General Mills

Buyer policy listing: Ferrero says added EUR 1/person/year cost to EU consumers for low-contaminant & sustainable palm oil


Here's a gradually expanding listing of recent buyer policy updates on palm oil. Update for Cargill, added to top of this and sequence for most recent from the top. Early updates include: Walmart on organic, MPONGOC, J&J and a listing of TFT clients, Kao and Greenpeace challenge to key India and China producers and Adelaide Zoo switch form "palm oil free" to certified frozen desserts; adds on supply-chain certification news and the Cargill-TFT link up. Interesting contrast between Krispy and Dunkin. Also a report from Forest Heroes which seeks to "saves the Sumatran Tiger." It has a "media hit" with its campaign on Kellogg's Frosties (which has a tiger mascot). Hershey joined TFT, and Greenpeace and UCS reactions added - basically with critique of lack of third party verification and strict deadline under the TFT program. Then Bunge shifted to traceability and set to avoid high risk sourcing zones. Mondelez sets out rules on online data mapping, deforestation, and labour rights.


27 Nov 2017: Ferrero says added EUR 1/person/year cost to EU consumers for low-contaminant & sustainable palm oil


Editor's note: Also interesting to chat with mill process engineer expert who wrote this: How Cancer causing substances crept into food products containing palm oil? 20/11/2017 By EnergyWise
http://rank.com.my/energywise/?p=800#sthash.INv6CAUi.dpbs 

Ferrero decided to directly obtain RSPO certified segregated palm oil, which keeps sustainable palm oil physically separated from non-sustainable palm oil and source it from certified sustainable plantations to the production line... "We also wanted a commitment from smallholders, (from whom RSPO was sourced), including (an assurance that they are) not using paraquat," he told Malaysia journalists after a talk on the food sector and sustainable palm oil policies at the European Palm Oil Conference on Thursday.... "So, the issue here is not in finding the right palm oil, because there is lot of palm oil in the market. The issue is whether the industry is ready to pay the right premium for the (RSPO) palm oil" he asked. Hence, for best practices in sustainable palm oil and low contaminants in palm oil, Ferrero pays a premium of 130 euros per tonne, which sums up to an additional 25 million euros, annually.... However, the impact of the price on the final product to the consumers is almost irrelevant, said Charrier. He said the company sourced 180,000 tonnes of palm oil or 0.3 per cent of the total global production annually. Out of which, 90 per cent came from Malaysia and the rest from other producing countries. "So, if all edible palm oil used in EU has the same premium as Ferrero, the extra cost would be 500 million euros per annum - that would go to the upstream of Malaysia and Indonesia. "Assuming this extra cost is fully passed to EU consumers, that would mean one euro per capita per year," he explained.... http://www.malaysiandigest.com/news/709575-sustainable-palm-oil-it-takes-two-to-tango-says-ferrero.html


9 Dec 2016: Can the big brand buyers really get enough sustainable product?


Confidence in secure commodity supply chains 'misplaced' By David Burrows, 08-Dec-2016 -- Confident there’s enough soy, palm oil and beef to go around and your policies can weather the risks ahead on everything from climate change and deforestation to reputation and regulation? Think again, say the authors of two new reports. .... Almost three quarters (72%) of the firms believe they will be able to access a secure and sustainable supply of forestrisk commodities going forward. But this confidence may be “misplaced” for a number of reasons, CDP warned. For example, just one in five firms is looking at risks beyond the next six years, whilst only 30% of manufacturers and retailers can trace these commodities back to the point of origin. Fewer than half (42%) have evaluated the impact of the availability or quality of the commodities on their growth strategies further than 2020.... http://www.foodnavigator.com/Market-Trends/Confidence-in-secure-commodity-supply-chains-misplaced

7 Dec 2016: Mondelez International palm supplier requirements, worries about saturated fats formulations

US food and beverage multinational Mondelez International set out new requirements on 10 November for its suppliers of palm oil. Key new provisions in its updated Palm Oil Action Plan require suppliers to:
- Map and assess the risk for all supplying mills on Global Forest Watch (an interactive on-line forest monitoring and alert system)
- Provide assurance that no deforestation occurs on their own concessions and exclude third-party suppliers who do not immediately cease deforestation
- Work with recognised third-party experts to protect labour rights
http://www.ofimagazine.com/news/mondelez-sets-new-requirements-for-palm-oil-suppliers?

Findings point to risk from saturated fats outside some reduction guidelines, Harvard-Unilever study confirms link between sat fats, heart disease & importance of reformulation By Nathan Gray+ 28-Nov-2016 -- However, it goes further than previous studies by identifying links between specific saturated fatty acids – including stearic acid, which some countries such as France do not currently include in saturated fat legislation…. “Research from us and others has shown that some dairy products (such as yoghurt) and odd-chain fatty acids circulating in the blood seem to have health benefits rather than health harms, and this requires further study.”
http://mobile.foodnavigator.com/Science/Harvard-Unilever-study-confirms-link-between-sat-fats-heart-disease-importance-of-reformulation

And back in 2013…Industry saturated fat pledge is a ‘mixed message’ and ‘bit of hype’, says obesity expert By Caroline Scott-Thomas+ 28-Oct-2013 -- A food industry pledge to reduce the saturated fat content in a range of foods is a ‘bit of hype’ and will fail to change diets unless more companies sign up, according to trustee of the National Obesity Forum Tam Fry.... The UK Department of Health’s public health minister Jane Ellison announced the pledge on Saturday, under which some of the signatory companies have pledged to remove saturated fat from their products, and others have said they would reduce saturated fat content.... “It’s hugely encouraging that companies providing almost half of the food available on the UK market have committed to this new Responsibility Deal pledge and they are leading the way to give their customers healthier products and lower fat alternatives,” Ellison said in a statement.... According to the DoH, cutting saturated fat consumption by 15% could prevent around 2,600 premature deaths a year in the UK, from conditions such as cardiovascular disease and stroke.... http://mobile.foodnavigator.com/Policy/Industry-saturated-fat-pledge-is-a-mixed-message-and-bit-of-hype-says-obesity-expert



10 July 2016: Michelin goes for Greenpeace's HCS Approach


Greenpeace France’s reaction to Michelin Zero Deforestation Commitment Press release - June 13, 2016 -- Michelin Group, world leading tyre manufacturer and first world buyer of natural rubber just published a zero deforestation procurement policy based on the methodology High Carbon Stock (HCS) Approach   http://www.greenpeace.org/africa/en/Press-Centre-Hub/Greenpeace-Michelin-Zero-Deforestation-Commitment/



13 December 2015: Hershey- TFT update, Proforest sourcing guidelines, Proforest - AAK, Vopak Vlaardingen, the first RSPO terminal worldwide. Croda and BASF. Uptake problem. Rabobank forecast. Swedish initiative.


Hershey Expands Sustainable Sourcing Efforts with New Deforestation Commitments December 03, 2015  •New Pulp and Paper Policy expands commitment to help prevent deforestation  •Palm Oil Tracing Update: Tracing to mills nearly complete and mapping to plantations ahead of schedule... “Preventing deforestation has never been more important,” said Susanna Zhu, Chief Procurement Officer at The Hershey Company. “We continue to learn more about the geography of our palm oil supply chain and are having productive conversations with suppliers about our expectations. While we’re pleased with our palm oil sustainable sourcing progress so far, we know there is more work to be done. This effort, along with our Pulp and Paper Policy, will help us continue to ensure that we’re achieving our high sustainable sourcing standards.” ...Beyond pulp and paper sourcing, Hershey’s additional efforts to reduce its impact on deforestation include the company’s ongoing work with The Forest Trust (TFT) to trace its palm oil supply chain to mills and plantations. As of the second quarter of 2015, Hershey has traced its supply chain to approximately 90 percent of all the mills where the company’s palm oil is processed. Additionally, Hershey has achieved 10 percent traceability of its palm volume to the original palm oil plantations. These results keep Hershey ahead of schedule to deliver planation-level traceability by the end of 2016.   http://www.businesswire.com/news/home/20151203005301/en/Hershey-Expands-Sustainable-Sourcing-Efforts-Deforestation-Commitments

Proforest - New guide to responsible sourcing published 04.11.2015  - Proforest publishes new practical guide to implementing responsible sourcing commitments http://www.proforest.net/en/news/new-guide-to-responsible-sourcing

Sourcing palm oil responsibly: our partnership with AAK. 21.10.2015 With Proforest's support, palm oil giant AAK has achieved 100 percent traceability of its palm oil to mill. Here, Proforest director and co-founder Neil Judd talks about the partnership, what it means to be a 'critical friend' and the Proforest approach to responsible sourcing. AAK partnered with Proforest in May 2014... http://www.proforest.net/en/news/sourcing-palm-oil-responsibly-our-partnership-with-aak-on

Vopak Vlaardingen, the first RSPO terminal worldwide 03 December 2015, Vopak Vlaardingen is the first terminal in the world to obtain RSPO certification. RSPO stands for 'Roundtable on Sustainable Palm Oil '. This organisation was created ten years ago, with the aim of developing standards for sustainable palm oil production, in order to promote and enhance the production and consumption of sustainable palm oil https://www.portofrotterdam.com/en/news-and-press-releases/vopak-vlaardingen-the-first-rspo-terminal-worldwide

Croda bags Certified Sustainable Palm Oil for its global manufacturing facilities By Simon Pitman+, 09-Nov-2015  With the growing importance on sourcing and processing sustainable palm oil, Croda has fulfilled requirements for all of its manufacturing facilities to comply with industry standards. http://www.cosmeticsdesign.com/Formulation-Science/Croda-bags-Certified-Sustainable-Palm-Oil-for-its-global-manufacturing-facilities

Low uptake of sustainable palm oil  7 November 2015... Only half of RSPO-certified palm oil finds a buyer. THERE is a sluggish uptake of sustainable palm oil, and the frequent excuse is that nobody wants to pay the premium. What is the Roundtable on Sustainable Palm Oil (RSPO) response to this?... Bek-Nielsen (who is RSPO co-chair, MPOA): People generally do not like broken promises. Growers are no exception and the growers who committed themselves to the RSPO in many instances feel short-changed. The producers have taken a leap of faith undergoing an herculean task (not without costs) to live up to the standards of sustainable palm oil set in force by a number of stakeholders, amongst them NGOs and multinationals like WWF, Conservation International and Unilever to mention a few....http://www.thestar.com.my/business/business-news/2015/11/07/low-uptake-of-sustainable-palm-oil/?style=biz


Palm oil demand growth offers opening for niche certified producers By RJ Whitehead, 05-Nov-2015 Global demand for certified sustainable palm oil will double in five years, growing from 5.3m tonnes in 2014 to 11m by 2020, predicts Rabobank. http://www.foodnavigator-asia.com/Markets/Palm-oil-demand-growth-offers-opening-for-niche-certified-producers

Swedish initiative for sustainable palm oil in chemical products by Joakim Persson / on November 1, 2015  Suppliers, manufacturers and retailers in Sweden have joined together in an initiative enabling a long-term switch to more sustainably produced, certified and traceable palm oil in both cosmetics and hygiene products such as detergents and cleaning products, reports http://scandasia.com/swedish-initiative-for-sustainable-palm-oil-in-chemical-products/

Is RSPO certification becoming irrelevant? By Niamh Michail+, 28-Oct-2015 Companies are increasingly demanding certified palm oil using criteria that are stricter than current RSPO standards – does the mean the RSPO certification is in danger of becoming irrelevant? http://www.foodnavigator.com/Policy/Is-RSPO-certification-becoming-irrelevant

BASF’s 'new palm positioning' on RSPO certification in Asia By Michelle Yeomans+, 27-Oct-2015 BASF is expanding its commitment to only source RSPO-certified sustainable raw materials with upstream traceability for palm oil and palm kernel oil fractions and edible oil esters by 2025. http://www.cosmeticsdesign-asia.com/Business-Financial/BASF-s-new-palm-positioning-on-RSPO-certification-in-Asia

PepsiCo’s palm oil pledge should not exempt Indofood, NGOs say - The global food and beverage giant recently promised to source deforestation-free palm oil, but green groups say the commitment should apply to joint venture partners that sell its branded partners. That includes Indofood, Indonesia's largest food company. by Mongabay.com  29 October 2015 http://www.eco-business.com/news/pepsicos-palm-oil-pledge-should-not-exempt-indofood-ngos-say/

A new business model for palm oil? The recent haze in Southeast Asia has sparked renewed calls for alternatives to palm oil products. In this interview, Forum for the Future founder Jonathon Porritt tells Eco-Business why the industry - which also provides thousands of livelihoods worldwide - needs a new business model, not boycotts.  By Vaidehi Shah  16 October 2015 http://www.eco-business.com/news/a-new-business-model-for-palm-oil/

19 October 2015: BASF, PepsiCo, Cargill

BASF Expands Production Capacity for Emollients and Waxes in China NewswireToday - /newswire/ - Hong Kong, Hong Kong, 2015/10/08 - BASF will expand its emollients and waxes production capacity with a new plant at its site in Jinshan, Shanghai - Care-Chemicals.BASF.com. DE000BASF111 http://www.newswiretoday.com/news/155355/

BusinessCase: Sustainability Initiatives Have Saved PepsiCo Over $375M Since 2010 September 25, 2015; The water, energy, packaging and waste-reduction initiatives have been tallied up, and PepsiCo, Inc. asserts that its environmental sustainability initiatives have saved the company more than $375 million since its goals were established in 2010. The company proudly announced this week that it also delivered double-digit net revenue and operating profit growth during the same time period, demonstrating a solid business case. The results of PepsiCo’s Performance with Purpose commitment are detailed in its 2014 Corporate Social Responsibility Report, Global Reporting Initiative (GRI) Report, and first-ever sustainability microsite, howwillwe.com. PepsiCo says the microsite is “an interactive and immersive experience” to engage users in discussion around how we will grow sustainably, thrive in a changing environment, and create opportunity. http://www.sustainablebrands.com/news_and_views/waste_not/hannah_furlong/businesscase_sustainability_initiatives_have_saved_pepsico_o

Cargill Marks Anniversary of No-Deforestation Pledge With New Forest Policy; Greenpeace Wants More September 18, 2015 by Sustainable Brands; On Wednesday, just a few days from the first anniversary of the New York Declaration on Forests (NYDF) — an international, multi-sector commitment to safeguard the world’s forests and to help tackle climate change signed by Cargill and other major multinational companies, governments, and civil society organizations at last year’s UN Climate Summit — Cargill released a new Policy on Forests. Backed by forest protection action plans for Cargill’s priority commodity supply chains, the policy sets a comprehensive approach for the company in its efforts to prevent forest loss. “Deforestation is a global issue, but a local challenge. We’re committed to working with farmers, government, business, advocacy organizations and consumers to help craft and implement solutions tailored to the diverse landscapes we seek to protect,” said Paul Conway, Cargill’s vice chairman. “Our Policy on Forests is one of the ways we are working to feed a growing population while also sustaining vital forest ecosystems for generations to come.” http://www.sustainablebrands.com/news_and_views/business_models/sustainable_brands/cargill_marks_anniversary_no-deforestation_pledge_

 

13 September 2015: Starbucks, Oregon Zoo


Starbucks and palm oil, wake up and smell the coffee  Sponsored by: RSPO By Hanna Thomas Tuesday 25 August 2015 16.31 BST; Consumer action is vital if we’re going to tackle deforestation and social exploitation in the palm oil supply chain http://www.theguardian.com/sustainable-business/2015/aug/25/starbucks-palm-oil-campaign-2015-sumofus-consumers-deforestation-commitments

Oregon Zoo to only sell food made with responsibly produced palm oil Posted:  Aug 25, 2015 4:34 AM Updated:  Aug 25, 2015 4:34 AM   By FOX 12 Staff Vivian, a Malayan sun bear, climbs a log at the Oregon Zoo. Sun bears are one of many species threatened by deforestation to make way for palm oil plantations. Photo by Michael Durham, courtesy of the Oregon Zoo.Vivian, a Malayan sun bear, climbs a log at the Oregon Zoo. Sun bears are one of many species threatened by deforestation to make way for palm oil plantations. Photo by Michael Durham, courtesy of the Oregon Zoo.
PORTLAND, OR  Read more:
http://www.kptv.com/story/29868099/oregon-zoo-to-only-sell-food-made-with-responsibly-produced-palm-oil#ixzz3lbatuHP3

7 September 2015: Clorox's commitment


Clorox Company’s New Palm Oil Commitment is a Step Forward September 3, 2015; WASHINGTON (September 3, 2015) – The Union of Concerned Scientists (UCS) today commended the Clorox Company for committing to responsibly sourcing palm oil in its supply chain by 2020; Clorox Company uses palm oil in product lines such as Burt’s Bees and Green Works, which the company markets as “natural” and environmentally friendly. “This is a win for forests,” said Lael Goodman, an analyst with UCS’s Tropical Forests and Climate Initiative. “Clorox’s competitors, including Procter & Gamble and Colgate-Palmolive, have already issued deforestation-free palm oil commitments, so it’s good to see Clorox follow their lead, especially since they market some of their products as green. ” Earlier this year, UCS scored 10 major personal care companies on their palm oil sourcing standards. http://www.ucsusa.org/news/press_release/clorox-company-new-palm-oil-commitment-is-a-step-forward-0524#.Ve2OJoywqrQ

24 August 2015: Why are companies hiding their sustainable credentials? FoodNavigator (some details)

Why are companies hiding their sustainable credentials? By Niamh Michail, 29-Jul-2015; Eco-labels make food taste better and consumers feel better about themselves. They boost a company's image and consumers are willing to pay more. And yet despite these benefits, only around half of total RSPO certified palm oil is sold as certified sustainable according to a report by the International Institute for Sustainable Development (IISD), while just 35% of cocoa certified by the Rainforest Alliance, UTZ or Fairtrade bear a certification logo. For sugar the figures are even lower – in 2012 only 16% of certified sustainable cane sugar was sold as such, said the Food Climate Research Network (FCRN ). But why would companies go to pains to certify a key ingredient and then not inform their consumers?....
  • some feature it in certain brands as upmarket and niche and up the price tag
  • supply and demand are not always in sync and in part by a lack of industry commitment in certain consumer markets to sourcing and paying - RSPO
  • Rainforest Alliance logo may only be used if the certified ingredient was a ‘core ingredient’ ... or if it made up at least 30% of the total product
  • manufacturers weren't looking to conceal the sustainability of the ingredient – but rather the presence of the ingredient itself
  • in some countries sustainability issues simply do not resonate with consumers – such as India and China
  • Elsewhere it could be the exact opposite problem – that Western consumers are suffering from eco-label fatigue
  • standardisation of sustainability will further reduce the need for companies to communicate their efforts
http://www.foodnavigator.com/Market-Trends/Why-are-companies-hiding-their-sustainable-credentials

22 August 2015:  Interest in sustainably sourced palm oil in India is minimal


Without India, you can forget about achieving a sustainable palm oil sector - All eyes are on India, the world’s largest palm oil importer, and whether companies can help shift consumers towards sustainable choices; India’s 1.2 billion citizens consume approximately 15% of the global supply of palm oil. The vast majority of the commodity (95% according to WWF figures) is used as edible oil, with the remainder added to haircare and beauty products. The country imports nearly all of its palm oil, more than two-­thirds of which is sourced from Indonesia.... At the annual World Bank conference on land and poverty held in Washington in March, Prabianto Mukti Wibowo, assistant deputy minister for forestry in Indonesia’s economic affairs ministry said: “We know that our primary customers are not concerned about deforestation.”
Unlike the boycotts and consumer awareness in Europe and the US, interest in sustainably sourced palm oil in India is minimal, putting little pressure on the domestic market to shift to more sustainable sources.
http://www.theguardian.com/sustainable-business/2015/aug/10/india-palm-oil-sustainability-deforestation-unilever-greenpeace

19 August 2015: Italian politicians defend palm oil, Why are companies hiding their sustainable credentials? FoodNavigator news. Consumer Goods Forum palm oil sourcing guidelines.

Italian politicians defend palm oil By Caroline Scott-Thomas+, 18-Aug-2015
Italian politicians have submitted two resolutions to parliament defending alm oil in the face of anti-palm oil campaigns, calling it a raw material of fundamental importance for Italian industry.
http://www.foodnavigator.com/Policy/Italian-politicians-defend-palm-oil

Why are companies hiding their sustainable credentials? By Niamh Michail+, 29-Jul-2015; A sustainable logo is known to add value to a brand – so why are so many manufacturers not showing their Fairtrade, organic or sustainable credentials?http://www.foodnavigator.com/Ingredients/Carbohydrates-and-fibres-sugar-starches/Why-are-companies-hiding-their-sustainable-credentials

The Consumer Goods Forum Publishes Palm Oil Sourcing Guidelines  Published: Tuesday, 11 August 2015 12:16  Consumer Goods Industry’s First Ever Set of Sustainable Palm Oil Sourcing Guidelines to Help Drive Implementation of ‘Zero Net Deforestation’ Resolution; PARIS, 11th August 2015 – The Consumer Goods Forum (“CGF”) today announced publication of the first-ever ‘Sustainable Palm Oil Sourcing Guidelines’ (the “Guidelines”). This publicly available document is an important step in helping the consumer goods and retail industries to achieve zero net deforestation by 2020, as outlined in the CGF’s Deforestation Resolution.... http://www.theconsumergoodsforum.com/the-consumer-goods-forum-publishes-palm-oil-sourcing-guidelines

20 June 2015: Nutella flap - Greenpeace defends position for maker which is part of POIG and apparent client of The Forest Trust (associated with Greenpeace in both)

Greenpeace says boycotting Nutella is wrong – it’s NOT destroying the planet by Lianna Brinded Jun. 18, 2015, 6:34 PM; Greenpeace says French ecology minister Segolene Royal is wrong – Nutella is not destroying the planet and a ban wouldn’t solve the world’s environmental problems.
A couple of day ago Royal went on French television network Canal+ and said that people should stop eating the popular hazelnut spread because harvesting one of its key ingredients, palm oil, leads to deforestation. But environmental activist group Greenpeace has now told news website Quartz that “a blanket boycott of this agricultural crop will not solve problems in its production.”
It also told the site that Ferrero, Nutella’s maker, is actually a supporter of the Palm Oil Innovation Group, which includes Greenpeace, other non-governmental organisations, and some palm oil producers. ..... http://www.businessinsider.my/greenpeace-no-nutella-boycott-segolene-royal-palm-oil-2015-6/#dr60qq8lz6WSXR8S.99

'Stop eating Nutella' urges French ecology minister Agence France-Presse, Paris | World | Tue, June 16 2015, 11:34 PM; France's ecology minister, Segolene Royal, has rankled the company that makes Nutella by urging the public to stop eating its irresistible chocolate hazelnut spread, saying it contributes to deforestation."We have to replant a lot of trees because there is massive deforestation that also leads to global warming. We should stop eating Nutella, for example, because it's made with palm oil," Royal said in an interview late Monday on the French television network Canal+."Oil palms have replaced trees, and therefore caused considerable damage to the environment," she explained.Nutella, she said, should be made from "other ingredients".The comments needled Ferrero, the giant Italian chocolate group that makes Nutella.Without referring to Royal directly, the company issued a statement Tuesday saying it was aware of the environmental stakes and had made commitments to source palm oil in a responsible manner.Ferrero gets nearly 80 percent of its palm oil from Malaysia. The rest of its supply comes from Papua New Guinea, Indonesia and Brazil. - See more at: http://www.thejakartapost.com/news/2015/06/16/stop-eating-nutella-urges-french-ecology-minister.html#sthash.woeyOPti.dpuf

7 June 2015: PepsiCo, Wal-Mart, others ask RSPO to strengthen standards; Europe set for 100% CSPO by 2020, segregated palm oil excludes small producers? Mondelez plan.

PepsiCo, Wal-Mart, others seek stronger palm oil standards  6/1/2015 -  by Jeff Gelski The R.S.P.O. was formed in 2004 to promote the growth and use of sustainable oil palm products through global standards and stakeholder engagement.
BOSTON — Multinational food companies and institutional investors representing more than $5 trillion in assets signed a June 1 letter seeking stronger environmental and social regulations to qualify for certification from the Roundtable on Sustainable Palm Oil.
ConAgra Foods, Inc.; Dunkin’ Brands; General Mills, Inc.; The Kellogg Co.; Mars, Inc.; PepsiCo, Inc.; and Starbucks were some of the food companies signing the letter sent to  Datuk Darrel Webber, secretary general of the Roundtable on Sustainable Palm Oil and based in Kuala Lumpur, Malaysia. Retail chains signing the letter included Albertsons-Safeway and Wal-Mart Stores, Inc. Other consumer packaged goods companies signing the letter included Colgate-Palmolive, Procter & Gamble and Johnson & Johnson Family of Consumer Cos
http://www.foodbusinessnews.net/articles/news_home/Business_News/2015/06/PepsiCo_Wal-Mart_others_seek_s.aspx?ID=%7BDB137BFC-2038-469B-BE22-EFC05F644913%7D&cck=1

European Palm Oil Industry Sets Course for 100% Certified Sustainable Palm Oil by 2020  Published: June 4, 2015 6:52 a.m. ETAMSTERDAM, Jun 04, 2015 (PR Newswire Europe via COMTEX) -- AMSTERDAM, June 4, 2015 /PRNewswire/ -- Third European RSPO roundtable: regional objectives, tougher enforcement rules and innovative sustainability standards A new drive to address palm oil's global sustainability challenges emerged at RSPO's third European Roundtable held yesterday in Amsterdam, gathering an audience of around two hundred and eighty industries, NGOs and stakeholders from palm oil producing and importing countries. While all parties agreed that RSPO certified sustainable palm oil (CSPO) is part of the answer and acknowledged the work done by RSPO so far, they did not see any room for complacency and stressed the importance of change. http://www.marketwatch.com/story/european-palm-oil-industry-sets-course-for-100-certified-sustainable-palm-oil-by-2020-2015-06-04-62035242

Could Europe’s drive to segregated palm oil exclude small producers? By Caroline Scott-Thomas+SCOTT-THOMAS, 02-Jun-2015 A European push toward segregated certified sustainable palm oil may inadvertently exclude smaller producers from the supply chain, says GreenPalm manager Bob Norman. http://www.foodnavigator.com/Policy/Could-Europe-s-drive-to-segregated-palm-oil-exclude-small-producers

Mondelez’s sustainable palm oil plan: “We want the whole supply chain to transform” By Caroline Scott-Thomas+, 01-Jun-2015 Mondelez International is on track to meet its goal of sourcing 100% traceable palm oil by the end of the year after reaching 70% traceability in 2014, says global director of sustainability Jonathan Horrell.
http://www.foodnavigator.com/Market-Trends/Mondelez-s-sustainable-palm-oil-plan-We-want-the-whole-supply-chain-to-transform

24 May 2015: Yum! Promised to Improve its Palm Oil Sourcing Policy Starting 2017, Colgate-Palmolive Releases 2014 Sustainability Report

Yum! Promised to Improve its Palm Oil Sourcing Policy Starting 2017 Byjason-seligman on May 19, 2015 The new policy sets December 2017 for putting up the latest safeguards when looking for palm oil sources. Yum!  said it will only source palm oil  from suppliers which set improvement in their carbon emission level and protect rainforests and peat terrains.  The giant fast food restaurant will implement the new roles in all its operations down to the restaurant levels. Greenpeace immediately praised the declaration, which led a crusade campaign in 2012 against the company’s paper pulp operation. Rolf Skar, Forest Campaign Director at Greenpeace USA said that Greenpeace wants Yum! to ” define more clearly terms like ‘high carbon stock forest’ and ‘best management practices’ for peat lands in order to make sure change really happens on the ground.” However, an advocacy organization called the Union of Concerned Scientists (UCS), on Wednesday gave a score card for the company, zero out of 100 rank on its palm oil policy, wanted Yum! to pledge much more that what is promising to do. http://www.investornewswire.com/yum-promised-to-improve-its-palm-oil-sourcing-starting-2017/7914/

Colgate-Palmolive Releases 2014 Sustainability Report That Details Progress on the Company’s Sustainability Strategy Submitted by: Colgate-Palmolive Company   Posted:  May 18, 2015 – 07:00 AM EST  NEW YORK, May 18 /CSRwire/ - Colgate-Palmolive has released its 2014 Sustainability Report titled, Giving the World Reasons to Smile. This annual report details Colgate’s long-standing commitments and achievements regarding sustainability and social responsibility around the world.  This year’s highlights include: • Colgate improved the sustainability profile in 72 percent of new products and the balance of its portfolio in 2014 (based on representative products evaluated against comparable Colgate products). • Colgate reduced greenhouse gas intensity by 19.7 percent and energy use intensity by 19.1 percent since 2005 and was named a U.S. EPA ENERGY STAR Partner of the Year for the fifth year in a row, with recognition for Sustained Excellence. http://www.csrwire.com/press_releases/37959-Colgate-Palmolive-Releases-2014-Sustainability-Report-That-Details-Progress-on-the-Company-s-Sustainability-Strategy


16 May 2015: Forgot to post this before, a rather dramatic and unusual even ton an app to show products containing palm oil

'You will need to watch your back': The cowardly note threatening Aussie woman's family for developing app that shows which products contain jungle-wrecking palm oil By Freya Noble for Daily Mail Australia  Published: 13:30 GMT, 24 March 2015  | Updated: 15:18 GMT, 24 March 2015. A letter was sent to Lorinda Jane threatening her and her daughter. It claimed they knew where she lived and to 'watch her back.' She is President and Founder of not-for-profit Palm Oil Investigations (POI). POI are launching an app on Wednesday evening at 7pm. It tells consumers whether a product contains palm oil; http://www.dailymail.co.uk/news/article-3009199/We-know-live-Threatening-anonymous-letter-sent-head-not-profit-just-DAY-release-organisation-s-app-tells-consumers-product-contains-palm-oil.html#ixzz3aHh1GjC9

1 May 2015: The Corporate Capture of Sustainable Development by Leslie Sklair; /khorreports-palmoil/2015/05/the-corporate-capture-of-sustainable.html

22 April 2015: McDonald's supply chain commitment - refers to NY Declaration and HCS Approach

McDonald's to axe deforestation from its global supply chain - The fast-food giant announced it will work with its suppliers to end deforestation in its global supply chain. But do the super-sized claims stack up? by Siri Srinivas Tuesday 21 April 2015 22.06 BST; Global fast-food giant McDonald’s on Tuesday pledged to end deforestation across its entire supply chain..... The announcement follows recent similar pledges by Dunkin’ Donuts, Krispy Kreme, Yum Brands and many others. But the World Wildlife Fund, which advised McDonald’s on its new commitment, said it could have big influence on other fast-food chains...... “McDonald’s brings size and scale to the debate of sustainable sourcing. Their reach is large, they are global, they work closely with the suppliers and so this outreach can only help,” said David McLaughlin, vice president of agriculture at the World Wildlife Fund. .........In an eight-point commitment, McDonald’s promises not to contribute to deforestation in areas most critical to reducing carbon in the atmosphere, known as high carbon value and high carbon stock forests. These are areas of high environmental value, including high biodiversity, as well as high value to their communities, that are often in danger of being cleared to make way for plantations. The world’s largest fast-food chain also said it would not source commodities from peatlands, or swampy areas that store a lot of carbon and can end up contributing to greenhouse gas emissions when disturbed. This commitment will affect 3,100 of its global direct suppliers as well as its more complex network of indirect suppliers, said Michele Banik-Rake, director of sustainability for McDonald’s worldwide supply chain management.......Also on Tuesday, the company released a sustainable sourcing statement outlining how it will work with suppliers to ensure that the beef, poultry, coffee, palm oil and fiber-based packaging it uses do not contribute to deforestation.
In the commitment, the company also said it would respect human rights and verify where the raw materials used to make its products come from. The company said that it will suspend or eliminate purchases from suppliers who do not meet its requirements. McDonald’s will also evaluate its progress in annual reports......In a palm oil scorecard released by the Union of Concerned Scientists earlier this month, McDonald’s fared poorly on its palm oil deforestation record, but the company, like other major brands, recognized global gaps in sustainable sourcing, said Lael Goodman, the author of the report......While McDonald’s said that its policy is effective immediately, their actual targets for zero-deforestation may be five to 15 years away. This is in line with the New York declaration on forests that it signed at the United Nation’s climate summit in September, along with other global corporations, to end deforestation due to agricultural commodities by 2020 and the loss of natural forests by 2030. Critics of the New York declaration called the 2030 target for ending deforestation and 2020 target for agricultural commodities unambitious, but others said it was worth applauding as a step in the right direction. ....The supply chain hub is sponsored by the Fairtrade Foundation. All content is editorially independent except for pieces labelled “brought to you by”. Find out more here.... http://www.theguardian.com/sustainable-business/2015/apr/21/mcdonalds-deforestation-global-supply-chain

Macdonald's Commitment on Deforestation: http://www.aboutmcdonalds.com/mcd/sustainability/sourcing/commitment-on-deforestation.html
Note: It talks of NY Declaration as well as the HCS Approach (Greenpeace-TFT-Forest Heroes and also used by Wilmar, GAR etc.)

4 April 2015: KFC, Taco Bell, Pizza Hut adopt zero deforestation policy - with HCS and better labour policies - to apply to global restaurants, with Dec 2017 target.

KFC, Taco Bell, Pizza Hut adopt zero deforestation policy for palm oil by Rhett A. Butler, mongabay.com  April 03, 2015; Yum! Brands, the company that owns KFC, Taco Bell and Pizza Hut, on Thursday announced a zero deforestation policy for its palm oil sourcing. The move came after aggressive campaigns by environmental groups that argued the chains weren't doing enough to ensure the palm oil they used to fry foods wasn't linked to human rights abuses, destruction of peatlands, and logging of rainforests. The policy sets a December 2017 target for establishing safeguards for palm oil sourcing. Yum! says it will only source from suppliers who bar plantation development in high carbon stock and high conservation value areas, like rainforests and peatlands; have disputes resolution processes in place; offer traceability to the mill level; and avoid underage workers and forced labor. The standards apply Yum!'s global fast food business, meaning it applies to all of its restaurants.Yum! has a similar set of guidelines for its paper and fiber sourcing..... The announcement was quickly welcomed by Greenpeace, which campaigned against the company's pulp and paper sourcing practices in 2012. “Yum! Brands’ new palm oil policy is a good sign it’s listening to customers around the world who want rainforest destruction taken off the menu.” said Rolf Skar, Forest Campaign Director at Greenpeace USA.  Skar added that Greenpeace still wants Yum! to "more clearly define terms like 'high carbon stock forest' and 'best management practices' for peatlands in order to make sure change really happens on the ground."... However the Union of Concerned Scientists (UCS), an advocacy group that on Wednesday released a scorecard giving Yum! a zero out of 100 rank on its palm oil policy, wanted more from the company..... http://news.mongabay.com/2015/0403-yum-brands-zero-deforestation.html#ixzz3WKZVJkHT

Zero Deforestation arrangement for Palm oil to be implemented by KFC, Taco Bell, and Pizza Hut  April 5, 2015; Yum! Brands, the organization that claims KFC, Taco Bell and Pizza Hut, on Thursday reported a zero deforestation arrangement for its palm oil sourcing. The move came after forceful battles by ecological gatherings that argued that the restaurants weren’t doing what’s needed to guarantee the palm oil they used to cook food wasn’t connected to human rights misuses, obliteration of peat lands, and logging of rainforests.... The strategy sets December 2017 as focus for creating shields for palm oil sourcing. Yum! says it will just come from suppliers who block farmstead advancement in high carbon stock and high preservation esteem ranges, in the same way as rainforests and peat lands; have debate determination forms set up; offer traceability to the plant level; and evade underage laborers and constrained work.... The benchmarks apply Yum’s! worldwide fast food business, the importance it applies to every last bit of its restaurants.
Yum! has a comparable arrangement of rules for its paper and fiber sourcing.... The declaration was immediately accepted by Greenpeace, which battled against the organization’s mash and paper sourcing practices in 2012.... http://www.esbtrib.com/2015/04/05/9032/zero-deforestation-arrangement-for-palm-oil-to-be-implemented-by-kfc-taco-bell-and-pizza-hut/

Some palm oil specialists point to the higher yield of palm oil and the larger area competitor oils use, a typical argument and rebuttal:

Attan Akmar: A pound of palm oil is produced on a tenth of the farm area required to produce the same quantity of soy oil. It's soy oil that should be discouraged especially after millions of acres
Denise Jurcyk ·  Top Commenter · Chicago, Illinois: Well said but.... that was a long time ago and it was not forest but prairie. Which is , if slowly being replanted. Rain forest has so much diversity and large mammals that are threatened with extinction , we must save . We learned our lessons and it's time to save the rainforests and it's inhabitants and the planet. Maybe you should develop agricultural methods that can greatly increase the production on land already cleared. And Stop clear cutting the rainforest !Maybe science can replace the use of palm oil !
http://news.mongabay.com/2015/0403-yum-brands-zero-deforestation.html#ixzz3WKZVJkHT

3 April 2015: ADM Commits to No-Deforestation Policy for Soybeans, Palm Oil 

ADM Commits to No-Deforestation Policy for Soybeans, Palm Oil  'By'Shruti Date Singh  12:00 AM HKT  April 1, 2015; (Bloomberg) -- Archer-Daniels-Midland Co., a global supplier of agricultural commodities, has pledged to curb deforestation that results from the farming of soybeans and palm trees.  ADM is committing to developing ways to trace crops it processes, make those supply chains transparent and protect forests globally, according to Victoria Podesta, a spokeswoman for the Chicago-based company. The policy “combines a clear commitment to no deforestation with progressive action focused on our most critical supply chains,” Podesta said Monday in an e-mailed statement.  The policy for soy production is the first for that crop, said Lucia von Reusner, an activist for Boston-based Green Century Capital Management Inc., a mutual fund manager that focuses on sustainability. Suppliers representing about 96 percent of globally traded palm oil already have adopted such measures, Green Century said in a statement Tuesday.  http://www.bloomberg.com/news/articles/2015-03-31/adm-commits-to-no-deforestation-policy-for-soybeans-palm-oil

4 February 2015: LG Household & Health Care goes RSPO Segregated / SG at Ulsan and Onsan plants

LG Household & Health Care Acquires RSPO Certification by Jeana Shin 2 February 2015
LG Household & Health Care's two factories, in Ulsan and Onsan, South Korea, have received certifications from the Roundtable on Sustainable Palm Oil (RSPO), an international certification body. This significant step elevates LG Household & Health Care to equal global companies like Unilever and Basf.... LG Household & Health Care started to build a system for producing surfactants, which use eco-friendly palm oil, from 2013 in its Ulsan and Onsan factories as the demands for RSPO-certified products increased recently in Australia, New Zealand and Europe.
It completed a system to use and manufacture the raw materials of palm oil that complies with RSPO Segregation requirements in every aspect of the process, from from raw material storage, production, product storage to shipment.... LG Household & Health Care plans to reinforce its overseas raw material business by exporting surfactant from its RSPO-certified palm oil.... http://www.businesskorea.co.kr/article/8839/rspo-certified-lg-household-health-care-acquires-rspo-certification#sthash.FFRnDOWf.dpuf

18 January 2015: PepsiCo Doritos targeted

PepsiCo Fires Back at Doritos Spoof Ad Viewed 1.5 Million Times By Duane D. Stanford  Jan 16, 2015 3:01 AM GMT+0800; PepsiCo Inc. (PEP) dismissed as a “stunt” a social-media video posted by environmental activists challenging the snack maker’s reliance on palm oil in Doritos.
The clip, which was released by SumofUs.org as a spoof of a Doritos commercial, alleges that PepsiCo’s palm-oil use destroys rain forests and kills animals. After the ad gained a following online, PepsiCo shot back yesterday, saying its policy on the ingredient is sound and the video distorts the truth. http://www.bloomberg.com/news/2015-01-15/pepsico-fires-back-at-doritos-spoof-ad-viewed-1-5-million-times.html

22 December 2014: Big buyers and producers ratchet up pledges, RAN pushes traceability

Unilever, Cargill push to green their palm oil chain; Facing growing concerns about deforestation in Asia, companies are pledging to use green palm oil; But as more sustainable oil reached the market and the technology for tracing commodities improved, Unilever, Cargill and Nestlé among strengthened their pledges in the past two years to use only green palm oil... They were joined this year by more than 20 consumer goods companies—including Kellogg, Mars, Procter & Gamble  PG   and Johnson & Johnson  —which adopted zero deforestation policies. And in September at the U.N. climate summit, more than 30 companies including McDonald’s  MCD  and Wal-Mart Stores   committed to eliminate deforestation from their supply chain by no later than 2020.... It was part of a larger pledge at the summit by governments to half deforestation by 2020 and strive to end it by 2030. If fulfilled, the measure would eliminate between 4.5 million and 8.8 billion tons of carbon dioxide each year by 2030—the equivalent to removing carbon emissions produced by one billion cars.... Along with the Indonesian Palm Oil Pledge, five producers this summer joined Cargill in signing the Sustainable Palm Oil Manifesto. The companies have signed onto a no-deforestation pledge and the establishment of a system to create a “traceable and transparent supply chain.” The companies, most of them based in Malaysia, also agreed to a moratorium on converting the most environmentally important high carbon stock forests until a study can be done to determine where those stocks are located......... Two investigations—one released in September by a coalition of environmental groups called Eyes on the Forest and another by Rainforest Action Network—illustrate the challenge ahead. The Eyes on the Forest investigation found scores of palm oil producers in Indonesia who have signed sustainability commitments caught sourcing oil palm from illegal plantations. Illegal produced palm oil from forests favored by endangered Sumatran tigers ended up in facilities of four producers as well as at ports these producers use to ship their products.... The RAN investigation implicated 40 palm oil growers operating in an Indonesia conservation area that his home to endangered orangutans as well as Sumatran tigers, rhinos and elephants. One major crude palm oil mill was caught sourcing from these growers and three large traders also sourced from them... “At the moment, there is no traceability at the plantation level in the global palm oil supply chain,” said Gemma Tillack, RAN’s agribusiness campaign director. http://fortune.com/2014/12/17/palm-oil-deforestation-unilever-cargill/

29 November 2014: Unilever and Cargill updates

Unilever to Use Only Sustainable Palm Oil in European Foods by End of Year
Company Pledges to Use Only Traceable, Sustainable Palm Oil World-Wide by 2020
http://online.wsj.com/articles/unilever-to-use-only-sustainable-palm-oil-in-european-foods-by-end-of-year-1416402241

Cargill Publishes First Palm Oil Progress; Cargill today released its first progress report on sustainable palm oil. The report lays out the company’s action plan to achieve a fully sustainable supply chain. "Sustainability has long been part of our palm ... http://wc4.net/t?r=1453&c=3870773&l=36989&ctl=4C3B20C:FCB2C9F06EB032236D766D156048A097F0CE68744B36A4D6&

3 November 2014: National buyer platforms

Norwegian Food Industry Commits to Sourcing Only Certified Sustainable Palm Oil by 2015, RSPO News, 03 October 2014; "The Norwegian Alliance for Sustainable Palm Oil has agreed criteria to promote sustainable palm oil in Norway and contribute to the prevention of deforestation. The Alliance, which consists of most major food & drink producers and retailers in Norway, has committed to using only sustainably produced and certified palm oil that meets the RSPO Principles & Criteria, by the end of 2015. As of today, the signatories include: Coop Norge AS, Findus Norge AS, Hennig-Olsen Is AS, Ica Norge AS, Mills DA, Mondelēz Norge AS, Nestlé Norge AS, Nordic Choice Hotels AS, NorgesGruppen ASA, Orkla ASA, Umoe Restaurants AS, Unilever Norge AS...They also commit that by 2018 they will either phase out palm oil or switch to segregated or traceable CSPO, and publish their progress reports annually. Norway is the eighth European country to officially launch a National Initiative, a commitment by the main industrial actors to source only certified sustainable palm oil. Similar national platforms already exist in the UK, France, Germany, Belgium, Netherlands, Sweden and Denmark...."
http://www.rspo.org/news-and-events/news/norwegian-food-industry-commits-to-sourcing-only-certified-sustainable-palm-oil-by-2015

2 November 2014: Bunge goes with traceability and signals Sarawak / high risk zone shift?

Bunge updates its palm oil sourcing policy in October 2014 for traceability. This can be differentiated from RSPO certification which was the key program As buyers face issues in implementing their near term pledges (often set for next year, 2015) for sustainable palm oil, there are shifts to extend deadlines and perhaps the more common new trend is to shift from sustainability (certification) to traceability.

The latter is now frequently associated with the TFT (Greenpeace associated) programs for customized (by supplier) trade terms for B2B dealings. In contrast, RSPO certification (part of WWF's roundtables / "market transformation" program) uses a multi-stakeholder model and its heavy NGO influence is commonly thought to have contributed to policy escalations that trouble supply-chain players with rising cost of compliance amidst a seeming glut of certificates, and perhaps more crucially the problem of it achieving inclusivity of small producers and smallholders. Hence, the competition for new programs for the palm oil sector, by other NGOs.

On NGO reactions to Bunge's move, the UCS campaign gives it a good nod (it is "impressed" and says this "will have huge implications for peatlands"), as does Forest Heroes ("it gives a clear signal to rogue actors in the palm oil industry"). Forest Heroes' Glenn Hurowitz is widely reported to have had a key role in negotiation Bunge's new policy (he says that Bunge's move is akin to a new "green revolution" to delink agriculture from deforestation). 

However the timeline for implementation has not been set. "We are currently in the process of developing an implementation plan in collaboration with suppliers and expect to release it in the coming months," a Bunge spokesperson told mongabay.com. UCS concern is likewise on the deadline and says "while it rightly prioritizes tracing palm oil from high risk areas, it does not require that all palm oil be eventually traced back to the original plantation."

UCS notes that "Bunge’s commitment is particularly important because they source much of their palm oil from Sarawak, Malaysia, a peat-rich area" and it is reports that Bunge is among the biggest buyers from Sarawak.

We're not sure yet if this represents a sign-on with The Forest Trust, a key provider of traceability programs for Wilmar, GAR and Cargill. A check today on its blog (http://between2worlds.com/) and its website (http://www.tft-forests.org/search/?cx=014285459649207030104%3Api_nr-53-oq&cof=FORID%3A10%3BNB%3A1&ie=UTF-8&sa=&q=bunge) yields no recent news on Bunge.

The key Bunge document is here: http://www.bunge.com/citizenship/bunge-palm-oil-sourcing-policy.pdf. Excerpt:

Commitments
.....Bunge immediately commits to begin building a traceable supply chain, following the principles
below, for 100 percent of the palm oil and palm derivatives it trades, processes and utilizes in
commercial and consumer products worldwide:

Forest & Biodiversity Preservation: Protection of High Conservation Value (HCV) areas as defined by Roundtable on Sustainable Palm Oil (RSPO) P&C 5.2 and 7.3 and High Carbon Stock (HCS) forests as defined by the HCS Steering Group

Reduction of GHG Emissions
  •      Protection of peat areas, regardless of depth1
  •  Application of RSPO best management practices for peat on existing plantations
  •  No burning
Labor Protections, Human Rights and Free, Prior & Informed Consent (FPIC)2
  •  Prohibition of forced and child labor, discrimination and harassment of workers
  •  Protection of freedom of association and the right to collective bargaining
  •  Respect of local and indigenous community rights and application of FPIC for land purchases and use
  •  Support of the Food and Agriculture Organization Voluntary Guidelines on the Responsible Governance of Tenure
Legal Compliance
  •  Compliance with all relevant national and local laws
Traceability
Bunge will strive for traceability to the mill level for all suppliers and, in areas of high environmental or social sensitivity, to the fresh fruit bunch level.
News links:


25 September 2014: Look out for pace of signings RSPO versus/and TFT.

And on this, notable that a new report by Forest Heroes places all TFT mega processor trader partner pledges at top of "greenest" suppliers list (TFT-Climate Advisers work with Wilmar, commonly reported as controlling half the global palm oil trade), alongside the solid niche producer already supplying full segregated and other certified oil: http://www.forestheroes.org/greentigers. The website says: Our Green Tigers report ranks palm oil companies on their adherence to forest conservation requirements -- showing which companies are slated to prosper in the new era of forest protection, and which are lagging far behind. We ranked 18 of the world's largest palm oil companies, judging them on forest protection, high carbon stock protection, peat protection, and their human rights records. The website focuses on an advocacy and a professional "grassroots advocacy and communications firm Catapult helps guide the campaign and deliver our message where it can have the biggest impact." Contacts include Glenn Hurowitz, Forest Heroes Campaign Chair / Managing Director of Climate Advisers (advisor to Wilmar alongside TFT in its 5 December 2013 commitment). Link to report: https://d3n8a8pro7vhmx.cloudfront.net/forestheroes/pages/131/attachments/original/1411386115/Green_Tigers-Forest_Heroes.pdf?1411386115. Forest Heroes has useful list of "media hits" which covers a lot of US palm oil campaigning news: http://www.forestheroes.org/news.

Report rates palm oil companies on sustainability commitments by mongabay.com; October 05, 2014; "A new report published Forest Heroes, an advocacy campaign pushing for an end to deforestation, ranks global palm oil companies on their sustainability commitments.
The Green Tigers, authored by Glen Hurowitz, reviews the recent history of environmental policies in the palm oil sector.... The report notes that most of the companies that are signees to the Sustainable Palm Oil Manifesto (SPOM), a commitment established this year, are on the yellow or red lists, while Palm Oil Innovation Group (POIG) companies are on the green list. Environmentalists have criticized SPOM as having weaker criteria than POIG, although several SPOM members just committed to a one-year moratorium on clearing of potential high carbon stock areas while they work out a definition of what constitutes forest...." http://news.mongabay.com/2014/1005-palm-oil-sustainability-rankings.html#YbvjysWgkr8SCwBM.99

Major alliances

Cargill Joins Palm-Oil Makers to Pledge Forest Protection  By Mark Drajem  Sep 23, 2014 11:30 PM GMT+0800; "Cargill Inc. joined the world’s largest makers of palm oil in a pledge to prevent deforestation and vowed to work with Indonesia, the biggest global producer, to implement policies that will protect forests. Cargill announced its action today at the United Nations summit on climate change with more than 20 producers that account for about half of all palm-oil consumption. Consumers have been pressing the makers of products such as candy and cookies using palm oil to stop clearing forests to plant new palms.... Unilever has pledged forestry protection as part of its sourcing of palm oil, the world’s most-consumed vegetable oil, used by Kellogg Co. (K) to make Pop-Tarts, Mondelez International Inc. (MDLZ) to produce Oreo cookies and Mars Inc. (MMC) to make Twix candy bars.... As part of today’s forestry pledges, Norway, the U.K., Germany and others pledged $1 billion to persuade developing countries such as Liberia and Peru to preserve their forests.
http://www.bloomberg.com/news/2014-09-23/cargill-joins-palm-oil-makers-to-pledge-forest-protection.html

Cargill and TFT join hands to advance sustainable palm oil,  September 2014: http://www.marketwatch.com/story/cargill-and-tft-join-hands-to-advance-sustainable-palm-oil-2014-09-15


Buyer policies

TFT sign up. Hershey Co. strengthens palm oil policy By TIM STUHLDREHER | Business Writer, Wednesday, September 24, 2014 12:15 pm; "The Hershey Co. said Wednesday it is taking measures to ensure that the palm oil it uses is not linked to deforestation or labor and human rights abuses.
....Back in 2011, Hershey joined the Roundtable on Sustainable Palm Oil and pledged to source all its palm oil from RSPO-certified suppliers by 2015. In December, Hershey said it had met that goal, more than a year ahead of schedule. Earlier this month, Hershey announced an expansion of Learn to Grow, a component of its cocoa sustainability initiative...." http://lancasteronline.com/business/local_business/hershey-co-strengthens-palm-oil-policy/article_63903c66-4403-11e4-ad77-001a4bcf6878.html; and Hershey policy here: http://www.thehersheycompany.com/social-responsibility/shared-goodness/pdfs/Palm_Oil_Sourcing_Policy.pdf


Hershey 'goes beyond RSPO' by Oliver Nieburg, Food Navigator US, 25 Sep 2014; "... we will go beyond RSPO-certified palm oil and achieve a truly responsible and sustainable palm oil supply chain...  the policy drawn up with (TFT)....Greenpeace previously accused Hershey... (responded positively but said) ".. it lacks the requirement of third party verification, and the necessary deadline for full compliance..." ... The Union of Concerned Scientists... added "Hershey can still improve its policy by committing to tracing all its palm oil to the plantation where it was grown"....

Krispy goes with RSPO and Dunkin with TFT. Time to make the donuts less evil - Dunkin’ Donuts cleans up its palm-oil act (and Krispy Kreme follows suit) By Nathanael Johnson 16 Sep 2014 3:16 PM; http://grist.org/food/dunkin-donuts-cleans-up-its-palm-oil-act/ (details at bottom of posting for Krispy Kreme and Dunkin is here: http://www.dunkindonuts.com/DDBlog/2014/09/dunkin_commits_to1.html#sthash.Fztw0n4h.dpbs). 

But criticism here: New Dunkin’ Brands Palm Oil Commitment Doesn’t Go Far Enough, Science Group Says Statement by the Union of Concerned Scientists' Tropical Forest and Climate Initiative. WASHINGTON, D.C. (Sep. 16, 2014) -- Dunkin’ Brands, the parent company of Dunkin’ Donuts and Baskin-Robbins, announced new commitments for sourcing deforestation-free palm oil, but is only applying them to U.S. operations, which would cover only half its stores, according to the Union of Concerned Scientists (UCS). http://www.ucsusa.org/news/press_release/new-dunkin-brand-palm-oil-0436.html

ConAgra adopts greener palm oil policy 08/14/2014) U.S. food giant ConAgra has adopted a new sourcing policy that will exclude palm oil produced at the expense of rainforests and peatlands.
Read more at http://news.mongabay.com/news-index/palm%20oil1.html#yuVARCfIBF9WMjXL.99

Eliminating palm oil from Golden North ice cream not enough to secure Adelaide Zoo deal; Thu 7 Aug 2014, 8:46am; "South Australian ice cream maker Golden North is upset Zoos SA has ditched it in favour of a deal with a multinational, despite the local company avoiding use of palm oil in its foods. Golden North marketing manager Trevor Pomery says the SA company ... Zoos SA chief executive Elaine Bensted conceded Streets ice creams contained palm oil but said other factors led to the deal. "It does have a financial benefit to the zoo and I won't shy away from that, and it is a significant component," she said. "We're a not-for-profit charity, we have a responsibility to our members and that membership responsibility does include financial sustainability. By 2020 all of the palm oil that they buy globally will come from certified sources...."
http://www.abc.net.au/news/2014-08-07/eliminating-palm-oil-golden-north-ice-cream-zoos-sa-streets-deal/5654134

Will other Asian consumer giants follow as Kao goes forest-friendly? Greenpeace challenges Asian consumer companies such as India’s Godrej and ITC and China’s Liby and Nice to make similar commitments as the Japanese beauty products maker commits to forest-friendly policy; http://www.eco-business.com/news/will-other-asian-consumer-giants-follow-kao-goes-forest-friendly/

Johnson & Johnson commits to zero deforestation for palm oil, 1 May 2014; http://news.mongabay.com/2014/0501-johnson-and-johnson-zero-deforestation.html#2KwPWAXErh3wrZ4X.99; J&J will work with The Forest Trust (TFT), an NGO that helps companies implement zero deforestation and zero conflict commitments for various commodities. TFT has recently signed similar commitments with Nestle, Indonesian palm oil giant Golden-Agri Resources, Neste Oil, Ferrero, Reckitt Benckiser, Asia Pulp & Paper, Wilmar, New Britain Palm Oil, Cerelia, Vandemoortele, Mars; Florin, and Delhaize Group, among others.

MPONGOC calls on Malaysian banks, GLCs to commit to sustainable palm oil; The Borneo Post  - 14 April 2014; KOTA KINABALU: Malaysian banks and government-mandated institutions that invest in growth sectors must commit to play a role in improving social and environmental standards in the palm oil industry. The Malaysian Palm Oil NGO Coalition (MPONGOC) ...
http://www.theborneopost.com/2014/04/14/mpongoc-calls-on-malaysian-banks-glcs-to-commit-to-sustainable-palm-oil/; specialists say that in the past Malaysia NGO campaigning on palm oil issues has seen BORA Executive Director Datuk Dr John Payne play a key role. MPONGOC has been seen on-and-off in headlines the last few months and it's well reported in news who are the key leaders.

Wal-Mart Attempts the Holy Grail: Low-Cost Organic Food; April 10, 2014; http://www.businessweek.com/articles/2014-04-10/wal-mart-attempts-the-holy-grail-low-cost-organic-food?campaign_id=DN041014; In one fell swoop, the super-retailer gets credit for being green, dives into a rapidly growing category, and creates a fantastic ideological conundrum for the anti-Walmart faction. Impressive.... Whatever global consciousness may be at work here, it’s true that organic groceries have some of the healthiest financials in the business. Safeway (SWY) recently said sales of its Open Nature brand surged 42 percent in 2013. Costco (COST) has been crowing about its trade in select organic products, such as milk and kale. “It’s a big business; it’s growing fast,” Richard Galanti, Costco’s chief financial officer, said on a recent conference call.
Of course both Wal-Mart and Target can use their scale to squeeze great deals out of farmers and suppliers—probably better deals than smaller grocery players, such as Fairway (FWM) and Sprouts Farmers Market (SFM), or even Safeway, can get......

Cargill commits to zero deforestation, but environmentalists have questions; http://news.mongabay.com/2014/0409-cargill-zero-deforestation-commitment.html;
(04/09/2014) After years of criticism from environmental groups, Cargill says it will establish policies to eliminate deforestation, peatlands conversion, and social conflict from its palm oil supply chain. But activists aren't yet sure what to make of the agribusiness giant's pledge. On Tuesday Cargill released a letter it sent to the Roundtable on Sustainable Palm Oil (RSPO), a body that sets eco-certification standards, in response to a Greenpeace Report linking it to deforestation.
Procter & Gamble think they can ignore deforestation - here's how we turn up the pressure; Greenpeace UK (blog); The companies you buy palm oil from are cutting down huge areas of rainforest - Greenpeace has photographic evidence from palm oil companies; http://www.greenpeace.org.uk/blog/forests/procter-gamble-think-they-can-ignore-deforestation-heres-how-we-turn-pressure-20140318

Procter & Gamble bows to pressure on palm oil deforestation; The Guardian,  9 April 2014; http://www.theguardian.com/environment/2014/apr/09/procter-gamble-bows-to-pressure-on-palm-oil-deforestation; Procter & Gamble has bowed to pressure from environmentalists and revealed a new, extensive no-deforestation policy in the production of its products, including demanding fully traceable palm oil from suppliers. In the wake of severe criticism by a ...
and http://www.huffingtonpost.com/2014/04/08/palm-oil-procter-gamble_n_5112715.html?utm_hp_ref=green

Indian food giant to source deforestation-free palm oil; Mongabay.com; http://news.mongabay.com/2014/0319-orkla-zero-deforestation.html; Orkla, a Nordic conglomerate that owns MTR Foods, one of India's major food companies, has established a zero deforestation policy for the palm oil it sources, reports Greenpeace... Orkla's policy commits it to full traceability and bars palm oil produced via forest and peatlands conversion by 2017. There are also provisions for workers rights and local communities.
Read: http://www.orkla.com/content/download/81608/16345118/file/Orkla%20Policy%20for%20sustainable%20palm%20oil.pdf

General Mills ramps up palm oil pledge to consider deforestation; BakeryAndSnacks.com 25 March 2014; http://www.bakeryandsnacks.com/Manufacturers/General-Mills-ramps-up-palm-oil-pledge-to-consider-deforestation; The cereal and snack titan said that while it was a, “relatively minor user of palm oil”, it remained committed to sourcing 100% of its palm oil responsibly and sustainably by 2015 - a pledge it first made in 2010. General Mills said it would continue ...

 Colgate-Palmolive Latest Company to Jump on Deforestation-Free Palm Oil ...; Union of Concerned Scientists  - ‎Mar 24, 2014‎; http://www.ucsusa.org/news/commentary/colgate-palmolive-deforestation-free-palm-oil-0405.html; BERKELEY, Calif. (March 24, 2014) - Just days after General Mills committed to sourcing deforestation-free palm oil, Colgate-Palmolive today released its palm oil sourcing policy. According to the Union of Concerned Scientists (UCS), major companies ...


Supply chain certification news

27 August: In Switzerland, Clariant announced Roundtable on Sustainable Palm Oil Mass Balance supply chain certification for its plant in Gendorf, Germany, in order to meet the increasing demand for sustainable certified palm-based ingredients from customers in the personal care and home care sectors. Gendorf is the first of Clariant’s plants to be RSPO certified and progresses its target to continuously increase the offer of certified palm based products and to have all relevant production sites certified by 2016. http://www.biofuelsdigest.com/biobased/2014/08/27/clariant-to-offer-certified-sustainable-palm-based-materials/


Details of a recent RSPO plus commitment

Krispy Kreme September 2014: http://www.krispykreme.com/about/Contact-Us - Do you use sustainable palm oil? "Krispy Kreme’s responsible palm oil sourcing efforts began in January 2014 with a commitment to only source products for its US locations from suppliers who are certified members of the Roundtable on Sustainable Palm Oil (RSPO), and those who can guarantee compliance with all sustainable palm oil production methods as defined in the RSPO guidelines. Additionally, Krispy Kreme has purchased enough GreenPalm certificates to cover 100% of its estimated usage of palm oil in the United States through the end of 2014.... Krispy Kreme is now expanding its commitment to achieve 100% responsible sourcing of palm oil. By the end of 2016, a large percentage, if not all of the brand’s palm oil usage will be sourced through some combination of RSPO certified segregated supply, RSPO mass balance mixed-source supply, and the purchase of GreenPalm certificates.... Krispy Kreme is expanding its commitment to achieve 100% responsible sourcing of palm oil. By the end of 2016, a large percentage, if not all of the brand’s palm oil usage will be sourced through some combination of RSPO certified segregated supply, RSPO mass balance mixed-source supply, and the purchase of GreenPalm certificates. All of the brand’s suppliers will be required to trace their palm oil sourcing to plantations that adhere to the principles for protecting forests (including High Carbon Stock (HCS)[1] and High Conservation Value (HCV) landscapes), peat lands of any depth, and no exploitation of communities and workers (including respecting human and worker rights and obtaining Free, Prior, and Informed Consent from communities for all development on their lands); and to comply with Roundtable on Sustainable Palm Oil (RSPO) principles and criteria. Krispy Kreme will work with its suppliers to meet these commitments as rapidly as possible, with a deadline for full compliance by the end of 2016. Suppliers who are found not in compliance will be required to submit a viable action plan for closing any identified gaps, or risk removal from the brand’s supply chain.... Krispy Kreme will provide a detailed implementation plan and progress reports on its responsible palm oil sourcing efforts through its Corporate Social Responsibility initiatives."

Food sector news (update 7): European Agency for Food Safety warns on contaminants in palm oil in its May report, insights into processed food reformulations and sustainability

We've been keeping an eye on the food and processed foods sector, and shall try to post up some on some interesting trends or shifts here. Note the billion dollar snacks! Some reckon Hot Pockets and its spin-offs are a $2 billion business. By comparison, Unilever's Magnum is over EUR 1 billion in annual sales.

Also check, Khor Reports' Food Watch http://khorreports-palmoil.blogspot.my/p/khor-reports-food-watch.html

31 Jan 2017: EU food safety body to look again at palm oil health risks

EU food safety body to look again at palm oil health risks, Jan 27, 2017 -- Barilla, Italy's largest producer of baked goods, eliminated palm oil after EFSA's opinion, but Nutella maker Ferrero mounted an advertising campaign to defend its use. EFSA scientists will take into account a report the World Health Organization (WHO) and the U.N. Food and Agriculture Organization (FAO) published in November....http://www.reuters.com/article/us-health-palmoil-eu-idUSKBN15B1YP


24 May 2016: European Agency for Food Safety warns on contaminants in palm oil in its May report, insights into processed food reformulations and sustainability

Editor's notes: 

  • The measure against palm oil shown in the EFSA report is much higher than any I've seen on the same issue from the industry. At a recent talk on food safety at MPOB several weeks ago, the differential was shown was much closer, about 3x (also having improved over time). There is a clear need to reconcile such a wide range of indicated measures on the 3MCPD issue. It would also be good to find out what the real story is on trace contaminants in processed oils and fats. Are there also other trace contaminants arising form the chemical (including hexane) processing of soybean and other oils? Palm oil is different in being physically (rather than chemically) processed, and it clearly needs to address the EFSA position.
  • Russia has removed the palm oil tax idea on concerns about raising prices.

For palm oil, the moment of truth has arrived written by Marta Strinati May 17, 2016... On May 3, the European Agency for Food Safety (EFSA) published a substantial report warning that the contaminants in palm oil are cancerous and genotoxic, meaning it causes damage to DNA that can be transmitted to children. For one of those toxins, 3-mpcd, the EFSA set a threshold of 0.38 micrograms per kilogram of body weight, a dosage which, today, has been largely exceeded by the population, especially by children, teens and even infants. According to EFSA’s opinion, the food industry made a last attempt to misinform, claiming that the processing contaminants have also been found in other refined vegetable oils. But the report is clear: Palm oil contains six to 10 times more.... Big Food has known for 12 years that the palm oil used in food carries with it toxic and cancerous contaminants. Documents from the authorities and multinational food producers clearly show that the risks connected to consumption of low-quality vegetable fat were known. Those parties discussed possible solutions, but never offered up a remedy....But the rainforests are far away, and saturated fats aren’t very scary. Knowing that a food eaten so much by children contains substances that cause cancer has set, again, the spotlight on the battle against palm oil.... http://ilmanifesto.global/for-palm-oil-the-moment-of-truth-has-arrived/


Big brands are pushing up on reformulations - Nestle reports for 2014 6,973 products with reduced sodium, sugars, trans-fat, total fat, calories or artificial colourings (up from 3,317 and 4,221 number of products changed in 2012 and 2013). Reducing sugar and fat in ready-to-drink products (product example: 54% total sugar reduction, 45% total fat reduction, 25% more protein), substitute partially hydrogenated oil with high oleic soybean oil (product example, 45% SFA reduced, 25,800 tonnes oil substituted and 9,900 tonnes trans fat removed), full fat ice cream case study (new mix recipe: -28% fat, increased protein content, no starch), instant noodle case study (15% sodium reduction whilst improving taste, 50% SFA reduction through pre-drying and oil blend optimization), micronutrients (example, biofortification of maize, cassava, what etc). 


Source: Nestle presentation, December 2015



18 April 2016: Food safety issues in veg oils, Russia mulls tax on sugar and palm oil?


Editor's note: In AmBank news update, "Putin said that Russia should consider labelling palm oil products. As an alternative, Russia may consider an excise duty on palm oil products." A reader who checked with Russia trade specialists said that is not true. At an annual televised call-in, a question on putting cigarette-style health warning on palm oil products, Mr Putin replied that it not clear that palm oil is quite as bad as tobacco.

Vladimir Putin: $2bn linked to Panama Papers was spent on expensive classical instruments - and what else we learnt from Russian President's phone-in by Roland Oliphant, moscow  14 APRIL 2016; .... Intermission II: Cows, sanctions and unhealthy palm oil: Another intermission, this time to a cattle farm. The farmers have two questions: first, what happened if Western sanctions against Russia are cancelled, and consequently Russia's retaliatory embargo on Western food. That measure has been a boon for Russian farmers, allowing them to squeeze into sectors, including cheese, that had been dominated by foreign imports..... The second question is a request to put cigarette-style health warnings on palm oil products. Mr Putin says he doubts sanctions will be cancelled soon, but that "other support" may be considered for farmers when they are. And it is not clear that palm oil is quite as bad as tobacco, he adds. http://www.telegraph.co.uk/news/2016/04/14/vladimir-putins-phone-in-with-russia/

Russian Government to Introduce Tax on Sugar and Palm Oil The Moscow Times Feb. 05 2016; ... The list of goods subject to the new tax include palm oil and sugary drinks. The list may also include electronic cigarettes, potato chips and other products with high levels of fat and sugar, two unidentified federal officials told Vedomosti. The idea was supported by Russian President Vladimir Putin, both officials said..... According to an unidentified representative of the Ministry of Economic Development, the issue is already being developed. “We have the instructions from the government on this subject and in the near future (within a few weeks) will present suggestions and calculations,” he was quoted by the newspaper as saying. The representative pointed out the new measure is aimed not only at bringing money into the federal budget but also at reducing the consumption of products with high levels of sugar and fat.... http://www.themoscowtimes.com/business/article/russian-government-to-introduce-tax-on-sugar-and-palm-oil/558796.html



At MPOB PAC Forum, 14 April 2016, a presentation by Prof Dr Aishah on food safety issues, and a useful slide on edible crud oil risk matrix - pesticids, PAH, mineral oil, dioxins and PCBs and heavy metal (lead):


22 June 2015: India  PepsiCo to cut down salt, sugar content in packaged foods and FSSAI setting up an expert committee to regulate salt, sugar and fat in foods


PepsiCo to cut down salt, sugar content in packaged foods By Ratna Bhushan, ET Bureau | 22 Jun, 2015; NEW DELHI: PepsiCo has stepped up work on reducing salt and sugar in the beverages and snacks it sells in India amid growing public concern over high levels of some ingredients in packaged
foods available in stores.  The US-headquartered food and beverage giant is likely to roll out the refined products ahead of schedule, executives aware of the development said. Last week, the Food Safety & Standards Authority of India (FSSAI) had said that it is setting up an expert committee to regulate salt, sugar and fat in foods ..
http://economictimes.indiatimes.com/articleshow/47762685.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst


28 May 2015:  The rising distrust of Big Food (largest 25 companies saw their control slip from a combined 49.4% share in 2009 to 45.1% share in 2014) and the beef-leather consumption divergence


Big Food's Big Problem: Consumers Don't Trust Brands - Industry Giants Shift Strategy To Win Back Health-Focused Americans By E.J. Schultz.   Published on May 25, 2015;
This rather unappetizing statement was tucked into a request for proposals recently sent to ad agencies: "Most of our food supply comes from factory farms, is dependent on GMOs and chemicals, and is not sustainably grown or raised." The inflammatory language sounds like the typical musings of a fiery activist ready to take on Big Food. But it actually came from the Kashi brand owned by industry giant Kellogg Co. The brand is seeking ideas to "re-establish our identity in the natural foods movement." The RFP, which was recently obtained by Ad Age, is a small but telling example of how the food industry has been shaken from its core, forced to reinvent itself in the face of shifting consumer demands. Families once reliably heaped their plates with products such as Stove Top stuffing from Kraft Foods, Hamburger Helper from General Mills and Kellogg cereals, along with similar products from other processed food titans. But now those consumers are increasingly migrating to smaller, upstart brands that are often perceived as healthier and more authentic.....The rapidly shifting tastes have forced executives into taking some dramatic steps. They are racing to reformulate iconic products like Kraft's Mac and Cheese, while acquiring smaller brands in hopes of reinventing themselves to appeal to today's finicky consumers. But their search for growth comes amid intense pressure to cut costs as bottom-line focused private equity firms such as 3G Capital lurk.
Some $18 billion in sales have shifted from large to small companies from 2009 to 2014 across all consumer packaged good categories, according to report by Boston Consulting Group and IRI. Credit Suisse recently isolated the changes in market share among food and beverage companies and found that the largest 25 companies saw their control slip from a combined 49.4% share in 2009 to 45.1% share in 2014. Their "dominance of the core U.S. market seems to be slowly eroding," Credit Suisse stated in a report..... http://adage.com/article/cmo-strategy/big-food-falters-marketers-responding/298747/

Your Salad Lunches Are Killing American Leather - Diets and droughts have made cattle hide more expensive, creating a leather shoelace crisis May 27, 2015 by James Tarmy; “Two years ago the hides cost me $50, and that didn’t seem so bad. But now they’re $112,” Howlett sighs. “Twelve bucks starts to feel like a pretty raunchy deal.” As a middleman between cattle ranchers and shoe sellers, Howlett has limited ability to pass along her rising costs. Auburn’s sales have begun to decline, to $19 million in 2014 from $20 million the year before, and net profit has been cut in half.
Leather has always been a byproduct of the meat industry, and as Americans’ beef consumption grew over the 20th century, the leather industry grew with it. The past three decades, though, have seen a decline of about 28 percent in Americans’ appetite for beef, and the supply of hides has dwindled accordingly. At the same time, drought in the Midwest has pushed up feed prices. The result is that America has fewer and more expensive cows. Meanwhile, the world’s consumers still want leather goods.... http://www.bloomberg.com/news/features/2015-05-27/your-salad-lunches-are-killing-american-leather?cmpid=BBD052715

19 April 2015: Fight for $15 minimum wage and unionization may raise fast food prices; zero food price inflation may trigger supermarket price war and more according to Citi Research, Majority of Australia sold packaged foods found to be unhealthy, Coles fined A$2.5 m for 'fresh' bread claims


Burger King Founder Says Higher Wages Could Kill Off ‘Dollar Menus’ by Nolan Feeney @NolanFeeney   April 15, 2015  “I see a lot of $10 hamburgers arriving on the scene,” David Edgerton says. Burger King co-founder David Edgerton says fast food workers pushing for higher wages could spell the end of the “dollar menu,” and usher in an era of higher-quality, more expensive convenience restaurants. Edgerton, 87, spoke to TIME on Wednesday as fast-food workers around the world staged protests and strikes—some at Burger King locations—as a part of the “Fight for $15” campaign, which calls for a $15 per hour minimum wage and the right to unionize. “What’s going to happen, really, is you’re going to see less and less of the quick and dirty kind of places,” said Edgerton, who founded the fast food giant with James McLamore in 1954 and now serves on the board of Avantcare, a company that makes nutritional products to help treat addiction. “You’re not going to be able to run these places [paying workers] $15 an hour or whatever it will be.”... http://time.com/3823384/burger-king-founder-minimum-wage-mcdonalds-protests/?xid=newsletter-brief

Next blow for Woolies, Coles: zero food price inflation Apr 15 2015| BRISBANE TIMES| Stalled prices for goods such as wheat, sugar and dairy are likely to cost Australia's supermarket giants more than a price war, according to Citi Research.... http://www.afr.com/markets/commodities/agriculture/next-blow-for-woolies-coles-zero-food-price-inflation-20150414-1mkh5e

Majority of packaged foods found to be unhealthy Down Under 13 April 2015 http://mobile.foodnavigator-asia.com/Markets/Majority-of-packaged-foods-found-to-be-unhealthy-Down-Under/?utm_source=newsletter_daily&utm_medium=email&utm_campaign=14-Apr-2015&c=g5U1F%2FHXoYolJTQnOm2tj2KnTMZZv3qc#.VTMgcJ2wqTN
Coles fined A$2.5 m for 'fresh' bread claims 10 April 2015 http://mobile.foodnavigator-asia.com/Policy/Coles-fresh-bread-claims-Fined-A-2.5m/?utm_source=newsletter_daily&utm_medium=email&utm_campaign=14-Apr-2015&c=g5U1F%2FHXoYoCEJZoZiNQwvxcC%2Bf8IObS#.VTMgbZ2wqTN


14 March 2015: Ferrero plans first factory in China


Ferrero plans first factory in 'strategic' Chinese market 11-Mar-2015; Mars holds a 39% value share of the Chinese chocolate market, but lost some ground in 2014 to Ferrero and Hershey, both of which grew their share to 12%, according to Euromonitor International.... Local news reports claim the Xiaoshan factory will produce 30,000 metric tons of chocolate and candies annually... According to Euromonitor, Ferrero has doubled chocolate sales in China over the past five years ot reach $190m in retail value sales in 2013...the firm currently manufactures toys for its Kinder brand in China, but products are imported from outside the country. Ferrero operates 20 plants worldwide including ones in India, Russia and Australia...Euromonitor expects a further $1bn of sales in chocolate confectionary in the next five years, representing a compound annual growth rate of 7%... Euromonitor recently wrote: ".. seasonal products and a culture of gift giving are prevalent in the Chinese market, which makes it a particularly conducive market for both Lindt and Ferrero.... "
http://mobile.foodnavigator-asia.com/Business/Ferrero-China-factory-plans-revealed/?utm_source=newsletter_daily&utm_medium=email&utm_campaign=12-Mar-2015&c=g5U1F%2FHXoYppeWyjc906DKwECOgNgUCZ#.VQQPJZ2wqrR

16 February 2015: Ferrero patriarch - "the richest candy man on the planet" - dies at age 89; Milka-Cola premium milk beverage


World’s Richest Candy Maker and Nutella Founder Died on Valentine’s Day by Maya Rhodan @m_rhodan   1:15 PM ET; Owner of Italian chocolate company Ferrero dies at age 89. Michele Ferrero was the patriarch of the Ferrero family, whose company spawned Ferrero Rocher chocolates
Ferrero’s father created what would later be widely known as Nutella during World War II when cocoa was in short supply. He used hazelnuts to stretch the little chocolate he had. Years later, Nutella is among one of the most beloved treats in Italy and across the world. Forbes described Michele as the “richest candy man on the planet.”.... http://time.com/3710479/michele-ferrero/

Got Coke? Soda maker starts selling 'premium milk' by Associated Press February 3, 2015, 4:02 PM
Coca-Cola is coming out with premium milk that has more protein and less sugar than regular milk. And it's betting people will pay twice as much for it..... The national rollout of Fairlife over the next several weeks marks Coke's entry into the milk case in the U.S. and is one way that the world's biggest beverage maker is diversifying its offerings as Americans continue turning away from soft drinks.... It also comes as people increasingly seek out some type of functional boost from their foods and drinks, whether it's more fiber, antioxidants or protein. That has left the door open for Coke to step into the milk category, where the differences between options remain relatively minimal and consumption has been declining for decades.... "It's basically the premiumization of milk," Sandy Douglas, president of Coca-Cola North America, said at an analyst conference in November. If developed properly, Douglas said, it is the type of product that "rains money.".... Fairlife, which Coca-Cola formed in partnership with dairy cooperative Select Milk Producers in 2012, says its milk goes through a filtration process that's akin to the way that skim milk is made. Filters are used to separate the various components in milk. Then more of the favorable components are added, while the less desirable ones are kept out. The result is a drink that Fairlife says is lactose free and has 50% more protein, 30% more calcium and 50% less sugar than regular milk.... The same process is used make Fairlife's Core Power, a drink marketed to athletes that has even more protein and calcium than Fairlife milk..... http://www.latimes.com/business/la-fi-coke-milk-20150203-story.html


11 February 2015: PepsiCo and Coca-Cola show North Am growth to offset ROW slowdown; news links on food sector giants - Coke, Pepsi, McD, Unilever, General Mills, Mondelez/Kraft, Nestle... headlines on USD impact, earnings drag on demand in recent months


 PepsiCo’s Fourth-Quarter Profit Tops Analysts’ Estimates 'By' Duane Stanford 8:11 PM AWST  February 11, 2015 (Bloomberg) -- PepsiCo Inc., whose stable of brands includes beverages and the Frito-Lay snack division, posted fourth-quarter profit that topped analysts’ estimates even as currency headwinds eroded sales.... PepsiCo generated organic sales growth of 5 percent last quarter, helped by gains at its snack and beverage businesses. While currency fluctuations turned that increase into a 1 percent drop, the results showed overlying strength at the company. It also pledged to return $8.5 billion to $9 billion to shareholders through dividends and share buybacks in 2015..... PepsiCo right now has a lot of momentum,” Chief Financial Officer Hugh Johnston said in an interview. The company has increased U.S. sales by $1 billion, lifted by new products such as Naked Juice Kale Blazer and Mountain Dew Kickstart, Johnston said..... New products now account for 9 percent of sales, compared with 7 percent earlier years ago, a sign the company’s innovation push is paying off.
Chief Executive Officer Indra Nooyi also has forged a truce with activist investor Nelson Peltz’s Trian Fund Management LP, who had insisted she split the company’s snack and beverage businesses.....  Coca-Cola also beat estimates with its fourth-quarter results on Tuesday, saying that North American growth was helping offset a slowdown in the rest of the world..... That’s the case with PepsiCo too, Johnston said..... Overall, currency will reduce earnings growth by 7 percent this year, PepsiCo said. The company expects organic sales growth in the mid-single digits.... http://www.bloomberg.com/news/articles/2015-02-11/pepsico-profit-tops-estimates-after-growth-offsets-currency-woes

Unilever Profit Rises Despite China Sales Slump - Consumer-Goods Group Reports 6.8% Rise in Full-Year Net Profit on a 2.7% Fall in Revenue, By  Peter Evans; LONDON—Unilever PLC said weakening demand in emerging markets, especially China, has showed no sign of firming up this year even as the consumer-goods group reported a rise in profit in 2014... “There are still huge amounts of uncertainty in the world,” Jean-Marc Huët, Unilever’s chief financial officer, said Tuesday. “We’re not going to be too bullish at this time.”... http://www.wsj.com/articles/unilever-profit-rises-despite-china-sales-slump-1421739275

Coke Says 2015 Will Be a ‘Challening Year’ - WSJ
http://www.wsj.com/articles/coke-says-2015-will-be-a-transition-year-1423572751?mobile=y

55% - The decline in Coca-Cola’s fourth-quarter profit, which was pulled down by weakening foreign currencies and one-time charges. The company warned that overseas business conditions could worsen this year. .. http://tk.wsjemail.com/track?type=click&enid=ZWFzPTEmbXNpZD0xJmF1aWQ9Jm1haWxpbmdpZD01NjkyNDMxJm1lc3NhZ2VpZD04Njg5MDAmZGF0YWJhc2VpZD02ODIwMDAmc2VyaWFsPTE2OTY1MzQ1JmVtYWlsaWQ9eXVsZW5na0BnbWFpbC5jb20mdXNlcmlkPXl1bGVuZ2tAZ21haWwuY29tJnRhcmdldGlkPSZmbD0mZXh0cmE9TXVsdGl2YXJpYXRlSWQ9JiYm&&&1012011142&&&http://www.wsj.com/articles/coke-says-2015-will-be-a-transition-year-1423572751?mod=djem10point

Pepsi Traders Brace for Dollar Impact on Overseas Sales: Options  Earnings -  Feb 10, 2015; 
rating on the stock, said by telephone Feb. 5. “Pepsi in particular has large exposure to volatility in Russia.” PepsiCo Earnings Analysts forecast PepsiCo on Wednesday will say fourth-quarter net...
http://www.bloomberg.com/news/articles/2015-02-10/pepsi-traders-brace-for-dollar-impact-on-overseas-sales-options

What McDonald's Problems Say About American Taste  industries -  Jan 30, 2015  
invented the concept of fast food. It promised meals that were inexpensive and convenient, that could be eaten on the go and even with one hand while driving. The food wasn't necessarily healthy...
http://www.bloomberg.com/news/articles/2015-01-30/what-mcdonald-s-problems-say-about-american-taste

Unilever Sees No 2015 Improvement; Sales Miss Estimates  Jan 20, 2015; Unilever, whose detergents and deodorants are used by 2 billion consumers daily, said full-year performance will be similar to last year after posting quarterly sales growth that trailed analysts’...
http://www.bloomberg.com/news/videos/2015-01-20/unilever-sees-no-2015-improvement-sales-miss-estimates

General Mills Falls as Slump Prompts Company to Cut Forecast; General Mills Inc., the maker of Cheerios, Bisquick and Yoplait, fell 3.6 percent after slow growth in emerging markets and a lingering slump at home forced the company to cut its forecast. Earnings...
http://www.bloomberg.com/news/articles/2014-11-07/general-mills-tumbles-as-slump-prompts-company-to-trim-forecast

Mondelez’s Cost Cuts Fuel Profit Gains Amid Sluggish Demand  - Earnings -  Nov 5, 2014  
pressure for cutbacks at the company. Mondelez named Peltz to its board in January after Peltz’s Trian Fund Management LP abandoned a proposal for Mondelez to merge with PepsiCo Inc. to spur growth... http://www.bloomberg.com/news/articles/2014-11-05/mondelez-tops-quarterly-earnings-estimates-increases-forecast


Nestle’s Shocking Miss Puts 5% Growth at Risk: Cox  Asia -  Oct 16, 2014; Jon Cox, head of Swiss equities at Kepler Cheuvreux, examines results from Nestle as nine-month sales failed to meet expectations and looks at the economic factors in Asia and Europe that may...
http://www.bloomberg.com/news/videos/2014-10-16/nestles-shocking-miss-puts-5-growth-at-risk-cox

Nestle Revenue Misses Estimates Amid Price Pressure  Europe -  Oct 16, 2014  
Nestle reported nine-month sales that missed analysts’ estimates as deflationary pressure eroded revenue in Europe, providing a setback for the world’s biggest food company in reaching its full-year... http://www.bloomberg.com/news/videos/2014-10-16/nestle-revenue-misses-estimates-amid-price-pressure

Low Oil Is a Help to Consumers: MacDonald  Oil -  Jan 15, 2015  
Allianz Global Investors CIO Global Equities Lucy MacDonald discusses the consumer goods sector in Asia, India's surprise rate cut, and the strengthening U.S. dollar with Bloomberg's Stephen...



23 October 2014:  MCD regionalism, Hot Pockets  & food stamps


McDonald's Discovers Its Inner Locavore and Learns to Love Regionalism By Venessa Wong, October 22, 2014; "McDonald’s (MCD) is taking a new approach to its menu, and it’s all about you... “Customers want to personalize their meals with locally relevant ingredients,” McDonald’s Chief Executive Don Thompson said on Tuesday, after the fast-food giant again posted disappointing earnings. Starting in January, he said, McDonald’s will simplify the core menu to highlight popular items, cut back on items that don’t sell well, and begin to allow regional groups of franchisees to offer more localized versions of burgers, beverages, and chicken and breakfast items...." http://www.businessweek.com/articles/2014-10-22/mcdonalds-discovers-its-inner-locavore-as-sales-struggles-continue?campaign_id=DN102214

Every Food Trend Goes Against Slumping Hot Pockets, Even Government Spending By Venessa Wong, October 22, 2014; "Just about every major food trend is working against Hot Pockets, and Nestlé (NSN:VX) clearly knows it has a problem brand on its hands.... The company tried to revive its line of microwavable meat pouches last year with a foodie makeover, boasting of “premium cuts of meat” and “real cheese” in the new and improved version. But even these quasi-gourmet touches can’t mask the fact that Hot Pockets are processed food sold at a time when consumers are seeking freshness at the expense of frozen options. A beef recall earlier this year also hit Hot Pockets, putting the product at odds with increasing consumer focus on food safety.... Now executives at Nestlé are pointing to another factor in the long-running Hot Pocket cold streak. A temporary boost in federal food-stamp assistance that was introduced in 2009 was allowed to expire in late 2013. Recipients of the Supplemental Nutrition Assistance Program (SNAP) benefits are ”a big part of the consumption of this particular product,” said Chris Johnson, executive vice president of Nestlé Business Excellence, during a sales call last week.... “For our Hot Pockets brand, it was not surprising to understand the value our products offered to the SNAP consumer,” said Molly Fogarty, Nestlé vice president for government relations, wrote in an e-mail. A two-pack of Hot Pockets costs about $2.50, she said, and the 12-count package, for around $11, is even more economical.... Reductions in the food-stamp program haven’t just affected Hot Pockets. Such large grocers as Wal-Mart Stores (WMT), which gets roughly 4 percent of its revenue from food stamps, have also said the SNAP reductions have hurt their U.S. business...." http://www.businessweek.com/articles/2014-10-22/behind-the-hot-pockets-slump-nestl-battles-every-food-trend#r=lr-sr

Nestle: Inside the Hot Pocket Plant; http://www.youtube.com/watch?v=23Tn1kOlyR8

Factoids: Hot Pockets Nutrition, http://caloriecount.about.com/hot-pockets-nutrition-m1493 
Calories in Pepperoni Pizza, 290 calories with 99 calories from fat; http://en.wikipedia.org/wiki/Hot_Pockets cites this: Hot Pockets were invented by Paul Merage and David Merage in the 1970s. They founded the company Chef America Inc. and began producing Hot Pockets in 1983. In 2002 Chef America was sold to Nestlé, and (as of 2012) Hot Pocket products are "now a $4.5 billion category of frozen sandwiches and snacks."