2011News and Reviews

• 1 . New calorie labelling doesn’t add up for food producers and retailers

• Nutritionist challenges over-simplified nutrition information as a threat to overall consumer health
  The Department of Health’s voluntary Responsibility Deal will require signatories including Sainsbury’s, Morrisons, ASDA, Compass Group, Premier Foods, Mars and Unilever to include prominent calorie labelling on all their food packaging from September this year.
  Nutritionist Kate Cook is concerned at the impact this will have on consumers’ ability to make good overall choices for their dietary health. This in turn could affect the popularity and sales of key lines for the food and retail sector. She explains the problem: “While some high calorie foods are empty of nutritional value, others have significant benefits in the daily diet. And conversely, some low calorie foods don’t deliver all that they promise. For example, salmon is high in fat but contains vital omega 3 and protein. In a regime where only calories count, it ranks alongside low quality junk food, potentially being rejected as “unhealthy”. Conversely, some “diet” range sandwiches are very low in calories but encourage unstable blood sugar and don’t provide enough energy, leading to snacking and weight gain. A higher calorie alternative could be a better choice for sustainable weight loss.”
  Cook’s Nutrition Coach consultancy focuses on helping food retailers, manufacturers and restaurants convey a more balanced message about the nutritional value of their products. As well as analysing calorie information, she evaluates and explains the micro-nutrient and fat content. She says, “Brands need to communicate more helpful health and nutrition information to sustain customer confidence. This one-dimensional approach could pose new risks to the public’s health. There’s an opportunity for businesses across the food industry to provide more complete guidance that puts calorie labelling in context. Of course the challenge is doing so in a simple and authoritative way that customers will understand and act on to the overall benefit of their health.”
  Kate Cook doesn’t dispute that the government health Responsibility Deal is a worthwhile initiative, with its broad aim of encouraging healthier lifestyles for the British public through a range of dietary and exercise measures. And she finds it easy to see why the government has chosen to focus on calorie counting. “Many consumers understand the measure because it’s been associated with popular diets and weight loss for decades. But consuming enough micronutrients and “good” fats is also vitally important for good health. Without them, humans still suffer from conditions like scurvy and rickets which most of us assume have been consigned to the history books. Cases of both have recently been reported in the UK. And for weight loss, it’s so important to balance blood sugar throughout the day to avoid the peaks and troughs that lead to hunger pangs and bingeing, one of the main causes of obesity.”

• 2 . Companies still failing to comply with AC Inspection Legislation

• Any UK firm with air conditioning systems that have a capacity of 12kW or over should – by law – have undergone an energy efficiency inspection by 4 January of this year. But it appears that the majority of companies have failed to do so – and are now breaking the law.
  1 June 2011 – All UK buildings with air conditioning systems that have a capacity of over 12kW should have been inspected for energy efficiency by 4 January 2011. The Heating and Ventilating Contractors’ Association (HVCA) has received information from the Department for Communities and Local Government which indicates that the majority of such installations have still not been inspected and building owners are now breaking the law.
  Apart from the potential penalties companies face, they are almost certainly paying higher energy bills by failing to have their systems inspected by experts who can advise on efficiency improvements.
  Under the regulations all air conditioning systems with a cooling capacity over 12kW must be inspected. All new systems put in place on or after 1 January 2008 are to be inspected within 5 years of installation, while all other air conditioning systems over 250kW output should have been inspected by 4 January 2009. Any air conditioning systems above 12kW should have been inspected by 4 January 2011.
  The air conditioning report (ACR) produced by an accredited air conditioning assessor following the inspection will include recommendations about what changes should be made to the installation or how the system(s) could be run more efficiently. By implementing these recommendations, businesses can save money and cut their carbon emissions – and meet many of their Corporate Social Responsibility (CSR) goals.
  The HVCA has dozens of members that are registered with a Competent Persons Scheme and are qualified to undertake air conditioning energy assessments – they have an easy to use search facility to find relevant members on their website at: http://www.hvca.org.uk.

• 3 . New initiative to prevent businesses throwing money down the drain

• British Frozen Food Federation (BFFF) members can potentially obtain refunds and save money on their water bills through a new free venture with Water Audit Services.
  Open to all BFFF members procuring water, the free service is designed to identify incorrect charges by water suppliers and produce resulting refunds or savings. Backdated as long as six years ago, it is engineered to help companies reduce their past and ongoing water charges.
  As part of the service Water Audit Services undertakes everything in the process from an initial appraisal of the last twelve months water bill charges, to site surveys and the production of reports. At the end of this process Water Audit Services is in a position to obtain refunds and/or savings on water consumption from water suppliers for their customers. Aside from being free, this audit is also obligation free and BFFF members can ‘cherry pick’ as many or as few of the recommendations in the reports as they wish.
  Gareth Vaughan, senior business development manager, said: “In Water Audit Services’ experience, one in two businesses is incorrectly charged by their water supplier and one in four is seriously overcharged. Our audits have produced refunds and savings from as little as a few thousand pounds to over £300k. One satisfied customer - who originally discounted refunds because of previous misadvice - even claimed over £1m!”
  “We are excited about working with BFFF members to help them reduce their water costs. Not only will this new venture help BFFF members obtain refunds and savings, it will also make a positive impact on the environment. Our audit is free and with the option to implement as many or as few of the recommendations as they wish.”
  Brian Young, director general of the British Frozen Food Federation commented, “Water is becoming an ever increasing cost for producers, wholesalers and retailers. The federation was keen to support its membership in gaining water refunds and savings and help reduce our members’ ‘water footprint’.”
  To find out more information on the BFFF and
  Water Audit Services initiative please contact Gareth Vaughan on gareth@waterauditservices.co.uk or telephone 01780-483830 or visit Water Audit Services website on www.waterauditservices.co.uk

• 4 . UK Catering Supplies industry - What's in store for 2011?

• As the UK Catering Supplies industry emerged from the depths of recession in 2010 a fragmented industry appeared from the chaos. According to new research by leading industry analysts Plimsoll, the market is polarised between those getting it right and those struggling to recover.
  David Pattison, senior analyst and author of the 2011 Plimsoll Analysis explains, “Now that the storm is lifting we have been able to assess the damage left behind. 41 companies are in parlous state and starting the New Year clinging on for dear life. We have rated them as Danger accordingly. Falling demand was the final nail in the coffin for many. The mistake they made though was to not make those painful cuts early enough to protect their business”.
  However, the green shoots are now well entrenched with the number of companies rated as Strong rising to 85. Pattison explains, “We rated these companies as Strong in our latest report and I have to congratulate them. In fact, many of them retained a Strong rating throughout the recession. They have managed to be commercially successful without jeopardising their financial stability. While others fail around them, they are in pole position to capitalise in 2011”.
  When pressed on what these contrasting fortunes mean for the UK Catering Supplies industry, he offers the following 4 points:
  1) Getting back to growth will be paramount this year as costs and overheads continue to increase. Without growth companies will have to reduce overheads dramatically. Companies need to look to beat the current average profit margin of 2% if they are to cover costs and invest in other growth areas.
  2) Identifying these growth areas will be vital as the market grows slowly. A group of 33 companies are leading the way with growth of over 10%. With bank funding still scarce, fast growing companies will have the resources and business model to further exploit exciting new opportunities.
  3) The 41 companies we rated as Danger will be increasingly squeezed out of the market as they are simply not competitive in the current economic environment. Even their attractiveness as an acquisition is diminishing as new growth areas look more exciting. Watch out for a wave of corporate failures among these companies in 2011.
  4) Mergers and Acquisitions will continue but the profile of companies involved will shift. There will still be distress sales this year as companies buy struggling competitors on the cheap. However, there will be a return of more strategic acquisitions as larger companies look to buy into growth areas in the market. The new Plimsoll Analysis has named 13 distressed companies that could be bought for a discount and a further 10 fast growing companies that are sure to attract the attention of the larger players in 2011.
  The new Plimsoll Industry Analysis – Catering Supplies gives an instant performance rating on the top 205 companies in the market. Each company has been rated as Strong, Good, Mediocre, Caution or Danger according to their latest performance. A graphical and written analysis will tell you which companies are in trouble and who is getting it right.
  Catering Manager readers are entitled to a £50 discount of this new special edition of the Plimsoll Industry Analysis – Catering Supplies. Call 01642 626400 for further details and quote reference PR/HP28.

• 5 . Jobs summit highlights hospitality industry's potential

• “we can create 236,000 new jobs with the right framework,”
  – BHA chief executive
• 
  The Prime Minister’s jobs summit with executives from leading companies emphasises the importance of the hospitality industry as a jobs creator, says Ufi Ibrahim, chief executive of the British Hospitality Association.
  Those invited included major BHA-member hospitality industry groups, InterContinental Hotels Group and McDonald’s. Both are already producing a large number of entry-level jobs which will allow young people to develop their career in hospitality.
  “In our report which we published in October – Creating Jobs in Britain – A Hospitality Economy Proposition - we said that hospitality could create 236,000 jobs by 2015 providing the right supportive framework was in place,” says Ms Ibrahim. .
  “It’s critically important that government realises that this cannot be achieved alone. We need a positive partnership with government that recognises that policy and regulations can make or break this objective. Past governments have just not recognised the industry’s job-creating potential.”
  Ms Ibrahim said that, with the rate of VAT now at 20 per cent, the British hospitality industry was operating at an even greater disadvantage to its European competitors than before, most of whom had reduced rates of VAT for hospitality services.
  “Needless regulations are costly and time-consuming to implement while lack of funding holds back growth. The BHA has called for a cross-cabinet committee for hospitality and tourism to coordinate policy across Whitehall.
  “We’ve got to get government to provide the right framework for industry to be able to create the jobs and skills that the country so urgently needs.”

• 6 . Support for egg sector vital, NFU President warns

• Consumers and the rest of the food chain must support the British egg market when new European welfare rules for hens are introduced later this year.
  NFU president Peter Kendall has told delegates at the British Lion Egg Products’ press event that producers in the UK had already spent £400million to meet – and in many cases exceed - European legislation which will make it illegal to produce eggs from conventional battery cages.
  Mr Kendall urged consumers, the food chain and food service sector to purchase British eggs instead of potentially cheaper eggs from countries that would not meet new welfare standards come December 31.
  “It is vital that everyone in the food chain, from consumers, retailers and food service sector, gets behind this great message we have on welfare standards in this country rather than letting it end up as a nasty sting in the tail.”

• 7 . Online access proves a hit

• In Depth Managed Services is delighted to announce the launch of their Online Client Access System.
  In Depth has been using automated quality inspections via hand held XDA units for some time and this development was the natural step forward to drive efficiencies within our business and give our clients visibility of management data as and when they wish to view it.
  Project Manager, Suzanne Richardson, said “we have developed the system so that as an inspection is completed on site, the results of that inspection are made available on line for our national key account clients to view. We have developed a tiered access system, so that individual Site Managers will be able to view their own site and Regional / National Managers will have visibility of all site audits. This is a tremendous step forward for our business and our national accounts”.
  For further information on In Depth Managed Services telephone 0845 605 2251 email info@indepth-cleaning.co.uk or visit www.indepth-cleaning.co.uk

• 8 . Microbiological safety of fresh produce

• Incidences of food safety breakdown in the fresh produce sector are infrequent, but when they do occur, they can be serious and may attract much media attention. Therefore, the microbiological safety of fresh produce needs to be taken seriously. To address the issues facing the industry, Campden BRI is bringing together various interested parties at a seminar (see http://www.campden.co.uk/micro-safety-seminar.htm) to evaluate the hazards, risks and potential solutions.