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Impacting Global Trends and Developments in the Potato Processing Industry

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Impacting Global Trends and Developments in the Potato Processing Industry

  1. 1. Impacting global Trends and developments<br />International Potato Processing and Storage Convention<br />Charlottetown, PEI, Canada June 23-25, 2009<br />6/24/2009<br />www.PotatoPro.com<br />
  2. 2. Focus of the presentation<br />One Question:<br />“What are the key trends and developments influencing the potato processing industry today”<br />6/24/2009<br />www.PotatoPro.com<br />
  3. 3. Potato is a versatile raw material<br />6/24/2009<br />www.PotatoPro.com<br />French Fries<br />Dehydrated Potato<br />Potato Chips<br />Potato Starch<br />
  4. 4. Potato is a versatile raw material<br />6/24/2009<br />www.PotatoPro.com<br />French Fries<br />Dehydrated Potato<br />Potatoes Processed<br />Potato Chips<br />Potato Starch<br />In total used for processing (2006): about 30 million ton (Keijbets, Potato Research)<br />
  5. 5. Key Trends<br />6/24/2009<br />www.PotatoPro.com<br />And the Key Trends are . . . . . . . . . . .<br />
  6. 6. Key Trends<br />6/24/2009<br />www.PotatoPro.com<br />
  7. 7. Key Trends<br /><ul><li>Product Diversification</li></ul>6/24/2009<br />www.PotatoPro.com<br />
  8. 8. Key Trends: Product Diversification<br />Why diversification?<br />To create more added value<br />To distinguish yourself (competition)<br />Reach new customers<br />6/24/2009<br />www.PotatoPro.com<br />
  9. 9. Key Trends: Product Diversification<br />More variations <br />Indulgence<br />Regional Flavors<br />Targeting consumer groups<br />Healthier versions<br />Convenience<br />6/24/2009<br />www.PotatoPro.com<br />
  10. 10. Key Trends<br /><ul><li>Product Diversification</li></ul>6/24/2009<br />www.PotatoPro.com<br />
  11. 11. Key Trends<br /><ul><li>Product Diversification
  12. 12. Health and Nutrition</li></ul>6/24/2009<br />www.PotatoPro.com<br />
  13. 13. Health and Nutrition: Healthier Oils<br />French Fries: <br />All major fast food chains switched to trans fat free frying oils<br />Potato Chips<br />Trans fats are the exception, not the rule<br />6/24/2009<br />www.PotatoPro.com<br />
  14. 14. Health and Nutrition: Healthier Oils<br />French Fries: <br />All major fast food chains switched to trans fat free frying oils<br />Potato Chips<br />Beyond Trans fat free: high oleic sunflower<br />6/24/2009<br />www.PotatoPro.com<br />
  15. 15. Health: Less Fat and Calories<br />French Fries: <br />Smaller portions<br />Focus on preparation other than frying.<br />Fried, but lower in fat<br />Potato Chips<br />Smaller packages<br />Baked<br />Reduced in fat/Light<br />New Frying Technology<br />6/24/2009<br />www.PotatoPro.com<br />
  16. 16. Health: Less Fat and Calories<br />French Fries: <br />Smaller portions<br />Focus on preparation other than frying.<br />Fried, but lower in fat<br />Potato Chips<br />Smaller packages<br />Baked<br />Reduced in fat/Light<br />New Frying Technology<br />6/24/2009<br />www.PotatoPro.com<br />
  17. 17. New Frying Process<br />6/24/2009<br />www.PotatoPro.com<br />Kettle Fryer<br />Continuous Potato Chips Fryer <br />Continuous Kettle Fryer<br />???<br />
  18. 18. Health and Nutrition: Sodium<br />6/24/2009<br />www.PotatoPro.com<br />French Fries: <br />Add less<br />Offer sachets<br />Potato Chips<br />Potato Dehy<br />CSPI: &quot;Heart Attack Entrées with Side Orders of Stroke&quot; <br />
  19. 19. Health and Nutrition: Sodium<br />French Fries: <br />Add less<br />Offer sachets<br />Potato Chips<br />Low Salt versions (e.g. Frito-Lay “Pinch of salt”) vs reformulated with less salt<br />6/24/2009<br />www.PotatoPro.com<br />
  20. 20. Health and Nutrition: Acrylamide<br />French Fries: <br />Lighter Fries<br />GM Potatoes<br />Potato Chips<br />Changes in frying process<br />Extruded Snacks<br />Less potato ingredients<br />Enzymes<br />6/24/2009<br />www.PotatoPro.com<br />
  21. 21. Health and Nutrition: Acrylamide<br />French Fries: <br />Lighter Fries<br />GM Potatoes<br />Potato Chips<br />Changes in frying process<br />Extruded Snacks<br />Less potato ingredients<br />Enzymes<br />6/24/2009<br />www.PotatoPro.com<br />
  22. 22. Health and Nutrition: Acrylamide<br />French Fries: <br />Lighter Fries<br />Simplot GM potatoes<br />Potato Chips<br />Changes in frying process<br />Extruded Snacks<br />Less potato ingredients<br />Enzymes<br />6/24/2009<br />www.PotatoPro.com<br />
  23. 23. Comparison of Health Issues<br />6/24/2009<br />www.PotatoPro.com<br />
  24. 24. Health: Functional Foods <br />Foods with added ingredient(s) with specific<br /> “functional property” <br />Examples:<br /> “good for your heart”<br /> “good for your bones”<br />6/24/2009<br />www.PotatoPro.com<br />Retail shelf Argentina<br />
  25. 25. Health: Functional Foods <br />Foods with added ingredient(s) with specific<br /> “functional property” <br />Examples:<br /> “good for your heart”<br /> “good for your bones”<br />6/24/2009<br />www.PotatoPro.com<br />
  26. 26. Increased consumer awareness of the nutritional value of the potato<br />The top nutritional characteristics<br />Efforts of several national potato organisations<br />The international year of the potato: food security, drought resistance <br />6/24/2009<br />www.PotatoPro.com<br />
  27. 27. Increased consumer awareness of the nutritional value of the potato<br />The top nutritional characteristics<br />Efforts of several national potato organisations<br />The international year of the potato: food security, drought resistance <br />6/24/2009<br />www.PotatoPro.com<br />
  28. 28. Increased consumer awareness of the nutritional value of the potato<br />The top nutritional characteristics<br />Efforts of several national potato organisations<br />The international year of the potato: food security, drought resistance<br />6/24/2009<br />www.PotatoPro.com<br />
  29. 29. Key Trends<br /><ul><li>Product Diversification
  30. 30. Health and Nutrition</li></ul>6/24/2009<br />www.PotatoPro.com<br />
  31. 31. Key Trends<br /><ul><li>Product Diversification
  32. 32. Health and Nutrition
  33. 33. Energy and Environment</li></ul>6/24/2009<br />www.PotatoPro.com<br />
  34. 34. Energy and Environment<br /><ul><li>Energy saving in processing
  35. 35. Alternative energy sources:
  36. 36. McCain wind energy, Frito-Lay Casa Grande
  37. 37. Biofuels, methane from waste
  38. 38. Kettle Foods</li></ul>6/24/2009<br />www.PotatoPro.com<br /><ul><li>Heat recovery systems
  39. 39. Improvements heating cooling systems
  40. 40. Lighting upgrades
  41. 41. Updates to compressed air systems
  42. 42. Use of variable speed drives</li></li></ul><li>Energy and Environment<br /><ul><li>Energy saving in processing
  43. 43. Alternative energy sources:
  44. 44. McCain wind energy, Frito-Lay Casa Grande
  45. 45. Biofuels, methane from waste
  46. 46. Kettle Foods</li></ul>6/24/2009<br />www.PotatoPro.com<br />
  47. 47. Energy and Environment<br /><ul><li>Energy saving in processing
  48. 48. Alternative energy sources:
  49. 49. McCain wind energy, Frito-Lay Casa Grande
  50. 50. Biofuels, methane from waste
  51. 51. Kettle Foods</li></ul>6/24/2009<br />www.PotatoPro.com<br />
  52. 52. Energy and Environment<br /><ul><li>Energy saving in processing
  53. 53. Alternative energy sources:
  54. 54. McCain wind energy, Frito-Lay Casa Grande
  55. 55. Biofuels, methane from waste
  56. 56. Kettle Foods</li></ul>6/24/2009<br />www.PotatoPro.com<br />
  57. 57. Energy and Environment: Supply Chain<br />Supply chain integration<br /><ul><li>Reduce carbon footprint
  58. 58. “Controlled” potato cultivation
  59. 59. Reduction in use of pesticides
  60. 60. Organic
  61. 61. New varieties </li></ul> (resistance)<br />6/24/2009<br />www.PotatoPro.com<br />
  62. 62. Energy and Environment: Local<br /><ul><li>Frito-Lay launches Chip Tracker
  63. 63. Many companies stress the use of local potatoes</li></ul>6/24/2009<br />www.PotatoPro.com<br />
  64. 64. Key Trends<br /><ul><li>Product Diversification
  65. 65. Health and Nutrition
  66. 66. Energy and Environment</li></ul>6/24/2009<br />www.PotatoPro.com<br />
  67. 67. Key Trends<br /><ul><li>Product Diversification
  68. 68. Health and Nutrition
  69. 69. Energy and Environment
  70. 70. Globalization</li></ul>6/24/2009<br />www.PotatoPro.com<br />
  71. 71. Globalization; global development<br /><ul><li>Growing importance of India and China, South America
  72. 72. Impact of new countries on potato supply and demand
  73. 73. Development of potato processing capabilities</li></ul>6/24/2009<br />www.PotatoPro.com<br />
  74. 74. Key Trends<br /><ul><li>Product Diversification
  75. 75. Health and Nutrition
  76. 76. Energy and Environment
  77. 77. Globalization</li></ul>6/24/2009<br />www.PotatoPro.com<br />
  78. 78. Key Trends<br /><ul><li>Product Diversification
  79. 79. Health and Nutrition
  80. 80. Energy and Environment
  81. 81. Globalization
  82. 82. Economic Crisis</li></ul>6/24/2009<br />www.PotatoPro.com<br />
  83. 83. Global Economic Crisis<br />You have to eat!<br />Consumers are trading down:<br />Less visits to high end restaurants<br />Eat at home instead of out<br />More private label<br />6/24/2009<br />www.PotatoPro.com<br />
  84. 84. Global Economic Crisis<br />Translates into:<br />Retail Frozen food sales is up<br />Pressure on high end potato specialties<br />Regional shifts<br />Slightly reduced snack volume<br />6/24/2009<br />www.PotatoPro.com<br />The Netherlands:<br /><ul><li>Retail frozen potato sales up 2.4%
  85. 85. Q1 sales of cafeterias up 1.5% (due to higher prices)
  86. 86. Q1 2009 Bars and Restaurant Sales down 6.1%</li></li></ul><li>Global Economic Crisis: data<br />The Netherlands:<br /><ul><li>Retail frozen potato sales up 2.4%
  87. 87. Q1 sales of cafeterias up 1.5% (due to higher prices)
  88. 88. Q1 2009 Bars and Restaurant Sales down 6.1%</li></ul>6/24/2009<br />www.PotatoPro.com<br />
  89. 89. Global Economic Crisis: data<br />The United States:<br />Consumers reporting less restaurant visits:<br />Sept 2008: 33%<br />Feb 2009: 48%<br />US private label:<br />1999: 18%<br />2009: 24%<br />6/24/2009<br />www.PotatoPro.com<br />
  90. 90. Conclusions<br />Potato is a versatile raw material<br />Health and Nutrition:<br />Potatoes are healthy and nutritious and a lot of effort is put in educating the consumer; <br />Potato products got much healthier in recent years and progress is ongoing;<br />Healthier options are available: now it is up to the consumer!<br />6/24/2009<br />www.PotatoPro.com<br />
  91. 91. Conclusions<br />A trend towards Sustainability is initiated, but there are still a lot of opportunities<br />Global shift in consumption of potato and potato products<br />Drive towards product innovation offers great opportunities<br />6/24/2009<br />www.PotatoPro.com<br />
  92. 92. Thank you for your attention!<br />Developments are ongoing!<br />Follow them at www.potatopro.com<br />For the latest News<br />Company overviews<br />Potato related <br />Books<br />Market research<br />Tools for quality control<br />Equipment<br />6/24/2009<br />www.PotatoPro.com<br />

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