Truffles can be brought to a wider population without sacrificing their exclusive appeal, though price remains a factor, according to one supplier of truffles for crisps.
The pressure to reduce costs has had a big influence on food packaging over the last five years, but it could now be time to dust off ideas which offer differentiation and added value.
SPECIAL EDITION: MINIMIZING COSTS THROUGH INGREDIENTS
Rather than innovative formulation changes to manage costs, bakers across the globe are instead going back to basics and cleverly sourcing commodities.
The latest European packaging manufacturer to announce it would be passing on raw material cost increases is UK company Paccor, which makes rigid plastic food packaging.
Reynolds Group recorded a much improved 2012, despite still posting an overall loss, and outlined existing expansion and cost reduction initiatives as aims for this year.
Spartech Corporation has recorded a drop in sales for the third quarter running in its Packaging Technologies Q4 results but insisted it is positioned to capitalise on expanded customer bases in 2013.
Wonder bread and Twinkies maker Hostess Brands has filed for Chapter 11 bankruptcy to allow it to restructure, but does not expect to stop producing or delivering any of its products during the process, the company said on Wednesday.
Bakery ingredients supplier CSM’s planned restructuring programme to offset weak consumer demand will result in 500 job losses, revealed the company when releasing its Q3 interim statement yesterday.
CSM may be able to move out of the danger zone if pressures alleviate on the costs input side towards mid-2012 and if its new rationalization plan generates some significant cost savings, notes an analyst.
Dutch bakery ingredients supplier CSM has issued a profit warning, claiming it will not meet its earnings expectations due to lower spending from recession hit consumer.
Material and cost savings combined with improved leak resistance and easier opening are benefits claimed by Zip-Pak for its new slider system launched at Pack Expo 2011 in Las Vegas this week.
Analysts estimate that the ingredients division of Associated British Foods (ABF) is likely to have a tough second half in line with the “lacklustre” operating performance in the first six months.
Huhtamaki suffered mixed fortunes in the first half of 2011 as strong performance in its flexible ops and emerging markets were countered by high raw material costs, negative currency effects and operational problems on some lines.
Mondi said its underlying operating profit of €187m in Q1 2011 showed its performance continued to improve but acknowledged that rising input costs and the weakening US dollar were hitting margins.
Growing sales in the first quarter of the financial year failed to offset the ongoing problem of soaring overhead and raw material costs for a string of leading packaging companies.
British Polythene Industries (BPI) said raw material price hikes had cost the company ₤45m (€ 52.3m) in 2010 and said it would be accelerating investment in its recycling operations in a bid to insulate itself from future polymer cost instabilities.
UK plastic processors have warned that soaring raw material costs will lead to significant price increases for the their products, while a leading packaging body said higher costs will inevitably be passed down the supply chain.
Flint Group has blamed an imminent 22 per cent price hike on packaging inks in Europe on soaring raw material costs and warned further increases were likely next year.
The US packaged food sector is expected to remain stable in 2011 despite a raft of difficulties including rising costs, keener competition and cash conscious consumers, according to a report by Fitch.
Dutch bakery ingredients supplier CSM posted an increase of sales of €149.2m for the third quarter, but notes a substantial hike in commodity costs and reports that it has taken some steps to offset this through higher prices.
Rabobank has predicted that wheat prices are likely to ease but warned that the bakery industry may struggle to pass on higher costs to consumers if prices remain high.
Smaller-volume meat processors can now get the cost and quality benefits of a near infrared (NIR) fat analysing system thanks to the launch of an affordable, compact and robust new machine, said manufacturers Foss.
Stora Enso said its first quarter operating profit of €119m represented a “remarkable improvement” in its year-on-year results as its packaging business maintained strong performance.
A new alliance between a software developer and a intelligent weighing system manufacturer will help eliminate waste, save on time and increase product consistency and profitability for UK and Irish based bakers, according to the companies involved.
The $16m costs of acquiring Alcan Packaging Food Americas and strong performance in its flexible packaging sector underpinned Bemis Company’s 2009 third quarter results.
The good wheat harvest and reduced energy costs contributed to strong sales despite continued cost increases in some ingredients, claims UK bakery chain Greggs
BakeMark UK has advised that “economising is not the same as down trading” and has suggested that using premium quality ingredients is the most important factor in remaining competitive – even if that means comparatively higher costs.
Productivity improvements and energy efficiency schemes will constitute the majority of new projects next year in the US food and beverage manufacturing sector, claims a report from a US market analysis firm.
Graphic Packaging International today announced that it will increase prices for coated unbleached kraft paperboard, effective with shipments on or after November 1, 2008.
A global producer of Gelatin-based products for use in functional food formulations says it has no choice but to raise the prices for its goods, owing to increasing material and energy costs.
Rising food prices are not a short-term problem so food
manufacturers must adapt accordingly, making wise strategic
choices, strengthening innovation and streamlining operations, says
a new report.
UK bakery chain Greggs climbed back after a disappointing
performance in 2006 with its three-year plan helping it offset the
impact of rising raw material and energy costs.
Rising costs and shrinking supply of sugar molasses are driving up
the cost of yeast extract production, says Bio Springer, which is
today announcing a double digit price increase for its extracts as
of next year.
Hot weather, the rising cost of raw materials and a poor potato
harvest have contributed to a downturn in the German snack market –
threatening profits for producers balancing mounting costs with
waning demand.
FMC Biopolymer will again increase prices for its food ingredients
on the back of high energy and raw material costs, and the company
says it expects prices to continue rising.
US manufacturer Kraft Foods has announced a massive extension to
its three-year restructuring plan that will see a further 8,000
jobs and 20 production plants go, as the company absorbs rising
energy and ingredient costs.
Prices for raw materials and energy are forecast to rise by around
five to 10 per cent this year, but Nestlé believes cost cuts will
balance the equation out, the company's chief executive said
yesterday.
