FoodNews Market Report 23-01

January 2023 Issue

"Obstacles can't stop me; determination will bring down any obstacle."

Leonardo da Vinci (1452 - 1519)

Welcome to the new year, dear PMM fans! I continue to see many a hurdle, but also many opportunities for 2023.

Of course, we at PMM are not all-round geniuses like da Vinci above. But we all try very hard. We are a great Teamwhose average age, by the way, is under 40, brings new momentum to the company and creates a good atmosphere. Like our new "employee", for example PAOLO ROSSIwho only tastes the very best Italian tomatoes. That's exactly what we'll be packing crisp and fresh in the can in 2023 and passing them on to you! By the way, our popular tuna brand AVANTI is also getting a new look. The DONNA ROSA brand is also currently undergoing a complete makeover. Last but not least, the brand makers at PMM are currently working on PAUL'S - it will be interesting to see what else is in store for us over the course of the year ...

And the freshly designed website for "ADRIA" is better and better received by the visitors. Above that, we are getting personnel reinforcements for sales and logistics. Because we are investing in the market, in the future, in confidence, even though we are all aware of the dramatic situation in the world, Just like our interview partner Ferdinand Zinner. Read the interesting interview we conducted with the Munich restaurateur for this year's first market report. With this in mind

Yours, Thomas Schneidawind.

Mandarin oranges:

Standstill

"Since mid-December, in China The factories for processing mandarins are at a standstill," China insiders told PMM. There is an extreme shortage of employees. The reason for this is the huge wave of corona that has been rolling across the country since all rules were lifted. Only one factory is still running until the end of January, but the quality of the raw material is no longer as good. In addition, Chinese New Year is just around the corner (on January 22). Until the end of the festivities on February 3, traditionally hardly anything works for the processors and in the ports. It remains highly questionable how things will continue in view of the volatile coronavirus situation in this huge country. Demand is already picking up again, we are told. Our conversation partners are worried about where the goods will come from if China is unable to deliver. There are no more quantities available in southern Europe, in the Turkey neither, and the new crop in Peru is just around the corner. However, most of the goods from there are shipped mainly to the US market.

Olives / Artichokes:

LUXURY 1

Water shortage affected in Spain strongly the growth of artichokes in the open air. Now comes the cold, which makes the artichokes turn black at the top. Accordingly, so far the harvest has been meager in the season that began in early January. Most artichokes currently go to the fresh market, where higher prices are paid for the scarce raw material. Correspondingly, little product is being processed by the industry. Farmers and processors are now hoping for an improvement in the weather and additional rain. There should also be no more night frosts now, as the season normally runs until March. In any case, the rising costs in the energy sector and for canning material should ensure higher prices.

Does North Africa offer an alternative?

In Tunisia it was also too dry during the growing season of artichokes, although there are some farmers who manage their irrigation through wells and rivers. However, these volumes will hardly be sufficient to meet market demand. Canned prices and energy costs are also price drivers there. According to our information, the situation in Egypt similar. What is clear is that The popular Mediterranean products artichokes and olives remain expensive. The olive market is also characterized by high prices. There is too little raw material and production costs are too high. From Greece about - insparticular from the Peloponnese with the main variety Kalamata - a significantly lower yield was reported for this season. The scarce availability of table olives also means that the yield of olive oil is already falling massively, in Spain alone in December by almost 50 %. The market is already announcing significant price increases for this basic ingredient in the kitchen.

However, Paul M. Müller is sufficiently stocked, whoever needs goods can be supplied from our side with Olives and Artichokes in the best ADRIA quality.

Tomatoes:

POKER

The poker game between farmers and the industry regarding the 2023 summer harvest has begun. "Both Italian tomato farmers and those in Spain and Portugal have high expectations of their raw material prices," we are currently hearing from negotiators. It is not yet clear how this will turn out, but it can already be expected that the goods and therefore the end product will be more expensive compared to the previous year. This does not even take into account sensitive cost factors such as energy, packaging, etc.

Farmers have great price expectations for 2023 as they mentally play with other crops. The run on tomato products remains strong, with a recovery mood in the market after the procurement stress of the past two seasons. There are some leftover stocks (pulp, passata) in the market. But here, too, China is proving to be a highly uncertain supplier. Tomato paste, for example, remains a scarce commodity on the world market, with hardly any supplies coming from the Far East. This is partly due to the same circumstances as described for mandarin oranges (above).

Capers:

Luxury 2

Capers are also a favorite. Why? Because this Mediterranean specialty is simply delicious and very versatile. That's why at Paul M. Müller we maintain a large ADRIA fine food range of capers in jars: we offer them in the following sizes: 720 ml- (caliber: hors caliberes, fines, capotes, surfines and nonpareilles as well as caper berries), 1000 ml (caliber fines) and 2650 ml (caper fruits).

To ensure that professional kitchens can continue to be supplied with these great ADRIA products in the future, our experts keep an eye on the supply situation on the market. Current trend: The harvest focus is shifting from Morocco and Kyrgyzstan to Syria. In terms of quantity, the harvest share of smaller caper buds is currently growing, which should provide a little price relief for this size of caper. The proportion of larger caper fruits (or berries) is smaller.

PMM definitely has everything in stock, just ask our experts! Particularly noteworthy are the practical ADRIA twist-off lids, the internally printed glass labels and the attractive and sturdy cartons to adequately protect the contents from breakage.

And if you want to know even more about the origin, fruits and caliber of capers, you can find everything you need to know in our glossary. Recipes for two delicious caper dishes are available at we-love-adria.com.

"Uniqueness and quality - every day".

- Ferdinand Zinner

Sebastian and Ferdinand Zinner (the "Zinners") have been shaking up the Bavarian restaurant scene for years. Down-to-earth and regional in the pub of the same name in the south of Munich, trendy with the new Happy Bros burger concept and always highly professional with fresh ideas for catering. PMM spoke to Ferdinand Zinner about current challenges and opportunities this year.

PMM

Mr. Zinner, you are a gastronomy professional and industry expert. What do you see as the biggest challenges this year? What solutions could there be?

Ferdinand Zinner

When I talk to colleagues from my generation of restaurateurs, I realize that we all struggle with the same problems and challenges, which are both time-consuming and bureaucratic. Many of them are home-made and could be avoided if we cut through the red tape a little. This involves issues such as customs, employees, hygiene, allergen labeling, etc. ... You almost have one foot in jail if you serve even a hint of nuts to your guest.

I have the feeling that simple craftsmen and small businesses are being equated too much with the big players. There is a lack of proportionality.

What is your strategy against this, what is important?

For us as a small business, it is particularly important to stay on the ball and constantly reinvent ourselves, even in additional areas. It's no longer enough to say that if the food tastes good, then everything is fine. As a restaurant, you definitely have to offer more: E.g. take care of social media, sensible furnishings, a good lighting concept and much more... It's no longer as simple as it used to be, even if the quality is still right. Corona has shown us that you have to go further and change. Above all, you have to set yourself apart through uniqueness and quality - every day.

Which way are the Zinners going? Is the take-away business still strong?

Cooking boxes still did well at Christmas, although not quite as well as in the Corona years before. But that will continue, I think. People will continue to want takeaway food. Online cooking classes are also doing well. We've gained a lot of experience there and have been able to improve. Nevertheless, of course consumers now love face-to-face events again. But that will continue, I think. People will continue to want takeaway food. Online cooking courses are also going down well. We've gained a lot of experience there and have been able to improve. Nevertheless, of course consumers now love face-to-face events again.

We had a super good take-away business, but currently we are focusing more on in-house events again. There were an insane number of corporate Christmas parties. Obviously, companies were still making money, and now wanted to catch up on a lot of things. We've never had an August as strong as 2022, because everyone wanted to catch up on their birthday parties. What has changed, however, is the nature of the requests, whether private or corporate. Everything is on much shorter notice. I'm not thinking of twelve people wanting to go out to dinner, but events with 300 to 400 people.

Is this associated with a new way of working? Will that continue this year?

We as service providers and everyone who works for us have now adjusted to a new pace. At peak times, we will try to keep up with everything because we can't predict what will happen next. In any case, we will continue to perform and respond to requests, even if they are more extensive and at shorter notice.

So the topic of convenience is likely to become more important than ever? So the handling and speed of the employees, in the kitchen, in procurement ...

I'm a huge fan of it. Fifteen years ago, convenience was still associated with flavor enhancers or the origin was undetectable. A lot of people still think of instant soups, but that's definitely over today. For example, we have two great service providers to whom we have given our own recipes that are cooked exclusively for us. They work with different shift patterns for the employees, operate with larger sales volumes and can implement our wishes perfectly. We order ready-made dishes from them, which we have coordinated in detail beforehand.

After all, a pre-cut bell pepper is also a convenience product, and I'm very glad that there are now more and more suppliers offering good products in this sector. We make use of them often and with pleasure. By the way, I have no problem communicating this when someone specifically asks me about it.

Which target groups do you specialize in? The Zinners have always been strong in the areas of school catering, canteens, kindergartens ...

We've changed things up a bit and are currently mainly accepting orders in the catering sector with a minimum food turnover of 1500 euros. This makes sense for us, as we increasingly have customers in this size range. Unfortunately, the school sector is becoming more and more unattractive at the moment. There is absolutely no willingness to pay more money there - neither in the school kiosk nor in the canteen area. With 5 euros for a meal, we are really at the limit here, yet the demands are becoming ever greater. There are loud calls for organic and regional products, but that is not possible with this low budget - and even more so with the personnel costs involved.

In numerous conversations with parent or student representatives, this is precisely the issue: the supply at the school kiosk and the view that the offer is too expensive. In relation, however, we are still 50 to 60% below what is charged at a normal bakery. There we pay 11 euros or more for a breakfast with a sandwich, juice and coffee. At the school kiosk, however, a child is allowed to spend a maximum of 1.30 to 1.80 euros, but is supposed to be fully provided for. The calculation doesn't add up.

How does this fit into the current discussion of the German Federal Minister for Food and Agriculture, Cem Özdemir, who is calling for healthier catering in schools?

For the first time, we have recently received an invitation to tender in which the city of Munich stipulates that from 2025 only organic products will be used in catering at schools and kindergartens. In principle, I think this is a great approach, but I believe that the only way to achieve this is to follow the path that Mr. Özdemir has already described - namely, to restrict the choice of products. We will have to say goodbye to the two menus - veggie and meat - and limit ourselves. So there will really only be meat and fish once a week. That will be enough. In any case, we would take part.

Thank you for the informative conversation.

Reusable wins with the young!

... knows Daniela Ziegler from the Bavarian Hotel and Restaurant Association DEHOGA Bavaria. In an exclusive interview with PMM, the managing director of the catering division reports on her first impressions after the introduction of the new mandatory reusable offer on January 1, 2023.

"If the service explains it well to the guest, more people accept it gratefully and consciously. I keep hearing that senior citizens would rather keep the disposable bowl or aluminum foil. Young people are more environmentally conscious - and I've received feedback that the offer of reusable food ensures that they even choose a particular restaurant," explains Ziegler.

Ready for Take-off!

...says Dr. Helena Melnikov, Managing Director of the German Association for Materials Management, Purchasing and Logistics (BME) to the Supply Chain Sourcing Obligations Act (LkSG), which has been in force since January 1, 2023. This applies to companies with more than 3000 employees. One year later, this group will be expanded to include companies with more than 1,000 employees. This makes compliance with standards for social framework conditions and environmental aspects mandatory along global value chains.

"Small and medium-sized companies will also be affected sooner than many expect, because as suppliers to large contractual partners, they are also part of a supply chain," emphasizes the former Managing Director of the Waren-Verein der Hamburger Börse. It is therefore high time for the economy to act and tackle the issue proactively.

New trade fair calendar with up-to-date reporting

Really gone?

Martina Schulke, our highly valued employee and specialist for the tuna and anchovy product category, is retiring at the end of February - well-deserved, of course, after 48 working years, of which almost 11 years until now in Paul M. Müller services. The entire PMM Team is "grateful for her expertise, good humor and support at all times". But we are sure that Martina, a true Berliner who has also enjoyed the air in Bavaria since 1992 and is staying here, will not soon forget her PMM family. By the way: Martina's successor - and one who has been well trained by her - is Eve-Florence Gölz. We will be talking to her in more detail soon.

Hello Hamburg!

... said our employees Sarah Weitzbrich, Eve-Florence Gölz, Martina Schulke and Samuel Märten recently and were very impressed when they paid a visit to PMM's warehouse keeper Unisped on the Waterkant. "There's still a lot of manual work involved when the containers are unloaded," said Sarah. Of course, a round of forklift driving was also part of the program. Paul M. Müller shows his offspring the incoming goods department live - so that the young employees always have the right overview.

Although we rate the sources we use as being reliable, we cannot accept any liability
for the information provided here being complete or correct.

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