Food Business News - October 9, 2012 - (Page 9)

Editorial EDITORIAL STAFF Editor-in-chief Morton I. Sosland Executive editor, markets Neil N. Sosland Editor L. Joshua Sosland Executive editor Keith Nunes Senior editor, markets Jay S. Sjerven Managing editor Eric J. Schroeder Associate editor Jeff Gelski Associate editor Ron Sterk Assistant editor, markets Laura Lloyd Internet editors Allison Gibeson Erica Shaffer Graphic designer, market graphics, data Christina Sullivan MORTON SOSLAND Instant noodles as single food product success PUBLISHING STAFF Chairman Charles S. Sosland Vice-chairman L. Joshua Sosland President and publisher Mark Sabo Associate publisher G. Michael Gude David DePaul Bruce Webster Vice-president, chief financial officer Melanie Hepperly Audience development director Don Keating Advertising manager Nora Wages Director of design services Sadowna Conarroe Circulation manager Judith Arnone Digital systems analyst Marj Potts Manager of advertising design Becky White Director of e-Business Jon Hall Director of on-line advertising and promotions Carrie Fluegge Promotions manager Taré Torres WE’RE EAGER TO RECEIVE YOUR FEEDBACK: E-mail or write to us at Food Business News, 4800 Main Street, Suite 100, Kansas City, Mo, 64112 hile reliable data are lacking to af- underscore the fundamental value of noofirm that baking bread is the world’s dles in assuring an adequate food supply for largest user of wheat flour, the a growing population. temptation is great to cite in second place Hardly anything emphasizes this role another food, instant or cup noodles. Since more starkly than the expansion of demand instant noodles are very much a modern- ruling in every country where instant nooday, even fairly new food as compared with dles have a foothold. After China, Indonesia bread’s venerability, it is instructive to ex- is the largest market, at 14.5 billion packets amine how such a new product has captured per year, followed by Japan at 5.5 billion, so grand a market share. Yes, convenience Vietnam at 4.9 billion and the United States and cheapness account for a large part of at 4 billion. Demand is coming on strong in the success of instant noodles, once more emphasizing for the food indusIt is in barely 50 years that instant noodles try the essential role of these forces in driving demand. Yet, a deeper look have become a product with annual sales emphasizes that product innovation, both in flavoring and product qualwithin range of 100 billion packets. ity as well as in packaging, deserves credit for boosting demand. The best source of data on instant noodles is the World Instant Noodle Associa- countries as diverse as Russia and Brazil. Indonesia is a fascinating example of the tion, which owes its creation to the late Momofuku Ando, the Japanese inventor of this way this product has affected the makeup product. His company, Nissin Foods, ranks of the entire food industry. The Indofood among leaders of the global industry. It was Group, Indonesia’s largest, is also the world’s Mr. Ando who at a time of post-World War II largest manufacturer of instant noodles. To food shortages saw the opportunity to use supply that demand, its flour milling unit, relief shipments of American flour to make Bogasari, ranks as one of the world’s largest, a noodle product that would provide needed operating in Jakarta a milling facility that is nutrients. As his product’s reach extended to unrivalled. At one time Indofood turned out other countries, he promoted the association most of Indonesia’s flour to make noodles. to serve as a clearing house for sharing in- It now must deal with 16 competitive millformation as well as to lead in spurring do- ing companies. This nation’s noodle market nations of instant noodles in natural or other growth matches its 6% annual uptrend in disasters causing an immediate food need. gross domestic product, reflecting the way Quite unexpectedly, instant noodles, free of rising disposable income has created a very nuclear contamination, assumed an essential different food market where a product like position in feeding the Japanese when the instant or cup noodles has captured an unnation, as a result of natural causes, faced a beatable position. Indofood in Indonesia, Tingyi in China and nuclear disaster last year. It is in barely 50 years that instant noodles Nissin in Japan are in the forefront of efforts have become a product with annual sales to spur instant noodle demand. In China, Tinwithin range of 100 billion packets. Half of gyi is credited with introducing an incredible those sales are in China, where the largest 280 different flavors. The huge market held noodle maker, Tingyi Holding, recently host- by instant noodles, largely at the expense of ed a “summit” of the association. The main rice, has been deemed well worth saving to agenda item involved dealing with criticism the point that all sectors — flour miller, nuof instant noodles as unhealthy because of trient provider, spice supplier and packaging claims of excess sodium and fat as well as producer — have joined to assure that this the flash frying used in making the prod- position continues to build. It serves as a uct. The industry is taking steps to mitigate stark reminder of what may be done with a the attacks, while engaging in marketing to single successful food product. FBN W October 9, 2012 FOODBUSINESS NEWS ® 9

Table of Contents for the Digital Edition of Food Business News - October 9, 2012

Food Business News - October 9, 2012
Unilever may put Skippy brand up for sale
Fruit prices on the rise
Bio-engineering on the ballot in California
Table of Contents
Web Contents
Editorial - Instant noodles as single food product success
Snyder’s-Lance expands distribution in southwest U.S.
American Sugar buys majority of Belize Sugar Industries
F.A.O. Food Price Index rises in September
Sunland peanut butter recall expands
RAND study shows rapid rise of morbid obesity
Dean puts Morningstar Foods on the trading block
Chiquita Brands names Edward Lonergan as c.e.o.
Smart Balance unveils new name, new structure
Clarkson Grain acquires US Soy
Alpina opens yogurt facility in New York
Chris Solly to c.e.o. of Ehrmann USA
ConAgra to expand frozen meals production
Campbell Soup closing two facilities
Jack Link’s acquiring Nebraska facility
New Kraft seeks to unlock ‘true potential'
Mondelez establishes global ambitions
August Restaurant Performance Index rises
Hershey to source 100% certified cocoa by 2020
Kroger introducing ‘Simple’ brands
Environmental claims to face greater scrutiny
Health and Wellness - Sodium reduction remains a priority
Ingredient Innovations - GRAS for probiotics seen as step toward market acceptance
Studies focus on probiotic benefits
New Food Products
Ingredient Market Trends
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - October 9, 2012