International Pasta Organization - International Pasta Organisation

International Pasta Organization
Canada’s Durum and Pasta Industry
Annual Meeting
Lisbon, Portugal
June 7, 2013
Earl Geddes
CEO Cigi
Canadian Pasta Industry
 
 
 
 
Current Pasta trends
Current industry
changes
Current challenges
Cigi (Canadian
International
Grains Institute)
Current Pasta Trends
 
Companies
 
Consumption
 
New durum
varieties
Canadian Industry
Company
2010
2011
2012
Ebro Foods SA
33.5
33.9
34.6
Italpasta Ltd.
9.5
9.8
10.1
Sun-Brite Canning Ltd.
10.0
9.5
9.2
Maple Leaf Foods Inc.
8.4
8.6
9.0
Heinz Co, HJ
6.4
6.3
6.1
Private Label
19.9
19.2
18.7
Source: Euromonitor International, 2013
* Note: Major companies are sorted based on the market share of more than 0.1%
* Market share is broken down by company and the figures are based on the aggregated
sales of their brands
Pasta consumption growth
Canada’s Pasta Market, Retail Value Sales in US$ Millions
Country
2007
2012
Dried pasta
465.3
647.2
Chilled/Fresh pasta
102.3
140.0
Canned/preserved pasta
71.7
84.4
Canada’s Pasta and Couscous Market, Retail Volume Sales Thousand Tonnes
Country
2007
2012
133.3
159.8
Chilled/Fresh pasta
9.4
10.4
Canned/preserved pasta
23.8
25.4
Dried pasta
Source for both: Euromonitor International, 2013 *CAGR: compound annual growth rate
Canada’s Imports of Pasta and
Couscous
by Top 5 Countries, in US$
Country
2007
2012
2007-1
Thousands
Canada’s Exports of Pasta and
Couscous
by Top 4 Countries, in US$
Country
2007
2012
2007-1
Thousands
2
CAGR
2
CAGR
Pasta total
270,909.9
401,955.0
8.2%
Couscous
total
2,775.4
4,339.9
9.4%
(Pasta total)
188,627.4
271,378.4
7.5%
(Couscous
total)
Italy
36,568.2
43,316.8
3.4%
United States
China
19,410.7
35,561.3
12.9%
8,524.5
14,311.3
10.9%
United States
Thailand
Israel
136,169.
9
171,753.2
4.8%
3,840.8
6,749.2
11.9%
137,966.
0
176,797.3
5.1%
100.4
335.0
27.2%
Philippines
250.4
261.3
0.9%
Source
for
both:
Global
Trade
Atlas,
Statistic
Canada,
*CAGR:
compound
annual
growth
rate
South Korea
7,177.3
11,792.9 10.4%
United
186.1
228.5
4.2%
Kingdom
Current Industry Changes
 
Open market for
durum
 
New Processing?
 
Multiple suppliers
 
New Products
New Products/Processors
New Products
Industry Challenge
Healthy Grains Institute (HGI)
 
Low Gluten Diet
 
HGI Members
 
HGI Objectives
Canada’s Food Guide
-  Health Canada recommends six to
eight servings of grain based foods
daily
-  50% of grains based foods should be
whole grain
-  10% of Canadians are eating enough
grains
- Whole grains are nutrient-dense
foods and a good source of iron,
fiber, protein, B vitamins and
minerals
-  Fiber can help curb appetite and
achieve sustainable weight loss
-  Grain based foods lower risk of
diabetes, cardiovascular disease and
colon cancer.
Healthy Grains Institute (HGI)
– Canadian Pasta Manufacturers
Association
– Canadian National Millers Association
– Canada Bread, Weston Bakeries,
Bakery Association of Canada
– Grain Growers of Canada
HGI Objectives
–  Communicate scientific and medical studies on the
importance of wheat and whole grains to human
health
–  Encourage influencers to provide legitimate
information and tackle myths being advanced in fad
diets and books
–  Establish readily available and understandable
information through the Healthy Grains Institute
–  Proactively respond to media stories and social
media that reinforce misconceptions about wheat
gluten.
Cigi Pasta Process
 
Pasta Technology
 
Research
Cigi Pasta Technology
 
Mill
 
Extrudes
 
Dryer
 
Pulse Facility
Cigi’s Pasta Technology
Three Levels
of Extrusion
Pasta Processing Dryer
Multiple drying
cycles to match
Commercial reality
Pulse Processing
•  Pulse Milling
and Flour
Utilization
Project
•  New
products with
expanded
use of pulse
flour
Quality Testing in the
Analytical
Laboratory
Cigi Durum Research
New Durum Variety Evaluation
The End
•  No credible Canadian authoritative voice to
counter unsupported/damaging health claims
and provide truth about wheat grains.
– In 2011, Americans spent a record $2.6 billion1 on
gluten-free products:
•  46% thought they were healthier
•  30% bought them to manage their weight
•  Only 8% to 12% had a gluten intolerance
– Gluten-free products are made with refined flours/
starches; are low in fibre, protein, iron, B vitamins
and other nutrients and often higher in sugar, fat and
calories
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Markets–Major Trends
Ebro Foods SA was the largest pasta company in Canada in 2012. The company’s major
brand, Catelli, accounted for 29.6% of brand share. The second-largest company was
Italpasta Ltd. (Major Brand: Italpasta, 10.1% of brand share) and the third was Sun-Brite
Canning Ltd. (Major Brand: Primo, 8.3%).
Health and wellness trends have continued to gain traction in 2012, with more grocery
retailers carrying gluten-free and whole wheat pastas at premium prices.
Chilled/fresh pasta brands, such as Olivier, saw strong sales growth. Chilled/fresh pasta
are also marketed as premium products.
Canada - Pasta and Couscous Market Share by Major Companies and Private Labels
- % Breakdown Company 2010
2011
2012
Ebro Foods SA 33.5
33.9
34.6
Italpasta Ltd.
9.5
9.8
10.1
Sun-Brite Canning Ltd.
10.0
9.5
9.2
Maple Leaf Foods Inc.
8.4
8.6
9.0
Heinz Co, HJ
6.4
6.3
6.1
Barilla Holding SpA
2.5
2.4
2.4
Eden Foods Inc. 0.3
0.3
0.3
Les Aliments O'Sole Mio Inc.
0.1
0.1
0.1
Private Label
19.9
19.2
18.7