". Bakery Industry: 8/1/10 - 9/1/10

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Obi Ezeude CEO Beloxxi Industries Ltd Nigeria Speaks On Biscuit Industry

Obi Ezeude is president/chief executive officer, Beloxxi Industries Limited located in Agbara Estate, Ogun State . Beloxxi, a biscuit and sweet manufacturing company, was commissioned last week by President Goodluck Jonathan. Obi Ezeude, who studied Banking and Finance, started business in 1994 as a trader and walked into manufacturing in 2003, less than nine years after trading. He spoke to SIAKA MOMOH, BusinessDay’s Industry Editor about his business.
beloxxi biscuit , beloxxi , beloxxi biscuit company

Importation of cream cracker Ezeude, whom this writer met a day before his ultra-modern biscuit and sweet factory was commissioned by President Goodluck Jonathan Thursday last week, was one of the largest importers of cream cracker in Nigeria, importing about 600 containers every year from Malaysia by the year 2000. Armed with this robust import business portfolio, he entered into discussion with his Malaysian suppliers to join him to set up shop in Nigeria but they backed out. Said he: “They told me one million reasons why they would not produce in Nigeria . And I decided to prove to them that manufacturing was not nuclear science.” The two parties kept on talking about it until March 3, 2003 when former President Olusegun Obasanjo banned importation of biscuit into Nigeria . And when Ezeude called them, they were shocked. They discussed smuggling with him, but he told them he wouldn’t do such thing. 

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Unilever To Procure Paper And Board Packaging From Sustainable Managed Forest

Paper and Board Packaging makes most of the secondary packaging in food  and bakery industry . Raw pulp   which is used as raw material for all paper products are sourced from  trees  thus  contributing to deforestation and in turn  impacting climate change . Addressing this concern Unilever has taken a bold initiative to source all its paper products from  sustainable managed forest or recycled  material. Hope all other major food  manufacturers  would  follow  example of Unilever in protecting environment through  sustainable  sourcing .

Unilever Policy towards sustainable paper and board sourcing

Press release .
The policy outlines the company’s ambitious goal to work with its suppliers to source 75 per cent of its paper and board packaging from sustainably managed forests or from recycled material by 2015, rising to 100 per cent by 2020.
The commitment makes Unilever the first global FMCG company to commit to sourcing all of its paper and board packaging from sustainably managed forests or recycled material within a clearly defined timeframe.
For the company’s requirements for paper from virgin sources, preference will be given to supplies delivered through the Forest Stewardship Council certification scheme. Unilever will also accept other national schemes under the framework of international Forest Management Certification standards, provided they comply with the Policy’s Implementation Guidelines.
The move means the logos of the acceptable forest management certification schemes will begin to appear on the packaging of Unilever’s portfolio of brands as progress is made towards reaching the target, and in order to increase consumer awareness and promote the expansion of certified forests in the world.
Marc Engel, Unilever’s Chief Procurement Officer, said: “As a leading consumer goods company, we buy considerable quantities of paper and board for packaging to ensure our products are protected and transported safely. As such it is important that we promote sustainable forestry practices and help combat deforestation and climate change through the responsible sourcing of these materials.
We are committed to working in partnership with all of our suppliers to progressively increase the proportion of paper and board packaging which comes from recycled materials, or sustainably managed forests, in order to achieve this ambitious target.


Conveyor Belts In Bakeries

Conveyor belts  are mounted on various types of conveyor  to  perform transportation of  wet dough to finished goods to various places.

Factors  which are kept in mind while selecting conveyors belts  are 

conveyor belts , pu belts , pvc belts , cotton belts Hygiene

Bakeries  being food factory  require hygienic condition in material handling as they come into contact with food stuff . PU are considered to more hygienic then cotton conveyor belts


PU being hygienic  is costlier than  cotton conveyors  . Cotton conveyors are  low cost substitute of Pu conveyor belts  but has disadvantage of being  unhygienic if not monitored and changed regularly  . Small bakery with low budget  unit generally use cotton conveyors . Cotton conveyors are popular  among bakery plant across developing countries .

Kind of product to carry
Surface of belts are selected  by product type such as dry , wet or oily 

Load on the conveyor belt
Thickness of belts  are  decided on load factor ie what is the load on the conveyor

Angle  of  transfer
Conveyors of higher friction coefficient  are used when conveyors have angles


Conveyor material for selected with factors like product temperature  . Metallic conveyor belt are more suitable for higher temperature s.


Conveyor belts  should be easy  to install and dismantle as well as easy to clean or  repair .

Types of conveyor belt in bakeries

Cotton conveyor belt

Cotton n Nylon Mix  belt

Felt s

PU conveyor belt

PVC  conveyor belt

Metallic slat conveyor

Wire mesh and steel bands

Download report on various application  and types of  conveyor belt used in bakery industry

Swiss Major Food Co Aryzta Buys Canadian Maidstone Bakeries

 Aryzta  Swiss Major food company  is  strengthen its position in North America through  acquisition route . It has already bought three bakeries in this region

 Swiss food group Aryzta have announced the full purchase of Canadian bakery firm Maidstone Bakeries.

Maidstone had been previously been a 50-50 partnership between Aryzta and Tim Hortons Inc, and will continue to supply the Tim Hortons network until at least 2016.
The deal, worth US $454 million, is Aryzta’s third North American buy-out since early June, when it paid a combined $1.08 billion for Fresh Start Bakeries and Great Kitchens.
The Swiss company also confirmed its U.S. subsidiary was completing investments worth $48 million for bakeries in Taiwan, Singapore and Malaysia - and was building a new bakery in Brazil.
"These investments significantly enhance our bakery capability in North America, as well as in Latin America and Asia," said Owen Killian, Aryzta's Chief

source : www.bakeryandsnacks.com

Top 10 startegies to save cost in sourcing for bakeries

Report published  by www.tradecard.com  highlights  top  strategies to save cost of sourcing for food industry  which are also applicable to bakery industry .

Here are the major  strategies

  1. Seek Low risk Low investment  solutions
  2. Keep your options open 
  3. Consider Near Sourcing
  4. Diversify  Your Portfolio
  5. Don't go it  Alone
  6. Stay Close to the Source
  7. Go  Direct 
  8. Allow  Vendors / Suppliers to  take advantage of your  credit  rating
  9. Change how you transact 
  10. Conduct Paper Assesment
Read  details  for above  strategies in  pdf

Cost Saving Strategies for food Industry

United Biscuits Strategies Spelt Out By Jayant Kapare

In an interview with ET  Mr Jayant Kapare- President  Indian Operations of United Biscuits  spelt out  strategies  by which United Biscuit  would garner  foot hold in Indian Rs 6000/-crore   biscuit market . United Biscuits have entered biscuit market last year through acquisition  of   manufacturing unit in himachal pradesh and has launched Mcvities brand of biscuits .UB claims to have reached 100 towns in India in span of  two months . United biscuits is one of world major biscuit manufacturers based at UK .UB is followed by Kraft  Foods Inc to capture Indian biscuit market .

Here are excerpts  from the interview

What took United Biscuits so long to enter India?

Kapre : United Biscuits has several international market priorities. India was obviously a key gap in our market presence, and as soon as we addressed our other priorities, we set up a project team to prepare our entry strategy. I believe that this is an opportune time to enter India, given the disposition consumers now have for quality products and the power of this market that’s becoming clear to all. We may have taken our time entering, but will now drive our agenda hard in India.

You have entered a category dominated by Parle and Britannia. Then there are others like ITC’s Sunfeast, Priyagold and Cremica. Kraft too is scouting the market. What’s going to be your strategy to get market share and consumers?

Kapre : There are three truths about this market — it is very large, has robust underlying growth and consumers are constantly upgrading their product basket. We will offer better products with better ingredients, stay on top of the innovation curve and offer all this at relevant value. Gaining a foothold in a short period in this category is not easy, but we have done it, though there’s still much to do. Everyone in the organisation is on a high learning curve. We now have a pan-India presence in more than 100 towns, which we achieved in two months of operations. We can step up distribution whenever we need to. My current priority is to ensure that channel partners are pleased with the business. We have also had good experience with our modern trade partners. 

find complete interview on 

Vinita Bali  On  Britannia's Strategies  

Britannia To Enter Saudi Arabia Bakery Market

Indian major bakery manufacturer Britannia Industries Ltd managing director Ms Vinita Bali has confirmed about its intention to enter Saudi Arabia  market

Having established itself in this region through  acquisition of two plants   Strategic Food International llc , Dubai ,UAE   and Al Sallan Food Industries Co ,Sohar ,Oman .It was next logical step  from Britannia to enter Saudi Arabia market . It has invested heavily in brand positioning and promotion  in gulf region with brand named "Nutro" . Nutro  biscuits  and Nutro  Wafers have  a significant  presence in this region .Apart from gulf countries  Britannia exports  its  products to 70  countries.

Saudi Arabia  is the largest market in this area with locals and  Indian expats making sizable portion of  the population . Around 1.8 million expat Indian  population in Saudi Arabia. Brand  recognition  and loyalty  is always there  for Britannia  and hence steps are being taken by company to encash it .Britannia pricing would be competitive for consumer to entice them to buy its product .

Competition on home turf  and  pressures on price  had made Britannia  to search  for  newer market .
Nutro products with brands  from India  would be launched in Saudi market .

Britannia competitors in Saudi market would be  Krafts Nabisco , Deemah ,  Tiffany , United Biscuits and Ulker  .

Greggs Why Its So Popular In UK

When  bakeries across the globe are facing  problems  for which few have closed their shop  few of them have sold their business .gone for reducing numbers and staff  Greggs bakery chain have return profits  after profit . Greggs performance under these circumstances have been remarkable .

greggs , uk bakery retail chain , greggs bakery retail chain , greggs bakery chain
Greggs bakery boast  to have more  retail stores than McDonald's in UK  . It has around 1400 outlet in UK and are planning to add 600  more , that  is  enough proof of their confidence .

What strikes about their bakery business is  the best of practices followed in  corporate cultures  for example  let it be in the field of

Customer service
Product innovation
Localised flavours
Supply chain management
Employee satisfaction
Senior Management

Community  care
Social Responsibility

An article  to explain  this all
While many retailers have suffered in the economic downturn, pre-tax profits at Greggs, announced yesterday, have risen by 12.3% for the first half of the year, to £18.6m, although the rise in wheat prices may make the next half of the year more challenging. But the company has, in its quiet way, become a bit of a British institution. It serves 5 million customers a week, sells nearly 140m sausage rolls a year and has shifted a huge 4.5m breakfast rolls since launching the range in February.
"There are several reasons why Greggs has done so well," says Malcolm Pinkerton, senior analyst with retail research company Verdict. "They have shifted to fresh food and their prices are low. They focus heavily on lunchtime 'meal deals' [a sandwich, drink and packet of crisps for £2.99, 2m of which have been sold in the first half of the year], and getting morning trade. Promoting freshly baked bread and handmade sandwiches means their quality perception is on the rise." It attracts a wide range of people, "from professionals on a budget who might be switching down from Pret a Manger or EAT", says Pinkerton, to manual workers getting a morning "mansnack" – as steak bakes and its like are known – to older people and young families. Pinkerton says that among its core customer base, "people feel affection for the brand. Their sausage rolls are famous, for example."


Lotte India Corporation To Produce Choco Pie In India

Choco Pie s have become popular among kids here in India . These are sourced from countries like Malaysia , Thailand , Singapore or Hongkong .

South Korean snacks manufacturer Lotte Confectionery has started to manufacture its Choco Pie biscuit brand at a newly-completed plant in Chennai, southern India. A Lotte spokesman said the company wanted to boost Indian production of Choco Pie, which, he claimed was popular locally, for its convenience.

Instead of having a big meal, several pieces of Choco Pies can make your stomach full, he said. Choco Pie will dominate production at the plant but the facility will produce other snacks and sweets later, the spokesman said. Operated by Lotte India Corp., also located in Chennai, the plant has a planned 6,000 tonnes annual capacity.

The plant costlotte group , chocopie , lotte india , lotte choco pie about US$70m to build and is currently focusing on the Indian market. However, in future, it could supply the Middle East and Africa, the spokesman added. Seoul-based Lotte Confectionery, a subsidiary of the Lotte Group, entered India through exports before acquiring Indian confectionery company Parrys in 2004. Through years of retailing businesses in India, we found out that the nation holds a market with huge potential to Lotte, the spokesman said.

Lotte India Corporation Limited, a subsidiary of South Korean multinational giant Lotte Confectionery Limited, on Wednesday inaugurated a new facility at Nemam village near here. The company has invested around $70 million (around Rs 322 crore) in the facility.

Lotte groups vice chairman Dong Bin Shin said that the new plant has a capacity of 1.8 lakh cartons of Lotte chocopie which would be exported to Middle East and African nations, besides catering to the domestic market. The plant was manufacturing candies and currently has a market share of around 10 percent in the country and 20 percent in the southern states. This facility will enable the company to capture five per cent of market share in biscuits by next year, said Shin.

Major competition for choco pie would come from  Malaysian brand from Cocoaland Industry SDN and Orion

Major  South  East  Asian  Bakery  Manufacturers

FSSAI Appoints Authorised Officer For Chennai Port

Food Safety and Standards Authority of  India  has started appointing authorised officers for port clearance to  imported food stuff landing up at different ports in India . Notification also mentions that  Authorised officer would also handle the role of Port Health Officer as defined in PFA Act 1954.

Chennai  Port gets its first Authorised Officer Mr G Srinivasan under the FSSAI Act ,2006.Any matter related to clearance of  imported  food stuff may  be now addressed to Authorised Officer instead of Port Health officer .

Source : www.fssai.gov.in

Americans Prefer Whole Grain Bread Over White Bread

Going through the consumption pattern for breads in USA  ,Its observed that gradually  people preference for bread consumption has  changed to whole wheat bread . People have become conscious about their health and kids healths .Fibres are more in whole grain bread than white bread .

A report

Whole grains are the hottest trend in sliced bread, with whole wheat edging out soft white bread in total sales for the first time.
whole grain  bread , healthy bread , diet  bread , multi grain  bread
Flooded with messages about heart health, fiber intake and the need for omega-3s, more consumers are looking for bread that can taste good and deliver nutrients.
That's why shopping for sliced bread is increasingly about one of two things: what's affordable, and what seems healthiest. And the breads in the middle of the market seem to be getting squeezed.
The best-performing breads are promoting credentials like "whole grain" and "natural," sometimes asking consumers to pay more for those loaves. And it seems to be working. Breads with "natural" in the name, or grains visible through the packaging, are among the best performing at grocery stores. Among them: Nature's Own, Nature's Pride and Arnold.
It's part of a major turning of the tide. Packaged wheat bread recently surpassed white bread in dollar sales, according to Nielsen Co. For the 52 weeks ended July 10, wheat bread sales increased 0.6 per cent to $2.6 billion, while white bread sales declined 7 per cent to $2.5 billion. White bread is still ahead in volume, but the margin is shrinking. Americans bought 1.5 billion packages of white bread in the last year, a 3 per cent decrease, and 1.3 billion packages of wheat bread, a 5 per cent increase.

Flow Diagram For Bulk Fat Handling Sytem In Bakery

 bulk handling , fat bulk handling,bulk handling for raw material

Fat handling system is installed in large bakeries producing higher volumes of bakery products . Fat being one of the major ingredient for bakery products is procured in bulk for cost advantage . This bulk procurement leads to storage problem .As per nature of fat which has low melting point needs to be stored in cold storage if bought in bag on boxes . To solve this and to have cost advantage in terms of loading and unloading of boxes or drum companies have installed fat bulk handling system .Similar to what we discussed earlier in Bulk Flour handling system .

Main component of any fat handling system are

Storage tank : Storage tank could be of S.s or M.s with man hole ,insulation and inlet and outlet for fat

Loading or unloading pumps - These pumps are special lobe pumps which can handle viscous fluid and unload fat from tankers

Insulation - Required during winter when temperature are low

Heat tracing - Additional heating facility in areas where temperature s goes down during extreme winter

Transferring pump - Pump to transfer fat from storage tank to mixing section

Temperature Controllers and Indicator - Instruments to control temperature of fat inside the storage tanks as higher temperatures can make fat rancid .

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