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Juice Industry Update 24/09/2013 1 Fruit Juice Australia Sydney, Australia Proudly sponsored by Directus

Juice Industry Update - Australian Beveragesaustralianbeverages.org/.../09/FJA-Juice-Industry-Update-Sept-2013.pdf · Juice Industry Update 24/09/2013 1 Fruit Juice Australia

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Juice Industry Update

24/09/2013 1

Fruit Juice Australia Sydney, Australia

Proudly sponsored by Directus

Presentation Overview

• FJA - Who are we

• Juice industry update– Market overview

– Current issues agenda

– Horizon view

• Guest Speaker – David Hammond (IFU)

• Open forum

• Meeting close

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FJA - Who are we...

• Former Australian Fruit Juice Association

• Merged with the Australian Beverages Council in February 2009

• Formed new juice division – Fruit Juice Australia

• Board of AFJA transitioned across

• Eight person Executive Committee – Chair, five manufacturers and two suppliers

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90%+ of industry’s production volume

What do we do...

• Administer a Fruit Juice Code of Practice first adopted in 1993

• Supported by a Parameter’s Guide and Descriptor’s Guide

• Conduct targeted testing of juice suspected of being adulterated

• Refer companies onto either relevant food authority or in some cases, the ACCC

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• Develop submissions and applications to range of regulatory and enforcement agencies

• Represent members before governments, NGOs, etc...

• Provide one untied voice for the juice industry

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• Market Overview

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Juice Market Size and Growth

Orange = 182ML (34%)

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Total beverage consumption had very low single digit growth in 2012, in line with population growth.

The beverage categories enjoying double digit growth in 2012 are RTD tea based drinks and energy drinks (albeit off a relatively low base).

RTD tea based drinks are perceived as a healthy alternative to carbonated soft drinks and major competitor to juice. Energy drinks deliver a discernible energy boost because of their sugar and caffeine content.

Categories that are perceived as lacking added value or whose functionality is being questioned are not performing as favourably.

Eg. carbonated soft drinks, water and ambient juice.

In 2011/12….

CSDs ►

Bottled water ▲6%

Iced teas ▲14%

Energy drinks ▲24%

Ambient ▼3%

Chilled ▼2%

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ITEM VALUE % 2012 2007

Total drinks $22bn 1.3% 3.1%

Alcohol $13bn 59.9%

Non-alcoholic $9bn 40.1%

Juice $1bn 1.2% 0%

Total 4.8%

Non-alcoholic 11.9%

ITEM VOLUME % 2012 2007

Total drinks 9.1 BL 0.2% 0.30%

Alcohol 1.7 BL 18%

Non-alcoholic 7.4 BL 81%

Juice 503 ML -3.4% -1.7%

Total 5.5%

Non-alcoholic 6.7% 13

ITEM

Total drinks

Alcohol

Non-alcoholic

Juice

Total

Current Issues Agenda• Juice suffering a major image problem

• Being fuelled on a number of fronts…

– Obesity

– Sugar

– Imports

– Dental issues

• By a range of detractors…

• Juice needs re-positioning

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Industry survey shows Mums feeling guilty about buying juice

Health professionals are discouraging juice consumption because of ‘additional liquid calories’

Comparisons between sugar in juice and sugar in soft drink

Queensland’s CHO recently quoted as saying parents should ban their kids from drinking soft drinks and juice.

Growers angry for low price per tonne of fruit and blame imported FCOJ as primary reason for their woes.

Issues summarised

Juice has significant image problem

Range of detractors

Range of issues

Industry in state of significant contraction (margins)

Other ‘healthier’ beverages competing hard

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Issues summarised..continued

Dollar and interplay with imports/exports

Negative noise on imported concentrate (CBZ)

Calls for clearer labelling

Obesity…HCPs looking for low hanging fruit

All conspiring against juice

Any real surprise category stalled?17

What are we doing about it?

Defend and promote

Will always be detractors eg dietitians, dentists

Turn image and perceptions around

No quick wins, look for allies

Industry just completed 12 months of an industry ‘first’: juice category growth program

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Category growth program

Two planks….

PR program and nutritional science program

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PR program multi-pronged

Media spokesperson

Three campaigns

Facebook…see https://www.facebook.com/fruitjuiceaustralia

Turning conversation around

Make buying juice guilt free for Mums

Position juice back to its healthy status

Move juice past breakfast

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Nutritional Science Program

PR programs are great, but…

Squeeze out once and for all flawed proposition that juice is associated with weight gain

Look at ‘Diet quality’ eg kids who drink juice…move to adults

Also look at meta-analysis of studies

Engage with academia, HCPs, Governments

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Balance optimism with realism

Current program under review

Industry leaders behind the program

Looking to other allies to support the cause

Pie gets bigger for all

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Horizon View

• Current issues = future issues

• Obesity, obesity, obesity

• Carbendazim, Dimethoate…

• Grower angst

• Supply chain transparency

• Scapegoat syndrome…

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• Regulatory landscape on shaky ground

• Politicians want to be seen to be doing something

• Battlegrounds over next 12 months..

– Sugar

– FCOJ

– Sugar

– FCOJ

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• What are the answers?

• Pushback…defend at every opportunity

• Push-forward…promote “ “ “

• More research…evidence-based messages

• More partners….strategic partners

• Promote the benefits…getting lost

• Flush out rogue processors…CoP, regulators

• Believe in the cause!!!!!

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• Guest Speaker

• David Hammond

– Fruit Juice Authenticity Expert

– Eurofins - http://www.eurofins.com

– International Federation of Fruit Juice Producers

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Do you want to influence what is

allowed with Fruit and Vegetable

Juices?

Australian Beverage Association

24th September 2013

Dr. David A. Hammond

Past President of the IFU Analytical Commission

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What does IFU do?

• It is the International Fruit Juice Association

• It’s aims are to promote the interests of the world’s fruit juice industries

• It has the right to represent the interests of the world’s fruit juice industries, as a NGO, at Codex Alimentarius, WTO and WHO meetings

• Act as an information and communication centre/facilitator

• Harmonise standards and practices for fruit and vegetable juice products and producers

• Co-ordinate scientific activities to benefit the worldwide fruit juice industry

• To be the forum for discussion on international topics related to juices

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International Fruit Juice Union

• President - Don Sporn

– Past President of JPA

– Industry experience since 70’s

– Retired as Senior VP at Johanna Foods Inc.

• Major US juice producer

– Involved with IFU since 2002

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My background

• Past president of IFU Analytical Commission

• Member of IFU Analytical Commission since 1990

• Member of IFU Legislative Commission since 2002

• Represents IFU at Codex Committees for Pesticide Residues and Methods of Analysis and Sampling

• Previously also monitored CFNSDU

• Vice president of AIJN Expert Group

• Fruit Juice and beverage expert with over 30 years experience in the area

• Employed by Cadbury Schweppes for 24 years @ their central research lab

• Employed by Eurofins for 7+ years

• Chairman of UK British Standards Committee AW 21 for Fruit Juices

• Member of DEFRA Authenticity Methodology Working Group

• Member of the Royal Society of Chemistry and Chartered Chemist

• Member of Association of Official Analytical Chemists

• Past General Referee for Beverages at AOAC

• Past Chair and board member of US TCJJP

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How does it facilitate these objectives

• Through the work of the Legislative Commission

volunteers are appointed to attend and represent and/or

monitor at all juice relevant Codex committees for IFU

• Scientific and Technical Commission is a fountain of

experience from both industry and academia for fruit and

vegetable juices

• Analytical Commission has for many years (30+)

validated and published 80 analytical methods to

reduce/eliminate problems between suppliers and packers

of juice

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Legislative Commission

• Representatives from producers and packers

• Deals with issues related WW regulation of fruit juices

• Co-ordinates Codex related activities

– Under the leadership of Paul Zwicker developed the initial draft of the Fruit Juice Standard (2005, 247) & assisted in the discussions leading to its ratification

– Participated in discussions about a reduced ML for lead and pushed for the “status quo” for small fruits and berries

– Lobbies to maintain fruit juices “as close to nature” as is technologically possible and advantageous (limit additive use etc)

– Working on an extension of this to cover vegetable juices with CC for Processed Fruit and Vegetables (CCPFV)

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Codex Fruit Juice Standard

• Was a looooong and slow process (5 years)

• Required special committee “Task force”

• Original draft prepared by IFU for Governmental discussions

• Although IFU has a voice at Codex, it can’t vote as a NGO

• CRITICAL to get Governmental support

• Lobbying!

• Achieved through local associations “talking” to their

governments

– “We are stronger working together to achieve our goals”

– Lobbying

• Significant support from Brazilian Government

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FJ Standard

• Task force lead by Brazil

• Three meetings there to formulate the “acceptable text”

– Definitions “what a juice is”

– What is allowed

• Short list of additives “as close to nature”

• Processing aids

• Enzymes

– What’s not

• Cellulases

• Artificial colours, flavours and in most juices preservatives

– Specialist sub-group for methods lead by Canada

• Most were IFU as the only ones tested on Fruit Juices

– Reference to analytical methods in Standard

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Codex Bombshell!!!

• Approved methods rejected by CCMAS on

procedural grounds!

– Adopt only where there is a value in the standard that

needs to be verified

• e.g. Brix, acidity

– Left no methods to confirm “authenticity”

• Issues with GMO methods!!!!!!!

• Need to know the system!!!

– Consistent representation

• Revised “standard” to include a “need”

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– 3.2 QUALITY CRITERIA

• The fruit juices and fruit nectars shall have the characteristic colour, aroma and flavour of juice from the same kind of fruit from which it is made.

• The fruit shall retain no more water from washing, steaming or other preparatory operations than technologically unavoidable. – 3.3 AUTHENTICITY

• Authenticity is the maintenance of the product’s essential physical, chemical, organoleptical, and nutritional characteristics of the fruit(s) from which it comes.– 3.4 VERIFICATION OF COMPOSITION, QUALITY AND

AUTHENTICITY

• Fruit juices and nectars should be subject to testing for authenticity, composition, and quality where applicable and where required. The analytical methods used should be those found in Section 9, Methods of Analysis and Sampling.

• The verification of a sample’s authenticity / quality can be assessed by comparison of data for the sample, generated using appropriate methods included in the standard, with that produced for fruit of the same type and from the same region, allowing for natural variations, seasonal changes and for variations occurring due to processing.

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International Fruit Juice Standard

• Revised text of standard (Fortaleza)

– Took revision to CCMAS (Budapest)

• Lobbying with member states EU, Brazil, Canada, Israel,

Switzerland, USA

– Methods approved at CCMAS “pre-meeting”

– Adopted in plenary session

– Standard finally ratified at CAC meeting 2005

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The work goes on• Vigilance required to keep labels and image of juices “close to

nature”– Lobby to prohibit use of stabilisers in juice

– Phosphate additive to enhance action of sorbate

• Lobbying to keep things sensible– Levels of Tin in canned juices

– Revaluation of lead levels in juices• Discussion point was to adopt 25 to 30 ppb as a maximum due to concerns over

health

– Lobbied for compromise position• Large fruit, which could easily meet reduced level, ML move to 30 ppb

• Small fruit, where there was a significant issue, to retain ML 50 ppb

– Achieved compromise at Contaminates meeting Moscow 2013

– Levels moved for adoption at 5/8 at CAC meeting in June• Record 1 meeting for tabling to adoption!

– Member states lobbied at CAC meeting that timeframe was too short for proper consideration

– CAC referred item back to committee at step 5

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The work goes on• Under the auspices of IFU AIJN produced a recommendation

for an International Standard for vegetable juices and nectars

• This was discussed at the most recent Legislative commission meeting in Kazan in June 2013

• The commission was in favour that this draft should be further developed prior to being sent to CCPFV for discussion, modification and adoption.

• Probably submitted in 2016

• Possible development areas

• Standard for Acai, – Some initial discussions in Europe suggested that it falls into the

“water extracted juice” category

• Coconut water already is defined as a juice under Coconut standard Codex– Discussions in Europe on this topic

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You have to be in it to have your say

• Do your members have an interest in the growing market for low calorie (low sugar) vegetable juices?

– Blends of fruit and vegetable juice/puree

• Do you want any input into this discussion?

– To protect your member’s interests?

• Join “the club”

– You have to be “IN IT” to “Win It (your say)”

• Together we are bigger and working together we are more likely to get our “voice” heard

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Analytical Commission

• Experts from laboratories, academia, producers and packers

– Recruiting now !

• Validate methods of analysis, low tech and highly

sophisticated, relevant to juices

• Over the years they have published

– 80 chemical methods

– 10 recommendations

– 12 microbiological procedures

• Recent methods have covered

– Colour measurement of clear and hazy juices (low tech)

– Quantification of polyols in fruit and vegetable juices (high tech)

– Recommendation on the colour measurement of cloudy juices using

tri-stimulus measurement (Hunter etc) (moderate)

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Why are reliable methods critical

• Most customers have specifications to which a product must conform!

• Use of a validated method– Limit problems between supplier and customer

– They measure the same thing using the same method (get the same result!)

– Method has know performance characteristics• Can instantly tell if “two” results are within method R (reduces issues)

• Provides companies with background information on methods of analysis (recommendations) written by experts in the field– Isotopic methods of analysis (sugar, water, stabiliser addition)

– Oligosacharide analysis (sugar syrup)

– Heavy metals (toxic material analysis)

– Colour and turbidity analysis

– Sensory analysis (in preparation)

• Help resolve issues with method/s• Sulfur dioxide in juices at 10 mg/l

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Scientific and Technical Commission

• Commission membership

– Expert in juice from academia and industry

• Responsible for Scientific content of IFU symposia and congresses

• Provides advice on processing of juices

– Excessive heat processing

– Improved procedures to control/reduce patulin

– Improved methods to control ACB (TAB)

– Heavy metal reduction

– Possible new ML levels for toxic metals (Pb)

• Information about new juices

– Acai

– Coconut water (codex standard

• Preparation of Statements on the health benefits of Juices

– Simple

– Technical

• Provide assistance during juice “issues”

– Carbendazim in orange juice

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Scientific and Technical Commission

• View on new processing technologies– High pressure

– Ohmic heating

– Pulsed electric field applications

– UV-C treatment

• Assistance in aspects of sustainability

• Methanol and California Prop “65”– Wanted to set intake at 23 mg/day

– due to developmental issues

• Information on GMO fruits and enzymes– Arctic apple reduced (PPO)

– May have an affect on Citrus greening

– Use of GM microorganisms to produce enzymes

• Definition for a “Fruit Smoothie” (shelved)– What is allowed

– What is not

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Challengers we face together

• We all face problems with bad publicity from

health professional and the press

– High sugar content of fruit juices

– Moves to remove FJ from the “5 a day program”

• Generation of a “need” for sugar

– Obesity caused by consumption of beverages

• Too many calories

– Acid erosion of children’s teeth

• Juice acidity removes enamel

• Regulation of new fruit and vegetable juice

products

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We are more effective together• We are bigger and can have more of an impression by

working together to develop strategies to fight against

these mis-conceptions

• Annual membership fee for IFU is €3630 (5220 A$)

• Is it too much to pay to be part of the “club” and have

your say in the approaches to tackle these issues and

help drive them forward at an international level, as

you have in the past!

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Thank you for your attention

and any questions?

• Open forum

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• Thank you

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• Fruit Juice Australia

• Australian Beverages Council

• 02 9662 4498

[email protected]

• https://www.facebook.com/fruitjuiceaustralia

• @BeveragesCouncil

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