2013: The year’s biggest Food Processing Technology stories

Horse meat discovered in Irish and UK beef burgers

At the beginning of the year, beef burgers sold in several supermarket chains in Ireland and the UK were found to contain horse meat.

The findings were the result of a Food Safety Authority of Ireland (FSAI) study which tested a number of beef products for the presence of horse and pig DNA. The study results showed that of the 27 beef burger products that were assessed, ten products (37%) contained horse DNA, while 23 products (85%) contained pig DNA.

As more cases were discovered, the scandal rocked the UK food industry and affected countries across Europe, even reaching as far as Asia.

WhiteWave Foods signs deal to buy organic food firm Earthbound Farm

US-based WhiteWave Foods signed an agreement to take over Earthbound Farm, an organic food brand, from its shareholders, led by private equity firm Kainos Capital and Earthbound founders Drew & Myra Goodman, in a $600m cash deal.

Earthbound Farm produces a wide range of organic fresh and frozen fruits and vegetables, dried fruits and snacks.

WhiteWave stated that it will finance the deal with borrowings under its existing credit facilities and intends to increase its credit facilities by $500m to support future growth.

Murdock completes Dole Food takeover

Dole Food, a US-based food company, announced that its chairman and CEO David H. Murdock has completed the acquisition of all of its outstanding shares, in a deal valued at over $1.6bn that includes debt, fees and expenses.

The merger agreement was closed following the company’s stockholder approval at a special meeting held on 31 October 2013.

Under the agreement, Murdock, who earlier owned 40% of Dole stock, will pay $13.50 in cash for each share for all the outstanding shares of common stock.

UK launches Agri-Tech Catalyst to support agricultural technology innovations

The UK Government launched a new £70m Agri-Tech Catalyst to offer funding to support new agricultural technology innovations in the country.

The announcement was made by the Universities and Science minister David Willetts.

The development is part of the government’s recent UK Strategy for Agricultural Technologies, which seeks to position the country at the forefront of the sustainable intensification of agricultural production.

Tetra Pak unveils whey filtration system for dairy manufacturers

Tetra Pak, a Swedish food processing and packaging solutions provider, unveiled a new whey filtration system, Tetra Alcross RO Lite.

Whey is a common by-product of cheese production and it is often dumped as waste.

The by-product is valuable only when it is concentrated; however, the filtration technology required for this tends to be highly customised and too costly for small and medium sized dairies.

World’s first cultured beef burger taste-tested in UK

The world’s first cultured beef hamburger made from meat grown in a laboratory using stem cells was unveiled at Riverside Studios in West London, at a public tasting event marking the launch of the innovation.

The burger was cooked by chef Richard McGeown at a news conference on 5 August and tasted by Chicago-based author Josh Schonwald and Austrian food researcher Hanni Rützler.

The burger was made using lab-grown beef and other ingredients such as salt, egg powder and breadcrumbs; red beet juice and saffron were added to bring out its natural colours.

HJ Heinz to eliminate 600 jobs in North America

In August American food company HJ Heinz announced plans to eliminate 600 jobs across its operations in the US and Canada, as part of its efforts to support growth while further strengthening its leading brands.

The development came after the sale of the company to an investment consortium comprised of Warren Buffett’s Berkshire Hathaway and private equity firm 3G Capital, in a deal worth $28bn earlier this year.

All the layoffs, which represent 9% of the company’s workforce in North America, are white collar jobs.

Berkshire Hathaway, 3G Capital acquire HJ Heinz for $28bn

An investment consortium, comprised of Warren Buffett’s Berkshire Hathaway and private equity firm 3G Capital, completed the acquisition of American food company HJ Heinz in a deal worth $28bn.

Under the terms of the agreement, Heinz shareholders will receive $72.50 in cash for each share of common stock they owned as of the effective time of the merger, without interest and less any applicable withholding taxes.

With the completion of the deal, the common stock of Heinz will no longer be listed for trading on the New York Stock Exchange and the company expects no further trading following the closure of business on 7 June 2013.

European Union set to ban ‘bee-harming’ neonicotinoid pesticides

In May the European Union (EU) was set to impose a temporary ban on the use of certain ‘bee-harming’ agricultural pesticides that are blamed for dramatically declining bee populations worldwide.

Bee populations are believed to be responsible for pollinating about one-third of the global crop production.

The proposal restricts the use of three neonicotinoids pesticides – clothianidin, imidacloprid and thiametoxam – on flowering crops that bees feed upon, including sunflowers, oilseed rape and corn.

ConAgra Foods, Cargill, CHS to form new flour milling joint venture

ConAgra Mills, Cargill and CHS entered into an agreement to combine their North American flour milling businesses to form a new flour milling company known as Ardent Mills, which will cater to customers in the baking and food industries.

The new joint venture will bring together the leading flour milling companies in the US – ConAgra Mills, a part of ConAgra Foods’ Commercial Foods division, and Horizon Milling, a Cargill-CHS joint venture formed in 2002.

Ardent Mills will utilise the strengths, capabilities and expertise of ConAgra Foods, Cargill and CHS to offer flour and grain products, services and solutions, which will be supported by a network of wheat sourcing capabilities, flour milling and bakery mix facilities across North America.

21 US companies cut salt content in pre-packaged foods

Nearly 21 companies in the US voluntarily reduced salt content in pre-packaged or restaurant food products, amidst an ongoing campaign led by New York Mayor Michael Bloomberg to cut the amount of sodium in the diets of New Yorkers and consumers across the country.

Approximately 90% of Americans consume more salt than they should, which can lead to high blood pressure and diseases.

To address this concern, New York launched the National Salt Reduction Initiative (NSRI), a nationwide partnership of over 90 city and state health authorities and organisations, in 2008.

ConAgra Foods announces acquisition of Ralcorp for $6.8bn

US-based ConAgra Foods completed the acquisition of Ralcorp, a leading manufacturer of private label food in the US, for $6.8bn, including the assumption of debt.

ConAgra Foods agreed to acquire Ralcorp on 26 November 2012 for $90 per share of Ralcorp common stock in cash.

The completion of the deal followed the approval of the acquisition by Ralcorp’s shareholders on 29 January, and the receipt of all required regulatory clearances.