AGP Executive Report

Agri-food Investment: The European Investment Bank is providing Moldova €150 million to modernize farms, food processing, storage and logistics, aiming to help producers reach EU markets. Corporate Moves: Nestlé reported 4% organic sales growth in the third quarter, with North American volumes returning to growth as its turnaround takes shape. PepsiCo extended its Taco Bell partnership through 2036, even as KFC switches its U.S. drinks deal to Coca-Cola. Nutrition Policy: The U.S. plan to define “ultraprocessed” foods has reportedly stalled amid industry and scientific pushback, leaving manufacturers and retailers without a clear standard. Meanwhile, protein-rich products are booming, but shoppers are growing more wary of claims on food labels. Packaging Demand: Crown Holdings raised its 2026 earnings outlook, citing strong demand for beverage cans.

Supply Chains: A BSI-CIPS report says 97% of food and drink firms found modern-slavery or serious labour-rights risks in their supply chains; just 36% could show the impact of whistleblowing systems. In Malaysia, about 58,000 independent oil-palm growers risk losing EU market access without land titles to meet deforestation rules. Manufacturing: Nestlé plans to close its Solon, Ohio, pouch plant by the end of 2027 and move production to South Carolina, citing changing demand and a shift to larger facilities. Beverage Deals: PepsiCo extended its Taco Bell partnership through 2036, while KFC is switching its U.S. drinks deal to Coca-Cola. Market Signals: Ardagh Metal Packaging raised its 2026 earnings outlook as European can shipments grew 6%; Turkey forecasts a sharp rebound in 2026 cereal and fruit output.

Seafood Trends: Shoppers are trading down on fresh seafood: tilapia sales rose 5% and volume 8% as prices fell, while purchases of several premium species declined. Beverage Partnerships: Taco Bell extended its PepsiCo deal through 2036, with plans for new drinks and flavors, even as KFC switches to Coca-Cola. Convenience Drinks: Retailers are urged to test more ambitious beverage launches, with experts pointing to demand for cold, flavored and functional options. Brewing Pressures: Boston Beer’s third-quarter revenue fell 3.2% and shipments slipped 4.9%, though gross margin improved. Factory Shift: Nestlé plans to close its Solon, Ohio, factory by the end of 2027 and move production to South Carolina, eliminating about 370 manufacturing jobs. Food Safety: Share-ify launched an AI tool to help food companies assess supplier and compliance risks.

Beverage Growth: Vita Coco raised its full-year 2026 guidance after third-quarter sales climbed 34% to $244 million, with coconut water sales up 15%. Nestlé reported 4% organic growth in Q3, increasingly driven by volume, while Kerry recorded 4.1% volume growth and maintained its earnings outlook. Production & Investment: Malaysia’s Orgabio says its two new beverage-premix lines are running at about 70% utilisation. UK tofu maker The Tofoo Co. has begun building a Malton factory designed to double capacity and support expansion. Drinks Supply: Amber Beverage Group UK, a supplier of 60 brands to major supermarkets, has entered administration after reporting losses of more than £21.1 million. Food Heritage: Quezon province is pursuing geographical-indication status for lambanog, aiming to protect the Filipino coconut liquor’s identity and open new opportunities for local producers. Cost Pressures: A Canadian food sentiment survey found 76% of respondents say food costs have risen most over the past year, while rising transport bills are also squeezing grocery budgets.

Food Safety: Ghana’s FDA shut a second Arcan Bitters factory after the producer allegedly resumed making the drink despite an earlier closure; tests found undeclared sildenafil in the 35%-alcohol beverage. Trade Costs: U.S. importer Gellert Global is challenging 50% tariffs on Canadian goods, arguing they are unlawful. The company imports Canadian cheeses, and restaurant operators have cited tariffs as a source of higher food and beverage costs. Restaurant Outlook: Fast-food traffic remains under pressure as earnings season begins, with Wendy’s betting a $7.99 meal deal can draw customers back. Chains are also turning to micro-influencers to promote launches, while reservation platforms grapple with AI agents competing for bookings. Beverage Deals: KFC will replace Pepsi with Coca-Cola at 3,700 U.S. restaurants in 2027, ending a nearly 40-year partnership. Packaging: Silgan and American Industrial Partners agreed to acquire Trivium Packaging in a deal valued at about $3.4 billion. Waste Reduction: Danone is partnering on a $40 million facility to convert yogurt waste into renewable energy, while event caterers are using attendance forecasts and staged food preparation to cut surplus.

Beverage Deals: Reborn Coffee has signed a supply agreement with Visvita targeting $30 million in first-year sales, with an initial $2 million order in hand. KFC will switch from Pepsi to Coca-Cola at its 3,700 U.S. restaurants starting in 2027. New Products: Coopers Brewery is entering the ginger beer market with a traditional-style brew on tap ahead of summer, while BrewDog and West Ham have unveiled a fan-designed matchday lager. Consumer Trends: Matcha is moving beyond lattes into savoury dishes, but experts caution that its vivid colour and “healthy” image don’t automatically make a dish nutritious. Farm Economics: Welsh dairy farmers say rising feed, fuel and fertiliser costs are squeezing margins, with some producing milk below cost. Food Security: Montreal now accounts for 45% of Quebecers receiving food assistance, with monthly requests up 14% and some organizations turning people away. Food Safety: New testing approaches are gaining attention as climate change and other evolving risks challenge food producers.

Beverage Shake-Up: KFC is replacing Pepsi with Coca-Cola in the U.S., ending a partnership of nearly four decades. The switch comes as PepsiCo halts production at its Knoxville bottling plant, with 122 workers to be paid through January. Trade & Agriculture: Canadian food importer Gellert Global is challenging U.S. tariffs on Canadian goods, saying the duties have added costs and disrupted supplier relationships; the company says it paid more than $520,000 in duties in less than a month. Canada also used the G7 agriculture meeting in Paris to pursue stronger trade and investment ties with the EU and Germany. Industry Outlook: PepsiCo expects India’s festive snack sales to match last year, supported by new launches, while beverage retailers say consumers increasingly discover drinks through brand partnerships, culture and experiences. Food Manufacturing: Nestlé plans to close an Ohio factory by the end of 2027, adding to a week of attention on changing production footprints and supply chains.

Beverage Launches: Bragg is taking apple cider vinegar mainstream with Tropical Zing, a four-flavor sparkling drink containing real fruit juice and no added sugar. Digital Commerce: Danone is aligning teams and AI tools to make its brands easier for machines to recommend and shoppers to find. Dairy Competition: Protein-rich dairy is gaining ground, but whey shortages and plant-based rivals are intensifying the fight for shelf space. Foodservice: Japan plans to resume foreign-worker admissions for cooks serving schools and care facilities, citing severe staffing gaps. Supply Chain: More than half of surveyed European industrial leaders expect water availability or quality to constrain growth within five years, adding pressure on food and beverage operations. Packaging: Silgan agreed to buy Trivium Packaging in a deal valued at about $3.4 billion, pending approvals and targeted to close in 2027. Beverage Partnerships: KFC will switch its U.S. restaurants from Pepsi to Coca-Cola, ending a nearly 40-year partnership. Environmental Accountability: Diageo apologized for a chemical spill that killed wildlife in a Scottish stream; recovery could take years.

Beverage Partnerships: KFC will switch its U.S. restaurants from Pepsi to Coca-Cola in January 2027, ending a nearly 40-year partnership as it expands its drinks lineup. Export Opportunity: New Zealand wine exporters gain improved access to India under a new trade agreement, with tariffs set to fall over the next decade. Restaurant Demand: South Australian venues are reporting more bookings after the state’s first Michelin Guide selection, including a surge in advance reservations. Packaging: Silgan plans to acquire Trivium Packaging for $3.4 billion, in a deal set to create a packaging group valued at about $7.3 billion. Food Regulation: India’s food-safety authority has issued fresh notices over nutrition claims and labelling, while Indonesia has extended the deadline for mandatory halal certification of food and beverage products to 2028. Dairy Supply: Clover Sonoma is investing $30 million in Petaluma as its milk supply contracts.

Leadership: Lindt has ousted CEO Adalbert Lechner after a sales slowdown, with former chief Dieter Weisskopf returning temporarily as the company searches for a successor. Agriculture: Pennsylvania has unveiled a 10-year plan focused on farm profitability, investment and modernization, as the state’s agriculture sector supports 600,000 jobs. Product Development: Samyang Foods is setting up a U.S. innovation lab to develop and test products for local consumers, expanding beyond sales of Korean-made brands. Market Expansion: Origin Agritech has named a distributor for its corn seeds in China’s Shandong province, receiving an initial RMB 2.9 million payment. Food Safety: India’s FSSAI is pursuing manufacturers over product claims and labelling, including Nestlé, HUL and Priyagold’s maker. Food Aid: Funding shortages are forcing the U.N. World Food Programme to cut monthly food assistance in Gaza for 500,000 people and halve rations.

Restaurant Partnerships: KFC is replacing Pepsi with Coca-Cola at U.S. restaurants, ending a nearly 40-year partnership and putting PepsiCo’s restaurant business under scrutiny. Grocery Policy: UK ministers are planning tighter rules that could ban promotions on more products, with critics warning some family staples could cost up to 65% more. Food Regulation: India’s FSSAI has flagged misleading claims on products from Nestlé, Hindustan Unilever and others, while initiating prosecution against Priyagold’s maker and Dodla Dairy. Consumer Safety: Nigeria’s NAFDAC says it seized or destroyed more than ₦5.3 billion in counterfeit and substandard goods in a week, including suspected fake alcoholic drinks and packaging. Packaging Innovation: Swedish firm Yangi is bringing its waterless molded-fiber technology to the U.S., targeting food trays with claimed cuts of 80% in carbon footprint and more than 50% in electricity use. Price Pressures: New Zealand’s Foodstuffs reports annual food inflation of 1.6% in September, below the national rate, but warns a weaker dollar and higher fuel costs are raising supply-chain expenses.

Beverage Shake-Up: KFC is switching from Pepsi to Coca-Cola across its 3,600 U.S. restaurants, with the rollout expected by spring 2027. In Nigeria, Seven-Up Bottling faced consumer confusion after introducing yellow caps without advance notice. Food Regulation: India’s FSSAI issued notices to Nestlé India and Hindustan Unilever over product claims and labelling, and has proposed banning added sugars in foods for infants up to six months. Convenience Growth: UK food-to-go sales are forecast to reach £24.9 billion in 2026, up 3.4% year over year, as higher spend per visit helps drive convenience retail. Product Research: Cambridge researchers found that about three-quarters of 39 sweeteners affected the growth of at least one gut bacteria species in lab tests; human health effects remain uncertain.

Restaurant Beverage Shake-Up: KFC will replace Pepsi with Coca-Cola at about 3,700 U.S. restaurants from January 2027, ending a nearly 40-year partnership; its African outlets are not part of the deal. Food Safety: Indian authorities named Reliance and Blinkit units in a probe into allegations that expired food re-entered the supply chain. Separately, FSSAI issued notices over misleading product claims and proposed banning added sugar in foods for infants up to six months old. Packaging Confusion: Nigeria’s Seven-Up Bottling Company says new yellow caps on Pepsi, 7UP and other drinks are an official change, after consumers questioned whether the products were genuine. Coffee and Cacao: The University of Hawaiʻi at Mānoa and Clemson will lead a U.S.-funded research program, with $8 million committed for its first year, to help farmers improve production and address disease and drought risks. Export Push: Pakistan held its first rice festival in Budapest to connect basmati suppliers with Hungarian importers, chefs and food businesses.

Infant Nutrition: India’s food regulator proposed barring added sucrose and fructose in products for babies up to six months, citing concerns about early sugar exposure. The draft is open for public comment. Food Safety: India’s FSSAI is also pursuing action against Priyagold biscuit maker Surya Food & Agro, alleging cattle-feed bran was used in biscuits and citing hygiene violations. Beverage Business: KFC will replace Pepsi with Coca-Cola at nearly 3,700 U.S. restaurants from 2027. Analysts estimate Pepsi could lose about $500 million in annual sales; the change does not cover KFC’s international outlets. Industry Growth: Kyrgyzstan’s food, beverage and tobacco production rose 9.4% year over year to 92.7 billion soms in the first nine months of 2026. Global Markets: South Korean food companies are pitching products including banana milk, plant-based desserts and drinks at SIAL Paris as they seek wider European distribution. Consumer Trends: Taiwanese retailers are expanding high-protein meals as demand for health-conscious food grows across age groups.

Water Safety: NJIT researchers detected the little-monitored “forever chemical” TFA in 64 of 70 New Jersey tap-water samples and 34 of 43 bottled drinks, including elevated readings in some sports and electrolyte beverages. Beverage Deal: KFC will replace Pepsi with Coca-Cola at about 3,700 U.S. restaurants from January 2027, ending a nearly 40-year partnership as the chain seeks to revive domestic sales. Packaging Dispute: Pakistan’s government and major food and beverage companies remain at odds over a PET bottle ban; regulators say there is no legal basis for removing recyclable bottles, while businesses warn of major losses and a lack of viable large-scale alternatives. Food Policy: Across India and Southeast Asia, uneven food-label rules are intensifying debate over consumer health and corporate influence as diet-related illness rises. Supply Chain Investment: BC Food & Beverage is advancing plans for a proposed 750,000-square-foot Pacific Gateway Food Terminal near Vancouver, combining distribution, warehousing and processing to help producers reach buyers and grow.

Brand Shake-up: KFC will switch its U.S. restaurants from Pepsi to Coca-Cola in January 2027, ending a decades-long partnership; PepsiCo is expected to retain KFC’s international business. Food Innovation: Canada is investing $50 million in the Canadian Food Innovation Network to support the food sector, including processing. A startup is also turning used coffee grounds into a cocoa substitute, targeting volatile cocoa prices and supply. Product Trends: Protein is spreading into treats, with confectionery now a $2.3 billion-plus global market as bars, cookies, gummies and wafers gain traction. Beyond Meat, meanwhile, has added caffeine to its protein drinks. Policy Watch: Germany has approved a draft tax on sugary drinks, a move that could prompt manufacturers to rethink recipes and product ranges. Changing Demand: GLP-1 users are reshaping dining habits: snacking and beer occasions are declining, while drinks-only outings, wine and cocktails are gaining ground.