AGP Executive Report

Culinary Tribute: Indian chef K. Damodaran, known as Chef Damu, has died at 72. The Padma Shri recipient and Guinness World Record holder mentored generations of chefs and brought cooking to millions through television. Beverage Deals: PepsiCo has secured an 11-year Taco Bell drinks deal as KFC prepares to switch to Coca-Cola at its 3,700 U.S. restaurants in January—a symbolic setback for Pepsi’s cola brand. New Products: Pepsi Zero Sugar Gingerbread is back in UK stores for the festive season, including Aldi, in a limited run through December 31. Venue Dining: Atlanta’s State Farm Arena is adding two local restaurant vendors and nearly 30 food and drink options, including mocktails and dirty sodas. Industry Outlook: Food leaders at IGD’s UK conference urged closer industry-government action on food security, public health, workforce needs and sustainability. Investment: Niagara Bottling has opened a $141 million Kentucky facility expected to create 60 jobs, expanding beverage production capacity.

Consumer Demand: U.S. Halloween candy sales fell 6.7% year over year through Oct. 17, as high prices and squeezed household budgets dampened purchases. Packaging: Beer and soft-drink makers won a six-month extension to meet India’s aluminium-can certification rules. Beverage Deals & Investment: PepsiCo renewed its Taco Bell partnership through 2036, while KFC is switching its U.S. drinks to Coca-Cola. Niagara Bottling opened a $141 million Northern Kentucky facility expected to create 60 jobs. Food Security: Sabah set priorities to support farmers and fishers, improve infrastructure and build climate resilience, targeting a rise in rice self-sufficiency from 22% to 40% by 2030. Food Safety: Nigeria’s NAFDAC uncovered a Lagos site stocked with empty liquor bottles suspected of being used in counterfeit-drink production. Trade: A U.S. food importer is challenging 50% tariffs on Canadian goods in court, raising another potential hurdle for cross-border food businesses.

Food Security: Sabah is targeting a rise in rice self-sufficiency from 22% to 40% by 2030, alongside more local production of vegetables, meat, eggs and fish. Its plan prioritizes farmer support, infrastructure, technology, market access and climate resilience. Consumer Demand: U.S. Halloween candy sales fell 6.7% year over year through Oct. 17 as high living costs squeezed spending; smaller bags were the only size gaining sales. Beverage Deals: Coca-Cola has taken over KFC’s U.S. beverage business from PepsiCo, which has renewed its Taco Bell partnership through 2036. Manufacturing: Niagara Bottling opened a $141 million Kentucky facility, while Gujarat Alkalies began building a food-grade phosphoric acid plant designed to double its capacity and reduce India’s reliance on imports. Food Policy: Calley Means, a senior adviser associated with the MAHA agenda, has left the Trump administration amid frustration over stalled efforts to define ultraprocessed foods.

Coffee Strategy: Coca-Cola’s $5 billion Costa Coffee bet has yet to make it a major coffee-market player. Costly vending machines and competition from Starbucks and PepsiCo have limited the brand’s reach. Packaging Pressure: India extended aluminium-can certification deadlines by six months as suppliers struggle to meet rising demand and Middle East conflict clouds supply. Crown Holdings and Ardagh also reported stronger beverage-can demand. Food Safety: Nigeria’s NAFDAC found and destroyed more than 100 sacks of empty liquor bottles in Lagos, citing suspected use in counterfeit drinks. Agri-food Investment: The European Investment Bank is providing Moldova €150 million to modernize farms, processing, storage and logistics, with the goal of improving access to EU markets. Brand Deals: PepsiCo and Taco Bell renewed their partnership through 2036, even as KFC switches its U.S. drinks supplier to Coca-Cola. Beer Outlook: Heineken warned that weight-loss drugs could put pressure on beer sales and pub trade.

Packaging Demand: Crown Holdings raised its 2026 outlook after global beverage-can shipments climbed more than 6% in the third quarter, led by double-digit growth in Asia. Beverage Deals: PepsiCo renewed its Taco Bell supply pact through 2036, even as it plans to close a Tennessee bottling plant affecting 112 workers. Food Innovation: UK challenger brands showcased new products at SIAL Paris as the country pursues a £35 billion food and drink export goal; Symrise also invested US$31 million to expand chicken-ingredient production in France. Market Rules: Coca-Cola, Nestlé and Danone will revise plastic-bottle recycling claims following EU scrutiny. In Sarawak, about 58,000 oil-palm smallholders risk losing EU market access without land titles to meet deforestation rules. Consumer Shifts: Heineken warned that weight-loss drugs may dampen beer demand, while shoppers are increasingly scrutinizing high-protein claims. Sales: Canadian food and beverage retailer sales rose 1.1% in August; Guinness Nigeria reported nine-month profit up 53% to ₦40.7 billion.

Sugar Tax: French food and farming groups are resisting a proposed levy on all sugary foods, beyond carbonated drinks, as drought-hit beet growers face a sharply smaller harvest. Beverage Shifts: PepsiCo is closing a Tennessee bottling plant amid falling soft-drink volumes. Meanwhile, KFC’s U.S. switch to Coca-Cola ends a decades-long Pepsi tie-up, while Taco Bell has extended its PepsiCo deal through 2036, with new drinks planned. Market Pressures: A major UK drinks supplier to Tesco and Asda has entered administration after 27 years, putting jobs and supply at risk. Rising fuel and freight costs are also squeezing food producers, including New Zealand asparagus growers. Food Industry Outlook: Nestlé’s sales beat forecasts as volume growth picked up, and the company plans another $1 billion investment in Mexican manufacturing. Separately, nutrition experts are urging the White House to define ultra-processed foods, a debate with potential implications for food policy and product reformulation. Restaurant Trends: U.S. consumers are shifting more pizza spending from grocery aisles to quick-service chains, while solo dining continues to grow across restaurant formats.

Beverage Industry: PepsiCo is closing another U.S. bottling plant, affecting 112 workers, as it faces declining North American beverage volumes. UK drinks supplier Amber Beverage Group UK has also ceased trading after nearly 27 years, with administrators appointed after losses topped £21.1 million. Manufacturing & Growth: Malaysia’s Orgabio says two new beverage-premix lines are running at about 70% capacity, while Nestlé plans another $1 billion investment in Mexican manufacturing. Kerry reported 4.1% volume growth in the third quarter and maintained its full-year earnings outlook. Food Innovation: Cultivated-meat technology startup Pythag Tech raised $4.25 million to use AI and lab experiments to improve production economics. Local Product Protection: Quezon province in the Philippines is seeking geographical indication status for lambanog, its coconut-based liquor, to protect its heritage and support local producers. Consumer Pressure: Food remains the expense Canadians most often say has risen the most, while higher transport costs are squeezing grocery budgets.

Local Spirits: Quezon province is seeking Geographical Indication status for lambanog, its coconut liquor, to protect its heritage and open new opportunities for local producers. Packaging Investment: Visy is putting $30 million into its Smithfield, Australia, factory to boost cardboard production for food and beverage brands. Beer Market: Carlsberg is preparing a potential $700 million listing of its Indian unit, reportedly as an offer for sale. Beverage Deals: KFC plans to replace Pepsi with Coca-Cola at 3,700 U.S. restaurants in 2027, ending a partnership of nearly 40 years. Food Regulation: India’s food regulator has questioned Nestlé over a digestion claim for Lactogen Pro 1, adding to scrutiny of children’s product marketing. Trade Costs: Canadian food importer Gellert Global is challenging U.S. tariffs of up to 50% on certain Canadian goods, citing their impact on imports including cheese.

Foodservice Outlook: Technomic’s 2027 forecasts point to continued restaurant contraction in the U.S. and cost-driven business redesign in Canada, as operators contend with inflation and cautious spending. Beverage Industry: PepsiCo immediately shut its Knoxville bottling plant, cutting 112 jobs, after reporting a 2% drop in North American beverage volume; the company says it is sharpening its focus on soft drinks. Supply-Chain Resilience: Food businesses are widening climate plans beyond emissions to protect vulnerable supplies such as cocoa and rice, with industry leaders warning that ecosystem health underpins supply-chain resilience. Market Competition: Taiwan blocked Grab’s proposed $600 million purchase of Foodpanda’s local delivery business, ruling that competition risks outweighed the benefits. Consumer Prices: UK food and non-alcoholic drink inflation held at 1.3% in September, while overall inflation climbed to 3.5% as fuel costs rose. New Products: Tim Hortons has brought steak wraps and bowls to Canadian menus and launched limited-time energy drinks made with Monster Energy Zero Ultra.

Food Innovation: AI is helping manufacturers predict flavour combinations, shorten development cycles and tailor products to regional tastes, while keeping human expertise central. Packaging & Production: Orora marked 50 years at its Sydney can plant after a $114 million expansion; Silgan also agreed to acquire Trivium in a $3.4 billion packaging deal. Trade Pressure: A U.S. importer is challenging 50% tariffs on Canadian goods, saying cheese duties could cost it $40 million a year and disrupt supply relationships. Food Safety: Nigerian lawmakers called for tougher action against counterfeit and adulterated foods and drinks; the FDA separately found adulteration in seven imported lemon-juice samples. Market Shifts: KFC is replacing Pepsi with Coca-Cola in the U.S. after nearly four decades, while beverage brands increasingly use partnerships and cultural ties to spark consumer interest. Supply Risks: India’s drought-hit maize supplies are intensifying competition between poultry producers and ethanol makers, sharpening concerns about food security.

Agriculture & Trade: Sarawak’s 39,122 pepper smallholders are benefiting from premium export prices, but officials say higher prices than rival producers make quality, traceability and value-added products key to staying competitive. Consumer Demand: In a six-market wellness survey, 59% of the most wellness-focused consumers ranked authenticity above price, raising the bar for brands’ health claims. Beverage Restructuring: PepsiCo closed its Knoxville bottling plant, cutting 112 jobs as North American beverage volumes weaken; KFC’s switch from Pepsi to Coca-Cola after nearly 40 years adds pressure on Pepsi’s foodservice business. Sustainability: A new Ohio facility will turn dairy production waste into biogas for a neighboring Danone factory. Environmental Risk: Diageo apologized after a suspected caustic soda leak killed fish and wildlife in a Scottish stream; a two-kilometre stretch could take years to recover.

Beverage Shake-Up: KFC will replace Pepsi with Coca-Cola at its U.S. restaurants from January 2027, ending a partnership of nearly 40 years. Trade: New Zealand wine exporters gain improved access to India as a free-trade agreement takes effect, with eligible tariffs set to fall from 150% to 50% or 25% over a decade. Growth Plans: Nestlé committed $1 billion to expand in North America and expects fruitier coffee flavors and protein pairings to shape food and drink choices in 2027. Tropical Smoothie Cafe also signed a deal for 40 new locations across parts of the U.S. Northeast. Cocoa Processing: Nigerian firm Johnvents is working to revive a long-running cocoa plant and expand local processing, aiming to capture more value beyond raw-bean exports. Food Safety: Illegal dumping beside Yuma County farm fields is forcing growers to set aside crops when trash creates potential contamination risks. Grocery Market: September’s Grocery Gauge fell to 52.2, as sluggish sales, rising costs and weaker visits weighed on the sector.

Supply & Investment: Indonesia’s sugar refiners warn refined-sugar supplies could run short by early 2027, urging faster raw-sugar import permits. Nestlé has pledged another $1 billion to expand production in Mexico, bringing its North American investment commitments to $2 billion. Restaurant Shake-ups: KFC will replace Pepsi with Coca-Cola across US locations from 2027, ending a decades-long partnership. Starbucks says its staffing-focused service model helped lift comparable sales 7.9% in its latest reported quarter. Struggling Crumbl is testing a $1.99 cookie-and-soda deal as stores close and sales sag. Food Policy: US officials have revived discussions on defining ultra-processed foods, potentially renewing debate over warning labels. India’s food regulator has issued notices to major manufacturers over product claims and labelling. Restaurant Tech: Olo is launching a direct-ordering app for customers of restaurant chains on its platform, aiming to cut costs compared with third-party delivery apps.

Beer Market: Corona Extra remains the world’s most valuable beer brand at $13.9 billion, while several major US lagers lost value as growth shifted toward brands in Latin America, Asia and Europe. Beverage Deals: KFC is replacing Pepsi with Coca-Cola at US restaurants, ending a nearly 40-year partnership; in Australia, Samuel Smith & Son will distribute Seppelt wines nationally from Oct. 21. Product Launches: Suntory has added two iced coffee flavours, while Nigeria’s Rite Foods is expanding into malt drinks with LIDA Malt Classic. Food Regulation: India’s FSSAI has issued notices over alleged misleading product claims and proposed banning added sugars in infant foods. Packaging: Orora marked 50 years of can production at its Revesby site, where a new line is helping meet demand for aluminium beverage cans. Food Prices: Nigeria’s imported food price inflation slowed to 9.19% in September, its lowest pace since March.

Coffee & Cacao: The University of Hawaiʻi and Clemson will lead a new U.S.-funded research program, receiving $8 million in its first year to help farmers in the U.S. and abroad improve production and protect crops from disease and drought. Restaurant Drinks: KFC will switch its 3,600 U.S. restaurants from Pepsi to Coca-Cola starting in January. Analysts estimate the account represents about $500 million in annual PepsiCo sales, though the companies haven’t disclosed the deal’s value. Food Trade: Jordan’s food sector meets more than 62% of domestic demand and exports reached JD823 million in 2024, according to a new industry strategy. Oman, meanwhile, brought its first national pavilion to SIAL Paris, showcasing seven food companies. Food Regulation: India’s FSSAI issued notices to major manufacturers over labelling and advertising claims and proposed banning added sugar in infant foods. Market Watch: PepsiCo reported an 11% jump in Asia-Pacific snack volumes in its latest quarter, while global snack volumes rose 4%.

Food Safety: Maharashtra’s FDA has named officials from Reliance and Blinkit in a probe into allegations that expired food re-entered the supply chain; five establishments’ licences were suspended. Separately, India’s FSSAI issued notices to Nestlé India and HUL over alleged misleading product claims and proposed banning added sugar in infant foods for babies up to six months. Beverage Deals: KFC will replace Pepsi with Coca-Cola at about 3,700 U.S. restaurants from January 2027, ending a partnership of nearly 40 years. Global Trade: Pakistan is pitching rice, processed foods, salt and beverages at SIAL Paris, with 37 companies in its pavilion, while a first rice festival in Budapest targeted Hungarian buyers. Coffee and Cacao: The University of Hawaiʻi at Mānoa and Clemson will lead a U.S.-funded research program to help farmers improve production and strengthen global supplies.