- Bay State Milling, which has carved out a niche in the gluten-free flour & bakery mixes segment, now plans to enter into finished products like pizza bases. The problem with gluten-free “flours” is texture and the challenge is finding ways to hold the “dough” from them together.
- Forget coffee, now it’s iced tea that’s the target of CPG marketers: the Arizona brand has enjoyed leadership in the bottled iced tea category through aggressive pricing, but now Lipton is catching up with newer formulations in its Lipton Brisk, Lipton Iced Tea and Lipton Pure Leaf lines.
- According to a study, China has targeted packaging as a sector it intends to dominate. The Chinese Packaging Federation claims China’s 2010 market already reached $183.9bn, second to the US. Rapid growth of 20% annually in food packaging helped drive expansion. As with other BRIC countries, Chinese consumers are seeing a rise of disposable income and are spending, whereas European and American consumers have cut back.
- The baking lobby is, well, lobbying Washington to end sugar price supports. The ancient 1981 Farm Bill requires that supply not exceed demand, keeping prices artificially high. Naturally farm lobbying groups like the American Sugar Alliance are in favor of the program that restricts planting, has quotas for cheaper imported sugar, and can divert excess to ethanol production. The National Confectioners Association and the National Bakers Associationare making the claim high food prices are costing jobs.
 Source: Paper and Packaging M&A Update.