Mr Viral
New Zealand dairy co-operative Fonterra has seen strong growth in South East Asia but also a significant decline in China, resulting in a decrease in profits for the first quarter of its FY2025. (PK24/Getty Images)Dairy dilemma: Fonterra’s slump in China leads to profit declineNew Zealand dairy co-operative Fonterra has seen strong growth in South East Asia but also a significant decline in China, resulting in a decrease in profits for the first quarter of its FY2025.
Fonterra recently announced its Q1FY2025 financial results, reporting a small 1.92% increase in revenue to NZ$5.2bn (US$2.99bn) but a close to 24% drop in profits after tax to NZ$263mn (US$151.2mn) from NZ$346mn (US$198.9mn) the previous year.
The firm attributed this to a variety of factors including lower sales volumes due to a ‘strong finish’ in FY2024, higher milk costs affecting margins, as well as digitalisation efforts.
Knorr and Squid Game 2 collaboration (Hindustan Unilever India Limited (HUL))Unilever India turns to small pack, Korean inspiration to survive ‘slowed’ consumer demandHindustan Unilever India (HUL) is hedging its bets on small retail packs and Korean Hallyu wave inspiration for its food business amid subdued FMCG demand in the country.
HUL recently announced its Q4FY2024 results, reporting a 2% sales growth to reach INR151bn (US$1.75bn) in total turnover as well as a 19% year-on-year growth in profits after tax at INR30bn (US$346mn).
Despite these apparently positive numbers, HUL CEO Rohit Jawa warned of negative signs in the FMCG consumer market due to the current economy.
Lotte is looking to expand its India presence after a liquidation scare. (ConfectioneryNews)One India: Lotte looks to expand presence after liquidation scareSouth Korean food and beverage giant Lotte Welfood is targeting growth in India and high-value product innovation domestically to improve profitability.
Lotte Group recently held its 2025 IR Day to update investors on the business directions that its five major affiliates – Lotte Welfood, Lotte Chilsung Beverage, Lotte Shopping, and Lotte Chemical – would be taking in 2025.
This event was likely a move to quell concerns that arose at the end of 2024, when Lotte was faced a liquidity crisis after poor performance by the Lotte Chemical arm left the company needing to repay some KRW2tn (US$1.4bn) in corporate bonds, a crisis that Lotte averted by offering the Lotte World Tower as collateral and selling various assets.
Generative AI could help packaging designers visualize their concept packs on-shelf, allowing packaging and brand professionals to test different concepts in different settings. (TommL/Getty Images)Food firms must focus on packaging recyclability performance to meet sustainability requirements in APAC, EU – expertsBrands operating in the Asia Pacific (APAC) and European Union (EU) regions should aim to emphasise the reusability of their recyclable packaging in order to ensure they meet sustainability and regulatory requirements.
Several of the sustainability aspects are already being enforced as binding regulations in countries like Japan and South Korea.
Each country has varied infrastructure abilities and different binding and aspirational targets. However, they all have the common goal of improving the recyclability performance of food and beverage packaging.
Recyclability performance is a measure of how much of a product’s material can be recycled at the end of its life cycle.
Gluten-free products are gaining popularity, as the numbers of consumers with and intolerance to gluten, rise. Credit: GettyImages (baibaz/Getty Images)Gluten-free in the spotlight under new Singapore pre-packaged food rulesThe Singapore Food Agency (SFA) has introduced new pre-packaged food regulations, with a focus on gluten and improving the clarity of ingredient labelling.
This latest amendment to existing local Food Regulations were the result of two public consultations conducted by SFA in 2020 and 2022 respectively.
One of the most major changes made was the introduction of a new regulation 250B concerning gluten-free and reduced-gluten foods.
“‘Gluten’ is a protein fraction from cereals including barley, oat, rye, wheat, hybridised strains of these cereals or products of these cereals, and to which some persons are hypersensitive,” Singapore Minister of Sustainability and the Environment Stanley Loh, under which the purview of SFA falls, stated via a formal statement.
Export enthusiasm: Nestle Malaysia ‘confident’ for positive 2025 despite FY24 profits downturnNestle Malaysia has voiced confidence for a positive 2025 despite seeing large declines in its FY2024 profits, with plans to emphasise its position as a halal manufacturing hub and export capabilities.
Nestle Malaysia recently announced its FY2024 full-year financial results, reporting a -11.7% decline year-on-year in turnover to RM6.22bn (US$1.39bn) as well as a -37% decline year-on-year in profits after tax to RM659.9mn (US$147.7mn). Its Q4FY2024 profits after tax also saw a major -72.2% drop year-on-year.
Despite these apparently distressing negative numbers, which the firm has attributed to consumer hesitancy, a drop in purchasing power as well as a high baseline, Nestle Malaysia CEO Juan Aranols has expressed confidence for healthy growth in the coming year.
SPC Group’s new plant in Malaysia (SPC Group)SPC Group eyes bigger slice of halal market, Malaysia plant to boost expansion in SEA, MESouth Korean food major SPC Group’s recently completed manufacturing plant in Malaysia will help drive its growth in South East Asia and the Middle East.
Located in Nusajaya Tech Park, Johor, this facility is poised to play an important role in increasing the company’s production capacity, streamlining international distribution, and reinforcing its position in the global bakery and food industry.
SPC Group is known for being home to brands such as SPC Samlip and Paris Baguette, of which the latter has around 4,000 outlets worldwide.
According to the company, Paris Baguette is one of the fastest-growing bakery brands, and the opening of this plant would facilitate a seamless, efficient supply chain that supports the brand’s growing international presence.
FSSAI sets July 1 every year as date for amendment of labelling and display regulations. (vgajic/Getty Images)India takes a ‘positive step’ in fixing July 1 every year as date for amendment of food labelling and display regulationsChanges to labelling rules in India will provide clarity in compliance planning for food businesses and improve trust among consumers, said industry experts in the country.
This latest development is a reform to the Food Safety and Standards (labelling and Display) Regulations, which took effect in 2020.
The objective is to ease compliance for food businesses while empowering consumers to make informed choices, said the Food Safety and Standards Authority of India (FSSAI).
Food business operators now have a consistent timeline for compliance. Any necessary updates to product labels – whether changes to ingredients lists, nutritional details, or other mandated information – will need to be implemented by July 1 each year.
The Food Safety and Standards Authority of India (FSSAI) has proposed mandating a logo on milk products, among other regulatory changes. (FangXiaNuo/Getty Images)India proposes mandatory milk product logo, plus larger sat fat, sugar, salt labelsThe Food Safety and Standards Authority of India (FSSAI) has proposed mandating a logo on milk products, while calling for more prominent salt, sugar and fat labelling.
This is one of the three amendments proposed in the Food Safety and Standards (Labelling and Display) Amendment Regulations, 2025.
The draft notification published proposed that “all milk and milk products, including composite milk products … shall carry the logo as specified”.
It also provided the colour and size specifications for components of the logo, which is a white drop enclosed within a blue square box.
Baladna is Qatar’s biggest dairy company. (SimonSkafar/Getty Images)Baladna taps high protein dairy, Algerian collaboration for growth after Malaysia venture falls throughQatari dairy giant Baladna is looking to increase its focus on its high-protein products and extend collaboration with the Algerian government, after a previous joint venture in Malaysia came to an end.
Baladna recently announced its FY2024 full-year financial results, reporting ‘record-high’ revenue of QAR1.15bn (US$) which was up 8% year-on-year, as well as a 69% year-on-year increase in net profit to QAR185mn (US$).
Baladna is already the market leader in many key dairy and juice categories in its home ground Qatar, particularly in key sectors such as fresh milk (96.1%) and UHT milk (92.5%), so the firm is now looking at various new strategies to keep up this rate of growth and push through to the next level.
“On the consumer strategy front, we have strong interest in the high-protein milk and yoghurt segments, and have already launched new innovations into this market where we see a lot of potential,” Baladna CFP Saifullah Khan told the floor during the firm’s most recent investors’ meeting.
