and 0g trans fat". All the mixes are sold in bulk quantities of 25lb and in re-sealable acetates. Go

Bananas contains chocolate banana chips, banana chips, peanut butter gems, honey roasted sesame sticks and peanuts.

Happy Heart mixes cranberries, walnuts, almonds, pumpkin seeds, cashews and blueberries. Heartland is a gluten-free

mix of yogurt walnuts, cranberries, blueberries, and almonds. Mango Tango combines dried mango, cashews, coconut

toffee peanuts, pumpkin seeds and chili-lime noodles. Neapolitan mixes strawberry yoghurt raisins, chocolate brownie

bits and yogurt pretzel balls.

www.just-food.com

USA: US FUNCTIONAL FOODS MARKET WORTH $27 BILLION The US functional foods market will grow by up to 20 percent or five times that of the food industry as a whole.

Forecasts range from between 8.5 percent and 20 percent, the finance firm said, compared to one and four percent for the

entire food industry. Functional foods have grown to the point where they account for five percent of the food industry,

with consumers more interested than ever in fortified foods even those whose overall nutrient profile is variable. The

report noted consumers were willing to pay premiums for foods that targeted health problems or provided an alternative

to the likes of soda drinks and empty calorie snacks. And this was so even in hard economic times. Dairy products,

driven by the rise of probiotic products like Yoplait and Dannon's Activia, were the most successful and notched $7

billion in sales in 2007’s or about a quarter of the functional foods total. Functional beverages sold in similar volumes.

The report comes after research conducted by the International Food Information Council (IFIC) that found of those

Americans trying to improve their diets, 79 percent are changing the types of foods they eat, 69 percent are changing the

amount of foods consumed, and 19 percent are changing their use of dietary supplements. In that study, the top functional

food's™ named by consumers (unaided) are: fruits and vegetables, fish/fish oil/seafood, dairy (including milk and

yogurt), meat and poultry, herbs/spices, fiber, tea and green tea, nuts, whole grains and other grains, water, cereal,

oats/oat bran/oatmeal, and vitamins/supplements.

NOVIS Food&Beverage News: August 21, 2009

USA: PEPPERIDGE FARM ADDS VEGGIES TO GOLDFISH CRACKERS Pepperidge Farm, a provider of bakery products in the US, has launched Goldfish Garden Cheddar snack crackers, that

contain 1/3 serving of real vegetables in each serving of Goldfish crackers. According to the company, Goldfish Garden

Cheddar snacks are made without artificial preservatives and contain zero grams of Trans Fat. They are available in two

flavors: Cheddar and Flavor Blasted Xtra Cheddar.

Datamonitor NewsWire: August 28, 2009



USA: DUNCAN HINES LAUNCHES NEW PRODUCTS It was a great promotional package from Duncan Hines that arrived last week, complete with new products for taste-

testing. The new product line includes 100% Whole Grain Muffins, Confetti Cupcakes and Duncan Hines Snack Line.

Duncan Hines has upgraded its existing muffin flavors ± Blueberry Streusel, Wild Maine Blueberry, Chocolate Chip and

Cinnamon ± to 100 percent whole grain and added two new flavors. The muffin mixes contain no trans fats and also use

very little oil in preparation. We taste-tested both new flavors ± Triple Chocolate Chunk and Apple Cinnamon ± and

declared them moist and tasty. Both contained 3 grams of fiber. Each mix yields six large muffins or 12 regular-sized

muffins. Suggested retail prices range from $2.79 to $3.49.

The Baxter Bulletin (Mountain Home, Arkansas): August 26, 2009

USA: SNACK MAKER NIBBLES WAY TO NEW PRICE HIGH Steady grower J&J Snack Foods has broken out of a base in solid volume, thanks to an earnings report that surprised

analysts on the upside. Among its brands are Slush Puppie, Tio Pepe's Churros, Mrs. GoodCookie and Minute Maid

frozen juice products, which it sells under a license from Coca-Cola. Its top customers include Wal-Mart, Target and

Costco. Those discounters have done well during the recession. The Pennsauken, N.J-based company's recent growth

drivers include Daddy Ray's fruit bars, Whole Fruit frozen treats and Hom/Ade Foods, maker of Mary B's biscuits and

dumplings. All three were acquired in 2007 and amount to an extra $100 million in sales. On July 23, J&J reported

earnings of 80 cents a share, a 40% increase from the year-ago quarter. That beat analysts' estimates by 15 cents. Sales

rose 2%.The news sent the stock rocketing out of a base the next day. The stock rose 6% in volume 70% above average.

The company has no debt and a war chest that can be tapped to acquire more product lines. J&J had seven straight years

of earnings growth before stumbling with a 13% decline in 2008.

Investor's Business Daily: August 13, 2009

USA: YOGURBERRY SELLS NUTRITIOUS FROZEN TREATS FOODMORSELS MANY

FLAVORS, TOPPINGS TO CHOOSE FROM If you're searching for frozen treat that's a more healthful alternative to traditional ice cream look no further than

Yogurberry in Eltingville. The non-fat frozen yogurt is about 25 calories per ounce and only four grams of sugar and five

carbohydrates, said Michelle Bae, who opened the shop last October next to the train station. The smallest size cup holds

about six ounces and is about 125 to 150 calories. Waffle cones hold between eight and ten ounces. Flavors of what is

referred to as "original" - this tastes similar to plain yogurt - and strawberry are core menu items. Other varieties include

pomegranate, blueberry or raspberry, green apple, green tea, peach and cantaloupe.

Staten Island Advance (New York): August 5, 2009

USA: KELLOGG'S MAY POP MOTLEY FOOL For risk-shy investors who are ducking into the pantry section of consumer staples, cereal king Kellogg is a natural idea.

But food producers don't guarantee a safe investment; meat mavens Smithfield and Tyson have both posted negative

average operating cash flow growth over the past five years. Still, with many consumers financially pinched and drawn to

cereal as a cheap and easy meal, Kellogg's status as the world's leading cereal maker looks like a decoder ring for profits.

Kellogg's supermarket clout notwithstanding, the company does lag peers in certain areas. Sales growth in the

Asia/Pacific region appears to be several percentage points behind that of General Mills. In addition, shareholders in H.J.

Heinz (a Motley Fool Income Investor recommendation) have benefitted from a faster-growing dividend in the past five



years. Other competitors include Ralcorp, which owns the Post cereal portfolio. And a more immediate threat may come

from private-label brands, which are surging.

Detroit Free Press (Michigan): August 6, 2009

USA: HEB STORES TO CARRY UT TEXAS A&M-BRANDED CHIPS Zapp's Potato Chips has inked licensing agreements with the University of Texas at Austin and Texas A&M University

to produce a line of Longhorn and Aggie chips. The Gramercy, La.-based snack foods company secured the licenses

through The Collegiate Licensing Co., which represents both schools. As part of the agreement, Zapp's Potato Chips will

contribute 10 percent of the wholesale price to the schools to support scholarships, athletes and each school's general

fund. Several major grocers in Texas have already agreed to carry the UT and Texas A&M brands of chips, including

San Antonio-based H.E. Butt Grocery Co. and Central Market. The stores will start carrying Aggie and Longhorn potato

chips this week as fans gear up for the upcoming college football season. The company also arranged separate

agreements with the University of Tennessee and Louisiana State University to market branded chips to fans in those

respective states.

Austin Business Journal (Texas): August 17, 2009

USA: DIAMOND FOODS REPORTS STRONG SNACK SALES Diamond Foods, Inc. announced that snack sales continued to set new records in the Company's fiscal 2009 fourth

quarter as a result of improved distribution in the mass merchandise channel and increased velocity in the grocery

channel. Led by its innovative 100-calorie pack portion control items, Emerald snack nuts achieved meaningful new shelf

placements at two major retailers in the mass merchandise channel. One of these items, Emerald 100-Calorie Pack Cocoa

Roast Almonds, was included in Shape magazine's 2009 Best-Snack Awards, while Weight Watchers magazine said

they've become "a huge fan of these new scrumptious yet healthy cocoa-coated almonds" in the July/August issue now

on newsstands. New Pop Secret microwave popcorn distribution was recently approved at a regional club chain in the

northeast, with shipments scheduled to begin in August. This represents the brand's first major distribution gain in this

channel since being acquired by Diamond in September 2008. In the grocery store channel, Emerald achieved another

market share record during the twelve week period ended July 11, 2009 as share jumped 280 basis points to 8.7 percent.

Sales dollars grew 55 percent and volume grew 59 percent, nearly 20 times faster than the category. For the first time

ever, Emerald had two items ranked among the top 10 best-selling snack nuts: Emerald Dry Roasted Almonds and

Emerald Deluxe Mixed Nuts. Pop Secret sales, which benefited from strong growth in the important 3-count package

segment, increased 5.4 percent overall during the four week period ended July 11.

Food Business Week: August 13, 2009

USA: BOULDER CANYON NATURAL FOODS INTRODUCES FIRST SNACK CHIP MADE FROM

RICE AND ADZUKI BEANS Boulder Canyon(TM) Natural Foods, a leading manufacturer of all-natural snack foods, has introduced the first

mainstream consumer product in the U.S. to feature the adzuki bean, which is celebrated in the Far East for its natural

healing and health properties. Boulder Canyon Rice & Adzuki Bean artisan snack chips are all-natural and feature no

added colors, preservatives or artificial flavorings and are available in three unique, delicious flavors including Sun Dried

Tomato with Basil, Chipotle Cheese and Natural Salt. The chips are available at major grocery stores nationwide with a

suggested retail price between $2.49 and $2.99 per five-ounce bag. The Boulder Canyon Rice & Adzuki Bean chips



blend the taste of the Southwest with the distinctive flavors of Asia. This unique fusion of ethnic cuisines brings the

subtle sweet flavor of the adzuki bean together with a light and crispy chip that creates a one-of-a-kind snack chip that

challenges the potato chip paradigm. The adzuki bean is native to East Asia where it is second in popularity only to the

soybean. In addition to its unique flavor profile, the adzuki bean is naturally rich in fiber, magnesium, potassium, iron,

zinc copper, manganese and vitamin B3.

Biotech Business Week: August 31, 2009

USA: CORN TORTILLA CHIPS Prime Choice Foods' corn tortilla chips are made through an authentic cooking style using a stone-ground process to

capture the pure taste. The chips are offered in organic and all-natural varieties. Retailers can choose from white, yellow

and blue corn chips in all shapes and flavors for their own brand.

Private Label Buyer: August 1, 2009

USA: ZERO-CALORIE SWEETENER Suger Foods Corp. introduces Stevia in the Raw, a natural zero-calorie sweetener derived from the leaves of the stevia

plant, a South American plant that has been used as a sweetener for centuries. A one-gram packet has the sweetening

power of two teaspoons of sugar. Stevia in the Raw uses no additional sweeteners such as cane sugar or sugar alcohols.

Food Service Director: August 15, 2009

USA: FRITO-LAY EXPANDS SMARTFOOD POPCORN CLUSTERS LINE PepsiCo's Frito-Lay North America division has expanded its SmartFood popcorn clusters line. A Peanut Butter Apple

variant is available nationally for $3US.49 and joins the original line of Chocolate Cookie Caramel Pecan, Honey

Multigrain and Cranberry Apple. SmartFood Peanut Butter Apple is available in grocery, retail and mass merchandise

channels in 5.5oz re-sealable multi-serve pouches.

www.just-food.com

USA: LESSEREVIL NAMED TO 2009 INC. 500 LIST OF AMERICA'S FASTEST-GROWING

PRIVATE COMPANIES LesserEvil (www.lesserevil.com), the snack food company dedicated to making delicious, healthier and fun snacks, earns

an overall ranking of 355 on the 28th annual Inc. 500, an exclusive ranking of the nation's fastest-growing private

companies. The snack company that manufactures better-for-you popcorn and potato snacks increased its revenue

696.6% over the four-year period 2005-2008. The company ranked No. 7 in the Top 100 Food & Beverage Companies

and No. 27 in the Top 100 Businesses in New York -- Northern New Jersey -- Long Island, NY, NJ, PA. LesserEvil

Brand Snack Co. started in 2004 with a mission to "make the world a little 'LesserEvil'." The company currently makes

and sells two snack lines, All Natural Kettle Corns and healthier potato snacks called Krinkle Sticks. Both snack lines

meet or exceed the company's general "LesserEvil" snack qualities: full flavor; lower in fat and calorie content; a hearty

serving; free of trans-fatty acids, preservatives and artificial flavors or colors; and fun to eat. The snacks are currently

distributed in major retail and grocery outlets across the Unites States, Canada, and Japan.

Food & Farm Week: August 27, 2009



USA: UNILEVER’S UNFROZEN ICE CREAM PLAN Consumer products giant Unilever, which has a factory in Burton, is devising ice cream to be sold at room temperature.

The company, whose Wellington Road factory produces Marmite, is developing a "low carbon" ice cream which can be

sold at room temperature and frozen at home. Unilever is the world's biggest producer of ice cream, with brands such as

Ben and Jerry's and Magnum - but ice cream is one of its more energy-intensive products because of the need to keep it

frozen during transit and storage. Earlier this month the company announced a two per cent rise in sales between April

and June thanks to a rise in demand for ice cream during the hot weather.

Derby Evening Telegraph: August 25, 2009

USA: INVENTURE'S BOULDER LAUNCHES ADZUKI CHIP LINE The adzuki bean, widely used in eastern Asia, is central to the latest product launched in the US by chip maker Boulder

Canyon Natural Foods. The US firm has added a rice and adzuki variety to its line of "unique chip flavours" and

introduced the first "mainstream grocery product" to use the bean as a primary ingredient, the company said. The line has

gone on sale in Whole Foods Market and Kroger stores and Boulder Canyon said it was "certain" the product will appeal

to US consumers. Boulder Canyon, part of snack food group Inventure, said the adzuki bean line would add to its already

fast-growing range of kettle chips. The firm cited data for the year to 18 April that claimed its brands were the fastest-

growing among the top four in the category, rising by 23% over the period.

www.just-food.com

USA: BETTY CROCKER INTRODUCES GLUTEN-FREE MIXES General Mills' Betty Crocker brand is rolling out four new gluten-free products to store shelves this summer. The

products include favorite mixes such as devil's food cake mix, chocolate brownie mix, chocolate chip cookies, and

yellow cake mix. The increased demand for gluten free products has been on the rise for many years, and for those who

suffer from celiac disease or just want to eat gluten free, these dessert mixes are a great addition to a growing market.

The mixes are made with rice flour in place of traditional wheat flours, which is an acceptable grain for those who suffer

from the disease. The products are also produced in a gluten free environment.

Chocolate Bytes: August 17, 2009

USA: UNILEVER MARKETER REVEALS BERTOLLI'S SECRET SAUCE Unilever's Bertolli brand has gone from the freezer to the red carpet. The brand, which consists of frozen Italian food, has

been behind the scenes at the Golden Globes and Emmy Awards, and was recently served by a chef to Bravo's Kathy

Griffin at an exclusive A-list NYC event. Recently, the brand inked a deal with restaurant operator P.F. Chang's China

Bistro to produce a line of Asian-inspired frozen entrées under the P.F. Chang's name. While the brand taps into

the eat-at-home trend, it is positioned as a restaurant-quality product. Because of that positioning, Bertolli has the

opportunity to play in a space where other frozen food brands don't, he said. Vaneri, who hails from Latin America and

has seen more severe economic times overseas, chatted with Brandweek about the recent P.F. Chang's and Bertolli deal,

and why quality-seeking consumers will still sit down to a dinner of Bertolli post-recession. Excerpts from that

conversation are below.

www.brandweek.com



USA: INTRODUCING PERKY JERKY...CAFFEINATED BEEF JERKY COMBINES PREMIUM

QUALITY MEAT SNACK WITH THE ENERGY BOOST The Performance Enhancing Meat Snack Company is proud to announce the immediate availability of Perky Jerky, an

invigorating caffeinated beef jerky combining premium strips of peppered beef with an energizing additive. Each

package of Perky Jerky contains roughly the same amount of caffeine found in two cans of a popular energy drink. Perky

Jerky is available on the web at www.perkyjerky.com and will soon be available in stores nationwide. Perky Jerky is the

first ever energy jerky to be approved by the United States Department of Agriculture and it is already developing a

grassroots, cult following amongst fans.

PR Newswire: August 24, 2009

USA: SUPERVALU EXPANDS FROZEN DESSERTS LINE Supervalu, one of the largest grocery chains in the U.S., has announced the launch of a new collection of frozen treats,

including four new tart frozen yogurts under its private label Stone Ridge Creamery brand and six new ice cream desserts

under its upscale private label brand, Culinary Circle. The new frozen treats are available nationwide at Supervalu's

family of stores, including Acme, Albertsons, bigg's, Cub Foods, Farm Fresh, Hornbacher's, Jewel-Osco, Shaw's/Star

Market, Shop 'n Save and Shoppers Food & Pharmacy. Supervalu notes is among the first U.S. retailers to launch a line

of fat-free tart frozen yogurts with live, active cultures. The four new Stone Ridge Creamery tart frozen yogurts join the

brand's lineup of 40 classic ice cream and sherbet flavors. Stone Ridge Creamery tart frozen yogurt is currently available

in a 32-oz. quart size in four flavors -- vanilla, peach, strawberry and pomegranate blueberry -- at a suggested retail price

of $2.99.

Ice Cream Reporter (tm): August 20, 2009

USA: TROPICAL FOODS INTRODUCES NEW SNACK MIXES Tropical Foods has introduced five new snacks mixes namely Go Bananas, Happy Heart, Heartland, Mango Tango and

Neapolitan. Go Bananas is a throw back to peanut butter and banana sandwiches mixing chocolate banana chips, banana

chips, peanut butter gems, honey roasted sesame sticks and peanuts together. Happy Heart reportedly packs an

antioxidant with cranberries, walnuts, almonds, pumpkin seeds, cashews and blueberries. Heartland is said to be a gluten-

free mix that contains yogurt walnuts, cranberries, blueberries, and almonds. Mango Tango combines dried mango,

cashews, coconut toffee peanuts, pumpkin seeds and chili-lime noodles. Neapolitan, which was inspired by ice cream of

the same name, mixes together strawberry yogurt raisins, chocolate brownie bits and yogurt pretzel balls. The Company

said that all five of the snack mixes are no or low sodium, 0g cholesterol and 0g trans Fat. All of mixes are sold in bulk

quantities of 25lb bulk and resealable acetates.

www.food-business-review.com

USA: J.M. SMUCKER LAYS THE COFFEE GROUNDS Packaged food firms have had a number of obstacles to overcome in the past year or so. Many are seeing consumers

embrace more affordable private-label brands after struggling with high commodity inflation last year. In contrast, J.M.

Smucker has been focused on integrating a giant acquisition that looks to be transforming it for the better.: 20 Tools For

Building Up Your Portfolio Quarterly Review Reported sales advanced 58% to $1.05 billion on the acquisition of

Folgers. Excluding the Folgers purchase, net sales fell 1% as volume growth of 2% was more than offset by price

decreases in the U.S. retail oils and bakery products segment, which posted a 2% decline in sales and accounted for 18%



of quarterly sales. "Higher promotional spending in certain categories" also reduced sales somewhat. The U.S. retail

consumer market, which consists of consumer brands such as Jif peanut butter, Smucker's jams and jellies and Hungry

Jack pancakes, posted strong 6% sales growth on a 7% improvement in volumes. This segment accounted for 28% of

sales. Folgers retail sales now account for the bulk of sales and accounted for 35% of the first-quarter top line . It is also

the most lucrative unit and posted a quarterly profit margin of 34.8%. Retail consumer was the second most profitable

and posted a 23% margin. Rival Sara Lee recently posted disappointing earnings on anemic top-line trends thanks to the

recession and firm-specific challenges. Kellogg and Unilever are also struggling to boost sales as consumers focus on

private-label and lower-priced food but remain focused on cost-cutting to grow profits. Smucker management is currently

projecting full-year sales of $4.5 billion and earnings between $3.65 and $3.80, which excludes 17 to 19 cents of one-

time merger charges. It expects $80 million in synergies related to the Folgers transaction.

Investopedia Advisor: August 21, 2009

USA: NATURAL EXPANSION; HEALTHY BITES Expansion seems to be the name of the game at Glastonbury, conn.-based bakery on main, producer of ultra-premium

organic and gluten-free granola products. A number of retailers, including Bashas', Sprouts and Martin's, are adding the

company's gluten-free granola snack bars and granola items. Available in 1.2-, 6- and 12-ounce sizes, the gluten-free bars

have a suggested retail price of $1.59 to $6.99.

Grocery Headquarters: August 1, 2009

USA: MONOGRAM FOOD SOLUTIONS TO ACQUIRE MEAT SNACK BUSINESS OF

AMERICAN FOODS GROUP Monogram Food Solutions, LLC, a provider of food products, has agreed to acquire the meat snack business of American

Foods Group, LLC, a meat processor and harvester of cattle. Both the companies are based in the US. The acquisition

includes the Martinsville production facility, and the rights to the Bull's, Hannah's, O'Brien's and Dakota brand names.

The acquisition would enhance Monogram Food Solution's production capacity and strengthen its position in offering

regional and nationally distributed meat products and brands that retailers and customers.

Financial Deals Tracke: August 17, 2009

USA: RAGU OLD WORLD STYLE PASTA SAUCES. SWEET TOMATO Ragu Old World Style Pasta Sauces. Sweet Tomato Basil, and Margherita. $2.34 per 26-ounce jar. Bonnie: Ragu

recently added Sweet Tomato Basil and Margherita varieties to its Ragu Old World Style sauce line. These contain no

artificial additives or preservatives. Both are decent choices nutritionally, with 60-70 calories, 1.5- 2 grams of total fat, 3

grams of fiber and an acceptable 410 milligrams of sodium per half-cup serving. Each serving also contains more than a

full cup of veggies and is a good source of vitamin A. The Traditional is sweeter; the Marinara has tomato chunks.

SmartFood Popcorn Clusters. Honey Multigrain, Chocolate Cookie Caramel Pecan, and Cranberry Almond. $3.49 per 5-

ounce box containing five individual-serving bags.

New Haven Register: August 26, 2009

USA: DAIRY CREST RELAUNCHES CLOVER SPREAD Dairy Crest has announced a £5 million investment for the relaunch of its leading dairy spread brand, Clover, including

new TV creative, through-the-line support and new packaging and logo. The relaunch sets a new tone for Clover with a



campaign that will challenge the category norms with a fresh and innovative approach to the market. Clover is

positioning itself in the middle of the Butters and Spreads category with a ‘half the saturated fat' message for health

conscious consumers and a taste message, blurring out the boundaries between taste and health.

www.Foodingredientsfirst.com

USA: LAND O'LAKES INTRODUCES AMERICAN DELI CHEESE PRODUCT MADE WITH 2%

MILK Land O'Lakes is the only service deli cheese manufacturer featuring an American cheese product made with 2% milk.

This latest offering is part of a company effort to introduce innovation and healthy living to the deli category.

www.Foodingredientsfirst.com

CANADA: ORGANIC MEADOW LAUNCHES PREMIUM ICE CREAM Organic Meadow announced the launch of their new line of premium ice cream as yet another celebratory element of the

co-operative's extensive 20th anniversary product development and distribution initiatives. The three new flavours are

Raspberry Chocolate Chunk, Coffee Crème and Praline Dream. Available in 473 ml heat-sealed, tamper-evident

containers, the new flavours complement the original line of Organic Meadow ice cream including Chocolate, Vanilla

Swirl, Vanilla, Carmel Swirl, Strawberry and Chocolate Swirl. Vanilla, Strawberry and Chocolate also are available in

946 ml containers. There’s more than just packaging that's new with respect to Organic Meadow ice cream. All the

flavours are even creamier than before as the "over-run" - that is, the amount of air in the product that results in its

density - has been reduced to among the best in the industry. This enhances taste, making Organic Meadow ice cream

even more delicious.

Canada NewsWire: August 4, 2009

2.2 LATIN AMERICA

ARGENTINA: PEPSICO SET TO EXPAND MAR DE PLATA PLANT Pepsico International s board has approved investment of $16USmil in Mar del Plata municipality General Pueyrredon,

Argentina, according to local-government sources. The municipality boasts a Parque Industrial, has available energy and

is close to raw-materials requirements. Pepsico currently possesses a plant at the Parque Industrial Manuel Savio, south-

west of Mar del Plata, where it makes its 3D variety and other potato crisps. The installations formerly belonging to

Pehuamar - will be expanded.

El Clarin: August 21, 2009

ARGENTINA: OLIVE OIL INDUSTRY BUILDING UP REGIONAL BRANDS The largest olive oil producing country in the continent, Argentina has seen exports dropping by 50% in the first half of

2009, according to the Federacion Olivicola Argentina (FOA). Large part of shipments is directed to Spain, where is

blended with local olive oils, bottled and exported at prices 40% higher, including to Latin America. Clearly, local olive

oil producers would like rather avoid all this trouble and launch their own brands in the neighbouring countries, adding

an extra margin of profits. Besides are requesting help from the government in imposing Argentinean brands in new

markets. Last February, they requested quitting the 5% retentions in exports for bottled and bulk olive oil, as did not



receive refunds of 5% and 2,5%, respectively. Olive oil activities is very important to some regions, for instance, in

Catamarca, it employs 5.000 people and 5.000 farmers, being one of three largest sources of employment. There is only

30 corporations producing olive oil, many of them do not export it bottled, among them figures Molinos, La Serenisima,

Unilever and Roemmers. Forecast of the sector is increasing planted area in 60.000 ha this year, and in 103.000 ha as of

2011. As of 2015, production will be around 45.000 tons per year.

El Cronista: August 24, 2009

BRAZIL: EUROPEANS KEEN ON CAIPIRINHA EFFECTS With temperatures reaching 35°C in Europe during the summer, the Swiss ice cream manufacturer Paolo Sottile, owner

Gelatomania, has came up with the idea to create an ice cream using the Brazilian drink caipirinha. According to him, so

far the costumers' reaction have been quite positive. Gelatomania produces 20 liters of ice cream with one and a half

bottle of cachaca, plus lemon and sugar. The caipirinha-made ice cream is not the first creation by Paolo, since there is

flavours as pina colada, Campari orange or pear grappa, even curry, guacamole, polenta and tapenade. Cachaca - distilled

sugarcane - exports are still very small, considering the status and image it has conquered overseas. The Brazilian

cachaca institute Ibrac, estimates the national installed capacity is of 1,2bil liters, being only 1% of that directed to the

external market. There are 180 corporations focused in exporting cachaca, which sells in 55 countries; Germany accounts

for 33% of shipments. In 2008, a total of 11,09mil liters have been shipped (up 20% from 2007), generating earnings of

$16US.4mil (up 18%). The national product has one big obstacle abroad, as the US that represents 11% of exports only

admits the arrival of the Brazilian cachaca under the condition of using the label of Brazilian Rum. National cachaca

producers claim the North American definition decharacterises the cachaca as a typical distilled product exclusive from

Brazil, preventing an aggressive marketing strategy to increase sales.

Valor Economico: August 24, 2009

PERU: KRAFT FOODS INVESTS IN PERU US Food giant Kraft Foods has announced it is investing more than PEN60mn in Peru to step up promotions, and expand

its production and storage facilities. The move comes shortly after soft drink and snack food giant PepsiCo announced

the acquisition of Peru-based snack producer Karinto and is an indication of the current attractiveness of the market,

which has been one of Latin America's most resilient performers during the economic downturn. A stimulus plan looks

like it has successfully managed to put a floor under economic growth this year and BMI is forecasting that Peru's

economy will post growth in the mid-single digits. This resilience means that Peru's food and drink sector is expected to

be among the best performers in Latin America this year, with per capita food consumption continuing upwards along its

recent growth trend. The Peruvian food and drink market is far from mature, with large parts of the sector still dominated

by traditional products, grown locally and minimally processed. This means that there continue to be a wealth of

opportunities for multinational firms such as Kraft and Pepsi. This is being supported by the growth in organised

retailing. Currently the Peruvian grocery retail market is one of the least developed in Latin America, but over the last 12

months there has been a spurt in activity. Latin American retail giant Cencosud has purchased Wong, the county's largest

retailer, while Chilean retailer Falabella and Peruvian retailer Supermercados Peruanos have both announced ambitious

expansion plans.

BMI Americas Food and Drink Insights: August 1, 2009



2.3 UK/EUROPE

UK: HEINZ REAL TASTE OF HOME: STEAK & GUINNESS CASSEROLE SOUP Heinz has partnered with Diageo to add a tasty new recipe to its popular Taste of Home soups range, introducing a

limited edition Steak & Guinness Casserole soup. The launch sees two iconic brands come together, epitomising Heinz

and Guinness' signature taste, quality and brand strength. Taste of Home Steak & Guinness Casserole will be available

for a limited time only until Spring next year and will be on shelf in Sainsbury's and Asda at an RRP of £1.69,

discussions with other retailers are underway. Heinz is also adding new varieties across its other core Heinz brands

including Big Soup, Farmers' Market and Weight Watchers from Heinz. Big Soup: Italian Meatball & Tomato, RRP

£1.19; and Mexican Chilli Beef & Bean RRP £1.19.Farmers' Market: Creamy Root Vegetable & Sweet Potato, RRP

£1.19; and Broccoli & Stilton RRP £1.19.Weight Watchers from Heinz: Tomato & Basil, RRP 0.69p. PLUS new

packaging design across the range to drive food cues and shelf standout.

Talking Retail: August 17, 2009

UK: MADRIGAL PARTICIPACIONES MAY ACQUIRE IBERSNACKS SNACKS According to zephyr, Madrigal Participaciones, S.A., a private equity firm, may acquire a stake in Ibersnacks Snacks Co

Maker SL, a snack food producer. Both Madrigal and Ibersnacks are based in Spain.

Financial Deals Tracker: August 3, 2009

UK: BISCUIT MAKER LOOKS FOR FUNDING TO SECURE FUTURE A loss-making Teesside biscuit manufacturer in Middlesbrough has secured £12m of orders but says it needs to find over

£500,000 to help secure its future. In April, serial entrepreneur Mobeen Mehdi bought The Baked Snacks Company

(BSC) from former owner Zetar, the AIM-listed confectionery firm for an initial £817,000 with an additional £2.2m to be

paid in instalments and £600,000 of this due to be paid in the coming months.

The Journal (Newcastle, UK): August 13, 2009

UK: UNILEVER COY OVER AMBIENT ICE CREAM PLANS Unilever has remained coy over plans to develop an ice cream that is sold at room temperature to be frozen at home. It is

understood the Ben & Jerry's ice cream maker is developing the "low-carbon" ice cream in a bid to help reduce

greenhouse gas emissions without the need to keep it frozen during transport and storage. While ambient ice cream is an

idea currently being considered by its R&D team, it has no current plans to bring any ambient ice cream products to the

market. Unilever has been busy expanding its ice cream business in recent weeks. Earlier this month, the company said it

would launch Ben & Jerry's in Australia. In Russia, Unilever will build several Inmarko ice cream production facilities

near St. Petersburg and in a number of regions in the west of Russia.

www.just-food.com

UK: MCVITIE’S MINI POUCHES MEAN BIG SALES IN SHARING Building on the success of its McVitie's Mini range, United Biscuits UK, a leading manufacturer of biscuits, snacks and

cakes, is introducing a new format to the range to drive sales for retailers. McVitie's Mini pouches will include three mini

versions of the nation's favourite biscuits to make the £12.6m range available to consumers in a new tear and share



format. The McVitie's Mini pouches are available at a £1.29 MRRP across McVitie's Mini Milk Chocolate Digestives,

McVitie's Mini Milk Chocolate HobNobs and McVitie's Mini Chocolate Chip Cookies variants. The 125g pack sizes are

ideal for consumers that want a convenient, pleasurable treat either on-the-go or in the home.


UK: WARBURTONS’ LIMITED EDITION WINTER FRUIT LOAF IS BACK Warburtons, the UK's number one branded baker, is once again re-introducing its limited edition Winter Fruit Loaf for

the festive season. Warburtons' 400g Winter Fruit Loaf has a RSP of £1.30. This limited edition is available from early

September until the end of December.


UK: PEPSICO TO LAUNCH PRODUCT HEALTH AUDIT Food and beverage giant PepsiCo is to publish a health audit of its product range in the UK. The audit, to be published in

October, is being launched as part of the company's bid to help tackle the issue of obesity in the country. The US-based

group declined to comment which of its products - which include Walkers crisps and Quaker cereals - will form part of

the audit but admitted that the initiative will be launched in the autumn. PepsiCo has for some time been anxious to

create a healthier image for and in 2006 reduced the saturated fat content of its Walkers crisps brand by 70% amid

mounting concerns over the health risks associated with snacks. The food giant also signed up to a UK government

scheme - Change4Life - in November last year, alongside the likes of Kellogg and retailers such as Tesco and Asda, to

push a number of healthy-eating initiatives. Earlier this month, PepsiCo also launched Paw Ridge, a hot breakfast cereal

aimed at children, in a bid to get them to eat more healthily. PepsiCo is also introducing a range of lunchbox snacks,

Planet Lunch, through UK retailer Sainsbury's. The range includes dips, a juice drink, "bread bites", "fruit and oat bites"

and a "squeezable" fruit pouch.

www.just-food.com

UK: FIRST HALF OF 2009: NESTLÉ DELIVERS 3.5% ORGANIC GROWTH COMBINED WITH

A 30 BPS EBIT MARGIN IMPROVEMENT All calculations based on non-rounded figures

• Nestlé Group: 3.5% organic growth, 0.5% real internal growth EBIT margin 14.1%, +30 bps both in reported and

constant currencies

• Food and Beverages: 3.4% organic growth, 0.1% real internal growth EBIT margin 12.4%, +10 bps reported, +20

bps in constant currencies

• Net profit: CHF 5.1 billion, 9.7% of sales

• Underlying earnings per share: CHF 1.46, +3.5% reported, +8.5% in constant currencies

• Operating cash flow: CHF 6.4 billion, up from CHF 3.5 billion in the first half of 2008

Hugin - English: August 12, 2009

EUROPE: UNILEVER BOOSTS ICE CREAM CAPACITY The Anglo-Dutch consumer goods company Unilever is to boost its ice cream production capacity in Central and Eastern

Europe. The company is planning to invest USD 140mn (EUR 98.58mn) in setting up a new production site in Russia.

The new unit, which will have some 1,000 staff, will have a capacity to produce 120mn litres of ice cream. Unilever's



new plant is expected to start operating in 2014. The company may also boost the production capacity of its Hungarian

unit in Veszprem and its Polish site in Gdansk. Currently, the Veszprem unit has a capacity to produce 50mn litres of ice

cream. Unilever acquired the Napoca ice cream brand in Romania in 2009. The company is planning to launch its Algida

brand including Carte d'Or and Magnum ice creams in the local market.

Portfolio: August 14, 2009

BELARUS: 3,300 TONS OF ICE-CREAM SOLD IN MINSK IN H1 2009 Sales of ice-cream decreased 3%, to 3,300 tons in Minsk through January-June 2009, against the same period in 2008.

About 60% of sales fell at goods manufactured by Minsk ice-cream plant #2. Totally up to 100 names of products are

available in retail outlets in the city. Over 1,000 commercial institutions sell ice-cream. The main reason of the reduction

of sales in H1 2009 was weather conditions: cold May and rainy June. Experts suppose that on the average 7,000 tons of

ice-cream per year were sold during several last years. Consumption of goods fell to three-four kilograms per capita from

five kilograms in 1998-1999. Output amounts to about 11,000 tons of products per year. The main market players are

Minsk ice-cream plant #2, Grodno-based Molochny Mir, Morozprodukt, Santa-Impeks, and Babushkina Krynka.

DairyNews: August 3, 2009

BELARUS: BRESTKHLEBPRODUKT TO INVEST BYR 2.4BN IN PRODUCTIVE FACILITIES Brestkhlebprodukt will increase investments in productive facilities twice, to BYR 2.40bn (EUR 592,562.64 USD

847,008.98) in 2009 against 2008. The company keeps modernizing its flour milling facility. Brestkhlebprodukt has also

begun building a millet producing facility which is to be put into operation in 2010. In the first half of 2009, the company

turned out 20,200 tons of flour (+2.8% against the same period of 2008), 726 tons of groats (+8.2%) and 163 tons of

instant cereals under the trademark Pribuzhskaya niva. Output stood at BYR 17.2bn in value (+1%). Brestkhlebprodukt

exported products for USD 115,000 in the first half of 2009 (-54.4% against the same period of 2008).

Embassybel.ru/news: August 17, 2009

CZECH: CZECH CHEESE PASSION Unilever CR (Czech Republic), food and drugstore company, profits from popularity of the cheese ice-cream Misa in the

Czech Republic which is already sold in the Czech Republic for almost 50 years. Market share of this ice-cream reaches

about 8% of the total ice-cream sale in the Czech Republic. Misa is also sold in Slovakia besides the Czech Republic. It

is not popular in other countries. Unilever CR produces the ice-cream Misa in the company Tipafrost (Trebic, Czech

Republic). Unilever CR bought the brand Misa and other portfolio of the brand Nanuk from the food company Alima

(Czech Republic) in 2006.

Access Czech Republic Business Bulletin: August 24, 2009

FINLAND: SALES OF OAT MEAL HAVE INCREASED CLEARLY IN 2009 According to Finnish food industry company Raisio, sales of oat meal have increased clearly in Finland in the last six

months. Sales have continued to increase slowly for the past five years, but now there has been a clear leap forward.

Sales of individually packed portions of instant oat meal have remained unchanged, however. According to Raisio, the

increase in sales is most likely due to the recession as more and more people have started to eat oat meal.

Satakunnan Kansa: August 11, 2009



FINLAND: HELSINKI MILLS LAUNCHES ORGANIC INSTANT OATMEAL Finnish Helsinki Mills (Helsingin Mylly) is introducing new organic one-portion bags of instant oatmeal under its

Myllärin brand in the market in Finland. The flavours are Organic Lingonberry and Organic Sea-Buckthorn. The oatmeal

comes in a box of six portions.

Kehittyvä Kauppa: August 28, 2009

LATVIA: COMPANY PURE FOOD TO PRODUCE BRANDED SWEETS Soon the Latvian fruit and vegetable processing company Pure Food specialising in production of jam, intends to start

manufacturing branded sweets. The company has already purchased new equipment. The payback period is estimated at

five-seven years. Recently Pure Food has also started producing juice and nectars in Tetra Pak packaging. According to

representatives of the enterprise, output of new goods is to allow Pure Food to raise its turnover. The company's turnover

is to reach LVL 12mn (EUR 17.07mn USD 24.38mn) in 2009, against LVL 10.5mn in 2008. At present, the company

produces about 300 kinds of goods. Jam is a traditional product that sales amount to 750-800 tons per month accounting

for 50-60% of the Latvian jam market.

DELFI: August 14, 2009

NORWAY: HIGHER TURNOVER FOR TINE IN H1 Norwegian dairy company Tine raised its half-year operating profit by NOK 149mn (EUR 17.40mn USD 24.80mn) to

NOK 412mn. It also recorded a 4.8% increase in the turnover which is mostly connected to higher target prices and the

takeover of Ilchester Cheese Company. The company still reports of tougher competition on the dairy market from old

and new players. Milk and juice based drinks, semi-soft white cheese, yoghurt, cream and sour cream had a positive

impact on the sales while the Norvegia cheese, brown whey cheese and Sunniva Original juice lost market shares.

Nationen: August 21, 2009

POLAND: SNACK SALES GROW DESPITE DECREASING BEER SALES Although beer sales have been decreasing, sales of snacks, which are often affected by beer sales, have been growing in

Poland. According to Nielsen, they reached PLN 1.89bn (EUR 460.85mn USD 663.49mn) between June 2008 and May

2009, which represented an increase of some 15%, year on year. In the whole year of 2009, Polish snack producers are

expecting to see an annual sales rise of 11-19%, while the beer sector is predicted to record a 3.4% sales drop. At present,

an annual snack consumption per capita stands at two kilogrammes in Poland, which is much less than in Western

European countries. This is why many Polish snack producers, for example Aromat Snack and Dijo, are planning

expansion of their production facilities, expecting that the market will continue to grow.

Gazeta Prawna: August 5, 2009

POLAND: NESTLE RECORDS 18% REVENUE INCREASE IN H1 Nestle Polska, the Polish branch of the Swiss concern Nestle, has revealed that its revenues amounted to over PLN

1.20bn (EUR 289.69mn USD 411.43mn) during the first half of 2009, which represents a rise of 18% when compared to

the corresponding time of 2008. The improvement has been achieved thanks to the acquisition of the baby food producer,

Alima Gerber, and thanks to a double-digit sales increases recorded by the Winiary brand. Among others, the portfolio of

Nestle Polska includes confectionery products, coffee, sauces and spices.

Rzeczpospolita: August 13, 2009



POLAND: AGROS NOWA TO DEVELOP READY-MADE MEAL AND PRESERVE OFFER Robert Niewiadomski, the president of Agros Nova, said that his aim is to develop the Lowicz brand so that in future, the

company generates a major part of its revenues from ready made meals and fruit preserves not from juice and juice

drinks as it is now. Niewiadomski plans to achieve his target in 2011 but does not reveal details regarding his plans. In

2008, Agros Nova had revenues of almost PLN 900mn (EUR 215.55mn USD 303.55mn).


ROMANIA: KRAFT FOODS ENTERS THE ICE CREAM MARKET VIA DARKO Kraft Foods, the largest player on the Romanian chocolate market, has entered the domestic ice cream market via Darko,

the company that holds the license to produce and distribute the Milka ice cream brand in Romania and Bulgaria. Darko

is the second largest ice cream company in Bulgaria and it is controlled by the investment funds Romanian-American

Enterprise Fund (RAEF) and the Bulgarian-American Investment Fund. The Romanian ice cream market is estimated at

EUR 120mn (USD 168.99mn) - EUR 140mn.

Ziarul Financiar: August 18, 2009

SLOVAKIA: ICE CREAM SALES NOT AFFECTED BY CRISIS Producers of ice cream in Slovakia consider the current summer season as average. Many of them were trying to attract

customers with original flavours such as sunflower, multivitamin, apple pie or Paris pear. J-A-CH, an ice cream

producer, added that the company has introduced a garlic ice cream, however, according to its experience many

customers always return to their favourite flavours after trying the new ones. Unilever, which sells the Algida brand ice

cream products, has recorded rising ice cream sales in Slovakia each year, but said that some customers prefer buying

cheaper products due to the crises. Another ice cream producer, Adria Gold, reported a drop in sale of ice cream by

between 10% and 15%. The company exports most of its products. Between 45% and 50% is exported to the Czech

Republic, 33% is sold in Slovakia and the rest in Hungary. According to survey "Consumer Tracking" from June 2009,

around 45% households in Slovakia bought take-away ice-cream products during 12 months and one such household

consumed five litres of ice cream on average per year.

HNonline: August 26, 2009

SWEDEN: ORGANIC FOOD PRODUCER EXPECTS SALE RISE Swedish organic food producer Renée Voltaire is set to rise sales by SEK 9mn (EUR 885,084 USD 1.26mn) to SEK

25mn in 2009.The range includes some 100 products which are sold in 350 Swedish supermarkets and turnover has risen

by 50% annually since the start 2005.

Dagens Industri: August 10, 2009

SWEDEN: SKÅNE-MÖLLAN'S OPERATING PROFITS UP H1 Swedish flour mill Skåne-möllan reported a SEK 86.10mn (EUR 8.40mn USD 11.83mn) turnover for the first half of

2009. This is a SEK 2mn decrease on the corresponding period in 2008. Sales rose in terms of volume, but dropped in

terms of value. Operating profit rose by SEK 2.40mn to SEK 14.40mn.

Fri Köpenskap: August 18, 2009



RUSSIA: VOLOGODSKAYA YAGODA BEGINS NEW INVESTMENT PROJECT The company Vologodskaya Yagoda (Vologda Berry) intends to carry out an investment project envisaging growing of

cranberries, red bilberries, blackberries, and wild strawberries in the Ust-Kubena district in the Vologda region (North-

West). The first harvest is planned to be gathered in three years. The company specialises in production of frozen berries,

mushrooms, concentrated berry juice and purée.

FruitNews.ru: August 17, 2009

RUSSIA: EX OWNERS OF BALTIMOR TO SET UP HOLDING SOLNECHNAYA KULTURA The former owners of the holding Baltimor, intend to set up a new manufacturing holding Solnechnaya Kultura which

will comprise the canned vegetable, tomato paste, and juice producing plants Baltimor-Krasnodar and Baltimor-Amur.

These plants were not included into the deal with the corporation Unilever. The holding will also comprise the pig

breeding complex Delimit (Krasnodar region) and the flower complex Novaya Gollandiya (Leningrad region). The new

establishment will manufacture products under the trademarks Krasnodarye, 8 Ovoschey, Makosh, and Baltimor. At the

same time, the entrepreneurs signed an agreement with Unilever which prohibits them from producing ketchup and

sauces. Aleksey Antipov obtained 70% in the new holding, Milada Gudkova and Marek Getka Ireneusz 15% each.

Kommersant: August 6, 2009

RUSSIA: BUTTER AND CHEESE BASE CHUVASHSKAYA INTRODUCES NEW ICE-CREAM

BRIZ The butter and cheese base Chuvashskaya has introduced new ice-cream in sugar cornet Briz (Breeze). Ice-cream with

reduced fat has lighter taste than usual products. Launch of the novelty will be supported with an ad campaign in retail

outlets under the slogan 'Taste coolness'. Chuvashskaya's assortment includes about 90 kinds of ice-cream.

PressRelease.ru: August 4, 2009

RUSSIA: ORKLA MAY STRENGTHEN ITS POSITIONS IN PETERSBURG WAFFLE MARKET Experts suppose that an agreement signed between the company Pekar and Krupskaya Confectionery Factory will allow

the factory's owner, the Norwegian holding Orkla, to strengthen its positions in waffle and waffle cake market in St.

Petersburg. Pekar controls over 50% of the market which is estimated at 25,000 tons and USD 12mn (EUR 8.34mn) per

year. The factory is said to have acquired Pekar's major brands accounting for 70-80% of output, including Mishutka,

Baltiysky and Shokoladny Prints.

Delovoi Peterburg: August 5, 2009

RUSSIA: 'ZHITNITSA' FLOUR ENHANCES TASTE OF NATURAL ADDITIVES IN BAKERY In the past few years, confectionery producers and bakers have seen a number of changes in the eating habits of a

Russian customer. Today, preferences are shifting towards either ready confectionery and baked goods with various

additives: nuts and sunflower seeds, raisins and candied fruit, spices and herbs, or semi-finished products of such kind.

Considering the market trends, Russian grain processor PAVA has researched behaviour of the new wheat flour grade

'Zhitnitsa' in these goods. It appeared to strongly enhance the activity of natural additives and flavouring agents, even if

used in a flour mix.

Economic News: August 31, 2009



RUSSIA: FACILITY ILLEGALLY PRODUCING TEA UNDER TRADEMARK LIPTON

LIQUIDATED The Directorate for Combating Economic Crimes of the Ministry of the Interior of Russia together with the security

service of Unilever Rus have revealed and liquidated a facility illegally producing bagged tea under the trademark Lipton

in the Vidnoe district of the Moscow region. Turnover of the shop amounted to RUB 1mn (EUR 22,270, USD 31,818)

per month. According to the head of the group for security and intellectual property protection of Unilever at present,

forged goods using Unilever's brands do not exceed 1.2% of products in Russia.

Yarmarka: August 25, 2009

UKRAINE: OUTPUT OF CHOCOLATE AND COOKIES DECREASES According to the State Statistics Committee (Goskomstat), output of confectionery products from sugar, including white

chocolate without cacao, increased by 3.4%, to 152,000 tons in the January to July period of 2009 against the same

period of 2008. Output of chocolate and other prepared food products with cacao fell by 14.2%, to 158,000 tons. Output

of sweet cookies and waffles amounted to 182,000 tons over the first seven months of 2009.Output of bread and bakery

products fell by 8.6%, to 1.012mn tons.

BIZ.liga.net: August 25, 2009

2.4 ASIA PACIFIC

AUSTRALIA: NESTLÉ GETS ICE CREAM GO-AHEAD The Australia Competition and Consumer Commission (ACCC) has approved Swiss food giant Nestlé's acquisition of

some of Fonterra's ice cream assets as the New Zealand firm tries to restructure. Despite Australia boasting a

consolidated ice cream industry, the ACCC has determined that the deal will have minimal impact on overall market

share in the country. Nestle, which already holds national distribution rights to the Peters ice cream brand, will now

acquire the Western Australia rights to the product. It will also secure the national rights to Fonterra's Connoisseur brand.

Fonterra will dispose of the remainder of its ice cream business - national rights to distribute the Cadbury brand - to Bulla

Dairy Foods, a divestment that the ACCC will rule on in late July. With a warm climate and relatively high disposable

incomes, Australia has a vast and established ice cream industry worth an estimated AUD2bn ($1US.6bn). Mature,

consolidated and likely the victim of reduced discretionary spending during the current economic downturn, the industry

does, however, continue to provide growth opportunities. Premiumisation, via the upgrading of ingredients and

packaging innovations etc. continues to represent a path to modest growth. For Fonterra, however, consolidation is the

key as it attempts to restructure its business to deal with the harsh impact of plummeting dairy prices. Having ridden the

wave of growth in 2008, Fonterra's profits have struggled as milk prices have bottomed amid strong supply and waning

demand. To address this new, albeit likely temporary challenge Fonterra is taking steps to streamline and improve its

focus and efficiency. In Australia, this strategy will see Fonterra focus on its dairy dessert, cheese, spreads and yoghurts

businesses. The firm will hope that its superior ability to add value in these subsectors will allow for higher profit

margins and improved Australian earnings.

BMI Asia Pacific Food and Drinks Insights: August 1, 2009



AUSTRALIA: BEN & JERRY'S TO SCOOP CHUNK OF MARKET Ethical ice-cream company Ben & Jerry's will be launched in Australia next month, more than 30 years after two hippies

opened a first store in Vermont, US. The brand, which has a worldwide following due to references in popular films and

TV shows, is known for its quirky approach to flavours such as Cherry Garcia and Chunky Monkey. The move into

Australia marks the continuation of a global expansion that has accelerated under the guidance of global packaged goods

company Unilever, which took control of the company in 2000. Ben & Jerry's will open its first store in Sydney in

September, with plans to take the brand national over the next few years. Ben & Jerry's brand manager for Australia,

sources said the plan was to open ``scoop stores'' first, followed by distribution of packaged ice-cream to stores in NSW

and Victoria. The high street store openings will be followed by cinema outlets in October. Packaged Ben and Jerry's ice-

cream products will initially appear in 200 selected delicatessens in Sydney and Melbourne.

The Australian: August 3, 2009

NEW ZEALAND: SELLING ICE CREAM TO THE RUSSIANS New Zealand Natural Ice Cream has launched its first outlet on the Island of Sakhalin (population 546,695) on the east

coast of Russia - the 21st country to be granted a license. New Zealand Natural now has more than 600 branded outlets

globally. From Sakhalin, the new license holder plans to open more branded outlets on the East Coast of Russia, and then

expand to the densely populated West Coast, to open outlets in St Petersburg and Moscow. Master license holders also

have agreements to sell through retail outlets and foodservice.

NZ Business: August 2009

CHINA: GOLDEN DRAGON HOLDINGS ENTERS INTO DISTRIBUTION AGREEMENT WITH

VOSGES Golden Dragon Holdings, an importer, exporter and distributor of staple, organic, and specialty foods and beverages, has

entered into a distribution agreement with Vosges, which manufactures chocolate and confectionery products. Under this

agreement Golden Dragon Holdings will exclusively place Vosges products in selective five-star hotels in China.


CHINA: CHINA MARINE FOOD GROUP LTD. DEVELOPS FOUR NEW PRODUCTS FOR

CONSUMER TASTES IN SICHUAN AREA China Marine Food Group Ltd., a processor of seafood-based snack foods and fresh and frozen marine catch, announced

the development of four new seafood-based snack foods designed to enter two major cities in the Sichuan area, Chengdu

and Chongqing. In March of 2009, China Marine attended the Chengdu Food Fair to showcase the Company's product

line of seafood-based snack foods, research consumer demand to develop products, and evaluate potential distributor

partners in an area where China Marine currently does not maintain a customer base. As a result of their market study

and consumer taste-testing, China Marine has developed four new products packaged under the Company's Mingxiang®

brand name. These include: spicy sliced octopus, spicy squid head, spicy baby squid and spicy sliced squid. Each product

uses local spices and peppers consistent to the flavor profiles of foods and consumer preferences in the Sichuan area. The

four new snack foods were sent to a select group of potential distributors for continued evaluation and feedback prior to

their planned launch throughout China Marine's entire distribution network. The foods are packaged in a 100 gram multi-

serving packages for retail in supermarkets as well as single-serve packets increasingly popular at convenience store



locations. While testing is ongoing, the Company is pleased to report initial positive feedback from prospective

distributors, dealers and retail end-points for the new snack foods.

China Business Newsweekly: August 11, 2009

CHINA: HAAGEN-DAZS CHINA TURNOVER GROW 40% ANNUALLY General Mills, which is under the ice cream brand Haagen-Dazs, announced that Haagen-Dazs' turnover in China was

growing at a rate of 40% each year, and the local business model of marketing through specialty stores would be

continued. By now, General Mills has built up over 110 ice cream exclusive stores in some major Chinese cities such as

Beijing and Shanghai, with 1,000 sales outlets around the country. Also announced was that General Mills had made a

donation to the Moon Fund, which was the first investment received by the fund. General Mills is a Fortune 500

corporation, mainly concerned with food products, which is headquartered in Golden Valley, Minnesota, a suburb of

Minneapolis. The company markets over 100 brands, such as Betty Crocker, Yoplait, Colombo, Totinos, Jeno's,

Pillsbury, Green Giant, Old El Paso, Cheerios, Lucky Charms and Wanchai Ferry, with yearly sales of USD 15.9 billion.

SinoCast: August 24, 2009

CHINA: SALES UP BUT PROFITS DOWN AT WANT WANT; FINANCIAL REPORT Chinese food and beverage group Want Want China Holdings has posted a 6% fall in half-year profits as the company

lapped a first half of 2008 boosted by one-off gains. The company, which makes snacks, rice crackers, yoghurt drinks

and beverages, said the drop in earnings came despite rising sales. Want Want booked a 6.4% fall in profits attributable

to the company's equity holders to $120US.8m for the six months to June. Operatingprofit slid 8% to $137.8m.Revenues,

however, rose 12.5% to $798.1m, boosted by higher selling prices for rice crackers and dairy products.

www.just-food.com

INDIA: IN A TRICE Ching’s Secret has launched new instant noodles. They are available in three Chinese flavours – Schezwan, Manchurian

and Hot Garlic. A single pack of 75 gm costs Rs15. The family pack of 300 gm costs Rs59.

Business Line: August 27, 2009

INDIA: JAPANESE FOOD GIANT AJINOMOTO EYES MERGERS AND ACQUISITION IN INDIA Food major Ajinomoto of Japan is looking at potential mergers and acquisitions (M&A) in India to enhance its

operations. Ajinomoto is a manufacturer of cooking oils, foods, pharmaceuticals and food seasonings. The Company has

already set up proprietary marketing infrastructure in India for possible M&As.

Business Standard: August 15, 2009

INDIA: EASTERN'S NEW READY-TO-COOK PRODUCTS Eastern has forayed into the ready-to-cook segment with launch of 12 products. The Company has set up a Rs30-crore

plant at Bommasandra in Bangalore. The Company plans to make Bangalore the manufacturing hub for its ready-to-cook

business.




INDIA: SNACK TIME Surya Food and Agro has launched the premium Italiano range of cookies. This range is available in four varieties –

Butter, Chocolate, Coconut and Ajwain. There will be two types of packs to begin with, both weighing 140 gm, priced at

Rs50 and Rs25.


JAPAN: PEPSI IN CALBEE SNACK FOOD JOINT VENTURE Frito-Lay Japan, the Japanese snack food subsidiary of US soft drinks behemoth PepsiCo, is to enter into a joint venture

with domestic rival Calbee Foods. Subject to regulatory approval, Pepsi will transfer its Frito-Lay business and an

unspecified cash sum to Calbee, the latter issuing Pepsi with new stock equivalent to 20% of the merged enterprise. The

deal is in line with Pepsi's overarching strategy of diversifying away from the mature US market and securing a more

balanced global presence. Despite pursuing aggressive international expansion in recent years, Pepsi still relies on the US

for around 50% of its revenues. Fierce rival The Coca-Cola Company (TCCC), on the other hand, generates only an

estimated 30% of its turnover domestically, leaving Pepsi more exposed than its competitor to US sales sluggishness.

Pepsi has sought to address this, matching TCCC pound-for-pound in terms of emerging market expansion. With talk of

international growth inevitably coming back to emerging markets, Japan is not the most obvious choice for Pepsi. An

ageing population and stagnant wage growth have meant a fairly flat outlook for the country's food and beverage sectors,

and to 2013 BMI expects total food consumption in local currency terms to decline by 16%. However, an absence of

growth does not necessarily mean an absence of opportunities, particularly in a market as high-spending and open to

innovation as Japan. In partnering Calbee, Pepsi will become a local snack food market leader (combined revenues

estimated at $1US.4bn), with a larger manufacturing footprint, improved negotiating clout for raw material procurement

and greatly improved research and development capabilities. While domestic economic weakness will affect snack food

sales in the near-term, particularly sales of innovative, more expensive items, Pepsi can expect its new alliance to make a

positive contribution to international growth in the medium term.


JAPAN: DEVIL KINGS IN SNACK FOOD FORM Featuring characters of Sengoku Basara Battle Heroes, the crispy chips come in four flavors: Mustard miso, crab,

seaweed and cow tongue. They're priced at ¥315 ($3US.30) for a bag and available from this month across Japan.

Kotaku: August 27, 2009

JAPAN: AJINOMOTO STEPS UP GLOBAL PUSH Japan's leading seasoning maker will try to match the food industry's accelerating globalization push by kicking its own

overseas expansion drive up a gear. Ajinomoto Co. will do so by adopting a more agile marketing approach and a goal of

300 billion yen ($3.15 billion) in annual overseas sales by around fiscal 2015, roughly double what it posted in fiscal

2008. Those tactics include, as a first step, promoting its flagship Ajinomoto brand to establish its corporate image. As it

does this, its monosodium glutamate (MSG) seasonings can be counted on to quickly gain a top share of the local market.

Ajinomoto then delivers value-added products that enhance the flavor of soups and fried foods, tailoring them to suit

local tastes. The traditional approach emphasizes steady, patient efforts to spread a range of Ajinomoto products into

local markets. But in this age of hyperglobalization, these tactics are losing their effectiveness, since it takes a long time



to penetrate each market. And that leaves Ajinomoto at risk of being outpaced by Swiss food conglomerate Nestle SA

and Anglo-Dutch consumer goods group Unilever.

The Nikkei Weekly (Japan): August 3, 2009

MALAYSIA: NEW BREWS TO PERK UP MARKET SHARE Coffee and convenience food maker Super Coffeemix Marketing Sdn Bhd is going all out this year to garner a bigger

slice of the market share in Malaysia by launching up to three new products into the market by year-end. Super

Coffeemix Marketing is a wholly-owned subsidiary of Singapore-based Super Coffeemix Manufacturing Ltd which is

also listed on the Singapore Stock Exchange and is one of Asia's top 10 coffeemakers. Super Coffeemix director Steven

K.H. Lim said the company launched several new products into the Malaysian market every year as part of its strategy to

increase its current market share of 14 per cent as well as bolster its "Super" brand name. The world's largest coffee

maker is Nescafe, which is grouped under Swiss food giant Nestle. Nescafe has a 30 per cent market share in Malaysia.

Super Coffeemix owns and operates a total of 13 factories, of which three are in Singapore, Malaysia (5), China (3) and

one each in Thailand and Myanmar. Its 10.1ha factory in Masai is its largest in Malaysia with an annual output of 8,000

tonnes of coffee products a year or equivalent to 4 billion cups of coffee a year. Apart from coffee products which

accounts for 67 per cent of its 300 over products, Super Coffeemix also makes other food products and beverages such as

canned drinks, cup noodles, ready-to-drink cereals, potato chips, liquid concentrates, vinegar and others all under the

multi award-winning brand name "Super".

Business Times (Malaysia): August 10, 2009

SINGAPORE: THE SINGAPOREAN SAVORY SNACKS MARKET GENERATED TOTAL

REVENUES OF $115.9 MILLION IN 2008 The Singapore's agricultural products market generated total revenues of $2.5 billion in 2007, representing a compound

annual growth rate (CAGR) of 5.2% for the period spanning 2003-2007.The Singaporean confectionery market generated

total revenues of $128 million in 2007, representing a compound annual growth rate (CAGR) of 3.3% for the period

spanning 2003-2007.The Singaporean dairy market generated total revenues of $276.5 million in 2008, representing a

compound annual growth rate (CAGR) of 5.1% for the period spanning 2004-2008.The Singaporean packaged foods and

meats market generated total revenues of $3.1 billion in 2007, representing a compound annual growth rate (CAGR) of

4.6% for the period spanning 2003-2007.The Singaporean savory snacks market generated total revenues of $115.9

million in 2008, representing a compound annual growth rate (CAGR) of 6.4% for the period spanning 2004-2008.

Agriculture Business Week: August 20, 2009

VIETNAM: FOREIGN INVESTMENT KINH DO EXPANDS BAKERY FRANCHISE IN VIETNAM Kinh Do Saigon Bakery Corp., a subsidiary of confectionery maker Kinh Do Corp., opened its seventh franchised shop in

Vietnam at 573 Nguyen Thi Thap Street in Tan Phong Ward in HCM City's District 7.Nguyen Duy Dang, franchise and

marketing manager of Kinh Do Saigon Bakery Corp., said that any franchised bakery would have to observe Kinh Do's

standards on colors, decorations, product display, production norms and service styles. Kinh Do Bakery shops sell fresh

cakes, sandwiches, yogurt and drinks such as bubble tea, sponge-cake milk and soda. Kinh Do Bakery was launched in

1998 and since then the company has opened 21 bakeries in HCM City and Dong Nai.

Vietnam News Briefs: August 19, 2009




NIGERIA: NESTLÉ BRACING FOR STRONG Q3 Nestlé Nigeria has announced that it expects to report net income of NGN2.22bn ($14US.9mn) in Q309. Although this

would represent a 59.6% decline on a year-on-year basis, it would still be a notable showing under the duress of the

current climate. BMI highlights that its forecast net income would be a 26.9% increase on the Q1 posting (the company

has yet to report its Q2 results). Through to 2013, BMI's forecast that per capita food consumption will increase by 7% to

reach NGN33,341 ($223US) is fairly undynamic and evidence that the majority of the population remains highly price-

sensitive despite the country's status as a major crude oil exporter. Nevertheless, Nigeria still rates among the most

intriguing emerging markets for multinational food companies seeking long-term volume returns (its population currently

stands at 160mn).Following on from the sound results and near-term outlooks put forward by Unilever Nigeria and the

domestic savoury food company UAC Foods , two of Nigeria's most prominent food and drink firms, Nestlé appears well

placed to emerge through 2009 relatively unscathed. Although a worrying proportion of Nigerians continues to live in

poverty, our forecast that GDP per capita will increase by 170% and reach over $3US,000 by 2018 should gradually

increase the size of the middle class. With our outlook in mind, BMI believes that a number of Nestlé's power brands are

particularly well placed to benefit. Currently, brands like Nescafé coffee remain beyond the means of most consumers.

As incomes rise, we expect demand for branded products to increase considerably. Earlier in 2009, BMI reported that

Nestlé was preparing to invest in a modern manufacturing facility in the Ogun State. In addition to bolstering capacity to

cope with expected increases in domestic volumes over the long term, BMI believes that it could also use its Nigerian

manufacturing hub to grow export volumes across a number of emerging West African markets.

BMI Middle East and Africa Food and Drinks Insights: August 1, 2009

UGANDA: DAIRIBORD COLLAPSES Dairibord Holdings Limited (DHL) -- Zimbabwe's diversified food and beverages company, which owns two regional

subsidiaries -- has shut down its milk processing factory in Uganda and put up its equipment for sale, The Financial

Gazette can reveal. The east African country's newspapers last week carried a series of advertisements by Dairibord

Uganda (Private) Limited, a $6US million investment that never tasted profitability since its establishment in 2006,

disposing of the equipment. The company, which was a wholly-owned subsidiary of DHL, supplied dairy products to

Burundi, the Democratic Republic of Congo, Kenya, Rwanda and Sudan.

Africa News: August 21, 2009

ZIMBABWE: CAIRNS COMING BACK After a debilitating economic collapse that forced leading Zimbabwe-based food manufacturer Cairns Holdings to reduce

its capacity usage to below 10% in 2008, things are finally looking a little brighter. The introduction of dollarisation in

January 2009 has brought in desperately needed foreign currency and provided a degree of respite to the country's

consumers. Since then, an increase in sales volumes has allowed Cairns to increase its capacity utilisation to around 30%.

Having contracted for a mindboggling 10 successive years between 1999 and 2008, BMI has forecast Zimbabwe's GDP

growth to average a steady 5.6% between 2009 and 2018, which should provide some respite to consumers and Cairns

alike after the dire lost decade. BMI highlights that Cairns boasts a stellar manufacturing presence across a wide number

of segments including snacks, groceries and beverages. The company's plight over the fast few years reflects the

tremendous difficulties fast moving consumer goods companies operating in Zimbabwe have had to endure. Prior to the



economic collapse, Zimbabwe was among Sub-Saharan Africa's best and most diversified economies. Companies like

Cairns invested in modern manufacturing processes that were more akin to firms operating in South Africa than most

low-income regional states and as a result, were left stranded as their promising businesses were simply incompatible

with the country's economy. Notwithstanding the regional market potential of its product range, BMI expect the company

to be preoccupied with its domestic market for the foreseeable future, with the contribution of exports to revenues to

remain flat at around 12%.


MIDDLE EAST: CONSUMERS IN THE UAE AND QATAR WILL FIND THE ITALIAN

"AUTENTICA TRATTORIA" POTATO CHIPS AND BRUSCHETTI 'SIMPLY IRRESISTIBLE’ Federal Foods announces partnership with San Carlos to bring the premium brand Autentica Trattorio in the region

Federal Foods - a leading food products marketing and distribution company in the GCC has recently signed an exclusive

distribution agreement with San Carlo, the Italian owner of the premium brand of potato chips and toasted bread

"Autentica Trattoria". With the rapidly increasing demand for crispier, tastier, healthier potato chips and toasted bread,

consumers across UAE , Qatar and Oman can now crunch into a new snack option "Autentica Trattoria" and will find it

'simply irresistible'. "Authentic Trattoria" Potato Chips currently come in 150g pack size and 5 zesty flavors including

Olive Oil, Sage & Rosemary, Garlic & Red Pepper, Tomato & Basil, and Oregano, while "Autentica Trattoria" -

Bruschetti come in two sizes (50g & 150g) with 3 flavors Black Olives, Tomato & Basil, Red Pepper & Oregano. As

"Autentica Trattoria" continues to expand its presence worldwide, one of our key long-term global strategies is to

establish the right partnerships. The combination of Federal Foods' expertise in the retail marketing, coupled with its

strong distribution capabilities, will enable Autentica Trattoria Potato Chips & Bruschetti to expand faster in the Middle

East.

www.Albawaba.com

MIDDLE EAST: KRAFT BAHRAIN CUTS WATER WASTAGE Kraft Foods has said its cheese and beverage plant in Bahrain has managed to reduce water usage by 33% by overhauling

the cleaning process. As part of its overall sustainability goals, the snack giant has managed to save three billion gallons

of water by adopting new manufacturing and cleaning methods throughout its global plants network.Ltd.

TendersInfo: August 12, 2009

MIDDLE EAST: OATMEAL WITH PIG GELATINE PULLED IN QATAR Qatar's food monitoring body of the Ministry of Municipality and Urban Planning has stopped shops from selling two

brands of oatmeal after they were found to contain gelatine from pigs, the Peninsula has reported. The oatmeal products

were produced by Lucky Charm and General Mills. Pig content is forbidden in Qatar.

Middle East Retail News Wire: August 25, 2009

MIDDLE EAST: KRAFT FOODS REPORTS OPERATING INCOME INCREASE OF 7.6% FROM

THE PREVIOUS YEAR Kraft Foods Inc. reported last week strong second quarter 2009 results fueled by solid performance across all

geographies. Organic net revenue growth reflected the impact of cost-driven pricing actions taken in 2008, positive

volume/mix and the benefits of incremental investments in brand building. Income growth and margin expansion were



driven by lower costs due to the completion of the 2004-2008 Restructuring Program, improved product mix and lower

fixed manufacturing costs. In developing markets, which includes Middle East and Africa, Central and Eastern Europe,

Asia Pacific and Latin American countries, organic net revenues increased 9.3% driven by solid gains in most regions,

mainly fueled by Power Brands such as Tang powdered beverages, Kraft cheeses, Philadelphia cream cheese and Oreo

biscuits. Kraft Foods Middle East and Africa contributed to these results by continuing its trend of strong growth, driven

by successful regional investments in cheese, powdered beverages and snacks, and favourable product mix. Increased

local production of beverage, cheese, and biscuits, together with optimal cooperation with distributors, JV partners and

suppliers also contributed to growth in the quarter.

Middle East Company News Wire: August 20, 2009

MIDDLE EAST: HALWANI AIMING TO DOUBLE SALES GROWTH Saudi Arabia-based food and drink company Halwani Brothers has put forward plans to double its annual sales growth to

10% by 2011 by investing SAR250mn ($66US.7mn) in expansions. The project will be kick-started by the launch of a

new biscuit plant and packaging facility by 2010. Despite possessing a vast product portfolio that spans the meat

processing, confectionery and dairy segments, and operating primarily in growing markets like Saudi Arabia and Egypt,

Halwani has been unable to achieve consistent annual sales growth above 5%. Although it is based in Saudi Arabia, the

company generated around 60% of its income in Egypt. Bearing this in mind, BMI's forecast that Egypt's food

consumption will grow by 42.7% through to 2013 - more than four times the forecasted rate in Saudi Arabia - suggests

that Egypt will play an increasingly important role in Halwani's growth strategy. In May 2009, Halwani's processed meat

sales in Egypt dropped by 33%, which forced the company to cut back production in order to hold back operational costs.

Despite this near-term setback, the firm's meat processing range is likely to remain an important growth driver in Egypt.

Like most food and drink companies operating in the Middle East, Halwani has been relatively unaffected by the

downturn. Consumer demand has held up well and we have not observed the sort of down trading that has taken place in

a number of other regions. In Q109, Halwani posted a 52.4% year-on-year increase in net income to SAR12.5mn. Its

ability to post similarly strong results in Q209 will probably be restrained by the near-term stress its Egyptian operation

has come under. While Saudi Arabia and Egypt - two of the largest markets in the Middle East - should form the

backbone of Halwani's business for the foreseeable future, BMI is encouraged by the progress the company has made on

the export front. Unlike a number of Middle East-based food companies, Halwani has been quicker than most to embrace

the market for its goods outside the wider region. The size and range of its product portolio ensures that it able to target a

wider array of markets.


3. CONFECTIONERY


USA: INTRODUCES STRESS-SUPPRESSING CHEWING GUM Ventana Biotech Inc - Introduces Stress-Suppressing Chewing Gum Ventana Biotech Inc. ("Ventana"), a biotechnology

company developing an appetite-suppressing chewing gum, revealed its latest groundbreaking research in tackling yet

another of the modern lifestyle-induced illnesses: Stress! Ventana Biotech Inc. is proud to reveal that it is conducting



research in developing a Stress Suppressing Chewing Gum that builds on its experience with its current line of anti-

obesity products. Having gained experience with stimulating the body's own natural hormones in suppressing appetite,

Ventana has commenced similar research with the aim of suppressing stress. A preliminary estimate of the royalty cash-

flow from a successful stress-suppressing drug is at USD 1.6 - 1.9 billion over a 10 year period. Stress kills and disables

millions of people in the world, where the pressure for constantly adjusting to an ever-increasing plethora of demands

simply knocks people off their feet. Prolonged stress leads to a disabling and chronic condition: Post-Traumatic Stress

Syndrome (PTSS). Until about ten years ago, this used to only affect soldiers, paramedics and a few others who had to

work under unbearable circumstances, but recently the ratio of "ordinary office workers" getting PTSS has increased at

an alarming rate, leading to millions of people suffering from PTSS! Ventana's new Stress Suppressing Chewing Gum

will prevent people from getting stressed beyond the breaking point.

Market News Publishing: August 14, 2009

USA: KEGG'S CANDIES EXPANDS OPERATIONS TO SECOND SITE OWNER REPORTS

SWEET SUCCESS AS DEMAND GROWS The retro-inspired red-and-white sign in the shadow of the Westpark Tollway announcing the sale of handmade candies

is a draw for many of those with a confirmed sweet tooth. That sign marks the location of 63-year-old Kegg's Candies'

new 11,000-square-foot chocolate factory and retail store at 8168-A Westpark Road. Until this year, the company's

chocolate- and candy-making operation was set up in smaller digs in a 2,000-square-foot space in the Meyerland Court

shopping center on Beechnut Drive near the West Loop. The company still has a 900-square-foot-retail shop in the

Meyerland Court center, which has served as a home for Kegg's Candies for more than 40 years, but the candy-making

operation has moved six miles away to the Westpark location. Robert Kegg launched Kegg's Candies in 1946. Upon his

retirement in the 1980s, the business stayed in the family for 10 years and then was sold to John Toomey, a Houston-area

businessman. Kegg's Candies President Carl Bartuch Jr. bought the business from Toomey in 2004.

The Houston Chronicle: August 27, 2009

USA: US CLOSURES SOUR LINDT H1 Chocolate maker Lindt & SprE-ngli has seen its half-year profits tumble on the back of rising commodity costs and

charges from the closure of retail outlets in the US. The Swiss firm posted net income of CHF2.7m ($2US.5m) for the

six months to June, down over 88% on the year. Opertaing profit slumped 94.3% to CHF1.9m. Stripping out one-off

charges linked to the US closures and impairment costs in Italy, operating profit fell 28.3% to CHF24.1m.Lindt blamed

the "difficult global economic situation" for its inability to fully pass on higher cocoa prices to its customers. The

weakness of currencies against the Swiss franc weighed on turnover, which fell 5.4% to CHF979m. On a constant-

currency basis, sales inched up 0.2%.

www.just-food.com

USA: RITA'S PARTNERS WITH CADBURY FOR SWEDISH FISH FLAVOR Rita's Italian Ice has announced the debut of its new flavor of Italian Ice, inspired by the popular Swedish Fish candy

brand. In partnership with the global confectioner Cadbury, the manufacturer of Swedish Fish, the new flavor became

available in all Rita's locations beginning July 31.

Ice Cream Reporter (tm): August 20, 2009



USA: WARHEADS CANDY Warheads Candy is the leading sour candy brand. With its edgy and daring extreme sour hard candy, Warheads has

developed a devout following. Warheads owns category leadership positions in sour hard candy and sour spray candy,

and is excited to announce the launch of Warheads Sour Chewy Cubes.

CSN at the show: August 26, 2009

USA: GODIVA UNVEILS ACCESSIBLE POSH CHOCS GEMS US confectioner Godiva has announced the launch of Godiva Gems in a bid to make the premium chocolate brand more

affordable and accessible. The individually wrapped chocolates are perfecta for savvy shoppers who want affordable,

high quality chocolate, the company insisted. In addition to Godiva stores and department stores nationwide, Godiva

Gems will be available for the first time at a variety of convenient locations, including Safeway Inc, Publix and

Wegmans. The collection features three varieties: Solid Gems, Caramel Gems and Truffle Gems, all available in milk or

dark chocolate.

www.just-food.com

USA: KRAFT'S TOBLERONE GAINS COMPETITION FROM FORMER DISTRIBUTOR This fall, Ferrara Pan Candy Co. is launching a line of premium European-style chocolate designed to compete with

Toblerone, the flagship Kraft candy bar that Ferrara used to distribute. In the two years that Ferrara distributed Kraft's

European chocolates in the U.S., the company increased those brand's sales by 150%, according to owner Salvatore

Ferrara II. When the distribution deal ended prematurely, Mr. Ferrara was determined to create a new specialty chocolate

line to rival his former customer's, reported Crain's Chicago Business (June 29 and July 6). The Ferrara Pan Candy Co.

already had access to the sales force and wholesale brokers, which he had hired to serve the Kraft account--and quickly

developed a new concept: the Ferrara, an angular bar of Belgian Chocolate. The new line cost Ferrara $20 million

upgrading a warehouse to accommodate the push into the specialty chocolate business. The Ferrara is made with almond

nougat, much like Toblerone. Its packaging is also similar. However, Mr. Ferrara is quick to point out the differences:

The Ferrara is Belgian chocolate in trapezoid pieces, while Toblerone is Swiss chocolate in triangle pieces. Toblerone's

annual sales in the U.S. are around $40 million.

The Food Institute Report: August 3, 2009

USA: CANDY CHAIN FANNIE MAY OUTLINES EXPANSION Confectionery retail chain Fannie May Confections is to open a distribution facility and additional retail stores in the US.

The subsidiary of 1-800-Flowers.com, will open the facility in Maple Heights, Ohio to support the growth of the

company's Harry London and Fannie May brands, the company said . The facility will create around ten full-time jobs

and a number of part-time positions during peak seasons. Additional stores will open in north-east Ohio in the autumn.

Currently, Fannie May has retail store locations in Hudson and Fairview Park, Ohio.

www.just-food.com

USA: CHOCLATIQUE INTRODUCES NAPA VALLEY WINE CHOCOLATES Choclatique has introduced Napa Valley California Wine Chocolates. It is a hand-made confection that has been paired

with wines of California varietals. The Choclatique Napa Valley wine chocolates are reportedly available in eight

varieties which include Late Harvest Cabernet, and Fall Vineyard Merlot. Estate Chardonnay Chocolate flavored with



oaky Chardonnay, with faint aromas of apple, lemon, peach and tropical fruits while the Sparkling Blanc de Chocolate is

made from California wine of the Champagnes from France, the company stated. Oak Barrel-Aged Port Chocolate is

made with fortified California, aged Port wine, Crush Fume Blanc Chocolate features a light, crisp Fume Blanc ganache

surrounded by Choclatique’s Prestige Milk Chocolate, Zinfandel Cuvée Chocolate features Zinfandel ganache with light

white chocolate undertones derived from couverture. Lastly, Pretty in Pink 'Blush' Chocolate offers a pink chocolate

ganache with fruity flavors of ripe strawberries, juicy peaches, tart nectarines and pink grapefruit, the company noted.

The Napa Valley Wine Chocolates are available in an 8-piece Boutique, 15-piece Collection and 30-piece Indulgence

boxes with prices starting at $18.

www.food-business-review.com

USA: RICHARDSON FOODS ACQUIRES BOGDON CANDY FROM DYNAMIC CONFECTIONS Richardson Foods, Inc., a producer of confectionary products, has acquired Bogdon Candy Co, Inc., a producer of

candies, from Dynamic Confections LLC. All the companies are based in the US. Dynamic Confections is a producer

and distributor of chocolates and candies.

Financial Deals Tracker: August 11, 2009

3.2 LATIN AMERICA

ARGENTINA: COMPANIES LOOK TO NEW FUNDING SOURCES Since the global crisis took hold, Argentina's corporates have struggled to source funding in the capital markets. Working

capital needs are thus driving corporates to explore other financing avenues such as loans from multilateral agencies,

commercial banks and the newly nationalized pension funds. Lending activity is beginning to pick up, especially for

deals that involve co-lending between multilateral agencies and commercial banks. Pan American Energy (PAE), a local

oil and gas company, is poised to receive a $100 million A/B loan this month, with commercial banks providing $80

million and the International Finance Corporation, the World Bank's private-sector arm, and CAF, the Andean

Development Bank, the rest. The IFC's board will discuss the potential loan in the coming weeks. The multilateral has

begun to syndicate it out. The PAE loan follows one for Arcor, a confectionery manufacturer, which was finalized in

May. Arcor received $100 million, of which the IFC provided $20 million and Santander, Citi, Rabobank, BNP Paribas

and Standard Chartered $80 million.

Euromoney: August 2009

CHILE: SWEETS BEING CHEWED AS ALWAYS Consumption per capita in the Chilean sweets sector has remained stable over the last few years, according to the brand

manager at Caramelos Ambrosoli, Katherine Strauss. Volume has not shifted then but value has since increasingly

added-value products are flying off the shelves. Healthier options are becoming favourites, as is the case with the Ricola

sweets range, free of artificial sweeteners and colouring. However, there are traditional favourites that people continue to

consume irrespective, remembers the Ambrosoli executive. Pibamour, a chocolate and sweets distributor, is responsible

for the Orbit and Hubba Bubba chewing- and bubble-gum brands in Chile. It notes that the gum options have multiplied

nationally of late and that the top tendency at present is that of offering oral hygiene too, as Orbit does or claims to do.

Sweets are sold 56.7% at traditional sweet shops and 43% at supermarkets in Chile.

Estrategia: August 17, 2009



3.3 UK/EUROPE

UK: MARS RATIONALISES CHRISTMAS OFFERING Confectionery giant Mars has announced plans to rationalise its Christmas offering, reducing the number of products on

offer to focus on 13 SKUs. This Christmas will see the retuen of "a number of old confectionery favourites" as well as

some new additions to the Mars seasonal offering, the company said. Mars also announced plans to launch Maltesers

Tree Boxes, in response to "the consumer trend for buying gifts that combine the magic of the season with a favourite

chocolate", the confectioner said.

www.just-food.com

UK: GILDED £1000 WISPA GOLD IS THE WORLD'S MOST EXPENSIVE CHOCOLATE BAR People can be very attached to their favorite childhood candy bar, so it should come as no great surprise that a public

campaign to get Cadbury to put the Wispa Gold back on the shelves got what they wanted. But while the average store-

bought example will sell for a modest 55 pence in the UK, the confectionary company has created one very special

example to commemorate the brand's relaunch. Initially launched in 1995 as an alternative to competitor Nestle's Aero

bar, the Wispa bred several varieties, including the caramel-filled Wispa Gold, the Wispa Mint, caramel and biscuit

Wispa Bite and the coffee-flavored Wispaccino. But when Cadbury relaunched the Dairy Milk in 2003, the similar

Wispa was discontinued. Now back by popular demand, Cadbury crafted on special edition, covered in gold leaf, was

delivered by gold-record singer Tony Hadley to the Selfridges department store in London where it is being displayed in

the jewelry department as a promotion. After that, it will be put on sale to benefit the UK Lowe Syndrome Trust for a

whopping £961.48, the exact value if the chocolate bar were actually a real gold bar, making this the most expensive

candy bar ever made.

Luxist: August 10, 2009

UK: AIM GIFTS JAMMIN' LOLLIPOPS IN MUSICAL SHAPES New Jammin' Lollipops are the newest addition to the Aim Gifts music gift accessory line. Each pack of 12 different

musical shapes and flavors comes in an attractive box that becomes a must-have point-of-purchase display. From

Acoustic Guitar Apple to Rock Star Raspberry, these gourmet treats let sweet-loving musicians "enjoy a lick while

playing a lick." Adults like them; children love them. Jammin' Lollipops are exclusively available from AIM Gifts, an Inc

500 company with no minimum order.

Music Trades: August 1, 2009

UK: WRIGLEY ADDS VARIANT TO LOCKET RANGE Mars gum business Wrigley has expanded its Lockets range to include an additional variant and re-vamped the brand's

packaging. Cranberry and Blueberry Lockets will replace the Blackcurrant Lockets flavour and join Honey & Lemon

Lockets and Extra Strong Lockets. All Lockets have an RRP of GBP0.54 ($0US.88) and the launch will be supported by

a marketing campaign. The packaging re-design give the packs a "bolder" look, the company said.

www.just-food.com



UK: CADBURY MUCH-LOVED WISPA BAR BACK WITH SPECIAL EDITION COSTING

POUNDS 961.48 The "world's most expensive chocolate bar" has gone on sale to mark the relaunch of a popular treat. With the gold leaf-

covered special edition priced at pounds 961.48, the new Wispa Gold is unlikely to attract many buyers until the

55pversion hits the shelves next month. The chocolate bar went back into production last month at Bournville-based

Cadbury following a huge drive on the online networking site Facebook, where more than 22,000 people joined the

group "Bring back Cadbury's Wispa Gold". The caramel-filled Wispa Gold was discontinued in 2003 but is due to go on

sale again on September 14 for a "limited period".

Birmingham Mail (England): August 4, 2009

UK: LEBANESE CHOCOLATE MAKER PATCHI PLANS DUBAI LISTING The Lebanese chocolate chain, Patchi, is planning to list its stocks in Dubai and London to help expansion, reports the

Financial Times. The company, which made $165 million last year, is planning to open cafés to sell chocolate, coffee and

snacks, says the report. The family-owned company has closed 14 shops across the world since September last year, but

it has seen sales increase 2 percent in Dubai during the first half of 2009.

Kippreport: August 10, 2009

UK: NEW CHOCOLATE WON'T MELT IN YOUR HAND Chocolates that melt into a gooey mess at the bottom of a bag may soon be a thing of the past, thanks to a firm in this

chocolate-loving country where chocolate is also serious business. The Barry Callebaut firm, a key player in the

chocolate business, is developing a variety that withstands temperatures up to 55 degrees C before melting. Even better,

it is low in kilojoules. The heat-resistant chocolate has been dubbed Volcano.

The Chronicle (Toowoomba, Australia): August 18, 2009

UK: CHANGE OF FLAVOUR NEEDED Sweets can no longer be advertised during children's programmes, and schools are not permitted to sell them on their

premises. Despite external pressure on the market from rising concerns about health and diet, it is growing. Mintel

estimates that by the end of the year it will be worth more than pounds 1.7bn, up 7% since 2004. However, consumption

among seven- to 10-year-old children is falling back, according to TGI. Snacking in the UK, is changing with traditional

options such as crisps, sweets and chocolate being challenged by healthier foods such as cereal bars, fruit and nuts. While

growth has been strongest from the latter contenders, crisps remain the most popular alternative to sugar confectionery.

Sugar confectionery is the biggest category in the sector and has performed the best, with sales increasing 11% in the five

years since 2004. Chewing gum has increased slightly by 2% since 2007, while sales of mints have fallen by 8% over the

past five years. Preferences are split among different age groups: mints are favoured by the over-65s; under-45s opt for

sweets; and gum is preferred by the under-25s. The strong performance of Cadbury's Trident and the launch of its

Natural Confectionery Company in the UK helped it overtake Nestle in 2008. The Natural Confectionery Company

range, which comprises animal-shaped jellies, free from artificial additives or flavours, is aimed at younger children.

Mars' purchase of Wrigley last year will make it the biggest player in this market accounting for about a quarter of sales

value. It added 5, a premium range from the US, to its chewing-gum portfolio this year in three flavours: Cobalt, Electro

and Pulse. As well as chewing gum, Mars' biggest brands are Skittles and Starburst and much of its innovation has

focused on extending these two lines. This has resulted in the roll-out of Starburst Twisters and Smoothies Chews, the



latter made using real fruit juice. Many big brands have made efforts to remove artificial flavours and colouring from

their products. Haribo uses no artificial colours across its range, which includes Maoam; Swizzels Matlow meanwhile

has stopped using them this year in its retro sweet range, which includes Refreshers, Love Hearts and Parma Violets.

Nestle's brands include favourites such as Rowntree's Fruit Pastilles, Jelly Tots, Tooty Frooties and Polo. Its biggest

launch this year, Randoms, is being heavily advertised on TV and positioned to challenge Haribo. Changing

demographics may affect manufacturers' strategies. The 15- to 19-year-old group is declining; that of five- to 14-year-

olds is expanding slowly. Considering the restrictions on children's advertising, NPD may need to focus on adults to

boost growth. Over the next five years, Mintel predicts that sales will grow by 9% to a total value of pounds 1.9bn.

However, in real terms the sector will be virtually stagnant, falling by 1%.

CONFECTIONERY MAKERS BY VALUE AND SHARE

2008 2007 2006 pounds m % pounds m % pounds m %

% chng

1 Cadbury Trebor Bassett 398 23 378 22 352 21 13.1 2 Nestle 386 22 386 22 370 22 4.3 3 Wrigley* 284 16 286 17 271 16 4.8 4 Mars Confectionery 158 9 157 9 155 9 1.9 5 Haribo 135 8 132 8 130 8 3.8 Other and own-label 379 22 380 22 402 24 -5.7 Total 1740 100 1719 100 1680 100 3.6

* acquired by Mars in 2008

Source: Mintel

SUGAR CONFECTIONERY MAKERS BY VALUE AND SHARE


% chng

1 Nestle 352 29 353 30 338 29 4.1 2 Cadbury Trebor Bassett 260 22 250 21 240 21 8.3 3 Masterfoods 158 13 157 13 155 13 1.9 4 Haribo 135 11 132 11 130 11 3.8 5 Swizzels Matlow 88 7 86 7 85 7 3.5 6 Leaf 44 4 44 4 44 4 - 7 Perfetti van Melle 18 2 16 1 14 1 28.6 Other/own-label 142 12 137 12 143 12 -0.7 Total 1197 100 1175 100 1149 100 4.2

Source: Mintel

GUM AND MINT MAKERS BY VALUE AND SHARE


% chng

1 Wrigley* 284 52 286 53 271 51 4.8 2 Cadbury Trebor Bassett 138 25 128 24 112 21 23.2 3 Nestle 34 6 33 6 32 6 6.3 4 Big Bear 23 4 22 4 18 3 27.8 5 Ferrero UK 14 3 15 3 16 3 -12.5 6 Perfetti van Melle 4 1 5 1 5 1 -20.0 Other and own-label 46 8 55 10 77 15 -40.3 Total 543 100 544 100 531 100 2.3

* acquired by Mars in 2008

Source: Mintel

Marketing: August 12, 2009



UK: GALAXY MOVES INTO LARGE CHOCOLATE BLOCKS Galaxy Caramel and Galaxy Cookie Crumble are now available in large block format. The launch of the larger bars

comes as new sales data reveals Galaxy Caramel single bars are demonstrating sales growth of 7.5%. The data also

shows that Galaxy Milk Chocolate singles have seen an impressive growth of 23%, which was well above market

growth.


UK: UK CHOCOLATE SALES BOLSTER NESTLE KitKat maker Nestle has said demand for chocolate among sweet-toothed Britons remained strong during the recession.

The Swiss food giant said its UK confectionery business continued to perform well in the first six months of the year

amid demand for brands such as Yorkie and Smarties. Cadbury last month said a "stay-at-home" culture had led to rising

demand for sweets and chocolate, leading to an increase in UK confectionery sales. Nestle, which has UK operations at

sites including Girvan, York and Castleford, said total confectionery sales were up 4.3% at 5.1 billion Swiss francs

(£2.87bn). It said KitKat, which last year was boosted by an advert campaign featuring pop band Girls Aloud, had

continued its "excellent performance" with UK sales up 6.8%. Meanwhile, jelly sweets Rowntree Randoms, launched in

May, have also proved a hit. Elsewhere in its UK operations, sales of Nescafe instant coffee - the UK's best selling coffee

brand - were up 4.2%. However sales at Nestle's water division, which includes the Buxton brand in the UK, weakened

with group-wide sales down 2.9%.Nestle, the world's biggest food producer, said total group-wide sales rose 3.5% on an

organic basis to 52.2 billion Swiss francs (£29.5bn) in the six months to June 30. However, net profit fell 2% to 5.1

billion Swiss francs (£2.87bn) as earnings were hit by the strength of the Swiss currency.

The Press Association: August 12, 2009

IRELAND: GORMLEY CHEWS OVER TAX ON GUM Environment Minister John Gormley is considering the introduction of a chewing gum tax after complaints that

awareness campaigns have been a "total waste of time". The previous Government backed down on plans for a tax to

help pay for street clean-up costs after lobbying by American chewing gum manufacturers. But Mr Gormley has

indicated that a chewing gum tax is now on the table again after the expiry of a three-year voluntary agreement with the

manufacturers. Cleaning chewing gum off the streets has cost the authorities millions of euro in recent years. Dublin City

Council alone spends more than EUR250,000 a year on gum removal. It is understood that Mr Gormley believes the

voluntary agreement did not prove to be very effective and is still in favour of the chewing gum tax he promised shortly

after taking office in 2007. The Irish Business Against Litter group said the 2006-2009 voluntary agreement, which saw

chewing gum manufactures pay around EUR6m in total for awareness raising campaigns, had been a "total waste of

time".

Irish Independent: August 13, 2009

CROATIA: IPK KANDIT POSTS RESULTS FOR H1 OF 2009 The sugar, chocolate and confectionery producer IPK Kandit has announced that its profit fell from HRK 23.6mn in H1

of 2008 to HRK 2.24mn (EUR 305,975.73 USD 435,270.07) in H1 of 2009. Its total income reached HRK 269.6mn and

was down by 10.6%, while its business income fell by 10.9% to HRK 261.3mn. Its outgoings were down by 2.8% to

HRK 267mn. The company sold 3,100 tonnes of products, up by 3% compared to H1 of 2008, while sales of sugar

totaled 41,700 tonnes. The company explained that the higher prices of sugar cane, and lower sugar prices on the EU



market were the main causes for its negative results. In 2009, the company plans to produce 7,100 tonnes of

confectionery products and 92,000 tonnes of sugar. In addition, the company is currently building a new chocolate

products factory. The new factory will cost EUR 10mn (USD 14.23mn) to construct, while its production capacity will

amount to 3,800 tonnes per annum.

Business.hr: August 21, 2009

FINLAND: CONFECTIONERY PRODUCTS SELL WELL IN SPITE OF RECESSION According to confectionery company Leaf Finland's marketing manager Minna Cousins, the company is now on a

growth track. The company has grown in 2009 although not as much as in 2008. Sales of confectionery, chocolates, and

chewing gum have increased in spite of the recession. According to Fazer Confectionery, sales of the company's plant in

Lappeenranta in Finland have remained at a good level. Sales in the Travel Trade, that is sales on ferries and airlines,

have fallen slightly, however, because people do not travel as much as they did previously.

Etelä-Saimaa: August 11, 2009

FINLAND: MALACO LAUNCHES NEW MUST CONFECTIONERY In Finland, confectionery company Malaco is launching new Malaco Must sweets in the market in Finland. The sweets

contain real liquorice extract, and provide sweet and salty flavours that have been complemented with a pinch of sea salt,

laurel leaf, and carambola. The company expects these sweets to appeal to adults. The Malaco Must salmiac comes is

small bags; flavours are Mood of Black, Touch of Sea, and Dark Shots.

Kehittyvä Kauppa: August 28, 2009

FINLAND: CONFECTIONERY COMPANY PANDA'S SALES TO GROW IN 2009 The recession has had little effect on the confectionery sector in Finland. Finnish confectionery company Panda's sales

are increasing also in 2009. According to Panda, also Christmas sales have started well. The company started production

of Christmas chocolates in week 28 of 2009.

Keskisuomalainen: August 7, 2009

GERMANY: RISING SALES FAIL TO STEM HALLOREN H1 LOSSES German chocolate maker Halloren has seen its half-year pre-tax losses widen despite a jump in sales. The company said

that it had recorded a pre-tax loss of EUR580,000 ($825US,695) for the six months to June, against a loss of

EUR430,000 a year earlier. EBITDA jumped 41% to EUR670,000 as Halloren's revenues climbed on the back of the

acquisition Delitzscher Chocolate Factory. Turnover rose 48% to EUR20.1m.

www.just-food.com

HUNGARY: MARS HUNGARY SET FOR TOUGHER YEAR IN 2009 Mars Hungary - a subsidiary of the US-based confectionery giant - has reported turnover of HUF50bn ($179USmn) in

FY08. Contributing 37% and 8% to its domestic turnover, Mars' snack food and food and drink divisions boast an array

of power brands. Mars is also among the top 50 export companies in Hungary. Although it is among the country's most

established confectionery and pet food companies, BMI believes that Mars will have its work cut out if it is to make good

on its forecast that it will post moderate revenue growth in Hungary in FY09.BMI points out that the chocolate segment

comfortably surpasses the sugar confectionery and gum segments in terms of value sales, contributing an estimated



64.7% to wider industry sales in 2008.Despite being able to call upon chocolate power brands like Mars and Snickers,

snack food sales are likely to be affected by our forecast that industry wide confectionery value sales in Hungary are set

to decline by 4.6% year-on-year (y-o-y) in 2009 and fall back to $564USmn.Although the chocolate segment usually

performs particularly doggedly compared to the majority of non-essential food and drink segments during periods of

economic weakness as consumers trade down to inexpensive luxuries, the sheer magnitude of the current downturn is

likely to weight down on Mars' snack food sales in 2009.Through to 2013, we expect chocolate sales in Hungary to grow

by a modest 8.7% and reach $399USmn, thereby marginally outperforming the wider industry. With our low-key outlook

in mind, we expect Mars to steadily devote a greater proportion of its resources to pushing up export sales. Currently,

exports account for around 60% of Mars Hungary's turnover; a ratio that is likely to gradually increase through to 2013.

BMI Emerging Europe Food and Drinks Insights: August 1, 2009

ITALY: FERRERO WINS PRALINE BATTLE WITH RUSSIA Italian confectionery giant Ferrero has won a copyright battle over its patented praline 'Raffaello' which had been cloned

by the Russian company Landrin and renamed 'Waferatto'. Ferrero had thought its long battle with the Russian company

was over last April when the Russian supreme Court of Arbitration ruled in its favor. However, a Moscow court

overturned the decision and ruled in Landrin's favor, forcing the Italian company to turn to the Moscow Court of

Appeals. Ferrero last year won a similar battle against a Chinese-made copy of its famous Ferrero Rocher praline and has

now turned its legal guns against clones of its products in Turkey and other Middle East and North African countries.

Aside from the chocolate-hazelnut 'Ferro Rocher' and coconut-flavored 'Raffaello' pralines, Ferrero is known worldwide

for its hazelnut-chocolate spread 'Nutella', Pocket Coffee and Mon Cheri chocolates, the tiny Tic Tac breath mints and

the Kinder line of snacks and candy bars. The success of Ferrero products have helped make Pietro Ferrero Italy's richest

man.

ANSA English Corporate News Service: August 31, 2009

LATVIA: SKRIVERU SALDUMI PLANS TO LAUNCH THREE NEW KINDS OF CANDIES

GOTINA The company Skriveru Saldumi is planning to launch three new kinds of its milk-based candies under the trademark

Gotina (Korovka). At present, the enterprise puts out ten kinds of these candies. Classic candies Gotina rank first by

popularity, Gotina with hazelnut second, and Gotina with cranberries third. Skrivery Saldumi also turns out toffees and

chocolate marzipan from almonds. The company announced its plans to enter the Lithuanian and Estonian markets as

well as its intention to start supplying products to the markets of Russia, Austria and UK, talks already being held with

representatives of these countries.

Shokoladny Business: August 31, 2009

POLAND: CADBURY CONTINUES ITS EUR 200MN INVESTMENT PLAN Despite the economic crisis, the confectionery producer Cadbury Wedel is not giving up the completion of its EUR

200mn (USD 285mn) investment plan. In line with the plan, the company has recently expanded its chocolate factory

located in Bielany Wroclawskie and is currently modernizing its plant based in Warsaw. Also, as part of the plan,

Cadbury Wedel is building a new plant in Skarbimierz, where it currently operates a chewing gum factory. Thanks to the

launch of the new production facility in Skarbimierz, which will make chocolate products for export, the firm will double

its annual capacity with regards to the production of chocolate-based confectionery products in Poland and will create



some 300 new jobs. The opening of the Skarbimierz plant is scheduled for the first quarter of 2010, while the opening of

the expanded part of the factory in Bielany Wroclawskie is due to take place in September this year. It is estimated that

some 200 new jobs will be created in Bielany after the expansion. At present, Cadbury Wedel is the second-largest player

on the Polish confectionery market worth around PLN 6bn (EUR 1.45bn USD 2.06bn). Its annual revenue is estimated at

over PLN 700mn.


POLAND: PASTIGLIA LEONE TO INTRODUCE CHOCOLATE PACKED IN TUBES On the turn of 2009 and 2010, the Italian company Pastiglia Leone is planning to introduced its innovation chocolate

packed in tubes on the Polish market. According to initial information, the price per a 130ml tube will reach PLN 6 -

PLN 7 (EUR 1.70 USD 2.43).

Wiadomosci Handlowe: August 17, 2009

POLAND: CADBURY WEDEL TO GO AHEAD WITH E200 MILLION SKARBIMIERZ SWEET

FACTORY Confectionery company Cadbury Wedel will continue with its plan to invest E200 million in a sweet factory in

Skarbimierz, Poland, which will also make products for export markets, according to the Rzeczpospolita news daily. The

new facility is expected to come on stream in the first quarter of 2010. The Skarbimierz facility has received support

from the Polish government, which has contributed PLN14 million. This reportedly is one of the main reasons Cadbury

chose Poland as the location of the factory.


ROMANIA: KRAFT FOODS STARTS REDUNDANCIES AT BRASOV CHOCOLATE FACTORY Kraft Foods has recently laid off 169 employees from the Brasov chocolate factory, as part of its plan to close down the

facility by the end of 2009 and transfer the production to Bulgaria. The company will transfer 60 to 70 employees, of the

total 440, to one of its suppliers, Rap Confectionery.

Ziarul Financiar: August 24, 2009

RUSSIA: PERFETTI VAN MELLE OFFERS NEW SOFT JELLIES Perfetti van Melle has announced the launch in Russia of a line of soft jellies, Ftuittella Tastes of Nature, in hanging bags

supplied by Alcan Packaging Food Europe.

Unipack: August 3, 2009

RUSSIA: ABAKAN CONFECTIONERY FACTORY LAUNCHES NEW CANDIES The Abakan Confectionery Factory has put into operation a new manufacturing line and launched two new kinds of

fondant sweets Premyerny Pokaz and Shkolnye Tetradki. In the near time, the novelties will come onto the market.

InformKonditer: August 11, 2009

RUSSIA: VORONEZH CONFECTIONERY IMPROVES FINANCIAL RESULTS IN Q2 2009 In April-June 2009, net profit of the Voronezh Confectionery Factory (makes part of the holding United Confectionary

Manufacturers) rose 3.3-fold year-over-year, to RUB 26.80mn (EUR 596,829.09 USD 852,715.62). Revenue of the



enterprise increased by 7% to RUB 313.7mn. Assets margin stood at 9.1% against 1.5% in April-June 2008. The results

improved thanks to growing prices for ready-made products. As of the second quarter of 2009, accounts payable of the

factory amounted to RUB 4.5mn and receivables to RUB 121.6mn.The largest sales markets for the enterprise's products

in Q2 2009 were the Moscow (34%) and Voronezh (26%) regions. The factory's range comprises over 250 names of

confectionery products, including candies, hard candies, biscuits, waffles, marshmallow, and jellies.

Konditerprom: August 25, 2009

RUSSIA: CONFECTIONERY FACTORY LAMZUR INTRODUCES SWEETS ICED IN WHITE

CHOCOLATE The confectionery factory Lamzur (Saransk, Volga) has introduced sweets iced in white chocolate. The range of the line

Skazochnaya Strana has been replenished with four Yoghurt Desserts: with raspberry, strawberry, pear, and boiled

condensed milk in white icing.


RUSSIA: CHANDENIE TO LAUNCH PRODUCTS UNDER PRIVATE LABEL OF METRO C&C The confectionery house Chandenie and the chain Metro Cash & Carry has signed an agreement to launch confectionery

products under the chain's private label. The launch of the production is planned for September 2009. Total shipments in

the first several months will stand at two to three tons. The confectionery house Chandenie is a joint French and Russian

venture producing a wide range of chocolates. The capacity of the chocolate enterprise of the house (confectionery

factory Mechta) comes to 2,500 tons of chocolate products and 1,500 tons of hard candies per year.

Upakovano.ru: August 25, 2009

RUSSIA: KRUPSKAYA CONFECTIONERY FACTORY AND PEKAR SIGN AGREEMENT The company Pekar and Krupskaya Confectionery Factory have signed an agreement envisaging that all goods under the

trademark Pekar that will be produced in the future, will be distributed via the factory's logistics network. The parties do

not disclose commercial terms of the agreement. The factory has also acquired some Pekar's production assets. Besides,

some trademarks of the company will be relocated to the factory. Krupskaya Confectionery Factory will be engaged in

development and promotion of the brand via ads and actions in retail outlets. Sale and distribution of Pekar's products via

the supply network of Krupskaya confectionery have already started since July, 1 2009. At present, Pekar controls

production of waffle cakes and other goods.


RUSSIA: RUSSIA'S RED OCTOBER RAS NET LOSS NARROWS 17.6% ON YEAR IN JAN-JUN The net loss of Moscow confectionery factory Red October narrowed to 194.014 million rubles in January-June from

235.423 million rubles in the same period of last year, as calculated under Russian Accounting Standards (RAS), the

company said in a report obtained by Prime-Tass. The company's revenue rose 22.4% on the year to 2.328 billion rubles

in January-June, while its gross profit rose 75.6% on the year to 549.895 million rubles. Red October, or Krasny Oktyabr,

is a subsidiary of Russian holding United Confectioners, or Obyedinennye Konditery. United Confectioners comprises 15

Russian candy makers, including Moscow-based Rot Front and Babayevsky.

Prime-Tass English-language Business Newswire: August 17, 2009



RUSSIA: OUTPUT OF CONFECTIONERY DECREASES IN ROSTOV REGION Output of confectionery declined 23.4% in the Rostov region (South) through January-June 2009, against the same

period in 2008, because of falling consumer demand. Despite difficult situation in the market, some enterprise raised

output. For example, the factory Konditer based in Kamensk raised its output 6.5%, to 2,200 tons, the food enterprise

Azovsky 2.8 times to 1,900 tons. They raised indices to develop new sales markets in the Rostov region and other

regions of Russia.

Konservny Business: August 5, 2009

RUSSIA: NESTLE RUSSIA CHOOSES PRAVILA USPEKHA TO DELIVER GIFT TUBES The company Nestle Russia has chosen the company Pravila Uspekha as the supplier of serial gift tubes for Nestle's

partners to pack New Year gifts. The main reasons of the choice are wide assortment of packaging, modern design, high-

quality of goods and the cost of products.

Upakovano.ru: August 18, 2009

UKRAINE: NESTLE TO EXPAND CONFECTIONERY OPERATIONS Nestle intends to expand production at its Ukrainian confectionery facility. The company will invest over $US5m to

increase capacity at its JSCSvitoch ("Lviv") facility by the end of 2009, sources in the company's Corporate Affairs

Division have said. In particular, the Lviv Confectionery Factory will start producing brands including Nuts and KitKat,

which were previously imported, the company said. Te Lviv factory will start packaging coffee and coffee mixes under

the Nescafe brand as well as doubling its capacity to produce wafers.

www.just-food.com

3.4 ASIA PACIFIC

AUSTRALIA/NEW ZEALAND: CADBURY'S FAIRTRADE DAIRY MILK TO HIT CANADA,

DOWN UNDER UK confectionery giant Cadbury is to begin selling its Dairy Milk bar as Fairtrade in Canada, Australia and New

Zealand. Cadbury said that its Dairy Milk bars on sale in Canada will display the Fairtrade mark by next summer. With

an estimated 22 million bars sold annually, it is expected to double the amount of Fairtrade certified chocolate sold in

Canada, Cadbury said. The certification of Cadbury Dairy Milk will improve the lives and communities of over 40,000

cocoa farmers and 6,000 sugar farmers, ensuring a guaranteed income, viable growth and hope for a prosperous future,

said executive director of TransFair Canada, the national Fairtrade certification body. Gary Scullion, general manager

for Cadbury's Canadian business, said the country's consumers could be a "catalyst for change”. Cadbury also plans to

roll out Fairtrade Dairy Milk in Australia and New Zealand. The moves follow last month's official launch of the line in

the UK.

www.just-food.com



AUSTRALIA: AMCOR SETTLES FOR $193 MILLION IN AUSTRALIA A price-fixing cartel between Amcor Ltd. and Visy Industries Ltd. could bring about lawsuits from their corrugated box

customers, possibly affecting the packaging firms' profit margins for years, reports The Sydney Morning Herald. Earlier

this month, Cadbury Plc, one of the world's biggest makers of chocolates, settled with Amcor for $193 million (U.S.) for

compensatory damages stemming from the cartel conduct between 2000 and 2004. In a brief statement to the stock

exchange, Amcor said the terms of the proposed settlement would not have a "material" effect on its financial position. A

company spokesman declined to comment further. Itis understood that Amcor does not admit liability. Meanwhile, a

class action lawsuit representing thousands of smaller customers is expected to go to trial in 2010 against both Amcor

and Visy. However, Amcor said that the Cadbury decision would not cause a material financial impact on the company.

The terms of the settlement with Cadbury involved continuing supply arrangements with Amcor. Other major Amcor

corrugated box customers have already negotiated cheaper future contracts since the Australian Competition and

Consumer Commission exposed the cartel in 2005, The Herald states. Currently almost all the members of the class

action lawsuit are still Amcor or Visy customers. While the lawsuit is seeking cash damages, it's possible that cheaper

contracts in the future could be agreed upon. Had this case proceeded, Amcor would have been forced to sit through

damaging evidence, including transcripts of secretly taped conversations between former senior Amcor and Visy

executives in which they agreed to not compete for major customers in 2000 and 2001. The executives also discussed

how they would raise contract prices. The court was also expected to hear from some former senior Amcor executives at

the heart of the cartel, including its now-disgraced former chief executive Russell Jones, once touted as Amcor's golden

boy, who presided over the cartel for four years.

Official Board Markets: August 1, 2009

AUSTRALIA: CHOCOLATE MAKER'S BAN WORRIES PACIFIC Palm oil farmers in the Pacific are concerned about environmental lobbying that has seen chocolate-maker Cadbury say it

will no longer use the product in its dairy milk chocolate, reports Radio Australia. Environmentalists argue that palm oil

plantations in Indonesia and Malaysia encroach on natural rainforest, destroying the habitat of orang-utans. Cadbury has

bowed to the pressure. But landowners in Solomon Islands, say the situation there is vastly different, and the campaign

could harm families who depend totally on the oil crop.

PAC - Pacific Islands Broadcasting Association: August 21, 2009

NEW ZEALAND: CADBURY IN NEW ZEALAND TO STOP USING PALM OIL IN ITS

CHOCOLATE Cadbury in New Zealand has bowed to consumer pressure and agreed to stop using palm oil in its chocolate, it has been

widely reported .The moves comes after the confectionery giant received hundreds of letters and emails of complaint

after it revealed a new recipe substituting cocoa butter with vegetable fat, including palm oil, TV New Zealand said in a

report. The report said palm oil had been linked with the clearing of native habitat in countries such as Indonesia and

Malaysia. Cadbury products had been banned from Auckland Zoo and a facebook group boycotting the company because

of the change, swelled to almost 2,000 members. Cadbury New Zealand managing director Matthew Oldham told TVNZ

their recipes would now only use cocoa butter.

Bernama The Malaysian National News Agency: August 17, 2009



INDIA: STATES CAMPCO TO RAISE ECLAIR PRODUCTION CAPACITY Considering the demand for cocoa-based products in the market, Central Arecanut and Cocoa Marketing and Processing

Cooperative (Campco) Ltd is planning to expand the production capacity of various products at its chocolate factory in

Puttur of Dakshina Kannada district. Considering the demand for eclairs in the market, the cooperative is planning to

expand eclair production capacity at its chocolate factory in Puttur. The eclair production unit will be expanded at a cost

of Rs 3.80 crore. Though the proposed unit will have the capacity to produce additional 500 tonnes of eclairs, nearly half

of that will be used for the time being. The production may be increased based on the demand for the product, he said.

CHOCÓ-CHIPS Stating that there is a good demand for choco-chips in the north Indian market, sources said the

cooperative is planning to invest around Rs 80 lakh for increasing the production of choco- chips at the chocolate factory.

Campco is also planning to invest around Rs 96 lakh for increasing the production of industrial cocoa products. ISO

22000 certification The chocolate factory at Puttur is likely to get ISO 22000 certification by the end of March 2010,


INDIA: TOON KIDZ TO FORAY INTO CHOCOLATE BUSINESS Kids apparels and accessories player Toon Kidz is planning to launch its own range of chocolates by the end of this year

that would be sold through its exclusive retail outlets. The Company is also undertaking an expansion of its retail chain

with plans to have 100 outlets across the country by the end of this year. The chocolates range would be available under

the company's private label. Sources said the range would include chocolate and assorted toffees in various flavours and

those would be sold across the company's outlets along with its apparel, accessories, footwear and PC games ranges.

Press Trust of India: August 08, 2009

INDIA: PERFECTING PERFETTI Globally, Perfetti Van Melle ranks third in the confectionery sweepstakes after Mars and Cadbury. But in India, it leads

the pack with a 25 per cent share of the Rs3,000-crore per annum market. India, in fact, is the only country outside Italy

where Perfetti is ahead of both its rivals. It could boast of other achievements in the country as well. In a market where

price points are as low as 25 paisa, it has three brands which sell over Rs100 crore each: Alpenliebe, Center Fresh and

Big Babol. And, the Indian operations, expected to scale the Rs1,000-crore mark this financial year, have been profitable

for “some years now”.


JAPAN: 'GARI'-FLAVORED CANDY Kracie Foods Ltd.'s new soft candy Gyutto Gari may surprise people with the flavor of gari, the sweet-pickled ginger that

often accompanies sushi. The candy during its production is mixed with powdered ginger extract and vinegar. This gives

the product its refreshingly sour and pleasantly pungent flavor, the company said. It is slightly harder than ordinary soft

candies. One pack has 11 candies and weighs 19 grams in total. They contain 6,500mg of ginger extract powder, about

the same as in a cherry-size bit of fresh ginger. The pouch has a fastener so it can be carried around. Each pack has

ginger printed on its surface to emphasize the ginger flavors. Price: 126 yen.





MIDDLE EAST: CARAMEL--OOPS, CAMEL DELIGHTS Caramel--oops, Camel delights: The ruling Sheik of Dubai is hoping to make a chocolaty treat, known as "Al Nassam,"

the Middle Eastern version of Godiva chocolate. The catch? Al Nassam, or 'cool desert breeze,' is made from camel's

milk. While the chocolate may taste saltier than chocolate made from cow's milk, the sheik contends the treat will be a

big hit: Camel's milk is organic, healthy and allegedly has a phrodisiac qualities. The Sheik happens to have his own

camel dairy farm, called "Camelicious," with 3,000 animals. Camels are hard to milk and don't provide the same quantity

as cows, about two gallons of milk daily compared with the seven gallons daily from dairy cows.

Food Chemical News: August 3, 2009

MIDDLE EAST: AL NASSMA TO EXPAND INTO US, JAPAN MARKETS The General Manager of Al Nassma, which uses camel milk to produce confectionery, said that the company is planning

to open outlets in California, New York and Tokyo in the next months, Gulf News reported. The overseas expansion has

now priority over originally planned steps to open shops and outlets in GCC and Middle East countries first, the official

said. However, plans to expand to Saudi Arabia, where at least one shop will open in Jeddah next year, as well as to

Bahrain, Oman, Kuwait, Iran, Egypt and Turkey are on track, he added. Al Nassma is a joint venture of the Dubai

Government and HM Chocolate Holding, based in Vienna and founded by entrepreneurial confectioner Hans Georg

Hochleitner from Salzburg, Austria. Renowned Austrian chocolate manufacturer Manner AG, a century-old family

company in Vienna, is holding 45 percent of HM Chocolate's stake and is assisting Al Nassma in the production process

and delivering know-how. Camel milk is delivered as freeze-dried powder to Manner's Viennese factory and processed

into big chocolate blocks there. Then the raw blocks return to Dubai for final production. At the Al Nassma chocolate

factory currently 15 people are working on the transformation of the blocks into several types of fancy chocolate

products.

MENA English (Middle East and North Africa Financial Network): August 16, 2009

MIDDLE EAST: MIDDLE EAST IN TOP TEN CONFECTIONARY MARKETS IN THE WORLD The Middle East is identified in the top ten markets for confectionery products in the world, with a high per capita

consumption of chocolate in particular. According to a recent study by TNS Media Intelligence, the total Middle East

confectionery market is valued at US$ 113 billion, and the market has grown by 15 percent over the last three years, with

Saudi Arabia and Qatar experiencing the largest growth at around 24 percent. Such growth is attributed to greater

disposable income per capita, the influence of the region's enormous population of young consumers, and the traditional

role of sweets in Arab culture. Despite fluctuations in the region's economy, over the next decade confectionery sales are

forecast to increase by 15-20 percent. To capitalise on these favourable market trends, the co-located exhibitions, Sweets

Middle East and the inaugural Sweet & SnackTec Middle East, will take place from 2 -- 4 November 2009 at Dubai

International Convention and Exhibition Centre (DICEC). Bringing business partners together, the events will create new

trading opportunities and promote growth and development in the region, as well as serve producers, suppliers, importers

and exporters of the sweets, confectionery and snack industry from across the MENA region. Both exhibitions are co-

organised by Dubai World Trade Centre (DWTC), the region's leading exhibitions organiser which portfolio includes

Gulfood, and Koelnmesse, organiser of the leading international sweets and confectionery show ISM in Cologne.

The Middle East and North Africa Business Report: August 3, 2009



4. BEVERAGES/SOFTDRINK/LIQUOR


USA: PEPSI OFFER SWEETENED Minneapolis-based PepsiAmericas is being purchased by PepsiCo in a deal that returns ownership of the world's No. 2

Pepsi bottler to the New York-based soft drink giant. It also will bring $363 million to the billionaire Pohlad family,

which owns 10 percent of PepsiAmericas. recent deal is part of a $7.8 billion transaction that also involves Pepsi's largest

bottler, Pepsi Bottling Group. Both bottlers rejected an initial buyout offer in May, and after weeks of grumbling,

PepsiCo sweetened and then closed the deal. The deal also means the loss of another Minnesota-based company from the

ranks of the Fortune 500, although PepsiAmericas employed only a handful of people at its downtown Minneapolis

headquarters and had few operations in the state. PepsiAmericas ranked 478th on the latest Fortune 500 list, with $4.9

billion in annual sales. PepsiAmericas makes and distributes Pepsi, Diet Pepsi, Mountain Dew and other brands in 19

states as well as parts of eastern Europe and in the Caribbean. The company has 20,000 employees and 33 plants. By

driving a tougher bargain, the Pohlads stand to receive $66 million more for their shares than offered this spring. PepsiCo

is both a food and a beverage company, also owning snack maker Frito-Lay, maker of Doritos and Fritos, as well as

Tropicana and Quaker Oats.

St. Paul Pioneer Press (Minnesota): August 4, 2009

USA: COCA-COLA ENTERPRISES TO CLOSE KANSAS BOTTLING PLANT Coca-Cola Enterprises is to close its Kansas bottling plant in a bid to cut costs, the company said (10 August). The

Kansas facility, which makes Coca-Cola Classic, Diet Coke, Coke Zero, Sprite and Dr Pepper, will shift its operations to

a site in Lenaxa with the loss of 41 jobs.

www.just-drinks.com

USA: THE ICEE(R) COMPANY LAUNCHES ICED COFFEE BY JAVO BEVERAGE Javo(r) Beverage Company, Inc., a leading provider of premium dispensable coffee and tea-based beverages to the food

service industry, and The ICEE(r) Company, announced that ICEE distribution centers across the country will

immediately add iced coffee to their line-up of industry leading beverage products. The two initial flavors, mocha latte

and caramel latte, are to be offered under the Java Freeze(tm) brand to national accounts and retail foodservice operators

in the U.S., Canada and Mexico along with an array of service and equipment options. The ICEE Company is a

subsidiary of J&J Snack Foods Corporation and is the most highly recognized brand and leader in the frozen carbonated

beverage industry.

GlobeNewswire: August 6, 2009

USA: MIKE'S HARD LEMONADE(TM) NEW PACKAGING DESIGN BY ANTHEM

WORLDWIDE RESULTS IN SALES LIFT Anthem Worldwide, a Schawk Strategic Design Company, whose integrated global network provides innovative

solutions to articulate, unify and manage brand impact to create compelling and consistent brand experiences, announced

the recent release of its new package design for well-known spirits brand Mike's Hard Lemonade(TM). Mike's Hard



Lemonade(TM) is a Canadian-based corporation, with its head office in Vancouver, Canada. Mike's Hard

Lemonade(TM) was launched in Canada in 1996 and is a mixture of lemonade made with real lemon juice and premium

vodka.

Marketwire: August 12, 2009

USA: SOFT DRINK SALES COULD BE HIT BY NEW LEGISLATION The US carbonated soft drinks sector, which is already suffering in the wake of the economic downturn and increased

health consciousness, could be set for further difficulties if two proposed policies are introduced by the Obama

administration. The Center for Science in the Public Interest (CSPI) has launched a campaign to repeal a measure

introduced in 2003 that prevents government sponsored health campaigns from naming specific foods. Meanwhile,

politicians in the US congress have recently discussed raising taxes on soft drinks and alcohol to help pay for Obama's

ambitious healthcare reforms. As one of the few products directly linked with obesity, soft drinks would surely be among

the worst hit segments if government health campaigns were allowed to mention specific products. The 2003 legalisation

outlawing such messages is attributed by the CSPI to lobbying from soft drink firms after a number of state health

campaigns were introduced that encouraged consumers to drink less carbonated soft drinks.


USA: SUGAR GUIDELINES COULD HURT SOFT DRINK FIRMS The American Heart Association's recommendation to cut back dramatically on sugar may be a blow or opportunity for

soft drink makers, who have been accused of helping fuel the US obesity epidemic. Hurt by an ailing economy and

expanding waistlines, consumers have cut back on soft drinks. After years of growth, US carbonated soft drink sales by

volume fell for the first time in 2005, and the decline has accelerated each year since. Volumes fell 3 percent last year,

the biggest drop since at least the early 1980s, Beverage Digest, a US-based industry publication, reported in March. The

AHA's new guidelines say women should eat no more than100 calories of added sugar per day, or six teaspoons (25

grams), while most men should keep it to just 150 calories or nine teaspoons (37.5 grams).That's far below the 22

teaspoons (90 grams) or 355 calories of added sugar consumed by the average American each day, according to a 2004

government survey. It also singled out soft drinks as the top source of ''discretionary'' sugar calories.

Manila Bulletin: August 29, 2009

USA: NITROUS MONSTER FIRST ENERGY DRINK WITH NITROUS OXIDE; NEW PRODUCT

LAUNCHES IN NEW RE-SEALABLE 12 OZ. REXAM Monster Energy - the volume leader in the energy drink category - is launching a new, innovative product called Nitrous

Monster. Nitrous Monster is the first and only energy drink to feature nitrous oxide gas technology. The revolutionary

new drink boasts a rich creamy texture and a smooth drinkable flavor. Nitrous Monster is packaged in the re-sealable 12

oz. Rexam SLEEK(TM) Cap Can(R) with closure technology from Dayton Systems Group (DSG). Nitrous Monster is

available in three varieties: Killer-B, Super Dry and Anti-Gravity. Killer-B contains honey and provides the drinker with

a mega-shot of B vitamins as well as an exotic dose of bee pollen and royal jelly. Super Dry offers a lighter, dry texture

similar to fine Champagne. Anti-Gravity is so potent that drinkers will feel like they can defy gravity. For this important

launch, Monster enlisted longtime partner Rexam to develop a perfect, purpose-built package. Nitrous Monster is the first

brand to utilize the new 12 oz. SLEEK version of the innovative Rexam Cap Can.

PR Newswire: August 5, 2009



USA: PERNOD RICARD UNVEILS ADDED VALUE PACKS Pernod Ricard USA has launched off-premise value added packs (VAP) for the company's core wine and spirit brands

for the next season. Pernod has extended its Absolut 2008 MirrorBall promotion to include a blue Absolut 80 proof

MirrorBall, a red Raspberry, gold Citron and orange Mango MirrorBall, available in 12 packs, the group said .Jameson

Irish Whiskey will be launched in 750ml with two Jameson rocks glasses. Champagne Perrier-Jouët is again offering its

coffret, which includes a 750ml of Perrier Jouët Fleur and two hand-painted champagne flutes along with a Perrier Jouët

Grand Brut and two champagne flute gift set. GH Mumm has launched a Cordon Rouge champagne flute gift pack. The

Glenlivet is offering a gift pack including a 750ml of The Glenlivet 12 Year Old and two, branded rocks glasses. Chivas

Regal has unveiled four value-added ideas, including glasses and a canister, for its 12 Year Old and 18 Year Old, while

Kahlúa is launching value-added packs that include a 750ml of Kahlúa along with a branded glass coffee mug or a mug

and three 50ml bottles of Kahlúa's French Vanilla, Hazelnut and Mocha flavours. The Beefeater gift includes a 750ml of

Beefeater London Dry Gin packaged with two, red-stemmed Beefeater-etched glasses and a 1.75L of Beefeater packaged

with a festive red and silver branded cocktail shaker. Martell Cognac is offering a Martell VSOP value-added gift pack

with two branded snifters. Super-premium Martell XO will be available packed with four leather coasters and Martell

Cordon Bleu will be available packed with four Cognac glasses. Sandeman Port is offering a 750ml of Sandeman Tawny

Port and two port glasses.

www.just-drinks.com

USA: KRYSTAL UNVEILS NEW ENERGY DRINK AIMED AT YOUNG MALES Krystal, the 384-unit, quick-service burger chain, rolled out July 20 a new energy drink geared to appeal to 16-to-24-

year-old males. Called the Krystal Blitz, the beverage is available in lemon-berry flavor and comes frozen or on the rocks

in a 20-ounce cup. Other flavors are under consideration. The on-the-rocks version of the drink sells for $1.99 and the

frozen variety is priced at $2.49.

Nation's Restaurant News: August 10, 2009

CANADA: CORBY DISTILLERIES FY PROFITS FALL Corby Distilleries has reported a slip in full-year profits, but was buoyed in the fourth quarter by Absolut Vodka and

lower advertising and promotion spend. Net profits for the 12 months to the end of June fell by 5% to $30C.4m

($28USm), compared to $31.9m in the previous year, Corby said this week. Profits fell due to one-off charges and

unfavourably currency rates, said the group, which holds the licence for Pernod Ricard wine and spirits brands in

Canada, as well as owning Wiser's Canadian whiskies, Lamb's rum and Polar Ice vodka. Despite the full-year slip,

earnings rose by 24% in the fourth quarter, said Corby, thanks to the contribution of Absolut Vodka - acquired by Pernod

Ricard last year - and also lower marketing spend versus the prior year. Net sales for the full-year rose by 3% to

$152c.6m, and by 1% in the fourth quarter, sources said. But, operating profits for the year fell by 3% to $43C.4m.The

Seagram Coolers brand had a particularly bad year, with retail sales volumes sliding 20% for the 12 months.

just-drinks global news: August 28, 2009



4.2 LATIN AMERICA

BRAZIL: PEPSICO BUYING BRAZILIAN COCONUT WATER MAKER PepsiCo Inc., the Purchase-based beverage and snack food giant, is buying Brazil's largest coconut water company as it

looks to expand its business in one of the world's fastest growing markets. The acquisition of Amacoco Nordeste Ltda.

and Amacoco Sudeste Ltda. also marks another step in PepsiCo's ongoing efforts to capture additional customers by

broadening its beverage portfolio into new categories. PepsiCo's food and beverage lineup already includes 18 different

product lines that each generate more than $1 billion in annual sales. Executives see promise in adding coconut water to a

product mix that also includes soft drinks, Gatorade sports drinks and Tropicana orange juice because coconut water is a

popular beverage in Brazil and other countries. Amacoco makes and sells Kero Coco and Trop Coco, Brazil's top-selling

coconut water brands.

The Journal News (Westchester County, New York): August 13, 2009

BRAZIL: CITRUS BR TO SHOW REALITIES OF ORANGE PROCESSING INDUSTRY Christian Lohbauer, that took over as president of the citrus exporting association Citrus BR, formed by the orange juice

companies Cutrale, Citrovita, Dreyfus and Citrosuco is bound to dialogue with the public and show the sectorial

transparency. Actually the associates to Citrus BR control 80% of the Brazilian juice exports as the market concentrated

over the last 15 years, what naturally raises concerns of a cartel, a suspicion to have a frontal response from Citrus BR.

Another task of Christian Lohbauer is to promote the national consumption of orange juice via incentives. The key point,

however, is to harmonise positions with orange suppliers. Around 30% of the groves are from juice companies, 50% are

supplied by farmers via contracts with pre defined prices, and the remainder is from independent farmers selling in the

spot market.

Estado de Sao Paulo: August 4, 2009

BRAZIL: BRAZIL IS BACK TO THE ORANGE TRADE WAR WITH THE US This week Brazilian representatives next to the WTO are to ask for the opening of a panel to investigate the complain of

Brazilian companies against the US practices on orange juice. Brazil question a methodology that sets a 4,81% anti

dumping margin hindering Brazilian concentrated and frozen orange juice in the US. Christian Lohbauer, president of the

citrus juice exporting association ANESC, says the US is adamant in adopting zeroing over taxation turning difficult the

access to the market. ANESC believes the US is gaining time against Brazilian competition, while dealing with a 25%

drop in the national orange juice consumption. Brazil is the largest orange juices exporter with 1,2mil m tons of frozen

products in 2008, worth $1US,7bil, with 60% of the volume shipped to the European Union, 20% to the US and 10% to

Japan, the most competitive markets worldwide. The overall orange juice exports was 2,05mil m tons. The earnings in

the US were $400USmil in 2008, and should not repeat, both due to the overtax and the drop in the demand. The

concentrated orange juice prices have fallen from $1US,300 to $700US - $900US per m ton.

Valor Economico: August 19, 2009

BRAZIL: BRAZIL GRAPE JUICE PROMOTED WORLDWIDE Brazilian grape juice is beginning to gain international projection. A partnership between the Brazilian Institute of Wine

(Ibravin) and the Brazilian Fruit Institute (Ibraf) gave rise to the Program for Development of the Grape Juice Sector,

which provides for promotional actions until February 2010. The program is going to receive investment of 1.7 million



Brazilian reals (US$ 910,550) and the partnership encompasses factories that produce natural and whole grape juice in

the states of Rio Grande do Sul, Santa Catarina, Paran, Pernambuco and Bahia. The main goal of the project is to

advertise ready-to-drink juices, of higher added value to producers and higher quality standard to consumers, with health

benefits. According to figures supplied by the Ibravin, natural and whole grape juice contains 100% of the fruit, as

opposed to refreshments, which contain from 2% to 10% of grape and the nectars, which contain 20% to 30% of grape in

their formula. Worldwide, promotion of Brazilian grape juice will be done at three international fairs. Asia Fruit

Logistica, due September 2nd to 4th this year, in Hong Kong, China; at Fruit Logistica 2010, from February 3rd to 5th

next year, in Berlin, Germany, and in the next edition of Gulfood, from February 21st to 24th in Dubai, in the United

Arab Emirates. Market prospecting actions will also take place in two countries, Canada and China.

InfoProd: August 30, 2009

COLOMBIA: COCA-COLA FEMSA INVESTS IN COLOMBIA The vice president of corporate affairs at Mexico-based Coca-Cola Femsa, Felipe Marquez, has revealed that the firm

plans to invest $119USmn in Colombia this year claiming that the market is one with 'enormous growth potential'. BMI

agrees; the immaturity of the market makes it a good long-term prospect in Latin America, but this has to be weighed

against the fact that Colombia's economic growth is being heavily impacted by the global downturn and it is expected

that consumption of soft drinks to be hit as consumers rein in spending.


MEXICO: PBG TO DISTRIBUTE ROCKSTAR IN MEXICO The Pepsi Bottling Group (PBG) has signed a multiyear deal with Rockstar Energy Drink, to distribute the Rockstar

brand in Mexico from July 2009. PBG already distributes Rockstar in the US and Canada and the firm has revealed the

move is part of a strategy to diversify into high growth segments. Rockstar is the third best selling energy drink in the US

but will face tough competition in Mexico from of Red Bull, which has established a commanding lead in the Mexican

market, and Hansen Natural's Monster, which launched in the country in January 2009 via a joint venture with local juice

producer Grupo Jumex. The decision by Rockstar and Hansen Natural to focus on Mexico is logical given the country's

geographic proximity and the very high rates of soft drink consumption. The hot climate is a major driver of sales and the

average Mexican drinks three or four servings of CSDs every day. Recently, there have been signs that this very high

consumption rate leaves little room for further growth and that, as consumers become more health conscious,

consumption may start to decline. This trend will impact on PBG, which is responsible for bottling Pepsi products in the

country, but notably has so far had little impact on the energy drinks sector, which has continued to deliver strong growth

rates. The energy drinks market in Mexico is still very immature. Distribution in the country is complicated by the fact

that the main outlet for soft drink sales is convenience stores, the majority of which are still controlled by private

individuals. Currently, Red Bull controls over 90% of the energy drink market but does not have anywhere near

nationwide distribution. The firm's progress is potentially limited by its unusual distribution model - with the firm

generally building relationships with a network of small, independent distributors or, if an independent partner is not

available, setting up its own local warehouse and distribution team. In contrast, Jumex, as one of Mexico's largest juice

producers, has an existing distribution network and good access to the convenience sector. Meanwhile PBG has exclusive

rights to distribute Pepsi products in 23 of the 31 Mexican states and in these regions controls around 18% of carbonated

soft drink market. This clearly puts it in a strong position to bring Rock Star to the market. This strong distribution



platforms of Jumex and PBG may allow Rockstar and Monster, to steal a march on the current market leader, and BMI

expects Red Bull's dominance of the sector to gradually diminish going forward.


MEXICO: COCA-COLA FEMSA, S.A.B DE C.V. HIGHER RAW MATERIAL COSTS TO BOTTLE

UP MARGINS, GOING FORWARD During the quarter, KOF recorded the highest y-o-y volume growth in its Mexico division in more than 3 years. The

growth was primarily driven by the Coca-cola brand and its variants, further supported by robust growth of Jugos Del

Valle, reaching almost 40 mn unit cases for the quarter. In addition, the growth was further supported by the water

business, driven by the acquisition of Agua de Los Angeles and the expansion of jug Water business in Mexico.

Following the strong organic performance and acquisition in the water business, we expect the Mexico division to drive

future revenues. KOF's Latincentro division posted y-o-y double-digit volume growth, driven by sparkling beverages in

Venezuela, the integration of Brisa in Colombia as of 01 June 2009, and Still Beverages in Colombia and Central

America. We expect this growth to extend over the next quarter associated with expansion of the Brisa brand in

Colombia and Guatemala and the still beverage brand; Jugos del Valle, in Columbia. It is expected the Mercosur division

to be driven by Brazil, mostly due to the consolidation of the Remil franchise territory in Brazil and integration of the

Suco Mais juice brand into the Jugos del Valle line of business. Considering the recent increase in sugar prices and our

expected rise in crude oil prices, partially offset by our anticipation of decline in USD denominated cost reflecting our

assumption of depreciation of USD against MXN over the next 2 years, we expect operating margins to decline in FY

2009 and FY 2010.

Research Oracle: August 18, 2009

MEXICO: COCA COLA TO INVEST 10 BLN DLRS IN MEXICO TO PRODUCE FRUIT JUICE Soft drink giant Coca Cola will invest 10 billion U.S. dollars in a plant in Mexico to produce fruit juice, said Mexican

President Felipe Calderon To be built in Tepoztlan, a town close to the capital city of Mexico City, the plant will produce

fruit juice using the Jugos del Valle brand, Calderon said .

Xinhua General News Service: August 20, 2009

4.3 UK/EUROPE

UK: NESTLÉ FORECAST CUT A slowdown in sales of bottled water contributed to Nestlé, the Swiss food giant, cutting full-year growth forecasts. The

maker of Nescafé and KitKat said organic sales rose 3.5pc in the first half, missing analysts' forecasts of a 3.9pc rise, and

below its previous target of "at least approaching 5pc'' growth for the full year. Nestlé said full-year forecasts for an

increase of about 4.1pc are a "good interpretation of our guidance''. Bottled water sales slipped 2.9pc to SFr4.7bn (

pounds 2.6bn) during the first half. Nestlé's brands include San Pellegrino and Vittel. The market as a whole has declined

in Europe and the US because of environmental concerns and shoppers spending less. Revenue from Nestlé's nutrition

business, which makes baby food and diet meals, also suffered in the first half, rising just 1.5pc, although sales picked up

during the period, Nestlé said. The company hopes to improve sales volumes in the second half, after 0.5pc growth in the

first half.

The Daily Telegraph (London): August 13, 2009



UK: CARLSBERG UK TRIALS NEW DRINK FOR WOMEN The drink, named Eve, is currently being trialled for 12 weeks across 50 bars in Manchester, northern England, the

brewer said .The 3.1% abv beverage is made from natural ingredients, Carlsberg said. It is flavoured with either natural

Lychee or Passion Fruit juice and has been developed as "a light alternative to beer, flavoured alcoholic beverages or

wine", with 123 calories per 250ml bottle. The trial is being supported by a GBP500,000 ($829US,000) marketing

campaign across Manchester, which includes sponsorship of the SallyHudson show on Galaxy FM, branding on over 60

taxis and regular coverage in the MEN, Metro and other local media. Feedback from the trial so far has been positive,

according to Carlsberg, and the group said there are plans to launch Eve nationally in the New Year if results continue in

the same vein.

www.just-drinks.com

UK: MAKANA INTRODUCES TWO NEW WINES TO THE UK South African producer, Cape First Wines, announces two new additions to the Makana brand - Makana Brut Blanc de

Blanc NV made from 100% Chardonnay and Makana Rose 2009, made from a blend of Pinotage, Shiraz and Merlot. The

Makana brand is aimed at the independent trade, RRP £7.99 (Blanc de Blanc) and £4.99 - £5.99 (Makana Rose) - Both

lines are available now from Stratford's Wine Agencies.


UK: CRISIS QUENCHES DEMAND FOR PREMIUM DRINKS The era of the $1 million bottle of Diva Premium vodka, triple distilled through diamond and ruby sand, may have ended

with the economic crash, but consumers are only temporarily swapping upscale Grey Goose for cheap Smirnoff vodka,

industry observers believe. What they're less certain of, however, is how long it will take recession-conscious drinkers to

return to more expensive tipples. It is quite literally the billion-dollar question for an industry that has increasingly relied

on consumers "trading up" to higher-priced bottles to fatten its margins over the past decade. All spirits companies have,

to a certain extent, ridden this "premiumization" trend, but few have harnessed it quite as efficiently as Pernod Ricard

(RI). Today three-quarters of the French company's portfolio consists of premium brands, compared to just half, on

average, for the rest of the industry. Premiumization or how to grow margins despite stagnant volumes Premiumization,

the spirits companies believed, was the magic wand that would allow them to improve their margins even as volume

growth slowed in Western Europe and the U.S. And for years the magic worked and the firms successfully convinced a

small proportion of their customers to transition from standard to more expensive liquor, partly thanks to clever

marketing. In the tequila segment, for instance, the percentage of bottles made from 100% agave -- which retail at twice

the price of bottles made with a lower percentage -- more than doubled from 2002 to 2008.Meanwhile, in emerging

markets, where what one drinks is highly correlated to one's achievements and aspirations, premiumization also gathered

steam as massive economic growth led to an explosion in the middle class.

MarketWatch: August 27, 2009

UK: COCA-COLA HBC S.A. HALF YEARLY REPORT Restructuring costs incurred during the first half of 2009 amounted to EUR18.8 million before tax and relate primarily to

the Company's operations in Ireland (EUR8.7 million), Austria (EUR4.2 million), Italy - including Socib S.p.A. -

(EUR2.8 million), Poland, Romania, Russia and Ukraine. Coca-Cola Hellenic is one of the world's largest bottlers of



products of The Coca-Cola Company with sales of more than 2 billion unit cases. It has broad geographic reach with

operations in 28 countries serving a population of approximately 560 million people. Coca-Cola Hellenic offers a diverse

range of ready-to-drink non-alcoholic beverages in the sparkling, juice, water, sport, energy, tea and coffee categories.

Coca-Cola Hellenic is committed to promoting sustainable development in order to create value for its business and for

society. This includes providing products that meet the beverage needs of consumers, fostering an open and inclusive

work environment, conducting our business in ways that protect and preserve the environment and contribute to the

socio-economic development of our local communities.

London Stock Exchange Aggregated Regulatory News Service (ARNS): August 6, 2009

EUROPE: PERNOD RICARD CONTINUES TO REDUCE ITS DEBT WITH THE DISPOSAL OF

TIA MARIA TO ILLVA SARONNO FOR 125 MILLION Pernod Ricard announces the disposal of Tia Maria(TM) coffee liqueur to Illva Saronno for a cash consideration of

(EURO) 125 million on a cash free / debt free basis. The sale of Tia Maria together with other disposals completed since

the acquisition of Vin & Sprit in July 2008 enables Pernod Ricard to continue its debt reduction program having achieved

disposals totalling in excess of (EURO) 700 million.

Food Weekly Focus: August 13, 2009

IRELAND: SUPERVALU TO MAKE FURTHER PRICE CUTS Irish retailer SuperValu is to make a EUR30m ($42US.6m) investment in price cuts on around 1,000 products across the

country. Starting this week, prices will be cuts across a range of brands and products including Nescafe Gold Blend,

broccoli and Squeez orange juice. The retailer said the cuts are being delivered without "sacrificing Irish job’s and will

see the value of SuperValu's price reductions and offers top EUR230m in 2009.

www.just-food.com

BELARUS: BELGOSPISCHEPROM PROPOSES TO DEVELOP LICENSED PRODUCTION Belgospischeprom is planning to develop the licensed production of a number of famous brands in Belarus, according to

company Chairman. According to sources the production of Kraft's Alpen Gold confectionery brand at the Spartak

factory, Sadochek branded juice at the Minsk City Dairy #1, Calve mayonnaise at the Minsk Margarine Plant, Nemiroff

vodka at the Grodno Distillery, and Dirol chewing gum at confectionery factories. Joint production of sunflower oil

Zolotaya Semechka has already started with the Russian company Yug Rusi. Belgospischeprom is also planning to

develop production of licensed brandy, whiskey, grape wine, and new trademarks of cigarettes. Ivan Danchenko thinks

that local enterprises should carry out rebranding of several trademarks and strengthen Belarusian brands.

Belorusskie Novosti: August 3, 2009

BELARUS: STARODOROZHSKY FRUIT, VEGETABLE PLANT TO PRODUCE JUICE SPADAR Starodorozhsky fruit and vegetable plant based in the Minsk region has put in operation a new production shop within the

first stage of reconstruction of facilities producing canned goods. Equipment of the Bulgarian company Index-6 was

installed at the enterprise. Capacity of the juice-producing facility will reach 2,000 bottles per hour. In general, the

enterprise plans to produce up to 5.5-6mn standard bottles of juice per year. Juice will be filled in 0.75-litre glass bottles

with a twist-off lid. Goods will be available in retail outlets under the trademark Spadar. Juice will be made of local raw

materials, as well as of imported concentrated products. The company has already invested BYR 23bn (EUR 5.63mn



USD 8mn) in the project implementation. Pilot lots of juice and fruit butter have already been produced. Large-scale

production is to begin in three months. The first stage of modernisation also included reconstruction of a boiler-room,

warehouse premises and administration and living quarters. Starodorozhsky fruit and vegetable plant intends to conduct

the second stage of modernisation of the enterprise in the future. It envisages creation of a facility producing canned

goods and frozen berries and vegetables.

AgroBel: August 14, 2009

BELARUS: OUTPUT OF VODKA AND COGNAC INCREASES IN H1 2009 The Belarusian Statistics Committee has informed that output of vodka and distillery products advanced 6.5%, to

7.052mn decilitres through January-June 2009, against the same period in 2008. Output of cognac rose 48.3%, to

129,000 decilitres, sparkling wine by 7.5%, to 561,000 decilitres. Output of other kinds of alcoholic goods declined in H1

2009. Belarusian enterprises manufactured 6,000 decilitres of brandy (down 79,3%), 907,000 decilitres of grape juice

(down 6%), 8.878mn decilitres of fruit wine (down 11.9%), and 1.347mn decilitres of low alcoholic drinks (down 4.6%).


BELARUS: VEYNYANSKY RODNIK INTRODUCES SEVERAL NOVELTIES The plant Veynyansky Rodnik based in the Mogilev region has introduced a new line of non-alcoholic juice-containing

drinks under the trademark Fruit-Mix. The assortment includes four tastes: orange, orange and mango, raspberry and red

currant, and multi fruits. Besides, the enterprise started manufacturing the energy non-alcoholic drink called Guarano. It

contains natural coffee extract and tonic 'guarano'. The enterprise has also produced a pilot lot of drinking water in 19-

litre bottles. Commodity output of Veynyansky Rodnik totalled BYR 7.3bn (EUR 1.80mn USD 2.56mn) in compatible

prices through January-July 2009. Goods of the enterprise are mainly supplied to the local market. A part of products

(mineral water and non-alcoholic drinks) are exported to Russia.


CZECH: THE CONSUMPTION OF COCA-COLA DECREASED IN THE CZECH REPUBLIC Coca-Cola Hellenic Bottling Company CR, drinks company, decreased its net profit by nearly 50% to CEK 209.4 mil for

2008 compared to CEK 410.7 mil for 2007. The firm's proceeds decreased to CEK 6.540 bil in 2008 compared to CEK

6.896 bil in 2007. The firm is the authorized producer and distributor of Coca-Cola drinks in the Czech Republic.

Access Czech Republic Business Bulletin: August 24, 2009

FINLAND: SALES OF BEER FELL BY 0.1% IN JANUARY-JUNE 2009 According to the Finnish Federation of the Brewing and Soft Drink Industry, beverage sales fell by 1.6% in Finland in

the first half of 2009 from the corresponding period in 2008, totalling 402.7mn litres. Sales of beer fell by 0.1% to

203.1mn litres, sales of soft drinks fell by 1.4% to 134.8mn litres, and sales of mineral water by 12.1% to 29.1mn litres.

Cider sales fell by 14.5% to 16.4mn litres. Sales of long drinks increased by 13.2% to 19.4mn litres.

Press Release: August 28, 2009

GERMANY: GERMAN BEER SALES SINK TO ALL-TIME LOW; AGING, CHANGING HEALTH

HABITS, EVEN WEATHER PLAY A ROLE Rainy weather, smoking bans, an aging population and a preference for more health-conscious fare have put a stout dent



in the sale of beer in Germany, leaving the nation's brewers ailing, a report said .Sales of beer -- a veritable staple in

Germany for centuries -- dropped from January to June to their lowest level since the government's Federal Statistics

Office began keeping tabs on such figures in 1991.The office said that German breweries and beer storage facilities sold

some 1.3 billion gallons (4.9 billion liters) of beer in the first half of 2009. That is nearly 60 billion gallons (230 million

liters), or about 4.5 percent, less than in the first six months of 2008.Beer proponents blamed fickle weather for a summer

that has been more wet than sunny. Beyond regular beer, an even steeper decline was seen in the sales of beer mixed with

lemonade, soda or fruit juices, which fell 7.4 percent to 210 million liters (56 million gallons) compared to last year.

German beer consumption has been steadily declining over the past decade, something often blamed on higher prices

because of increased production costs, as well as a more health-conscious public. Numerous smoking bans have also

been implemented across the country, forcing beer-swilling patrons to head outside for a smoke instead of staying at the

table and ordering another round.

Grand Rapid Press (Michigan): August 2, 2009

HUNGARY: NIELSEN'S REPORT ON SALES OF FRUIT AND VEGETABLE JUICE According to data published by the market research company Nielsen, retailers recorded a turnover of some HUF 45bn

(EUR 165.47mn USD 234.22mn) from sales of fruit and vegetable juice over the 12-month period ending in May 2009.

This represents a 4% decrease on a year-to-year basis. In volume terms, fruit and vegetable juice sales fell by 7% over

the monitored period. Own-label products had a 34% market share in volume terms. Experts forecast that fruit juice sales

may decline by between 8% and 15% in 2009.

Napi Online: August 12, 2009

LATVIA: SPILVA BEGINS PRODUCING JUICE, NECTAR The Latvian food processor, Spilva, has begun producing juices and nectars. At present, the company produces apple,

orange, and tomato juice as well as plum, apple-currant, and multifruit nectars. Spilva plans to expand its assortment of

juices soon.

DELFI.lv: August 5, 2009

LATVIA: 2008 PROFIT OF COCA-COLA HBC LATVIA DOWN 18 PCT; SALES REACH EUR 31

MLN The distributor of Coca-Cola Company products Coca-Cola HBC Latvia last year generated 21.962 million lats (EUR 31

mln) in sales, down 2 percent from 2007, while its profit declined 18 percent to 831,100 lats, shows the company's report

published in the Latvian business register. The company's management report said that the decline of sales is explained

with the unfavorable economic situation in the country and Europe in general, adding that the results are satisfactory. The

company said that after the end of the reporting period -- in February 2009 -- Coca-Cola HBC Latvia owner, CC

Beverages Holdings II B.V, paid 2.809 million lats in the company's share capital to increase current assets. In the same

month the company settled its financial leasing liabilities and purchased assets which were rented earlier. To reduce

risks, Coca-Cola HBC Latvia has introduced a credit policy, selling goods with post payment only to customers with

good credit history and within credit limits, said the report. In 2009 the company's aim is to adapt to the new market

conditions and increase sales of beverages. In 2007 Coca-Cola HBC Latvia generated 22.487 million lats in turnover and

earned a 1.012 lats profit.

Baltic News Service: August 27, 2009



NORWAY: WATER SALES UP BY 2.3%, SOFT DRINK SALES UP BY 3.1% IN JULY In July 2009, sales of bottled water on the Norwegian market rose by 2.3% compared with July 2008. Sales of carbonated

water rose by 6.6%. Sales of flavoured water dropped by 12.9%.Sales of soft drinks rose by 3.1%. Sales of soft drinks

containing natural sugar rose by 10%, whereas sales of light soft drinks dropped by 6.7%.This is shown in statistics from

trade association Bryggeri- og Drikkevareforeningen.

Handelsbladet FK: August 19, 2009

POLAND: SOFT DRINK MARKET PREDICTED TO GROW TO EUR 4.79BN IN 2009 Euromonitor International (EI) predicts that the value of the Polish soft drink sector will reach almost PLN 20bn (EUR

4.79bn USD 6.75bn) in 2009, up from some PLN 18.7bn in 2008. Bottled water sales will grow from PLN 4.6bn to PLN

4.9bn, according to EI, while fruit juice sales will go up by almost 6%, year on year, to PLN 4.9bn. During the first six

months of 2009, reports Nielsen, Poland's juice sales rose by 28% when compared to the corresponding time of 2008,

which was achieved thanks to, among other things, a growing popularity of healthy products.


POLAND: SOFT DRINKS SELL WELL IN POLAND Poles will spend almost ZL20bn on soft drinks in 2009. This means that the spending in that area will grow by almost 7

percent, predicts research company Euromonitor International. Analysts of Euromonitor expect Poles' expenditures on

bottled water to rise from ZL4.6bn to ZL4.9bn y/y. The largest water producers confirm the trend: Zywiec Zdroj projects

a 13-14 growth in revenues. Polskie Zdroje, producer of Poland's second most popular Cisowianka brand, predicts that

sales will soar by 40 percent. Spending on juices and other soft drinks should go up by almost 6 percent, to ZL4.9bn.

Joanna Bancerowska, spokesperson of Agros Nova, says that 100-percent fruit juices have noted a growing popularity of

late (their sales surged by 28 percent y/y in H1 of 2009). Apart from healthy living products, so-called functional drinks

are in greater demand. According to Euromonitor, Poles will spend some ZL730m on such beverages, 11 percent more

than in 2008.

Polish News Bulletin: August 18, 2009

SWEDEN: KIVIKS MUSTERI AND KM PRODUKTION TO MERGE The Swedish juice manufacturer Kiviks Musteri and KM Produktion, which are both part of Kivik Holding, are to merge.

The merger is to reduce costs and increase efficiency.


SWEDEN: COCA-COLA LAUNCHES MER IN 1-LITRE CARTONS Coca-Cola is to launch the still beverage Mer in 1-litre cartons. The move is a bid to convince consumers to buy the

beverage to drink at home, both as an accompaniment to meals or while watching the TV. The first two flavours to be

launched in the new packaging will be orange and pear.




TURKEY: ANADOLU EFES TO RESTRUCTURE ETAP AS JOINT VENTURE COMPANY One of the country's leading brewers and producers of soft drinks, Anadolu Efes, informs in a filing with the Istanbul

Stock Exchange the preconditions regarding the restructuring of fruit juice firm Etap as a joint venture company were

met and it applied to the competition board for approval. The statement details that Anadolu Efes acquired a 33.3% of

Etap from Etap Holding for a consideration of USD 1.27mn. As part of the preconditions, UK-based Burlington LLP and

Etap Holding each will hold 33.3% stakes in Etap.

Turkey Sectors and Companies Today: August 25, 2009

RUSSIA: WBD FOODS SWINGS TO RAS NET PROFIT IN JANUARY-JUNE Russia's largest dairy product and fruit juice manufacturer Wimm- Bill-Dann Foods (WBD) posted a net profit of 1.486

billion rubles in January-June against a net loss of 399.008 million rubles in the same period of last year, as calculated

under Russian Accounting Standards (RAS), the company said in a report seen by PRIME-TASS recently. Revenue fell

13.3% on the year to 24.029 billion rubles in the period, while gross profit rose 23.1% to 5.263 billion rubles, and sales

profit soared to 2.586 billion rubles from 64.590 million rubles in January-June 2008.Founded in 1992, WBD is

composed of 37 companies in Russia and the Commonwealth of Independent States (CIS). WBD has a diversified brand

portfolio with over 1,000 types of dairy products and over 150 types of juices, nectars, and soft drinks

Prime-Tass English-language Business Newswire: August 14, 2009

RUSSIA: FOREIGN COMPANIES CONTROL 40% OF JUICE MARKET Nielsen reports average price segment and economy segment to account for approximately 70% of the juice market in

Russia. Average price segment is expected to continue growing as well as private brands currently accounting for 4.5%

in volume. Lebedyansky occupies about one third of the market, Multon 22%, Nidan 18%, Wimm-Bill-Dann 15%.

Foreign companies account for more than 40% of the market. Within several years juice production is expected to be

controlled by two companies only. In 2009 juice market is forecast to total RUB 93.4bn (EUR 2.09bn USD 3bn).

Average price is to grow to RUB 44.3 per litre.

Watermarket: August 5, 2009

RUSSIA: RAS NET PROFIT OF LEBEDYANSKY JUICE MAKER DROPS 84% Y/Y IN H1 RAS net profit of Lebedyansky juice maker decreased by 84% y/y to RUB 156mn in H1, the company said in an

announcement. Company's revenues went down by 23.2% y/y to RUB 12bn in H1. Lebedyansky produces juices under

brands Ya, Tonus, Fruktovy Sad; refreshing juice drinks under brand Frustyle; Edo ice tea and a wide range of

FrutoNyanya baby juices. It currently ranks among Russia 's four largest juice producers along with Will-Bill-Dann,

Nidan and Multon. As reported earlier, PepsiCo acquired 75.53% stake in Lebedyansky for USD 1.4bn, at that excluding

Lebedyansky baby food and mineral water business from the acquisition.

Russia Today: August 20, 2009

RUSSIA: SABMILLER LAUNCHES GROLSCH IN RUSSIA In Russia Grolsch will be produced in a 500ml can and twist off bottle whilst the original swing-top bottle will continue

to be imported from the Netherlands. SABMiller Russia, a subsidiary of world-leading brewer SABMiller, is to begin

local production of Grolsch, making the brand accessible to a wider range of consumers.

www.foodingredientsfirst.com



KAZAKHSTAN: CARBONATED DRINKS SALES TO START GROWING IN 2011 According to the company Tetra Pak, drinking water occupied the largest share in soft drinks sales volume in Kazakhstan

in 2008 (738.6mn litres). Carbonated beverages accounted for 490.1mn litres, nectars 195mn litres, iced tea 157.5mn

litres, juice drinks 114mn litres, juices 16.2mn litres, energy drinks 4.7mn litres. According to Nielsen, the most

promising segments are juice non-carbonated drinks and iced tea. The segment of non-alcoholic carbonated beverages,

according to Tetra Pak, shrank by 2.5% in 2008 against 2007. About 65% of this segment fall at the trademarks Pepsi and

Coca-Cola. The share of traditional lemonade stands at 15-20%. It is produced by Kazakhstan-based Libella Bottlers,

Obis, brewing plants, including Pervy Pivovarenny Zavod (Brewing Plant #1) in Almaty. According to market insiders,

the niche of lemonade is not saturated. In 2009-2010, analysts of Tetra Pak expect further decline in carbonated drinks

sales in Kazakhstan. After that, demand will start growing. In 2012, the market will exceed the level of 2008.

Expert Kazakhstan: August 24, 2009

UKRAINE: ERLAN AND AVI MAY START PRODUCING ICED TEA DILMAH The juice manufacturer Erlan and the group of enterprises AVI may start producing iced tea Dilmah. The project is

negotiated. Tea Dilmah made in Ukraine is planned to be sold not only in the local but also in foreign markets. At

present, AVI manufactures iced tea under own trademark Top Tea, as well as Nestea by the order of Coca-Cola

Beverages Ukraine. Erlan launched its iced tea trademark Ice Tea in summer 2008.

EIzvestia: August 20, 2009

4.4 ASIA PACIFIC

AUSTRALIA: COCA-COLA AMATIL EXPECTS HIGH SINGLE DIGIT GROWTH IN 2ND HALF Coca-Cola Amatil Ltd (CCA) has maintained its forecast of high single-digit earnings and profit growth for the second

half of 2009, after lifting first half profit and increasing dividends. Australia's biggest soft-drink maker posted a net

profit of $189.8 million for its first half to June 30, up 10.4 per cent on same period last year, helped by favourable

weather.

AAP Newsfeed: August 13, 2009

AUSTRALIA: LINFOX THE BIG CHEESE WITH $2B DEAL Linfox Logistics and National Foods have signed one of Australia's biggest food and beverage deals that will generate

300 jobs -- more than a third in Melbourne. The $2 billion arrangement will run for 10 years and is the biggest yet for the

Fox family enterprise which is spending more than $160 million, including a new warehouse in Laverton and a 140-

strong B-double fleet to service the deal.

Herald Sun (Australia): August 5, 2009

NEW ZEALAND: SUNTORY'S FRUCOR GETS SIMPLY SQUEEZED BUY GREEN LIGHT Frucor Beverages has received clearance from the authorities in New Zealand to proceed with its planned purchase of

Simply Squeezed Holdings in the country. The transaction, announced early last month, was okayed by the NewZealand

Commerce Commission (25 August). Frucor is a subsidiary of Japanese drinks group Suntory Holdings, and is the



second largest supplier of non-alcoholic beverages in New Zealand behind Coca-Cola Amatil. The company owns and

manufactures the Just Juice, Fresh Up, Arano, Joo-C, Citrus Tree, McCoy and Twist fruit beverage brands. Simply

Squeezed owns or manufactures the Simply Squeezed, Allganics, Supreme Country Style and Bay Harvest brands. Last

month, the Commerce Commission said it was looking to prosecute Simply Squeezed for issuing alleged misleading

information in a television advert for Simply Squeezed Chilled Orange Juice, which ran between March and May last

year.

www.just-drinks.com

CHINA: SHUAIYI INTERNATIONAL ANNOUNCES PLAN TO LAUNCH A NEW PRODUCT:

CORDYCEPS-CEREAL BEVERAGE Shuaiyi International New Resources Development Inc. a leading nutraceutical company focusing on the advanced

technology related to the development of engineered "Cordyceps Militaris" in China, announces that it plans to launch a

new product -- Cordyceps-Cereal Beverage. The new product will be on trial manufacturing and marketing in

Heilongjiang Province in China in the fourth quarter of 2009. It will be officially launched into the market in the early of

2010. Shuaiyi applied four manufacturing-related patents of Cordyceps-Cereal Beverage to the State Intellectual Property

Office of China on April 25, 2008 and these applications are currently pending. As the fifth-generation drink that follows

the carbonated soft drinks, water, tea, and juice drink, we believe this new beverage is an organic integration of our

engineered Cordyceps Militaris and Cereal with the function of anti-fatigue, anti-ageing, improving immune system and

assisting memory improvement. It is widely believed in China that Cordyceps Militaris contains 19 amino acids, 17

microelement, and is rich in selenium, zinc, calcium, iron, potassium and phosphorus.

PR Newswir: August 19, 2009

CHINA: COCA-COLA EXPANDS AS HUIYUAN CONSIDERS ITS OPTIONS In partnership with local bottler COFCO Coca-Cola Beverages, US soft drinks giant The Coca-Cola Company (TCCC)

has commenced construction at its 39th Chinese bottling facility, a plant in Inner Mongolia. Following hot on the heels of

the company's 37th and 38th openings, in Jiangsu Province and Urumqi respectively, the opening reasserts TCCC's

commitment to Chinese growth even after the much-publicised failure of its $2US.4bn attempt to land juice major

Huiyuan Juice Group. Looking to maximise opportunities in a market in which BMI is forecasting total sales growth of

44.3% to 2013, TCCC unveiled a $2USbn three-year investment plan for China in early 2009. The plan, which includes

research and development (R&D), capacity expansion and increased marketing, underlined the US firm's commitment to

China after it was left frustrated by the competition commission's rejection of its Huiyuan bid. That fruit juice - a

subsector that is forecast to outstrip general soft drinks sector growth - is a primary focus of this planned investment

further reiterates TCCC's commitment to local growth. With a fruit juice market share of 42%, compared to Coca-Cola's

10-20%, Huiyuan would have turned TCCC into the segment market leader and in turn given it dominance of the overall

soft drinks market ( BMI estimates Coca-Cola's carbonates market share at 50%). However, with these figures raising

competition concerns (notwithstanding the notion that Beijing did not want a flagship domestic brand falling into

international hands), TCCC has instead decided to go it alone, a massive marketing investment in its Minute Maid juice

brand highlighting its intention to challenge Huiyuan if it cannot partner it. TCCC's Minute Maid investment is unlikely

to give it fruit juice dominance and yet the company's wider investment package is certain to help build its overall market

share. In the last three months alone, two new manufacturing facilities have been opened, as well as a $90USmn

Shanghai R&D centre, while work has begun on a further bottling plant. Additional investments in distribution and



marketing should ensure that Coca-Cola again achieves double-digit sales growth in 2009, in spite of the impact the

economic slowdown has had on consumer confidence and discretionary spending.


CHINA: COCA-COLA, PEPSICO, HUIYUAN JUICE AND TSINGTAO NAMED AS TOP WATER

POLLUTERS IN BEIJING A list recently issued by the Beijing Development and Reform Commission, an economic planning agency, names the 12

main factories believed to be causing major water pollution in China's capital as well as the 15 companies using the most

energy. The commission will step up supervision for the 27 listed factories and has asked them to submit plans to reduce

energy use and pollution emissions. The food and beverage companies listed as water polluters were: PepsiCo-Beijing,

Coca-Cola-Beijing, the Tsingtao brewery in Beijing, top juice maker Huiyuan and several major Chinese dairy

producers.

FLEXNEWS: August 20, 2009

HONG KONG: HUIYUAN JUICE GROUP ISSUES H1 PROFITS WARNING Huiyuan Juice Group, China's largest juice firm, has warned that profits for the first half of 2009 are likely to fall

significantly. Uncertainty surrounding Coca-Cola Co's attempt to buy the juice firm led to a "significance decrease in

sales" during the six months to the end of June, Huiyuan said . It warned that it is likely to report operating losses for the

half-year, compared to the same period of 2008.Other factors that have damaged the group's performance include

restructuring initiatives. Last year, Coca-Cola Co agreed to acquire Huiyuan for $2US.4bn, but China's Ministry of

Commerce blocked the deal in March this year due to competition concerns. Hong-Kong-based Huiyuan, which reported

a 6% sales rise in 2008, is China's largest juice firm with a 42% market share.

www.just-drinks.com

INDIA: ORGANIC TEA Healthy drinks True Organix launches Ceylon Organic Tea, which uses organic methods of growing, harvesting and

packing. Available in variants like Black, Green, English breakfast and more, the products start from Rs80 onwards.

Economic Times: August 20, 2009

INDIA: DRINKS INDUSTRY GROWTH FUELS SUSTAINABILITY ROW IN INDIA The drinks industry, however, argues that it is building reliable ingredient supply systems, benefiting consumers and

farmers, while also being well supported by the Government. It does not foresee the problems suggested by

environmentalists. Maybe the only area where these two sides agree is that there has been a phenomenal rise in demand

for processed fruit juices in India. According to the Federation of Indian Chambers of Commerce and Industry (FICCI),

in the last five years the national sale of packed juices has grown by 40% each year and this has left drinks companies

struggling to secure local ingredient supplies. Judging by production statistics it is difficult to comprehend this shortage.

With 57m tonnes of annual production (2007, UN Food and Agriculture Organisation (FAO) figures), India is the second

largest producer of fruits after China, and its diverse agro-climatic zones support production of fruits including mango,

banana, apple, orange, grape, guava and pomegranate. However, traditionally-cultivated varieties in the country are

unsuitable for processing either due to seed sizes, skin thickness, fibre content, acidity, sweetness or colour. For orange

and apple juices priced at around $1US.5 per litre in India, companies prefer to import concentrates from Brazil, the US,



Israel and China after paying 30% import duty. However for mango - by far the most popular fruit drink in India - local

producers are the major procurement base and account for 57% of the world's production. However, among numerous

local varietals only Totapuri, Alphonso and Kesar are good for processing and a whole year's supply has to be procured

in the months of June and July. To deal with this sudden increase in demand, big processing companies are bringing in

modern western techniques such as contract farming to boost their procurements and supplies.

www.just-drinks.com

INDIA: PEPSI TO TAKE NIMBOOZ TO SOUTH & EAST Pepsico, the soft drinks major, is entering the South and East Indian markets by the end of Aug 2009 by ramping up the

distribution of Nimbooz. According to the company, Nimbooz has done quite well in North India because of the heat.

Pepsico has launched the product in South Indian markets, including Tamil Nadu and Karnataka and is planning to

follow suit in Kerala and West Bengal in Aug 2009. Nimbooz is already available in India's Western region. The

Company says that Nimbooz will be available across the country by Sep. 2009.

Economic Times: August 15, 2009

INDIA: BRAND CALCULUS TO INVEST IN MORE BOOSTER JUICE OUTLETS IN INDIAN

METROS Brand Calculus is a Quick Service Restaurant (QSR) franchising company and the India master franchisee for Booster

Juice. It will focus on launching Booster Juice outlets in the metro cities in the first phase of expansion in India. The

investment per store ranges from Rs 20 lakh for a kiosk to Rs 35- 40 lakh for a stand alone / inline store. Booster Juice

launched its first store at Select Citywalk in Delhi in mid-Aug 2008 and in early 2009 two stores were added in

Bangalore at HomeStop Magrath Road and the Total Mall on Old Airport Road. The second quarter of 2009 saw store

launches at Garuda Mall and Forum Value Mall at Whitefield in Bangalore. The response has been very encouraging at

all stores and we are witnessing a high degree of repeat customers. We feel that this is indicative of the response that the

brand will receive in other major markets too, Anoop Sequeira, CEO, Brand Calculus told F&B News in an email

interaction.

TendersInfo: August 10, 2009

INDIA: INDIAN ALCOHOLIC BEVERAGES INDUSTRY DEMANDS TAX CUT ON LIQUOR Indian alcoholic beverages industry has demanded tax cut on liquor. Alcoholic beverages companies and their

associations said that Indian alcoholic beverages companies are already reeling under economic slow down and it is the

high time to rationalize of duty structure for the sustenance of the industry. The biggest challenge before the Indian

alcoholic beverages industry is the multiplicity of taxes and lack of uniformity in the laws and regulations of different

states. The taxation structure of different states is of different types which has made business very difficult for us. Every

state has its own tax regime that makes an obstacle to the growth of Indian alcoholic beverage industry.

www.FoodBizDaily.com

JAPAN: JAPAN'S MEIJI SEIKA, POKKA TO INTRODUCE COCOA-COFFEE DRINK Japan's Meiji Seika Kaisha Ltd. and Pokka Corp. said that they will launch a jointly developed cocoa-coffee beverage

next month. The CocoPresso drink was created by tapping the Meiji Holdings Co. unit's know-how in the cocoa business

and Pokka's expertise in coffee operations. Pokka will handle production while sales and promotion will mainly be



executed by Meiji. With a suggested retail price of 120 yen (US$1.27), the 190-gram cans will be introduced Sept. 7

through Pokka's roughly 90,000 vending machines across Japan as well as through convenience stores and other

channels. The firms are targeting 7 billion yen in retail sales annually. Since forming a partnership in January 2008, the

pair have co-developed 15 products, including cocoa drinks and snacks, which have generated total sales of about 6

billion yen. Pokka reached a basic agreement on a partnership with Sapporo Holdings Ltd.

Asia Pulse: August 21, 2009

JAPAN: THE CONCLUSION OF A DISTRIBUTION AGREEMENT IN JAPAN MARKET WITH

DOEHLER, THE NO.1 BIGGEST JUICE COMPOUND MANUFACTURER/SUPPLIER IN THE

WORLD Marubeni Corporation (hereinafter called 'Marubeni') has concluded a sales distribution agreement in Japanese market

with Doehler group (hereinafter called ' Doehler') as to distribute the fruit juice concentrates, juice compounds and fruits

flavors which are produced at Doehlers' facilities in Europe, North America, South America and Asia for Japanese

customers. Marubeni aims to establish the stable supply source for the safe juice ingredients to meet the high quality

demand from Japanese consumers. In the mid-term management plan 'SG2009', distribution & trading field is a key point

and, as a part of the strategy, it is very important to strengthen the relationship with juice ingredient suppliers and

enhance the capability of product development. Doehler group handles approximate 500,000 tons of fruit juice

concentrated products annually which is 1.5 times of total Japanese import amount and produces various juice

concentrates including apple, citrus, berries and tropical compounds in 12 countries such as Germany, Netherland,

Poland, Turkey, USA, Brazil and China. Doehler also owns the Research & Development centers in 6 countries and

develops the recipe and applications in the field of non-alcohol beverages including juices, carbonated drinks and milk

related drinks as well as the alcohol beverages. Based on the sales distribution agreement, Marubeni will seek the

opportunities with Doehler to supply ingredients and compounds to the beverage brand owners in Asia and Oceania

regions.

Targeted News Service: August 26, 2009

JAPAN: SAPPORO MOVES TO BOOST SOFT DRINK BUSINESS Japanese beer maker Sapporo Holdings Ltd. has agreed to buy into unlisted soft drink company Pokka Corp. for up to 13

billion yen ($135.6 million), boosting its presence in the lucrative nonalcoholic drinks market as beer sales stagnate. The

deal is the latest in a wave of alliances in the Japanese food and beverage industry, as companies seek to mitigate the

effects of a weak economy and a shrinking domestic customer base.

www.wsj.com

JAPAN: KIRIN, ASAHI TAKE RIVALRY INTO NO-ALCOHOL ARENA Something is brewing in Japan's shrinking beer market: beer-flavored no-alcohol soft drinks - so-called fourth beers - that

are becoming a new competitive segment, following on the heels of "third beers." In April, Kirin Brewery Co. launched

what it claims is the world's first truly "0.00% alcohol" beer, Kirin Free. Having recognized that its longtime arch-rival's

new product had aroused latent demand for alcohol-free beer, Asahi Breweries Ltd. quickly followed suit. Last month, it

announced its decision to release Asahi Point-Zero, a beery beverage with 0% alcohol from September.




SOUTH KOREA: LOTTE HITS BELOW BELT TO SCORE INSTANT SUCCESS At first, soju makers were careful to go light with their alcohol content. But after gradually dieting the domestic hard

liquor way below the 20-percent level, companies are now willing to lighten up even more to qualify for airtime. Current

broadcasting law bans commercials for beverages with an alcohol content higher than 17 percent from being aired by the

three main terrestrial broadcasters, so the most obvious solution for liquor makers is to hit just below the legal limit.

Leading the way, Lotte Liquor BG is showing how the strategic positioning is done. The country's second-largest

manufacturer of distilled and colorless liquor is in the final stages of rolling out its latest and lightest version of

Cheoumcheorum, a popular soju brand. And its alcohol content, according to industry sources, is optimized at 16.8

percent. This is the least amount of alcohol content any of the country's top soju brands currently carry. The market's No.

1 player Jinro's J contains 18.5 percent alcohol. Cheoumcheorum's weak content will be light enough to earn commercial

time on the most popularly watched television channels after 10 p.m., but critics view Lotte Liquor BG's strategy with

skepticism. They point out that allowing soju brands to air flashy television ads is socially irresponsible as the full-

fledged promotion could encourage drinking among minors.

Korea Times: August 10, 2009

MALAYSIA: FMCG ACQUISITIONS AND CONSOLIDATION A series of corporate exercises and promises of further rationalisation of operations in a tough global climate has piqued

market interest in what the locally listed fast-moving consumer goods (FMCG) giants will do next. Recent developments

at Carlsberg Brewery Malaysia Bhd and Fraser & Neave Holdings Bhd (F&N) have raised questions about the plans of

their peers Guinness Anchor Bhd (GAB) and Nestlé (M) Bhd, for example. While most of the abovementioned

companies have been open about always being on the lookout for acquisition opportunities or venturing into countries

with a lower cost base, it should be noted that these exercises must be vetted by their parent companies. But in some

cases, such as the brewery industry, the direction in which they are headed is clear.

The Edge Malaysia: August 10, 2009

PHILIPPINE: COCA-COLA SET TO INVEST $1 B IN RP EXPANSION The Coca Cola Corp., the world's largest beverage company, will venture into a $1-billion expansion in the Philippines

in the next five years. With the growth plans of the giant soft drink company, President Arroyo said Coca-Cola

becomes the latest member of the billion-dollar-club of investors in the Philippines. Mrs. Arroyo had earlier met with

executives of Coca Cola Corp. as well as other business tycoons and financial leaders at the Waldorf Astoria while

visiting New York City, the Big Apple. She is expected to leave the Big Apple and return to Manila. This morning we

met with Coca-Cola executives who had just bought back their plant a couple of years ago with $100 million. But they

announced their expansion plan that will total, including what they put in since they bought the firm back and what they

will put into the next few years, $1 billion, she said in her remarks during an assembly of Filipino community leaders at

the Sheraton Hotel in Newark. Press Secretary Cerge Remonde said the expansion of the Atlanta-based Coca-Cola

Corp. includes the construction of a new soft drink plant as well as the improvement of distribution networks in five

years. As part of its corporate social responsibility Remonde said, the company also plans to build Little Red Schools

across the country to provide primary education for less fortunate children, and produce healthy drinks for poor Filipino

children. Remonde said Coca-Cola Philippines has linked up with the Food and Nutrition Research Institute of the

Department of science and Technology (DoST) to help address iron-anemia deficiency in the Philippines by providing

malnourished schoolchildren since 2005 with NutriJuice fortified with iron, zinc, lysine, and vitamins A and C. From



2009 to2010, the company plans to distribute NutriJuice to over 30,000 schoolchildren for 120 feeding days in the

provinces of Quirino, Zambales, Palawan, Davao, Bukidnon, and the cities of Tacloban, Marikina, Taguig, and Pasig.In

2007, the Coca-Cola Company acquired San Miguel Corporation's 65 percent shares in Coca-Cola Bottlers Philippines

Inc.

Manila Bulletin: August 2, 2009


EGYPT: CARBONATES TO CONTINUE DOMINATING With a population approaching 80mn and a fast emerging economy, Egypt can rightfully claim to possess one of the

region's most high potential soft drinks industry. Led by the carbonates segment, soft drinks sales increased by 44.5%

between 2003 and 2008 to reach an estimated EGP4.1bn ($0US.7bn). A palpable lack of market saturation should ensure

the industry attracts continued investment, particularly from companies operating in the affluent Gulf Cooperation

Council (GCC) region seeking greater volumes. Through to 2013, BMI has forecast soft drinks value sales to increase by

19% as per capita consumption steadily climbs. As disposable incomes rise over the long-run, the pace by which value

sales push up should increase. The dominance of Egypt's carbonates segment reflects the fact that disposable incomes

remain low across the country (Egypt's GDP per capita is estimated to have been $2US,113 in 2008). Carbonates

accounted for around 70% of soft drinks sales in 2008, which is a fairly typical composition for a country in Egypt's GDP

per capita band. Carbonate drinks are cheaper than higher value fruit juices and often bottled water too. With this in

mind, we expect Coca-Cola and PepsiCo's main brands to continue to driving sales. Taking into account that as incomes

rise, the proportion of carbonates sales to that of the wider industry steadily decreases, BMI points out that the

contribution of the bottled water segment to wider soft drinks sales is likely to steadily increase over the long-run, in line

with rising per capita consumption. Similar to most states in the Middle East, Egypt's hot and humid climate, a lack of

clean drinking water and the relatively underdeveloped alcoholic drinks industry will be the fundamental growth drivers

of the bottled water segment. It is expected regional bottled water giants like UAE-based Masafi to steadily increase

investment into the country. Egypt's fruit juice segment will probably be the last to take-off (by 2013 we expect sales to

reach around EGP0.6bn). Significant economic development will have to take place before juice value sales come close

to rivalling the bottled water and carbonates segments as they do in a number of Middle East markets. Yet Egypt's large

population means that companies can still draw in volumes if value is provided. Egypt's appeal to soft drinks companies

extends well beyond its own market potential. Significant export opportunities exist as the country benefits from free

trade access to the Gulf Co-operation Council (GCC) region and is an important member of the Common Market for

Eastern and Southern Africa (COMESA). Egypt is also set to be granted free trade access to the EU in the near future.


GHANA: NUMBER ONE ENERGY DRINK HITS MARKET Number One Energy Drink, a uniquely nourishing energy drink with a reputation as the leading energy drink in Europe,

has hit the Ghanaian market. The product is manufactured by Winning Power Energy Drink Production Limited, based in

Austria. The drink contains a delicious natural blend of fresh strawberry juice and spring water, and has a great tasting

source of energy, and enhances concentration. Number one Energy drink is a move away from the synthetic based energy

drinks that have flooded the market, as it is made up of about 85 percent of natural strawberry juice.




NIGERIA: COCA-COLA SHUTS OTA PLANT Following a capacity analysis of the three concentrate production facilities located on the continent, the Nigeria Bottling

Company (NBC) has decided to shift the country's concentrate supply point and phase out the concentrate plant located

in Ota, Ogun State which, apart from being the smallest of the three such plants in Africa, serves only the Nigerian

market. A statement by the company, stated that the review of its concentrate supply logistics for Africa was aimed at

driving greater efficiency. The Coca-Cola Company's concentrate supply facility, otherwise known as Commercial

Product Supply (CPS) plant, was commissioned in Ota in 1990 to manufacture concentrate for the company's bottling

partners in the country and for export to other Coca-Cola bottlers in the sub-region. To date, the Ota CPS plant remains

the only beverage concentrate manufacturing facility in Nigeria, with all other soft drink manufacturers relying on

imported concentrate for their bottling operations.

This Day (Nigeria) - AAGM: August 29, 2009

RWANDA: OPENING OF NEW INYANGE INDUSTRIES DELAYED AGAIN Fruit farmers hoping to benefit from the new Inyange plant by supplying agricultural produce will have to wait until next

year. This follows management's decision to postpone the opening of the new factory located at Masaka, 19km from

Kigali City to January next year owing to delay in supply of some equipments. It is the second time the $27 million

(Rwf14.9 billion) plant has postponed commencement of operation. Early this year, the industries deferred its opening

from June to September due to delays in supply of installers. The new industry is expected to benefit fruit farmers by

opening markets for their produce. Farmers will be offered supply contracts to ensure steady supply of raw materials to

maintain the production levels. According to company management, the new plant will have an average production

capacity of 360,000 litres per hour, across all products from 2,976 litres. This means that some 15,000 litres of extra juice

and liquid products will be produced per hour. The move will see maracuja and long-life juices added to the company's

product line, which also includes orange, mango, and apple juices, milk and mineral water. According to the Rwanda

Horticulture Development Authority (RHODA), the increase in fruit juice processing was a boost to the horticulture

industry. The expansion is seen as a big step towards beating competition from Sulfo industry and Urwibutso Enterprise,

Inyange's main rivals. Once operations start, the old industries currently located at Gikondo industrial area will relocate

to the new location on the 4.3 hectares of land in Masaka near the proposed Free Trade Zone (FTZ).

Africa News August 21, 2009

RWANDA: GOV'T EARMARKS $700,000 FOR CONCENTRATE PLANT In a move to allow horticulture products to compete on international markets, government has set aside $700,000 to

establish a concentrate plant before the end of this year. Local horticulture products have been limited on international

market because of their unprocessed nature. The project is expected to process 20 percent of the total production by

2012.The unity of concentrate products will be at Nyirangarama enterprises which has a new infrastructure but lacking

the concentrate unity. Nyirangama is a local industry that produces juice commonly known as AGASHYA. According to

a survey done by the RHODA less that than 10 percent of horticulture products from Rwanda are processed. Muvara said

that sufficient quantities of pineapples and passion fruits are available to produce 2,437 metric tonnes per year.

According to international trade centre in its report released recently, indicates that the demand for passion fruit juice

remains high but the supply is very low. After completion of the plant Eastern Democratic republic of Congo and

Burundi are identified as potential markets since there are no fruit concentrates produced in these areas.




UGANDA: WATER, JUICE MAKERS TO BE REGISTERED The Uganda National Bureau of Standards (UNBS) has started mandatory registration of all makers of bottled water and

juice. Meeting the manufacturers at Hotel Africana in Kampala, the standards body announced the introduction of a

safety mark (S-mark) to appear on all products that meet minimum safety requirements. Moses Sebunya, the UNBS

principal public relations officer, said the registration exercise was prompted by the increased number of manufacturers

of these drinks.

New Vision (Uganda) - AAGM: August 10, 2009

UGANDA: FOOD PROCESSING PLANT LAUNCHED A sh1b food processing plant has been commissioned at Makerere University's Faculty of Food Science and Technology.

Gjermund Saether, the deputy head of mission of the Royal Norwegian Embassy, commissioned the plant last week. The

fruit and vegetable processing plant will make a revolution at the young and growing department. The plant that will

operate on a pilot basis, will enable the department to make fruit juice and other foodstuffs for sale and train students to

become entrepreneurs and agro-processors.

New Vision (Uganda) - AAGM: August 25, 2009

MIDDLE EAST: NICHOLS' SALES SPARKLE DUE TO VIMTO'S GROWING APPEAL Iconic fizzy drink Vimto's worldwide appeal is driving Nichols to better-than-expected results, chairman revealed. The

Newton-le-Willows drinks manufacturer and soft drinks dispensing company revealed an "exceptionally strong" first half

performance in the six months to June 30, as its Vimto brand outperformed the sector and began to make inroads into

even more international markets, this time in South Africa and China. Revenues were 28% ahead at pounds 37.53m and

pre-tax profits bubbled along at pounds 4.3m, a 34% improvement. Vimto grew its UK share by 13.4%, while the total

soft drinks market showed a 1.9% decline. International sales soared by 22.6%, particularly in Africa and the Middle East

where it enjoys huge popularity during Ramadan.

Daily Post (Liverpool): August 6, 2009

MIDDLE EAST: PEPSICO AND ALMARAI JV SET TO ACQUIRE BEYTI Saudi Arabia-based Almarai and soft drinks giant PepsiCo' s joint venture International Dairy and Juice Ltd (IDJ) is

believed to be close to acquiring a 70% controlling stake in leading Egyptian-based dairy company International

Company for Agro-Industrial Projects (Beyti). Egypt provides a market that is almost double the size of the Persian Gulf

region, as well as free trade access to the region and a number of sub-Saharan African markets. Through to 2013, BMI

has forecast food consumption to increase by an encouraging 16.6% to EGP234bn ($42USbn). This latest development

follows hot on the heels of IDJ's acquisition of Jordanian dairy and fruit juice producer Teeta. BMI agrees with the

decision to target Egypt. Should the deal go through, it will be the biggest food and drink M&A deal in Egypt in 2009 so

far (the value of the 70% stake is reportedly worth more than $100USmn). Similar to Teeta, Almarai's interest in Beyti

dates back to before IDJ was formed. By aligning with Almarai and, indeed, trusting its acquisitional judgment, PepsiCo

has put itself in position to invest in regional companies it would have otherwise probably been unable to target.

Contingent on the deal being successfully pushed through, it is believed that Almarai will be responsible for managing

Beyti's production, while PepsiCo will lead its marketing operation - which on paper at least, appears a formidable

combination and further evidence of the synergetic allure of the joint ventureship. Almarai is the Persian Gulf region's

largest dairy company, while PepsiCo's is among the world's foremost marketing and branding machines. BMI believes



IDJ's likely entry into Egypt is particularly well-timed. Beyti ranks among the leading dairy companies in Egypt, in an

industry that has barely scratched the surface of its potential (the dairy industry is highly fragmented with more than 300

producers jostling for market share). With a market share of around 20% in milk production and slightly less within

yoghurt, IDJ is likely to have a useful foundation to grow from. With Danone also present, Egypt's dairy industry is

certainly hotting up.


MIDDLE EAST: PEPSICO MOVES GULF HQ TO SAUDI Global soft drinks giant PepsiCo is set to shift its Gulf headquarters to a new manufacturing facility in Jeddah - Saudi

Arabia's second largest city. PepsiCo has invested around SAR1bn ($266US.7mn) in the development, its largest in the

Middle East and Africa region. BMI highlights that the Gulf region is particularly important to PepsiCo - being one of

the few regions where it outperforms Coca Cola. In FY08, PepsiCo's net revenue in the Middle East, Africa and Asia

region grew by 21.9% year-on-year (y-o-y) to $5US.6bn. Saudi Arabia has figured prominently in PepsiCo's regional

strategy in 2009. The bottler has joined forces with Almarai - the country's leading dairy company - to form the

ambitious joint venture International Dairy and Juice Ltd (IDJ), which has already made two expansionary moves With a

market share believed to be above 70% in the carbonates segment in Saudi Arabia, PepsiCo is ideally positioned to

capitalise on BMI's forecast that soft drink sales in the kingdom will increase by 26.1% through to 2013 and reach

SAR13.1bn. Saudi Arabia is comfortably the largest soft drinks industry in the Gulf region. To provide a context, by

2013 the size of the kingdom's soft drink industry is expected to be more than three times larger than that of the UAE by

value sales, which highlights the importance of a large market in the low-cost high-volume industry BMI believes that

PepsiCo is adopting a promising hybrid strategy of organic and acquisitional growth in the Middle East. On the organic

front, its core carbonates brands are well placed to continue growing while rising health consciousness should feed

through to more robust sales of its low-calorie substitutes despite the overtures of Coca Cola. Its bottled water and fruit

juice brands are also well placed to capitalise on strong demand triggers such as the region's harsh climate and the lack of

competition from the alcoholic drinks industry, particularly as the new factory will increase capacity and boost

efficiency. On the acquisitional front, PepsiCo's affiliation with Almarai is allowing it to dip its toe into the lucrative

dairy segment in a number of the Middle East's more fragmented markets such as Egypt and Jordan. By aligning with a

top-tier regional company, PepsiCo has increased its prospects of earning a greater return on its regional investments.


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CCCOOOMMMPPPAAANNNYYY IIINNNDDDEEEXXX

A

Abakan Confectionery .................................................................................................................................................................. 6, 47

Abicab........................................................................................................................................................................................... 2, 11

Agros Nova................................................................................................................................................................................. 28, 63

Ajinomoto ............................................................................................................................................................................... 4, 32, 33

Almarai ................................................................................................................................................................................... 8, 73, 74

Amcor ........................................................................................................................................................................................... 6, 50

Anadolu Efes................................................................................................................................................................................. 7, 64

Anthem Worldwide....................................................................................................................................................................... 6, 53

B

Baked Snacks Company ................................................................................................................................................................... 24

Baltimor ........................................................................................................................................................................................ 4, 29

Barry Callebaut ................................................................................................................................................................................. 42

Belgospischeprom......................................................................................................................................................................... 7, 60

Ben & Jerry............................................................................................................................................................................. 4, 24, 31

Big Bear ............................................................................................................................................................................................ 43

Boulder Canyon ...................................................................................................................................................................... 2, 17, 19

Brestkhlebprodukt......................................................................................................................................................................... 3, 26

C

Cadbury....................................................................................................................5, 6, 13, 30, 38, 41, 42, 43, 44, 46, 47, 49, 50, 51

Cadbury Wedel ................................................................................................................................................................................. 46

Cairns............................................................................................................................................................................................ 4, 35

Calculus ........................................................................................................................................................................................ 8, 68

Cape First Wines............................................................................................................................................................................... 59

Carlsberg................................................................................................................................................................................. 7, 59, 70

Chandenie ..................................................................................................................................................................................... 6, 48

China Marine Food ....................................................................................................................................................................... 4, 31

Ching’s Secret................................................................................................................................................................................... 32

Choclatique ................................................................................................................................................................................... 5, 39

Chuvashskaya ............................................................................................................................................................................... 4, 29

Citrus BR ...................................................................................................................................................................................... 6, 56

Coca-Cola ................................................................................ 2, 6, 7, 8, 12, 16, 33, 53, 57, 58, 59, 61, 62, 63, 65, 66, 67, 70, 71, 72

ConAgra............................................................................................................................................................................................ 10

Corby ............................................................................................................................................................................................ 6, 55

D

Dairibord....................................................................................................................................................................................... 4, 35

Dairy Crest.................................................................................................................................................................................... 3, 21



Diamond Foods............................................................................................................................................................................. 2, 17

Duncan Hines................................................................................................................................................................................ 2, 16

E

Eastern .............................................................................................................................................................4, 25, 32, 37, 52, 71, 72

Erlan.............................................................................................................................................................................................. 7, 65

Explorer's Bounty ............................................................................................................................................................................... 9

F

Fannie May ................................................................................................................................................................................... 5, 39

Federal Foods.................................................................................................................................................................................... 36

Ferrara Pan Candy ............................................................................................................................................................................ 39

Ferrero..................................................................................................................................................................................... 5, 43, 46

Ferrero UK........................................................................................................................................................................................ 43

Frito-Lay ................................................................................................................................................................. 2, 3, 10, 18, 33, 53

G

Galaxy..................................................................................................................................................................................... 5, 44, 59

General Mills ........................................................................................................................................................ 2, 10, 16, 19, 32, 36

Godiva..................................................................................................................................................................................... 5, 39, 52

Golden Dragon.............................................................................................................................................................................. 4, 31

Gramercy .......................................................................................................................................................................................... 17

H

Halloren ........................................................................................................................................................................................ 5, 45

Halwani Brothers .............................................................................................................................................................................. 37

Haribo ............................................................................................................................................................................................... 43

Hefestus ........................................................................................................................................................................................ 2, 14

Heinz....................................................................................................................................................................................... 3, 16, 24

Helsinki Mills ............................................................................................................................................................................... 3, 27

Huiyuan................................................................................................................................................................................... 8, 66, 67

I

Ibersnacks Snacks ......................................................................................................................................................................... 3, 24

IPK Kandit .................................................................................................................................................................................... 5, 44

J

J&J .............................................................................................................................................................................................. 16, 53

J.M. Smucker ................................................................................................................................................................................ 3, 20

Jammin' ......................................................................................................................................................................................... 5, 41

Javo ............................................................................................................................................................................................... 6, 53



K

Kegg's ........................................................................................................................................................................................... 5, 38

Kellogg ................................................................................................................................................................. 2, 10, 12, 16, 21, 25

Kinh Do Saigon ................................................................................................................................................................................ 34

KitKat ................................................................................................................................................................................... 44, 49, 58

Kiviks............................................................................................................................................................................................ 7, 63

KOF .................................................................................................................................................................................................. 58

Kracie Foods ..................................................................................................................................................................................... 51

Kraft.............................................................................................................................................3, 4, 5, 10, 12, 23, 28, 36, 39, 47, 60

Krupskaya ............................................................................................................................................................................... 6, 29, 48

Krystal........................................................................................................................................................................................... 6, 55

L

Lamzur.......................................................................................................................................................................................... 6, 48

Land O'Lakes ................................................................................................................................................................................ 3, 22

Leaf ............................................................................................................................................................................................. 43, 45

Lebedyansky ................................................................................................................................................................................. 7, 64

LesserEvil ..................................................................................................................................................................................... 3, 18

Lindt.............................................................................................................................................................................................. 5, 38

Linfox ........................................................................................................................................................................................... 7, 65

Lipton............................................................................................................................................................................................ 4, 30

Lotte.................................................................................................................................................................................... 2, 8, 11, 70

M

Madrigal Participaciones .............................................................................................................................................................. 3, 24

Mars .................................................................................................................................................................5, 13, 41, 42, 43, 45, 51

Marubeni........................................................................................................................................................................................... 69

McVitie ......................................................................................................................................................................................... 3, 24

Meiji Seika Kaisha............................................................................................................................................................................ 68

Metro Cash & Carry.......................................................................................................................................................................... 48

Minsk ...................................................................................................................................................................................... 3, 26, 60

Monogram Food ........................................................................................................................................................................... 3, 21

Monster Energy................................................................................................................................................................................. 54

N

National Foods.................................................................................................................................................................................. 65

Natural Ice Cream............................................................................................................................................................................. 31

Nestle ...........................................................................................................................................3, 5, 6, 27, 30, 34, 41, 42, 43, 44, 49

Nestlé .......................................................................................................................................................3, 4, 7, 12, 25, 30, 35, 58, 70

Number One Energy Drink............................................................................................................................................................... 71



O

Organic Meadow........................................................................................................................................................................... 3, 22

P

Pastiglia Leone.............................................................................................................................................................................. 5, 47

Patchi ............................................................................................................................................................................................ 5, 42

PAVA ............................................................................................................................................................................................... 29

Pekar ....................................................................................................................................................................................... 6, 29, 48

Pepperidge Farm............................................................................................................................................................................... 15

PepsiAmericas .................................................................................................................................................................................. 53

PepsiCo ................................................................................................................3, 6, 8, 10, 18, 23, 25, 33, 53, 56, 64, 67, 71, 73, 74

Perfetti van Melle.............................................................................................................................................................. 5, 43, 47, 51

Performance Enhancing Meat Snack Company................................................................................................................................ 20

Pernod Ricard ............................................................................................................................................................... 6, 7, 55, 59, 60

Pokka Corp ................................................................................................................................................................................. 68, 69

Prime Choice Foods.......................................................................................................................................................................... 18

Pure Food...................................................................................................................................................................................... 3, 27

Q

Quaker............................................................................................................................................................................... 2, 12, 25, 53

R

Raisio ................................................................................................................................................................................................ 26

Red October .................................................................................................................................................................................. 6, 48

Renée Voltaire .................................................................................................................................................................................. 28

Richardson Foods ......................................................................................................................................................................... 5, 40

Rita's Italian Ice ................................................................................................................................................................................ 38

Rockstar ........................................................................................................................................................................................ 7, 57

S

SABMiller......................................................................................................................................................................................... 64

San Carlos......................................................................................................................................................................................... 36

Sapporo ......................................................................................................................................................................................... 8, 69

Shuaiyi .......................................................................................................................................................................................... 7, 66

Simply Squeezed........................................................................................................................................................................... 7, 65

Skåne-möllan ................................................................................................................................................................................ 4, 28

Skriveru Saldumi .......................................................................................................................................................................... 5, 46

Solnechnaya Kultura..................................................................................................................................................................... 4, 29

Spilva ............................................................................................................................................................................................ 7, 62

Starodorozhsky ............................................................................................................................................................................. 7, 60

Suger Foods Corp ............................................................................................................................................................................. 18

Sun-Maid .......................................................................................................................................................................................... 10



Suntory.......................................................................................................................................................................................... 7, 65

Supervalu ............................................................................................................................................................................ 3, 7, 20, 60

Surya Food........................................................................................................................................................................................ 33

Swizzels Matlow............................................................................................................................................................................... 43

T

Teesside ............................................................................................................................................................................................ 24

Tetra Pak..................................................................................................................................................................................... 27, 65

Tine ............................................................................................................................................................................................... 3, 27

Toon Kidz ..................................................................................................................................................................................... 6, 51

Tropical Foods .................................................................................................................................................................... 2, 3, 15, 20

True Organix..................................................................................................................................................................................... 67

Tyson .......................................................................................................................................................................................... 10, 16

U

Unilever ...........................................................................................................3, 10, 12, 19, 21, 23, 24, 25, 26, 28, 29, 30, 31, 34, 35

V

Ventana Biotech................................................................................................................................................................................ 37

Veynyansky Rodnik...................................................................................................................................................................... 7, 61

Visy................................................................................................................................................................................................... 50

Vologodskaya Yagoda .................................................................................................................................................................. 4, 29

Voronezh Confectionery............................................................................................................................................................... 6, 47

W

Want Want .................................................................................................................................................................................... 4, 32

Warburtons ................................................................................................................................................................................... 3, 25

Warheads ...................................................................................................................................................................................... 5, 39

WBD............................................................................................................................................................................................. 7, 64

Wimm- Bill-Dann Foods .................................................................................................................................................................. 64

Wispa ...................................................................................................................................................................................... 5, 41, 42

Wrigley ............................................................................................................................................................................. 5, 41, 42, 43

Y

Yogurberry.................................................................................................................................................................................... 2, 16

Yoplait ........................................................................................................................................................................................ 10, 32

Z

Zapp's................................................................................................................................................................................................ 17

Zetar.................................................................................................................................................................................................. 24


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08 2009 GlobalFood&Beverage&LiquorIndustryIntelligence