A Final Warning from Climate Change Activists

Last Week’s Moves

BLS Cash Index  636.31 (+0.57%)                 BLS Industrials Index 682.52 (-0.53%) 

BLS Foodstuffs Index 574.57 (+2.17%)         BLS Fats and Oils Index 815.56 (+2.57%)   

BLS Livestock Index 679.63 (-1.07%)

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Welcome to your weekly food & beverage report, where we cover everything you’ll need to know for the week ahead. This week, climate change activists send a final warning, the WHO celebrates World Health Day, and global ingredient supplier Tate & Lyle makes strategic moves to keep up with consumer trends. 

Climate change once again is at the top of mind as the UN’s IPCC issues “now or never” warning

A report released last Monday by the UN’s Intergovernmental Panel on Climate Change (IPCC) expects humanity to surpass the critical temperature threshold of 1.5 degrees, though it could return below this level by the end of the century. The 1.5 degree threshold was the initial goal outlined in the 2015 Paris Agreement and is recognized as a tipping point; above a 1.5 degree increase, small changes can lead to dramatic shifts in the Earth’s entire life support system.  

• Warming warning… A lead author on the latest IPCC report described the warning that global emissions must peak by 2025 at the latest as “a bit of a bombshell”, when considering how little time there is to prevent the worst of what the climate crisis has in store.  
• How do we fix it?... Reductions in fossil fuel emissions are of the utmost importance; major transitions in the energy sector, including massive reduction in fossil fuel use, widespread electrification, improved energy efficiency, and the use of alternative fuels such as hydrogen will be where we can make up for lost ground according to the report.

Last week on April 7, World Health Day, the World Health Organization (WHO) advocated for re-imagining and re-prioritizing resource allocation to create a landscape promoting sustainable and healthy societies. WHO called for increased action by leaders and citizens alike to preserve and protect health while combating the climate crisis, saying “Pollution and plastics are found at the bottom of our deepest oceans, the highest mountains, and have made their way into our food chain and blood stream.”

• Food and beverage plays a part… Around the food and beverage industry specifically, the WHO cited “Systems that produce highly processed, unhealthy foods and beverages” as problematic in more ways than one due to their “driving a wave of obesity, increasing cancer and heart disease while generating up to one-third of global greenhouse gas emissions,”
• Clear correlation… WHO Director-General Dr. Tedros Adhanom Ghebreyesus drew parallels, saying “The climate crisis is a health crisis: the same unsustainable choices that are killing our planet are killing people.” 

Global ingredient supplier Tate & Lyle is making headlines for industry acquisitions and selloffs

Sale spinoff… Global ingredient supplier Tate & Lyle’s (TATYY) recent transaction history has paved the way for new company Primient to enter the global food and ingredients market. Primient brings a portfolio of products to the table, as well as application expertise for the food, beverage, paper, packaging, personal care, apparel, and animal nutrition industries. 

• Primary meet Premient… Tate & Lyle sold its controlling stake in its Primary Products business in North America and Latin America to KPS Capital Partners LC which now has a majority stake and controls the resulting company, Primient. Tate & Lyle retains a minority stake in Premient. 

Surprisingly trendy… Tate & Lyle news doesn’t end there, as the company has announced a $237 million purchase of Quantum Hi-Tech (Guangdong (GGDVY)) Biological, a prebiotic dietary fiber business in China, from ChemPartner Pharmatech. Prebiotic fiber is increasingly sought after by food and beverage manufacturers in efforts to boost better-for-you offerings in their portfolios. 

• In-vogue ingredients… The acquisition will help Tate & Lyle in becoming a growth-focused food and beverage solutions company while simultaneously strengthening its position as a player in the rapidly expanding global dietary fiber market. 
   

While you’re here, check out the latest episode of our new podcast The Food Biz, streaming across all podcast platforms. If you have any feedback or input, reach out to us at news@barchart.com. We’d love to hear what you think!

Other stories…

• For the girls… Cracker Jack (PEP) has launched a new line of limited-edition bags featuring Cracker Jill, who celebrates women who break barriers across sports. 
• Flu the coop… Avian flu is forcing farmers to cull millions of egg-laying hens, limiting the US’s egg supply and further driving up prices. 
• Raising the bar… Mars Wrigley has announced plans for its first factory powered by 100% renewable energy. Sweet. 

That’s all we have for you this week, do you have anything for us? We’d love to hear from you with stories or recommendations for new sections to include! Drop us a line at news@barchart.com with any feedback or input.