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2 GENERAL NEWS GOURMET NEWS NOVEMBER 2013 www.gourmetnews.com General News General Mills Launches $1.1 Million Sustainable Sourcing Program in Peru As part of the General Mills long term sustainable sourcing program, the company recently entered a four-year joint commitment with supplier partner AgroMantaro to provide $1.1 million to help smallholder artichoke farmers in Peru increase yields and improve profitability. The new program will reach nearly 100 small-scale artichoke farmers in Peru and will provide training on crop management and post-harvest practices, as well as microloans to purchase artichoke shoots and seeds for those who lack collateral or a verifiable credit history. The program will also offer program participants in-depth training on how to form farmer cooperatives and provide financial planning education and information on how to formulate business plans. Depending on how much land farmers devote to artichokes, families can increase their income by an average of 36 percent annually. Peru's central region was previously known for cultivating crops such as potatoes and grains, which have lower income potential. "General Mills celebrates a century-long history of working closely with farmers around the world to promote sustainable agriculture," said Jerry Lynch, Vice President and Chief Sustainability Officer at General Mills. "We continue that tradition with an increased focus on improving the environmental, economic and social impacts of sustainable sourcing. We're not going to see dramatic change unless we make investments to help farmers grow more and improve their livelihoods." The Central Andes region of Junin, with its ideal climate, rich soil and consistent water source, is an optimal location to grow premium artichokes. Artichokes grown in this region produce for three years, after which the field has to be re-planted. Historically, Andes farmers have not had reliable funds or enough savings to secure future plantings. This new program centers on the farmer—providing them with technical assistance, knowledge sharing and financial support for seeds and plants. "By focusing on the farmers, we created a rich business model that fosters worldclass value throughout the entire supply chain—for the farmers, our company, our clients and the end consumers," said Augusto Fernandini, General Manager and partner at AgroMantaro. "Our aim is to cre- ate a positive blend with farmers sharing their local experience and our company sharing insights on how to build a sustainable and profitable farming business." General Mills has a century-long history of working with farmers around the world to promote sustainable agriculture. Higher yielding crops, reduced pesticide use and disease resistance are among the best practices that General Mills has shared with farmers. From China to Mexico, General Mills has advanced several programs directly benefiting smallholder farmers. Most recently, General Mills, the General Mills Foundation and Haagen-Dazs launched a program in Madagascar to foster greater economic vitality for smallholder vanilla farmers to ensure the availability of high quality vanilla for future generations. General Mills is one of the world's largest food companies, operating in more than 100 countries around the world. Its brands include Cheerios, Fiber One, Haagen-Dazs, Nature Valley, Yoplait, Betty Crocker, Pillsbury, Green Giant, Old El Paso, Wanchai Ferry, Yoki and more. Headquartered in Minneapolis, Minn, General Mills had fiscal 2013 worldwide sales of $17.8 billion. GN Study Finds Latino Food Purchases Driven by Distinct Cultural and Emotional Values Nearly all consumers buy private label products when grocery shopping. This is according to a recent study of 6,600 consumers conducted by Market Force Information, a global customer intelligence solutions company. Of the categories studied, dairy products were the most frequently purchased private label groceries, while snacks ranked second, and cereal and cleaning supplies tied for third. According to the study, 83 percent of consumers indicated that they sometimes buy private label brands if the product is better or it offers a higher value than the national brand alternative in a particular category. Thirteen percent said that they always buy private label if one is offered in their desired product category, and only 4 percent are either unaware of private label products or never purchase them because they believe national brands offer a better value and product. Most consumers are loading their carts with private label dairy products such as milk and cheese on a regular basis. More than three-quarters of respondents said they purchase private label dairy products most or some of the time, 19 percent always and 5 percent never. Price appears to be the main motivator. Of the 95 percent who buy private label dairy somewhat regularly, 78 percent said it is because of the price and 48 percent pointed to the good value. Of the 5 percent who only buy national brand dairy, taste and quality were the main factors. Perhaps because it can carry a high price tag, cereal is another prevalent private label grocery buy. When asked how frequently they purchase their grocer's private label cereal, 63 percent said some or most of the time, 8 percent said always and 29 percent never. With nearly a third of those surveyed stating that they never purchase grocery store brand cereals, it is clear however that private label brands have some work to do in converting consumers from national brands. Of the 71 percent who indicated they purchase private label, 76 percent said they do so because of the price and 47 percent for the value. The consumers who only buy national brand cereal primarily do so for the taste and because they have coupons for it. More than half of respondents said that they buy private label snacks some of the time. Twenty-two percent choose them most of the time. Seven percent always opt for private label snacks. One-fifth of consumers said they never purchase private label snacks. "It's worth noting that in every category we studied, consumers cited price as the primary reason for purchasing private label brands," said Janet Eden-Harris, Chief Marketing Officer for Market Force. "On the flip side, taste and quality were the top reasons given by consumers for never purchasing private label. If grocery brands can deliver on both price and taste, they have a good chance at grabbing more private label market share." The survey was conducted in May 2013 across the United States and Canada. The pool of 6,645 respondents reflected a broad spectrum of income levels, with 60 percent reporting household incomes of more than $50,000 a year. Respondents' ages ranged from 19 to over 65. Approximately 73 percent were women and 27 percent were men. Half have children at home. For more information, visit www.marketforce.com. GN BRIEFS Fi Europe to Showcase Food Ingredients, November 19-21 Fi (Food ingredients) Europe was launched in Utrecht, The Netherlands, in 1986. Since then, the trade show's portfolio of live events, publications, digital solutions and high-level conferences have developed a reputation for excellence within the global food ingredients industry. Over 500,000 people have attended Fi Europe's shows over the years, creating billions of euros worth of business. Fi Europe's events, digital solutions and supporting products, deliver a proven route to market, with a truly global audience. This year, Fi Europe will take place Nov.19-21 in Messe Frankfurt, Germany. More than 26,000 attendees will be attending the show across the three days. Attendees at Fi Europe are looking for solutions to further develop products in their pipeline, reformulate their existing products and pursue cost controlling solutions. For more information about the Fi Europe or to register as an attendee, visit www .fi-europe.eu/Prregister. World Tea Expo, Healthy Beverage Expo to Move to SoCal in 2014 The co-located 2014 World Tea Expo and Healthy Beverage Expo will take place in Long Beach, Calif, May 29-31. Healthy Beverage Expo focuses on better-for-you beverages with healthful ingredients, facilitating the dialogue surrounding what "healthy" means to the industry and ultimately the consumer. World Tea Expo is the leading tradeshow and conference focused 100 percent on premium teas and related products. Attendee registration for both events is set to open in mid-January. Additional details are available now at www.WorldTeaExpo.com and www.HealthyBeverageExpo.com. "I'm delighted to welcome World Tea Expo and Healthy Beverage Expo to Long Beach," said Long Beach Mayor Bob Foster. "Long Beach is the perfect fit to host these two expos as our city is certainly a health-minded community." SupplySide West Gathers Buyers and Sellers from Around the World SupplySide West brings together the suppliers and buyers that drive the dietary supplement, food, beverage, animal nutrition, personal care and cosmetic marketplace. Key professionals and thought leaders from around the world are scheduled to meet at The Venetian in Las Vegas on Nov. 12-16. Their goal is to explore and discover innovations from around the world and to develop the next product that will drive revenue, market share and consumer loyalty. The organizers of SupplySide West work to help business professionals break through the hype, ambiguity and information deluge they experience by offering trustworthy guidance on the decisions they need to make. A number of educational sessions and special events are planned to help attendees make smart purchasing decisions. For more information on SupplySide West or to register as an attendee, visit www.west.supplysideshow.com.