Food and Drink Business Europe

April/May 2010

Tunnock’s – Combining traditional values with modern technology

Food & Drink Business Website:

www.foodanddrinkbusiness.eu

C o n t e n t s

- 40 I NTERNATIONAL T RADE

- 3 N EWS B RIEF

UK food and drink exports reach record levels.

Business news from the UK and international markets.

- 41 B REWING - 6 B REWING & D ISTILLING

PAGE 3

Geoff Eaton, ce, Uniq.

Developments in the global alcoholic drinks sector.

Carlsberg stays ahead in challenging market.

PAGE 33 Peter Lauritzen, ce, Arla Foods UK.

R EGULARS Bottling & Packaging . . 9, 29, 30, 53 & 56

- 6 M ERGERS & A CQUISITIONS

Information Technology . . . . . . . . . 17

PAGE 37

Control & Automation . . . . . . . . . . . . . 20

Robert Wiseman, ce, Robert Wiseman Dairies.

Coverage of British and international deals.

PAGE 5

- 11-19 C OVER S TORY

Kate Allum, ce, First Milk.

Tunnock’s – Combining traditional values with modern technology.

Processing & Manufacturing . 38, 39, 43-45

Materials & Ingredients . . . . . . . . . . 46

Tea-time traditions boosted by technology.

Logistics & Distribution . . . . 42, 47-51

PAGE 41

Jorgen Buhl Rasmussen, ce, Carlsberg.

Managing Director: Colin Murphy Editor: Mike Rohan Sales Director: Ronan McGlade

- 23 & 31 S OFT D RINKS

Advertising: Susan Doyle Senior Sales Executive: Paul Lees

Britvic continues to outperform £8.5b UK soft drinks market.

Production Manager: Susan Doyle Production Assistant: Jackie Kinch

PAGE 11

Boyd Tunnock, md, Tunnock’s.

AG Barr sparkles as it breaks £200m sales barrier.

Food & Drink Business Europe is published by Premier Publishing Limited, 51 Parkwest Enterprise Centre, Nangor Road, Dublin 12.

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- 33 & 37 D AIRY £320m capital investment by UK dairy processors.

Sustained capital investment pays dividends for Robert Wiseman Dairies.

PAGE 23

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Paul Moody, ce, Britvic.

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FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

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N N E E W W S S Uniq’s Transformation to UK Focus Delivers Improved Performance Following the disposal of its overseas operations, Uniq has successfully completed its transformation into a focused UK business. Indeed, the streamlined UK business, centred on desserts and food to go, is now in profitable growth, having achieved an operating profit of £4.4m in the year ended December 31 last compared with a prior year loss of £1.3m.

However, at group level Uniq reported a loss before tax from continuing operations of £18.5m significantly impacted by £11.3m of pension related finance expense. Revenue from continuing operations was £287.2m.

Uniq raised £60.9m from the sale of its French operations and since the start of 2010 has completed the £18.0m sale of the Netherlands businesses and sold of its German and Polish businesses for £25.7m. The net proceeds from disposals are available to fund a planned capital investment programme in the UK. “We have successfully completed Uniq’s transformation into a focused UK operation.

We have also agreed in principle an innovative long term pension framework with the pension trustee which is subject to clearance by the Pensions Regulator.

If cleared, this will facilitate our strategy to build a UK focused convenience food business with the quality and scale to generate sustainable growth. The outcome of the regulatory process is likely to have a fundamental impact on the future of the pension scheme and shareholder value,” says Geoff Eaton, chief executive of Uniq.

Geoff Eaton, chief executive of Uniq.

Interim Profit Surge at ABF Associated British Foods has increased operating profit by 29% to £336m and profit before tax by 80% to £320m on revenue ahead by 10% to £4.796b for 24 weeks ended 27th February 2010. Grocery revenue increased by 4% to £1.597b and profit rose by 53% to £95m due to a strong underlying profit performance from all of the group’s UK grocery businesses, reflecting the benefits of restructuring work undertaken last year, and a much improved contribution from the US bottled oils operations all of which more than offset a charge for manufacturing reorganisation at Twinings.

Profit from sugar was up 39% to £85m on revenue of £931m driven by a strong performance from the UK, benefiting from market stability following completion of EU sugar regime changes, and by the recovery of domestic sugar prices in China.

The sale of the Polish sugar business was completed in November 2009 resulting in a profit of £33m. Ingredients achieved a revenue increase of 7% over last year to £509m and operating profit rose by 18% to £47m.

B B R R II E E F F ue the business as sole agent of Unibake’s products.

Northern Foods to Close Ethnic Cuisine Factory UK convenience food group Northern Foods is to close its Ethnic Cuisine ready meals facility in Swansea, Wales, after failing to agree terms with the anchor customer Sainsbury.

Northern Foods acquired the struggling Swansea factory in November 2007 and has continued to invest in the site to improve its infrastructure and capabilities. However, recent negotiations could not secure a viable return for current and anticipated future investment, according to Northern Foods.

Bakkavor Starts Recovery The major restructuring activity undertaken in 2008-2009 has helped Icelandic food group Bakkavor to achieve a significant profit turnaround in its last financial year with a loss of

Agust Gudmundsson, executive of Bakkavor.

George Weston, chief executive of Associated British Foods.

Restructuring at Lantmannen Unibake Swedish bakery group Lantmannen Unibake will focus its investment in Europe and North America after restructuring its business in Asia. In Japan, Lantmannen Unibake has sold 51% of its Japanese sales company to Nichirei Foods, which is one of the largest distributors of frozen foods in Japan. Lantmännen Unibake has also sold its Korean sales company to the local management team, who will contin-

Further Progress By Greggs Greggs, the UK’s largest retail baker, increased operating profit by 9.3% to £48.4m on group sales up by 4.8% to £658m in the 53 weeks ended January 2nd 2010. Like-for-like sales grew by 0.8% and pre-tax profit excluding exceptional items rose 8.0% to £48.8m.

During the year, Greggs streamlined its business, reorganising its previous 11 bakery divisions into seven new retail regions, while its 10 bakeries, two distribution centres, transport teams and its central savoury production facility were organised into a single supply chain function to concentrate on supporting the planned growth in the business whilst delivering significant efficiency improvements. Greggs added a net 10 new shops to its retail estate during 2009, bringing the total to 1,419 outlets at the year-end.

chief

£11.8m compared with a £154.2m loss in 2008. EBITDA (excluding restructuring costs) rose 24.6% to £135.1 million in 2009 and sales grew 2% to £1.65b. However, like-for-like sales growth on a constant currency basis fell 2% during the year Benefiting from volume uplifts due to increased promotional activity and successful new product launches, Bakkavor’s UK fresh prepared value sales, which account for 75% of group turnover, increased in line with the overall market growth of 5% year on year.

A key priority since late 2007 has been to focus on driving operational efficiencies and, following an extensive period of

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

restructuring, Bakkavor is now better placed to manage ongoing trading pressures as well as adapt to current and future market condition. The restructuring involved closing 11 underperforming manufacturing sites and consolidating production across sites in both the UK and France in order to optimise capacity and reduce costs.

Ken McMeikan, chief executive of Greggs.

Interim Sales and Profit Rise at Glisten UK snacks and confectionery manufacturer Glisten, which is being acquired by Finnish food group Raisio, has published its last results as an AIM listed company. For the six months ended December 31st 2010, Glisten’s adjusted operating profit rose by 7% to £3.1m on turnover up 10.2% to £39.0m 3

N N E E W W S S with like-for-like sales ahead by 10%. First half pre-tax profit rose to £2.22m from £1.98m in the previous year.

The Real Good Food Company Returns to Profit The Real Good Food Company has returned to profit after restructuring, converting a pretax loss after exceptional items of £421,000 in 2008 into a profit of £1.6m for the twelve months ending December 31st last. Sales at the UK bakery, sugar and ingredients group slipped 1% to £215.6m in 2009, due chiefly to the weak market for bulk sugar sales in the period leading up to the final phase of EU Sugar Regime changes. However, improved sales were achieved in retail and specialist sugars, and by the group’s bakery ingredients business, Renshaw, and bakery division, Hayden’s.

Pieter Totte, chairman of The Real Good Food Company.

Transitional Year For Lindt & Sprungli Despite the extremely difficult market environment, Swiss confectionery group Lindt & Sprungli achieved organic sales growth of 2.3% in 2009.

However, because of currency related factors, group sales fell by 1.9% to SFr2.52b (Eur1.76b) and group (EBIT) tumbled by 26.7% to SFr264.8m with an operating profit margin of 10.5%. Net profit dropped 26.2% to SFr193.1m, equivalent to a return on sales of 7.6% and a return on invested capital of 13.1%, and the group’s balance sheet remains strong.

According to Lindt & Sprungli, the overall chocolate market declined in volume for the first time in ten years. As the economic crisis spread, consumers turned increasingly to 4

low-cost products and private labels. Wide currency fluctuations and record high commodity prices, especially for cocoa beans, together with liquidity shortages among distributors and a sharp decline in airline passenger numbers in the dutyfree sector had an adverse impact.

Strong Results From Hilton Food Group UK-based Hilton Food Group, the leading specialist meatpacking business supplying major international food retailers in ten European countries, increased operating profit by 7.5% to £21.7m and pre-tax profit by 16.2% to £20.1m on turnover up by 13% to £826m in the 53 weeks ending January 3rd 2010. Volume and turnover growth were 14% and 11% respectively on a 52 weeks basis.

The group’s businesses in Western Europe, covering the UK, Ireland, Holland and Sweden, continued to make progress with volume growth of 9.4% and turnover up 11.2% to £755.7m and operating profit advancing from £18.9m to £ 19.4m.

Latvian Grain Company to Expand Dobeles Dzirnavnieks, the largest grain processor in Latvia, is to invest Eur3.1m in new facilities this year, making it the most modern and efficient mill in the Baltic States. Dobeles Dzirnavnieks plans to expand production volume by 30% and improve its competitiveness in local and export markets.

€8m Romanian Bakery Investment Belgian baker La Lorraine and its joint venture partner, Romanian frozen foods distributor Macromex, are to invest Eur8m in the construction of a new bakery in the north-west of Romania. Macromex also plans to establish a distribution centre near to the bakery with both facilities due to come on stream in 2011. La Lorraine operates six bakeries in Belgium along with a joint venture business in the Czech Republic.

B B R R II E E F F Flat Interim Profit at Finsbury Food Group Profit at UK cakes and bakery products manufacturer Finsbury Food Group has remained static during the first 28 weeks to January 2nd last. Profit before tax and significant non-recurring and other items was £1.8m on sales down by 7% to £82.9m. Like-for-like sales, excluding the effect of acquisitions, decreased by 5.2% as the UK cake market continued to decline.

However, comparisons with the previous year are misleading as the 2008 figures include a capital gain of Eur90.3m relating to the sale of its Pick & Mix confectionery business but do not include the acquisition of Swedish baker Lantmannen Farskbrod. Indeed, turnover on a like-for-like basis fell by 8.8% during 2009 with exchange rate factors accounting for over half of this reduction. Fazer’s operating profit, excluding profits and losses from disposals, amounted to Eur45.5m in 2009 against Eur44.6m in 2008.

Revenue Down at Aryzta

John Duffy, chief executive of Finsbury Food Group.

Profit Drops at Tereos Tereos, Europe’s third largest sugar processor, has reported a 62% drop in net profit to Eur76.8m in the year ending September 30th 2009, although the previous year’s result included exceptional income for surrendering part of its sugar quota under the reformed EU sugar regime. Revenue in 2009 fell by 7.7% to Eur3.3b chiefly because of lower prices in Europe.

ADM to Close English Cocoa Plant US-based ADM plans to close its cocoa processing plant in Hull, England, in July as it seeks to align its production capacity with its European and global customer base. According to ADM, the proposed closure is due to overcapacity in the cocoa processing market and the shift in demand for semi-finished cocoa processing from the UK to Central and Eastern Europe, where market growth is strongest.

Profit Plunges at Restructured Fazer Group Fazer Group of Finland has reported a plunge in operating profit from Eur135m to Eur44.5m for 2009 on turnover up from Eur1.16b to Eur1.44b.

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

Formed by the merger between Dublin-based speciality bakery company IAWS with its Swiss counterpart, Zurich-based Hiestand, Aryzta has increased underlying net profit by 1.1% in the first half to Eur73.8m.

However, operating profit was flat at Eur106.5m and revenue declined by 7.4% to Eur800.9m.

Owen Killian, chief executive of Aryzta.

Nestle to Introduce Jenny Craig in France Nestle is launching its Jenny Craig weight management programme in France. Jenny Craig, the personalised programme for weight loss and long-term weight maintenance, combines its ready-made meals with individual consultation. Later this year Jenny Craig will be rolledout nationally in the UK. Other European markets will be considered and evaluated. Jenny Craig was acquired by Nestle Nutrition in 2006. Headquartered in the US, Jenny Craig operates more than 725 weight loss centres and employs more than 4,000 people worldwide.

N N E E W W S S

DAIRY Solid Financial Performance

by Royal FrieslandCampina Having successfully integrated after merger, Royal FrieslandCampina performed well in 2009, benefiting from strong contributions from brand products in South-East Asia, Africa and Europe, and industrial specialties. However, due to the recession, demand for dairy products lagged behind, and both selling prices and volumes sold came under pressure. In line with the dairy market, the milk price paid to Royal FrieslandCampina’s member dairy farmers fell sharply compared with 2008.

Group revenue fell 14% to Eur8.2b, reflecting low prices of products such as milk powder, caseins and basic cheese, but operating profit before nonrecurring income and expenses rose 26% to Eur347m. Operating profit, after non-recurring expenses of Eur89m relating to restructuring and merger costs, was up 4% to Eur258m. Profit for the year jumped 35% to Eur182m.

Tough Year For Arla Foods The slump in dairy prices globally coupled with a decline in demand across virtually all of its markets resulted in a 6.5% fall in turnover to DKr46.23b (Eur6.21b) at Arla Foods during 2009. The situation was further exacerbated by the fall in exchange rates of the British pound, the US dollar and the Swedish krona against the Danish kroner. The Scandinavian dairy co-operative responded by introducing a DKr1b cost savings programme. Although Arla’s 2009 annual profit of DKr971m was DKr415m higher than the previous year, its cooperative owners received a much lower price for the milk they delivered in 2009.

“If we hadn't implemented a major savings programme and succeeded in saving DKr840 million, and if bulk industrial product prices had not begun to recover in the last quarter, our owners’ earnings would have been even lower, which would have been unsustainable for our owners,” says Peder Tuborgh, chief executive of Arla Foods.

B B R R II E E F F national nutritional ingredients and cheese group, has reported an 18.2% decline in total revenue to Eur2.13b for the year ended January 2nd last, as strong sales growth by its global nutritionals business was offset by falling revenues in its US cheese and Irish dairy operations.

Operating profit pre exceptionals declined by 14.9% to Eur128.6m, driven primarily by a significant loss at Glanbia’s Irish dairy ingredients business.

Dairy Ireland, Glanbia’s largest business segment, had a very challenging year. Revenue slumped 23.3% to Eur1.03b and operating profit pre exceptional was down 51.7% to Eur24.0m as the operating margin fell 140 basis points to 2.3%. While the most significant impact was the major loss by the Irish dairy ingredients business, the consumer products and agribusiness operations also experienced very competitive market places.

Indeed, Glanbia is holding discussions about the possible sale of its Irish business.

While overall revenue was down 6.1% to Eur792.4m, operating profit pre exceptional at the US cheese and global nutritionals business increased 7.4% during the year to Eur90.0m and operating margins pre exceptional increased to 11.4%.

New Chief Executive For First Milk

Cees 't Hart, chief executive of Royal FrieslandCampina.

Peder Tuborgh, chief executive of Arla Foods.

Danone to Reorganise French Dairy Production Danone is reported to be planning to reorganise its five dairy factories in France so that each will specialise in a particular product. The Eur10m investment programme will entail the Saint-Just site producing Danette dairy desserts, while traditional yoghurts will be made at Bailleul and fruit yoghurts for the French market at Villecomtal. Fruit yoghurts for export production will be centred at Ferrieres-en-Bray and the Molay-Littry facility will specialise in new and organic products.

Carbery Group Returns to Profit The volatility in global dairy markets was behind a 9.9% fall in revenue to Eur183.8m for 2009 at Carbery Group, the Irish ingredients and cheese producer.

However, the group managed to achieve a pre-tax profit of Eur2.7m, compared to a loss Eur0.8m in the previous year, as a strong performance by the ingredients division offset an operating loss at the dairy division.

Declining Sales and Profit at Glanbia Glanbia, the Ireland-based inter-

UK dairy farmers co-operative First Milk has appointed Kate Allum as chief executive. She joined First Milk from McDonald’s in March 2009, initially as group operations director and latterly as executive director for cheese.

Emmi to increase net profit by 28.3% to SFr75.3m (Eur52m) in 2009 on sales down 1.9% to SFr2.6b. The Swiss dairy group expects to maintain sales and secure a net profit margin of between 2.5% and 3.0% in 2010.

Bongrain Expands in Romania In line with its strategy of extending its presence in Central and Eastern Europe, French dairy giant Bongrain has acquired a stake in Romanian dairy company Delaco. The details of the deal have not been disclosed. The move will allow Delaco, which was established in 1996 as a family business and currently employs 300 people, to consolidate its market standing and expand into new product sectors.

SOFT DRINKS Exceptional Year for Nichols UK soft drinks producer Nichols increased pre-tax profits (before exceptional items) by 22% to £12.2m on sales up 29% to £72.4m in 2009. Sales of the company’s core Vimto brand grew by 28% in the UK and by 33% in international markets.

Nichols’ dispense operation increased revenues by 36%, including the acquisition of 50% of Dayla Liquid Packing.

“2009 was an exceptional year for us. Not only did we produce outstanding financial results across all of our operations, we also continued to outperform our competitors and increased market share,” says John Nichols, nonexecutive chairman of Nichols.

“Although the general economic outlook remains uncertain and the consumer market is still highly competitive, we are confident of delivering further growth this year.”

Danone Forms European Joint Venture With Chiquita

Kate Allum, chief executive of First Milk.

Profit Up at Emmi A solid market performance and sound cost management allowed

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

Danone has formed a joint venture with Chiquita Brands International to market fruitbased drinks, based on Chiquita’s Just Fruit in a Bottle product, in Europe. The joint venture will provide Danone with the platform to explore and develop fruit-based products, adding to 5

N E W S its existing portfolio of healthy fresh dairy products and extending its potential for growth in Europe.

Danone will pay an undisclosed amount in cash to Chiquita for a 51% interest in the joint venture. Chiquita will license its trademark to the new entity. The transaction is subject to regulatory approvals and is expected to be completed in the first half of 2010.

Profits Increase at Refresco Despite the challenging economic environment, Refresco, the Netherlands-based international soft drinks producer, increased EBITDA by 9% to Eur119.6m and net profit improved by Eur20m to Eur7.69m, against a loss of Eur13.78m in 2008.

Although volume sales rose by 8% to 3.4b litres, net turnover was static at Eur1.14b. Strong autonomous growth in Iberia, the UK and the Nordic countries, a strong focus on cost reductions and the acquisition of Schiffers Foods in the Netherlands contributed to the improvement. Refresco produces soft drinks and fruit juices for retail private label and for international A-brands at 19 production sites in eight countries across Europe.

AG Barr Outperforms UK Soft Drinks Market Glasgow-based AG Barr has outperformed the UK soft drink market to increase profit on ordinary activities before tax and exceptional items by 20.8% to £27.9m on turnover ahead by 18.7% to £201.4m for the twelve months to January 30th 2010. Like-for-like sales, stripping out the impact of the Rubicon acquisition, increased by 10.6% as AG Barr’s core carbonate brands and still juice

brands both grew well ahead of the market. Indeed, the group’s flagship Irn-Bru brand increased revenue by over 5% with strong growth in England and Wales.

Carlsberg – are all now at least more than twice the size of fifth ranked Tsingtao Brewery of Japan and North American brewer Molson Coors in sixth place.

BREWING & DISTILLING

Bacardi and Brown-Forman Agree European Distribution Deal

Revival By Adnams as Profit Doubles UK regional brewer Adnams more than doubled operating profit from £1.5m to £3.2m in the twelve months ending December 31st last as it increased turnover by 9% to £51.3m and beer volumes by 4%, outperforming the overall beer market which remained static. Pre-tax profit rose from £1.3m to £3.1m.

“It is gratifying to be able to report a 2009 result substantially ahead of what we achieved in 2008,” says Jonathan Adnams, executive chairman of Adnams.

“2008 was a difficult year for Adnams, but some of the investments that we made and the tough decisions that we took that year are bearing fruit in an improved performance. This revival was realised against a backdrop of considerable economic uncertainty.”

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Global spirits groups Bacardi and Brown-Forman have agreed on new distribution arrangements in Europe. Bacardi will distribute Brown-Forman brands in Belgium, Luxembourg, Denmark, Austria, Switzerland, Portugal and Andorra from May 1st. In addition a contract was renewed for Brown-Forman to distribute the Bacardi portfolio of brands in the Czech Republic, also from May 1st.

Bacardi will cease distributing the Brown-Forman portfolio in The Netherlands at the end of April and stop distributing in Russia at the end of September where Bacardi wants to focus on its own core portfolio. Co-operation between the two companies will continue in the US and the UK as well in other markets worldwide.

with a focus on achieving stronger results by increasing efficiencies, reducing costs and improving cash generation.

MERGERS & ACQUISITIONS

Glanbia to Dispose of Irish Dairy and Agri Businesses Glanbia, the international nutritional ingredients and cheese group, has agreed to dispose of its Irish Dairy and Agri Businesses arm for no less than Eur299.6m to Glanbia Co-operative Society, the Irish farmers co-op which owns 54.6% of Glanbia. Following the transaction Glanbia Co-operative Society will have full ownership and control of the Irish Dairy and Agri Businesses but its shareholding in Glanbia will be reduced to 20%. The disposal will transform Glanbia, increasing the streamlined group’s focus on international nutritional ingredients and cheese, while significantly improving its financial flexibility.

Acquisitions Help Campari Heineken and Diageo Open New Brewery in South Africa Heineken and Diageo have opened a new state-of-the-art brewery in South Africa. Owned 75% by Heineken with Diageo holding a 25% stake, the Sedibeng Brewery, south of Johannesburg, was built at a total cost of R3.5b (Eur344m).

Together with Namibia Breweries, Heineken and Diageo are shareholders in Brandhouse Beverages, a cost sharing joint venture in South Africa and one of the country’s leading marketing, sales and distribution companies for premium alcohol beverages.

Big Four Brewers Now Control Over Half of Global Beer Market

Roger White, chief executive of AG Barr.

B R I E F

Following the recent approval of Heineken’s Eur5.3b takeover of South American brewer Femsa Cerveza, the world’s top four brewers now control over half of the global beer market. Indeed, the top four- Anheuser-Busch InBev, SABMiller, Heineken and

Helped by acquisitions, including the Wild Turkey brand, Campari has increased EBITDA by 21.6% to Eur261m on turnover up 7% to Eur1.0b for 2009. Net profit at the French drinks group rose by 6.6% to Eur137.1m.

“Looking forward to 2010 we are confident of the positive development of our business, despite a relatively volatile environment. In 2010 we will benefit from the full year effect of the consolidation of our acquisitions in our distribution network,” says Bob Kunze-Concewitz, chief executive of Campari.

Constellation Brands to Retain Australian and UK Wine Operations Discussions about the potential combination of a portion of Constellation Brands’ Australian and UK wine operations with Austrian Vintage have ended.

Constellation Brands, which is the world’s leading wine company, plans to continue to operate its Australian and UK businesses

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

John Moloney, group managing director of Glanbia.

Lactalis Expands in Spain With €630m Deal French dairy group Lactalis is acquiring Spanish food group Ebro Puleva’s dairy business, Pulleva Foods, for Eur630m.

Having last year disposed of its sugar business to Associated British Foods for Eur526m, Ebro Puleva is now focused on its rice and pasta activities. The deal increases Lactalis Group’s sales in Spain to Eur1.2b and consolidates its standing as one of the world’s leading dairy companies.

Refresco Sells 20% Stake for €84m Refresco, the European market leader in private label fruit juices and beverages, has sold newly issued shares, representing 20% of its total share capital, to 3i,

N N E E W W S S the international private equity company. The capital injection of Eur84m will be used to fund further growth by Refresco. The existing shareholders, an Icelandic consortium of investors led by investment company Stodir, and the management of Refresco, are maintaining their shareholdings.

Coca-Cola Aims For Leadership of Russian Juice Market Coca-Cola is reported to be seeking regulatory approval for the acquisition of Russian juice company Nidan Soki from private equity firm Lion Capital. Such a purchase would make Coca-Cola the largest juice producer in Russia, overtaking PepsiCo which owns current market leader Lededvansky. Coca-Cola presently has 22% of the Russian juice market through its Multon business.

C&C Sells Spirits Business to William Grant For €300m C&C Group, the Irish branded beverages business which owns the Bulmers and Magners cider brands, is selling its spirits and

liqueurs division to Scotch whisky distiller William Grant & Sons for a cash consideration of Eur300m.

Incorporating the Tullamore Dew and Irish Mist Irish whiskey brands, the business being sold generated revenue of Eur85.9m, EBITDA before exceptional items of Eur16.1m and EBIT before exceptional items of Eur15.3m for the year ended 28th February 2010. C&C will use the proceeds to reduce debt. The acquisition will provide William Grant with entry to the Irish whiskey category.

John Dunsmore, chief executive of C&C Group.

Mead Johnson and Almarai Form Baby Food Joint Venture Mead

Johnson

Nutrition

B B R R II E E F F Company, a global market leader in infant formula, and Almarai, the leading food and beverage company in the Gulf region, have formed a pediatric nutrition joint venture. Almarai and Mead Johnson will each hold a 50% stake in the new venture.

Boparan Acquires Star Fish Borparan Group, which owns 2 Sisters Food Group, one of the UK’s largest chicken processors, has purchased Five Star Fish, the Grimsby-based seafood company, from the administrators for an undisclosed sum. British Seafood Group, which owns Five Star Fish, went into administration last February.

Specialising in supplying the food service sector, Five Star Fish employs 330 people and has doubled turnover to £65m in the past three years. The company recently completed a £7m expansion of its processing site in Grimsby.

Five Star Fish was acquired by British Seafood Group in 2007 from The Real Good Food Company for £35m.

Boparan recently purchased the famous Harry Ramsden’s chain of fish and chip restaurants.

Unilever to Sell Italian Frozen Foods Business Unilever is reported to be preparing to sell its Italian frozen foods arm – Findus Italy - for between £440m and £700m. The business was retained in 2006 when Unilever disposed of its Birds Eye and Iglo frozen foods business to Permira for £1.5b. Permira and another private equity group, Lion Capital, are both believed to be interested in Findus Italy.

Paul Polman, chief executive of Unilever.

Proce See us at Tota ssin 25-27 g & Packa l M a y NE ging Bir Standmingham C No. 5 111

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

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Brand Matters - DS Smith Packaging and the importance of matching colours ost people would agree that protectM ing a brand’s identity is an absolutely critical aspect of marketing, particularly across frontiers. Presentation of the brand in store is increasingly reliant on retail ready packaging made from attractively printed corrugated board. Put those two thoughts together and you have the reason why DS Smith Packaging has invested heavily in digital colour matching.

People often interpret the same colour very differently, so it is essential to take out any guesswork in judging those allimportant brand colours. Ensuring consistent colour is critical, especially when the retail ready packs are designed to match the primary packaging. So a colour matching tool was developed which DS Smith Packaging calls ‘ImageRight’, part of the ‘PackRight’ suite of tools that is already helping many customers save money and boost sales.

Digital Technology Using spectrophotometers, devices that measure colour digitally rather than by eye, DS Smith Packaging printers make sure that the colour is right and remains right as each order is printed. This removes uncertainty and gives customers the results they expect. At DS Smith Packaging around 20,000 digital colour matching scans are taken every month.

At DS Smith Packaging 20,000 digital colour matching scans are carried out every month.

ImageRight ensures integrity of brand colours.

Gold Awards The recent EFTA print competition provided more evidence of ImageRight’s invaluable contribution to managing colour quality, when DS Smith Packaging won three gold awards, four silvers and one bronze.

The skills and technologies developed

by DS Smith Packaging are beginning to make a big impact on the aesthetic appearance of packaging in retail outlets.

Flexographic pre and post print has advanced so far in recent years that brand owners can take full advantage of the extra stand-out that top quality printing provides in store.

This investment in new technology, backed by intensive training, means DS Smith Packaging is achieving consistent, repeatable colour, within agreed tolerances, regardless of where a job is printed.

Not only does this make it easier to use DS Smith Packaging’s factory network to make and print high volume orders at different sites, it also transforms the ability of customers to manage and protect their brands’ identity, even though the corrugated packaging is being made in different places.

Consistent Colours DS Smith Packaging’s work for Cadbury is a good example of this. When Cadbury automated three out of four packaging lines at their Yorkshire based plant, they needed to fill the packaging differently, whilst making sure that when the packs were opened, and on display in store, they all looked the same.

The challenge was to produce two different structural designs and three product variants, each with five colour print, using colour to differentiate flavour - all to be manufactured in two DS Smith Packaging locations, Clay Cross and Belper.

The sites set their designers to work on the structure, but when it came to colour they relied on ImageRight, using the digital colour matching technology now widely available on printing machines within DS Smith Packaging. What is more, all parties were able to link seamlessly with the centrally managed digital database to ensure complete colour consistency.

Award-winning colours on packs and sacks.

However, it still remains true that there are many companies in the UK that are not making full use of the latest thinking on colour matching. A walk down the aisle of any supermarket reveals the potential for much better colour coordination not just between primary and secondary packaging, but sometimes even between the corrugated packs themselves, especially if they are produced at different sites.

Brand managers are becoming increasingly aware of the need for high quality and consistent printing on retail ready packaging to make their brands realise their full sales potential – DS Smith Packaging is working hard to make sure they are not disappointed. J

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

9

COVER STORY

Tunnock’s – Combining Traditional Values With Modern Technology Currently celebrating its 120th anniversary, family-owned Scottish biscuit and confectionery company Tunnock’s has just invested £4 million in state-of the-art robotics and automation systems as its continues to marry traditional values with modern technology to produce its iconic brand range.

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ow over fifty years old, Tunnock’s is one of Scotland’s best loved brands and, just like AG Barr’s Irn-Bru drink and Scottish whisky, has found growing popularity beyond its domestic market. Indeed, the Tunnock’s range of Caramel Wafers, Snowballs, Carmel Logs and Teacakes, in their distinctive wrappers, is now well known throughout Britain and internationally.

Tunnock’s employs 550 people and increased turnover to £35 million for the year ended February 2010. Located in the village of Uddingston, Lanarkshire, the company’s 200,000 sq ft factory, which is spread over four storeys, produces about 300 tons of products a week. Virtually all output carries the famous Tunnock’s brand and the company has constantly refused approaches from major retailers to produce own-label products for them.

Export Sales About 15% of the company’s sales are generated overseas.

Tunnock’s exports to more than 30 countries worldwide including Saudi Arabia, Kuwait, Trinidad, Australia, the US, Canada and South America.

“Most of the markets are well established. We have been exporting to Newfoundland, Canada, since 1957 and we are still using the same agent,” points out managing director Boyd Tunnock. Aged 77, he is the third generation of the family to run the company, having taken control after his father died 29 years ago.

Tunnock’s exports have risen consistently over the years and sales jumped by 25% in 2009 – the biggest annual rise ever – helped by the weakness of sterling.

Boyd Tunnock, managing director of Tunnock’s.

New Technology and Tradition While still adhering to a traditional ethos of producing top quality products which offer the consumer value for money, Tunnock’s has not been slow to embrace the latest

Tunnock’s Teacake range.

production technology.

All of Tunnock’s products are chocolate coated. To ensure consistent product quality, the company continues to manufacture all its own chocolate and produces between 70 and 75 tons a week.

“We make our chocolate on MacIntyre refiners. They are the only chocolate making machines you can buy that are made in Britain and are manufactured in Arbroath, Scotland,” Boyd Tunnock remarks.

To help improve efficiency and productivity Tunnock’s recently invested £4 million in state-of-the-art robotics and automation systems. “We have just spent £2 million installing a Swiss SIG wrapping plant to wrap 600 wafers a minute and pack them automatically. We are currently producing between 1400 and 1800 a minute in total.” He continues: “We also spent £2 million on a German Schubert robot, which is top of the range, and we are very pleased with it.”

The company has been using robot technology for a number of years, having already installed OPM machines from Italy, which run around the clock. Boyd Tunnock has visited a number of biscuit and confectionery factories in Europe in order to stay abreast of the latest production technology in operation. He selected a Hebenstreit spiral cooler, which is used on the caramel wafer production line, after seeing the system in action during a visit to a Cadbury plant.

While £4 million is the biggest capital spend the company has made at any one time, Tunnock’s constantly reinvests to maintain

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

11

www.sanderson.com/fooderp

Genuine Scottish Icon is a True Inspiration

Icon by Sue MacKechnie.

A recent exhibition at the Glasgow Print Studio celebrated Tunnock’s as a ‘one of Scotland’s genuine icons’.

Artists were invited to honour Tunnock’s famous teacakes, caramel wafers and snowballs in their own creative ways and to present their work in an exhibition entitled ‘Tunnocked’.

The theme for the exhibition was conceived by Glasgow-based artist and printmaker Fiona Watson, who has used Tunnock’s imagery in her artworks.

Supported by Tunnock’s, the exhibition featured over thirty works by artists including Fiona Watson, Stephen O’Neil, Ian McNicol, Mark Osborne, Norman Sutton Hibbert, Marion McPhee, James Greer, Murray Robertson, Gillian Kyle and Harry Magee.

More Cake by Fiona Watson.

Wafer Pop by Mark Osborne.

its production base. “We have been investing £1.5 million a year in plant and machinery,” he says. Recent investments of this type include upgrading the wafer ovens and the installation of new conveyor systems.

Maintaining Brand Awareness Tunnock’s uses radio and televison advertising in Scotland and the north of England to maintain brand awareness amongst consumers.

Its most recent TV advert is for Tunnock’s Teacakes. Set in a contemporary art gallery, the advert features a foil-wrapped Tunnock’s Teacake as one of the exhibits and highlights the product’s attraction as a low 160-calorie snack. The advert marks a change in focus as it seeks to broaden the product’s consumer appeal. Previous advertising had tended to hone in on the historic popularity of the brand.

120 Year History Tunnock’s was founded in 1890 by Thomas Tunnock after he bought a shop in Uddingston for £80. The company operated as a bakery and flour confectionery business until the 1950s when it began to specialise in the mass production of biscuits and developed its four iconic products – Tunnock’s Caramel Wafers, Snowballs,

The Tunnock’s factory at Uddingston in Scotland.

Carmel Logs and Teacakes.

As a vestige of its past, Tunnock’s has retained a bakery shop in Uddingston. Indeed, Boyd Tunnock is a baker by trade but this career was interrupted in 1954.

“I spent five years being a baker and then the Queen sent me a telegram. I thought I was going to Buckingham Palace but no it was to go into the army for National Service. I joined the catering core and came out a cook sergeant but it was good experience,” he recalls. His father Archie Tunnock served in the First World War and the regimented ways of the army helped both men in their roles as head of the family business through developing a disciplined approach and an eye for detail, he believes.

Profits Warning Tunnock’s is a relatively small player in the highly competitive biscuit market. In the recent past, the company has come under intensifying margin pressure. Profit for the 2006/2007 financial year slumped to £452,000 from £1.6 million in the previous twelve months on flat sales of £30 million.

In July 2007, rising input and production costs forced Tunnock’s to issue the first profits warning in its long history. “We did that because we had to tighten our belts and we also had to increase our prices in December of that year by 10% which put us back in line for making some money,” he explains. Tunnock’s management was

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

15

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have to keep your customers happy,” he stresses.

“We have strict quality control systems but I still go around tasting. I am on the factory floor probably about 90% of the time and spend about 10% in the office.” Boyd Tunnock lives close by to the factory – 350 steps away – and adopts a hands-on approach to running the business, assisted by other members of the family.

Tuunock’s Caramel Wafer range.

forced to find ways of reducing costs while still maintaining the company’s reputation for premium quality products and customer goodwill.

So how has the company performed since? “Last year we made over £1 million and we hope to do likewise this year,” he replies.

Development Strategy Tunnock’s development strategy is uncomplicated. “Basically, we still have the same product range as we have had for many years,” says Boyd Tunnock. Cheaper products are available but the quality is not the same, he points out, and that is why Tunnock’s continues to build and retain a loyal customer base.

“It is all about quality and keeping the standard right so that when consumers buy our products they get what they want. You

I

Awards As a major employer, Tunnock’s is central to the local economy and also takes an active role in the community. “We donate £140,000 a year to charity. I give because I like giving. There is an old saying: ‘Give ‘til it hurts’. The nicest thing I can give anybody nowadays is a job.” Indeed, Boyd Tunnock was awarded a CBE in 2004 in the Queen’s Birthday Honours list for his services to charity.

Boyd Tunnock’s business success has been recognised by the biscuit and confectionery industry internationally. He is a recipient of the prestigious European Candy Kettle Award in recognition of Tunnock’s outstanding achievements in product quality; development in production, research and technology; and performance in sales and marketing; and in established its international reputation beyond the United Kingdom. Other winners of the European Candy Kettle Award include well know international groups like Ferrero, Lindt & Sprungli, Cadbury, Haribo, Chupa Chups, Jacobs Suchard, Marabou, Nestle and Loacker.

Outlook The Tunnock’s managing director sees further scope for expansion both at home and abroad. The company is seeking to broaden the appeal of its products domestically and to find new export markets.

It is currently exploring the Chinese market by way of a joint venture with a local bakery company.

Boyd Tunnock has just bought a Rolls Royce. “That’s my indulgence,” he remarks. “As I say to the staff, when you see a Rolls Royce at the door, everything is OK. If you see a Morris Minor, begin to worry!”

He concludes: “There is a great future ahead as long as we continue to focus on product quality.” J

CASE STUDY

Tea-time Traditions Boosted by Technology As business has expanded for iconic Scottish biscuit manufacturer Tunnock’s, so too has its use of leading food industry software system Formul8 from Sanderson. unnock’s products – including T caramel wafers, snowballs and teacakes – have become something of a Scottish phenomenon. These iconic products are now sold to 30 countries across the world, reaching as far as Canada, Japan and Kuwait.

When the company was established in Uddingston, Glasgow in 1890, founder Thomas Tunnock operated the business as a bakery.

In fact, it wasn’t until the 1950s that Tunnock’s introduced its now-famous speciality products.

Today, the 550-employee, £36 million

turnover business is still family-owned and managed – headed by the founder’s grand-

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

son Boyd Tunnock CBE – and although much has changed within the organisation, many aspects have remained the same. The factory is still in the village of Uddingston, along with a small bakery and traditional tea room.

The products remain unchanged, as do the company’s core values and ethics. “We’ve stuck with a tried and tested portfolio of products,” explains company secretary, Bruce Reidford. “That’s what we are good at, so that’s what we do.

We have never altered the packaging or weight of the products; it’s still the same as 17

Congrat u to T unn lations oc their 12 ks on 0t A nnive rsar y f h at Mac rom all Int yre

when they were introduced in the 1950s.

People feel very nostalgic about Tunnock’s products and that’s part of the attraction and the reason for our continued success – the familiarity and the comfort factor.”

The factory itself operates around the clock. There’s no separate warehouse – the goods are stored within the factory.

Although Tunnock’s is a make-to-stock operation, the finished goods are despatched almost immediately. “We keep very little stock,” explains Reidford. “Using the Sanderson Formul8 system and EDI, our larger customers log in and place their orders, and we aim to despatch within 12 hours.”

The company has had a relationship with Sanderson for 12 years, and Reidford was responsible for originally selecting the system. His role as company secretary sees him in charge of administration, finance and IT, and he also has involvement in operational matters within the factory. “I looked at several solutions and I was confident from the start that Sanderson was the best fit for our business,” he recalls. “Their people were a key part of that decision. We wanted true commitment from an IT supplier to work with us to solve our business problems as our staff are not IT experts.

That was as important as the software itself.

We’ve grown up with Sanderson and we’ve been delighted to have them as our business partner.”

Business Management System Formul8 from Sanderson is a dynamic and flexible business management system that provides control and visibility across the organisation. This inherent flexibility has proved crucial to Tunnock’s, as the system has been able to grow and expand to help the business drive forward into new international markets.

Tunnock’s uses the software to manage every aspect of the organisation, from ordering and receiving raw ingredients, to production scheduling and purchase and sales ledger processing, through to final despatch and distribution.

The factory runs three shifts throughout the week: “The main issue for us is making enough caramel,” explains Reidford, “that’s the bottleneck. So we run a smaller produc-

has invested in highly advanced machines which can wrap up to 600 biscuits a minute.

“It’s about using our people, processes and technology to the best effect.”

tion team for caramel production overnight which ensures we have enough caramel to start the day shift.”

Customers range from the major supermarkets to small independent retailers – this diversity could pose challenges in terms of meeting the needs of customers large and small. And, while Tunnock’s holds firm its belief that every customer should receive the same high standard of service, there are clearly occasions when size matters. “We’re able to balance conflicting requirements very easily with Formul8,” says Reidford.

“We schedule orders through the system and attach priority listings to them. This also helps us at the other end of the line, with transport scheduling and loading.”

Distribution Indeed, Tunnock’s has an equally diverse operation to manage in terms of distribution: it runs its own fleet of delivery vehicles, as well as using third party carriers.

And some major customers use their own transport and backhaul with Tunnock’s to increase distribution efficiency further.

At goods-in and despatch, Tunnock’s uses radio data terminals (RDTs) which are linked directly to the Sanderson system. All goods are bar-coded and the RDTs enable Tunnock’s to locate both raw materials and finished goods quickly and efficiently.

Improvement Drive In common with most manufacturers, Tunnock’s is continuously striving to ensure its processes are as effective as possible. As part of this improvement drive, the company is now adding new factory floor data capture functionality to its Formul8 system. “We’re expecting this will remove most of the paperwork and will give us much more sophisticated analysis of the operation,” says Reidford. “With increases in costs such as energy and raw materials, we have to know exactly what is happening on the factory floor, where any waste is – both physical and process – and where the best areas are, so that we can learn from that. This is about reducing downtime, reducing costs and raising efficiency. We know we can be more effective by cutting waste, using labour more efficiently and automating certain lines.”

The automation is already paying dividends: in packaging, for example, Tunnock’s

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

Business Intelligence Tunnock’s is also about to extend the capability of Formul8 with the addition of the Sanderson business intelligence module. “This will make a huge difference to our business,” predicts Reidford. “We already have very good reporting within the system, but with business intelligence, we’ll be able to perform the precise analysis we require at the press of a button and without having to download data into spreadsheets. Not only will it enable us to service customers more efficiently, it will also give us valuable data about our processes. We’ll be able to analyse order patterns, delivery routes, schedules and forecasts to make our operation as sleek and effective as possible.”

As well as driving production efficiency and business expansion, the system has ensured that Tunnock’s has been able to meet another crucial requirement – regulatory compliance.

Like all food manufacturers, Tunnock’s has seen its regulatory burden grow significantly in recent years. As well as ISO 9001, the company has to meet British Retail Corporation food standards, Food Standards Agency regulations, requirements imposed by the Scottish Environmental ProtectionAgency (SEPA), and many more.

“The administrative burden for any food manufacturer is huge these days,” says Reidford. “Without the support of sophisticated technology like Formul8, we’d need an army of clerks running around carrying out this work. It’s not only the traceability of the existing system that supports this; we will also have additional capability from the business intelligence module to produce up-tothe-minute reports and analysis.”

He continues: “The new developments to Formul8 enhance our capability and ensure that we can remain one step ahead. As the regulatory demands become greater and greater, we have to look at the best way of meeting those. Often the reporting requirements and structures change, but Formul8 means we can cope with all of that very easily.”

Evolution Reidford reflects on the way Tunnock’s has evolved in the 12 years it has been working with Sanderson. “We just could not have coped without Formul8,” he says. “It would have been impossible to manage our expansion into global markets and to manage the regulatory demands. Formul8 is a very effective, reliable and dependable product.

“But I reiterate the point that it’s not just about software. Sanderson has understood the way we operate, our values and our needs. They are very responsive and an excellent business partner. For any future IT requirements, they will be the first people we talk to.” J 19

I ROBOTICS & AUTOMATION

Better Packaging Machine Efficiency With New Schubert System chubert has developed a new highS tech transport device for boosting the efficiency of its automated packaging machines. The Transmodule, which replaces its previous vacuum conveyor scheme, is designed to use less power as it moves cartons between a line’s packing operations.

It operates on a rail system that links each processing station of a Schubert packaging line, which typically comprises 5 sub-machines handling the carton erecting, filling and closing processes.

The Transmodule consists of vacuum suction cups for holding the erected boxes in place, a drive motor and control electronics. It only requires power when accelerating from a standstill to its travel

20

speed of up to 5m/sec.

When the Transmodule decelerates to position itself for the robotic packing process, the drive motor switches over to

generator mode, thereby supplying electricity stored in capacitors, which is used when starting up again. At the end of the operation, the device returns to its starting position along the rail system.

The Transmodule offers wireless data and power transfer and is linked to the machine’s software control system. Schubert plans to extend the use of the device for its new automatic tool change facility set to be launched next year.

“This new method will set new standards in packaging machine construction and pave the way for more efficient and flexible packing machines,” comments David Maddern, Schubert UK’s sales director. J

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

I ROBOTICS & AUTOMATION

Growing Appetite for Robotics & Automation by Food and Drink Manufacturers he adoption of robotics and automation T technology by food and beverage manufacturers is growing rapidly. Key to this has been the efforts by suppliers to develop robots and automation systems to meet the special requirements of the food and drink manufacturing industry, and the realisation by food and drink businesses of the benefits that this type of technology can bring.

Installations of robots by the UK food manufacturing industry in 2009 were higher than any other industrial sector, according to the British Automation and Robotics Association (BARA). Indeed, sales of commercial robots to the UK food industry reached record levels last year, rising by 15% on 2008.

An increasing number of food and beverage manufacturers are turning to robot and automation technology as they seek to improve productivity, efficiency and flexibility. This growing interest is also con-

firmed by CenFRA, Europe’s leading centre of excellence for food robotics and automation, which has recently recruited more engineers to handle a surge in new

enquiries.

Food manufacturers of all sizes are turning to robotics and automation technology.

One of the largest investments is by Northern Foods. The UK convenience food group is spending £26.5 million in automated technology across its Fox’s Biscuits business to support higher margins and generate greater operational efficiencies.

The investment will introduce new automated technology at Fox’s Batley, Kirkham and Uttoxeter sites, with a net reduction of approximately 220 employees, mainly through voluntary redundancy. The project is expected to generate a return on investment in excess of 20% and to deliver positive EBITDA starting in the 2011/12 financial year.

Meanwhile, Scottish biscuit manufacturer Tunnock’s recently invested £4 million in state-of the-art robotics and automation systems (see page 9). J

CenFRA Empowering Food Manufacturers s the UK starts to recover from recesA sion, food automation plans are firmly back on the agenda as manufacturers

bridge the gap between equipment manufacturer and end user to ensure that reliability, trust, clarity and co-operation are

strive to keep production costs down, in the knowledge that cheap labour is not a long term option.

The smarter food companies are looking to grow out of the recession using the latest technologies and equipment, according to CenFRA, Europe's leading centre of excellence for food robotics and automation, which has recently recruited more engineers thanks to a surge in new enquiries.

However, CenFRA, a not for profit company, believes one of the biggest barriers to automation is a shortage of food manufacturing experience in the automation suppliers and automation experience within the food manufacturers. This lack of experience coupled with a lack of confidence in food companies means that many producers are unable to access the engineering resources needed to recognise automation opportunities and then specify, buy and install the optimum solutions.

CenFRA’s overall aim is to successfully

integral parts of the automation procurement process. CenFRA's expertise and independence benefits all parties, by helping to eradicate uncertainty in purchasing decisions and giving food manufacturers the confidence that the correct investment choices are being made.

ABB Robotics food and beverage segment manager, Alan Spreckley has already

recognised the value of the CenFRA initiative: “It is CenFRA's unique application knowledge and impartiality, which makes it so essential to the industry.

The company has established itself as a vital resource centre, bringing suppliers, installers and food producers together to ensure that the correct purchasing decisions are made. There is no hidden agenda with CenFRA, it is not focused on selling machinery but instead is committed to providing the bridge in automation knowledge and expertise between equipment producer and buyer.”

Over the past two years CenFRA has built secure relationships with national and regional food producers by giving them unique knowledge access to the benefits of automation through factory audits and 'one-to-one' consultancy. Using discrete event simulations, CenFRA engineers produce virtual replicas of factory space and activity to determine where a technology is appropriate and how an installation can be optimised and integrated without disruption to manufacturing operations. J

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

21

I SOFT DRINKS

Britvic Continues to Outperform £8.5 Billion UK Soft Drinks Market Britvic continues to outperform the UK soft drinks market and, confident of solid revenue growth, recently upgraded its profit margin targets. ritvic is the second largest branded soft drinks producer in the UK and the Republic of Ireland. It is the leading supplier of branded still soft drinks in Great Britain, and the number two in branded carbonates. Britvic is also the top player in the on-premise channel of the UK soft drinks market.

Britvic has a broad and strong portfolio of leading brands to meet different consumer demands. The business strategy concentrates on the development of ‘core’ brands and ‘seed’ brands. Britvic’s six core brands - Pepsi, 7Up, Tango, Robinsons, J2O and Fruit Shoot – hold number one or two positions in major soft drinks categories and contribute the majority of group revenues and profit. The core brands are the focus of Britvic’s investment and brand equity management.

The seed brands are those with the potential to become core brands of the future and innovations such as J2O and Fruit Shoot have been developed in this way and have become category leaders.

Britvic’s seed brands include sports drink Gatorade, functional water V Water, Pepsi Raw, the first cola to use natural ingredients where possible, and Lipton Ice Tea.

B

Financial Performance In its last financial year ended September 27th 2009, Britvic grew revenue by a 5.6%

Paul Moody, chief executive of Britvic.

to £978.8 million, driven by a volume increase of 3.9% to 1.7 billion litres.

Operating profit before exceptional items for the period was up 13.9% to £110.1 million with operating profit margin improving by 80 basis points to 13.9%.

Profit before tax including exceptional items of £20.3 million was £66.2 million, up from £51.8 million in the previous year when exceptional items were £18.3 million.

Despite the small decline in the British soft drinks market during the period, due to subdued consumer confidence, Britvic’s Great Britain and international businesses increased revenue by 8.7% to £789.3 million with volumes up 6.5% and operating profit advanced 19.4% to £97.9 million.

However, poor local trading conditions were behind a 5.6% revenue decline in Ireland to £189.5 million and operating profit fell 17% to £12.1 million. Despite the difficult trading conditions, Britvic

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

Top Players in the £6.1b UK Take Home Channel Company Coca-Cola Enterprises Britvic GlaxoSmithKline Danone Tropicana All other

Market Share 28% 12% 8% 5% 5% 43%

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Top Players in the £2.4b UK On-premise Channel Company Britvic Coca-Cola Enterprises Red Bull All other

Market Share 47% 33% 4% 16%

Ireland, which was acquired for £169.5 million in 2007, continues to deliver on its synergy programme. Total achieved cumulative synergies to date now amount to Eur15.3m, with further planned synergies of over Eur9 million coming in 2010 and Eur2.0 million in 2011. However, the Irish soft drinks market shows no indication of a return to growth in the short term.

UK Soft Drinks Market The UK soft drinks market increased in value by 2% in 2009 to reach sales of £8.5 billion. The take-home channel increased in both volume and value and was worth £6.1 billion. The on-premise channel exhibited value growth of 3% to £2.4 billion but volume was down 1%.

Within take home the carbonates category grew, fuelled by a 4% rise in cola value, which reinforced cola’s position as the single largest category within the soft drinks market. Value sales of fruit flavoured carbonates also advanced by 4%, reversing the decline of the previous year. Lemonade and not-fruit carbonates were also in growth.

Squash sales jumped in value terms by 7% but volume was down due to the introduction by many private label producers of ‘double concentrate’, although volumes were up on a like-for-like basis. Reflecting the pressure that the economic recession has placed on the premium and more pre-

mium categories, pure juice sales continued to decline with value down by 4% during 2009.

The return to value growth in the onpremise channel was driven by carbonates, led by cola. Juice drinks saw value decline by 2% and volume by 4%. The managed retail sector led the growth in the licensed trade with value ahead by 6%. Soft drinks sales in fast food outlets grew in value by 12% but the horeca (hotels, restaurants and cafes) sector declined by 3%. Indeed, hotels were hit particularly hard with soft drinks sales down 10%.

lion market, and leads the £2.4 billion licensed channel with a market share of 47.3%, it is outside of the top two in the impulse and food service channels. With a market share of 9.7%, Britvic is number three in the impulse soft drinks channel, which has a retail value of £1.8 billion. It also ranks third in the £6.0 billion food service market with a share of just 7.0%.

Britvic’s innovation programme for 2010 will be a key driver of growth. The group has a strong track record of successful innovation, which contributes between 1% and 2% of full year revenue in any given year. Britivic will also conContinued Growth tinue to plan for pricing Britvic is well placed to growth through enhanced continue its growth and efficient promotions momentum in both sales and product mix manageand operating profits. Martin Rose, supply chain director ment.

Indeed, since 2006, of Britvic.

Innovation and distribuBritvic’s Great Britain and tion gains in wider channels international business has achieved rev- will in turn benefit Britvic’s APR (Average enue CAGR of 6% and operating profit Realised Price). According to Paul Moody, CAGR of 11%.

Britvic aims to see the APR move by at Paul Moody, chief executive of Britvic, least 1% so adding a multiplier effect to its expects volume growth in the region of planned volume growth.

2% to 3% over the medium term in the UK soft drinks market. He also identifies Higher EBIT Margin Targets “opportunities in building distribution Confident of solid top line growth, Britvic not simply in channels where we are rela- has upgraded it EBIT margin targets. tively under represented but in those core Previous guidance was to increase the marchannels where we already have a strong gin of its Great Britain and international position.” This will entail closing major business by up to 15 basis points per year. distribution gaps in key channels, such as However, Britvic has delivered an impulse and food service, which offer sig- improvement of 170 basis points since nificant new revenue opportunities.

2006 in the underlying business.

Although Britvic is the second largest In light of this performance and because supplier of soft drinks to the UK grocery of the significant operating leverage trade, controlling 11.8% of the £4.4 bil- opportunities left in the business and the eventual market recovery envisaged in Ireland, Britvic has upgrade its guidance to an average group margin improvement of 50 basis points per year in the medium term.

“The key to our continued success is outstanding brands delivered in a meaningful and impactful way to our consumers. Our margin ambition now reflects our strong track record and our confidence in our ability to deliver,” Paul Moody explains.

Britvic has also achieved a fourfold increase in the number of cases produced per production employee – from 40,000 cases to in excess of 160,00 cases - since 1988.

Consolidated and Flexible Supply Chain Britvic has developed a fully flexible, group-wide supply chain structure across its businesses in Great Britain and Ireland and this will play a key role in supporting its growth targets.

The network consists of six ‘drive’ sites, factories with significant primary warehousing for direct delivery to the customer, at Leeds, Norwich, Rugby and Beckton in England as well as at Dublin and

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

25

configured to produce Energise for the Irish market.

The supply chain is well positioned to support the group’s organic growth strategy in 2010, which includes new packaging and a focus on the ‘on the go’ sector in Great Britain.

The factory at Rugby is currently being equipped with a new small PET line as part of an expansion of capacity to facilitate the planned increase in ‘on the go’ sales. “Back in 2007 production would have been limited to our Beckton site and any peaks and demands beyond that of a normal summer would have been pretty challenging. Now in 2010, we can produce small PET in Beckton, Dublin and soon the Rugby facility,” Martin Rose remarks.

Improved Productivity “The ability to push more volume through the organic business without the associated increase in our cost and capital base is a fundamental building block in out EBIT

margin target,” says Martin Rose. Indeed, Britvic has been able to attain a flat unit cost over a 20 year period up to 2010.

“This has been achieved through out asset utilisation and programmes such as manufacturing consolidation and the outsourcing of our distribution activity. Indeed, the outsourcing of our secondary distribution to KNDL in 2007 saved £6 million per annum in operating costs alone and this was taken directly to the EBIT line,” Martin Rose adds.

In addition to controlling units costs, Britvic has also achieved a fourfold increase in the number of cases produced per production employee – from 40,000 cases to in excess of 160,00 cases - since 1988. Indeed, the improvement has been accelerating over the past few years. “This is mainly due to increasing volumes, improved operating effectiveness and recent factory consolidation,” Martin Rose points out. “We are confident that we can continue this improvement going forward.”

J20 Cuts Packaging Newcastlewest (Ballygowan) in Ireland. It also operates factory only sites at Huddersfield and Widford which are supported by three separate distribution centres – one in Great Britain at Lutterworth and two in Ireland in Dublin and Belfast.

Britvic has been streamlining its manufacturing and distribution network and during 2009 closed factories in Hartlepool and Cork with output consolidated into other group sites. On the distribution side, three Irish depots were shut last year, and future distribution arrangements in Northern Ireland are being reviewed.

“Within manufacturing we have over the past decade continually consolidated our infrastructure to its current position having previously had as many as fourteen factory locations,” explains Martin Rose, supply chain director of Britvic.

In Great Britain, Britvic out-sources primary and secondary logistics operations to Wincanton and KN Drinks Logistics (KNDL) respectively.

With completion of the roll-out of SAP in Ireland, Britvic can now benefit from its whole supply chain being run through a common operating platform. Indeed, Britvic can use this model elsewhere as it pursues its ambition of international expansion.

Group-wide Manufacturing Product portfolio manufacturing is now managed on a group-wide basis to achieve greater flexibility in meeting customer needs and coping with any sudden peaks in demand. For example, in addition to Norwich, Robinsons squash can now be produced in Dublin. Fruit Shoot is produced in two other sites apart from Widford. Similarly, Widford has also been

Britvic has reduced the amount of glass in bottles of popular juice drink J2O as part of its ongoing work to reduce packaging and energy use within its corporate responsibility programme. The new 275ml J2O bottle is 20 grams lighter, with each bottle reduced from 200 grams to just 180 grams, saving around 4000 tonnes of glass per annum (at current production levels), the equivalent to 20 million bottles of J2O a year.

The new design has also led to The new design has also led to improvements in filling line improvements in filling line effi- efficiencies, due to the bottle being lowered in height, as well as ciencies, due to the bottle being energy savings of around 10% as less glass is used during bottle lowered in height, as well as blowing. energy savings of around 10% as less glass is used during bottle blowing. Additionally the lighter bottles require less fuel to transport due to the reductions in weight.

These latest savings are in addition to a reduction of 26 grams of glass, or 5000 tonnes per annum made to the J2O bottle in 2004.

“We are proud that J2O has been reducing its impact on the environment for some years now and we remain focused on further packaging reductions as well as energy, fuel and water usage reductions across all Britvic brands and at all our manufacturing sites,” says John Gibney, Britvic’s finance director and corporate responsibility programme sponsor.

“With J2O representing a leading juice drink brand with 13 bottles sold every second in the UK, we are pleased to be playing our part in reducing the impact of our operations and ensuring a sustainable future for our consumers.

There is no visible change to the J2O bottle as, despite the height having been reduced by 5mm, the volume remains the same. The bottle has also maintained its durability and strength ensuring that it can be stacked and stored as usual, which is critical for Britvic’s customer needs.

The new J2O lightweight bottle represents another significant step towards Britvic’s target to remove a total of 5,000 tonnes of packaging by December 2010 as part of the government-backed Waste & Resources Action Programme (WRAP). Britvic was the first soft drinks company to sign up to WRAP’s Courtauld Commitment which aims to design out packaging waste across the industry.

J2O was launched in 1998 and has risen to become the best selling bottled drink in UK pubs and bars, outselling all bottled drinks, including many well known global alcohol brands. J2O sales are worth over £300 million in the UK soft drinks market.

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

27

Product portfolio manufacturing is now managed on a group-wide basis to achieve greater flexibility in meeting customer needs and coping with any sudden peaks in demand.

Driving Out Costs Britvic has proven adept at driving costs out of the business through its Product Value Optimisation (PVO) programme, which has been a key contributor to the EBIT margin improvement. “PVO has delivered £8 million worth of savings in the last four years and we continue to identify opportunities that will deliver up to £2 million per year going forward,” the Britvic supply chain director remarks.

Recent examples of PVO initiatives achieved to date include bringing PET bottle blowing in-house and light weighting of the J2O glass bottles (see Panel). The production of TRDU (trade retail display units) has also been taken in-house at the Rugby factory and Norwich will follow suit this year.

Paul Moody is confident that the strength of Britvic brands portfolio will enable it “to win in what will undoubtedly be still a pretty challenging market.” The Britvic chief executive continues: “The supply chain and particularly the development of our group capability will help underpin our EBIT margin ambitions.” J

Britvic Improves Bottle Drying Efficiency, Boosts Throughput and Saves on Energy With New Dryer n a poster in Britvic’s premises in Leeds O it says: “Our vision in Production is to become the World Leader in soft drink manufacture by 2012”. It will involve Britvic evaluating every stage of the production process if this goal is to be achieved.

One step in attaining this goal is the recent installation of a new bottle drying system that is helping to minimise downtimes to maximise production output whilst also reducing energy consumption.

Previously, there were two identical drying units installed in series on the 36,000 bottles/hr line in order to dry the bottles to ensure effective label adhesion. As well as not fulfilling this requirement effectively,

the machines did not incorporate bottle guide rails so there was a recurrent problem of bottles falling over causing line stoppages, lost production and product waste.

These ‘qualities’ resulted in moisture buildup inside the bottle dryers and product deposits on the bottles. The situation was made worse by the fact the units were not easy to clean.

These two units have now been replaced by a single ‘LNL’ unit from Air Control Industries (ACI) of Axminster. This LNL features ACI’s unique ‘JetPlate’ plenum air delivery system. This plenum system enables air to be delivered close to the bottles, whilst at the same time acting as guide rails to promote bottle stability during travel through the LNL, thereby helping to maximise throughput.

The LNL is a totally enclosed stainless steel unit with polycarbonate inspection windows. The blower unit is mounted on top of the bottle dryer enclosure to permit the use of adjustable mounting legs to facilitate installation – even as a retrofit - and for easy all round cleaning.

This version of ACI’s LNL with JetPlates is also able to handle all the different bottle sizes handled at the Leeds Britvic plant, from the 125 ml size for mixers up to the

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

750 ml bottle for J2O, without requiring adjustment.

With this installation, all these benefits are complemented by significant energy savings. This is because one blower-powered unit is replacing two, halving energy costs.

“The previous system was a nightmare,” says Mick Wigham, engineering team leader, Leeds. “Production hold-ups, ineffective drying, complicated set-up and fiddly to clean design, all combined to undermine efficiency. In contrast, the ACI bottle dryer enables us maximise throughput with no issues relating to the bottle drying function and it’s also easy to switch product runs.”

For further information contact Air Control Industries on Tel +44 (0)845 5000 501 or visit www.aircontrolindustries.com. J 29

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FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

I SOFT DRINKS

AG Barr Sparkles as it Breaks £200 Million Sales Barrier Having broken through the £200 million sales barrier and lifted profits by 20% while significantly outperforming the UK soft drinks market in its 2009 financial year, Glasgow-based AG Barr has now commenced a £10 million expansion programme at its Cumbernauld site in Scotland. ccording to AG Barr, the new dimension to our business.

UK soft drinks market, in Our sales growth continues to be contrast to the prior year, underpinned by substantial investwhen volume declined by ment in our brands and infrastrucover 2%, increased by 1% in volture. In the last year we have mainume terms and by 2% in value tained a tight control of all our terms in the 52 week period endcosts allowing us to improve maring 23rd January 2010. Indeed, the gins once again,” points out Roger difficult economic environment White. “We continue to face an appears to have had limited impact uncertain economic outlook with on the overall market and carbon- Roger White, chief executive, Ronald Hanna, chairman, and Alex Short, finance the additional challenge of substanates in particular have continued to director of AG Barr. tial operational changes across show good growth across the year.

2010/11. However, looking for“Consumers have continued to purchase a areas across the market,” he adds. ward we remain confident in our ability to wide repertoire of soft drinks and have maindeliver against our strategy.” tained a preference for established product Financial Performance groups that deliver both quality and value. AG Barr outperformed the UK soft drink Broader Portfolio Retailer branded soft drinks have not market to increase profit on ordinary activities AG Barr has been successfully broadening its increased their share of the market, perhaps before tax and exceptional items from £23.1 product portfolio, which was traditionally reflecting the competitive nature of pricing million to £27.9 million on turnover ahead by dominated by carbonates, headed by the Irnand promotion across the category as a 18.7% to £201.4 million for the twelve Bru brand. The company’s carbonates grew by whole,” explains Roger White, chief executive months to January 30th 2010. Like for like 10.1% in value terms, well ahead of the overall of AG Barr. “The soft drinks category has sales, stripping out the impact of the Rubicon market in 2009. The addition of Rubicon once again demonstrated its ability to deliver acquisition, increased by 10.6% as AG Barr’s helped the group’s still drinks and water seggrowth in volume and in value terms despite core carbonate brands and still juice brands ment, which also includes the Strathmore difficult macro economic conditions. The grew well ahead of the market. Indeed, the brand, to contribute £17.2 million to turnover landscape remains competitive but consumers group’s flagship Irn-Bru brand increased rev- growth. Indeed, still drinks and water now continue to respond well to both existing enue by over 5% with strong growth in account for 22.4% of group revenue, up from brands and products and to well executed England and Wales.

16.5% in the previous year. innovation.”

Having successfully integrated the Rubicon Market growth was driven by the strong juice business over the course of its last finan- £10 Million Investment performance of carbonates with all sectors per- cial year, AG Barr increased operating margins The UK’s largest independent soft drinks proforming strongly with the fastest growth com- by 1.2%. Net debt was reduced by 29.5% ducer has recently commenced an investment ing from energy drinks. The water market during the year and stood at £22.1 million on and restructuring programme, including a £10 recovered, registering 5% volume growth and January 30th last, reflecting continuing efforts million investment to expand production 2% value growth during the year. to improve cash management and capital effi- capacity at its Cumbernauld site in Scotland “Over the period we have seen excellent ciency across the business. and the planned closure of its Mansfield site in growth across our key brands as we look to “Our core business sales performance was England. This will entail moving between 60 appeal to more people, more often, in more excellent and the Rubicon brand has added a and 70 million litres of production from Mansfield to Cumbernauld.

“The £10 million investment at the Cumbernauld facility is largely about replacing Irn-Bru Gets Animated in New TV Advertising our filling capacity with higher output A new £3 million television and cinema advertising campaign for Irn-Bru, machinery which will allow us to consolidate has commenced in Scotland. The 60 second advert introduces audiences to all of the production from our Mansfield site a maverick Irn-Bru ‘Pied Piper’ and a cast of animated animals, who dance to his merry tune through country lanes and villages, demonstrating his into the Cumbernauld site,” says Roger phenomenal animal magnetism after taking a swig of the iconic drink.

White. “The investment is really about underAccording to Adrian Troy, Irn-Bru head of marketing, the new campaign pinning what we already do in Cumbernauld, “uses a compelling mix of live and animated action, and is a return to the but to make bigger, faster and more efficient classic and maverick Irn-Bru advertising that has brought the brand such iconic status over the years.” production facilities around the site.” J

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I DAIRY

£320 Million Capital Investment

by UK Dairy Processors Although 2009 was a tough year for UK dairy processors, the market fundamentals remain sound and reflecting this confidence in the long-term outlook, capital investment projects worth over £320 million are currently ongoing or just recently completed within the industry. ncompassing liquid milk, cheese, yoghurts and chilled desserts, yellow fats (butter, spreads and margarine) and cream, the milk and dairy products market in the UK is worth over £7 billion. The UK dairy industry is dominated by three big processors – Arla Foods UK, Dairy Crest and Robert Wiseman Dairies – along with two large, vertically integrated farmer-owned co-operatives - Milk Link and First Milk. A third co-operative, Dairy Farmers of Britain, collapsed in June 2009.

These leading players are broadly based dairy processors active across a number of market sectors, with the exception of Robert Wiseman Dairies, which specialises in liquid milk and cream. The ‘top five’ are currently implementing or have just finished capital expenditure programmes with a combined worth in excess of £250 million.

Other smaller processors are also investing in expanding capacity or to improve efficiency, with projects valued at £69 million.

E

World Leading Arla Foods is planning to invest in building a new one billion litres liquid milk dairy located on the outskirts of London as part of its UK growth strategy. The new facility is due to be operational in 2012.

“Incorporating the most sustainable Capital Investment in the UK Dairy Industry Company Capital Investment Arla Foods £140m Dairy Crest £75m Dale Farm £39m Robert Wiseman Dairies £24m Trewithen Dairy £11.5m First Milk £10m Milk Link £5m NOM Dairy £5m Jersey Dairy £5m Long Clawson Dairy £4m Meadow Foods £2.5m

Peter Lauritzen, chief executive of Arla Foods UK.

building techniques the dairy will be the largest, most efficient and environmentally advanced in the world,” says Peter Lauritzen, chief executive of Arla Foods UK. “We already have an industry leading site at Stourton, in Leeds, but our new, cutting edge, facility in London will be world leading and take dairy processing into the next generation.”

Arla Foods has also recently invested £70 million in expanding its UK flagship dairy at Stourton in Leeds, having already spent £100 million at the site, which processes milk for the major supermarkets as well as leading milk brand Cravendale. The additional investment at Stourton allows the site to process a range of fresh dairy products, including fresh cream and creme fraiche. It also permits Arla Foods to manufacture cottage cheese for the first time in the UK. Improving Efficiency Dairy Crest is to step up capital investment in its dairies division in order to improve the efficiency and infrastructure of its liquid milk operations and support its offering to key customers. The UK dairy group has earmarked £75 million over the next three financial years in addition to its normal replacement capital expenditure, to be funded from cash generated by the business.

“The increased investment in our liquid milk dairies will allow us to drive further cost efficiencies, remain competitive and maintain high levels of service to our customers,” says Mark Allen, chief executive of Dairy Crest.

Investment until now had been focused on the cheese business, where following the opening of the new Nuneaton packing plant, Dairy Crest has a world-class supply chain supporting its Cathedral City brand.

Dairy Crest has also continued to invest in other parts of the business; for example, at Foston where a modern greenfield dairy has been created, readily capable of further expansion.

Glasgow-based Robert Wiseman Dairies is now proceeding with the final phase of expenditure at its new Bridgwater dairy to take the overall annual capacity at the site to 500 million litres at a cost of £10 million.

Having recently completed a new £60 million dairy at Telford in Shropshire and launched its first British yoghurt brand, NOM Dairy UK is .building a new £5 million refrigerated warehouse.

The additional capacity when up and running later in the year will further improve operating costs and efficiencies at the site, as well as permit the growth in sales the company expects over the next few years. Last November, Wiseman opened a new £14 million depot at Amesbury which will be used to serve the south east of England more effectively. See ‘Sustained Capital Investment Pays Dividends For Robert Wiseman Dairies’ in this issue.

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Dale Farm to Invest £39 Million in Processing Operations

Mark Allen, chief executive of Dairy Crest.

Dairy Co-operatives Headed by new chief executive Kate Allum, dairy farmers co-operative First Milk is building a new £10 million state-of-the-art creamery on the Mull of Kintyre peninsula in Scotland. Milk Link, the UK’s other major dairy farmers co-operative and the country’s largest cheese processor, is investing about £5 million to expand and upgrade its dairy at Crediton. The project is part of the strategic refocusing of Milk Link’s long life milk and cream business, which entails consolidating all milk production at the Crediton dairy and closure of the smaller Kirkcudbright site in Scotland.

Regional Investment The UK’s largest Stilton cheese producer, Leicestershire-based Long Clawson Dairy, is investing about £4 million, including grant aid from the East Midlands Development Agency, to expand production capacity by 25%. Long Clawson currently produces 6,700 tonnes of cheese a year and exports over 1,000 tonnes to 36 countries worldwide.

“The expansion will enable us to fulfill the growing demand for Stilton worldwide and to develop new products, penetrate new markets and create new jobs locally as well as enabling us to make significant savings on our water and electricity resources,” points out Martin Taylor, chief executive of Long Clawson Dairy.

Backed by a £5.7 million grant from the South West Regional Development Agency, Cornwall-based Trewithen Dairy is increasing its production by 80% from 25 million to 44 million litres of milk a year. The £11.5 million development programme will include an expansion of production capacity for fresh milk, clotted cream and butter milk, along with improved infrastructure, investment in new equipment and purposebuilt new offices and staff facilities to replace the temporary accommodation.

Dairy Ingredients Specialist dairy ingredients supplier Meadow Foods is investing £2 million to expand manufacturing capacity and improve efficiency at its site at Holme on Spalding Moor in Yorkshire. Meadow Foods has an annual turnover of £250m and handles 420m litres of milk and over

Dairy processor Dale Farm, which is owned by farmers co-operative United Dairy Farmers, is to invest £39 million across its three sites in Northern Ireland in support of its rapidly growing sales in consumer products and specialist ingredients. The expansion programme is the largest ever investment in the Northern Ireland dairy sector by a single company and will create up to 60 new jobs.

The two key elements of the £39 million expansion programme entail investment of £16.3 million at Dunmanbridge to increase cheese and whey processing, focusing on more added-value products, and almost £10 million at Pennybridge on liquid milk processing facilities, aiming to develop this site as the leading centre of excellence for fresh dairy products on the island of Ireland. The Pennybridge development will incorporate a bottle blowing in-plant (Ireland’s largest) as a result of a £3.25 million investment by packaging group Nampak, with support from Invest NI. A further £316,000 will be spent on improving the competitiveness of Dale Farm’s butter and dairy spreads processing and packing operation at Cullybackey, near Ballymena, while a £12 million investment will be made in working capital mainly to fund the significant additional cheese stocks resulting from the planned expansion.

The first phase of Dale Farm’s investment involved the installation of a new 50,000 tonne per annum cheddar cheese plant and a whey ultra-filtration plant, costing £5 million, at the Dunmanbridge site.

“This major investment programme will enable us to further develop our added value sales in the UK and Ireland as well as into key export markets. In tandem with our other ongoing investment in skills, innovation and marketing it will enhance our ability to supply major retail, foodservice and ingredients customers,” says David Dobbin, chief executive of Dale Farm. “Overall, the investment will provide the best in class capability and economies of scale that we need to compete more effectively against major international competitors.”

80,000 tonnes of cream each year from a network of 400 farmers nationwide.

It recently acquired Nene Valley, a subsidiary of the failed Dairy Farmers of Britain and a leading processor of packaged cream for the food ingredients market, for an undisclosed sum. “Our strategy is to develop our business to provide long term security of supply of critical dairy ingredients to the major food manufacturers in the UK,” says Simon Chantler, executive chairman of Meadow Foods.

Yoghurt Market Having recently completed a new £60 million dairy at Telford in Shropshire and launched its first British yoghurt brand,

The UK’s largest Stilton cheese producer, Leicestershire-based Long Clawson Dairy, is investing about £4 million to expand production capacity by 25%.

NOM Dairy UK is .building a new £5 million refrigerated warehouse at the site. Part of NOM, the leading dairy products company in Austria, NOM Dairy UK was established in 2008.

According to David Potts, chief executive of NOM Dairy UK, over half of the £1 billion UK yoghurt market is supplied by imported product, which provides a massive opportunity for local supply.

Largest Ever Investment in Northern Ireland In Northern Ireland, Dale Farm, which is owned by co-operative United Dairy Farmers, is investing £39 million across its three sites in support of its rapidly growing sales in consumer products and specialist ingredients (see Panel). The expansion programme is the largest ever investment in the Northern Ireland dairy sector by a single company.

On the island of Jersey, work is underway on a new £5 million purpose built dairy at Trinity. Capable of processing all of the island’s milk, the new dairy will increase production and efficiency and help in the development of export sales for Jersey Dairy, the island’s sole dairy processor. Jersey Dairy manufactures a range of dairy products including milk, butter, cream, creme fraiche, yoghurt and ice cream. See ‘Work Starts on New Jersey Dairy’ in Food & Drink Business Europe, September 2009 issue. J

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I DAIRY

Sustained Capital Investment Pays Dividends For Robert Wiseman Dairies Robert Wiseman Dairies, which controls more than 27% of the UK’s fresh liquid milk market, is reaping the benefits of sustained capital investment in advanced dairy and distribution capacity. he investment in additional capacity has allowed Robert Wiseman Dairies to increase milk sales volume by over 11% last year, on a like-forlike 52 weeks basis, to reach record levels, so benefiting from the strong trading of its customers. Having won additional business with retailers including the Co-op, Spar and Sainsbury, the Glasgow-based dairy group will report turnover and profit ahead of expectations when it announces its preliminary results for the year ending April 3rd 2010 on May 17th.

T

On Track “We are on track for a very satisfactory set of results,” points out Billy Keane, group finance director of Robert Wiseman Dairies. “Looking forward to next year, we are in good shape with volumes growing, a sound balance sheet, low gearing and stateof-the-art facilities.”

Robert Wiseman Dairies is one of the UK’s ‘big three’ dairy groups. Unlike the other leading players, Dairy Crest and Arla Foods UK which are broadly-based dairy processors, Robert Wiseman Dairies specialises in producing fresh liquid milk.

Employing over 4,500 people, Robert Wiseman Dairies processes and distributes over 1.6 billion litres of milk annually from

Opened in 2008 with an initial capacity of 250 million litres per annum and following investment of £80 million, the Bridgwater dairy is believed to be Britain’s most efficient and environmentally advanced fresh milk dairy.

more than 20 sites across the UK, from Cornwall to Aberdeen.

Expansion Robert Wiseman Dairies is currently spending £10 million to expand the capacity of its state-of-the-art dairy at Bridgwater in Somerset to 500 million litres, having already expanded the facility from 250 million litres to 375 million litres late last year, at a cost of £7.5 million.

Opened in 2008 with an initial capacity of 250 million litres per annum and following investment of £80 million, the Bridgwater dairy is believed to be Britain’s most efficient and environmentally advanced fresh milk dairy, and is designed to set new standards in minimising the use of energy, water, plastics and food miles.

The planned final phase of capital expenditure at Bridgwater, taking capacity to 500 million litres, is scheduled for completion

by October 2010.

Further Efficiencies Robert Wiseman Dairies’ new £14 million distribution depot at Amesbury in Wiltshire is also now on stream. Once the transfer of runs from other depots is complete, operation of the new facility will result in efficiencies in trunking and distribution costs. The Amesbury depot is strategically located to serve the group’s customers in London, the South and South East of England.

The new Amesbury depot will provide the additional capacity required within Robert Wiseman Dairies’ distribution network to complement the planned increase in capacity at Bridgwater. The additional capacity, when up and running, will further improve operating costs and efficiencies at the site, as well as providing the means to continue the growth in sales targeted over the next few years.

“With the completion of the investments at Bridgwater dairy and Amesbury depot

Robert Wiseman, chief executive of Robert Wiseman Dairies.

we are well placed to continue the growth in volumes and to improve operating margins in the medium-term,” explains Robert Wiseman, chief executive of Robert Wiseman Dairies.

In the first six months ended October 3rd 2009 Robert Wiseman Dairies increased pre-tax profit by 81.4% to £21.0 million and operating profit by 62.4% to £21.6 million. Sales volumes were up 11.3% to 851.3 million litres and turnover rose by 7% to £423.9 million, reflecting a 3.9% decline in average selling price compared to the same period in the previous year.

Development Strategy Central to Robert Wiseman Dairies’ development strategy has been constant investment in modern and efficient facilities, along with fostering close relationships with dairy farmer suppliers and the company’s customer base. This approach has allowed the fresh milk processor to expand from its Scottish base throughout the UK. In the last six years Robert Wiseman Dairies has invested about £200 million in new land and buildings, dairy equipment, depots, vehicles and IT infrastructure. This investment has enabled the group to maximise its scale, minimise wastage and operate at record levels of efficiency throughout its operations. J

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DLoG Has the Bottle For Robert Wiseman Dairies ith the opening of its latest facilities in Taunton, Somerset, Robert Wiseman Dairies now processes and distributes more W than one in four litres of fresh milk in Britain, every day, requiring highly automated plant and equipment. Here, robust shopfloor PC terminals from DLoG are providing the solution.

In January 2009, the company began evaluating a potential hardware solution for the new facilities. Based on previous positive experience at Droitwich, where the company had used DLoG’s MPC-series, DLoG was again selected as the preferred supplier. States Andy Anderson: “The DLoG IPC-series we chose fitted the environment and we liked the robust nature of the units. We carried out assessments to ensure suitability and were also impressed by the physical vibration and jolt testing procedure carried out by DLoG.” At the Droitwich site DLoG units are used in a chilled environment at 3 to 4 C and the staff using them had no prior experience of computers. DLoG terminals have also been installed at the

packing area where the screen provides the operators with a realtime view of what is happening in production. The mobile MPC units are located on the trolley packers used to load the milk into the customer trolleys and are regularly hosed down with water and some chemical cleaning agents, but the robust touch screen interface and IP 67 enclosure rating means they carry on working.

Andy Anderson confirms: “It’s why we chose DLoG. Although the environment at Bridgewater is nothing like as harsh, the cast and machined aluminium body provides an IP67 enclosure which would probably operate under water.”

He continues: “DLoG certainly pulled out all the stops for us. We had a tight eight week timeframe and knew that the infrastructure would be the pivotal point, because our plant runs around-the-clock six days per week. DLoG’s flexible approach and willingness to listen to our needs is important to our future business plans.” J

I PROJECT MANAGEMENT

Dairy Crest Partners With Coriolis to Deliver Capital Expenditure Programme ollowing the recent decision to invest F over £75 million during the next three years, to upgrade the liquid milk dairies, Dairy Crest has announced that it has chosen to work with project management specialists, Coriolis, in order to achieve the best value for its investment.

Gordon Maughan, operations director of Dairy Crest’s liquids division says: “Having worked with Coriolis on a number of projects over the years we believe they have a good understanding of our business, as well as knowing how to successfully projectmanage complex investments.”

Mark Dudley, managing director of Coriolis, adds: “We welcome the chance to work with Dairy Crest to help them optimise their expenditure. Capital investment projects of this size are complex in detail and it is imperative that strategies are put in place to ensure that capital is managed effectively. These projects are often considered to 38

Dairy Crest is the UK’s leading chilled dairy foods company.

be purely engineering, however many work streams from supply chain to operations must be managed effectively in order to deliver the benefits on time, in full.”

Dairy Crest is the UK’s leading chilled dairy foods company. Manufacturing a range of well known brands including Cathedral City, Country Life, St Hubert Omega 3, Clover and Frijj, Dairy Crest also supplies milk to retailers throughout the country, from major supermarkets to village stores and milkmen delivering to thousands of homes in England and Wales each day.

Coriolis is a consultancy specialising in services to food manufacturers. These include capital project management, performance improvement, management information systems, lean coaching and environmental auditing. Coriolis has been used by many of the top 150 food companies since its foundation 13 years ago. J

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I DAIRY

Anhydro to Supply Spray Dryer Plant to Meggle in Germany nhydro has won an order to supply a spray A dryer plant to Meggle, one of Europe's leading manufacturers of milk powder and butter products. The plant features the very latest drying technology and will be constructed at Meggle's main German factory. The order is worth about DKr50 million (Eur6.7 million).

Meggle produces milk-, cream- and butter products from factories in Germany and Eastern Europe. It employs about 1,800 people and has an annual turnover of about Eur650 million.

“As of the end of 2010 the plan is that, employees at our main production site in Wasserburg, Germany will benefit from a brand new spray dryer plant,” says Dr Thomas Roth, director of production and technics at Meggle.

“Meggle was looking for a new spray dryer plant, and they had very high demands regarding the plant’s functionality and capacity,” explains Thomas Holst, managing director of Anhydro and vice-president EMEA at Anhydro.

After closely evaluating different suppliers’ offers, Meggle chose Anhydro. The main reason for choosing Anhydro was the fact that Anhydro´s offer was the best when looking at functionality and price. The main product which the new facility will deliver is coffee whitener. The new plant features a so-called three-stage dryer which can deliver three tons of powder an hour.

In order to ensure that production process runs as smoothly and evenly as possible (ie without variations in production levels from summer to winter), Meggle has chosen to equip the unit with a special de-humidifier which removes moisture from the main air. The additional de-humidifier investment will have paid for itself after just three years. ”Our ability to maintain production quantities is key to our competitiveness,” explains Dr Roth.

The new Wasserburg plant is currently under construction and everything is running according to the plan. The building will be 25 meters long, 15 meters wide and 50 meters high. J

Anhydro to Deliver Four Spray Drying Plants to Project in Venezuela nhydro has recently won an order to A supply the Chemtex Group of Italy with 4 large spray drying plants for animal feed powder production in Venezuela. The combined production facility will have a capacity of 460 tons per day of powder.

The Chemtex Group is a global engineering company with headquarters in Italy, and operates all over the world. In Venezuela the Chemtex Group is engaged in ‘The Fodder Yeast’ project, which is a project aimed at building a new production

facility for animal feed powder.

Recently Chemtex signed an agreement with Anhydro for the delivery of four complete animal feed powder production plants, which is a key element of ‘The Fodder Yeast’ project. The plants are designed with complete automatic control systems and based on Anhydro’s state-ofthe-art technology the Anhydro CSD dryer.

“I know that our team was selected for a number of reasons, among others our ability to provide a fast and professional solution, the ability to provide a complete solution design, building, installation and commissioning of the plant,” says Michael Christensen, sales manager at Anhydro.

Chemtex and The Fodder Yeast project is one of the biggest customer wins for Anhydro this year.

“The deal clearly shows how the expertise we have built up over the years in the spray drier area is paying off,” points out Thomas Holst, managing director of Anhydro and vice president for Anhydro EMEA. J

I FOOD INGREDIENTS

Nutritional and Functional Whey Protein Ingredients From Carbery arbery is a major international food C ingredients and cheese manufacturer headquartered in Ballineen, County Cork, Ireland. It is owned by four Irish co-operatives, employs approximately 300 people and has a turnover approaching Eur180 million.

Carbery’s whey protein ingredient portfolio includes Whey Protein Concentrates (WPC), Whey Protein Isolates (WPI) and Hydrolysed Whey Proteins (HWP) which can be easily incorporated into cereals, bars, supplements and beverages and offer different levels of functionality and nutritional enhancement.

Carbery manufacture a range of whey protein ingredients including the Isolac range of WPIs which have excellent biological properties and work well with many flavours to enhance a wide range of applications, such as functional waters, energy drinks, recovery drinks and sip feeds.

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

Carbery’s next-generation HWP range – Optipep – is pre-digested for quick absorption, and offers a clean taste profile. The whey dissolves quickly, has excellent heat stability and overcomes shelflife and moisture retention issues.

The company’s Low Lactose WPC ensures lactose-intolerant people can also gain from the many benefits of whey protein.

For further information visit www.carbery.com. J 39

Top 10 Food and Drink Export Products, 2009

I INTERNATIONAL TRADE

UK Food and Drink Exports Reach Record Levels xports of British food and nonE alcoholic drinks have reached record levels, according to new research for the Food and Drink Federation. With food and drink exports growing in value by 4.4% to £9.65 billion in 2009, a fifth consecutive year of growth, the food and drink industry significantly outperformed other manufacturing sectors, which experienced an 11.8% slump in overseas sales.

Within the overall export success of the UK's largest manufacturing sector, key highlights include: • Non-alcoholic drinks was the best performing sector, growing 20.6% to £318.6 million, driven by strong sales in EU markets such as Ireland, France, Spain and Germany.

• Fish and seafood was up by 15% to £1160.4 million, including a 42.3% rise in the exports of fresh salmon.

• Other added value product areas in strong growth included breakfast cereals (up 17.2%), sauces and condiments (up 9.2%) and sugar confectionary (up 10.9%).

The EU remains the main destination for UK food and drink exports, accounting for 79.2% of overseas sales. But significant growth has been recorded outside Europe - with sales to the Oceania region up 15.9% and exports to North America jumping 14.8%.

“This is the fifth consecutive year of record exports by the food and drink industry – demonstrating the significant economic value of our sector,” points out Melanie Leech, director general of the Food and

Drink Federation. “This strong performance is testimony to the persistence and entrepreneurial spirit of British manufacturers – as well as a reflection of the quality of what they produce.” J

1 2 3 4 5 6 7 8 9 10

Breakfast cereals Chocolate Lamb Fresh fish Soft drinks Cheese Beef Crustaceans Poultry Sweet biscuits

Top 10 Export Markets Country 1. Ireland 2. France 3. Netherlands 4. Germany 5. Spain 6. Italy 7. Belgium 8. United States 9. Denmark 10. Portugal

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Sales £2,589.0m £1,211.4m £847.8m £659.9m £579.7m £451.0m £373.5m £303.0m £160.2m £153.6m

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

2009 (£m) 413.4 365.9 311.9 309.0 291.5 282.6 257.5 238.9 229.3 220.9

% change 08-09 17.2 1.1 18.6 28.2 23.4 0.5 20.8 -1.4 5.5 8.3

I BREWING

Carlsberg Stays Ahead in Challenging Market Carlsberg managed to protect earnings and improve overall market shares despite a fall in sales within a declining overall beer market in 2009. elped by acquisitions, Carlsberg increased operating profit from DKr8.0 billion to DKr9.4 billion (Eur1.3 billion) in 2009 on net revenue down by 1% to DKr54.9 billion.

However, excluding currency impact, total net revenue would have increased by 6%.

The Danish brewer’s beer volume rose by 6% to 116 million hectolitres, although this represented an organic decline of 4% with net acquisitions contributing 10%. Throughout the year Asian volumes continued to exhibit high single-digit growth rates but Eastern Europe and Northern and Western Europe volumes declined organically by mid-single-digit rates.

“2009 was a challenging year for Carlsberg and the global brewing industry. The global economy affected consumer behaviour negatively and overall beer market volumes declined. While the Asian markets were less affected by the crisis, the Northern & Western European and, in particular, the Eastern European markets were materially impacted.

Although consumers reduced their consumption, they remained loyal to their favourite brands leading to a positive price/mix across many markets. This occurred despite the negative channel mix from on-trade to off-trade,” explains Jorgen Buhl Rasmussen, chief executive of Carlsberg.

H

Operating Margin Carlsberg’s group operating margin increased from 13.3% to 15.8% and net profit from DKr2.6 billion to DKr3.6 billion in 2009.

Driven by the focus on cash flow improvements throughout the group, free cash flow was exceptionally strong at DKr10.5b. Higher profits, lower capital expenditures and a significant year on year improvement in working capital were the main reasons behind this. Of the DKr1.3 billion synergy target related to the Scottish & Newcastle acquisition, about DKr970 million of annualised savings had been achieved by the end of 2009.

Of course, the joint acquisition with Heineken of Scottish & Newcastle gave Carlsberg full ownership of Baltic Beverage Holdings, the largest brewer in Russia and a leading player within the beer market in Eastern Europe.

Decline in Russia In the important Russian market that declined

Continuous efficiency improvement across its entire production and supply chain helped Carlsberg to increase operating profit for 2009.

by around 10% in 2009, Carlsberg improved its market share from 38.8% to 40.6%.

However, due to the 200% increase in excise duties from the start of this year, Carlsberg expects the Russian beer market to show a low double-digit decline in 2010 but the Danish brewing giant is confident that it will continue to outperform the market. Indeed, the Russian situation is expected to negatively impact Carlsberg’s 2010 operating profit by DKr300m.

“Carlsberg was well prepared entering 2009.

In late 2008 and early 2009 the group implemented and accelerated numerous efficiency improvement initiatives to protect earnings and improve cash flow and as a result was able to mitigate the impact from the declining markets. Carlsberg delivered a strong operating profit improvement, improved overall market shares and delivered a very substantial free cash flow improvement,” he says.

investors; in Germany, the brewery at Braunschweig was sold to Oettinger Brauerei; while production at the brewery at Pori in Finland was discontinued. Having closed its brewery site in Copenhagen in 2008, all Danish production has now been centralised at Carlsberg’s expanded facility in Fredericia.

Similarly, Carlsberg also plans to shut its brewery in Leeds in 2011 as it consolidates English beer production at its site in Northampton, where annual capacity will be expanded from 4.5 to 6 million hectolitres.

“The move forms part of the Carlsberg Group supply chain strategy for Northern & Western Europe built around concentrating production at fewer sites to optimise our supply chain structure. Once the development has been completed we are confident that the Northampton Brewery will be one of the most efficient breweries in the world,” explains Kasper Madsen, head of group supply chain and senior vice president of Carlsberg. The development at Northampton is expected to be completed by mid 2010.

Another efficiency enhancement initiative during 2009 was the integration of Carlsberg’s global R&D, innovation, sales and marketing activities into one organisation.

Strategy for 2010.

For 2010 profitable market share growth through accelerated initiatives on brands and innovations will be a top priority for Carlsberg as well as continuing its focus on efficiency improvements. “While we expect consumer dynamics to be challenging in 2010, we also see many opportunities to strengthen our position in key Efficiency Improvement markets,” Jorgen Buhl Continuous efficiency improveRasmussen remarks. ment across its entire producFor 2010 Carlsberg expects tion and supply chain, which is operating profit to be in line a feature of the Carlsberg busiwith that reported for 2009 ness model, helped Carlsberg to and net profit growth of more increase operating profit for than 20%. Carlsberg has set 2009 despite the fall in net rev- Jorgen Buhl Rasmussen, chief new medium-term (3-5 years) enue as overall market beer vol- executive of Carlsberg. operating margin targets of umes declined.

15-17% for Northern & In 2009, Carlsberg either closed or divested Western Europe (previously 14-16%); 26three breweries within the mature beer mar- 29% for Eastern Europe (previously 23-25%); kets of Northern Europe. In Norway, the with new targets of 15-20% for Asia and Arendal brewery was sold to a group of local about 20% for the Carlsberg Group. J FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

41

High Throughput to Combat a Big Thirst arlsberg Breweries’ new production and C distribution centre in Fredericia is the biggest investment project in the history of the Danish brewer. SSI Schaefer, Giebelstadt was appointed as the general contractor.

The plant was to be built within barely 14 months after the order had been issued.

Rack-operating devices, pallet conveyor technology with an electric suspension rail and Schaefer Compact Cranes (SCC) as well as a SSI Schaefer perfectly-customised warehouse management system ensure efficient processes and high throughput.

An 8-aisle ‘in-house rack’ with a height of 7 m and 6,000 pallet storage positions will

42

act as a buffer for empty refreshment drink units and the smaller part of the production.

Eight SCCs which can look after inputs and retrievals of up to 250 pallets/hour are being used as rack-operating devices. The automated inhouse high-bay warehouse would barely have been feasible without the special design of the rack-operating devices. A further 76,000 storage positions for ready-toship drinks pallets are available in the 18 aisles of the 9,000 sq m 41 m high-bay.

Storage is single-deep.

In total, almost 2,000 conveyor technology components, roller/turning roller tracks, chain conveyors, corner switchers and shifting carts were built into the new distribution centre. They are supplemented by an electrical suspension rail with a driving length of 4 km and 265 vehicles. The installation has been fully operational since November 2008. “The plant is optimally designed in terms of its performance-customisation for our high standard throughputs as well as

demands during peak periods,” explains Lars G. Hansen, logistics manager at Carlsberg Breweries. J

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

that contribute to making the world a more sustainable place. J

New Sanitary Bulk Bag Conditioner From Flexicon

Flexicon (Europe) has announced a new Sanitary Bulk Bag Conditioner for loosening bulk solids material that has compacted during storage and shipment, allowing discharge from bulk bag unloaders through the bag spouts. The stainless steel conditioner features two hydraulic rams with specially-contoured end plates that press opposite sides of bulk bags. The sanitary model is intended for bulk bags containing solidified bulk food and other contamination-sensitive products that cannot be loosened using pneumatically-actuated flow promotion devices integral to bulk bag dischargers. The unit measures 2210 mm H x 3380 mm W x 1980 mm D and accommodates bulk bags of all popular sizes. For further information contact Flexicon (Europe) on Tel +44 (0)1227 374710 or visit www.flexicon.co.uk. J

Oxoid Brilliance Staph 24 Agar Identifies Staphylococci Within 24 Hours

Oxoid, a world leading microbiology brand, has launched Brilliance Staph 24 Agar - a selective and diagnostic chromogenic medium for the isolation and enumeration of coagulase-positive staphylococci (CPS) in foods, within 24 hours. Staphylococci are found in a broad range of foods, including meat, dairy, bakery and ready-to-eat products. Oxoid Brilliance Staph 24 Agar allows the isolation and enumeration of CPS 24 hours earlier than with traditional media (such as Baird-Parker Egg Yolk Tellurite Agar) which take at least 48 hours for a result. On Brilliance Staph 24 Agar, CPS will grow as dark blue colonies on a clear agar background, allowing rapid, easy identification and enumeration within 24 hours.

For further information contact Oxoid on Tel +44 (0)1256 841144 or visit www.oxoid.com. J

decontamination process to find that only one Campylobacter isolate was collected from the treated crates compared to 44 isolates collected from the untreated crates. For further information contact Priorclave on Tel +44 (0)208 316 6620 or visit www.priorclave.co.uk. J

Crowcon Carbon Dioxide Detectors Keep Workers Safe in Italian Winery

Stainless Bulk Bag Conditioner with variable height turntable loosens bulk solid material that has solidified during storage and shipment.

Grundfos Well Positioned For the Future

Although 2009 was a very difficult trading year right across the globe, Grundfos Pumps managed to achieve a satisfactory result.

Turnover was £1.7b against a figure of £1.9b in 2008 with a profit of 5.1%, which in the current economic climate is a very acceptable outcome. The Grundfos Group, by taking early prudent steps, significantly reduced its negative net balance by the end of 2009, which puts the company in a very strong position to capitalise on all opportunities as world markets continue to recover.

In terms of the future, the strategy of innovation will continue to be central, and the Grundfos R&D effort in 2010 will focus on continuing to develop products and services

Priorclave Combats Surface Microbial Growth

Priorclave’s range of autoclaves helps the food and pharmaceutical laboratory environments to reduce their risk of cross contamination. The surface coatings of the cabinets contain silver-based, BioCote technology, dramatically reducing microbial growth.

BioCote has been proven to work many times through environmental studies across many disciplines, the most recent of which have been undertaken within the food industry.

At KJ Cooked Meats, products (eg doors) with BioCote were compared with those without, the combined average reduction in microbe levels was an astonishing 96% fewer on the treated surfaces. Campylobacter has contributed to cross-contamination of chickens during transportation in crates around the poultry rearing and process system.

Biocote conducted trials on treated and nontreated crates at all critical points of the

The Selvapiana winery in Italy’s Tuscany region is using Crow-con’s Cellar-Safe and Xgard fixed CO2 gas de-tectors to pr-otect wor-kers in the winery’s cellars.

At Selvapiana two CellarSafe CO2 detectors and one Xgard CO2 detector are installed in the winery’s cellars. The CellarSafe units provide two levels of protection: firstly, if CO2 concentrations exceed a certain threshold, extractor fans are automatically triggered; secondly, an 82dB alarm is triggered to warn workers to vacate the cellar immediately. The Xgard detector is linked to a Parsec SAEn5000 control unit that constantly displays ambient CO2 levels on a computer screen in the control room. More information on Crowcon’s safety products for wineries and breweries can be found at www.crowcon.com. A copy of the company’s new Winery and Brewery Industry brochure can also be obtained by calling +44 (0) 1235 557700 or by e-mailing sales@crowcon.com. J

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

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I LEAN MANUFACTURING

Wondering where your next buck is coming from? You may be sitting on it

By Ed Handyside, Director of Forward Vision he current commercial and financial climate is a perfect time to launch or T sharpen Lean disciplines. Not only do these improve quality and service levels by providing operations managers with new skills and insights, they also help to put more cash into the business.

Lean business starts and ends with product and service quality: not just for commercial customers but to each and every function, department, team and individual within the business. These represent the internal value stream, where each stage of the operation is dedicated to delivering excellence to the downstream process.

Lean is about distinguishing between fat and muscle; between activity that adds value which customers are willing to pay for and waste. It is about pleasing customers, at the lowest possible cost and with the minimum consumption of resources.

Lean is a discipline that depicts productivity as speed rather than volume. By keeping products moving though the factory we not only achieve superlative delivery capability and a lightning-fast response to customer demand, but also improve capacity. Furthermore, by reducing to a minimum the dwell time in the supply chain, we can significantly reduce the capital burden on the business.

Delivery Performance

A core aspect of Lean is delivery performance, and yet the most common excuse for not pursuing Lean disciplines is the belief that we need stocks and inventories to respond to short lead times and changing customer demands. Actually the reverse is true.

The arithmetic is essentially simple: if we can halve our product changeover and clean-down times we can halve our batch quantities. This halves the throughput time needed to convert raw ingredients to finished product, increases our forecast accuracy and our response time to demand changes. We can now achieve

preparation department frantically start pulling together the ingredients for the new job. Unfortunately, all the asparagus was used up in the earlier job that’s now abandoned and there’s normally a tenday lead time for asparagus - so the business orders, from a more expensive source, and pays a further premium for delivery. JIT in this instance means Job In Taxi. delivery performance whilst reducing by 50% our finished inventory, the costs of warehousing and our exposure to date code problems.

Wasteful Overproduction

The extent to which Lean disciplines can protect us from the capriciousness of our customers is often underestimated.

Wasteful overproduction is not just caused by producing more than the quantity ordered, it also occurs when we produce the right quantity but sooner than we need it. Virtually all Shift Managers and Supervisors understand the value of Just-In-Time, even though they may not be conscious of it. Those driven to despair by production schedules that seem to change several times daily, and by the costly and debilitating chaos that ensues, are not the victims of fickle retailers or inept planners but of overproduction.

Suppose that a company making canned soups receives an order for delivery a week from today. It only takes four hours to convert the ingredients into palletised cases ready for despatch.

However, because the ingredients are in stock and there is a cooking vessel, a filling and packing line and a work team available it is scheduled for immediate production.

Two days later the customer changes the order: they now want something else instead. The processed soup is shoved into a blast-chiller in the hope that it can be used on another order before it has to be sent to landfill, the lines are hurriedly switched over to another product and the

Different Approach

A Lean operation would behave differently: if it only takes a few hours to produce the product then the job will be started no earlier than the day before. This time when our valued customer calls up to cancel or change the order we can say that we are happy to oblige in the knowledge that there will be no disruption or unplanned business loss - they don’t need to be told that half of the ingredients haven’t even been ordered in yet.

So, if Lean businesses enjoy better profit margins, achieve higher quality and service levels and are largely immune to being ambushed by their own customers, why are genuinely Lean Food and Drink factories such a rare species?

One of the answers is that Lean operations place higher demands on managers at all levels. Without the costly comforts of buffer stocks, businesses have to work much harder to eliminate errors, maintain equipment in peak condition and ensure operational teams function to the best of their ability. But all that, as they say, is another story.

For Further information please contact Coriolis Ltd on Tel +44 (0)8452 263364 or visit www.coriolis.co.uk.

Ed Handyside is founder and director of Forward Vision, a division of Coriolis Ltd. Originator of Nissan UK’s management and productivity training programmes and author of Genba Kanri: The Disciplines of Real Leadership in the Workplace (Gower, 1997) he has been a practitioner and innovator in Lean Manufacturing for over 25 years. J

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

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The Creation of a Global Leader in Food Ingredients and Bioenergy ereos Group is to create Tereos T Internacional, a global leader in food ingredients and bioenergy, by combining its Brazilian-listed subsidiary, Acucar Guarani with Tereos Group’s European cereal assets (SYRAL, BENP, DVO and their subsidiaries) and its Indian Ocean sugarcane assets. With pro-forma 2009 annual sales of approximately US$2.5 billion and EBITDA of US$366 million, the newly created company will produce sugar, starch-based products and alcohol for the food and other industries and bioenergy (ethanol and electricity).

Tereos operates 33 production facilities in Europe, South America and Africa.

With headquarters in Sao Paulo, Brazil, Tereos Internacional envisages a dual listing on BM&FBOVESPA and NYSE Euronext Paris. It will be headed by chief executive Andre Trucy, the former managing director of Rhodia in Brazil, and chief executive of European starch producer Roquette.

Step-change The step-change in scale resulting from this combination will enable Tereos Internacional to play a leading role in the sugar, starch and bioenergy industries.

With sales in more than 100 countries, Tereos Internacional will leverage its broad geographical footprint to serve global customers in the food and beverage, energy, animal nutrition, pharmaceutical and other industries as they expand internationally.

The strategic combination will give Tereos Internacional a foothold in both developed and emerging markets while providing it with the improved financial structure and capacity to seize growth opportunities including in new products, such as health and nutrition and green chemistry, and in fast-growing countries in the Americas and Asia.

Tereos Group has been a long-standing supportive shareholder of Guarani (with an approximately 69% shareholding) and intends to remain the majority shareholder of Tereos Internacional. Tereos Internacional will be its sole global investment vehicle for diversification outside its historical European beet sugar business.

“Over the past decade, Tereos has become a major player in the sugar and ethanol industry in Brazil and the starch business in Europe. By combining these activities in a new company that will have strong presence in Brazil and in Europe, we are taking a decisive new step to accelerate our growth strategy. This combination will allow us to be a key actor in the rapidly-consolidating food ingredients and bio-energy industries and will position us to be able to conquer new markets,” com-

Tereos specialises in the primary processing of sugar beet, sugarcane and cereals.

ments Philippe Duval, chairman of Tereos’s executive board.

Global Producer Tereos is a co-operative agro-industrial group that specialises in the primary processing of sugar beet, sugarcane and cereals. Thanks to the commitment of the 12,000 French farmers who are its cooperative partners, the Tereos group has expanded considerably over the last twenty years, increasing its total production of sugar, starch and alcohol by a factor of 50.

This expansion enables Tereos to respond to the challenge of increasingly international markets and volatile commodity prices.

Its 33 production facilities in Europe, South America and Africa offer long-term outlets for 900,000 hectares of cultivated farmland. Tereos has a workforce of 13,500 permanent employees involved in producing and processing sugar beet, sugarcane and cereals and marketing a comprehensive range of sugars, starches and bioethanol, along with by-products used for animal feed and power generation. For further information visit www.tereos.com. J

Ulrick & Short Celebrations Take Centre Stage lrick & Short, one of the leading develU opers, suppliers and manufacturers of clean label ingredients, celebrated its 10th anniversary and showcased its renowned clean label range at the recent Food and Drink Expo. Ulrick & Short presented its tapioca, corn and wheat based ingredients at the show.

With food manufacturers now under even more pressure to reduce saturated fat levels in food, Ulrick & Short also addressed these issues and explained how its tapioca range of clean label products can help replace both butter and other fats and oils.

The company’s team of food technologists were on hand throughout the four day show 46

to discuss the significant cost savings that can be achieved using Ulrick & Short’s highly functional ingredients, which can be declared as well known traditional kitchen cupboard staples.

Ulrick & Short has carried out extensive product evaluation and development over the last ten years to help cultivate this highly functional and versatile product. Its range of ingredients is continuing to expand and the company's forward thinking approach and natural instinct will ensure that it stays ahead of the competition.

For further information contact Ulrick & Short on Tel +44 (0)1977 620011 or visit www.ulrickandshort.com. J

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

Oakland’s Distribution Contracts Good News For Irish Depot The Ashbourne distribution hub of Oakland International and Caffrey International continues to bear fruit, with new distribution contracts helping to increase employment at the site. Launched in May 2009, the multi temperature operation has secured a number of vital contracts supplying the Irish, UK and European markets, resulting in the need for additional staff and the subsequent appointment of Lesley Little, to the position of stock controller.

Planning on moving up to 1.5 million cases of product over the course of 2010, Oakland is known for delivering a high service level value offer, working with significant contracts and delivering into all major retailers throughout Ireland. Every aspect of delivery paper-based procedures is overseen by Oakland including POD, reconciliation processes and collation of monthly KPIS. For further information contact Oakland International on – Ireland Tel +353 Oakland’s Irish general manager, (0)1835 4855 – UK Tel +44 (0) Richard Hill and newly appointed stock 1527 596 222 – or visit www.oakcontroller Lesley Little. land-international.com. J

I

REFRIGERATION

Star’s Fast Track Chiller Solution Food and drink supply chain specialist Culina Logistics has invested in an environmentally efficient chill store cooling system from Star Refrigeration. Culina Logistics required a refrigeration plant for a 100,000 sq ft chill store at its new distribution centre in Avonmouth, near Bristol in England.

Working to a strict time schedule, cool- Star’s Azanechiller refrigeration plant. ing solutions specialist Star designed and installed a high efficiency refrigeration plant incorporating two of its Azanechillers. These ammonia packaged chillers are complete refrigeration systems, ideally suited to temperature controlled storage as well as food processing, building services and process cooling. Star’s engineering team designed, built and installed the final Azanechiller plant within a total of 18 weeks. For more information contact Star Refrigeration on Tel +44 (0)141 638 7916 or visit www.starref.co.uk. J

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

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I AUTOMATED WAREHOUSING

Partner Logistics Opens Britain’s Largest Cold Store artner Logistics, the NetherlandsP based specialist in operating highly automated warehouses, is nearing the

Partner Logistics’ site at Bergen op Zoom in the Netherlands. When this development is completed and the extra completion of its new £50 million 52.000 pallet locations come on stream facility at Wisbech, Cambridgeshire in in early December, the Bergen op Zoom England. facility will be housing and handling up Incorporating fully automatic storto 180,000 pallets, making it by far the age and pallet handling and unloading, largest site in the world for frozen storand standing 35 metres high, the new age.

20,000 square metre building is creditIn addition to Wisbech and Bergen op ed with being the largest cold store in Zoom, B-Built is also working on the Britain. It provides local food producdevelopment of other sites in England, ers access to customers all over the Germany, Belgium and the US. “Our country for the delivery of products objective over the next two years is to The Partner Logistics’ site at Wisbech under construction. such as frozen chips, peas and other improve and extend co-operation with foods. Food companies using the facilour main client, Partner Logistics – and ity include Lamb Weston, Birds Eye and Pinguin. in the longer term to attract other clients,” says Bram Rog. J The high bay warehouse, where the temperature is kept at -28 C, incorporates five aisles with two sided arranged racking blocs operated by five stacker cranes for multiple deep storage. The stacker cranes can handle two pallets of 1200 Kg simultaneously. A total of 45 racks of 13 levels are housed. The expedition and picking area features two stacking cranes, which can handle pallets of 1200 Kg at a time.

Core Business Partner Logistics’ core business is to provide high quality warehousing services to its clients, by means of operating highly automated warehouses. The group finances and owns the warehouses that it develops and operates, leaving customers to focus their resources on their own core business.

Due to the significant investment required to establish automated warehouses, Partner Logistics develops long-tern partnerships with its customers.

Founded by Bram Hage in 1998, Partner Logistics has emerged as one of the leading logistic service providers, in the field of operating automated warehouses within Europe. The group currently has twelve sites in Europe.

Partner Logistics provides warehousing services to leading companies in food, retail and consumer goods, in the Netherlands, Belgium, UK and Russia. The majority of the sites are deep freeze warehouses. However, Partner Logistics also operates sites with ambient and chilled conditions.

Project Management B-Built, which is based in the Netherlands and specialises in the development of cold and freezer storage facilities, managed and coordinated the Wisbech project for Partner Logistics. The B-Built team at Wisbech was headed by project manager Bram Rog and contract manager Peter Dashwood.

Established in 2008, B-Built has already proved its expertise and capabilities in the specialist field of cold storage by being involved in several demanding and prestigious projects.

B-Built is currently working on the Phase 4 extension of the

48

Proud civil construction partner for the Wisbech project

B-Built BV Laan van Hildernisse Noord 8 4617 AE Bergen op Zoom, The Netherlands Tel.: +31-(0)164-27.16.60 Fax: +31-(0)164-26.33.87

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

Realising the Benefits of Intermediate Bulk Containers ntermediate bulk containers (IBCs) offer food and drink companies significant cost Isavings and efficiency benefits when handling, storing and transporting large quantities of fluids and bulk materials.

Lower costs due to reduced handling, storage and transportation charges are a key advantage of using IBCs. They are also hygienic, simple to use and transport and are recyclable. Indeed, IBCs have been devised specifically to save time and money on storage, handling and transport.

Full Protection Throughout the Supply Chain IBCs are designed to offer complete protection for the goods being carried during the full supply chain, from filling and loading through transportation and unloading.

IBCs are suitable for transportation by

50

road, rail or sea.

IBCs commonly have pallet type bases so that they can be easily moved by forklifts.

Another feature is that they can be folded down to produce a more compact profile for transportation and storage when empty.

Furthermore, IBCs can be stacked vertically.

Available in a variety of shapes and sizes, IBCs are made from different materials including plastic, steel and stainless steel, to suit the characteristics of the product being transported and the specific application required by the user.

IBCs can be constructed from materials approved for use with food and drink prod-

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

I INTERMEDIATE BULK CONTAINERS

New From Dolav Direct – The Dolav 1000-Ace olav Direct has launched the new Dolav 1000-Ace plastic pallet box. The 3-runD ner, one-piece Dolav 1000-Ace is designed for hygienic high care/high risk areas in food processing, pharmaceutical applications and clean environments. It is built for harsh use.

This intermediate bulk container (IBC)

Dolav pallet boxes in use for meat mechanical

is stronger, takes increased weight loading and is very easy to clean with no enclosed cavities. Made from top quality food-grade HDPE, the Dolav Ace features three runners injection moulded-in during one-piece manufacture, positive stacking and a range of colours. Direct from Dolav, the 1000Ace external size is 1200 x 1000 x 740 mm with 620 litres internal volume. The weight loading capacity is to a maximum unit load of 900 kg with the maximum load on the bottom box in a stack to 5000 kg.

Dolav added even more detailed design improvements by increasing runner strength, chamfering around the pallet base to reduce possible forklift blade damage, adding a dimpled area for adhesive labels and offering an optional cardholder. The three runners also add greatly to safety when tipping and as a one-piece moulding ensures there are no ‘add-on’ parts which could fall off. Increased internal corners radius makes the Ace easy to clean and release tipped content.

As standard in Dolav manufacture, a strengthening additive further enhances this premium product’s remarkable strength.

The Dolav 1000-Ace durability has proved itself in early, extended trials in selected, heavy-duty applications with automotive battery recyclers, waste food recyclers and in meat logistics. They have ordered more.

Dolav Direct is New New as well from Dolav is ‘Dolav Direct’.

handling and transport.

ucts and to incorporate easy to clean surfaces to ensure hygiene standards are complied with. IBCs’ can be fitted with flexible liner bags, which are sterile and can be filled without allowing air into the container.

In addition to being a safe, hygienic and secure method for materials handling, IBCs offer increased productivity and lower packaging costs while maximising logistics and handling efficiency.

Advantages The IBC storage and transport concept offers users several advantages over alternative methods: • IBCs are generally cubic in form and consequently are able to transport more material in the same area than cylindrically shaped containers and far more than might be shipped in the same space if packaged in consumer quantities.

• IBCs usually incorporate plastic liners which can be filled and discharged using a variety of systems.

• IBCs allow food and drink manufacturers to bulk package a product in one country and ship to many other countries or destinations, at a reasonably low cost, where the product is then packaged in final consumer form in accordance with local market and statutory requirements.

Because IBCs are a reusable container system, they eliminate the need for large quantities of disposable packaging, associated with other methods of transporting goods, saving on packaging and waste disposal costs.

IBCs are reusable, collapsible bulk containers which save space and costs on return journeys. Similarly, reusable plastic IBCs in closed loop supply chains have a significantly lower environmental impact than other rival systems of bulk handling.

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

Dolav 1000-Ace with 3 moulded-in runners and no enclosed cavities.

Now, customers in UK, Ireland, Benelux, France, Germany and Israel can buy direct from Dolav in these countries with substantial local stockholding for quick delivery especially of standard Dolav IBC plastic pallet boxes and plastic pallets. For specially customised products Dolav clients can speak to Dolav Direct specialists to have specially engineered pallet boxes.

Although not at standard product prices, customised Dolav products can transform production processes and save or avoid large capital cost expenditure making a customised Dolav even better value for money. Remarkable, Dolav Direct offers customisation on small order quantities which is a huge benefit to customers of all sizes. For further information visit Dolav Direct at www.dolav-uk.co.uk or www.dolav-ireland.ie. J IBCs can be leased or purchased outright by food and drink companies. Indeed, IBC service providers usually provide a comprehensive care management service to suit the specific needs of customers. J

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I PROJECT MANAGEMENT

IFP Appointed to Deliver New Production Facility For CNP Professional ntegrated Food Projects has been Ideliver appointed as project manager to a new production facility for CNP Professional, the Manchesterbased company which is a world leader in sports nutrition. CNP Professional is a brand chosen by top athletes in boxing, rugby, football, body-building, power lifting and is also used as part of an overall training and fitness regime by several Premiership football teams, Premiership rugby teams and many Team GB Olympic athletes.

The new facility, which will create new jobs for the local area, will enable CNP Professional to manufacture its product range, most of which is currently manufactured in the United States. Processes will be transferred from the US with production due to commence in the new facility from early 2010.

The project is being supported by a grant from the Northwest Development Agency, which IFP played a key role in securing for

CNP Professional.

The production equipment is currently being specified and discussions are taking place with several UK equipment suppliers.

A site for the new production and head office facility has been chosen and will be located in Hyde on the east side of Manchester, close to the companies existing Denton operation.

By relocating manufacturing from the US to the UK it will enable CNP Professional to improve control of the manufacturing processes and in turn improve the quality of the products whilst providing a facility that will give greater opportunities for product development through expansion of the CNP Professional product range.

The creation of this facility requires a fast track delivery solution and CNP Professional has engaged IFP to manage the requirements of both the building and the equipment so that CNP Professional can take delivery of a fully operational plant. J

Delivering projects for the food industry.

Integrated Food Projects (IFP) provide specialist project management services for the food industry.

We provide food companies with the essential knowledge required for the successful delivery of their capital expenditure projects.

Waterloo House, Huntingdon Court, North Street, Ashby de la Zouch, Leicestershire, LE65 1HS tel 01530 412191; fax 01530 563792 Email: mail@ifp-consulting.co.uk Web: www.ifp-consulting.co.uk

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The diagram shows the elements of a typical project with IFP controlling all activities from the centre.

Our experience allows us to manage and coordinate the project whilst involving our clients throughout the process.

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

I APPOINTMENT

New HR Appointment at Oakland specialist in third party supply chain wareA housing and logistics, Oakland International has appointed Sue Walton to the role of human resources manager, tasked with supporting the firm’s expanding workforce and delivering advanced training in readiness for progress and change. Having previously worked in human resources and finance for Sainsbury, Sue then brought her wealth of experience and knowledge of the warehouse and logistics arenas to Oakland and the role of PA to Oakland’s managing and

operations directors in 2007, holding joint responsibility for managing the firm’s developing HR function.

Oakland International, an established multi temperature supply chain specialist conducts distribution schemes for Ireland and UK mainline retailers, servicing many on a daily basis. For further information contact Oakland International on – Ireland Tel +353 (0)1835 4855 – UK Tel +44 (0) 1527 596 222 – or visit www.oaklandinternational.com. J

Sue Walton, human resources manager, Oakland International.

I MARKETING

New UK-wide Campaign Promotes Olive Oil for Wider Use live oil consumption in the UK has been rising O steadily over the last 19 years. The UK now consumes 28m litres of olive oil per annum, all of which is imported, and sales topped £150m a year for the first time in 2008. That is double the amount sold eight years ago and significantly more than the £90m spent on vegetable oil. Half of UK homes now use olive oil compared with just 35% in 2001.

In recognition of this, one quarter of the total budget for the biggest promotional campaign for olive oil undertaken to date in the European Union, will be spent in the UK.

UCP Launches New ‘Orchid’ Tamper Evident Security Closure United Closures & Plastics Bridge of Allan, a specialist in packaging solutions for the global wines and spirits industry, has developed a new combined aluminium and plastic tamper evident snap-on security closure in partnership with Pernod Ricard, Chivas Brothers to cap Beefeater London Dry Gin. Orchid is a modular security closure concept offering general trade customers the opportunity to adapt the design to include new features for different brands and markets. The closure combines UCP’s top security non-refillable valve for high-risk markets with an innovative tamper evidence mechanism, which leaves permanent evidence of initial opening. UCP also produces a matching open-pour version allowing Chivas Brothers to run one type of neck finish for all packs. For further information contact UCP on Tel +44

(0)1786 833 613 or visit www. ucplimited.com. J

New Bottle Size Added Due to Popular Demand Following on from success at EasyFairs, Measom Freer has added a 350ml size to its popular stock Metric Range. The bottle is stocked in PVC with PET and colours available to order. A wide variety of caps and spray/gel pumps are also available to complement the choice of bottle and achieve the desired look. One of Measom Freer’s best selling bottles it can now boast one of the largest ranges in Europe, with 15 sizes ranging from 2.5 ml to 500 ml.

Ideal for oils, seasoning, sauces and drinks etc, these bottles extend and complement the

The new advertising campaign sets out to encourage British consumers to use olive oil for a wider range of cooking purposes, stressing its contribution towards maintaining a healthy and balanced diet.

With a budget of Eur16.5m, the campaign will last three years and will target consumers in Belgium, France, Holland, Spain, and the UK. Approximately Eur4m of the total budget allocated by the European Union will be spent in the UK, over the three-year period. A website dedicated to olive oil, www.aceitesdeolivadeeuropa.com will be launched in the coming months. J

company’s existing 21 bottle ranges, available from 2.5ml through to 1 litre. For further information contact Measom Freer on Tel +44 (0)116 2881588 or visit www.measomfreer.co.uk. J

Rieke Foresight and Innovation Scoops Award UK-based specialist dispenser designer and manufacturer Rieke Dispensing has been named Business of the Year in a prestigious awards ceremony organised by the East Midlands Development Agency (emda).

The HighGrowth East Midlands Business of the Year Award is reserved for a top performing company seen as an exemplar in its market. Rieke

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

Dispensing was able to demonstrate a recent history of spectacular growth and product innovation. Sales have increased by 81% in the past three years, culminating in 2009 being the most successful year in the company’s history. For further information contact Rieke Dispensing on Tel +44 (0)116 2331100. J

Mark Box (centre), managing director, Rieke Dispensing, accepts the HighGrowth East Midlands Business of the Year Award from the BBC East Midlands Today presenter Anne Davies and emda board member Michael Seals MBE.

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I MEAT PROCESSING

Kerry Ingredients & Flavours Reflects Customer and Market Demand at IFFA 2010 t IFFA 2010, Europe’s leading fair for the meat industry, Kerry A will exhibit a range of integrated solutions concepts on stand G81 in Hall 4.1. These will demonstrate how Kerry’s unique integration of technologies, application capabilities and product portfolio can help producers of meat products create consumer-preferred products faster and more cost-effectively, compared with the traditional approach of co-ordinating many different suppliers of single technologies.

Five product concepts will be available at Kerry’s stand, illustrating what can be achieved by working this way. The three below will be available for visitors to taste: * Schnitzel (illustrated) is a complete solution for manufacturers seeking to provide improved coating adhesion and increased crispiness. * Reduced Fat Pork Liver Pate: a liver pâté with less than 12% fat, a smooth texture and excellent mouth feel and flavour. * Marinated Chicken Wings: chicken wings with a rich and authentic Tex Mex taste.

Not available to taste: * Pepperoni topped pizza: a healthier pizza with reduced sodium and fat. * Meat and Vegetable Pastry Pie: a reduced fat pastry product with lower salt and a cleaner ingredient declaration.

These concepts highlight how the new ‘One Kerry’ approach provides unique benefits to food and beverage manufacturers. ‘One Kerry’ unites Kerry’s international ingredients, bio-science, sweet, fruit and flavours capabilities, under the theme: ‘where it all comes together’. This provides Kerry’s customers with a single point of access to the company’s industry-leading market applications expertise and broad technology base.

Karl Burkitt, strategic marketing director for Kerry Ingredients & Flavours EMEA, explains: “This is a huge change in the way we work, but it is driven by our understanding that customers increasingly need to work this way for them to meet the needs of their markets and customers. It is all about delivering customer-focused innovation.” J

Schnitzel is a complete solution for manufacturers seeking to provide improved coating adhesion and increased crispiness.

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FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

I EXHIBITION

Meat Technology Showcase - IFFA 2010 – Messe Frankfurt reparations for IFFA – Technology meats Business: No 1 for processing, packaging, selling – from 8th to 13th May 2010 are in full swing. With over 900 exhibitors presenting their latest products and services on an area of over 100,000 square metres, the world’s leading trade fair for the sector is set to surpass the already high level set by the previous event in 2007.

At the fair, suppliers from more than 40 countries will show machines and equipment for meat processing and packaging, spices and additives, butchers’ requisites and products for butchers’ shops. Messe Frankfurt expects around 60,000 trade visitors from over 100 countries to attend IFFA 2010.

to major suppliers of artificial and natural casings, such as Case-Tech, Devro, Kalle and Naturin, renowned spice manufacturers, including AVO-Werke, Moguntia, van Hees and Wiberg, will also be making presentations at the fair.

The ‘selling/everything for the butcher’s shop’ product segment in Halls 6.0 and 6.1 is aimed primarily at the butchers’ trade and food retailers and visitors can see the latest products from spice manufacturers such as Raps in Hall 6.0. The ‘Modern Butcher’s Shop’ special show in Hall 6.1 offers insights into optimum product presentations.

P

Full Spectrum Major manufacturers of machines and plant for slaughtering, dismembering and processing will present their products and innovations in Halls 8 and 9. These international companies will exhibit not only large machines and equipment for industrial meat processing but also machines for making meat and sausage products in butchers’ shops.

The spectrum of products to be seen in Hall 9.0 ranges from machines and plant for slaughtering, dismembering and processing to transport and storage technology, cooling plant, automation technology and supply facilities. The big exhibitors in Hall 9.0 include Itec/Attec, Metalquimia and MPS Read Meat Slaughtering with solutions for slaughtering, dismembering and processing, as well as for automation and hygiene equipment. For example, WVG Kainz will present highlights in the field of materials handling and conveying equipment.

Among the exhibitors showing cutters, mixers and mincers of all types and sizes, butchers’ machines, boiling and smoking plants and other accessories for meat processing in Hall 8 will be CFS Maschinen & Einrichtungen, Handtmann, Maja, the Marel Group, Polyclip, Seydelmann, Tipper-Tie, Townsend Further Processing, Treif Maschinenbau and Vemag.

In Hall 9.1, trade visitors will find slaughtering and dismembering equipment, hygiene technology, materials handling and conveying equipment, occupational safety equipment, cleaning plant, forming and sausage machines, lifting and tilting equipment, etc., at the stands of, for example, Cretel, Dorfel, Elpress, Formcook and Mohn.

At the fair, suppliers from more than 40 countries will show machines and equipment for meat processing and packaging, spices and additives, butchers’ requisites and products for butchers’ shops.

Packaging Technology The current trend is towards packaged meat and sausage products, which satisfy the growing consumer demand for smaller quantities and greater convenience. At IFFA, visitors can see a cross section of relevant packaging technology, from packing lines to important peripheral equipment for labelling, as well as scales and marking technology. Suppliers of these products make their presentations in Halls 4.0 and 6.0.

The international manufacturers of packaging machines and equipment represented at IFFA 2010 include Inauen, Espera-Werke, Webomatic and Ulma Cye in Hall 4.0. In Hall 6.0, manufacturers of packaging machines and facilities present their solutions in combination with manufacturers of measuring and weighing technology and IT systems. They include Bizerba, CSB System, Digi, Multivac and Mettler-Toledo.

The spices and additives segment at IFFA is a growth area because culinary foodstuffs are always seasoned. Moreover, technologically effective additives are also used to make meat products. In Hall 4.1, over 100 producers will show the latest trends for ingredients and additives used in this connection. In addition

IFFA Meat Vision Conference & Robotic-Pack-Line Exhibition The complementary programme of IFFA gives visitors the chance to add to their specialist knowledge and exchange ideas and opinions with experts from the sector. The international Meat Vision Conference on 10th and 11th May is one of the highlights.

The conference will take a close look at subjects of importance to the international meat processing industry.

Also likely to be of particular interest is the Robotik-Pack-Line exhibition in Hall 4.0 showing a synthesis of robots and automatic machinery suitable for use mainly in the food processing industry. For further information visit www.iffa.com. J

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010

Major manufacturers of machines and plant for slaughtering, dismembering and processing will present their products and innovations in Halls 8 and 9.

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I PACKAGING DESIGN

More Awards For DS Smith Packaging Major Success at EFTA Awards continue to stream into DS Smith Packaging with a tally of three golds, four silvers and one bronze at EFTA 2010. Two of the gold awards were carried off by DS Smith Horncastle for its outstanding Cadbury Wispa Gold pre-print, which was converted at DS Smith Packaging Belper.

The second gold was awarded for the Tilda’s Premium American Long Grain Rice sack. DS Smith Packaging Clay Cross also celebrated a gold award for its preprinted Maynard’s Wine Gums pack.

DS Smith Packaging South West enjoyed sweet success winning silvers for both its Mars Galaxy Bubbles and Cadbury Caramel packs.

Two more silvers were awarded to DS Smith Horncastle for the Badshah Superior Aged Basmati Rice sack and the Natural Country Cool n Calm mix sack. Finally, Horncastle proved itself again with a bronze award for the Scats Country Store Dog Food sack.

Tony Foster, director of DS Smith Packaging, comments: Flexographic pre and post print on corrugated has advanced so far in recent years that brand owners can take full advantage of the extra impact that top quality printing provides in store.

What’s more, using tools like ImageRight, DS Smith Packaging can guarantee true and consistent colours to support brand integrity. Shelf impact starts with graphic design, is delivered by great print, and the outcome is better product sales. We are delighted to collect these awards on behalf of our customers.”

Award-winning colours on packs and sacks.

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Macfarlane Packaging Acclaims DS Smith Packaging as Supplier of the Year Macfarlane Packaging, a part of Macfarlane Group and the UK’s leading packaging distribution business, appointed DS Smith Packaging Supplier of the Year 2009 due to its close working relationship and continuous stream of new ideas. Macfarlane said that it recognised the benefit of being allied to a good solid supplier with a wide breadth of manufacturing capabilities,

MacFarlane Packaging and DS Smith Packaging see as a true partnership."

Ideal Award For DS Smith Packaging DS Smith Packaging Rawcliffe Bridge has been appointed Supplier of the Year by leading manufacturer, Ideal Boilers of Hull. The Rawcliffe team, competing against many different suppliers, scored the highest marks not only in the category of ‘raw material supplies’ but also overall.

Key account manager Debbie Bogie led the Rawcliffe team that achieved the highest marks for a number of performance criteria, including being able to react quickly and effectively to requests for innovative design and samples for new product launches. Often these requests were made at very short notice to meet the needs of Ideal Boiler’s customers.

Rawcliffe’s managing director, Bob Koczulab comments: Macfarlane Packaging award reflects “a true partnership”.

"We are delighted with this award which recognises and extensive infrastructure and high levels of supports the strategic direction of our investment. business. We have set ourselves the chalA dedicated DS Smith Packaging team lenge of standing out from the crowd and has been involved with Macfarlane this award shows the strategy is working.

Packaging on a number of initiatives. The We have always been renowned for our contact base is extensive and DS Smith manufacturing skills and efficiency, now Packaging works actively with Macfarlane we are also becoming known for the Packaging on new development opportuni- highest standards of customer service and ties. The team is acknowledged to have innovation.” J shown total commitment, putting in extra effort and resources to achieve the objectives.

DS Smith Packaging is able to help Macfarlane Packaging to win additional business as well as contributing ideas for selling to a wide customer base.

Angela Campbell, director of procurement, Macfarlane PacPeter Hesleden, purchasing director of Ideal Boilers, kaging, commens that presents the award to Debbie Bogie, Rawcliffe’s key "This is a business account manager. relationship that both

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2010