Issue 2 10 January 2007

MINTEL PREDICTS TOP TEN FMCG TRENDS FOR 2007Mintel's global trendspotters have predicted the top 10 hottest trends that will hit the FMCG industry in 2007. According to Retail World, in addition to focusing on sustainability and a return to simplicity, companies are also expected to embrace more age-specific product launches, technology-savvy marketing initiatives and a rejuvenated celebration of the breakfast segment. Environmental responsibility is one of the hottest emerging trends on the radar.

1. Welcome to Amazonia: 2007 will see consumers experiencing a taste of the Amazon without leaving the comfort of their homes. The Amazonia movement highlights products that feature indigenous resources from the Amazon rainforest. This trend is closely tied to increased interest in natural products and exotic ingredients.

2. Commitment to ethical products: Consumers will display a deeper commitment to ethical products globally. Over the next year, fair trade and sustainable ingredients will continue to expand into mainstream product groups.

3. Revisiting refills: Mintel believes that refillable packaging is a strong growth

opportunity as consumers are increasingly looking for more opportunities to save natural resources.

4. Natural beauty: Analysts also predict the continued emergence of more natural cosmetics and skin care products, showing that people are as committed to natural external beauty as they are to wellness.

5. Keeping it simple: Consumers are looking to return to simpler times, and some FMCG products will move in this direction in 2007. Simplicity in products and messaging is predicted to flood the FMCG market in 2007, with companies focusing on easier use and more streamlined packaging.

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Waterless car wash in an aerosol can

Gillette launches Fusion

Recycling Innovation brought to you by

6. Tech-advanced packaging, promotion and consumer tracking: In 2007, consumers will start to see wider use of technology to advance packaging and consumer tracking procedures. Although the radio frequency identification process has been greatly debated, it is expected to have a more significant impact on consumer packaging procedures over time.

7. Internet marketing prevails: In the same technological vein, the internet will continue to build on its strong reputation as a marketing medium. More companies will join the blogging revolution, reaching out to consumers through corporate and brand-based blogs.

8. Blooming boomers: Now the ‘baby boomers’ are moving into retirement, Mintel expects to see more initiatives combating the negative senior stereotype.

9. Looks and tastes like teen spirit: In the teen circuit, expect more opportunities for homecare product growth.

10. A fresh start for breakfast: The day’s most important meal will continue to see new innovation and development. Beyond convenience, companies may find themselves looking for ways to bring more traditional aspects of breakfast back into play.

Mintel is a leading global supplier of consumer, product and media intelligence. For more than 35 years Mintel has supplied insight into key worldwide trends, offering unique data that directly impacts client success. For more information visit www.mintel.com.

Source: Retail World, December 2006

HOMEGROWN NEWSWATER – MAjOR PROBLEMS IN NEW SOuTH WALES, SOuTH AuSTRALIA AND VICTORIAHundreds of irrigation farmers along the NSW side of the Murray River face the prospect of having no water in 2007 after Murray Irrigation convened to make the difficult decision of who would get water and who wouldn’t.

The meetings were prompted by a NSW government decision to slash water allocations to Riverina irrigators by more than 50%.

The decision has left farmers, particularly dairy farmers, stranded as many have paid thousands of dollars for water that will not be delivered.

Meanwhile, dairy industry leaders in South Australia are exploring ways to counter a stock and dairy water shortage, which could cripple farmers already struggling as many report their normally reliable water supplies are starting to dry up.

Dairy farmers are being asked to assess their water reserves so the industry can plan in case water supply becomes a serious problem.

The South Australian Dairyfarmers’ Association is also working on several options, including carting water using tankers and identifying other sources of water from neighbouring properties or drilling new bores.

Finally, Goulburn farmer Mark Williams, who is struggling to cope with the current drought, is still making repayments from the 2002/03 drought – forcing him to make some tough decisions.

In the next month, he will permanently sell about 400 megalitres of the water he is allocated by the local water authority to reduce his debt and pay for feed for his 330 cows.

Under Australia’s water trading system, irrigators’ water allocations can be bought and sold between districts, for one season or permanently.

There are concerns, however, that drought-stricken farmers who are selling their water for cash may not be able to afford to buy their rights back.

Source: Dairy Week, 5 January 2007

FuRTHER DAMAGE TO AuSTRALIA’S APRICOT CROPWind and rain over the Christmas period has seriously reduced the stone fruit harvest in Tasmania.

Early ripening apricots have been blown from the trees and are carpeting orchards.

With between 35 to 40% of the crop lost in October due to frost, fine weather as the fruit ripens is crucial to prevent further losses.

Source: Foodnews, 2 January 2007

NEWS SNIPPET

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Stolt Sea Farm Australia has sold its southern bluefin tuna business to SAMS Holdings. Stolt Nielsen SA said that proceeds of the sale totalled A$90 million.

RECYCLINGEDGELL RECYCLES NEW-LOOK LOGOEdgell, the major Australian canned vegetable packager, is making big strides in its commitment to encourage consumers to recycle steel cans.

With more than 25 per cent of all sales in the Australian canned vegetable market, representing 64 million cans sold per year, Edgell is using its market clout to spread the word on recycling.

Edgell has made the move to make the “Recyclable steel” logo part of its product labelling.

“Whilst having the logo on our product labelling will not necessarily provide a reason for purchase, the packaging format will present a positive message to the consumer. This can only have positive repercussions – for Edgell, the consumer and the environment,” an Edgell spokesman said.

Source: Packaging News, Dec 06/Jan 07

WATERLESS CAR WASH IN AN AEROSOL CANWith many Australians now seeking ways to conserve valuable water resources, a waterless car wash product in a can is offering a new solution.

NoWet is a premium quality waterless car wash, polish and wax that cleans and protects in one easy aerosol application.

NoWet was developed over a decade ago in the US to care for antique and prestige cars and is used in over 16 countries around the world.

Applied as a mist via an aerosol spray, NoWet softens, emulsifies and encapsulates dirt particles, providing a protective barrier between the dirt and the paintwork.

The liquid is then gently removed leaving a fine haze which is buffed to produce a beautiful showroom shine, with no swirl mark scratches or 'water spots' which may result from traditional car washing.

The Carnauba wax in NoWet also gives the car an all-weather protective coating.

NoWet saves water, is made from all-natural ingredients and does not contain petroleum

distillates, silicone, abrasives, harmful chemicals or detergents that may pollute waterways.

Source: www.nowetcarclean.com.au

INNOVATIONGILLETTE LAuNCHES FuSIONIn February Gillette will launch Gillette Fusion and Gillette Fusion Power wet shaving systems for men and razors featuring advanced technology on the front and back of the blade cartridge.

Both shaving systems feature a five-blade shaving surface technology on the front cartridge, with blades positioned 30 per cent closer together than MACH 3 blades.

To coincide with the launch of the razors, Gillette has also released a line of shave gels and aftershaves in aerosols, consisting of: Gillette Fusion Hydra Gel; Gillette Fusion Hydra Soothe After-Shave Balm; and Gillette Fusion Hydra Cool After-Shave Gel.

Source: Retail World, December 2006

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AuSSIE FOOD ExPORTS TOP $23 BILLION

Australian companies exported more than $23 billion in foods in 2005–06, according to a report issued by the National Food Industry Strategy (NFIS).

The NFIS calculates that the 2005–06 figure was approximately the same as the previous year’s, despite Australian exports growing by an average of 6 per cent in the decade to 2002.

Meat and grains were the two largest export categories, together accounting for more than half of total exports.

Beverages and dairy each represented just over 10 per cent of total exports.

The full report is available at www.nfis.com.au.

Source: Packaging News, Dec 06/Jan 07

TREND WATCHHEALTHY TRANS FAT OIL DEVELOPED?University of Arkansas researchers have developed a trans fat oil that they claim could have health benefits.

By juggling the molecular structure of soy oil, the team of scientists have developed a substance that is rich in conjugated linoleic acid (CLA).

Andrew Proctor, professor of food science, and graduate student Vishal Jain claim that studies have shown that CLA can give the immune system a boost.

The two scientists have now used the converted oil to produce potato chips that contain high concentrations of CLA.

“It is still important to have a low fat diet and we do not propose increasing the fat intake, but a few chips will provide needed CLA,” said Proctor.

Trans fats, which are mainly found in partially hydrogenated vegetable oil (a common ingredient in thousands of food products), have been linked to raising blood cholesterol levels and promoting heart disease.

Source: www.foodproductiondaily.com, 3 January 2007

LOOKING GOOD DICTATES CONSuMER SPENDINGConsumers are spending more than ever on looking good, according to a new report from Euromonitor International.

The findings of Spending choices: Discretionary Income Patterns to 2015 reveals that the consumer goods industries, in particular those associated with image and health, are enjoying a boom in sales as consumers are using a greater share of their income on perfumes, colour cosmetics, skin care and health and wellness products.

The luxury sector is the main beneficiary of this trend, with an increase in value of sales of more than 45% in the last six years, according to Euromonitor.

Looking ahead, the trends analyst predicts that consumer markets will remain dynamic until 2015, with the strongest growth coming from emerging markets such as India and China.

It predicts that the global spend on discretionary products will reach US$3.1 trillion by 2020, underlining the huge potential this sector still offers.

Source: www.cosmeticsbusiness.com, 20 December 2006

AROuND THE WORLD ARCELOR MITTAL DEVELOPMENTSArcelor Mittal is still making news around the world regarding its controversial merger, with recent developments taking place in Canada, Mexico and China.

The company is being sued by Thyssenkrupp AG for breaching an agreement to sell Dofasco, a Canadian Steelmaker, as part of the merger last year.

Mittal Steel had promised to sell Dofasco but, as part of Arcelor’s attempts to initially thwart Mittal’s takeover bid, Arcelor transferred its Dofasco shares to independent Dutch foundation Strategic Steel Stichting, effectively blocking the sale.

Arcelor Mittal has also bolstered its presence in Central America through the $1.4 billion acquisition of Sicartsa in Mexico and by forming an alliance with Grupo Villacero to sell steel products in Mexico and the southern part of the US.

Finally, the Chinese minority stake buy in Laiwu Steel has had its deadline extended to wait for Beijing's approval.

Source: www.cantechonline.com, December 2006

NEW CANNED PRODuCTS IN uKRAINEA new brand of canned foods has been launched in Ukraine.

The Bon Kherson (which means 'bon appetit') range initially comprises 28 different products in three separate categories (canned vegetables, sauces and juices) and was developed in only two months.

According to local fruit and vegetable journal Agrooglyad, some 80 to 90 new canneries have started up in the last four years in Ukraine, with most trying to introduce their own brands and trademarks.

However, none has yet been able to seriously affect the position of the market leaders, Veres and Chumak.

This season, competition for market share is likely to increase and may lead to large industry consolidation.

Source: Foodnews, 3 January 2007

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NEWS SNIPPETNestle’s milk powder capacity at the Pasuruan facility in East Java will rise from 50,000 tonnes to 93,000 tonnes a year. Starting next year, the Indonesian subsidiary of the Swiss food giant will spend an estimated $US80 million to expand the plant. The present plant is already operating at almost full capacity.

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uPCOMING EVENTS

25–27 APRIL 2007Fillex 2007Las Vegas Convention Centre, Las Vegas

P +44 1293 435 200E events@sayers-publishing.comVisit www.spgevents.com

1–4 MAY 2007AuspackMelbourne

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15–17 MAYThe Packaging SummitChicago

Visit www.pkgsummit.com

17–19 SEPTEMBERFEA International Congress Exhibition Aerosols 2007Manchester, uK

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200728–30 MARCH 2007Food Ingredients China 2007Shanghai Everbright Convention and Exhibition Center & Shanghai International Exhibition Center, China

Visit www.chinafoodadditives.com/d_e.htm

3–4 APRIL 20072007 Aerosol ForumParis

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25–27 APRIL 2007Cannex 2007Las Vegas Convention Centre, Las Vegas

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