1 Cereal-based fermented foods and beverages A. Blandinob, M.E. Al-Aseeria, S.S. Pandiellaa, D. Canterob, C.

Webba Summary: Cereal grains constitute a major source of dietary nutrients all over the world. Although cereals are deficient in some basiccomponents (e.g. essential aminoacids), fermentation may be the most simple and economical way of improving their nutritionalvalue, sensory properties, and functional qualities. This review focuses first on some of the indigenous fermented foods and beveragesproduced world-wide that have not received the scientific attention they deserve in the last decades. Products produced fromdifferent cereal substrates (sometimes mixed with other pulses) fermented by lactic acid bacteria, yeast and/or fungi are included.Finally, newly developed cereal-based foods with enhanced health properties will also be reviewed.Since the beginning of human civilisation there hasbeen an intimate companionship between the humanbeing, his fare and the fermentative activities of microorganisms.These fermentative activities have been utilized in the production of fermented foods andbeverages, which are defined as those products that havebeen subordinated to the effect of microorganisms orenzymes to cause desirable biochemical changes. The microorganisms responsible for the fermentation maybe the microflora indigenously present on the substrate,or they may be added as starter cultures. Cereal grains are considered to be one of the mostimportant sources of dietary proteins, carbohydrates,vitamins, minerals and fibre for people all over theworld. However, the nutritional quality of cereals andthe sensorial properties of their products are sometimesinferior or poor in comparison with milk and milk products.The reasons behind this are the lower proteincontent, the deficiency of certain essential amino acids(lysine), the low starch availability, the presence ofdetermined antinutrients (phytic acid, tannins andpolyphenols) and the coarse nature of the grains. A fermented, thick suspension made of a blend of rice(Oryzasativum) and dehulled black gram (Phaseolusmungo) is used in several traditional foods in SoutheastAsian countries. Among them, idli and dosa are verypopular in India and Sri Lanka (Sands &Hankin,1974). Traditionally, for idli preparation the rice andblack gram are soaked separately. After draining thewater, rice and black gram are grinded independently,with occasional addition of water

2 during the process.The rice is coarsely ground and the black gram is finelyground. Then the rice and the black gram batters aremixed together (2:1ratio) with addition of a little saltand allowing to ferment overnight at room temperature(about 30 _C). Finally, the fermented batter is placed inspecial idli pans and steamed for 5 8 min (Nagaraju&Manohar,2000). The lactic acid bacteria Leuconostocmesenteroides, Streptococcus faecalis, Lactobacillus delbrueckii, Lactobacillusfermenti, Lactobacillus lactis and Pediococcuscerevisiae have been found to be responsible for the fermentationprocess, although L. mesenteroides and S.faecalis are considered to be the microorganism essentialfor leavening of the batter and for acid productionin idli (Purushothaman, Dhanapal, &Rangaswami,1993; Ramakrishnan, 1993). The yeasts Geotrichumcandidum, andTrichosporonpullulans Torulopsisholmii, have also been Torulopsis identified in candida idlifermentation

(Chavan&Kadam, 1989; Shortt, 1998).Fermentation of idli batter appears to have a significanteffect on the increase of all essential amino acids and inthe reduction of antinutrients (such as phytic acid),enzyme inhibitors and flatus sugars (Steinkraus et al.,1993). Idli is a low calorie, starchy and nutritious food,which is consumed as breakfast or snack. Steamed idlicontains about 3.4% protein, 20.3% carbohydrate and70% moisture (Teniola&Odunfa, 2001). Large-scaleproduction of idli is carried out in batch compartmentalsteaming units. This is labour intensive and has limitedcapacity. With the growing demands for breakfastfoods, idlis are being consumed on a large scale in someIndian institutions such as army, railways, industrialcanteens, etc. In order to meet the demand, numerousstudies are carried out for the development of continuousunits for the production of idli. Despite of the conventional foods and beverages largelyproduced from cereals in the Western world(breads, pastas and beers), there is a wide variety ofproducts produced worldwide that have not received thescientific attention they deserve. These products areoften fermented, and have an improved self-life andnutritional properties in comparison with the rawmaterials used. The flora responsible for the fermentationis in many cases indigenous and includes strains oflactic acid bacteria, yeast and fungi. Singles of mixedcereals sometimes mixed with other pulses are used, andthe final texture of the product can vary according tothe processing and fermentation conditions.

Contracting out food and beverage operations in hotels: A comparative study of practice in north America and the United Kingdom
Gary Hallam and Tom Baum School of Business, The University of Buckingham, Hunter St, Buckingham MK18 lEG, UK Summary: This paper addresses one of the most significant changes that is taking place withrespect to the food and beverage area in hotels, that of contracting out operations toexternal operators, whether individual restaurateurs or branded restaurant chainnames. This development is widely regretted by many traditionalists but represents areality in north America and, increasingly, in the United Kingdom as well. This paperconsiders the current situation in north America and the UK and reports the findings ofa survey of individual hoteliers and corporate interests in both localities. The surveysought information on current attitudes to contracting out within the hotel industry andmixed responses are reported here. What can be reported with some confidence is thatthis practice will continue to grow in both locations. Hotels around the world are rethinking the ways they operate and deliver their food andbeverage. From limited service budget hotels to the luxury full service five star hotels,increasingly establishments are looking to outside operators or proven franchise conceptsto enhance customers' perceptions and to help increase profitability. The hotel industry isre-evaluating its relationship with in-house food and beverage operations. As a result,some hotel companies no longer consider food and beverage a necessary amenity to beprovided in the traditional sense. However, whether provided by hotel management orleased out to another operator, food and beverage is crucial to image, and thereforeremains closely linked to success (Brennan, 1987). Many hotels engage in some form of contracting out activities, such as their laundryfacilities or pastry production. However, there are wide differences between the policieswhich hotel groups adopt towards distancing. In general, the approach has been tocontract out peripheral rather than core activities. These distancing strategies that involvecontracting out operations, shift the burden of risk and uncertainty elsewhere (Guerrierand Lockwood, 1989). Until recently, food and beverage had been considered a centralactivity of most hotels and thus not within the scope of contracting out.

4 There are many reasons why hotels contract out portions or all of their food andbeverage operations. These reasons vary with size, location, market level and ownershipof each individual hotel. Bjorn Hanson, chairman of Coopers & Lybrand's hospitalityconsulting group, argues "today's increased need to maximize cash flow is sure to focusmore attention on increasing the F&B profit". Hanson says that this focus on the bottomline is leading hotels to lease their food and beverage to entrepreneurial operators, whilehotels with multiple food and beverage units are simply closing one or more down(Wexler, 1993).With guest's expectations on the rise, operators in hotel food & beverage departmentsincreasingly find themselves facing two choices to improve value; lower prices orupgrading of service and quality. What most say is that they can no longer afford to cut costs to enhance their profitability. Sean Handerhan, director of F&B marketing forMarriott argues that the company's initiative had shifted from costcutting to driving sales.And that means reinvesting in it's food and beverage operations (Chaudhry, 1993).Hotel restaurants also are at a financial disadvantage in relation to independentrestaurants. According to a 1992 study by Coopers & Lybrand, payroll and benefits madeup almost 39% of sales for hotel restaurants, compared with about 33% for the averagerestaurant (Chaudhry, 1993). Tom Lattin, director of Coopers and Lybrand's national hospitality industry consultingservices group notes the problem of trying to wear multiple hats. "Most hotel managersmanage the food and beverage service in the traditional hotel style, which means offering meals a day. But that's not their business, it's hotels". Lattin said operating food andbeverage requires more accounting staff, more time from sales staff, more administrationstaff, more payroll taxes, and higher maintenance costs (Rowe, 1993).Some of the main reasons for inviting outside restaurateurs to help with the food andbeverage operation is to provide a hotel with a specialty restaurant, to give the feeling thatthe guest is going out to a local bistro or trattoria: Secondly, the hotel may be small, andwithout management capability to handle food and beverage. Finally the hotel may justrequire a proven franchise concept to help boost sales (Wexler, 1993). Goldman and Eyster (1992) also identified some of the advantages and disadvantages oflease agreements, necessary success factors and implications for the future that would helpimprove further agreements for both parties. Table 1 shows some of these reportedadvantages and disadvantages from a restaurateur's perspective.

Traditional fermented foods and beverages in Burundi

NzigamasaboAloys, Nimpagaritse Angeline Summary:
Several traditional fermented foods and beverages are produced at the household level in Burundi. Theseinclude milk products (urubu, amateregua and amavuta), cereal and banana-based beverages (Urwarwa,Isongo, Impeke and Kanyanga) and cassava-based fermented foods (Ikivunde, Inyange, Imikembe and Ubswage).Literature on Burundian fermented foods and beverages is non-existent. Therefore, the objective ofthis review is to document the methods by which these Burundian foods and beverages are produced andto devise scientific means to improve their quality and optimize their production methods. Several traditional fermented foods are produced at the householdlevel in Burundi. The presence of unspecified microorganismscomplicates the control of fermentation process and gives productsof variable quality. The microbiology and the biochemistry of thesetraditionally fermented foods need to be fully understood beforethe predominant microorganisms in these fermentations are isolated,identified, character sized and used in the development ofstarter cultures. These together with improved processing andthe use of good quality raw materials for fermentations could beused in the establishment of a small-scale industry of fermentedfoods. Further research should be directed towards identifyingthe benefits and risks associated with fermenting and possible contaminatingmicroorganisms. Most of the traditional alcoholic beverages (Impeke and Urwarwa)can be distilled to yield a more concentrated (in terms of alcoholcontent) and a relatively pure beverage called Kanyanga. Toproduce Kanyanga, the brew is placed in drums, which are thentightly closed and put on a fire in one room. A coiled copper tubeleading from the drums to another room is placed in cold waterand the distillate is collected in a bottle. The concentration ofKanyanga is higher (no study has been done yet); those who drinkit get easily drunk. It is usually drunk by lower income individualswho cannot afford expensive beer produced in Burundi. No localdistillers exist in Burundi and its production, selling and consumptionis illegal because the spirit is alleged to be toxic as its drinkinghas been associated with ill health and cases of sudden death. Toxicityis attributed to several alcohols such as isoamyl alcohol, isobutanoland methanol. The process of producing Kanyanga issimilar to that of making

6 OugandanWaragi and comparable toZimbabwean Kachasu. Kachasu is usually brewed using maizemeal but bulrush or finger millet meal, various fruits and bananapeels may be used as alternative sources of carbohydrates. The carbohydratesource is added to warm water in a pot with a holedrilled on the side, which is used later during distillation of thespirit. The mixture is stirred into slurry and allowed to simmerfor a few minutes before a pot is removed from the fire. Sugarand yeasts are added after the slurry has been cooled to ambienttemperature. The hole in pot is sealed with clay and mixture allowedto ferment for 4 7 days at ambient temperature (Brett, Nyampingidza,&Gurira, 1992). At the end of fermentation, the seal onthe hole is broken and a narrow pipe connected. The pipe transversesa water-jacket containing cold water, which acts as a condenser.The fermented brew is distilled over a small fire and theclear distillate is collected from the end of the pipes into bottles.The alcohol content of Kachasu can range from 9% to 41%. The sellingand consumption of Kachasu in Zimbabwe has been illegalsince 1971 because the spirit is alleged to be toxic as its drinkinghas been associated with ill health and death. (Gadaga, Mutukumira,Narvhus, has been & Feresu,1999). Contrary Small to Kanyanga sell and their Kachasu,Waragi industrialized. brewers

traditionallyproduced Waragi to large distillery. The distillery then distils itto produce a high quality bottled commercial product with up to40% (Mwesigye&Okurut, 1995). A similar scheme could be introducedto upgrade and control the quality of Kanyanga and to producea safer and regulated distilled spirit. Cassava roots are peeled, washed, cut into pieces and sun-driedfor one day. They are then heaped together and covered by plantainleaves or straw and left to ferment for 5 days. The end of the fermentationis marked by the appearance of moulds on the surface of cassavapieces and the softness of the root. An appealing flavor isdeveloped during fermentation. The fermented pieces are sun-driedafter scrapping off the mould after which, the cassava pieces arepounded in a wooden mortar with a pestle and sieved to get slightlydark colored flour called INYANGE. The production is summarizedin Fig. 4. This cassava product is made into a paste (ubugali) by stirring it with boiling water over a low heat. It is eaten with legumes,isombe and meats. Moulds involved in fermentation are responsiblefor the color and the flavor of the flour (Hahn, 1989; Musuku, 1995;Nzigamasabo A., 2007; Rwamudanga, 1988).

Capturing the Spectrum of Household Food and Beverage Purchasing Behavior: A Review
SIMONE A. FRENCH, PHD; SCOTT T. SHIMOTSU, MPH; MELANIE WALL, PHD; ANNE FARICY GERLACH, MPH

Summary:
The household setting may be the most important level atwhich to understand the food choices of individuals andhow healthful food choices can be promoted. However,there are few available measures of the food purchasebehaviors of households and little consensus on the bestway to measure it. This review explores the currentlyavailable measures of household food purchasing behavior.Three main measures are described, evaluated, andcompared: home food inventories, food and beverage purchaserecords and receipts, and Universal Product Codebar code scanning. The development of coding, aggregation,and analytical methods for these measures of householdfood purchasing behavior is described. Currently,annotated receipts and records are the most comprehensive,detailed measure of household food purchasing behavior,and are feasible for population-based samples.Universal Product Code scanning is not recommendeddue to its cost and complexity. Research directions toimprove household food purchasing behavior measuresare discussed. The variability of household food and beverage purchasesis an important issue to consider in reliably capturinghousehold food purchasing behaviors but little is knownabout this area. Variability in household food and beveragepurchases occurs at multiple levels. Variation withinand between households in the frequency with which theyshop at the supermarket or grocery store, or other foodstores, and in the frequency with which they purchasefood and beverages from restaurants, fast-food places,and other types of stores that sell food will affect thenumber of weeks of food purchase data needed to estimatefoods or food groups. Households vary in the types offoods they purchase, at the item level (eg, potato chips),and at the category level (eg, prepackaged snack foods).The number of days or weeks needed to provide food andbeverage purchase estimates may vary depending on thetarget food or beverage item.A comparison with dietary recall estimates is instructive.The number of days of dietary recalls needed toestimate an individuals total energy intake is muchfewer than that needed to estimate intake of specific foodsor specific nutrients, because total energy intake is lessvariable than intake of any specific food (37-41). Eachlevel of

8 variability needs to be understood to better determinethe number of days or weeks of data needed toprovide reliable estimates of the home food purchases. Articles were located using a computerized search of thedatabases MedLine, PsychInfo, and ISI Web of Sciencefrom 1990 to 2007. Key words included home, food, UPC,barcode, food purchase, scanners, household food, receipts,tills, shelf inventory, pantry, register tapes, andfood inventory. In addition, reference lists from key publishedarticles were reviewed for relevant articles. Inclusioncriteria for this review were that the research had toinclude a measure of foods and beverages currently availablein the home or purchased. The measure could be anon-site observation by trained research staff or by thehousehold participant, or it could be a self-report by thehousehold participant to the research staff. Food sourcescould be grocery stores, other food stores, restaurants andother eating out food sources. Home Food Inventories (HFIs)HFIs have been used to describe the cross-sectional availabilityof certain foods and beverages in the home environmentat a single point in time and are completedeither by the participant or by a trained research staffperson. Inventory studies have either attempted to captureall of the foods in the home, or else have focused oncertain subsets of food types (eg, fruits and vegetables orhigh-fat foods). Seven studies (six American, one Italian)were located that used HFIs (see the Table). To captureall of the foods and beverages in the home environment,Crockett (13) developed an 80-item shelf inventory aspart of an evaluation of a community-based nutritionintervention. The HFI was mailed to a random sample of50 households recruited from a telephone directory.Foods were checked as present or absent in the household.Quantities were not recorded. Eating out foods wasnot measured. A research staff person visited the home tocomplete a second HFI within 3 hours of the participantscompletion of the HFI. Using the researcher-completedHFI, sensitivity and specificity of the foods at the itemlevel were calculated (26) and found to be high whencomparing the household and researcher completed inventories(0.86 and 0.92, respectively).A similar study examined the validity of an HFI amongolder adults with type 2 diabetes (15). The HFI includedall food and beverage items in the household. Eating outfoods was not measured. Food items were coded aspresent or absent, and no quantitative information wascollected.

Traditional biotechnology for new foods and beverages

JeroenHugenholtz

Summary:
The food and beverage industry is re-discovering fermentation as a crucial step in product innovation. Fermentation can provide various benefits such as unique flavor, health and nutrition, texture and safety (shelf life), while maintaining a 100% natural label. In this review several examples are presented on how fermentation is used to replace, modify or improve current, artificially produced, foods and beverages and how also fermentation can be used for completely novel consumer products. The process of fermentation was traditionally leveraged by the human population to increase the shelf life of perishable agricultural produce such as milk, vegetables and meat. This has resulted in a vast variety of fermented foods and beverages that is still the main part of the human diet in many under-developed countries and in most countries in South-East Asia. In North America and Europe which have extremely efficient and rapid distri- bution systems and an overall availability of cooling and freezing systems, most of the traditional fermented products, with the exception of fermented dairy (yoghurt and cheese) and meat (sausages) have been replaced by fresh agricultural produce, making the process of fermentation obsolete. With the use of novel genomic technologies more detailed insight has been given in some traditional fermentations such as sourdough [34], kefir [1], kimchi [35,36], cacao [37 _], yoghurt [38] and sau- sage [39] fermentations. Also several lesser-known fermented products have been characterized using these genomics tools [40,41 _]. It has clarified for instance which microorganisms are most active in these fermen- tations and how they are adapted to their specific environments. This type of experimental data is crucial when considering to up-scale these processes or when applying these microorganisms on other substrates. Such data will also be used to build comprehensive models of each fermentation process with the ultimate goal to accurately predict the outcome of (novel) fer- mentations. The struggles and challenges faced by the modelers are discussed in another chapter of this special Food Biotechnology issue [42]. However, some early successes of the Systems Biology approach are also reported [43 _,44,45] providing possible solutions for process improvement and also providing the essential insight for much more extensive use of the fermentation technology in the food and beverage industry.

10 This trend away from fermentation seems to have come to a recent stop and is now gradually reversing. More and more people (and food companies) are regain- ing interest in traditional and more natural foods and there is a growing dislike for the processing and energy-input that is needed to maintain freshness of agricultural crops. In addition, the food and beverage industry is continuously trying to innovate within the constraints of sustainability and naturalness. All these recent developments are leading to increased interest and activity in fermentation technology by all consumer goods indus-tries, big and small. This trend is not really visible in the scientific literature and (not yet) in the patent literature, so some referencing will be made to company-websites as support of statements made in this contribution. Fermentation, nowadays, is all about bringing unique signature flavors and other benefits to consumer products in a 100% natural way. This is done using, mainly, two different approaches. The easiest is to turn a traditional, home-grown, product into a large scale process. Examples are the dairy product, kefir which is a traditional liquid fermented dairy product using a mixture of lactic acid bacteria, yeast and fungi for the fermentation of milk, resulting in a yoghurt-like, slightly alcoholic product which has traditionally been consumed by millions of people in, especially, Eastern Europe and supposedly conveys spectacular health benefits to the consumer. The fermentation process is, typically, conducted at home on, or close to, the stove and using small leftovers of previously produced kefir or a small kefir granule purchased at the local grocery store, as inoculum. Only recently, the larger dairy companies have managed to upscale this process to an industrial scale using active and stable starter cultures just as is the daily practice for mainstream dairy products such as yoghurt and cheese. Another example is the traditional drink of Kvass which is a result of fermentation of kitchen left-overs mainly consisting of bread bits. This fermented product is also traditionally made at home with a final composition depending on the type of left-overs used and the nature of the locally evolved microbial culture. This traditional beverage is now also marketed by larger companies, also outside the originating country, Russia. The main challenge of these companies is to prepare this family drink with a constant quality and, especially, without alcohol. This is basically done by using controlled fermentations with standardized starter cultures and similar fermentation conditions (short, low temperature) as used for non-alcoholic beer production.

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Efficient or enjoyable? Consumer values of eating-out and fast food restaurant consumption in Korea
Cheol Park
Department of Management Information Systems, Korea University, Jochiwon-Eup, Yongi-Gun,Chungnam 339-700, South Korea

Summary:
The Korean fast food industry has grown rapidly since the 1988 Seoul Olympic Games.There are now 1500 fast food restaurants in Korea. This study investigated the relationshipsbetween consumer values of eating-out and the importance of fast food restaurant attributes inKorea. Using a questionnaire, 279 fast food restaurant patrons were surveyed. The resultsshowed that consumer values of eating-out divided into two factors; hedonic and utilitarian.The hedonic value of eating-out had positive correlation with mood, quick service, cleanliness,food taste, employee kindness, and facilities, the utilitarian value centered on reasonable price,quick service, and promotional incentives. Also, the hedonic value more influenced buyingfrequency than the utilitarian. This study presents empirical evidence showing that Koreanconsumers choose fast food restaurants more by hedonic, not utilitarian, values of eatingout.Consequently, fast food restaurant marketers in Korea should consider hedonic aspects as themost important factors in attracting customers. Limitations and further research issues aresuggested. Due to global travel, communication, and media, cultures are converging and theglobalizing of markets has led to a common culture worldwide. The fast food restaurant is one typical form of global business (Emerson, 1990). As Korea is notexceptional in this stream, fast food industry is growing up rapidly in recent years.The total market size of the foodservice industry is estimated to be about $16.2billion with an annual growth rate of 13%. In Korea, the fast food industry hasgrown rapidly since 1988 Seoul Olympic Games. There are currently 1500 fast foodrestaurants throughout the country. Many Korean adolescents are becomingincreasingly more westernized and workers pursue greater convenience when eating.Presently, there are four major fast-food restaurants chains in Korea: Lotteria,McDonalds, KFC and Poppeyes. Lotteria, the Korean brand, ranks the first bymarket share despite fierce challenges by foreign fast food competitors.Why was the fast food industry in Korea grown so growing rapidly, and why isLotteria domestically the most successful? There are some unique cultural differencesin Korean fast food

12 consumption. For example, Koreans tend to consider fast foodrestaurants as representative of western culture. In addition, they are recognizedbeing not only an efficient and economic eating environment but also as an exoticplace for social interaction and entertainment. There are negative viewpoints as towhether or not the global standardization of restaurant operations is fit for Korea.This study focuses on the unique points related to the adoption and use of fast foodrestaurants in Korea. Fast-food restaurants should develop customer-orientedmarketing strategies based on culture-specific characteristics to survive in fiercecompetition. Therefore, a better understanding of Korean fast food restaurantbehavior is necessary in developing effective marketing strategies. However,consumer behavior in connection to fast food has received only limited attentionor study within the hospitality and food services studies More specially, culturalresearch on consumption of fast food restaurant is virtually unavailable. This studywas undertaken to explore the relationship between consumer values of eating-outand consumption of fast food restaurant in Korea. Some unique findings will beidentified through this work. There are various motivations for eating out; economizing, efficiency, fun, tasteand social interaction. Eating out gives consumers experiential values. Therestaurant is a place where we experience excitement, pleasure and a sense ofpersonal well being argues that consumers areincreasingly coming to value efficiency, calculability, predictability and control, due to changes in lifestyle, demographic factors and technology in restaurantconsumption.Values represent important and desirable end goals. A general view of valuesguided this research, recognizing both (1) a utilitarian outcome resulting from theconscious pursuit of an intended consequence and (2) an outcome related more tospontaneous hedonic responses. The former is called a utilitarianvalue and the latter a hedonic value. Utilitarian consumer behavior has been described as taskrelated and rational. The hedonic value ismore subjective and personal than its utilitarian counterpart and results more fromfun and playfulness than from task completion. Factor analysis of consumer values of eating-outFactor analysis, using the principal component method with a Varimax rotationof factors, was performed to identify characteristics of consumer values of eatingout.Cronbachs alpha was used to assess the reliability for each factor.

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The essential balance: Risks and benefits in food safety and quality
Barbara Burlingame_, Maya Pineiro
Food and Agriculture Organization of the United Nations, VialedelleTerme di Caracalla, 00153 Rome, Italy

Summary:
Food composition analysis is concerned with both beneficial and harmful food components in the human diet: nutrients, bioactivenon-nutrients, anti-nutrients, toxicants, contaminants and other potentially useful and dangerous elements. The concept of food safety inthe past excluded elements of nutrition such as known risk factors for certain chronic diseases and nutrients in the form of fortificantsand supplements. Concerns about genetically modified foods, functional foods, high levels of nutrient additives and nutritionalsupplements are now being taken into consideration in the risk and safety activities of both the Food and Agriculture Organization of theUnited Nations (FAO) and the World Health Organization (WHO). Food safety generally refers to the content of various chemicaland microbiological elements in food. More consumer awareness of food safety and quality issues, along withgovernment and industryaction, is bringing about a more preventive, food chain approachsometimes called from farm to tablein many countries, so as toimprove traditional food safety systems. FAO has adopted this food-chain approach and defines it as recognition that the responsibilityfor the supply of safe, healthy and nutritious food is shared by all involved, from primary production to final preparation andconsumption. Compositional changes (representing either risks or benefits) in food can be introduced at every link. Althoughdevelopments may be largely beneficial, food composition needs to be monitored to ensure that no harm results to consumers. Finally,collaborative international efforts are needed in order to resolve issues of foodquality and safety across boundaries in a global worldtrade context. A holistic food chain approach would recognize that responsibility for supplying safe and nutritious food lies with allthose involved in food production. Food safety issues are causing more concern than ever, ifa glance at headlines over the past few years is anyindication: mad cow disease,1 Escherichia coli contaminationof green vegetables,2 dioxin in the food chain3 andongoing concerns about mercury and pesticides in food. Inthe context of work carried out by United Nations agenciesand international organizations, food safety is theassurance that

14 food will not cause harm to the consumerwhen it is prepared and/or eaten according to its intendeduse (Codex Alimentarius, FAO/WHO, 2001). Food composition encompasses both the beneficial and theharmful components of food. In the first editorialpublished in the Journal of Food Composition and Analysisin December 1987, Kent Stewart (1987) wrote, Thehuman diet is a primary vehicle for our interaction withthe environment. It is the major source of nutrients and canbe a significant source of human exposure to infectious,toxic, and pharmacological agents. Food quality and safety, and risks and benefits in food composition studieswere again raised by Stewart in subsequent editorials. Indeed, the analysis of the compositionof food is concerned not only withth e nutrients inthe human diet, but concomitantly and significantlywithanti-nutrients, toxicants, contaminants and otherpotentially dangerous elements. Other editorials in Journalof Food Composition and Analysis have also underlinedthis direction: Food composition can and should beinclusiv e of all intrinsic, deliberately added, and incidentalcomponents, including environmental contaminants,additives, and bioactive non-nutrientsPreviously, the concept of food safety excluded elementsof nutrition, suchfood components that are known riskfactors for certain chronic diseases (FAO, 2005c), andnutrients in the form of additives, functional foods andsupplements. More recently, requests have been made atinternational forums to include these elements in risk andsafety activities (FAO/WHO, 2006). The impetus has comefrom concerns about genetically modified foods, functionalfoods, high levels of nutrient fortificants and nutrientsupplements. Thus, as the global food supply evolves,certain aspects of food safety and nutrition are seen moreas a continuum than as separate fields of activity. In arecent editorial, wrote, Is dietaryanalysis different from an exposure or risk assessment? Notreally. Is a food composition database different from anadditive, contaminant or toxicant database? No, notfundamentally. Do we miss assessment opportunities inclinical and epidemiological researchby not havingextensive compositional databeyond nutrientsin ourfood databases? Surely we do. Is a food composition database different from anadditive, contaminant or toxicant database? No, notfundamentally. Do we miss assessment opportunities inclinical and epidemiological researchby not havingextensive compositional databeyond nutrientsin ourfood databases? Surely we do.

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Factors that influence beverage choices at meal times. An application of the food choice kaleidoscope framework
S. Mueller Loose, S.R. Jaeger Summary:
Beverages are consumed at almost every meal occasion, but knowledge about the factors that influencebeverage choice is less than for food choice. The aim of this research was to characterize and quantifyfactors that influence beverage choices at meal times. Insights into what beverages are chosen by whom,when and where can be helpful for manufacturers, dieticians/health care providers, and health policymakers. A descriptive framework the food choice kaleidoscope (Jaeger et al., 2011) was applied toself-reported 24 h food recall data from a sample of New Zealand consumers. Participants (n = 164)described 8356 meal occasions in terms of foods and beverages consumed, and the contextual characteristicsof the occasion. Beverage choice was explored with random-parameter logit regressions to revealinfluences linked to food items eaten, context factors and person factors. Thereby this study contributedto the food choice kaleidoscope research approach by expressing the degree of context dependency in theform of odds ratios and according significance levels. The exploration of co-occurrence of beverages withfood items suggests that beveragemeal item combinations can be meal specific. Furthermore, this studyintegrates psychographic variables into the person mirror of the food choice kaleidoscope. A measure ofhabit in beverage choice was obtained from the inter-participant correlation. The study of contextual influences on food/beverage choices why does who eat what, when and where? is of high importanceto better understand the complex interplay of food choicedrivers. Researchers have used diverse paradigmsin the study of the factors that shape food/beverage choice. In the research into contextual influences onfood/beverage choices more attention is now being directed tothe joint influence of multiple contextual factors. Although bulk demonstrated that interactions between contextual factorsare important in shaping consumer behavior, this aspect of contextualinfluences have not been prioritized by researchers, anddrew attention to the need for research thatmore fully integrates and jointly examines the factors alreadyidentified. focused on the situationalcontext of social surroundings as a moderator for the suitabilityof different meal options. Authors jointly assessed the

16 influence of temporal and social factors onthe stated intention to eat convenience food. presented discrete choice experimentation as one optionfor jointly examining product, context and person factors in foodchoice decisions. While most of these prior studies relied on measuringintentions in a theoretical context isan example of a more externally valid approach for studying thejoint influence of several context factors on food choice. To investigatebeverage choices in bars with different ambiences, theycreated experimental settings by systematically varying the furnitureand music/videos shown. Participants enter the bar, experienceits ambience(s) and then make beverage choices. Theauthors describe their approach as immersive and seek to capturethe moment of consumption as this, they suggest, is wherecontextual influences congeal to exert their joint influence.Although very different, these two empirical approaches have incommon the need to define, a priori, the contextual factors tobe studied. Research into contextual food choice factors requires knowledgeabout what factors may interact, and approaches that enabledata mining to search for interactions can, hence, be useful. Thefood choice kaleidoscope approach serves this purpose. It offers a framework forthe joint and structured investigation of product, place and personas sources of variation in food choices. The term kaleidoscopewas coined as a metaphor for observing food choice events throughdifferent lenses. To use the food choice kaleidoscope the researchermust decide which mirrors (i.e., which food choice factor) to apply.A single or alternatively multiple mirrors can be applied at once tothe food choice data to understand contextual factor of mealconsumption.In data were obtained from 24 h food recalldairies where participants for each meal recorded beverages andfood components consumed, time, location, presence of other people,etc. While reliant on self-reports, which can be biased, everydayfood consumption in its natural context is captured. Becausethe data can be analyzed quantitatively, there is scope to determinethe relative importance for food/beverage choices from maineffects and their interactions. demonstrate this approach and directly confirm Belks findingsthat interactions between contextual factors are important infood/beverage choice decisions. The food recall data were obtained from a sample of 164 NewZealand consumers, recruited to take part in studies about flavorpreferences in foods and beverages. The inclusion criteria for theseprojects meant that all participants were between 18 and 50

17

The relationship between technical efficiency and industrial concentration: Evidence from the Indonesian food and beverages industry.
MamanSetiawana,b,*, GrigoriosEmvalomatis c, Alfons Oude Lansink c Summary: This paper investigates the relationship between technical efficiency and industrialconcentration in the Indonesian food and beverages sector. Firm-level data obtained fromthe Indonesian Bureau of Central Statistics (BPS) are used to estimate technical efficiencyscores and calculate measures of industrial concentration. The results show that the foodand beverages industry is characterized by high industrial concentration and firms in theindustry are inefficient. The Granger-causality test suggests a one-way direction ofcausality, with industrial concentration having a negative impact on technical efficiency,at the sector level. This suggests that the quietlife hypothesis, rather than the efficientstructurehypothesis, applies to the Indonesian food and beverages industry. The food and beverages sector is one of the economic sectors that contributes significantly to the Indonesian GDP and employment absorption. Since 2004, the output of this sector accounted for about 7% of the Indonesian GDP and about 23% of the total industrial manufacturing output. Additionally, the food and beverages sector absorbed about 23% of total employment in the Indonesian manufacturing industry in 2006. However, as shown by Setiawan, Emvalomatis, and Oude Lansink (2012), this sector is characterized by a tight oligopoly structure, with the concentration ratio for four firms (CR4) being about 66%, and has experienced high price-cost margins in the period 19952006. Given the importance of the food and beverages industry in the Indonesian economy, efficient transformation of inputs into outputs is necessary to ensure a competitive price and product quality for the consumers. Efficiency losses in the food and beverages industry, either caused by firm-level technical or allocative inefficiency or due to oligopolistic power, may have far-reaching consequences for the entire Indonesian economy and the well-being of the local population. This industry fulfills primarily the needs of the local population with imports accounting for about 6% of total consumption in the sector and exports being less than 3% of the value of output in the period 20052006. Furthermore, Indonesian households spent about 50% of their income on food and beverages products in the period 2005 2006. Any

18 type of inefficiency associated with the sector will be translated to higher consumer prices, which will increase the cost of living and may lead to social unrest. Additionally, there may be interrelationship between the high industrial concentration in the sector and firm-level efficiency. There are two competing theories that explain the relationship between industrial concentration and efficiency, i.e. the quiet-life (QL) hypothesis and the efficient-structure hypothesis. The quiet-life hypothesis (Hicks, 1935) suggests that high industrial concentration lowers competition among firms, which in turn, reduces incentives for the firms to maximize their efficiency. GumbauAlbert and Maudos (2002) found that there is a negative relationship between industrial concentration and efficiency, thus supporting the QL hypothesis. Their study showed that firms operating in more concentrated markets had the lowest technical efficiency scores. Also Al-Muharrami and Matthews (2009) observed that more market power means less control on the costs, which makes firms less efficient. Furthermore, Setiawan et al. (2012) found that anticompetitive practices exist in the food and beverages manufacturing sectors that are characterized by high industrial concentration. Thus, according to the QL hypothesis, one may deduce that high industrial concentration may lead to inefficiency. The quiet-life hypothesis has been challenged on theoretical grounds (Stigler, 1976) for not providing a viable alternative to profit maximization as the objective of monopolists and oligopolists. The second theory, the efficient-structure (ES) hypothesis, states that firms with higher efficiency produce at lower cost per unit of output, which in turn leads to higher profits and larger market share (Demsetz, 1973). This also causes the efficient firms to grow more rapidly in size than less efficient firms. Therefore, profitability and market structure can be a mirror of an efficiency difference among firms. In other words, this hypothesis says that higher industrial concentration may be created by the efficient firms. In line with this hypothesis, Allen, Shaik, Myles, and Muhammad (2005) found that the efficient-structure hypothesis applied to the trucking industry in the United States. It is important to find out which hypothesis is relevant for the Indonesian food and beverages sector. Although previous research investigated technical efficiency in this sector, the research did not clarify the relationship between technical efficiency and industrial concentration. For example, Margono and Sharma (2006) estimated only technical efficiency scores in food, textile, chemical, and metal product industries from 1993 to 2000 in Indonesia.

19

Mapping of environmental and technological performance of food and beverage sector in Bosnia and Herzegovina
(Hydro-Engineering Institute Sarajevo, StjepanaTomi_ca 1, 71000 Sarajevo, Bosnia and Herzegovina)

SandaMid_zi_c-Kurtagi_c, IremSilajd_zi_c*, TarikKupusovi_c

Summary: The objective of this paper is to discuss the mapping methodology implemented in the selection of BAT candidates and to present the results of the mapping of B&H food and beverage sector, prepared as a baseline for the development of national reference documents on Best Available Techniques. The subsectors subject to analysis were: dairy, fish farming, fish processing, fruit and vegetable processing, meat processing, breweries, and slaughterhouses. The sector was mapped from several aspects, including socio-economic, legal, and environmental point of view. The socio-economic aspect focused on understanding the sectors structure and financial capabilities, pricing for water, energy, and solid waste consumption, as well as employee profiles, in order to better assess the sustainability of decisions taken. Legal mapping focused on relevant regulations, including policies from the following sectors: environment, water use and protection, food safety, agriculture, and veterinary, in order to determine legal requirements from an environmental protection aspect set in the various sector policies. Environmental performance indicators were calculated in order to assess present resource efficiencies and relevant environmental impacts. In addition, the mapping process also addressed the existing level of BAT implementation in the subsectors under consideration. The paper presents a rationale for methodology selection, offers a review of the mapping methodology used, discusses mapping results and provides conclusions in regards to that methodology used and discusses issues that need to be considered in the selection of BAT candidates. Similar to other countries with economies in transition, industrialcompanies in Bosnia and Herzegovina (B&H), are facingnumerous challenges and changes on their road to a marketeconomy. The current national environmental legislation, whichdefines the relationship between industrial activity and the environment, requires industries to obtain an environmental permitbased on the integrated pollution prevention and control conceptpresented in the EU Directive 2008/1/EC (Directive 2008/1/EC ofthe European Parliament, 2008). The permit is to include emissionlimit values, equivalent parameters or technical measuresbased on Best Available Techniques, taking into

20 account the technicalcharacteristics of the installation, its geographical location,and the local conditions. Operators with the permit are legallyobliged to use Best Available Techniques (BAT) to prevent or minimize the negative impact on the environment.In order to be able to enforce the environmental law, theministries are required to develop a number of bylaws and tools forthe successful implementation and monitoring of legal provisionson integrated pollution prevention and control. One of the basicrequirements is the development of national reference documentson Best Available Techniques (Articles 6, 71, 86) for the majority ofthe industrial sectors (Law on Environmental Protection).The European Union Best Reference Documents (EU BREFs)were mainly developed based on the exchange of information onmedium to large size companies having capacity thresholds correspondingto those of Annex I of the EU Directive 2008/1/EC. Forcountries whose economy depends on small and medium sizecompanies, EU BREF documents do not provide adequate informationthat can aid both the industry and the regulating bodies inimplementing integrated pollution prevention and control. Thereis a need to develop national reference documents on Best AvailableTechniques using EU BREF documents; however they need totake into consideration local conditions, further taking intoaccount environmental performance and technology employed bylocal industries as well as the countrys economic and socialsituation. The purpose of this paper is to discuss the mapping methodologyused for the selection of BAT candidates and to present resultsof the mapping process of B&H food and beverage sector, preparedas a baseline for the development of national reference documentson BATs. The basic criteria for the selection of BAT candidate requires theBAT to be developed in scale which allows implementation inrelevant industrial sector under economically and technicallyviable conditions, taking in considerations costs and advantages (Directive 2008/1/EC of the European Parliament, 2008).Dijkmans (2000) presented the first methodological approach toBAT selection. Various BAT candidates were evaluated with respectto their technical feasibility, environmental benefits, and economicaspects, leading to the proposal of BAT. The author introduceda term average or typical enterprise whereby a certain BATcandidate can be applied with reasonable costs. The methodologywas tested in fruit and vegetable processing industry and resultswere published in 2002 (Derden et al., 2002).

21

New forms of organization and R&D internationalization among theworlds 100 largest food and beverages multinationals
FragkiskosFilippaios a,b,1, Marina Papanastassiouc,d,2, Robert Pearcee, Ruth Rama

Summary This paper explores the strategic internationalization of Research and Development (R&D) activities of theworlds 100 largest food and beverages (F&B) multinationals (MNEs) in 1996 and 2000 with a sample ofnearly 8000 affiliates for each period.We develop a global innovation strategy (GIS) structure where weanalyze the R&D internationalization process of F&B MNEs.We argue that in a fully developed GIS modelthe sourcing of creative inputs does not come exclusively from a central R&D laboratory, but other overseasR&D laboratories or technological affiliates can also undertake genuine knowledge creation activityfromcapitalizing on the scientific heterogeneity fostered in individual host countries aswell as distinctivedemand conditions. Our results indicate the increasing importance of overseas technological affiliates inthe application of a GIS in the leading F&B MNEs, which determine the degree of their technological internationalization.Two variants of technological affiliates reflect two broad knowledge-related activities, i.e.adaptation and genuine forms of knowledge creation. One of the key changes during the refocusing of the competitiveorganisation of the MNE over perhaps the last 40 years has beenthe decentralization of innovation and R&D. In the years immediatelyafter the second world war, as modelled by Vernon (1966) inthe original product cycle model,United States MNEs (in particular)created sources ofcompetitive advantage intheirhomecountry andused processes of technology transfer to apply these advantages asthe basis of internationalisation. Gradually an ever-expanding literatureon innovation andR&Dhas drawn attention to the dispersal oftechnology creation and application units throughout these firmsglobal networks. We have characterized these internationalized processes and facilities as reflecting interdependent individualism(Papanastassiou and Pearce, 1998). Thus the reason for establishingparticular laboratories or innovation-oriented subsidiaries incertain locations is to drawon specific creative/technological capacitythere. By internalizing these attributes, laboratories/subsidiariesindividualize their contribution to grouplevelcompetitiveness. Butfor this indeed to work for the group these units also need

22 tofunction interdependently with other similar units of the parentcompany (with similarly individualized capacity and agendas) elsewhere.To achieve this mixture of localized learning as part of groupknowledge generation the types of technology affiliates (TAs) analysedlater in this paper have emerged. These can take coordinatingand organisational roles in group evolution which are informed by,and operative in, regional contexts as part of even wider overallgroup perspectives. These perspectives can be schematically formalized in terms ofthe GIS of MNEs fulfilling three key aims: firstly, to detect and internalizenew creative potentials from diverse sources of science andtechnology; secondly, to derive from these the broad parameters ofa new product concept (NPC); thirdly, to complete the competitivedevelopment of the NPC in different forms that correspond to marketswith different tastes and at different levels of development.Though the GIS ultimately targets the introduction of NPCs into arange of market places it is also implicit in this approach to innovationthat processes will be designed for each region in a way thattakes account of input availabilities as suggested in the first key aimof a GIS. In this manner product innovation represents the ultimatelink between the firm and the market place.3From an implementation perspective, this GIS is being overseenand coordinated by a central R&D laboratory and operationalisedthrough three types of decentralized and networked laboratories.The first of these lab types is the internationally interdependentlaboratory (IIL), which carries out basic/precompetitive research by tapping into and internalizing distinctive strands ofits host-location scientific agendas and technological capabilities.Assembling a network of IILs, each accessing a different local scientificpotential, i.e. responding to technological heterogeneity,provides an MNE with a range of complementary sources of newknowledge. By encouraging knowledge exchanges between IILs,and by itself seeking to understand and assimilate research outputfrom throughout the network, the central lab aims ultimatelyto assemble the technological basis of a strong NPC. The precedingpoint leads us to the coordinating role of a parent laboratory in aGIS, and indeed of the status of a home-country parent headquarters(HQ) in an MNE which is now placing significant emphasis onthe decentralization of much of its creative and innovative strategicactivity.Once the bases of the NPC are in place, the second type of decentralizedlaboratory, the locally integrated laboratory (LIL), comesinto play.

23

Understanding alternative food networks: exploring the roleof short food supply chains in rural development
HenkRenting & Terry K Marsden, Jo Banks

Summary:
In this paper we explore the development and incidence of alternative food networks withina European-wide context. By developing a consistent definition of short food supply chains, weaddress both the morphology and the dynamics of these, and then examine empirical evidenceconcerning their incidence and rural development impact across seven EU member states. Thesedevelopments need to be seen as one significant contribution to the current transitions in ruralEurope concerning the crisis of conventional intensive and productivist agriculture and the publicconsumer pressure for a larger variety of distinctive `quality' food products. In recent years we have witnessed the emergence of new forms of dynamism inagricultural commodity markets. These are to be situated within the context of a moregeneral transition in rural economies, characterised by some as the shift from aproductivist to a `postproductivist' food regime whereas others speak of the establishment of a new `rural development para-digm' (van der Ploeg et al, 2000). The creation, operation, and evolution of `new' or`alternative' food supply chains is one of the key dimensions of new rural developmentpatterns now emerging. As Marsden (1998, page 107) states, ``food markets are becoming more differentiated on the basis of a range of socially constructed food qualitycriteria'', resulting in the emergence of new quality-food markets in addition to (andsuperimposed on) existing anonymous mass food markets.The food chain dimension has become a key element enabling us to understandbetter new patterns of rural development (Marsden et al, 2000a) and, potentially alsoa significant building block for future policies designed to influence these. In this paperwe explore some key aspects of the relation between food supply chains and broaderissues of rural development. In this, a direct link between theory and practice is made. It is contended that to understand the role of food supply chains in rural developmentmore fully, we need to come to grips with the empirical richness of emerging alternative food networksby examining how these are built, shaped, and reproduced overtime and spaceand we need to understand better the extent to which they actuallydeliver in terms of rural development objectives.In the analysis ample reference is made to European examples of alternative foodnetworks. These are drawn

24 from case studies presented in the COST A12 WorkingGroup and, most importantly, from the results of European-wide IMPACT researchon the socioeconomic impact of rural development practices. The construction of new food supply chain configurations forms a crucial element in the strategies underlyingthese new practices, as is the case with, for example, organic farming, qualityproduction, and direct selling. The presented figures underline the impressive growthof new food supply chains in recent years.At the same time, a comparative analysis makes clear that there is a diversity of competing definitions of quality along these food supply chains, both between andwithin countries. This is exemplified by the very different ways in which consumerdemands and new producer supplies are articulated to specific (organic, integrated,regional, artisanal, etc) production `codes'. These differences result from a diversity infarming systems and territorial settings, different cultural and gastronomic traditions, adiversity in the organisational structures of food supply chains, variations in consumerperceptions, and also from substantial differences in institutional and policy support.At the outset of the paper it is important to address some definitional issues. Theterm alternative food networks (AFNs) is here used as a broad embracing term tocover newly emerging networks of producers, consumers, and other actors thatembody alternatives to the more standardised industrial mode of food supply(Murdoch et al, 2000). This fits with the general use of this term by the COST A12Working Group (see editorial of this issue). To understand the diverse nature anddynamics of AFNs, however, we have found it necessary to employ more specificempirically identifiable concepts and parameters. In this paper, therefore, we attemptto explore these different dimensions by beginning to specify empirically different typesof AFN. In the IMPACT study, for instance, three categories of alternative or shortfood supply chains (SFSCs) are used: organic farming, quality production, and directselling. These have been consistently applied to the collection and analysis of empiricalevidence. The SFSC concept is more specific than AFNs, and, rather, covers (theinterrelations between) actors who are directly involved in the production, processing,distribution, and consumption of new food products. As the analysis in this paper indicates, it is important not to overly `prejudge' ortheoretically restrict definitions of AFNs given the current scarcity of theoretical andempirical work conducted upon them.

25 Consumer evaluations of fast-food services: Across-national comparison

Moonkyu Lee, Francis M. Ulgado

Summary The growth of service industries is playing a significant role in the USeconomy (Bateson, 1992; Cronin and Taylor, 1992; Ginsberg and Vojta,1981). By 1992, the service sector accounted for 72 percent of its grossdomestic product and 76 percent of the domestic labor force employment(The Economist, 1993). It has accounted for most of the recent growth innon-farm employment; 85 percent of all new jobs created in the last decadehave been in service industries (Koepp, 1987).Services have also been a fast-growing part of US trade, amounting to a 20percent share of the world market and 30 percent of US exports. With 135companies, the USA has dominated the Fortune Global Service 500(Fortune, 1993). In 1991, US cross-border receipts (or exports) for sales ofprivate services totaled $153 billion while cross-border payments (orimports) for purchases of services were $99.9 billion, indicating a surplus of$53.2 billion (US Department of Commerce, 1992). This surplus has furtherwidened to $60.6 billion for 1992. For the period 1986-1992, the averageannual growth in exports was almost triple that in imports (US Departmentof Commerce, 1993). In addition, services have been a significant part offoreign investment, accounting for an average of 40 percent of the stock ofUS foreign direct investment (The Economist, 1993).The proliferation and internationalization of services have not only offeredbusiness opportunities but also posed competitive threats for many USservice marketers. Service marketing researchers have suggested that astrategy for the survival and success of service firms is the delivery ofquality services that satisfy customer needs and wants (Brown and Swartz,1989; Parasuraman et al., 1988; Thompson et al., 1985). However, thedesign and implementation of such a strategy can never be successful unlessservice marketers first determine how the quality and value of their servicesare perceived by customers.Understanding of customer perceptions of service quality and value isespecially important to international service firms because such perceptionsare susceptible to cultural differences. In countries with different cultures,tastes and living habits, US service companies need to be aware and adaptiveto local needs (Hofstede, 1980; Prahalad and Doz, 1987). Hence, the culturaldistance between the USA and the foreign host country would be a major

26 concern for foreign investment of US service firms (Li and Guisinger, 1992).This paper investigates the cross-cultural implications of customerevaluations of US fast-food services. The US fast-food restaurant industry isone service sector whose growth and internationalization have lately becomesignificant (Chaudhry, 1995; Kramer, 1995a; Palmer, 1985; Tiegs, 1980;Woodman, 1980). The US domestic and Canadian markets have becomesaturated and have primarily been characterized by competition for marketshare rather than new growth (Restaurants and Institutions, 1994). Fast food companies are looking to international markets for growth opportunities.American fast food restaurant chains have been expanding more rapidly intoforeign markets than domestically, with a 13.5 percent international salesgrowth reported in 1994, compared to 7 percent in domestic sales growth(Kramer, 1995a). With such a maturing and highly competitive domesticmarket, fast food chains such as McDonalds (Paul, 1994), Wendys(Kramer, 1995b), KFC (Lee, 1995), and Dominos (Green, 1993) haveexpanded operations to many foreign countries. In addition to the traditionalsegments of hamburgers, pizza and chicken, international growthopportunities in other food categories such as ice cream (e.g. Baskin-Robbins) and donuts (e.g. Dunkin Donuts) have also been pursued(Restaurants and Institutions, 1995). The potential in fast food franchising ininternational markets has also been identified for smaller food servicecompanies (Nations Restaurant News, 1992; 1995). Faced with less competition and national economic or market reforms, USfast-food chains have been attracted to countries like Hong Kong (Lan andKhan, 1995), Belgium (Wolf, 1994), Poland (Martin, 1994), Brazil (Bruce,1994), and China (Miu and Leung, 1994). South Korea is also one of themany countries these US fast-food companies have entered successfully. Thesharp rise in personal income in recent years has stimulated the performanceof numerous fast food chains in this country (Business Korea, 1994).Nevertheless, the South Korean culture can be considered quite apart fromthe US environment in which these firms were originally conceived. Thefollowing study examines the US and Korean fast food customers,comparing their expectations and perceptions of an international fast-foodchain. Implications of the results are discussed for US fast-food servicefirms in international marketplaces.

27

Developing Sustainable Food Supply Chains

B. Gail Smith Summary:
This paper reviews the opportunities available for food businesses to encourage consumers to eat healthier and more nutritious diets, to invest in more sustainable manufacturing and distribution systems and to develop procurement systems based on more sustainable forms of agriculture. The important factors in developing more sustainable supply chains are identified as the type of supply chain involved and the individual business attitude to extending responsibility for product quality into social and environmental performance within their own supply chains. Interpersonal trust and working to standards are both important to build more sustainable local and many conserved food supply chains, but inadequate to transform mainstream agriculture and raw material supplies to the manufactured and commodity food markets. Cooperation among food manufacturers, retailers, NGOs, governmental and farmers' organizations is vital in order to raise standards for some supply chains and to enable farmers to adopt more sustainable agricultural practices. In most of the world, eating habits have long been dependent on a mixture of local production and imported conserved foods. More recently, manufactured foods have become an important part of many people's diets, and many of the world's staple foods are now traded internationally as commodities. Although goods, money and (less so) knowledge and influence flow along all supply chains, the number and complexity of transactions along an individual chain, and therefore the capacity for any actor to exert a strong influence on others, varies enormously with the type of chain or network involved (table 1). Local food supply chains are often considered to be relatively sustainable (e.g. Nestle 2002; Sustain 2002) partly because they support 'mixed' and organic farming and reduce emissions and externalities created by longdistance transport and high 'food miles' (Jones 2001; Pretty et al 2005). Local food supply chains are also valued for their capacity to generate rural enterprise and regenerate rural communities, break agribusiness monopolies and create spiritual links between man and nature. Food conservation is important for reducing losses and degradation during transport from rural areas to urban populations and allowing people to enjoy a nutritious and

28 varied diet throughout the year. Stable food products created by drying, salting, smoking and fermenting have been stored and traded outside the local area in 'conserved' food supply chains for thousands of years. Canning, pasteurization and freezing increased the variety of foods that could be conserved, and more recent technologies such as chilling, aseptic and controlled atmosphere packaging (combined with rapid inexpensive transport) have enabled many 'fresh' fruit and vegetables (Wu Huang et al 2004) and dairy produce to be traded as 'conserved food', with considerable impact on national and international patterns of agricultural production and trade. Manufactured foods usually contain ingredients from different origins and production systems. Although some may be derived from simple supply chains and others may involve many transactions between farmers and manufacturers, it is probable that the total number of the transactions involved in any one product is high. Some ingredients (e.g. herbs, spices, dried fruit) may make up only a tiny proportion of the finished product or may be required only for short product life of a particular variety of product (e.g. bakery product, sauce, meal) and major ingredients may be derived from dynamic international supply networks that overlap with those of business competi tors; vegetable oils, for example, are often mixed or substituted to compensate for seasonal unavailability or variation in quality and price. Mixing and substitution along complicated dynamic supply networks may limit not only traceability but also the flow of information and influence along the chain. Traceability, knowledge and influence only trickle along many commodity supply chains, where foods, bought and sold to standard specifications worldwide, are often bulked for low costs and ease of transport and storage. Commodities are usually simple conserved foods that can be stored and traded internationally, often using longdistance sea transport. Prices are dependent on market mechanisms and may be subject to future trading. Since production often exceeds demand for traditional food commodities, prices tend to be low, unstable and declining (FAO 2004), making commodity-based food stuffs (e.g. bread, sugar, rice and beverages) available to consumers from all sectors of society, but having catastrophic impact on the lives of farmers when prices fall dramatically. Several, often contradictory, trends have emerged in the last 20-40 years. The removal of trade barriers, relatively inexpensive transport and technical advances in food conservation have encouraged international standardization.

29

Exploring industry perspectives on implementation of a provincialpolicy for food and beverage sales in publicly funded recreationfacilities
Suzanne Vander Wekken, Susanne Srensen, John Meldrum, Patti-Jean Naylor Summary: The global obesity epidemic threatens to skyrocket rates of chronic disease and hasleveraged interest around the influence of food environments and settings on diet and health [1,2]. Prominent obesity prevention strategies, including that of the World Health organization, emphasizethe importance of multi-sectoral involvement in creatingenvironmental change [1,3]; engaging the private sector in policy efforts to limit the prevalence of non-nutritiousfoods while encouraging healthier options in public settlingsis imperative [27]. One of the most frequently citedCanadian health policy recommendations is the need toinitiate partnerships between sectors and to push highernutritional standards in facilities for recreation and sport[8]. The snack and beverage industry have well-paved inroadsinto food sales in these venues [9], supported by acomprehensive knowledge of consumer demand and productmarketing. As public health pursues action in these gettings, an understanding of the private sector perspectiveis imperative.The BC Healthy Living Alliance developed the HealthyFood and Beverage Sales in Recreation Facilities and LocalGovernment Buildings initiative (HFBS) as a response tothe identified need to address food provision and to supportimplementation of the new Guidelines. The HFBS initiativeprovided seed funding, technical support and resourcesto facilitate the voluntary adoption of the Guidelines inpublicly funded recreation facilities. At both the provincialand local level there was recognition that interactionwith the snack and beverage industry stakeholders was akey element of transition success since those that manufacture,supply and distribute food and beverage productsplayed a key role in defining the choice of products servedthrough vending machines, concessions and programs [17].Acknowledging this, industry members were invited tocontribute to the development of the planning toolkit forfacilities participating in the HFBS initiative and a sectionon the initiative web page was dedicated specifically forindustry [18]. As the initiative progressed, it became evidentthat there was a critical need for those involved inimplementation to talk with industry partners, particularlyvendors, to better understand their perspectives and thecontext in which they were operating.

30 Therefore the purposeof this study was to explore industry perspectiveson the transition to healthier food and beverage sales inpublicly funded facilities. Specifically, we wanted to knowmore about their: (a) awareness and use of the provincial(state level) Guidelines and implementation supports; (b)challenges encountered in the transition to healthier products;and (c) thoughts on future trends and opportunitiesin the snack and beverage business. We invited 60 food and beverage companiesoperatingin the snack and beverage industry in BC to participate in an interview. This list of contacts was provided by theBritish Columbia Recreation and Parks Association, whofunded the study as part of a wider evaluation of theHFBS initiative. We emailed each contact with and provideda description of the study, and inviting them toparticipate and share their experiences and challenges inaddressing the new Guidelines. Our goal was to interviewstakeholders that represented different sectors ofthe industry. Sixteen representatives agreed to participateand two indicated they would not be able to (total30% response rate). Participants included manufacturers(who created or produced snack and/or beverages, n = 7out of 26, 27%), suppliers (who stored products and interfacedbetween manufacturers and distributors, n = 3 of 6,50%) distributors and vendors (who delivered and stockedsnack and/or beverages, n = 5 out of 22, 23%), and oneadvocacy and education organisation that representednon-alcoholic beverage manufacturers (n = 1 of 7 industryrepresentatives, 14%). Participants had expertise in the areas of production, marketing and retail of packagedfoods and beverages through vending machines andother commercial and publicly supported food sales outletsincluding recreation facilities, government buildingsand public schools in BC. We obtained ethical approval from the Universityof Victoria Human Research Ethics Board. We thenrecruited participants, gathered signed consents and conductedsemistructured telephone interviews, using a setof pre-established questions. We asked participants todescribe their perspectives and experiences related tothe provincial Guidelines and the transition to healthierfood and beverage sales in recreation facilities. Weasked how they had used the Guidelines and the relatedsupport services (i.e. BNFL and Dietitian Services) andexplored future market trends, opportunities and needswithin the snack and beverage industry. Interviews lastedapproximately 25 40 min and responses were recordeddigitally. the Nutritional Guidelines for Vending Machines.

31

Development of eco-efficiency indicators for the Canadian food and beverage industry
Dominique Maxime, Miche`leMarcotte, Yves Arcand
Summary: Agriculture and Agri-Food Canada is developing eco-efficiency indicators (EEIs) in an effort to build a framework for a sustainable production system for the Canadian food and beverage industry (FBI). This paper presents the rationale and the framework of the project currently under development addressing the following environmental issues: energy use, emission of greenhouse gases, water use and wastewater generation, organic residues, and packaging residues. Proposed EEIs are intensity indicators and recycling ratios, and include environmental pressure modulators. They will be developed based on collected data and estimated impact levels, and reported by FBI sub-sector, geographical location, and establishment size. Objectives and methodologies are outlined. Problems on getting quality and reliable data on selected environmental issues are emphasized. The methodology will be published in 2005 and first results are due by 2008. Benchmarking and linkage to specific processing operations and management practices will help regulators and industries in promoting and implementing cleaner production initiatives and will lead to operational cost savings, product innovation, and enhanced competitiveness.2005 Elsevier Ltd. All rights reserved. We have defined a limitednumber of EEIs that address the most significantenvironmental effects of the FBI for an environmentalreporting framework that is standardized, simple andreliable and that can be used at both the macro (AAFC)and the micro level (management and operation of anindividual establishment) [9]. Such a framework is in linewith that of the Global Reporting Initiative (GRI) [10],and will offer, in addition, a customized sectorial toolbetter fitted to FBI specificities. The EEIs will make itpossible to set personalized eco-efficiency objectives[8,11] achievable through the implementation of goodoperating or management practices and cleaner production,in an effort to decouple industrial productionfrom natural resource consumption and waste generation,and to do so in a positive fashion.With respect to the information on the data collected,the methods used will be based upon those of the datainventory step of an LCA [12]. The advantages of thisapproach are two-fold: first, a high level of informationwill be provided on the data to ensure transparency;second, it will be possible in the future to

32 extend theanalysis using an LCA approach currently being developedin Canada, specifically by integratingagriculture-related data collected by AAFC. The following sections detail certain specificities foreach indicator. In general, a series of five standardizedsteps is followed to develop the indicators: identificationof the objective of the indicator; selection ofthe system boundaries where inputs and outputs will beconsidered; selection of the reporting period (e.g.annually); identification and quantification of allrelevant inputs and outputs; and calculation, strictlyspeaking, of the indicator.Where necessary, reference is made to a physical unitof production in order to facilitate intra-sectoralcomparison within the FBI. The indicators that aredeveloped are first tested, and evaluated using existingdatabanks. The indicators are aggregated and reportedin accordance with an FBI coverage plan that includesthree classes of variables as described in Table 1. Inorder to make up for a potential lack of data,establishments will be surveyed in accordance with thesame coverage plan. A series of in-plant audits ordiagnostics is also planned to measure parameters orgenerate data that could not be obtained throughsurveys. Data from these audits are essential to validatethe indicators and could also be used in the developmentof auxiliary indicators to improve precision at the levelof specific processes, such as water use for sanitationand gaseous emissions from cooking processes.The indicators are reported according to the physicalunit of production. They make it possible to comparetypical processes within a sector, over time, andaccording to coverage plan variables. Improvement inthe performance of a given sector or the best performancesfrom region to region in the same sector can behighlighted. Because of inherent differences among allsectors of activity, intersectoral comparisons of theindicators are not recommended, except where indicatorsare not based on the physical unit of production.Inter-sectoral comparison may, however, be possible bycalculation of indicators relating to an economic unit ofproduction. The indicators will have to be reportedannually in order to mitigate the effect of seasonalmanufacturing variability in certain FBI sub-sectors. The eco-efficiency indicator project for the FBI hasbeen underway since mid-2003. It is in keeping with thecommitment by the Government of Canada andAgriculture and Agri-Food Canada to take actions thatpromote sustainable development, and it is the food andbeverage industrys first national effort toward this goal.