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Regulatory Supermarket satisfaction report Consistent customer satisfaction results at Coles, along with lower satisfaction from Aldi, IGA and Woolworths customers, have placed Coles in a stronger position in overall customer satisfaction according to the most recently released of the Roy Morgan supermarket satisfaction report. The June supermarket satisfaction report revealed that satisfaction levels for IGA and Aldi have been experiencing a decline in the last six months. Woolworths faired better but still dropped by 0.5%, whilst Coles remained unchanged. Among Aldi customers, 92% were satisfied, followed by IGA (87%), Coles (87.5%) and then Woolworths (85%) for the six month’s average to June 2011. Over the previous five years since June 2006, while the satisfaction level has fluctuated for all brands, it has trended down for Aldi, been steady for IGA, and following ratings of less than 85% for both Coles and Woolworths in 2008, both are trending upwards again. Norman Morris, Industry Communications Director, Roy Morgan Research, said, “With ailing satisfaction at three of the four supermarkets, satisfaction levels maintained by Coles from the start of 2011 are becoming increasingly more important each month as satisfaction levels of the other three major supermarkets drop. “Coles are relatively stronger in their positioning and now on par with IGA who appear to have hit a speed bump according to the … results, dropping by a couple of percentage points overall. Despite this, IGA still have the highest levels of satisfaction in four out of nine departmental categories, whilst Coles do not lead satisfaction in any department. “Even though Aldi have dropped again … , they are still a full five percentage points ahead of nearest rival IGA and also manage to hold onto top position in four out of the five remaining satisfaction categories, which includes bread, dairy, packaged groceries and general merchandise, Woolworths pulling back ahead of Coles in the last fresh category, seafood,” he concluded. Shoppers changing purchasing behaviour Grocery stores and food manufacturers need to reassess traditional approaches to shopper marketing, according to the Packaged Facts report Food Shopper Insights: Grocery Shopping Patterns in the U.S. The Food Shopper Insights Survey, which polled 2000 adults in the USA who had shopped for groceries within the previous 24 hours, showed that a substantial proportion of grocery shopping trips were organised around narrowly focused missions, such as purchasing items needed for the next few days or picking up depleted grocery items. One in three were shopping to buy what they needed for a specific meal or recipe, one in five were picking up food in a grocery store rather than using fast food, and one in ten went grocery shopping because they were hungry. Given the prevalence of narrower missions rather than pantry-stock goals, half of the grocery shoppers had spent less than US$50 and bought fewer than 15 items on their most recent grocery shopping trips. Even though food shoppers are often operating within a short time horizon, grocery shopping remains an activity that involves preparation. A substantial majority of grocery shoppers do some kind of planning beforehand, such as making a shopping list, gathering coupons, looking for product or sale information or looking for menu or recipe ideas. This preliminary preparation provides an opening where conventional grocery marketing increasingly falls short. For example, traditional promotional circulars and flyers reach only 21% of all grocery shoppers prior to their most recent grocery shopping trip. Not surprisingly, younger grocery shoppers are especially likely to use new media to get ready for their grocery shopping trip. “With nearly four in ten grocery shoppers frequently using social media and networking on mobile devices such as cell phones and smart phones, location-based shopping assistants on mobile devices may soon upend conventional approaches to in-store shopper marketing. The Meijer supercentre chain is testing a ‘Find-It’ application that allows shoppers to instantly locate any of the more than 100 000 items stocked, plus it displays current sales and other promotions going on in a specific store,” said David Sprinkle, publisher for Packaged Facts. High tech continues to be balanced out by old school; word-of-mouth remains a critical component of the path to purchase. Women are especially likely to turn to others for product and recipe information that will affect their purchase decisions in the grocery store. Around three in five often try new grocery products that are recommended by family and friends, and more than half get ideas from TV cooking shows about what to eat and cook. Additional findings of the Packaged Facts research involve the considerable loyalty of grocery shoppers to their chosen stores. Nearly half of those surveyed were “very satisfied” with their most recent grocery shopping experience; 75% had only one store in mind before they last set out to go food shopping, and 59% went to the same grocery store where they had been shopping for five years or more. Around one in four chose to shop at the store where they went on their last grocery shopping trip because of the store’s savings/loyalty club cards. The bottom line is that once a grocery store captures new customers, they will likely keep shopping there – as long as the food store meets their evolving needs. Food Shopper Insights: Grocery Shopping Trends in the U.S. (www.packagedfacts.com/Food-Shopper-Insights-6077723) provides original and actionable analysis to enable grocers and food manufacturers, marketers and brand managers to learn more about how grocery shoppers decide where to shop and how they make up their minds about what to buy. By anchoring its analysis in grocery shopper accounts of very recent grocery shopping trips, this report taps directly into the actual contexts, motivations, and triggers framing the behaviour of grocery shoppers. The report analyses grocery shopper behaviour from several angles: before the store motivators and shopping trip planning tactics; the in-store behaviours, preferences and dislikes of grocery shoppers; how wellness and obesity concerns influence the purchase decisions of grocery shoppers and their attitudes toward food manufacturers and grocery stores; the at-the-shelf mindset of grocery shoppers in purchasing of a cross section of food products; and planned and impulse purchase decisions in the context of sales and promotions, attitudes toward national brands and store brands, personal and family preferences, the lure of convenience, and the force of habit. The final chapters of the report segment grocery shoppers in terms of demographic characteristics, life stages, the key motivators for their most recent grocery shopping trip, and grocery shopping habits. Woolworths Fixed Price Guarantee has mixed response In July, Woolworths Supermarkets announced its Fixed Price Guarantee on five popular fruit and vegetable lines. Specific types/packs of apples, carrots, onions, tomatoes and, in most states, potatoes, are to be sold at a fixed price for the next 12 months. The announcement was welcomed by the National Heart Foundation. National Director of Healthy Weight Susan Anderson said that since the floods earlier this year many Australians had concerns about the difficulty of including enough fruit and vegetables for a healthy diet within a family budget. “This move will make it much easier for Australian families to budget and plan for a healthier diet. The Heart Foundation recommends that everyone eat two serves of fruit and five serves of vegetables every day, but the reality is not enough of us are doing that. National surveys of Australian kids show that only 61% of 4–8 year olds eat two serves of fruit and less than a quarter met the guidelines for vegetables,” she said. However, the new initiative has been met with caution by AUSVEG, the national peak industry body for vegetable and potato growers. AUSVEG Public Affairs Manager William Churchill said that they are hesitant about any fixed price structures that operate outside the supply and demand market forces. “What Woolworths has implemented is an artificial market mechanism to handle this new initiative, and it causes AUSVEG some concern for vegetable and potato growers across the country. While this system could be good for growers supplying for Woolworths when prices are competitive, we’re yet to see the details on what happens when competing retailers drop the price of their products below what Woolworths is charging,” said Mr Churchill. “Setting an artificial price mechanism bypasses market forces such as consumer behaviour, weather variability and other factors. These will ultimately distort future forecasts within the market,” he added. Similarly, peak horticulture organisation Growcom said that it would adopt a ‘wait and see’ attitude to the initiative. Chief Executive Officer Alex Livingstone said that while Woolworths’ fixed pricing scheme might represent greater security for consumers, it may be bought at less security for growers. “The scheme could be good for those growers who have a guarantee of consistent pricing for 12 months for large volumes of produce; this, of course, assuming that the price paid to growers is also fixed. However, those growers who supply their produce to Woolworths through a third party may find the cost pressures required to offer consumers guaranteed fixed prices are being passed on to them. “If the scheme gets more customers into the fruit and vegetable section of the supermarket then that could benefit all produce lines, not just the staples. And a customer saving money buying a staple like brown onions might go on to also select value added lines such as bagged salad or buy more fruit and vegetables overall,” said Mr Livingstone. “Nonetheless, interfering with the laws of supply and demand through a price fixing scheme may have unforeseen consequences, and it is hard to know how it will affect growers in the long term … Is this business model sustainable? Only time will tell,” he concluded. Woolworths reduces salt in bread and commits to DIG labelling The Federal Government’s Food and Health Dialogue identified bread as often containing high levels of sodium. As a result, Woolworths has been actively taking steps to reduce salt levels in this supermarket staple. A recent study by the George Institute for Global Health in Sydney noted Woolworths as a significant improver in the salt reduction area, well ahead of other supermarket and bakery chains. In addition to soft white bread, Woolworths has also reduced salt in wholemeal, grain and sourdough varieties. With more than 80 000 tonnes of store-baked bread rolls and loaves sold each year, the salt reduction amounts to some 268 tonnes – the equivalent of approximately 12 semi trailers full of salt. Woolworths General Manager, Fresh Food, Pat McEntee said, “White bread is still a firm family favourite and a core pantry staple of most Australian households. Our challenge was to take as much salt out as we could without sacrificing the great flavour that families love and we’re delighted to have achieved our target. We’ve also tested our bread with our customer tasting panel and they’ve given our loaves and rolls the seal of approval.” Woolworths’ move to reduce salt in store-baked soft white bread follows last year’s commitment to reduce the salt in Homebrand packaged bread, which saw an additional 50 tonnes of salt removed.
Woolworths has also committed to labelling 100% of its private label products with Daily Intake Guide (DIG) front-of-pack nutritional labels within the next 12 months. This has been welcomed by the Australian Food and Grocery Council, the architect of this scheme. AFGC has stated that it and its retail partners will continue to roll out user-friendly consumer education material in retail stores and magazines to ensure consumers know how to use the nutritional information to put together a balanced diet (www.mydailyintake.net). Aldi and Spring Gully Foods mislead on origin of honey The Australian Competition and Consumer Commission (ACCC) has accepted court enforceable undertakings from Aldi Foods Pty Ltd and Spring Gully Foods Pty Ltd in relation to misleading claims about the composition of Aldi’s ‘Just Organic’ honey. “Consumers expect products to match the description on the label. In this case, consumers expected premium honey sourced from Kangaroo Island. The ACCC took action to protect the interests of the consumer and the reputation of Kangaroo Island honey,” said ACCC deputy chair Peter Kell. The ‘Just Organic’ honey label affixed to the product between early January 2008 and mid 2010 claimed it was ‘produced’ or ‘made with honey produced’ on Kangaroo Island. Kangaroo Island has the only remaining pure population of the Ligurian honeybee in the world. The product produced during this period actually contained from 0.84% to 50.07% Kangaroo Island honey, with the exception of one batch which contained 100% honey from Kangaroo Island. Subsequently, the label of the product produced from mid 2010 to late
2010 stated that it was a blend of Australian organic certified honey
and honey ‘produced on Kangaroo Island’ when it only contained
between 0.076% and 10.13% Kangaroo Island honey. Aldi Foods and Spring Gully have accepted that the labels are likely to have misled consumers about the composition of the product in contravention of the Trade Practices Act 1974 (Competition and Consumer Act 2010 from 1 January 2011). Both Aldi Foods and Spring Gully Foods have provided a court enforceable undertaking to the ACCC that they will:
The undertakings are available on the ACCC website (www.accc.gov.au/content/index.phtml/itemId/6029). Regulatory BPA: an Australian and international perspective The debate surrounding the health risks associated with bisphenol A (BPA) has been ongoing for a number of years, with Japan voluntarily reducing the use of BPA in the canning industry as early as 1998 (Environmental Working Group, www.ewg.org/node/20938). Since then food regulators around the world have either supported bans on the use of BPA, particularly in baby bottles, or have maintained the safety of the product, provided the BPA containing product is used appropriately. In September 2010, the European Food Safety Agency (EFSA) indicated that they had not found any new evidence supporting a revision of the current Tolerable Daily Intake for BPA of 0.05 mg/kg body weight. Nor did they find any evidence of the neurobehavioural toxicity of BPA. In November 2010, an international panel of 30 World Health Organisation
(WHO) experts found no scientific evidence indicating that BPA should
be banned from food products as a public health measure, stating that
introducing public health measures, such as a ban on BPA, would be “premature”.
They concluded that BPA was mostly “eliminated” and does
not accumulate in the body. This outcome is also in line with surveys carried out by consumer group Choice and Food Standards Australia and New Zealand (FSANZ). The former found that none of the 38 canned foods they tested contained BPA levels above the European Union’s limit of 660 parts per billion (ppb). FSANZ found that consumers are exposed to very low levels of BPA through food and beverage consumption. Only a limited number of products were found with detected levels of BPA, with no detectable levels of BPA found in infant formula. They did, however, acknowledge that there are some unresolved uncertainties with respect to BPA, and are awaiting the results of further US-conducted studies. Results of the FSANZ survey and a fact sheet on BPA can be found at www.foodstandards.gov.au/_srcfiles/BPA%20paper%20October%202010%20FINAL.pdf and www.foodstandards.gov.au/consumerinformation/bisphenolabpaandfood4945.cfm respectively. In contrast, in September 2010 Canada declared BPA to be toxic, adding it to Schedule 1 of the Canadian Environmental Act 1999. A 60-day public comment period generated 21 submissions from various interest groups. Some of the key responses to the comments provided through these submissions were that BPA i) has the potential to remain stable or degrade only slowly under low or no oxygen conditions, ii) can be assimilated by organisms and can to some extent accumulate in tissues of biota, iii) constitutes or may constitute a danger to human life or health, so application of precaution is warranted and iv) there is a reasonable and increasing evidence from animal studies to suggest concern and justification for the application of precaution (www.gazette.gc.ca/rp-pr/p2/2010-10-13/html/sor-dors194-eng.html). At the time this issue went to press, the European Commission was reported to be banning the use of BPA in plastic baby bottles from 1 March 2011; however, they did not intend to extend their ban to other materials. … industry taking the lead anyway In Australia, there has been a voluntary phase out by major retailers and manufacturers of baby bottles containing BPA which began on 1 July 2010, after manufacturers conceded the level of consumer concern. BPA-free products, including baby food cans, will be available within 12 months, with metal closures on glass jars and bottles to follow soon afterwards. Overseas, a 2009 survey of 20 packaged food companies by US-based Green Century Capital Management Inc, which is is the administrator of the Green Century Funds, a family of environmentally responsible mutual funds, reviewed the degree to which these companies were sourcing and implementing BPA alternatives, their intentions to phase out BPA where alternatives exist and their transparency regarding the BPA issue (www.greencentury.com/pdf/globaldocuments/Seeking_Safer_Packaging.pdf). Fourteen of the companies responded, with Sara Lee and Unilever among the non-responders. Hain Celestial, Heinz and Nestlé were the top scorers (scoring overall C, C- and D+ respectively). Hain Celestial has been sourcing and testing BPA alternatives, finding alternatives for low acid foods, with transition underway. Heinz has eliminated BPA from its baby food can lacquers, with the view to removing epoxy lacquer from its other cans. They were also testing linings with lower migration properties. Nestlé had initiated several projects to explore alternatives, with substitutions also underway. ConAgra, General Mills, PepsiCo and Kellogg were, at the time of the survey, all seeking BPA alternatives. New mandatory reporting obligations for the food industry
The new Trade Practices Amendments (Australian Consumer Law) Act (No 2) 2010 (ACL No. 2) became law on 1 January 2011. Of particular relevance to the food industry, the ACL No. 2 creates obligations to report serious injuries or illnesses caused by consumer goods, including food. Although an exemption from the reporting obligation for the food industry had been foreshadowed, the Regulations released on 18 November 2010 do not fully exempt the food industry. Mandatory reporting obligations for the food
industry
The report must be made within two days regardless of the day on which the supplier becomes aware of the incident. A supplier who fails to make a report when required is liable to be convicted of a criminal offence and fined. “Serious injury or illness” includes an acute physical
injury or illness that requires medical or surgical treatment by a medical
practitioner or a nurse. Of relevance to the food industry, a “serious
injury” will include an internal injury or an illness, such as
a food poisoning. The bar for the reporting requirement has been set low. For example, if a customer makes a complaint that a supplier’s food product has caused a death, serious injury or illness, the supplier must make a report. A supplier is only exempted from reporting if it is “clear” that the incident was not caused by the supplier’s goods or “very unlikely” that the incident was caused by the goods. A supplier may be unable, within the short reporting deadline, to make a conclusive decision about the cause of the incident. Guidance issued by the Australian Competition and Consumer Commission (ACCC), which is responsible for enforcing the new obligation, suggests that suppliers should be cautious about choosing not to report incidents. Proposed reporting exemptions for the food
industry The Regulations list a number of laws under which there are existing notification obligations (“the listed laws”). If the injury or illness must be notified by a person under the listed laws, the supplier will be exempted from having to report under the ACL No. 2’s mandatory reporting regime. Although the reporting requirements under the listed laws may have some impact on the food industry’s reporting obligations, often adequate details of the alleged illness will not be known (by either the supplier or the consumer) at the time the supplier becomes aware of the incident. Without such information, a supplier will be unable to assess whether the illness is one which another person is required to notify under the listed laws, thus the supplier will be required to make a report under the ACL No. 2. Consequences for the food industry Fast food labelling in New South Wales In an Australian first, all NSW major fast food retailers will be required to display kilojoule information under new laws coming into effect on 1 February 2011, with a 12 month implementation period. Any standard food outlet with 20 or more stores in NSW or 50 or more stores nationally will be required to comply. This is part of the NSW Government’s initiative to improve health and reduce obesity across the State, and follows the Fast Food Forum held in August 2010. The new laws mean that businesses such as major fast food, bakery, coffee and doughnut chains will be required to clearly and legibly place the kilojoule content of each item on their menu board as well as prominently featuring the average adult daily energy intake of 8700 kJ. The kilojoule content must be adjacent to the price of the product and be at least the same size as the price of the product. According to NSW Premier Kristina Kenneally, consumers will now be able to make an informed choice about their food and have the benefit of clear information about the kilojoule content of the food they order from fast food businesses as well as take into account their own total daily energy requirements before they buy. McDonald’s CEO, Catriona Noble, believes that menu board labelling is another way to help Australians make informed food choices and forms one part of a broader solution working in collaboration with the government to address the public health issue of obesity. She said that McDonalds are committed to continue to collaborate with government to help evaluate the menu board labelling scheme. Albert Baladi, Managing Director of KFC and Pizza Hut Australia, said that the Premier has set the standard for industry consultation. “We share her vision of providing consumers with information to make sensible eating choices,” he added. The NSW Government has also committed $1.5 million to an evaluation of the initiative and supporting educational materials to help consumers understand kilojoule labelling and energy consumption. A Reference Group drawn from public health, consumer advocates and industry, which has been actively involved in developing this initiative, has been established and will participate in the evaluation and monitoring process over the coming 12 months. The NSW Food Authority will be working with industry during the implementation to assist them in meeting the new requirements. The new rules are designed to establish a level playing field across traditional fast food chains as well as café and coffee chains, bakery chains, snack food chains, juice bars and ice-cream chains. For example, any ‘healthy image’ conveyed by these businesses will have to be supported by genuine nutritional data. Primary Industries Minister Steve Whan said, “Similar models overseas, such as the United States and the United Kingdom, are beginning to demonstrate long-term benefits to community health, including moves by the standard menu food retail industry to produce and market healthier product ranges.” The Heart Foundation – which is part of the Reference Group – has welcomed the announcement. Tony Thirlwell, NSW Heart Foundation CEO, said, “There is building evidence that menu labelling encourages people to make healthier choices, especially parents choosing meals for their children. Given the fact that 4.5 million Australians eat out at fast food or snack food outlets every day, we must learn by doing. “Labelling information needs to be on menus where it’s going to be noticed if we’re serious about helping people make healthier choices and reducing the risk of heart disease, the number one killer of Australian men and women. “The Heart Foundation congratulates the NSW Government for their commitment to menu labelling and supports future moves to also provide consumers with information on saturated fat and salt,” he concluded. The NSW Government intends to evaluate the scheme within one year with a view to investigating other nutrients such as saturated fat and salt. Calls for tighter food recall system In November 2010, the Auditor-General Audit Report No.15 2010-11 on FSANZ was released by the Australian National Audit Office (ANAO) (www.anao.gov.au). In the audit, the ANAO reviewed two trade recalls that highlighted issues of concern, in particular the traceability and recovery of food products involved in a food recall. A trade recall involves recovery of the product from a range of outlets: distribution centres, wholesalers, hospitals, restaurants and other major catering establishments, as well as outlets that sell food manufactured for immediate consumption or food that is prepared on the premises. These recalls are not listed on the FSANZ website and public notification is not required. In contrast, a consumer recall recovers the product from all points in the production and distribution chain, including from consumers, and is listed on the FSANZ website. The two recalls of concern involved semi-dried tomatoes (Hepatitis A) and pawpaw (a bacterial skin contamination). In both instances a voluntary trade recall was implemented. Although there was no requirement for public notice, extensive media coverage occurred in relation to the semi-dried tomatoes, with state and territory health departments issuing media releases advising consumers not to eat particular semi-dried tomato products (see Food Aust. 62(5): 192, May 2010). In the case of the pawpaw, the sponsor (usually the manufacturers or the importer) worked with the State health department, which published a public health notice in newspapers that included how to treat the fruit to minimise the health risk. Subsequent reporting to the ACCC showed that 55% and 70% of potentially affected pawpaws and semi-dried tomatoes respectively were not recovered. In the former, the sponsor indicated that the unrecovered stock had been ‘already on-sold to the public’. The tomatoes, however, could not be reliably traced once they had been distributed to wholesalers and retailers. No further immediate action was taken by any of the parties involved to address the risk of the high level of potentially infected tomatoes remaining in the system, other than FSANZ developing an urgent proposal to address the lack of traceability of semi-dried tomatoes. However, the proposal has since been abandoned, with FSANZ advising that “current arrangements allow these issues to be managed and the need for any additional measures will be considered in future horticulture work”. The ANAO audit specified that, “FSANZ could make more rigorous assessment of the actions detailed in sponsors’ reports which would assist it to determine whether the most appropriate action was taken to reduce risks to consumers. This would also help inform future reviews of the appropriate safety standards within the Code”. ANAO stressed that in the meantime, FSANZ’s actions with respect to future recalls of a similar nature will be significant, particularly as the information that FSANZ provides is used by the ACCC’s Minister to decide whether a satisfactory recall has been conducted and that consumers were protected. They also particularly noted that the requirement for consumers to be advised only applies to a consumer recall and not a trade recall. In response, FSANZ advised that it is working through the Incident Protocol with the States and Territories to resolve the traceability issues and prevent any further contaminated product reaching the market. While AUSVEG, the body representing Australia’s vegetable and potato growers, does not currently represent tomato growers, the outbreak associated with the tomatoes was of concern to them, as would any outbreak of any kind in the vegetable industry. They backed the findings of the ANAO audit, stressing that a more thorough and prompt response to matters of this nature would not only better protect the safety of the Australian public, but also their growers. FSANZ sets up consumer and public health consultative group A new consultative forum, set up to facilitate more effective engagement between consumer and public health groups and Food Standards Australia New Zealand (FSANZ), met for the first time in late November 2010. FSANZ Chief Executive Steve McCutcheon said that the Consumer and Public Health Dialogue would include representatives from peak consumer and public health bodies and public health academics. “This forum is intended to improve FSANZ’s understanding of community food safety and public health issues, and provide for a more effective response from us to these issues. The dialogue will broaden our understanding of the key consumer and public health issues relating to food and help to inform our communication activities. It will also help us better target the research that we do,” said Mr McCutcheon. He said that he hoped the dialogue would strengthen understanding among the representative groups of the work FSANZ does and its processes. “FSANZ is aware of the food-related issues that concern consumers and has already established a grass roots consumer committee to ensure we get feedback on those issues. But we want to ensure that we get a comprehensive understanding all the concerns, including those from public health professionals,” he added. Associate Professor Heather Yeatman from the University of Wollongong chaired the meeting. Other participants included Associate Professor Mark Lawrence (Deakin University), Dr Cliona Ni Mhurchu (University of Auckland) and representatives from CHOICE, Consumer NZ, Public Health Association Australia, Dietitians Association of Australia, Australian Chronic Disease Prevention Alliance, Dietitians New Zealand and Agencies for Nutrition Action NZ. Food Ministers briefed on progress of Food Labelling Review The health implications of caffeinated energy drinks, improvement of public awareness of the nutrition content of take away food and recent international developments and efforts made by Australian and New Zealand industry in phasing out the use of Bisphenol A (BPA) chemicals in baby bottles and food containers were among a range of food and beverage topics discussed at a meeting of the Australia and New Zealand Food Regulation Ministerial Council (Ministerial Council) held in Adelaide in December. The trans-Tasman meeting of Ministers responsible for food was chaired by the Federal Parliamentary Secretary for Health and Ageing, Catherine King who said a highlight of the meeting was a detailed briefing by Dr Neal Blewett who is chairing the independent Review of Food Labelling Law and Policy (the Review). “This historic review has generated enormous public and industry interest with the Panel members tackling the widest range of food and beverage labelling issues ever undertaken. Dr Blewett outlined the diverse range of demands in the community for labelling and he emphasised that the panel’s final report will include crucial recommendations on what the role of government should be in the regulation of food labelling along with approaches to achieve compliance and consistent enforcement.” “The Ministerial Council noted the overwhelming response to the Review and expressed appreciation for the time and effort that individuals and organisations have taken in preparing submissions and attending public consultation meetings. The Panel members are finalising their report and recommendations which will be provided to the Ministerial Council in late January and will then be publicly released,” said Ms King. Point of sale nutrition information in standard
food outlets Bisphenol A Members of the Ministerial Council noted that FSANZ has determined that the exposure of BPA from food sources in Australia and New Zealand is well below the internationally established safe levels and poses no significant human health risk. Ministers noted that the low levels of exposure are likely to decrease even further as a result of the industry initiatives to phase out the use of BPA in various food containers. The Ministerial Council sought assurances from FSANZ to continue to liaise with industry in relation to alternative packaging materials such as stainless steel, glass, or BPA-free plastics to ensure their safety (see also p 40). Regulation of caffeinated energy drinks In relation to non-alcoholic caffeinated energy drinks the Ministerial Council has asked the Food Regulation Standing Committee to undertake scoping work and provide advice on possible areas for action and report back at the next Ministerial Council meeting. This information is reproduced with the permission of FSANZ (www.foodstandards.gov.au). UK FSA reviews food safety The Chief Executive of the Food Standards Agency (www.food.gov.uk) Tim Smith has announced a review of how food safety regulations are enforced in the UK. Speaking at a conference on food safety, organised by the FSA and the Chartered Institute of Environmental Health, in December 2010, Mr Smith said that the FSA was looking for new ways of making the system of enforcing food safety regulations more efficient. He added that any new approach would have to offer the best protection for consumers. The review will see the Agency working closely with the food industry, local authorities, and professional bodies in considering alternative approaches to enforcement that will offer the best protection for consumers. The review will cover all four countries of the UK. Beer, Whisky & Wine Australian beer sales in decline Katrina Diamonon, Datamonitor’s consumer markets Analyst (www.datamonitor.com), has commented on research released by Nielsen and Citi which revealed that beer sales in Australia recorded volume declines for the eighth consecutive month in August 2010. With beer drinkers increasingly opting for quality over quantity, not only are major brands vulnerable to microbreweries, but the category in general risks losing share to other alcoholic drinks. The data, reported by the Sydney Morning Herald on 12 October, indicated that in the month to August 2010 volume sales of Foster’s Victoria Bitter fell by 15.4%. The company’s premium low calorie beer Pure Blonde fared even worse, with its volumes dropping by closer to 20%. Similarly, Lion Nathan’s Tooheys brand was down 16.2%, while its Boag’s and XXXX lines fell by 8.1% and 4.2%, respectively. The declines were attributed to the cooler weather, as well as consumers moving from traditional to boutique brands; these are typically offered in smaller bottles, contributing to lower volume sales. This shift is due to consumers adopting a more quality-driven approach when selecting alcoholic beverages, and the growing appeal of craft beers that offer new flavours, styles and recipes. Indicating the trend towards microbrews, the site Crafty Pint was launched in August 2010 to offer consumers a simple guide to the best craft brewers, beers and bars, as well as reviews, interactive maps, recipes and limited release brews, for the growing wave of craft beer drinkers emerging in Australia. Additionally, the narrowing price gap between premium and mainstream brands may be driving consumers towards more boutique offerings, as they do not just boast a more authentic brand story (perceived or actual) and unique taste, but also market these advantages at only a small price premium. Such value considerations are increasingly evident in Australians’ alcoholic beverage choices. Indeed, a Datamonitor consumer survey conducted in July and August 2010 found that nearly one in six (16%) Australians had chosen alcoholic drinks in pubs, bars or restaurants on the basis of value more frequently in the prior six months, while almost one in four (24%) did the same with respect to alcohol for consumption at home. Australians’ beer preferences are being increasingly influenced by considerations of value and quality, with consumers expressing a distinct willingness to try new products, as opposed to giving in to habit and sticking with tried and tested brands. Mainstream brands can overcome this swing by emphasising their own brand story and focusing on the heritage and authenticity that their classic brands offer. Indeed, given that the price gap between boutique and mainstream brands continues to contract, leading brands need to compete on the basis of more than just lower cost. Moreover, as other alcoholic beverage categories such as wine and spirits continue to make inroads into beer sales, the beer sector as a whole needs to innovate in order to win back consumers. Award winning black coffee lager The official comment was, “Very dark brown colour. Rich and dimensional roasted coffee, bakers chocolate, and dried fruit aromas and flavours with a dry, zesty medium-full body and a long, pure and pervasive barista approved finish. A superb coffee beer with a solid caffeine kick.” The World Beer Championships are run annually in a series of style-based tasting sessions in a dedicated tasting laboratory at the Beverage Testing Institute (BTI) in Chicago, and is one of the most professional and highly regarded competitions in the world. Black Giraffe is the brewery’s second release from their Bit On The Side Dept, and was developed as a combined effort between Brennan Fielding, the Burleigh Brewing Co Brewmaster and coffee expert Kenton Campbell, Founder and CEO of Zarraffa’s Coffee. Burleigh Brewing Co CEO Peta Fielding, said that this latest win is especially exciting because this time they’re sharing it with Zarraffa’s Coffee. “Obviously our medals are all a Burleigh Brewing team effort, but this time it feels more like a ‘team sport’ than an ‘individual gold’ as we get to celebrate with Zarraffa’s Coffee – after all, they helped us to select the coffee and roasted it to perfection!” she said. Mr Campbell said that he was interested in the Black Giraffe project from the moment Mr Fielding first mentioned it. “I saw this as the perfect business partnering – a micro brewery and a speciality coffee company – creating a new and exciting product. Together, our brands are two of the best in our respective industries and this partnership has amplified that. Doing the beer in itself was amazing. To have it be so amazing and now on the worldwide stage, I’m privileged to be a part of it. It’s great that smaller businesses, coming together, can achieve such wonderful things,” he said. Burleigh Brewing’s limited releases from their Bit on the Side Dept come packaged in dinner-size, 650 mL screen-printed, collectible bottles. For availability see www.burleighbrewing.com. Bottle of whisky sells for six figures Industry experts claim that if the bottle was sold by the glass in exclusive restaurants and clubs, it could fetch up to £20 000 for a typical 50 mL dram. Trinitas is believed to contain some of the rarest and oldest stocks of whisky in the world, some of which have been maturing in the distillery on the shores of the Cromarty Firth for more than 140 years. The Dalmore’s renowned master distiller, Richard Paterson, used his expertise to blend a range of these exclusive malts. He claimed that this was not about breaking world records but about making the best whisky money can buy. “The hand of time has been generous and rewarding with the malts I chose to use. They allowed me to create a taste sensation which will never be repeated again and will only ever be available to those that own these bottles. You cannot put a price on that,” he said. “People recognise that you have to pay a premium for true exclusivity, craftsmanship, quality and heritage. Even in this day and age, when times are tough, those that enjoy the finer things in life want to reward themselves with something very special. And you won’t get more special than The Dalmore 64,” he concluded. Penfolds re-corking clinics in North America The Penfolds Re-Corking Clinics provide owners of aged Penfolds red wines (15 years or older) the opportunity to have their wines assessed, and if necessary, opened, tasted, topped off, re-corked and re-capsuled on the spot. Once re-corked, a special back label is applied to approved bottles, signed and dated by the winemaker or certified assessor. These back labels are considered particularly useful when trading Penfolds wines on the auction market, as well as for collectors wishing to maintain records of the condition of their wine. Christie’s Auction House representatives were also on hand to offer attendees a market appraisal and certification of their wines. “Since 1991, Penfolds has held clinics in Australia, Europe, Asia and North America, and has opened more than 100 000 bottles of wine. We’re the only winery in the world to stage Red Wine Re-Corking Clinics for the public on such a large scale, highlighting Penfolds’ quality commitment to loyal red wine enthusiasts everywhere,” said Mr Gago. Australian wines at International Wine Challenge Awards Australian wines were awarded trophies at the International Wine Challenge Awards Dinner, held in London in September. These awards, now in their 27th year, are considered the world’s most prestigious and influential independent wine awards. Forty three awards were presented for categories including Champion Winemaker of the Year, Merchant of the Year and Great Value Wines of the Year. The James Rogers Trophy for best wine in its first year of production was awarded to Bella Vigna McLaren Vale Shiraz 2008 from Haselgrove Wines. Other Australian success stories were:
Also with an Australian connection, the Len Evans Trophy (for the producer who has performed consistently well over the last five years) was won by Austrian Hans Tschida who was also Sweet Winemaker of the year. Further information on the winners is available from www.internationalwinechallenge.com. Australian premium wine The release in September of Langton’s Classification of Australian Wine V by the wine auction company presents a positive picture for the Australian wine industry with 33 new listings, indicating rising auction demand and increasing quality across the Australian wine industry. Classification V illustrates an expanded ultra-fine wine scene. It has increased in size by 22%, reflecting widening secondary wine market demand and a growing interest in regional and single vineyard ultra-fine Australian wine. It also reflects a dominance of cellaring style red wines. Langton’s Classification of Australian Wine V comprises 58 shiraz/blends, 40 cabernet/blends, 10 pinot noirs and 15 white wines. As is the tradition, Penfolds Bin 95 Grange Shiraz heads up the list. The dominance of shiraz, including five new ‘Exceptional’ entrants, reflects the variety’s reputation for longevity and diversity of style. The addition of Jeffrey Grosset Polish Hill Riesling to the highest ranking acknowledges and rewards what is considered a unique masterpiece. Compiled using secondary wine market data Langton’s Classification of Australian Wine V reveals increasing depth and momentum of ultra-fine Australian wine. It illustrates strengthening support from Australian and international consumers for Australian grand marques. Langton’s Classification was first released in 1990. It was created to build confidence in a fledgling Australian secondary wine market. Twenty years and four revisions later it is arguably the most famous wine classification outside Europe. The Classification comprises four rankings (Exceptional, Outstanding, Excellent and Distinguished) and for a wine to achieve a listing it must have traction on the secondary wine market. Auction prices, track record and volume of demand are all considered. The criteria for inclusion are objective and market-driven. Langton’s founder and General Manager Stewart Langton said, “Langton’s Classification reflects the contemporary wine market, focusing particularly on red wine. While the total numbers have expanded from 101 to 123, it should be remembered that most of these wines are limited in production. If you take out Penfolds, an incredible auction market performer, the volume of wine produced is equivalent to less than the five Bordeaux first growths. It is no exaggeration to say that ultra-fine Australian wine is extremely limited. The rarity of pre-1990 vintages illustrates this.” Veteran wine auctioneer Andrew Caillard MW said that while Langton’s Classification acts as a market barometer, it reveals a greater subtext. “It chronicles the progression of Australian winemaking from the colonial era to the 21st Century. Langton’s classified wines are Australia’s enduring grand marques. Individually they resonate a sense of place or voice of country. Combined, they articulate Australia’s place in the world of fine wine,” he said. Langton’s Classification of Australia Wine V is published in poster, booklet, on-line and iPhone application formats. Further information is available from www.langtons.com.au. Family winery wins Environmental Awards Taylors Wines (www.taylorswines.com.au) has been announced as a winner at the 2010 Banksia Environmental Awards (www.banksiafdn.com), for the Leading in Sustainability Award in the small to medium enterprise category. The National Banksia Environmental Awards are regarded as the most prestigious environmental awards in Australia and Taylors Wines was the only winery recognised at this year’s awards. Taylors Eighty Acres range (www.eightyacres.com.au) is the world’s first 100% carbon neutral wine range in accordance with the international standard for lifecycle assessment ISO14044 and this along with a list of other environmental initiatives impressed the team of national judges. They believe that Taylors Wines is setting an example for Australian wineries. Environmental initiatives implemented in recent times include:
Further details on this initiative have been previously covered in food Australia (Food Aust. 61(11): 449, November 2009 and Food Aust. 62(4): 155, April 2010). AGRIFOOD NSW grain testing contract The NSW Government has won a major $7 million tender to conduct national testing of a range of crops in NSW for the next five years, Minister for Primary Industries Steve Whan announced in June. The Grains Research & Development Corporation have awarded Industry & Investment NSW the National Variety Testing (NVT) tender for the 2010–2014 cropping seasons for cereals, oilseeds and pulses. Around 170 trials on 60 sites will be sown in NSW each year as part of the NVT testing program. “This important program has already led to the release of new varieties of wheat, including quick maturing varieties for the northern, central and southern regions and longer season varieties which are ideal for earlier sowing in the southern regions. “Our scientists and agronomists have proven experience in this area – I&I NSW having conducted 129 cereal and pulse trials throughout the NSW grains belt each year for the past five years as the service provider for NVT. For the next five years I&I NSW will have an expanded role with canola being added to cereals and pulses and some trials may also be carried out in Victoria,” he explained. The trials are conducted by the Crop Evaluation Units, which are strategically placed in key growing regions stretching between the Queensland and Victorian borders. Some important sites for evaluating new lines include Condobolin and Merriwagga in the State’s south west, while irrigated sites at Griffith and Trangie allow growers to evaluate the performance of new varieties even in drought years. “In addition to varietal testing, other research will also be carried out including screening for rusts, acid soil, crown rot, root lesion nematode, yellow leaf spot and cereal cyst nematode resistance and tolerances which adds extra value to the NVT sites. For the first time growers will also be able to see wheat trials that are comparing variety performance with and without the application of foliar fungicides to control diseases,” concluded Mr Whan. Grains biosecurity specialist Industry & Investment NSW and Plant Health Australia have appointed a grains biosecurity specialist to manage biosecurity risks to the NSW grains industry. Minister for Primary Industries Steve Whan said that Orange-based Grains Biosecurity Officer Dr Louise Rossiter is working to implement the National Farm Biosecurity Program in NSW at both farm gate and industry levels. Her roles include raising the awareness of priority pest threats to the grains industry and increasing the use of farm biosecurity practices by growers and other industry sectors. “Dr Rossiter will work with industry leaders to provide practical, expert assistance and training in farm biosecurity to a range of grains industry stakeholders. Organic grains production will be a specific focus for Dr Rossiter. She plans to develop an organic grains biosecurity manual that will outline the key biosecurity threats and how they may be controlled within an organic farming system,” said Mr Whan. Dr Rossiter is an experienced research scientist with an extensive background in cropping industries. Since 2002, she has been involved in monitoring and managing insecticide resistance by cotton bollworm, a major pest of cotton and grains in eastern Australia. Prior to this, she studied for a PhD in insecticide resistance in stored grains. Australia features in the World’s Best Wines In July, the International Wine Challenge (IWC), which is claimed to be the world’s most prestigious and influential independent wine competition, released the results of the 2010 Trophy and Great Value Wine Awards at the Lords Nursery Pavilion in the UK. One hundred and eleven wines were awarded a Trophy this year, along with 14 Great Value Wines judged for their style, availability and price. The Trophy stage is the final round for these award-winning wines. Having already achieved a Gold medal through the Challenge’s rigorous judging process, the wines are tasted once more by an elite panel of judges against other wines in the same category, to determine if they are worthy of a Trophy in addition to their Gold medal. Overall, Australia came third in the country tally board receiving 12 Trophies. The International Shiraz Trophy went to Directors’ Cut, 2007 Heartland Wines, which in total received four Trophies (Australian Red Trophy, Australian Shiraz Trophy, South Australian Shiraz Trophy). Four Australian wines were awarded a Great Value Wine Award: Moon Bridge Riesling 2009 Alliance Wine Australia (Great Value White Under £6); Waitrose Reserve Shiraz 2008 – St Hallett Wines (Great Value Red Wine between £6 and £10); Campbells Rutherglen Muscat NV – Campbells (Great Value Fortified Wine between £10 and £15) and Tamar Ridge Kayena Vineyard Botrytis Riesling 2007 – Tamar Ridge (Great Value Sweet Wine between £10 and £15). France was ranked first for the second year running, with 21 Trophy wines, followed by Japan’s Sake category (14) in second place and Australia (12) in third, closely followed by Portugal (11). “A wine wearing the IWC Trophy logo helps consumers to quickly and easily identify exceptional high quality wines at a price point to suit every budget. In turn this quick recognition from the logo delivers increased sales for the producers,” said Chris Ashton, IWC Event Director. Horticulture Taskforce established The chief executive officers from the major horticulture organisations in Australia have established a new taskforce to respond to issues and lobby all political parties. The move comes in light of the recent decision to wind down the activities of the Horticulture Australia Council. Tony Russell, CEO of Apple and Pear Australia, and the Chair of the new body, said that the new taskforce would enable the horticultural industry to continue to have a voice at the political level so that the industry was not overlooked. “Horticulture is one of Australia’s most important industries for the economy and in providing jobs for Australian families. This new taskforce will represent those combined interests with a more targeted approach,” said Mr Russell. “Now that the major horticultural organisations have decided on a proposed structure for the taskforce we will be approaching other members of the horticultural industry and asking for their support. This body will represent the whole industry,” he added. The CEOs from the leading horticulture organisations recently met in Sydney to discuss the options for the industry going forward. “There were a range of alternative views put forward during discussions and a range of concerns were expressed at the meeting. It was resolved that a new model was needed to represent horticulture and as a result the Horticulture Taskforce was established,” said Mr Russell. “The new structure of the Horticulture Taskforce will focus on efficient and targeted use of resources on a defined number of important issues that have the agreement of the members. “A Chair, Deputy Chair Richard Mulcahy (CEO of AUSVEG) and Treasurer Greg Seymour (General Manager of the Australian Mushroom Growers Association) have been elected, and pending final agreement from the industry a consultant will be employed to liaise with decision-makers on significant Federal issues such as industrial relations, agricultural policy, biosecurity and water,” he concluded. McCain School Veggie Patches Nicki Anderson, Marketing Director, McCain Foods Australia and New Zealand, said that she was proud to announce the program, which marks a significant commitment to children’s food education from McCain Foods. “We are passionate about educating children about the foods they eat and where they come from. McCain School Veggie Patches aims to teach children about the benefits of healthy eating in a fun, outdoor environment. Involving children in the process of planting, growing and harvesting veggies is a great way to get them excited about eating veggies, and gives kids some of the building blocks for making healthy lifestyle choices,” said Ms Anderson. Primary schools across Australia and New Zealand have received an information pack with instructions on how to register their school for McCain School Veggie Patches. Once a school has registered for the program, parents, businesses, and community members can donate points to the school by collecting the barcodes on all McCain frozen vegetable packs, and McCain Purely Potato products. Participating schools can redeem their points for everything they need to build and maintain a vegetable patch, including seeds and tools and equipment such as gardening gloves, wheelbarrows, water tanks and compost bins. The program represents a $500 000 commitment from McCain Foods for garden equipment available to schools across Australia and New Zealand. There is also a microsite with online resources, games, student worksheets and educational quizzes to support McCain School Veggie Patches at www.mccainveggiepatches.com. Funding for avocado innovations Bundaberg based Pressure Fresh Australia is receiving funding from Commercialisation Australia, the Federal Government initiative to help Australian inventors, entrepreneurs and researchers turn their innovative ideas into commercial products and services by offering assistance to test the commercial viability of an idea, to hire experienced executives, and to access specialist advice and services. Pressure Fresh will receive over $346 000 to develop innovative packaging and high pressure processing techniques, to provide consumers with high quality avocado products that are full of flavour. Since opening in January, Commercialisation Australia has provided $11.9 million in funding to 32 companies. Meat scientists win Eureka Prize The achievements of collaborative research across institutions and disciplines, and between science and industry, have been recognised with the 2010 Australian Research Council Eureka Prize for Excellence in Research by an Interdisciplinary Team. The Meat Standards Australia (MSA) Pathways Team received the $10 000 prize for designing the world’s first comprehensive paddock-to-plate meat grading for meats such as beef, lamb and sheep meat. It also recommends the cooking method for consumers. It has been estimated by Access Economics that the system generated an extra $244 million for the Australian economy over the period from 1999, when it was adopted by the beef industry, to mid 2006. The team behind the system includes beef industry leaders, scientists from I&I NSW, the University of New England, the Victorian Department of Primary Industries, CSIRO’s Livestock Industries, and the School of Veterinary and Biomedical Sciences at Murdoch University. The MSA team surveyed 70 000 people with the aim of determining the qualities used by consumers when consuming meat products. The grading system takes into consideration factors such as tenderness, aesthetics, food safety and origin of meat. Complementary multidisciplinary research using biochemistry, statistics, economics, stress biology and genomics etc has provided the means by which these qualities can be produced. Future work includes continued refinement of the model and the determination and incorporation of DNA markers for meat tenderness. Interest from the United States, the European Union and South Korea could mean worldwide implementation of the system. The CEO of the Invasive Animals Cooperative Research Centre, Professor Tony Peacock, also received the 2010 Eureka Award for Promoting Understanding of Science in recognition for his work to promote the need to minimise the impact of pest animals on Australia’s biodiversity. New beef researcher A new beef livestock officer based at Glen Innes NSW has been appointed by Industry & Investment NSW. Jason Siddell is working with New England beef producers from the Glen Innes Agricultural Research & Advisory Station to help producers improve their beef quality, market access and productivity. He has recently been working for both the Beef and Sheep CRCs as a Livestock Research Officer in Meat Science at the I&I NSW Beef Industry Centre at Armidale. Jason has a Bachelor of Rural Science from the University of New England, specialising in meat science. In 2007, he was awarded the Andrew Stebbings Memorial Scholarship by the Angus Society of Australia, which provided a unique opportunity to gain insight into beef and sheep production and processing and technological services in the UK. Informing consumers on meat and seafood via industry websites In July, Meat and Livestock Australia (MLA) launched a new website on the red meat industry’s environmental impact. The website (www.RedMeatGreenFacts.com.au) details the facts and figures across the key indicators of water, land, biodiversity and emissions for the red meat industry. The website is intended as a one-stop-shop for those interested in learning the truth about the environmental impact of red meat in Australia and will be continually evolving as new research becomes available. RedMeatGreenFacts.com.au highlights Australia’s unique production system and attempts to house in one location the correct data about the Australian industry in order to avoid overseas and incorrect data being used in media reports, which often misrepresent the Australian industry. The website contains a myth busting section and also case studies on farmers across the country who are leading the way in environmental management and who are available for interview, alongside MLA spokespeople. In a similar move, new website information designed to inspire consumers
in NSW to buy and enjoy local seafood was launched by Minister for Primary
Industries Steve Whan in July. Minister Whan said that he hoped the site would inform consumers about local seafood and encourage them to make the switch to NSW seafood. “By choosing NSW seafood, the public can be assured of some of the best seafood in the world, a premium quality product that is fresh to eat and enjoy. Environmentally conscious consumers will be pleased to know the seven major wild harvest commercial fisheries operating in NSW have undergone world-class environmental assessments, ensuring they are managed sustainably now and into the future. “Sustainable Aquaculture Strategies are also helping to promote viable and sustainable aquaculture based on industry best practice,” he concluded. EXPORTS Victorian export success The Victorian Government is expecting to see strong growth in commodity exports in 2010–11, based on Australian Bureau of Agricultural and Resource Economics (ABARE) forecasts for Australia. This will include a rise in dairy exports, one of Victoria’s two largest export commodities. According to ABARE, Victorian winter crop production is also forecast to increase by more than two million tonnes to 6.2 million tonnes in the current financial year, and this should boost cereals exports from Victoria in both 2010 and 2011. In 2008-09, Victorian companies exported $20.4 billion worth of goods and $12.7 billion worth of services, making a total of $33.1 million in exports. One company which has contributed to this prosperity is Clyne Foods, a Victorian regional-based company which exports dried fruit products to Europe, Japan, New Zealand and South East Asia. Winner of the 2009 Governor of Victoria Regional Export Award, the company is looking to expand its export markets in 2010–11. “From ten containers in 2004, we exported between sixty and seventy containers of dried fruit to overseas markets in 2008. We are now established suppliers to bakeries in Germany, Italy, the UK, South East Asia and New Zealand, and are currently looking to develop our markets in Japan,” said Chris Clyne, CEO, Clyne Foods. Another successful company is equine feed manufacturer, Hy Gain Feeds, which won the 2009 Governor of Victoria Agribusiness Award. The company exports equine feed to over twenty countries throughout Australasia, Asia, the Middle East and Europe. Director of Hy Gain Feeds, Leigh Manley, said, “Our success lies in creating innovative equine products for new and emerging international markets.” Hong Kong food and wine export
opportunities Victorian Industry and Trade Minister Jacinta Allan said that Victoria’s food and beverage sector is renowned for products of exceptional quality. “This Victorian Government commissioned market research provides an ideal springboard for companies who are thinking about exporting their food and beverages to Hong Kong. The Victorian Government is committed to seeking global opportunities and upgrading the state’s key competitive advantages and this report provides solid assistance of this kind for the food and beverage sector,” she said. The current status of a range of premium food categories in Hong Kong is:
The report outlines that awareness of Victorian food and beverages needs to be raised in order to tap into this lucrative market. Reaching the right people Bellarine peninsula Abalone producers Great Southern Waters has successfully exported live Jade Tiger Abalone to Hong Kong for the past four years (see also Food Aust. 62(7): 281, July 2010). Martin Lanyon, Sales Manager for Great Southern Waters said: “We bred Jade Tiger Abalone as a delicacy that would specifically appeal to Asian palettes, however we found that getting our goods into the market in Asia was a task that required a lot of homework. We set about establishing contacts in Hong Kong through the referral services offered through the Victorian Government Business Office there and we also used services offered by Austrade. “The Victorian Government also gave us financial assistance to attend trade shows such as HOFEX. This gave us the opportunity to let Hong Kong customers taste, touch and see our unique green shelled Abalone.” Central Victorian winemakers Pyrenees Ridge have been exporting their premium wines to five star hotels in Hong Kong for the past eight years. Sally-anne Jukes who, along with husband Graeme, established Pyrenees Ridge 12 years ago, said that participating in a Victorian Government led trade mission to Hong Kong was the start of the export side of their business, which now accounts for fifteen percent of overall turnover. “The trade mission provided some really good introductions to premium wine importers in Hong Kong. Six months later we signed a contract with one of the importers we met during the mission and we haven’t looked back. Eight years on and our premium Pyrenees Shiraz and Reserve Shiraz is now served in some of the top restaurants in Hong Kong, including the famous Peninsula Hotel in Kowloon. “The key to our success in Hong Kong is the good relationships that we have established there. At least once a year we will travel over and meet with the importer and a number of restaurant owners and sommeliers who stock our wine for a special ‘meet the winemakers’ dinner,” she said. Further information is available from www.export.vic.gov.au. Grant helps promote Australian wines abroad The Federal Government has provided funding to Australia’s First Families of Wine (see also Food Aust. 61(11): 445, November 2009) to boost the profile of Australian quality wines overseas. Minister for Agriculture, Fisheries and Forestry Tony Burke said that $429 900 funding, from the government’s Promoting Australian Produce (Major Events) program, was used to present a series of promotional events in the UK. “Australia’s First Families of Wine (AFFW) is a collaboration of some of the most famous and trusted brands in the industry who have come together to promote and market quality Australian wines. I am strongly supportive of the Australia’s First Families of Wine initiative – Australia makes some of the finest wines in the world and they deserve far more attention overseas. Australia’s First Families of Wines is an excellent example of the industry taking ownership of its future to ensure the long-term success and profitability of this important industry,” said Mr Burke. The events in Bristol, Manchester, Edinburgh and London were conducted over a week to coincide with the London International Wine Trade Fair in May. The UK is Australia’s second largest export market for bottled wine, worth almost $489 million a year. Welcoming news of the grant, AFFW member Colin Campbell from Campbell’s Wines in Rutherglen said, “Following our successful launch in 2009, this grant will now assist us to take the premium Australian wine message to the wider global audience whilst also signalling a strong endorsement of the AFFW’s objectives.” Promoting Australian Produce (Major Events) supports
major collaborative events that encourage information exchange, promote
innovation and boost productivity in the food, fibre and seafood industries.
Applications for grant funding under the program are open and will be
assessed continuously until 28 February 2011. To be eligible for funding,
project activities must be completed by 30 April 2011. Further information
is available at www.daft.gov.au/agriculture-food/food/promoting_australian_produce_major_events. Food Safety Services Mission to Hong Kong Austrade Hong Kong is organising the first Australian
Food Safety Services Mission to Hong Kong on 8–9 November 2010. The
focus of this mission is to capture the opportunities in Hong Kong for
Australian companies providing services related to all aspects of food
safety, including food handling, processing, packaging, storage, transportation,
display, quality assurances, education, training, consulting, testing,
accreditation, product recall and traceability. This mission therefore provides Australian food safety services providers with an opportunity to promote their capabilities and meet with potential customers, government regulators and industry associations in Hong Kong. Representatives of Australian businesses, academic institutions, government organisations and industry associations with expertise and experience in a range of areas, are invited to attend. They include accreditation and certification, food product recall, food processing, food safety auditing compliance, food storage and logistics, food supply chain, food testing, food transport and distribution, food tracing technology, quality assurance, and risk management and assessment. This mission has been timed to proceed the China International Food Safety and Quality Conference in Shanghai on 10–11 November (www.chinafoodsafety.com). Further information and registration is available from www.austrade.gov.au/FoodSafetyHK. Applications close Friday 10 September 2010. New website to help SME understand export finance options In May, the then Trade Minister Simon Crean announced the launch of a new website to help Australian small and medium-sized enterprises (SME) understand the export finance options available when exporting or investing offshore. The ‘Export Finance Navigator’ (www.exportfinance.gov.au) is an independent source of information on export finance. It aims to assist current and potential exporters by sourcing a wide range of information on the financing alternatives available as they seek to grow their businesses through export and offshore opportunities. Developed by Export Finance and Insurance Corporation (EFIC), the Australian Government’s export credit agency, the online tool is a response to a recommendation of the 2008 Review of Export Policies and Program (the ‘Mortimer Report’). The website divides the exporter’s journey into six stages: preparing for export, finding markets, winning contracts, financing production, getting paid and expanding overseas. An exporter can easily identify at which stage they are, and then find the export finance solutions available to them at that stage. The website not only helps exporters to find out about the export finance tools provided in the commercial market, but also the grants and tax concessions available to exporters from federal, state and territory governments. EFIC’s CEO and Managing Director Angus Armour said, “Being better informed about their export finance options will help give Australian businesses operating in overseas markets a more solid financial foundation and contribute to their continued international success. SME exporters frequently tell us that they’re not sure where to begin looking for information about export finance, and often they don’t know that government assistance is on hand. Export Finance Navigator gives them the starting point they need to learn about export finance.” The launch of the Export Finance Navigator website will be followed by a series of workshops for exporters to be run jointly by EFIC and Austrade. The workshops will focus on the export finance solutions available at particular stages of an exporter’s journey. The Mortimer Report commented that a common problem for new exporters and businesses investing overseas was a lack of understanding about the financial products available and where to obtain finance. The report identified a need for ‘an independent source of advice and information on export financing, including referrals to commercial service providers as well as to other sources of government financial assistance’. ORGANICS Australian Standard for organic and biodynamic products The first Australian Standard for organic and biodynamic products was published in October 2009. AS 6000-2009 Organic and Biodynamic Products outlines the minimum requirements to be met by growers and manufacturers wishing to label their products ‘organic’ and ‘biodynamic’. It establishes an agreed set of procedures to be followed for the production, preparation, transportation, marketing and labelling of organic and biodynamic products including food and processed food. The decision to develop the Australian Standard originated from the need to standardise practices within the organic industry because of the growing use of unsubstantiated claims on product labels. John Tucker, CEO of Standards Australia, said that the publication of the Organic and Biodynamic Products Australian Standard was a significant step forward for Australia’s burgeoning organic industry. “The Australian Standard establishes a uniform framework for how to grow, produce, distribute, market and label organic and biodynamic products. Consumers can be sure that products complying with this Standard have been produced following natural, sustainable, ethical and environmentally-responsible farming practices,” he said. “Consumers are currently faced with up to eight different organic certification schemes all of which impose different requirements on growers and producers, as well as many non-certified products that claim to be ‘organic’. It’s hardly surprising how difficult it is to know what is actually organic,” explained Mr Tucker. “With a consistent and national approach to organic production now provided by the Australian Standard, shoppers should look for certified organic or biodynamic products labelled as complying with AS 6000 to be confident they have been produced in line with strict organic and biodynamic practices,” he said. The Australian Standard requires that operators must keep thorough records of their farming and production practices throughout all stages and verify their organic claims through a process of independent, third party certification. The Standard also requires:
The Australian Standard, which is currently voluntary, is based on the Australian Quarantine and Inspection Service (AQIS) National Standard for Organic and Bio-dynamic Produce, Edition 3.3, which governs the export industry. Certifiers and operators are not expected to have difficulty aligning with the Australian Standard because of its close alignment to the AQIS Standard. MP 100 Procedures for certification of organic and biodynamic products has been published to assist certifiers, operators and accreditors wishing to comply with the Standard. AS 6000-2009 Organic and Biodynamic Products and MP 100 Procedures for certification of organic and biodynamic products are now available from www.saiglobal.com. Dr Andrew Monk, Standards Convenor for Biological Farmers of Australia (BFA) and representative on the Standards Australia organic committee, said that the new standard will complement, not replace, existing standards and certification arrangements. “The new national standard will assist in plugging the now fairly small gaps in the marketplace where uncertified product, or product with questionable organic integrity claims, have eluded industry and the courts to date. However, consumers will not see any changes in the marketplace. …they can be assured if they purchase certified organic product they will be protected – as they have been for many years,” he said. “This new Standard will simply complement existing industry standards and certification arrangements, including the existing National Standard for Organic and Biodynamic Produce. It is this standard on which the Standards Australia standard has been based and which has very effectively regulated certified organic products in Australia for over two decades,” explained Dr Monk. “Significantly, while the new Standard will remain voluntary, it will be, in concert with other relevant standards, a benchmark against which the ACCC (Australian Competition and Consumer Commission) can investigate fraud and mislabelling in the marketplace, and this is to be welcomed. It will therefore add to the existing arsenal of industry self regulation in place in Australia currently, which has over a 20-year history of successful growth and development. “Discerning consumers will need to continue to read labels and marketing claims, and only buy a product if it is clearly labelled with a certification mark for example the Australian Certified Organic Bud logo. Such consumers are then protected under Law currently, with precedents already established for large fines for companies found to be labelling in a misleading manner,” he concluded. Growth spurt predicted for organics Biological Farmers of Australia (BFA), Australia’s largest representative group for the organic food and farming industry, said that the recent massive growth predictions for the organic industry reflect data and trends identified in ongoing market research commissioned by industry. Organics is being increasingly tipped as the industry of opportunities in Australia, echoing similar positive reports in the US, Europe and other countries. In survey findings released in January 2010 by independent global industry researcher IBISWorld, organic farming was tipped to be a front-runner in the areas of revenue and employment in Australia. In its report on the “top 10” growth industries, IBISWorld (www.ibisworld.com.au) stated that organic farming revenue is poised for a growth spurt, to increase 14.8% in 2010, raising the value to $430 million. This places organic farming in the top two growth industries in Australia for the coming year. In the next five years revenue is expected to grow at an average rate of 13.4% per year reaching approximately $760 million in 2014. IBISWorld General Manager (Australia) Robert Bryant said that, “While on average organic goods remain more expensive than non-organic produce, higher disposable incomes, coupled with increasing awareness of environmental sustainability and an increase in the range of organic produce available, will see continued growth in this industry. “Growth will mainly be driven by increases in production, and an increase in consumer demand. Not only does organic farming offer higher returns for farmers, but recent studies suggest it is more resilient and adaptable to changing conditions wrought by climate change – encouraging some farmers to switch from conventional to organic farming.” In a separate IBISWorld report, organic farming, as an employer, is forecast to strengthen from 6.2% in 2012–13 to a 11.2% in 2013–14. In terms of job prospects, Mr Bryant noted that opportunities would relate to increased primary production, creating demand for farmers, farm-hands, skilled and unskilled labourers, and itinerant workers such as pickers. “While many of the jobs created will fall into the category of unskilled labour, there will also be opportunities created for ecologists, biodynamic farming specialists, and researchers,” added Mr Bryant. That organic production is on the crest of a wave comes as no surprise to Holly Vyner, General Manager of the Biological Farmers of Australia. “We have been watching steady growth in organics for some time now. BFA commissioned research in 2008 reported retail sales overshooting the half billion mark ($0.6 billion) and an 80% growth in farm gate sales over four years despite widespread drought. “This year will see the publication of the 2010 Australian Organic Market Report, independently researched by University of New England on behalf of BFA, building upon 2008 data. This next report will be an important yardstick for measuring organic industry growth over the past two years, and will provide industry members and potential new entrants with an essential guide to trends and opportunities in various sectors within the organic industry,” said Ms Vyner. The rise and rise of organic production has an impact beyond the farm gate, according to BFA Director and Standards Convenor Dr Andrew Monk. “In the marketplace, supply chain capacity is increasing to cope with the expanded demand for and supply of organics. The growing number of larger retailers that are now seeking out and stocking increased ranges of organic produce, should assist to grow consumer demand as organic becomes more available and consumers become better educated on the value of organics. In tandem with this has been the growth in popularity of organic farmers market stalls and smaller, local retail,” explained Dr Monk. Dr Monk said that biological farming is a long-term farming system and that BFA is working to assist in the development of this broader sector, which will in turn continue to assist in the maturation of the organic food and farming industry. “There will be a challenge in developing and nurturing the skills necessary for wide-scale food production and value adding under organic parameters. The recent incredible growth and success of courses such as the certified organic program at Albury, Riverina Institute of TAFE tells us that those skills can be taught but require a significant change in mindset to non-organic farming education and practices …” he said. ACO and NASAA programs highly recommended Choice magazine has awarded Australian Certified
Organic (ACO) the award for Australia’s Best Food Endorsement
Program. It was ‘highly recommended’ in an evaluation
of such programs in its March 2010 issue. Nominees for the award, were
determined by Choice. Judging by a panel of experts, carried out against
stringent criteria, determined a short list of nominees. Also highly
recommended was the program of organic certifiers National Association
for Sustainable Agriculture Australia (NASAA). OGA, a second subsidiary
company of the BFA providing certification for small growers, received
recommended status. SALT in food Salt in food As a result of recent publicity concerning salt consumption and salt levels in food, FSANZ have issued a fact sheet How much sodium and salt are we eating? It is reproduced here with the permission of FSANZ and can also be found at www.foodstandards.gov.au/newsroom/factsheets2009/howmuchsodiumandsalt4340.cfm How much sodium and salt are
we eating? Sodium in food What are the recommended
sodium intakes? How much sodium do
Australians eat? Recent media reports suggest that Australians regularly consumed more than 40 g sodium chloride (salt) a day. In contrast, FSANZ’s estimates showed that 95% of Australians consume less than 8.5 g of salt each day, with the highest daily salt consumption calculated for an individual to be 26 g. The foods that contribute the most to Australians’ sodium chloride (salt) consumption are bread and bread rolls (25%), meat, poultry and game products and dishes, including processed meat (21%), cereal products and cereal based dishes (eg biscuits and pizza) (17%), savoury sauces and condiments (8%) and cheese (5%). Breakfast cereals contribute approximately 4% of total salt consumption from processed foods and dried soup mixes less than 3%. Is sodium identified
on food labels? How much sodium is
in Australian foods? The food industry has been reducing salt in various products and survey results indicate that levels of sodium in some processed foods have declined in recent years. For example, sodium levels in margarine, savoury biscuits, soup and mayonnaise were lower compared to previous studies. Average sodium values for various foods tested in recent FSANZ programs are presented in the table below.
AWASH perspective AWASH believes that the current confusion over Australian salt consumption further highlights the need for definitive data. The government must ensure that adequate methods of reliably estimating sodium intakes are included in the Department of Health and Ageing’s Health Risks Survey, which is planned to commence in 2010. Further, AWASH believes that the estimate of salt consumption derived from the dietary modelling methods used by Food Standards Australia New Zealand (FSANZ) significantly underestimates the actual intake. The National Health and Medical Research Council (NHMRC) Nutrient Reference Values define a Suggested Dietary Target of 4 g of salt (1600 mg of sodium) per day and an Upper Level of Intake of 6 g of salt (2300 mg of sodium) per day (NHMRC 2006). It is of note that the optimal level of daily salt intake is actually much less (1–2 g/day) and both government criteria represent a pragmatic compromise position. Recent media sources reported that many Australians are eating as much as 40 g of salt a day. This is incorrect and appears to have resulted from a media misinterpretation of the statement that “Australian’s are eating 5–10 times more salt than they need for optimal health.” Australians almost certainly are eating on average 5–10 times more than the 1–2 g/day required but are not eating 5–10 times more than the Suggested Dietary Target of 4 g per day. In its recent release (p 255), FSANZ estimated that Australians aged two years and older consume an average of 5.5 g of salt (2150 mg of sodium) per day. Further, FSANZ claims that 95% of Australians consume less than 8.5 g of salt each day and that only 34% consume more than 6 g of salt per day. The highest daily salt consumption calculated for an individual was 26 000 mg (26 g). The FSANZ estimates were based on dietary modelling. This modelling is prone to important biases because it uses old 1995 National Nutrition Survey data and dietary recall methods have been found to substantially underestimate sodium intake (Espeland & others 2001). While there are no representative studies that have made gold standard salt intake estimates based on urinary sodium excretion, it is likely that average Australian intake is substantially above the 5.5 g per day suggested by the FSANZ data. It is of specific note that:
Finally, even if the FSANZ estimates were correct (which they are almost certainly not) they would still be of huge concern. Salt consumption above 1–2 g per day is a leading cause of the rise in blood pressure with age and high blood pressure, alongside smoking, is the single greatest cause of premature death and disability in Australia. In conclusion, we reiterate our call that the government must take urgent action to ensure that we have truly reliable estimates of population salt intakes that are monitored over time. Furthermore, government must take leadership of this issue and work with industry to agree upon a comprehensive plan for the implementation and monitoring of a national salt reduction strategy. References Iodised salt required from October 2009 Australian bakers have been reminded that they need to replace the salt that they currently use in bread making with iodised salt from 9 October 2009. When launching the Australian User Guide for Mandatory Iodine Fortification in May, Food Standards Australia New Zealand’s Chief Executive Officer, Steve McCutcheon, said that the baking industry needs to be aware of the changes that become mandatory in October. “Iodine is essential for good health and mild iodine deficiency has re-emerged in Australia over the last 10 to 15 years. FSANZ has developed a mandatory iodine fortification standard to help address this iodine deficiency in Australia and New Zealand. The new standard requires the replacement of non-iodised salt in all bread, where salt is added, with iodised salt with a range of 25 to 65 mg of iodine per kilogram of salt. It also applies to the small amount of bread imported into Australia, usually as frozen dough. However, bread described as organic is exempt,” said Mr McCutcheon. “This simple user guide explains exactly what bakers have to do to replace the current salt they use with iodised salt. This must be done in all products made from bread dough that contain yeast and salt. This includes loaves, buns, rolls, pita, naan, focaccia, pide, bagels, topped breads, buns and rolls (such as cheese and bacon rolls), baked English-style muffins, sweet buns, and fruit breads or rolls. “The user guide also details what labelling changes may be needed, for example, if the bread is packaged and not made on the premises where it is sold then iodised salt must be listed in the ingredients list. Mandatory iodine fortification comes into force just after the folic acid mandatory fortification of bread to make it easier for bakers and bread manufacturers to make any labelling changes in one go. A user guide for folic acid mandatory fortification of bread making flour is also available. “We greatly appreciate the time the baking industry and flour milling industry have taken to bring in these important health initiatives. We also want to make sure that smaller bakers are aware of the changes and have the information they need. We are also working closely with health professionals on consumer information about the mandatory fortification of bread with iodine and folic acid which will be released closer to when the changes are being made,” concluded Mr McCutcheon. The Australian User Guide for Mandatory Iodine Fortification can be found on the FSANZ website at www.foodstandards.gov.au/thecode/industryuserguides/mandatoryiodineforti4336.cfm and the Australian User Guide for Folic Acid Fortification at www.foodstandards.gov.au/thecode/industryuserguides/mandatoryfolicacidfo4208.cfm. Information relevant for New Zealand is on the New Zealand Food Authority’s website, www.nzfsa.govt.nz. For previous discussions on salt in food and information
on the ILSI Science of Salt seminar see Food Aust. 61(6): 224, June
2009. For the next symposium on this topic see adjacent. Salt in the diet: the elephant in the room: why
health professionals need a shake up This symposium is held under the auspices of the Australian Academy of Science and sponsored by The Nutrition Society of Australia, Sydney Group. Its aim is to raise consumer and health professional’s awareness of the health consequences of excessive salt intake and to disseminate strategies that can be implemented at a federal, state and community level to reduce dietary salt intake. Invited speakers include Professors Stewart Truswell and Jennie Brand Miller, University of Sydney, Professor George Jerums, University of Melbourne, Dr Russell Keast, Deakin University and Dr Jennifer Keogh, CSIRO. Others are Dr Geoffrey Annison AFGC and Susan Anderson, National Heart Foundation, plus community health and nutrition specialists. They include Associate Professor Stephen Corbett, Centre for Population Health, Sydney West Area Health Service, Robyn Speerin, Fairfield Cardiac Rehabilitation & Complex Cardiac Care Service, Jacqui Krassie, J Krassie & Associates and Jacqui Webster, AWASH. The program addresses a range of issues including the role of salt in cardiovascular risk and diabetes, salt in foods and menus, taste perception, food labels and industry and regulatory issues. There will be Panel Discussions on Developing a framework for health professionals and Developing a coordinated policy framework. The final hour of the day will be a free public lecture, Should you be eating that much S**T (salt)? given by Dr Bruce Neal, George Institute for International Health. Early Bird registrations close 31 July. People D Pty Ltd |
Furthering
its commitment to promoting food ‘that’s better for you’,
Woolworths marked Heart Week 2011 with confirmation that all its store-baked
soft white bread now contains 25% less salt (compared to previous Woolworths
in-store bakery white bread recipes on average).
Just
weeks after being released on the market, Black Giraffe, the
black coffee lager produced by Burleigh Brewing Co, won a gold medal
at the World Beer Championships in the USA. Scoring ‘an amazing
94/100’, the judges labelled Black Giraffe ‘exceptional’,
with the beer ranking the highest in the Specialty Beer category, scoring
higher than two Sam Adams brews from one of the most renowned craft
breweries in the States.
This
is the third time in just a few months that Burleigh Brewing Co beers
have won Gold, with Duke Pale Ale and My Wife’s Bitter
also winning international awards in June. Subsequently their HEF
German wheat beer took first place in the Queensland Beer Awards in
October for both Champion Beer of Show and Champion Queensland Beer
of Show.
The
first bottle of whisky in the world to break the six figure price barrier
was revealed in October by The Dalmore distillery which sold two bottles
for £100 000 each! The 64-year old Trinitas, named because
there were three bottles produced, was acquired by a luxury whisky lover
in the US and a well known whisky investor in the UK. The third bottle
was to be sold at the Whisky Show in London at the end of October.
Australia’s
Penfolds winery has again held the Penfolds Red Wine Re-Corking Clinics
in North America. The Re-Corking Clinics provide a health assessment
of ageing Penfolds red wines, free of charge, to Penfolds wine collectors
and the wine trade. The 2010 clinics, hosted by Chief Winemaker Peter
Gago, were held in New York City and Los Angeles in September
and October.
McCain
Foods announced in June, the launch of McCain School Veggie Patches,
a program to teach primary school children about the origin and benefits
of vegetables, to encourage them to make healthy food choices, by planting
and growing vegetables in their own schoolyard.
