Food and Drink Business Europe

april 09 issue

30/07/2010

12:25

Page 1

April 2009

Focus on confectionery keeps Cadbury sweet

Food & Drink Business Website:

www.foodanddrinkbusiness.eu

april 09 issue

30/07/2010

12:25

Page 2

april 09 issue

30/07/2010

12:25

Page 3

C o n t e n t s

Cranswick continues to bring home the bacon.

- 2 & 44 N EWS B RIEF Business news from the UK and international markets.

- 39 & 41 D AIRY - 5 B REWING & D ISTILLING Developments in the global alcoholic drinks sector.

PAGE 2

Robert Scholfild, ce Premier Foods.

Materials & Ingredients. . . . . . 19 & 27

PAGE 3

B EVERAGES

New investment to drive Irish dairy industry.

PAGE 43

Cover of British and international deals.

Constellation Europe uncorks Europe’s largest wine warehouse and distribution centre.

Todd Stitzer, ce, Cadbury.

R EGULARS

- 6 M ERGERS & A CQUISITIONS

- 9 -

Kerrygold sets new standard.

PAGE 13

Agust Gudmundsson, ce, Bakkavor.

John Moloney, md Glanbia.

Processing & Manufacturing . . . . . . . . 24-26, 35-37

Energy & Environment . . . . . . . . . . 28 Quality & Hygiene . . . . . . . . . . . 28-31 Bottling & Packaging . . . . . . . . . 45-48

PAGE 44

Cees ‘t Hart, ce, Royal FrieslandCampina.

- 11 I NDUSTRY A NALYSIS Acquisition opportunities shine amid the gloom in UK food processing.

- 13-22 C OVER S TORY

Managing Director: Colin Murphy Editor: Mike Rohan Sales Director: Ronan McGlade Advertising: Susan Doyle Senior Sales Executive: Paul Lees

PAGE 5

Production Manager: Susan Doyle Production Assistant: Jackie Kinch

Paul Moody, ce, Britvic.

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

Tel: + 353 1 612 0880 Fax: + 353 1 612 0881 E-Mail: info@prempub.com Website: www.foodanddrinkbusiness.eu London Office: Premier Publishing Limited, CTS, 34 Leadenhall Street, London, EC3A 1AT Tel: 0171 247 3238 Fax: 0171 247 3239

Focus on confectionery keeps Cadbury sweet.

Premier Publishing Limited can accept no responsibility for the accuracy of contributors’ articles or statements appearing in this magazine. Any views or opinions expressed are not necessarily those of Premier Publishing and its Directors. No responsibility for loss or distress occasioned to any person acting or refraining from acting as a result of the material in this publication can be accepted by the authors, contributors, editor and publisher. A reader should access separate advice when acting on specific editorial in this publication!

Cadbury and the global confectionery market.

- 32 & 34 M EAT P ROCESSING Danish Crown restructures to ensure future competitiveness.

PAGE 7

Design, Origination and Separations by Fullpoint Design (057) 8680873

Frank Riboud, chairman & ce, Danone.

Printed by W&G Baird.

Annual Subscription (UK and Ireland) £95 Overseas Subscription £115

FOOD & DRINK BUSINESS EUROPE, APRIL 2009

1

april 09 issue

30/07/2010

12:25

Page 4

N N E E W W S S New Capital Structure for Premier Foods Premier Foods has made a £404m equity issue and renegotiated its bank agreements to ease investor concerns about its level of debt, which spiraled after the acquisition of RHM and Campbell’s UK and Irish operations. Having raised £379m after expenses from the equity issue, Premier has reduced its debt to £1.4b, leaving a net debt to EBITDA ratio of 3.9 times – well below its banking covenants limit of 5 times.

The UK’s largest food manufacturer increased operating profit before exceptional items by 11% to £256.0m during 2008 on turnover from continuing operations up by 22.5% to £2.60b, reflecting a full year of trading from RHM. However, operating profit after exceptional items fell from a profit of £72.0m in 2007 to a loss of £40.5m in 2008 after recognising an impairment charge against the goodwill attributable to the Hovis division of £194.4m and £102.1m of other exceptional items, primarily related to the integration of acquisitions. The integration programme is on track to yield annual savings of £113m.

“The Group made significant progress over the course of 2008.

We completed our manufacturing rationalisation programme, closing nine factories over a 12 month period, implemented SAP in our grocery division and successfully relaunched Hovis, our biggest brand. Additionally, we are pleased by the trading performance of the business which has demonstrated resilience against the backdrop of a challenging economic environment,” says Robert Schofield, chief executive of Premier Foods. “One of the most pleasing aspects of the business in 2008 is how robust trading has been during a tough period for consumer-facing businesses. We believe that with the momentum developed in our grocery business over the last four months of 2008, combined with the successful relaunch of Hovis and the remaining integration synergies, we are well positioned for further progress in 2009.”

2

Meanwhile, Premier Foods has completed the disposal of its French bakeries – Martine Specialites and Le Pain Croustillant – for a net consideration of £44m. The sale of Sofrapain, the remaining unit of Premier’s speciality bakery business in France, is expected to be completed in the second quarter of 2009.

Robert Schofield, chief executive of Premier Foods.

Losses Widen at Uniq Operating losses before significant items increased from £3.6m to £8.4m during 2008 at Uniq, the UK-based convenient food manufacturer. Although revenue was up by 8.3% to £797.2m, this was mainly due to favourable exchange rates and on a constant currency basis, sales declined by 0.6%. After significant items amounting to £49.4m (£46.0m in 2007) pre-tax losses widened from £44.1m to £54.8m.

Much of the group’s underperformance in 2008 was due to its UK business, which suffered from delays in the recovery of extreme input price inflation and also because of its dependence on premium ranges, which have been more heavily impacted in the current economic climate as consumers have traded down.

The UK operations had a very disappointing year. Sales fell by 1.9% to £338.5m and the previous year’s return to profit (£5.9m) was reversed into a loss of £3.3m for 2008.

However, the UK desserts factory consolidation programme is on track to remove £11m of annualised overheads by the end of 2009. Following years of losses at Pinneys, Uniq has since the year end agreed the £1m sale of the Scottish premium fish and deli supplier to the Foodvest Group.

Uniq has now modified its recover strategy to refocus on the

B B R R II E E F F

COMPANIES

Adnams; 5 AG Barr; 4,5 Anheuser-Busch InBev; 5,6 Arcor; 21 Arla Foods; 43,45 Bakkavor; 2 Barry Callebaut; 6 Bel Group; 45 Bongrain; 45 Bowes of Norfolk.; 7,34 Breeo; 6 Britvic; 5 Budejovicky Budvar; 6 C&C Group; 5 Cadbury; 13,21 Campari; 6 Carlsberg; 5 Coca-Cola; 4,5 Constellation Brands; 9 Constellation Europe; 9 Cranswick; 7,34 Dairy Crest; 7 Dairygold; 6 Danisco; 6

Greencore Completes Bank Refinancing Greencore Group, which is one of the leading convenience food manufacturers in the UK, has completed a refinancing of its bank debt facilities. New facilities totalling Eur360m (£335m), with a maturity date of April 2012, replace existing facilities of Eur336m with a maturity of May 2010. These, together with Greencore’s existing Private Placement notes, represent a strong capital base for the group’s operational and development needs.

Patrick Coveney, chief executive of

FOOD & DRINK BUSINESS EUROPE, APRIL 2009

THIS

Danish Crown; 32 Danone; 3,7 Europastry; 3 Finsbury Food Group; 3 Foodvest; 6 Friesland Foods Fresh Nijkerk; 45 Glanbia; 43,45 Glisten; 4 Green Meadows Foods; 45 Greencore Group; 2 Greggs; 3 Grupo Leche Pascual; 4 Halloren Schokoladenfabrik; 3 Haribo; 21 Hershey; 21 Innocent Drinks; 4 Irish Dairy Board; 39 Kerry Group; 6 Kerrygold; 39 Kraft Foods; 21 Largo Foods; 4 Leaf International; 21

UK and has appointed advisors for its businesses in Northern Europe and France to actively pursue consolidation opportunities to create value through joint venture or sale. Uniq extended and increased it bank facilities in February 2009 to support its modified recovery plan.

Greencore.

IN

ISSUE

Lindt & Sprungli; 3 Lotte; 21 Mars/Wrigley; 21 Milk Link; 45 Natra; 6 Nestle; 3,21 Nichols; 5 Nordzucker; 6 Northern Foods; 4 Perfetti; 21 Pernod Ricard; 6 Pinneys of Scotland; 6 Premier Foods; 2 Refresco; 4 Royal FrieslandCampina; 45 Schiffers Food; 4 Seafood Company; 6 Synergy; 5 Tata Tea; 6 Total Produce; 4 Uniq; 2,6 Wadia Group; 7 Yili; 45 Yoplait Dairy Crest; 7 Yoplait; 7

Torrid Year for Bakkavor One off costs of £177m, including restructuring costs and the loss on an equity stake taken in food group Greencore, have severely dented profits at Bakkavor in what was a torrid 2008 for the Icelandic group, which a UK market leader in fresh prepared foods and produce. Group turnover rose by 10% to £1.6b but underlying like-for-like sales growth was just 1.9% for 2008, although this rate increased significantly in the last quarter to 5.1%. EBITDA before restructuring costs for the year was down 27% to £108.5m resulting in an annual loss of £154.2m compared with a profit of £47.4m in 2007.

Although 2008 profitability and cash generation were significantly affected by a number of one-off exceptional factors, such as extensive restructuring activity coupled with the tough trading environment, Bakkavor has made progress in improving operational efficiencies, mitigating inflationary costs and increasing market share in core product categories, according to Agust Gudmundsson, chief executive of Bakkavor, and the group has now secured funding across all its operating businesses for next three years and also recovered funds deposited with a failed Icelandic bank.

april 09 issue

30/07/2010

12:25

Page 5

N N E E W W S S “These agreements provide sufficient covenants and liquidity headroom to support the group’s business plan and clearly demonstrate to our customers, suppliers, employees and other stakeholders the financial stability of the operating businesses. In addition, we have retrieved £144m of the £150m deposited with Kaupthing in Q3 and expect to receive the remainder by mid April.”

He continues: “Going forward, we expect the trading conditions to remain challenging, however due to the actions we have already taken and the continued focus on our business priorities we believe the group is well placed to manage ongoing trading pressures as well as adapting to current and future consumer demand. As such, we anticipate returning to profit growth and good cash generation in 2009.”

investment in its history. Last August, Nestle announced it will invest $170m to expand the facility to more than 1m sq ft by 2011.

Paul Bulcke, chief executive of Nestle.

Danone to Expand French Baby Food Factory Danone is to invest Eur20m in a second production line for the Bledichef brand at its baby food factory at Brive-la-Gaillarde in France. Annual capacity at the plant will increase from 14,000 to 20,000 tons when the new line comes on stream in December.

Lindt & Sprungli Lowers 2009 Targets

Agust Gudmundsson, chief executive of Bakkavor.

Nestle Opens $360m US Factory Nestle has officially opened its largest ready-to-drink aseptic products factory in the US. The state-of-the-art factory and distribution centre sets the standard for future Nestle ready-to-drink facilities worldwide.

The new 880,000 sq ft complex is dedicated to meet growing consumer demand for Nestle’s Nesquik ready-to-drink and Coffee-Mate liquid products in the US. It will become Nestle’s centre for healthy beverages in the US and allow the company to create and develop new and innovative beverage products.

Between August 2006 and June 2008, Nestle invested $359m to construct the factory and distribution centre, the company’s largest single capital

Growth in export markets in North America and Northern and Eastern Europe has helped Swiss luxury chocolate producer Lindt & Sprungli to increase net income by 4.4% to SFr262m (Eur170m) for 2008 with its return on sales improving from 8.5% to 8.9%. EBIT rose by 3% to SFr361m and the EBIT margin jumped by 40 basis points to 12.3%, which is at the top end of the long-term target of 20-40 basis points.

However, the deteriorating economic climate and volatile commodity prices, especially for cocoa beans, will impact on the group’s current performance.

According to Lindt & Sprungli, 2009 is set to be a year of transition, in which long-term growth and earning targets will not be attained. The group is projecting organic growth of 2% to 5% in the current year, against its longterm target of 6% to 8%, and EBIT of SFr260 to SFr280m.

However, after 2010, Lindt & Sprungli expected to again pur-

B B R R II E E F F sue its long-term targets.

Profits Fall at Greggs Rising input costs have undermined profitability at Greggs, the UK’s largest retail baker. Pretax profit before exceptionals for 2008 decreased by 7.8% to £45.2m on sales down by 7.1% to £628m. Pre-tax profit after property gains, restructuring costs and pension credit was £49.5m, down 3.3% on 2007.

However, despite the difficult trading climate, like-for-like sales rose by 4.4%.

During 2008 Greggs opened 67 new shops and closed 26, making a net addition of 41 shops and a total of 1,409 at the year-end. Greggs expects to open a further 55–60 new shops during 2009 but closures will leave the net new additions at about ten.

Net total capital expenditure after grants in 2008 was £33.3m, compared with a previous budget of £36m, as the group tightened its spending plans during the second half. The largest single project was the construction of a new bakery at Manchester, which was completed during the second half and is now being commissioned. A similar level of total investment is projected for 2009.

The focus during 2009 is to further centralise and streamline the business and to progress plans for accelerated expansion from 2010.

Ken McMeikan, chief executive of Greggs.

Interim Profits Drop at Finsbury Food UK cakes, bread and morning goods manufacturer Finsbury Food Group has reported a fall in pre-tax profit from £1.6m to

FOOD & DRINK BUSINESS EUROPE, APRIL 2009

£0.2m for the first half to December 31st last, after net finance expenses of £2.9m.

Revenue rose by 11% to £92.1m with like-for-like sales ahead by 2%.

The group is in the process of integrating its two major cake businesses (Lightbody and Memory Lane Cakes) in order to leverage its scale as an efficient, low cost producer within the cake market. Finsbury has also renegotiated its banking facility.

“It is encouraging to see that sales have remained strong and resilient despite the recessionary environment. We have focused our investment and attention on further integration of our businesses and improving our facilities. Advancing the quality of our products and raising the standard of the service we provide to our customers is imperative, particularly in the current economic climate,” says Martin Lightbody, chief executive of Finsbury Food Group.

Capacity Expansion by Europastry Europastry, the Spanish frozen dough and part-baked bread and bakery products group, has become the largest European manufacturer of doughnuts following investment of Eur18m to increase its production capacity at its facility at Rubi, Barcelona.

Based in Sant Cugat del Valles, Barcelona, Europastry increased turnover by 12% to Eur360m last year. It is planning to invest Eur37m during 2009 to expand its operations. Europastry generates about 10% of its sales beyond Spain, exporting to 17 international markets including France, Germany, the UK, Greece, the US, Japan and Mexico.

Profits Jump at Halloren Schokoladenfabrik Despite the economic slowdown, Halloren Schokoladenfabrik, Germany’s oldest chocolate manufacturer, more than quadrupled pre-tax profit to Eur2.4m in 2008 on turnover up by 27% to Eur38m. Chief executive Klaus Lelle expects further revenue growth in 2009.

3

april 09 issue

30/07/2010

12:25

Page 6

N N E E W W S S Northern Foods Postpones Decision on Biscuits Superfactory Northern Foods has postponed its decision on where to develop its planned new ‘superfactory’ for its Fox’s Biscuits subsidiary for at least another year, due to the current economic climate. The investment of up to £50m in creating a new ‘superfactory’ is part of the UK convenience food group’s plans to improve operating costs at its biscuits business by reducing the number of manufacturing sites from three to two. The factory at Kirkham in Lancashire is being retained but Northern Foods still has to decide on which of its other two facilities – at Batley in Yorkshire and at Uttoxeter in Staffordshire - to close. Northern Foods is faced with the option to either extend the current site at Uttoxeter or to construct a new manufacturing facility close to the existing Batley site.

Stefan Barden, chief executive of Northern Foods.

Largo Foods Cuts Costs Largo Foods, Ireland’s largest savoury snacks manufacturer, is cutting 123 jobs at its production plant in Gweedore, County Donegal, in order to reduce costs. Part of the plant’s production is being transferred to Largo’s more automated facility in Ashbourne, County Meath.

Profits Rise at Total Produce Irish fresh produce group Total Produce increased pre-tax profit by10% to Eur29.8m for 2008 on sales up by 5.3% to Eur2.5b.

The group, which was demerged from Fyffes and is one of the leading fresh produce groups in Europe, is intent upon expanding through a combination of acquisitions and organic growth.

4

Carl McCann, chairman of Total Produce.

Interim Profits Fall at Glisten British natural snacks and premium confectionery producer Glisten has reported a drop in profit before tax and adjusted items from £3.3m to £2.0m for the first half ending December 31st last. Turnover edged ahead from 33.5m to £35.4m during the period.

“We believe that consumer focus on both premium and better-for-you/healthier snacks will return strongly but in the short term, there is no doubt, that the absolute priorities for many are price and value. Consumers are self-evidently changing their buying patterns weekly, prompted by an increasing range of deep-cut price-promotional offers particularly from some of the big multi-national brands,” points out Paul Simmonds, chief executive of Glisten. “Glisten has responded swiftly to this challenge with the successful launch of price-fighting ranges offering excellent value for money and securing short term demand.”

SOFT DRINKS Strong Performance

by AG Barr UK soft drinks producer AG Barr has increased profit before tax for the year ended 31st January 2009 by 11.4% to £23.2m on turnover ahead by 14.4% to £169.7m, reflecting a strong performance from the company’s core brands and a contribution from Groupe Rubicon, which was acquired last August for £59.8m. EBITDA (before exceptional items) increased by 12.5% to £30.7m, representing a margin of 18.1%,

B B R R II E E F F and the underlying business showed strong growth with sales up 6.6%.

“Over the last twelve months we have seen substantial growth in both sales revenues and profit despite a further summer of poor weather and the difficult economic environment. We are now benefiting from our continued investments in brands and people as well as the restructuring activity which we have undertaken in recent years,” says Says Roger White, chief executive of AG Barr. “Despite the challenging economic climate our business is financially strong and well capable of continuing to deliver sustainable growth.”

Roger White, chief executive of AG Barr.

Refresco Expands With Two Deals Netherlands-based Refresco, Europe’s leading producer of private label fruit juices and soft drinks, has significantly expanded its geographical reach and product range following two deals. In the Netherlands, Refresco is acquiring Hoensbroek-based Schiffers Food from Bavaria. Employing 60 people, Schiffers will become part of Refresco’s Benelux business unit, which will now comprises four production locations.

Refresco Benelux offers a complete product portfolio, ranging from fruit drinks and juices to water, ice tea and energy drinks in all kinds of packaging formats.

The acquisition of Schiffers Food broadens the customer base and adds more production capacity in PET and water wells for an even more balanced spread in the product portfolio. Its geo-

FOOD & DRINK BUSINESS EUROPE, APRIL 2009

graphical location allows for a closer proximity to customers in The Netherlands, Belgium and Germany.

In Spain, Refresco has agreed to closely co-operate with Zumos Pascual, part of Grupo Leche Pascual. Zumos Pascual’s plant in Palma del Rio employs over 100 people. Refresco will rent this plant, excluding the fresh orange juice (NFC) pressing area, to produce and pack Zumos Pascual juices and fruit drinks on site. To increase its existing production capacity, Refresco will add additional production lines and activities to the plant to supply its other customers in Spain and Portugal.

Refresco will annually purchase a substantial volume of NFC orange juice produced by Zumos Pascual in Palma del Rio. “This is a big step forward in our ‘buy and build’ strategy,” says Hans Roelofs, chief executive of Refresco. “It enables us to broaden our product portfolio in two major European regions and gives us the needed production capacity to keep pace with our growing business. Our mission is to form a European platform of fruit juice and soft drink manufacturers. The two agreements will improve our service to regional customers. Meanwhile our businesses can profit from an extended Refresco network.”

Innocent Drinks Sells Minority Stake to Coca-Cola Innocent Drinks, the UK smoothies company, has sold a minority stake in the business to Coca-Cola for £30m. Founded just ten years ago, Innocent Drinks has developed into a £100m turnover business selling about 2m smoothies a week.

“All the money is coming into the business to fund our European expansion and the founders will continue to lead and run the company – we will be the same people, in the same offices, making the same products in the same way. Every promise that innocent has made - about making only natural healthy products, pioneering the use of better, socially and environmentally aware ingredients, packaging and production tech-

april 09 issue

30/07/2010

12:25

Page 7

N N E E W W S S niques, donating money to charity and having a point of view on the world - will remain,” explains Richard Reed, co-founder of Innocent. “We chose Coca-Cola as an investor because as well as providing the funds which will allow us to increase our investment in the brand both in the UK and internationally, they can help us get our products out to more people in more places.”

End of an Era at AG Barr Robin Barr will step down as chairman of Glasgow-based AG Barr in May. Chairman of the UK soft drinks group for the last 31 years and a director for 44 years, Robin Barr will remain on the board as a non-executive director. Ronnie Hanna, who has served as a non-executive director for the last five years, will become non-executive chairman in May. Jonathan Warburton, chairman of Warburtons, the UK’s largest independent baker, has joined the AG Barr board as a nonexecutive director.

successfully refinanced its committed bank facility. Britvic’s committed debt facilities had consisted of an ongoing longterm £229m sterling equivalent US private placement and a sixbank £300m revolving multicurrency facility, maturing in May 2010 and therefore due for refinancing. Britivic’s new sixbank £283m revolving multicurrency facility will mature in May 2012. Prior to the commencement of this ‘forward-start’ facility, effective from May 2010, Britvic will have access to increased committed bank facilities of £333m.

“The successful conclusion to the refinancing is a reflection of our strong relationships with our banking partners and the confidence they have in our trading performance and our strong cash generation,” says John Gibney, group finance director of Britivic.

Profits Rise at Nichols UK soft drinks producer Nichols has increased profit before tax and exceptional items by 11.1% to £10.0m on revenues up 1.6% to £56.2m for 2008. Sales of its Vimto brand grew by 16.1% in the UK. “We are pleased to announce a strong set of results in Vimto’s centenary year, particularly as this has been achieved against the backdrop of an economic downturn, a poor summer in the UK and increased promotional activity by our competitors,” points out John Nichols, non-executive chairman of Nichols.

Coca-Cola’s $4.2b Chinese Acquisition Rejected Coca-Cola’s planned $2.4b acquisition of Huiyuan Juice has been rejected by the Chinese Government on competition grounds. The deal would have been the largest ever foreign takeover of a Chinese company.

Britvic Refinances Bank Facility UK soft drinks group Britvic has

B B R R II E E F F with cider sales down by 17%.

C&C is cutting its Irish workforce by 120 people and will incur a one-off reorganisation charge of Eur12m but expects to achieve cost savings of Eur5m from the exercise.

“In the course of the next twelve months, we expect to make major progress on cost competitiveness and move to make the business leaner and faster to react to market-led changes. The key task is to create a sustainable and secure platform for our cider business in Ireland and the UK. This will ensure that we build a strong foundation for growth in future years,” says John Dunsmore, chief executive of C&C Group.

John Dunsmore, chief executive of C&C Group.

Profits Hit at Adnams

Paul Moody, chief executive of Britvic.

BREWING &

A weak beer market, coupled with softening consumer confidence, regulatory and lifestyle changes have affected the performance of UK regional brewer and pub operator Adnams.

Operating profit fell from £4.2m in 2007 to £1.5m in 2008 and sales slipped from £47.4m to £47.1m.

realisation programme during 2009. Since the completion of the acquisition of AnheuserBusch by InBev in November 2008, the combined group has achieved $250m of synergies.

Indeed, ABInBev has increased its synergy projection from the original $1.5b to $2.25b, with about $1b expected to be captured in 2009 and the balance during the following two years.

Other measures to be taken during 2009, include making at least $7b from divestments and ABInBev will reduce capital expenditure by at least $1b from the pro forma 2008 level.

In its 2008 financial year, ABInBev increased EBITDA by 4.6% to Eur5.33b, achieved a normalised EBITDA margin of 33.1% compared to 32.7% in 2007, and normalised EBIT rose by 2.1% to Eur4.02. Total volumes were flat, with own beer volumes off 0.3% but focus brands volumes grew 2.6%. The group gained market share in seven out of its top ten markets in 2008 – the US, Argentina, Germany, Belgium, South Korea, Canada and the UK. Total revenues for 2008 grew 5.2% to Eur16.1b and revenues per hectolitre increased by 5.6% reflecting continued improved product mix and revenue management activities.

DISTILLING

C&C Writes Down Cider Factory Irish alcoholic beverages producer C&C Group is writing down the value of its cider production facility in Clonmel by Eur130m.

The poor summer weather, which has reduced cider consumption, increasing competition in the UK market and adverse currency exchange rates have impacted on profitability and sales, causing C&C to streamline its operations. The company expects revenue to decline by 13% in the financial year ending February 28th last

Profits Surge at Synergy The March 2008 acquisition of Myagkov vodka, one of the leading brands in the fast growing sub-premium vodka segment in Russia, helped Synergy to lift net profit by 43% to RUB1.28b (Eur29m) in 2008. Synergy, which is one of the leading and fastest-growing producers of distilled spirits in Russia, increased revenue by 47% to RUB16.7b.

AB InBev to Accelerate Synergies Programme Anheuser-Busch InBev is to increase the pace of its synergy

FOOD & DRINK BUSINESS EUROPE, APRIL 2009

Carlos Brito, chief executive of Anheuser-Busch InBev.

Carlsberg to Close Finnish Brewery Carlsberg’s Finnish subsidiary Sinebrychoff plans to close its brewery site in Pori in September 2009 with the loss of 31 jobs.

The brewery produces about 5

april 09 issue

30/07/2010

12:25

Page 8

N N E E W W S S 40m litres of beer annually, equivalent to about 10% of Sinebrychoff’s total volume.

Sinebrychoff’s main brewery is in Kerava.

outsourcing contract. The transaction is subject to certain conditions, in particular secured longterm financing.

Irish Competition Authority Challenges Kerry’s Acquisition of Breeo

AB InBev Loses EU Trade Mark Ruling The European Union Court of First Instance has upheld a ruling by the Euopean trade mark office which denies AnheuserBusch InBev the right to register the Budweiser name as a trade mark in the EU. US brewing giant Anheuser-Busch, which was acquired by InBev of Belgium last November, applied for the EU trade mark in 1996 but the move was opposed by Czech brewer Budejovicky Budvar, which markets its beer in the EU as Budweiser Budvar and as Czechvar in North America.

MERGERS &

ACQUISITIONS

Uniq Sells Pinneys of Scotland Uniq, the UK-based European convenience foods group, is selling its UK chilled fish business, Pinneys of Scotland, to The Seafood Company, which is part of the Foodvest group, for an initial consideration of £1.0m.

The disposal is in line with Uniq’s strategy to focus on those convenience food businesses with the most potential for significant profit improvement and shareholder value creation. The net proceeds from the sale will be used to reduce bank borrowings.

Pinneys of Scotland is a leading producer of fresh and smoked salmon products, together with a range of other fish based ready meals. Based in Annan in Scotland, Pinneys employs around 600 people and has been loss making for the last four years. The business being sold made an operating loss of £1.1m in the year to 31st December 2007 and at that date had gross assets of £19.6m and net assets of £11.0m. The challenging market place during 2008 has further exacerbated the loss making position of the business.

6

B B R R II E E F F

Geoff Eaton, chief executive of Uniq.

Norzucker Completes Purchase of Danisco Sugar Nordzucker has consolidated its position as Europe’s second largest sugar producer and significantly extended its geographic reach following completion of the acquisition of Danisco’s sugar division for Eur730m.

With sugar production of around 1.9m tonnes, Nordzucker generated sales of about Eur1.3b in its 2007/2008 financial year. The sale is in line with Danisco’s strategy of becoming a bio-based ingredients provider.

The Competition Authority of Ireland is appealing the recent High Court judgement which ruled against its prohibition of Kerry Group’s proposed Eur140m acquisition of Breeo Foods, the Irish consumer food business. Global ingredients, flavours and consumer foods group Kerry will resist this appeal in the Supreme Court.

Formerly part of Irish dairy co-op Dairygold, Breeo Foods has an attractive portfolio of well known Irish added value dairy and meat products brands such as Dairygold, Galtee, Shaws, Mitchelstown, Calvita and Sno. Breeo is highly complementary to Kerry’s Irish chilled foods business and integration is expected to yield significant synergies

Barry Callebaut and Natra to Merge Consumer Chocolate Businesses Barry Callebaut, the world’s leading manufacturer of cocoa and chocolate products, is planning to transfer its consumer chocolate division, Stollwerck, to Natra of Spain. The combination of the two businesses will create a significant private label chocolate products manufacturer in Europe with estimated annual sales of around Eur850m (SFr1.27b), a 2.0% share of the entire European cocoa and chocolate market and a pro forma production output of around 215,000 tonnes in 2008.

The move will allow Barry Callebaut to focus on its core business with its industrial and artisanal customers while becoming a minority shareholder in Natra. Barry Callebaut will supply a minimum of 85,000 tonnes annually of liquid chocolate to Natra under a long-term

ing an effective stake of 33.2% and 17.8%, respectively.

Established in 1994, Grand operates in the economy segment of the coffee and tea business in Russia. It is mainly focused on regions outside the big cities and areas like the Urals, Siberia and Southern Russia. The investment by the EBRD and Tata Tea will be used to fund a programme which includes the modernisation of Grand’s production facilities.

On top of providing fresh capital, Tata Tea will also bring its considerable expertise and know-how to Grand. Its parent company, Tata Group, is India’s largest conglomerate and one of the largest producers of coffee and tea in the world. Tata Group has no investments in the beverages sector in Russia so far, but sees strong growth potential on a market where coffee is becoming increasingly popular and tea is a national beverage.

The acquisition is subject to regulatory approval but is expected to be completed during the first half of 2009. In the agribusiness sector alone, the EBRD has directly committed more than Eur5.0b in over 330 projects across Central and Eastern Europe and the Commonwealth of Independent States since 1991.

Campari Acquires Wild Turkey From Pernod Ricard

Stan McCarthy, chief executive of Kerry Group.

Tata Tea Targets Russia Tata Tea and the European Bank for Reconstruction and Development (EBRD) are joining forces for the joint acquisition of a controlling stake in the Russian branding, packaging and distribution company Grand, a well known player in Russia’s coffee and tea sector.

The consortium led by Tata Tea intends initially to hold 51% of the Grand business with Tata Tea and EBRD hav-

FOOD & DRINK BUSINESS, APRIL 2009

Italian drinks company Gruppo Campari is acquiring the US-based Wild Turkey bourbon whisky business from Pernod Ricard for $575m (Eur433m). The deal is the largest acquisition in Campari’s history and cements its position as a leading company in the US and international premium spirits markets. The acquired business includes the Wild Turkey brands, American Honey liqueur, distillery facilities in Kentucky and aged liquid and finished product inventory.

Wild Turkey is a global brand with a total volume above 800,000 nine-litre cases sold in over sixty markets. The

april 09 issue

30/07/2010

12:25

Page 9

N N E E W W S S US is the brand’s largest market, accounting for almost onehalf of sales. Following integration of Wild Turkey, almost two-thirds of Campari’s sales will be generated beyond Italy.

Dairy Crest Sells Stake in Yoplait Joint Venture UK dairy group Dairy Crest has sold its 49% stake in Yoplait Dairy Crest, its British joint venture with Yoplait of France, for £63.5m. The sale will result in an exceptional profit on disposal for Dairy Crest of £50m.

Dairy Crest’s share of YDC’s profit after tax for the year ended 31st March 2008 was £7.4m and a similar performance is forecast for the year ending 31st March 2009.

However, going forward, YDC’s performance would have been negatively impacted by the £/Euro exchange rate as well as a challenging market environment.

The disposal is in line with

Dairy Crest’s strategy of focusing resources on its core brands which are owned outright. The cash proceeds from the disposal will be used to reduce debt and will provide more headroom under the group’s banking arrangements.

Under the terms of the sale agreement, Dairy Crest will continue to distribute Yoplait products in Great Britain until March 2010. These products include Petits Filous, Frubes, Yop and Wildlife yoghurts. In addition, Dairy Crest will take on the Yoplait group’s share of YDC's defined benefit pension scheme liability, estimated at £1.5m.

Mark Allen, chief executive of Dairy Crest.

B B R R II E E F F Cranswick Strengthens UK Position UK foods company Cranswick is strengthening its position within the British meat industry with the acquisition of the pork processing business of Bowes of Norfolk. The £17m deal makes Cranswick the UK’s biggest British-owned pigmeat processor and helps to close the gap on its larger foreign owned rivals – Tulip (part of Danish Crown) and Vion of the Netherelands.

intellectual property dispute over the Tiger brand between Danone and Britannia.

The move is in line with Danone’s strategy of divesting its biscuit activities and concentrating on its four strategic business lines - fresh dairy products, water, baby nutrition and medical nutrition.

Danone and Wadia Group End Indian Joint Venture Danone and Wadia Group have agreed to end their existing joint venture relationships in India. As part of the agreement, Danone has sold its 50% interest in ABI Holdings (held through Britannia Brands) to Wadia Group. ABI Holdings has an effective 51% interest in Britannia Industries, a leading bakery company in India. The deal also sees an end to the

FOOD & DRINK BUSINESS EUROPE, APRIL 2009

Franck Riboud, chairman and chief executive of Danone.

7

april 09 issue

30/07/2010

12:25

Page 10

april 09 issue

30/07/2010

12:25

Page 11

I BEVERAGES

Constellation Europe Uncorks Europe’s Largest Wine Warehouse and Distribution Centre onstellation Europe is now operating from a new 80,000 sq m distribution centre and bottling facility near Bristol, England, following investment of Eur50 million. Constellation Europe is part of US-based Constellation Brands, which is the largest wine company in the world and a leading producer and exporter of wine from the US, Australia and New Zealand.

Formed in April 2004 following the integration of Constellation Wines Europe and UK drinks wholesaler Matthew Clark, Constellation Europe is one of the largest drinks companies in Europe. Constellation Europe is responsible for the sales, marketing and supply of Constellation wines, cider and drinks brands. The wine business

C

handles import, production, distribution, and sales for brands such as Hardys, Nobilo and Banrock Station.

Matthew Clark, Constellation’s joint venture with Punch Taverns, the UK’s largest pub operator, supplies imported wines and a full range of beverages primarily to the on-premise trade. Other brands in the portfolio include Kumala, Stowells, Ravenswood, Simi, Woodbridge by Robert Mondavi, and Robert Mondavi wines, Blackthorn and Gaymer’s Olde English cider and other drinks brands such as Babycham and Stone’s Ginger Wine.

Green Facility The recently opened complex at Avonmouth is the largest wine warehouse

and distribution centre in Europe.

Incorporating two bottling lines and three bag-in-box lines, the new centre not only houses all of Constellation’s bottled wine coming into the UK but is also bottling high volume Australian brands. Bottling overseas wines in the UK, as opposed to at source, significantly reduces transport related carbon emissions by up to a third.

Constellation expects to bottle 9 million 9 litres cases annually. Other green features of the new building include rainwater harvesting and sensor controlled lighting.

The new Eur50 million facility is designed to enhance Constellation Europe’s capacity to serve the entire UK and mainland Europe and to significantly reduce costs.

Puresep is Key Provider of State-of-the-art Filtration Equipment and Water Treatment Plant Constellation chose Puresep to provide state-of-the-art filtration technology and water treatment plant to its new site in Avonmouth. The filtration system, installed by Puresep and partner company, Begerow consists of two stepflow systems; ensuring wine is efficiently and economically filtered.

Stepflow filtration systems are fully automated bespoke units, integrated into the wine bottling process. Each system is skid mounted and duplexed, enabling filtration on one line while the other is in regeneration. Each line has a pre-filter and sterile filter stage.

A differential pressure monitoring system facilitates automatic changeover between lines; this is also linked to an operator station for permission to changeover. Mix proofed valves allow regeneration on one line whilst the other is in filtration. Regeneration is programmed to start at least every 12 hours of production; depending on the quality and the volume of wine.

Filter regeneration and integrity test is fully automated.

Stepflows are automated with the plants central control system, enabling all facets of the production line to be interlinked.

A steam generator was put in place to aid efficient cartridge sterilisation.

A wine warmer was installed to ensure the optimal wine temperature for efficient bottling.

Benefits of the stepflow system are: • Optimised cartridge use • Fully automated and user friendly • Minimised manpower • Environmentally friendly – reduced water consumption • No usage or disposal of filter powders • Enclosed self regenerating system and sterilisation program • Remote maintenance via analog/digital modem

• Local experienced engineers.

The Puresep water treatment plant boasts cost effective and efficient water supply to facilitate CIP use across the plant as well as boiler feed water.

Raw water is pumped from tank using a pressure controlled pump and fed to duplexed microfilters. Microfilters are skid mounted and fully automated, removing suspended solids and bacteria.

Control of microfilters is dependent upon water demand. The duty microfilter runs to maintain levels in the filtered water buffer tank, when levels fall, the control system enables both microfilters to supply filtered water.

Microfiltered water is then pumped through speed controlled pumps to a set of triplex co-current water softeners. It is at this stage scale forming salts such as calcium and magnesium are removed. Water softeners are sized such that only the duty softener will run and the remaining two units are in either standby or regeneration mode.

Softened water is then dosed with chlorine dioxide to ensure sterility; generated from the PureChlor Chlorine Dioxide system. This system is an effective and efficient way of generating CL02 for a number of purposes across site. It has a central PLC control system and is fully automated. Softened water is fed to two softened water storage tanks.

Softened water is also fed when required to the PureFlow Reverse Osmosis plant. Reverse Osmosis further purifies the water so that it is almost completely free of salts, colloids and germs. Permeate is fed to a storage tank to be drawn off for boiler feed steam applications across the plant.

Supplying Constellation with both filtration and water treatment solutions shows Puresep’s capabilities and strengths in providing bespoke systems across a whole plant, from water intake through to final packaging. Both systems are supported by 24/7 local experienced engineers.

FOOD & DRINK BUSINESS EUROPE, APRIL 2009

9

april 09 issue

30/07/2010

12:25

Page 12

Constellation Brands Parent group Constellation Brands, in addition to its extensive wine business, is also active in the spirits and imported beer categories, with significant market presence in the US, Canada, the UK, Australia and New Zealand. The company has more than 250 brands in its portfolio, sales in approximately 150 countries and operates more than 50 wineries, distilleries and distribution facilities. As well as being the largest wine producer in the world; by volume, it is also the largest premium wine company in the US; the largest wine company in the UK, Australia and Canada; the second largest wine company in New Zealand; and the largest beer importer and marketer in the US. Financial Performance Restructuring charges, acquisition-related integration costs and unusual items totalling $658 million, compared to $918 million for the prior year, impacted upon profitability at Constellation Brands during its 2009 financial year ending February 28th last. Constellation Brands reported a net loss of $301.4 million for 2009 and net sales fell 3% to $3.66 billion due primarily to currency exchange rate fluctuations.

Branded wine organic net sales on a constant currency basis increased 3%, which includes an 8% increase for North America, a 9% decrease for Europe, and a 3% decrease for Australia/New Zealand.

Global Restructuring Constellation Brands is currently in the process of implementing operational changes to simplify its business, increase efficiencies and reduce its cost structure on a global basis. These measure are expected to result in the elimination of approximately 5% of the group’s global workforce and rationalisation of certain facilities, but to produce cost savings of approximately $25 million in fiscal 2010 and more than $50 million by the end of fiscal 2011. J

Moeschle - Vessel Design, Manufacture and Installation Project YETI for Constellation Europe was a welcome challenge from the outset, requiring the full attention of Moeschle group as a whole. It was Moeschle’s brief to design and manufacture eighty-four reception storage vessels complete with access stair towers and walkways. Lead times were critical and supply/install was achieved well within the required deadline.

Moeschle also supplied a number of other vessels into the services areas of the plant for the storage of town’s and processed water.

The vessels were designed and manufactured at Moeschle’s main manufacturing facility in the south west of Germany. The vessels were transported by road and sea to Avonmouth over a 5-6 week period.

The logistics of moving this many vessels (all with movement orders) relied on a regimentally organised plan. The Moeschle installation team required the continual supply of vessels to successfully install the eighty-four vessels within a set period. After transporting the majority of the vessels to Avonmouth the installation of vessels, stair towers and walkways was carried out within a two week period.

The complete installation gives over five million litres of storage capacity and is one of the largest projects designed and manufactured

by Moeschle for delivery in such a short period of time.

Multiprint Labels would like to congratulate the management and staff at Constellation Europe on the completion of project “Yeti” and wish them all the success for the future at their new home in Constellation Park.

Multiprint Labels are proud to work in partnership with Constellation Europe.

Multiprint Labels Unit 2 Swords Business Park, Swords, Co Dublin.

T: +353 1 813 8900

10

E: info@multiprintlabels.com

FOOD & DRINK BUSINESS EUROPE, APRIL 2009

april 09 issue

30/07/2010

12:25

Page 13

I INDUSTRY ANALYSIS

Acquisition Opportunities Shine Amid the Gloom in UK Food Processing n the face of it, news in the UK food processing industry is grim - with a record number of companies losing money, and overall business values plummeting to the extent that almost half are now worth less than half their value of twelve months ago. However a new study by industry analysts Plimsoll Publishing, suggests that the current economic downturn represents one of the biggest opportunities in a generation, for those companies with the courage and the capital.

The study has rated each of the UK’s leading 650 food processors on their acquisition attractiveness. It found that 66 companies are ‘ripe for the picking’ based on a combined scoring system, incorporating overall financial strength, ownership, valuation and future potential.

These 66 companies are all privately owned, yet are showing a serious deterioration in financial performance. Given the reluctance of the banks to lend more, their time, money and options are running out.

O

even a year ago would have been unaffordable. We know of at least 270 companies within the industry, who have the cash to spend and could aid these 66 ailing businesses and ensure

their survival.”

The full analysis will help anyone in the industry, not only those looking to snap up a cheap acquisition, but also those looking for an investor, buyer to help

target those with cash to spend.

Copies of the full analysis are available for £350 and by calling Clair Sherwood on 01642 626400 or emailing c.sherwood@plimsoll.co.uk J

Classic Acquisitions David Pattison, senior analyst at Plimsoll, explains the results: “What we have indentified here is a group of ‘wounded animals’, many of these businesses have a long and distinguished history, yet their recent performance has deteriorated. By definition these are classic acquisitions.

Anyone looking to grow their own company through acquisition should be looking for businesses that are currently undervalued yet, with help, can be turned around.”

However, as he points out, “this will not be easy. Many will need rapid and deep cost cutting to get them back on a firm financial footing. We could see as many as 2125 jobs go over the next 12 to 24 months as these companies shrink to ensure their survival.”

Massive Opportunity Yet despite this dour prediction David Pattison sees a massive opportunity in the UK food processors market. “The current market conditions have presented an unprecedented set of opportunities to buy into a business that FOOD & DRINK BUSINESS EUROPE, APRIL 2009

11

april 09 issue

30/07/2010

12:25

Page 14

april 09 issue

30/07/2010

12:25

Page 15

COVER STORY

Focus on Confectionery Keeps Cadbury Sweet Having just completed the sale of its Australian drinks operations following the earlier demerger of its beverages business in North America, Cadbury is now reaping the benefits of being focused purely on confectionery.

W

ith a market share of 10.5% Cadbury is the world’s second biggest confectionery manufacturer. Cadbury was the global leader in confectionery but was recently pushed into second place following the $23 billion acquisition of Wrigley by Mars.

Cadbury holds number one or two positions in over twenty of the fifty biggest confectionery markets globally. It also boasts the largest and most broadly spread emerging markets business of any of its rivals, which in addition to Mars/Wrigley include Nestle, Hershey and Kraft.

The UK-based confectionery group’s brands portfolio incorporates many global, regional and local favourites including Cadbury Dairy Milk, Flake, Creme Egg and Green & Black’s in chocolate; Trident, Dentyne, Hollywood and Bubbaloo in gum; and Halls, Cadbury Eclairs, Bassett’s and The Natural Confectionery Company in candy.

focus on activities with greater potential for growth and profitability.

Transformational Acquisition Cadbury’s confectionery business has been transformed in the past five years by the successful integration of Adams, the US-based gum business bought for $4.2 billion in 2003. The Adams acquisition made Cadbury the only international confectionery company with strong brands and competitive positions in all three confectionery categories – chocolate, gum and candy. The deal also significantly increased Cadbury’s exposure to faster growing categories with gum and other ‘better-for-you’ products accounting for around 30% of its total portfolio.

Development Strategy “With critical initiatives such as the successful A member of the Cadbury board since demerger of our Americas Beverages business and the March 2000, Todd Stitzer was implementation of our Vision into Action business appointed chief executive in May plan, 2008 has been one of the busiest periods in the Single Focus The completion in April 2009 of the sale of its 2003. He joined Cadbury in 1983. history of Cadbury,” Todd Stitzer points out.

Schweppes Beverages business in Australia to Asahi “Introduced in June 2007, our Vision into Action Breweries of Japan for a cash consideration of approximately £550 mil- (VIA) business plan sets out a bold agenda with the clear vision of lion has ended Cadbury’s long involvement in the soft drinks market. becoming the world’s biggest and best confectionery company. This “The successful sale of Schweppes Australia has completed aspiration, built around developing a strong total confectionery model, Cadbury’s transformation into a pure-play total confectionery business. is supported by clear objectives, priorities and a financial performance Cadbury is now well positioned with a clear strategy to improve perfor- scorecard.” mance, a competitively differentiated portfolio of strong brands and The principal objective of the VIA 2008-2011 business plan is to attractive markets, and a committed management team with the capa- deliver superior shareholder returns by achieving specific performance bilities and experience to deliver our plan,” says Todd Stitzer, chief targets. These include maintaining organic sales growth momentum of executive of Cadbury. between 4% and 6% annually, increasing profit margins from around Listed on the London 10% to the mid-teens by 2011, increasing share of the global confecStock Exchange, Cad- tionery market, strong dividend growth and growth in return on 1bury (formerly know as invested capital (ROIC).

Cadbury Schweppes) had already demerged its Clear Vision American beverages arm “Our vision is to be the world’s biggest and best confectionery compa(now called Dr Pepper ny. Following the acquisition of Wrigley by Mars, we are now the secSnapple Group) via a ond biggest confeclisting on the New York tionery business by revStock Exchange in May enue. However, with sig2008, after difficulties in nificant scale in key marthe debt financing mar- kets and a strong global ket had prevented a presence, we remain a planned earlier sale of strong business partner the business. Cadbury to our customers and had also sold off its suppliers,” explains Todd European beverages Stitzer. “While we have Cadbury’s 13 focus brands, including Flake, business for £1.26 bilevery reason to aspire to generate half of total revenue. lion in 2006 in order to being the biggest in the FOOD & DRINK BUSINESS EUROPE, APRIL 2009

13

april 09 issue

30/07/2010

12:25

Page 16

april 09 issue

30/07/2010

12:25

Page 17

Panel One: Cadbury Dairy Milk Commits to Going Fairtrade

long-term, we will focus on being the best in the short-term.”

He adds: “If we want to be the best, we need to have margins that are as good as, preferably better than, our confectionery peers, and that is mid-teens.”

Cadbury has significantly improved Adams’ financial results since its purchase and Todd Stitzer believes this can be done with the whole of the portfolio to raise the overall margin up to mid-teens.

Cadbury and the Fairtrade Foundation plan to achieve Fairtrade certification for Cadbury Dairy Milk, the UK’s top selling chocolate bar, by the end of Summer 2009.

Now recognised by 70% of UK consumers, the Fairtrade Mark is an independent consumer label, which appears on products as a guarantee that disadvantaged producers are getting a better deal. Today, more than 7.5 million people – farmers, workers and their families – across 59 developing countries benefit from the international Fairtrade system.

The linkage between Cadbury Dairy Milk and the Fairtrade Foundation will result in the tripling of sales of cocoa under Fairtrade terms for cocoa farmers in Ghana, both increasing Fairtrade cocoa sales for existing certified farming groups, as well as opening up new opportunities for thousands more farmers to benefit from the Fairtrade system.

“This is an historic moment for our company. I am proud that the nation’s favourite chocolate bar will display the Fairtrade Mark,” says Cadbury chief executive, Todd Harriet Lamb, chief executive of the Fairtrade Stitzer. “We believe that by joining forces Foundation, and Todd Stitzer, chief executive of with the Fairtrade Foundation, we can fur- Cadbury, pictured during a recent visit to the Eastern ther improve living standards and condi- Region of Ghana, where they spoke to farmers about tions for farmers and farming communities, the modern-day difficulties of cocoa farming and and create a sustainable supply of high discussed how increasing stability of cocoa earnings through stronger farmers’ organisations and Fairtrade quality cocoa for Cadbury.”

The move, which also includes Cadbury’s certification could deliver significant improvements to hot chocolate beverage, marks the first livelihoods. anniversary of the Cadbury Cocoa Partnership (CCP), a historic initiative in which Cadbury is investing £45 million over the next ten years to secure the sustainable socio-economic future of cocoa farming in Ghana, India, Indonesia and the Caribbean where the cocoa farming industry is facing increasing challenges. Indeed, Fairtrade certification will be a further extension of Cadbury’s CCP programme.

The company has committed to the Fairtrade certification of Cadbury Dairy Milk for the whole of the British and Irish markets.

“Cadbury’s commitment is breakthrough news for the farmers in Ghana who are very excited that they will be able to sell more of their cocoa as Fairtrade, bringing greater benefits to their communities,” says Harriet Lamb, chief executive of the Fairtrade Foundation. “We are delighted to have the opportunity to certify Cadbury Dairy Milk, enabling all those who buy it to make a real Cadbury has committed to the Fairtrade certification of difference for cocoa farmers with every purCadbury Dairy Milk for the whole of the British and Irish chase. This certainly sets a new standard for markets. the mainstream chocolate industry.”

Cost Reduction and Restructuring Cost reduction is key to margin improvement along with a greater focus on profitable growth.

The VIA cost reduction and restructuring measures include cutting 15% of Cadbury’s global workforce and adopting a pan-European production model for chocolate, which has seen the manufacture of some products moved from the UK to Poland. VIA has also entailed introducing measures to turnaround four underperforming markets – Great Britain and Ireland, Russia, China and Nigeria.

During the course of the four year programme, Cadbury will invest £450 million on restructuring and some £200 million of incremental capital expenditure.

On the raw materials side of its business, Cadbury has also been taking measures to secure its future supplies of cocoa. Last year Cadbury launched the Cadbury Cocoa Partnership (CCP), which entails investing £45 million over the next ten years in cocoa farming in Ghana, India, Indonesia and the Caribbean (see Panel One).

Financial Performance The benefits of a singular focus on confectionery, following the demerger of its American beverages arm, are already evident at Cadbury. The world’s second largest confectionery group increased profit before tax by 57% to £400 million for 2008, reflecting improved underlying operating performance, favourable exchange rates and price rises to offset rising input costs.

Underlying margins improved by 150 basis points to 11.9% - well on track to achieving the target of profit margins in the mid-teens by

2011. Revenue rose by 15% to £5.38 billion at actual exchange rates and by 7% if the impact of acquisitions, disposals and currency factors are excluded – clearly ahead of the 4%-6% organic sales growth target.

Underlying profit from continuing operations grew by 35% to £638 million, or by 22% at constant exchange rates. This was primarily as a result of the continued successful implementation of the VIA con-

FOOD & DRINK BUSINESS EUROPE, APRIL 2009

15

april 09 issue

30/07/2010

12:25

Page 18

Business Units Cadbury is also simplifying its management structure by focusing on its seven underlying business units and removing a regional organisation layer. This structure is intended to ensure a stronger alignment of category strategies and commercial programmes across Cadbury, enabling faster decision-making and improving in-market execution, while also realising cost savings.

Cadbury’s seven business units are – North America, South America, Middle East & Africa, Britain & Ireland, Europe, Pacific and Asia. Reflecting Cadbury’s historic roots, Britain & Ireland is still the biggest geographical market, accounting for 24% of group revenues last year. Within Britain & Ireland, Cadbury operates eight manufacturing sites and employs 5,700 people. Contributing 22% of revenue last year, North America is the second largest region.

The VIA cost reduction and restructuring measures include adopting a panEuropean production model for chocolate.

fectionery cost reduction plan, and the implementation of price increases ahead of input cost inflation.

“Our strong revenue growth and significant improvement in operating margin demonstrate the relative resilience of our focused business model,” says Todd Stitzer.

Timely Exit The demerger of the North American beverages business was timely.

In contrast to the strong performance by Cadbury within a resilient confectionery market, Dr Pepper Snapple Group returned a net loss of $312 million in 2008 (after incurring a non-cash after-tax impairment charge related to goodwill and certain intangible assets of $1.04 billion), compared to net income of $497 million in 2007. Sales were relatively static edging up from $5.69 billion to $5.71 billion in 2008.

European Business Europe is the third most important business unit and generated 20% of sales in 2008. Cadbury’s main markets in mainland Europe are France, Turkey, Russia, Poland, Spain, Denmark, Greece, Portugal, Romania, Netherlands, Switzerland, Sweden, Norway and Belgium.

Cadbury has 17 manufacturing sites across the region, employing 10,700 people. The main brands are Trident, Halls, Hollywood, Stimorol, Dirol, Wedel, Carambar, Jelibon, Kandia and Po. Cadbury Europe achieved underlying profit from operations of £115 million from sales of £1.097 billion in 2008 to produce an underlying margin of 10.5%.

The 4% revenue increase reflected growth in gum and candy, offset by chocolate where there was some volume weakness in France, Poland and Russia. All countries grew with the exception of France, where revenue was unchanged.

Business margins in Europe advanced by 100 bps over the year as a whole due chiefly to improved business mix and tightened cost control. Good progress was also made across Europe in implementing key elements of the VIA business plan, reflecting good project management of several major investments, included the gum supply chain reconfiguration and the implementation of a pan-European manufacturing strategy for chocolate.

Whereas North America, Britain and Ireland are mature confectionery markets, Cadbury’s Europe business unit encompasses many faster growing emerging regions, especially in the east. Focusing on developing emerging markets is a key thrust of Cadbury’s strategy.

Indeed, emerging markets accounted for over a third of group sales last year and for 60% of revenue growth.

“2008 has also been a year of strong financial performance for Cadbury as a standalone confectionery business. In brief, we have exceeded our revenue growth targets, improved our global market share, delivered strong margin progress, increased our dividend and made a healthy increase in our overall return on invested capital. We have put long-term financing in place and strengthened our balance sheet.

Underpinning these commercial and financial goals, we have made good progress on our sustainability commitments,” he summarises.

Major Developments Cadbury has been implementing VIA for just over 18 months. “We have started well, delivering 150 bps margin gain from the plan in 2008, and we expect to benefit further from our cost saving initiatives in 2009. In addition, we are also making good progress on the more complex reconfiguration projects that will benefit us progressively more in 2010 and 2011,” he comments. “We are investing a considerable amount of our shareholders’ funds in improving the performance of our confectionery businesses. As a result, we are committed to ensuring the programme is well-managed and delivers our full expectations.”

Cadbury has been reducing its sales and administrative costs and also streamlining its supply chain to save money. Key projects which benefited underlying 2008 results included the down-sizing of central functions and relocation of group headquarters from central London, and restructuring of the Americas business by consolidating its various operations in the US, Canada and South America into larger organisations. Distribution and warehousing in the UK has also been consolidated while the chocolate production facility in Ireland has benefited from increased automation.

During 2008, Cadbury undertook a number of projects, the advantages of which will be evident over the next three years. For instance, chocolate and candy manufacturing in Australia and New Zealand has been reconfigured to achieve plant optimisation and improved supply chain efficiencies. Cadbury has completed the start up of a major gum factory in Poland which will enable progressive supply chain efficiencies to be realised from 2009 onwards (see Panel Two). The UK confectionery giant has also further consolidated its European operations, establishing a single, state-of-the-art science & technology centre of excellence in Switzerland, focusing on gum and candy.

Roger Carr, chairman of Cadbury.

16

FOOD & DRINK BUSINESS EUROPE, APRIL 2009

Focus on Brands Of course, a constant feature of Cadbury’s long and distinguished history has been the strength of its brands both those developed

april 09 issue

30/07/2010

12:25

Page 19

april 09 issue

30/07/2010

12:25

Page 20

in-house and through acquisitions. Today, Cadbury’s focus brands – Cadbury Dairy Milk, Trident, Hall’s, Green & Black’s, The Natural Confectionery Co, Creme Egg, Eclairs, Flake, Dentyne, Clorets, Hollywood, Stimorol and Bubbaloo – generate half of total revenue and are significantly more profitable than the group’s confectionery portfolio as a whole.

Cadbury’s 13 focus brands grew by 8% in 2008 with its three largest brands, Cadbury Dairy Milk, Trident and Halls ahead by 11%, 11% and 9%, respectively. During 2008, Cadbury increased its marketing spend by £97 million to £584 million. Marketing as a percentage of sales was 10.8% - an increase of 40 bps on 2007.

Panel Two: Cadbury Continues to Invest in Poland Cadbury has completed the start up of its £70 million gum factory at Skarbimierz in Poland which will enable progressive supply chain efficiencies to be realised from 2009 onwards. The UK-based confectionery giant is also further modernising its Wedel factory in Warsaw and extending its chocolate plant in Bielany Wroc.awskie. Cadbury also plans to build a new chocolate manufacturing facility next to the gum factory at Skarbimierz, which produces brands such as Trident, Stimorol, V6 and Hollywood to service Cadbury’s the fast growing European gum business.

The various projects have made Cadbury one of the largest investors in the food industry in Poland.

Cadbury has been investing in Poland since 1993, when it established its first chocolate production unit Bielany Wroc.awskie. In 1999, Cadbury acquired Wedel, owner of the leading chocolate brand in Poland, and subsequently modernised the factory in Warsaw in 2007.

The expansion of the Bielany Wroc.awskie plant is scheduled for completion by the end of 2009, while the new chocolate factory in Skarbimierz is set to be opened in 2010.

Outlook Todd Stitzer expects group sales to grow by between 4% and 6% in 2009 but towards the bottom end of Cadbury’s medium term target, while the group continues to make good progress towards the goal of mid-teen margins by 2011. “We are recession resilient not recession proof, with our performance set to be resilient in a world of reduced growth,” he says.

Restructuring costs for 2009 are expected to be about £150 million, with £120 million related to the VIA programme. Capital expenditure is projected at between £360 million and £400 million, including about £100 million of VIA related expenditure.

Like other food groups, Cadbury is facing significant challenges in 2009 as it continues to implement its development strategy amidst a turbulent and competitive economic environment.

“In this environment, our consumers and retail partners will be demanding more from Cadbury – whether it is in the form of innovation, product quality or even higher service levels. I believe we have a strong and capable team who will rise to these challenges and raise our game where needed. At the same time, we are committed to delivering the benefits of our strategy, delivering revenue growth and pushing margins higher. We have the focus as well as the plans and actions in place to help us achieve these goals and, with sustained dedication from the team, I am confident we will succeed,” he concludes. J

ul. Wierzbowa 30 63 – 720 Kozmin Wlkp. / Poland www.lege.com.pl arpak@lege.com.pl k.walesa@lege.com.pl tel +48 62 7 216 744 fax +48 62 7 216 199 ARPAK was established in year 2000

ARPAK produces CUSHION PADS – soft inserts made of paper and used mostly in confectionery industry We offer 3, 5, 7 or 9 layers cushion pads from different papers (white / black / brown / purple etc) and other materials (PP metalised foil / PP white pearlised foil / paper covered with PE) in various shapes (rectangular / square / heart / oval etc. according to customers wishes) All raw materials used in production have food contact certificates.

ARPAK is certified by SGS as meeting the requirements of BRC/IoP, ISO 9001:2008 and ISO 14001:2004.

18

FOOD & DRINK BUSINESS EUROPE, APRIL 2009

april 09 issue

30/07/2010

12:25

Page 21

I CONFECTIONERY

Cocoa and Chocolate Solutions From ADM Cocoa International DM Cocoa is a premier, global supplier of cocoa and chocoA late solutions in the business-to-business market. ADM Cocoa works closely with customers to develop consumer-winning products. The company serves the confectionery, bakery, dairy, beverage and other food sectors throughout Europe with a comprehensive range of products from semi-finished cocoa liquors, cocoa butters and cocoa powders to the finest eating chocolates. ADM Cocoa’s knowledge, flexibility, customer focus and innovation in chocolate and cocoa form the foundation of its success.

The company’s sustained growth in the cocoa and chocolate business draws on ADM’s global scale and financial stability.

New processing facilities in Hazleton, Pennsylvania, USA, and Kumasi, Ghana, plus the recent announcement to acquire the chocolate and cocoa producer, Schokinag in Mannheim, Germany, demonstrate ADM Cocoa’s ongoing commitment to chocolate and cocoa customers around the world.

ADM Cocoa is best known for its premium De Zaan® and Unicao® brands of cocoa and chocolate solutions. This exceptional product portfolio is strengthened by the company’s proud 100-year, cocoa heritage, global sourcing and processing capabilities, technical expertise and market knowledge. Present in major cocoa growing regions, ADM Cocoa is a world leader in support of responsible, sustainable cocoa development.

For further information contact: ADM International on Tel

+41 (0)21 702 8003, Fax +41 21 702 8888 or visit www.adm.com. J

Organic Certified Paprika Extract nlike conventional paprika oleoresin, a bulk product obtained U by hexane extraction, organic paprika extract is produced from sweet red peppers (Capsicum annuum) obtained by organic farming. After harvesting, drying and milling of the ripe fruits a powder results with dark red colour, mild aromatic taste and almost no capsaicin.

The powder material is processed by supercritical CO2-extraction to give the paprika extract. This method is not only compatible to organic certification; it works under gentle conditions and exclusion of oxygen and eliminates any solvent residue problems.

CO2-extraction separates carotenes, capsanthin and capsorubin, the most valuable ingredients, as well as fatty oil, traces of tocopherols and volatile flavours but no polar lipids or glycosides.

The supercritical paprika extract is standardised with organic sunflower oil to 40,000 CU corresponding to 3% carotenoids. The colour is stabilised by addition of organic rosemary antioxidant which has anti-microbial efficacy at the same time. The extract is most suitable to provide an attractive orange/red hue to organic certified products independent from ph-value of the formulation.

Since total capsaicinoid content is less than 50 ppm, the paprika extract is not only suitable for savoury products, meat, seasonings, dressings and snacks but also for coloured fruit and dairy preparations, sweets and beverages. For further information visit www.flavex.com. J

FOOD & DRINK BUSINESS EUROPE, APRIL 2009

19

april 09 issue

30/07/2010

12:25

Page 22

Melt-in-the-mouth process solutions. Buhler is the leading global technology partner in the food industry. The merged resources of Buhler Barth, Frisse and Buhler Bindler offer solutions for all process stages: Turnkey solutions providing genuine added-value from raw cocoa beans to finished, moulded chocolate. Pioneering production solutions that just melt in your mouth.

The solution behind the solution.

Buhler Ltd. 20 Atlantis Avenue, London, E16 2BF Tel: 0207 0556650 Fax: 0207 0556651 www.buhlergroup.com, buhler.london@buhlergroup.com

Advetec specialises in the bio-degradation of effluent and wastes associated with industrial output and domestic wastewater as well as other recycling applications.

The Old Dairy, Writhlington, Bath, BA3 5SL, England

Mob. +44 (0)7775 521816 Fax. +44 (0)1761 433365 Tel. +44 (0)1761 433434 Email:c.shaw@advetec.net Web: www.advetec.net www.nrpltd.com

Advetec provides turnkey solutions for dealing with discharged effluent involving aeration, bio-stimulation and the construction or redesigning of complete effluent plants.

The use of modern and innovative technologies such as bio-augmentation products and the use of the Advetec own branded micro-aeration systems provide unique solutions for small or large production facilities whatever the limitations of space and financial resource.

Advetec products are particularly effective in the following industries: • • • • • • • • •

Agriculture Aquaculture Bio-Fuels Bio-Remediation Composting Food Processing Landfill Odour Wastewater

april 09 issue

30/07/2010

12:25

Page 23

I CONFECTIONERY

Cadbury and the Global Confectionery Market Now relegated to second place since the acquisition of Wrigley by Mars, Cadbury continues to win global market share and is determined to regain its top ranking. ith retail sales exceeding $150 billion globally last year, confectionery is the fourth largest segment within the total packaged foods market, which is worth an estimated $1,800 billion worldwide. According to Todd Stitzer, chief executive of Cadbury: “The confectionery market has been growing around 5% pa, with revenues growing in low single digits in developed markets and in double digits in emerging markets.

Brand loyalty, a high level of impulse sales and limited private label penetration mean that confectionery is also a profitable market for companies with strong brands and effective routes to market.”

W

Cadbury’s second ranked position within the global gum market is based on strong market shares in the Americas, in Europe, and in Japan, Thailand and South Africa.

The global confectionery market has exhibited a 5% compound annual growth over the past five years. Developed markets, which account for about 60% of total sales value, have been growing at about 3%.

However, emerging markets, due to their higher population growth rates and rising levels of prosperity, have been expanding much faster at around 10% pa.

In contrast to many other food markets where the supermarket multiples dominate, confectionery is characterised by a relatively low level of penetration by private label products, which is only about 4%, and a high proportion of sales through other types of retail outlets. Impulse purchases in smaller shops and other convenience outlets, where confectionery is bought by consumers on impulse rather than as part of a

planned shopping trip, still account for about 40% of sales in developed markets and for a higher proportion in emerging markets.

Innovation has been key to driving market growth in developed markets where premium and ‘better-for-you’ products have been rising in popularity. Despite the global economic crisis, confectionery is still regarded as an affordable treat or luxury.

Cadbury Dairy Milk is the company’s largest chocolate brand.

Market Segments The confectionery market is divided into three distinct segments – chocolate, gum and candy. Chocolate is the largest, accounting for about 55% of all global confectionery sales and has grown at a rate of 6% in the last four years. The top five players - Mars/Wrigley, Nestle, Kraft, Hershey and Cadbury - control about half of all global chocolate sales. However, chocolate is a regionalised business with local tastes determining consumer preferences.

Generating 14% of global confectionery sales, gum is the fastest growing segment of the market, rising at a rate of 7%. It is also the most consolidated and internationalised with the top two players, Wrigley and Cadbury, controlling over 60% of the market between them. Sales growth in gum is being driven by innovation and marketing.

Candy is the slowest growing segment (4% growth rate) and is also the most fragmented, featuring a plethora of local brands and manufacturers with the top five players only holding a combined 24% market share.

£5.4 billion in 2008.

In gum, Cadbury is ranked second to Mars/Wrigley and has 28.9% of global sales. Its other main rivals in gum include Lotte, Perfetti and Arcor. Gum generates a third of Cadbury’s group sales.

With a market share of 7.2%, Cadbury is the world’s leading candy manufacturer. Its key rivals in candy include Perfetti, Mars/Wrigley, Haribo and Hershey.

Cadbury derives 21% of its sales from candy.

Although recently overtaken as the world’s leading confectionery manufacturer

by Mars/Wrigley, Cadbury is well placed to expand at a faster pace than its rivals and to continue to win market share due to the strength of its product portfolio and geographical spread.

With a global market share of 10.5% Cadbury is the second largest confectionery company in the world and is ranked first or second in more than twenty of the world’s fifty largest confectionery markets by retail value. Indeed, markets where Cadbury is either the number one or two player accounted for about three-quarters of group revenue in 2008.

World Ranking Cadbury is ranked fifth globally in chocolate with a 7.5% market share. Chocolate accounted for 46% of its total revenues of

Growth Potential “Cadbury’s growth potential is underpinned

The Global Confectionery Market Sector

Sales

Cadbury Market Share

Cadbury Ranking

Chocolate Candy Gum

$87b $49b $23b

7.5% 7.2% 28.9%

5th 1st 2nd

$159b

10.5%

2nd

Total Confectionery

FOOD & DRINK BUSINESS EUROPE, APRIL 2009

21

april 09 issue

30/07/2010

12:25

Page 24

He continues: “Another trend is health and wellbeing. One of the reasons we invested in the chewing gum business was that it is a sweet snack with generally no calories and no fat. We believe that the chewing gum industry is being driven in part by consumers seeking a sweet snacking experience with low calories and low fat.”

With a global market share of 10.5% Cadbury is the second largest confectionery company in the world and is ranked first or second in more than twenty of the world’s fifty largest confectionery markets by retail value.

by its robust business model. We have strong brands and strong competitive positions in the three major confectionery categories: chocolate, gum and candy. More importantly, we have a strong presence in faster growing categories such as gum and other ‘better-for-you’ products,” points out Todd Stitzer.

Reflecting the regional nature of the global chocolate market, Cadbury has built its chocolate confectionery business by achieving strong positions in key markets such as the UK, Ireland, Australia, New Zealand, South Africa and India. Cadbury Dairy Milk is the company’s largest chocolate brand. Other key chocolate brands include Creme Egg, Flake and Green & Black’s.

Trident is Cadbury’s largest gum brand.

Cadbury’s second ranked position within the global gum market is based on strong market shares in the Americas, in Europe (including France, Spain and Turkey) and in Japan, Thailand and South Africa. Other major gum brands are Hollywood, Stimorol, Dentyne, Clorets and Bubbaloo.

Halls is the largest candy brand in the world, and accounts for approximately onethird of Cadbury’s candy revenues. Halls and other global, regional and local brands such as Maynards, The Natural Confectionery Co and Cadbury Eclairs have made Cadbury the world leader in candy.

Market Trends Drawing on its rich heritage, strong brands and marketing expertise, Cadbury is well equipped to capitalise on the key consumer trends within the confectionery market.

“Consumers absolutely want quality products, things that taste good, look good and are good value. We always have to be sure our products are high quality and good value,” the Cadbury chief executive says.

“Consumers increasingly are looking for naturalness. Which is why we purchased Green & Black’s, the organic chocolate company, and The Natural Confectionery Co, a company that uses completely natural ingredients. We are also seeking to replace many of the artificial colours and flavours in our products with natural colours and flavours.”

22

Well Placed Cadbury is strongly placed within the growth sectors of the global confectionery market. For instance, gum, which is the fastest growing market segment, accounts for a third of Cadbury’s revenues against 14% of the global confectionery market as a whole. Cadbury has also built up a strong portfolio of ‘better-for-you’ products such as fortified/functional confectionery and reduced-sugar confectionery, which represent about 17% of the total confectionery market but generate about 30% of Cadbury’s revenues. Better-for-you confectionery grew by 11% pa between 2002 and 2007 compared to 5% for the global confectionery market overall.

“We have an undeniably unique business platform. We’re number one or number two in around half of the world’s biggest confectionery markets, and in those markets we are number one or number two by virtue of being strong in one or two of the three confectionery categories. This offers us a great opportunity for growth by rolling out a second or third category. Also, we offer people affordable moments of pleasure, which means we get a lot of repeat business and good cash flow. This means we have money to invest in innovation, efficiency and our people to ensure we keep

“Consumers increasingly are looking for naturalness. Which is why we purchased Green & Black’s, the organic chocolate company, and The Natural Confectionery Co, a company that uses completely natural ingredients,” says Todd Stitzer.

FOOD & DRINK BUSINESS EUROPE, APRIL 2009

Halls is the largest candy brand in the world, and accounts for approximately one-third of Cadbury’s candy revenues.

growing our footprint and our earnings. So there are plenty of opportunities for us to continue to expand around the world and to become as efficient as we possibly can and that is what we are focused on,” he explains.

Similarly, Cadbury has developed leading positions in fast growing emerging markets like Brazil, India, South Africa, Russia, Thailand and Mexico, and has a much stronger presence in these regions than any of its major rivals. During the past five years, Cadbury’s confectionery business in emerging markets grew on average by 12% pa on a like-for-like basis and now account for over a third of group revenues and 60% of revenue growth.

Developing emerging markets will remain a key focus for Cadbury and it is likely to retain a distinct advantage over its rivals.

“We’ve been investing in Africa since the early 1900s, in Latin America since the 1920s, in India since the 1940s. So we’ve been there for a long time, we’ve created distribution systems and consumer relationships through brands. We have just been there longer, and we have a strong platform on which we can build,” Todd Stitzer remarks.

Scope for Continued Expansion Although heavily influenced by manufacturers’ brands, the global confectionery market is still relatively open – the top five companies account for 42% of sales - offering major scope for further consolidation and expansion by the big international players. For instance, Cadbury is reported to be interested in acquiring the Scandinavian and Benelux businesses of Dutch confectionery company Leaf International, the maker of Sportlife gum and Red Band candies. These Leaf operations have an estimated valued of about Eur600 million and are being put up for sale, with the rest of the Leaf portfolio, by private equity owners CVC Capital and Nordic Capital.

While Cadbury will to continue to grow organically and by purchasing smaller competitors, its ability to regain its position as the world’s leading confectionery manufacturer will ultimatly rely upon the acquisition of, or merger with, one of its key rivals such as Hershey. J

april 09 issue

30/07/2010

12:25

Page 25

april 09 issue

30/07/2010

12:25

Page 26

I CONFECTIONERY

Chocolate: Process Solutions that Melt on the Tongue uhler is the global technology partner of B customers which produce chocolate products on an industrial scale.

Buhler has led the development of chocolate production for almost a century, setting standards in the chocolate industry.

For example, the two-stage refining process developed by Buhler is applied in the production of more than 80% of the world’s chocolate, and Frisse conches are the quality standard in commercial chocolate production.

• Blending & mixing, refining, conching.

Buhler has fine-tuned the process chain for producing chocolate masses so that capital investments are paid back within a short time by significant added value – in the form of high efficiency, excellent taste, and outstanding rheological properties.

• The SeedMaster process has revolutionised the tempering of chocolate. This pre-crystallisation process, launched by Buhler in 2002, boosts the shelf life of filled chocolates. Compared with conventional processes, it requires up to 60% less energy and its robustness makes it resistant to factors influencing the process.

• Making a wide variety of chocolates thanks to FlexiStamp™ multiple stamping head.

The stamping plates are arranged on a

The Buhler FlexiStamp.

Buhler believes in the future of the chocolate market and is committed to the continuous development of new innovative technologies.

Process Solutions

Process solutions from Buhler include:

The Buhler SeedMaster.

Interior view of the Buhler Conche.

shaft which can be quickly turned during production changes to suit the required product geometry.

Each stamping plate is supplied with its own cooling medium. This prevents unnecessary cooling and therefore reduces energy consumption when stamping plates are idle.

The new FlexiStamp™ system slashes production change-over times, reducing downtimes and minimising the resulting costs for producers.

This flexible solution developed by Buhler Bindler ensures a productionfriendly and efficient cold stamping process. Today, nothing can prevent higher batch production flexibility. For further information visit www.buhlergroup.com. J

Creamelt From IOI–Loders Croklaan or manufacturers who are listening to F the needs of customers and consumers, the Creamelt™ range of filling fats provides the ultimate feeling of indulgence.

The Creamelt™ range of filling fats is intended for use in premium quality filled chocolates, the shells of which are mainly composed of cocoa butter and/or cocoa butter equivalents (CBEs). The compatibility of Creamelt™ with cocoa butter is therefore of major importance in maintaining the texture of the chocolate shell on storage.

This premium filling fat group provides the same processing and eating properties as cocoa butter: a fresh, clean melt, outstanding flavor release, and long-lasting stability.

Creamelt™ filling fats are available in a wide range of melting profiles ranging from 24

the soft Creamelt™ 100 through to the hard Creamelt™ 900 which has a melting FOOD & DRINK BUSINESS EUROPE, APRIL 2009

profile very similar to that of cocoa butter.

Creamelt™ products are non-hydrogenated and free from trans fatty acids so allow for a clean labeling.

Loders Croklaan is a leading global palm oil company and part of the IOI Group, a leading Malaysian plantation company with various downstream activities and a fully integrated supply chain, from tree to customer. Loders Croklaan Speacialty Fats and Oils is a leading supplier to food manufacturers around the world with key interest in the confectionery industry. IOI-Loders Croklaan is a founding member of the RSPO, the Roundtable for Sustainable Palm Oil and committed to full certification of all its plantations. For further information visit www.croklaan.com. J

april 09 issue

30/07/2010

12:25

Page 27

april 09 issue

30/07/2010

12:25

Page 28

I CONFECTIONERY

Processing Solutions from the Ladco Group Beetz Mixing Technology is receiving many enquires from around the world for its product range which has been redesigned recently. The Vacuum Beetz Mixer for recycling of waste products, for the production of milk crumb and for the alkalising of liquor, is of particular interest.

For further information visit www.ladco.co.uk, www.macintyre.co.uk or ww.petzholdt-heidenauer.de. J

he Ladco Group, which consists of T MacIntyre Chocolate Systems, Petzholdt Heidenauer and Beetz Mixing Technologies, has had a very busy start to 2009.

The MacIntyre range of Refiner/Conches are in demand as are the Shear Attachments which improve the refining and conching of low fat content chocolate, reducing the cycle time and improving the final quality of the chocolate. MacIntyre is receiving a

A Millennium Refiner/Conche with a Shear from MacIntyre.

lot of interest in its Continuous Motion Chocolate Moulding Plants which can achieve much higher outputs than the conventional Moulding Plants and give a

A Mixer from Beetz Mixing Technologies.

much smoother action, reducing the wear characteristics of the Moulding Plants.

Petzholdt Heidenauer is receiving a lot of interest in its new range of Bean Processing Equipment and its highly developed Continuous Conching System which is being accepted more and more for high volume output chocolate conching worldwide. This particular system takes up very little floor space. It is modular designed and at present can handle throughputs from 1 tonne per hour up to 6.5 tonnes per hour. It uses less energy than conventional conching systems and can be easily adapted to produce the exact flavour developments required by demanding high quality customers worldwide.

Continuous Conching System from Petzholdt Heidenauer.

I FLUID HANDLING

AxFlow Takes Over TAPS xFlow UK has acquired Yorkshire-based TAPS, one of the leading pump and A mechanical seal service and repair operations in the North of England. The takeover, which was formalised in January, is a major development for AxFlow as it provides the company with a substantial inhouse pump maintenance engineering resource and operational base for its northern customers and prospects.

TAPS was formed in 1994 and from its new 11,000 sq ft premises in Huddersfield the company provides a nationwide repair and sales service encompassing a wide range of pump types and mechanical seals.

“This is the most important development that we have undertaken in the UK. Bringing TAPS into AxFlow strengthens 26

our service capabilities and gives us the additional engineering resources that will allow us expand our capabilities as a provider of fluid handling solutions,” says Tony Peters, managing director of AxFlow. “Under the stewardship of founder Tom Cooper, TAPS has built up a fine team of engineers and support staff which will be a great asset to the AxFlow

FOOD & DRINK BUSINESS EUROPE, APRIL 2009

group of companies.”

Following a programme of investing in the most up to date technology, premises and engineering resources has enabled TAPS to establish a reputation as one of the best repair shops in the business, Tony Peters points out. “AxFlow is recognised as one of the premier pump suppliers in the UK but we needed to strengthen our service capability in order to address the increased demand for this aspect of our business. The addition of TAPS to our organisation achieves this goal and provides us with a North of England base to add our operations in London and Aberdeen,” he remarks.

For further information contact AxFlow on Tel +44 (0)20 8579 2111 or visit www.axflow.co.uk. J

april 09 issue

30/07/2010

12:25

Page 29

I CONFECTIONERY

Cocoa, Chocolate and Health

By Steve Laning, Director of Innovation and Marketing, ADM Cocoa International ell before its introduction to W western consumers in the sixteenth century, cocoa, and its most popular derivative, chocolate, have long been used as therapeutic and medicinal remedies. In fact, cocoa and chocolate have always been regarded as considerably more than simple treats or drinks.

There are many popularised, yet largely unsubstantiated, myths associated with chocolate consumption.

From addiction and headaches to acne and tooth decay, chocolate consumption has found its critics. In each case, the science surrounding such claims does not support them.

Even the long-standing claim that chocolate is high in saturated fat content and therefore, contributes to elevated cholesterol levels, is losing credibility. The simple fact is that people seek out chocolate and cocoa products because of their great taste.

Chocolate consumers need no longer feel guilty about treating themselves because the news about chocolate, cocoa and health is increasingly positive.

Human Health In the 1990s, research began to learn more about chocolate consumption and human

health. Initial studies focused on the natural antioxidants found in cocoa and their bioavailability. It was soon confirmed that cocoa is an extraordinary source of such compounds and that they are readily assimilated into the body upon consumption of cocoa or chocolate containing products.

Subsequently, the research community has repeatedly linked these antioxidants, cocoa flavanols, with a reduction in risk factors associated with cardiovascular disease. More importantly, as global research has progressed, more positive indications are being reported. These include improved cognitive and immune system function, inhibiting effects on carcinogenesis and aging, and reduced cholesterol levels.

Cholesterol Levels Even the fat found in chocolate – cocoa butter – is being considered in a different context. This is because stearic acid, which amounts to about half of the saturated fat found in cocoa butter, has been determined to be neutral in terms of its impact on cholesterol levels. This, along with the presence of cocoa flavanols, may explain why chocolate consumption and increases in cholesterol appear unrelated.

The vast body of research and intense media coverage of this topic has helped to inform many consumers of chocolate’s potential health benefits.

Chocolate and cocoa products are also becoming popular vehicles for other food ingredients with positive health connotations. For example, chocolates and cocoa beverages are now being paired with omega3 fatty acids, cholesterol-reducing phytosterols, sources of fibre, and probiotics.

Today, contrary to once well entrenched beliefs, it is easy to see why chocolate can be considered a beneficial part of a well-balanced diet and active lifestyle. Perhaps the most important benefit of all is the quiet pause taken to enjoy a fine piece of chocolate or delicious cocoa beverage. J

Hand-made Bows, Roses and Rosettes From Hannah annah company was established in H 1981 by owner Hanna Bienkowska, the prize-winner of the clothing and furriery competition – The Golden Needle in 1985. After 11 years of business activity in the field of designing and dressmaking in Poland and abroad, she started to import decorative ribbons, trimmings and specialist and haberdashery fasteners.

Ms Bienkowska has obtained the exclusive rights for Poland to import Velcro (the biggest producer of fasteners in the world) products, and the products of Selectus from England, Textilwerk Carl

Friedrich from Germany and those of some other companies. In 2000 she FOOD & DRINK BUSINESS EUROPE, APRIL 2009

extended her offer, and introduced the hand-made production of bows, roses and rosettes, made from very high quality ribbons, which are now held in great esteem by such companies as Nestle, Cadbury and Lindt.

Currently Hannah is a leading manufacturer of hand made bows in Poland and offers a wide range of products designed according to special customer requirements. Elegant bows offered by Hannah enhance the appearance of products and are an easy way to create unusual and pretty gifts for every occasion. J 27

april 09 issue

30/07/2010

12:25

Page 30

I WASTE MANAGEMENT

Environmentally-friendly Effluent Management Solutions From Advetec K-based Advetec (Advanced U Environmental Technologies) manufactures and supplies totally natural, environmentally friendly products that are helping to meet the increasing demand from food and drink processors for effective waste management solutions that keep costs low and are safe to use.

Advetec has developed products that are ‘not chemical’ or ‘bacterial’ but are blends of naturally occurring plant matter that invigorate indigenous bacteria and stimulate metabolic processes to work more effectively. The application of Advetec

products in the waste management process is a key ingredient of IPPC success by reducing: • COD • BOD • TSS • Fats, oils and greases • Hydrogen sulphide odour • The effects of corrosion • Sludge, blockages and bacteria based processing plant infection • Effluent handling charges.

Advetec’s totally natural, environmentally friendly products give astounding results and produce financial savings which help profitability. These apparently simple products are dispensed into the effluent stream via Advetec’s unique dispenser which is manufactured in the UK. The resulting effects of this invigoration are that the bacteria digest the oils, grease, solids and other bio-matter within the effluent stream. Odours are reduced as the anaerobic activity is suspended, COD and BOD is dramatically reduced due to the cleaning of the effluent stream and the vol-

QUALITY

I MICROBIOLOGY Oxoid Alliance Allows Manufacturers to Test for Food Allergens Oxoid has announced that the ELISA Systems range of quick and easy-to-use food allergen tests kits is now available alongside the Oxoid range. The amount of allergenic material required to cause a reaction in a sensitive individual can be very small.

Raw materials, finished products and environmental swabs can all be tested using the ELISA Systems tests. Products in the range include tests for almond, buckwheat, crustaceans, egg, gliadin (or gluten, the protein found in wheat), hazelnut, milk (separate tests for casein and beta-lactoglobulin), mustard, peanut, sesame and soy.

28

One advantageous feature of these products is the simple extraction process, which minimises the sample preparation time and is common across the range. All critical test reagents are in a ready to use liquid format, and presented in colour coded bottles, again making the tests quicker and easier to use.

For further information about ELISA Systems food allergen tests, speak to your local Oxoid representative or contact Oxoid on Tel +44 (0)1256 841144 or visit www.oxoid.com. J

ume of sludge, fats, oils and grease that are collected can be reduced by up to 80%.

From a financial point of view this is good news for business. COD and solids are elements within the utility bill that are extremely costly - reduce these and the utility bill reduces. Fats, oils and grease are expensive to dispose off and cause maintenance problems and production down time. Reducing or eradicating these elements has to make sound financial sense.

For further information contact Craig Shaw at Advetec on Tel +44 (0)1761 433434, Mobile +44 (0)7775 521816, Fax +44 (0)1761 433365, E-mail c.shaw@advetec.net or visit www. advetec.net or www.nrpltd.com. J

& HYGIENE

I AUTOCLAVES

• The PS/QCS/EH150 mid range, 150L capacity Front Loader.

Priorclave has more than 20 years experience in supplying autoclaves to laboratories with industry wide applications, manufacturing and supplying varying models from the 40L capacity Bench Top to Rectangular models of 700L capacities and above. For further information contact Priorclave on Tel +44 (0)20 8316 6620 or visit www.priorclave.co.uk. J

Priorclave at ACHEMA 09 A quirky new look to Priorclave’s stand (D19/F20 in Hall 6.2) at ACHEMA 09, Frankfurt, May 11-15, will give visitors an opportunity to see an autoclave from a different perspective and closely examine examples from Priorclave’s comprehensive range of laboratory autoclaves that will include four of its most popular, electrically heated models: • The PS/MID/C40 is the smallest, 40L capacity bench top model.

• The PS/MID/C60 is the smallest, 60L capacity floor standing model.

• The PS/QCS/EV100 A range of top loading, front loading and mid range, 100L capacrectangular priorclaves. ity Top Loader.

FOOD & DRINK BUSINESS EUROPE, APRIL 2009

april 09 issue

30/07/2010

12:25

Page 31

QUALITY

& HYGIENE

Total Cleaning and Hygiene Solutions From JohnsonDiversey ohnsonDiversey is a leading provider of J commercial cleaning and hygiene products and solutions for food safety, food and

explains David Childs, Applications Team Leader, Food Group at JohnsonDiversey.

beverage hygiene, floor care, housekeeping and room care, laundry, hand hygiene and industrial cleaning. They offer a wide range of value-added services, including safety and application training, consulting, hygiene auditing and engineering support.

Solutions for all Businesses As a leading global provider, JohnsonDiversey has state-of-the-art cleaning and hygiene solutions for bottlers, food processors and dairy operators. “We work with customers to provide the highest level of cleaning and sanitation to protect their brand image and product integrity. We offer a complete range of systems and products to cover all our customers’ cleaning and sanitation needs, from cleaning-inplace (CIP) to open-plant-cleaning (OPC), from conveyor lubrication to floor-care programs,” adds David Childs.

The food and beverage products include: • detergents, cleaners, sanitizers, lubricants and cleaning systems; • electronic dispensers and chemical injectors for the application of chemical products; • gel and foam products for manual OPC; • acid and alkaline cleaners; • track treatment solutions; • water conservation solutions; • consultation in food safety, operational efficiency and quality management.

In understanding the risks its customers in food face daily, reducing the threat of food-borne pathogens for their customers.

JohnsonDiversey’s expertise is making food safer while protecting the business interests of its customers.

Total Hygiene Solutions Global hygiene solutions provider JohnsonDiversey has accumulated fifty years of experience within the food and beverage industry. They bring a wealth of know-how to organisations with continuous hygiene security, significantly reducing waste and the risk of product recall.

Furthermore, JohnsonDiversey can help customers to save money and increase efficiency by optimising their hygiene regimes while minimizing environmental impact and improving safety.

“JohnsonDiversey is passionate about helping customers run their facilities with the right outcomes in mind such as protecting the environment, safeguarding employees, reducing labour costs, training staff and maintaining compliance with regulations.

In short, helping our customers maintain safe, healthy, high-performing facilities”

Cleaning In Place (CIP) The protection of product quality for food and beverage manufacturers is critical.

JohnsonDiversey’s CIP cleaning and disinfection agents, application expertise and control systems, ensure the highest standards of hygiene are obtained for all production equipment, safeguarding even the most sensitive of foods and beverages.

As the world leaders in CIP product technology and know-how, JohnsonDiversey optimise and monitor cleaning programmes, providing proof-of-clean on an on-going basis. This ensures that consistent results are obtained and problem-free proFOOD & DRINK BUSINESS EUROPE, APRIL 2009

duction can be maintained, so ensuring plant efficiency. CIP programmes minimise cleaning frequency and times, lowering water, energy and other utility usage. This not only reduces costs but increases production flexibility and capacity. These innovative CIP technologies meet all company, environmental and legislative requirements and are designed to ensure both operator safety and product integrity.

CIP Cost Analysis & Optimisation JohnsonDiversey’s purpose built CIP Cost Analysis tool calculates the true cost of CIP. By entering basic details such as frequency and temperature of CIP, cost of water, effluent and energy, a full breakdown of costs generated by CIP is created.

JohnsonDiversey’s CIP Optimisation team has been saving customers money for over six years. The CIP Optimisation team investigates the chemicals used, temperature, hygienic design, energy and many other parameters to draw full optimisation recommendations. This 2-step approach to optimisation ensures both consistent quality and cost effective cleaning.

29

april 09 issue

30/07/2010

12:25

Page 32

QUALITY

On average, the CIP Optimisation team identifies CIP cost savings of 21% per site.

Open Plant Cleaning (OPC) According to JohnsonDiversey, its OPC range of products is the most complete and harmonised in the industry, offering the best products for all critical applications.

The innovative range meets all legal requirements and is available quickly and consistently throughout the world.

Their unique combination of products, services, technical support, training and systems make OPC quick, effortless and cost effective. Products and solutions are available to clean even the most difficult areas.

Every surface, piece of material, item of equipment and corner of the plant is left scrupulously clean and open to inspection.

In addition, the support and service levels offered ensure hygiene audits are passed.

Technical support, systems, training and innovative products are designed to be cost effective, not only through low cost in use, but also by ensuring that lost production time due to non-compliance with audits is minimized.

Services Offered In addition to their wide product portfolio, JohnsonDiversey also offer an extensive range of services. These include: • Integrated Pollution Prevention and Control (IPPC) – recognising the enormous impact the cleaning and hygiene industry has on the environment and human health, JohnsonDiversey’s IPPC Support helps customers to measure, monitor and improve their sites for IPPC. • Environmental Risk Constituent Analysis - Using a bespoke calculation tool, account managers will calculate the potential impact JohnsonDiversey products have on key pollutants within your effluent. By comparing the amount of each of these elements against site targets, they can recommend the best combination of products to achieve the hygiene you require, whilst ensuring emissions in your factory effluent remain below reporting thresholds.

• Responsible Resource solutions JohnsonDiversey provides unique solu30

& HYGIENE

tions to the countless challenges faced on a daily basis by food and drink processors, an example of which is: AquaCheck – AquaCheck is Johnson Diversey’s innovative water efficiency service with integrated solutions. The service works in three phases: AquaSCAN, AquaPROBE and AquaSOLVE. AquaSCAN is a benchmarking exercise comparing water use efficiency and waste water discharge with production volumes, over time and against industry standards.

AquaPROBE is a comprehensive survey of all water use and recommendations for savings based on cost potential (for non-capital projects) and Return on Investment (for capital projects).

AquaSOLV is included as part of the commitment by JohnsonDiversey to realising savings identified with AquaPROBE and monitors achievements against agreed objectives.

• Training Courses – including ‘Hygiene Managers Course’, ‘Level 1 Award in Induction to Food Safety for Manufacturing’, and ‘Cleaning Safely with Detergents and Disinfectants’.

Food Safety & Environment JohnsonDiversey has organised the many elements of food safety, (from sophisticated risk management consulting, to essential cleaning chemicals), into a comprehensive food safety portfolio called SafeKeyTM. They also have a growing list of products certified by independent third parties such as Green Seal, Environmental Choice, GreenGuard, EU Flower and Nordic Swan, including: glass cleaners, general-purpose cleaners, restroom cleaners, industrial degreasers, carpet cleaners, floor finishes/sealers and floor finish strippers.

The company also has a list of environmentally preferred products developed and

manufactured according to its own stringent, best-in-class criteria for performance, reduced environmental impact and enhanced safety. These include: toilet bowl cleaners, odour control systems, wood/stone-care products, environmental surface disinfectants, skin care products and specialty cleaners.

JohnsonDiversey is continuously developing dispensing innovations that precisely dilute concentrated products with tap water. This makes cleaning safer, more cost-effective and more sensitive to the environment.

“We also develop innovative cleaning tools that minimize environmental impact and improve safety, such as a hygienic cleaning system with microfiber pad technology that cuts floor-care time in half. All our microfiber-based systems and tools significantly reduce particulates and the threat of cross-contamination,” David Childs adds.

JohnsonDiversey’s range of products and support services ensure that customers in the food and beverage industry have the very best cleaning solutions available to ensure they run an efficient and effective facility with increased margin performance.

For further information contact JohnsonDiversey, Weston Favell Centre Northampton NN3 8PD. Tel +44 (0)800 0130789, Web www. johnsondiversey. co.uk. J

Supplying to Medium and Small Sized Food and Beverage Businesses A dedicated UK distributor network allows JohnsonDiversey to supply globally, whilst thinking locally they have developed a network of dedicated food and beverage distributors who are positioned to supply their products along with technical support to medium and smaller independent businesses.

The advantages to SMEs of choosing a JohnsonDiversey distributor include: • Short delivery lead times; • Low minimum order value; • Professionally formulated cleaning chemicals; • A wide range of other hygiene and work wear products; • A dedicated Account Manager.

• Access to JohnsonDiversey technical service and support; Distributors have been carefully selected so they are able to provide knowledge and expertise in the hygiene processes required in food and beverage manufacturing, at a local level.

FOOD & DRINK BUSINESS EUROPE, APRIL 2009

april 09 issue

30/07/2010

12:25

Page 33

QUALITY I

& HYGIENE

MICROBIOLOGY

Pathogen Detection on Surfaces icrogen Bioproducts has released the Path-Chek M Hygiene Pathogen System for the detection of important food-borne pathogens (Listeria spp, Coliforms and Salmonella spp) from work surfaces and manufacturing equipment in food handling and manufacturing environments. The pathogen detection system consists of two units; a pre-moistened swab, which has the benefit of neutralising the

effects of cleaning solutions and improving bacteria recovery from dry surfaces; and a highly specific and sensitive detection media which gives results by providing a clear visual colour change in 18-24 hours for Coliforms and Salmonella spp and 3048 hours for Listeria spp if specific organ-

isms are present on surfaces.

The pathogen detection system meets the requirements of ISO 18395:2004(E) and is compliant with the requirements of USDA, FSIS and BAM but unlike similar methods does not require a pre-enrichment step. The use of the Path-Chek Hygiene Pathogen Swab provides a rapid, easy-to-use and cost effective method of pathogen and hygiene monitoring, which should be part of any comprehensive HACCP plan.

For further information contact Microgen Bioproducts on Tel +44 (0)1276 600081 or visit www.microgenbioproducts.com. J

The Revolution Continues! he Revolution in Microbiological T Sample Preparation - The Pulsifier® - is now included in ISO 7218:2007(E), Microbiology of food and animal feeding stuffs. The Pulsifier® employs a revolutionary technology to produce samples more suitable for rapid microbiology methods, as processed samples feature less food matrix destruction and a cleaner aqueous phase, which is shown to make filtration and pipetting easier, minimising interference with PCR or flow cytometry techniques.

ISO 7218:2007(E) states the Pulsifier® is suitable for most foodstuffs including sharp, hard or dry foods which peristaltic homogenisers (Stomacher) are not suitable for use with, due to bag breakage.

ISO 7218:2007(E) also states the Pulsifier® has the quickest run-time of 0.5-1 minute but evaluaI

tions have shown that there is no increase in bacterial recovery after 15 seconds, making the Pulsifier® the most versatile and fastest instrument for microbiological sample preparation. For further information contact Microgen Bioproducts on Tel +44 (0)1276 600081 or visit www.microgenbioproducts.com. J

MATERIALS HANDLING

Sanitary Bag Dump Station Developed

by Flexicon ulk solids handling specialists, Flexicon (Europe), has developed a B new Sanitary Bag Dump Station for pneu-

Optional rocker arms allow the hood assembly to separate from the hopper rim, allowing thorough, rapid wash down.

matic conveying systems. The station collects dust created during manual dumping of bulk materials from bags, boxes, drums and other containers and allows rapid, tool-free wash down. Optional rocker arms support the hood assembly above the hopper rim, eliminating the need for operators to lift and remove the hood durFOOD & DRINK BUSINESS EUROPE, APRIL 2009

ing cleaning and inspection.

Similarly, a stainless rotary airlock valve at the hopper discharge is equipped with integral support rails that allow the rotor assembly to separate from the valve body for sanitizing of all material contact surfaces, and close securely in seconds - also without tools. For further information contact Flexicon (Europe) on Tel +44 (0)1227 374710 or visit www.flexicon.co.uk. J 31

april 09 issue

30/07/2010

12:25

Page 34

I MEAT PROCESSING

Danish Crown Restructures to Ensure Future Competitiveness

anish Crown has announced further D restructuring measures to ensure that the group will remain a competitive business in future. More than 50 administrative jobs will be cut in both the Pork Division and group functions, on top of the 30 administrative positions which the Tulip Food Company has cut in recent months.

Capacity cuts in the Beef Division, the establishment of a combined unit under Danish Crown Nordic and moving Friland’s head office to Randers are also

some of the elements which, under the heading DC Future, will ensure a reduction in costs and a honing of competitiveness at one of Europe’s biggest pig slaughterhouses.

“In recent years, Danish Crown’s Danish departments have witnessed huge changes. We have implemented cost savings totaling DKr470 million (Eur63m) – with the decisions made in the past month alone accounting for savings to the tune of DKr210 million. We have closed down ten Danish departments and laid off 2,600 employees, and the most recent measures are only part of the work which is taking place to cut costs in the company and to be able to present a reliable and competitive budget for 2009/10,” says Kjeld Johannesen, chief exec-

English Pork Exports Reach £160 Million ritish pork exports have shown a dramatic rise over the last year, according to figures from BPEX, which is part of the Agriculture and Horticulture Development Board and is responsible for driving demand for English pork and pigmeat products in Britain and globally.

Exports of fresh and frozen pork have risen by 20% over the last year, up nearly 20,000 tonnes to 118,300. Bacon exports also showed a jump, going from 12,000 tones to more than 19,000 tonnes. Offals showed an 18% rise hitting 19,000 tonnes with nearly 40% of that going to the Netherlands and almost 30% to Hong Kong.

The value figures are even more impressive with fresh and frozen pork up 42%, worth an extra £33 million while the value of offals are up 63% worth almost £3.5 million more. In total, exports of pork, processed pork products and offals were worth £160 million to the British industry.

“Exports are vital to the industry which is why BPEX is keen to expand the number of markets into which we sell. They have a very important role in adding value to both producers and processors,” says Mick Sloyan, chief executive of BPEX. “With the value of Sterling more competitive compared with the Euro and other currencies, we hope to see further growth in exports in 2009.” J

B

32

utive of Danish Crown.

Meanwhile, Danish Crown has opened its new case ready production facility for pre-packed products at Jonkoping in Sweden. The new facility supplies meat to the Swedish retail chain Axfood and is the most modern case ready production facility in Sweden and Europe. The new 102,000 sq m unit employs 112 people and has the capacity to produce between 800,000 and 1 million packs of minced meat, chops etc per week. J

More Investment Needed for British Chicken Supply ore investment is needed to safeguard the future of British M chicken and ensure a continued supply of fresh, quality poultry meat, according to a new report commissioned by the National Farmers Union (NFA) and UK broiler growers. The report, written by Savills, shows that periods of sustained loss from 2004-2008 has led to little investment in the broiler sector, particularly for new chicken housing. Input costs have risen dramatically over the last five years, while margins have not increased to the same degree.

Figures also show a breakdown of the retail price for chicken in 2008, with producers receiving just a quarter of available margin compared to the retailer share of around 50%. Broiler producers, led by the NFU, will now use the report to highlight key issues with retailers.

“It is in everyone’s interest to see more joint working across the whole of the supply chain to achieve positive benefits for all involved. We must avoid a repeat of events in the pig and dairy sectors where many farmers are leaving the industry each year,” comments Ashley Lilley, agribusiness consultant from Savills.

“Only by working together throughout the whole supply chain, incorporating longer term equitable contracts, will we achieve the long-term confidence and much-needed investment in British chicken.” J

FOOD & DRINK BUSINESS EUROPE, APRIL 2009

april 09 issue

30/07/2010

12:25

Page 35

april 09 issue

30/07/2010

12:25

Page 36

I MEAT PROCESSING

Cranswick Continues to Bring Home the Bacon Despite the challenging trading environment British pork processor Cranswick is maintaining its impressive record of growth. he publicly listed company recently received recognition of its continuing development by being promoted to the FTSE 350 Index, comprising the 350 largest companies by market capitalisation on the London Stock Exchange. “We anticipate that inclusion within the FTSE 350 will lead to even greater interest in the company from investment funds,” says Martin Davey, chairman of Cranswick.

Established by farmers in the early 1970s to produce pig feed and later to market pigs, Cranswick has since developed into a fully fledged food manufacturing group and is also active in the pet food market. Since 1988, through a combination of acquisitions and organic growth, Cranswick has emerged as one of the UK’s leading processors of fresh pork, bacon, sausages, cooked meats, charcuterie and sandwiches.

T

Development Strategy Cranswick’s development strategy has been to establish a presence in a number of related and growing areas of the food market stemming from its origins in pig feed and pig production. The purchase of a small pork butchery business in 1988 was followed by a series of acquisitions. During the 1990s, Lazenby's, the premium sausage manufacturer, and Pethick & Co, a high quality ham manufacturer, were acquired.

Subsequent acquisitions included Continental Fine Foods in 2001, North Wales Foods in 2002, The Sandwich Factory the following year and Delico in 2006. The purchase of Perkins Chilled Foods in 2005 made Cranswick one of the UK’s largest suppliers of sliced cooked meats and convenience foods, and increased its focus on the stronger growing areas of the market.

Cranswick’s food business, which accounts for over 90% of group turnover of more than £600 million, now operates from ten modern food production facili34

ties. “Substantial investment over recent years has given Cranswick some of the most modern and efficient facilities in the industry,” says chief executive Bernard Hoggarth.

Because it produces its own animal feed and contracts outdoor reared and organic pigs in partnership with local farmers, Cranswick is able to control a large proportion of the raw material used for the production of fresh pork, hams

The East Yorkshire-based company is benefiting from the growing appetite of UK consumers for locally produced pork and bacon, helped by a campaign by celebrity chef Jamie Oliver to promote British pig farmers. Pigmeat is also significantly cheaper than rival proteins such as beef and lamb – a key advantage as consumers become increasingly price sensitive. In its fourth quarter, Cranswick’s pork and bacon sales rose by 23% and 15% respectively.

With strong market positions,

Broad Product Range Cranswick’s food business has been successful in expanding the range of products supplied to its customer base across the premium, standard plus, standard and ‘value’ categories of the marketplace. For instance, it has grown its premium bacon sales following the opening of its new bacon factory which can produce ‘air-dried’ product.

new bank facilities and well invested plants, Cranswick is well placed to continue its successful development. and sausage, so providing customers with complete confidence and traceability.

Indeed, Cranswick has a strong track record of successful partnerships with major players in the retail sector through each of its manufacturing sites.

Cranswick has been listed on the London Stock Exchange since 1993.

Solid Performance Cranswick finished its financial year (ending 31st March last) strongly with total sales in its final quarter 11% higher than the corresponding period in the previous year. Full year results are likely to be ahead of market expectations.

Total sales for the year rose by 10% on a like-for-like basis, excluding the animal feed business that was disposed of during the previous year. Food sales were 9% higher and pet sales advanced 17% - a solid performance given the difficult trading environment of rising input prices, significant currency fluctuations and weakening economic activity.

FOOD & DRINK BUSINESS EUROPE, APRIL 2009

Continued Expansion Cranswick is continuing to grow both organically and by acquisition. The company spent about £10 million in its final quarter acquiring the freehold of the Delico factory and a facility adjacent to its Lazenby’s factory for future sausage production expansion.

Cranswick has also just announced that it is acquiring the fresh pork processing business of Bowes of Norfolk.

The £17 million deal makes Cranswick the UK’s biggest British-owned pigmeat processor and helps to close the gap on its larger foreign-owned rivals – Tulip (part of Danish Crown) and Vion of the Netherlands.

With strong market positions, new bank facilities and well invested plants, Cranswick is well placed to continue its successful development. Its preliminary results for the year ended 31st March 2009 will be announced on 18th May 2009. J

april 09 issue

30/07/2010

12:25

Page 37

I MEAT PROCESSING

10 Year Milestone Brings Further Investment From Interfood une 2009 sees Interfood Technology celebrate ten J years of supplying equipment and ingredients to the UK and Ireland food processing industries. The company has come a long way since those relatively humble beginnings, now operating four divisions under the Interfood ‘umbrella’ from a head office in Thame, Oxfordshire and a satellite operation dedicated specifically to the Irish market from Carrickon-Suir in County Tipperary.

Since its formation, Interfood has represented major manufacturers in food processing equipment, including German-based clipping technology experts Poly-clip and slicing specialists Weber. The company has grown year on year, adding to the list of manufacturers for whom they are the sole distributors in the UK and Ireland, carefully selecting equipment to enable the company to extend its capabilities into new areas in line with a philosophy which is

very much based on ‘total processing’. Some 90% of Interfood’s business is in the meat and poultry industry and they number many of the major processors amongst their customers The company is run by joint managing directors Jim Sydenham and Mark Bishop.

2008 saw the introduction of the four divisions within the business which Mark Bishop sees as a natural progression:

“Our attitude has always been to focus on the total processing line, from functional ingredients right through to post packet pasteurisation, with just about everything in between.

Last year we had grown to a size where it was the right time to re-evaluate how we operate and we restructured the business into the four divisions (Slicing, Product Development, Cooking & Cooling, and Systems) each with its own dedicated product managers and engineering team.” The aim is to provide a specifically focused team within each given field.

Current Climate

Both Mark Bishop and Jim Sydenham recognise that the market conditions faced in the UK and Ireland, like many markets throughout the world, are difficult at present. Mark Bishop comments: “It is certainly true that you can’t turn on a TV or radio or pick up a newspaper without being assailed with the words ‘credit crunch’. While it is important to recognise the tough market conditions that we and our customers face and to make adjustments to our business plans accordingly, that doesn’t mean that we don’t continue to invest. Having the right people on board, with fully trained, experienced engineers that can add real value to our customers’ businesses, has been a prime reason for our growth to date.

And in a year in which we celebrate ten years in business, we are continuing with that philosophy. We have just recruited another two engineers, bringing the current total to sixteen. It is

not just about offering the best in food processing machinery and ingredients but also ensuring that the technical support that goes with it is in place.”

Interfood also employs eight product managers and three food technologists, the latter often working closely with customers in developing new product lines and improving existing ones.

Cost Pressures

The cost pressures faced in the UK market and beyond are recognised by Jim Sydenham: “We are very well aware that the current economic climate, particularly the weakness of Sterling against the Euro and the Dollar, has raised the costs of the equipment coming into the UK. We have noticed that the time it takes for projects to mature, from the initial enquiry through to the actual order being placed has lengthened as customers focus more than ever on ensuring that their investment is the right one. Many of our customers supply product to the major supermarket chains, who have their own cost pressures which get passed on down the line.

FOOD & DRINK BUSINESS EUROPE, APRIL 2009

That means we have to make sure that we negotiate very hard with our machinery manufacturers to ensure our customers get the best deal possible.”

Jim Sydenham continues: “We have always focused on ensuring that we run a streamlined operation but the market conditions we now face means that this focus has become more important than ever. The business is run as economically as possible but, as Mark has already said, that is not to say that we don't continue to invest - it is all about controlling costs and investing in the areas of the business that will allow us to continue to meet our commitment to service that we feel is so fundamental. It is also about looking at ways of adding value to what we do as a business, putting together bespoke packages which not only include the costs of the equipment, but also transportation, spare parts and servicing to ensure we can get a package which provides a cost effective solution which is the best possible fit for a customer's given requirements.”

For further information visit www.interfoodtechnology.com. J 35

april 09 issue

30/07/2010

12:25

Tetra Pak CPS Going From Strength to Strength

After a hugely successful 2008 Tetra Pak CPS, a leading UK provider of quality capital equipment and turnkey systems, has just celebrated its tenth anniversary at its site in Sherborne and is confident of meeting the challenges ahead.

Since moving to the purpose built factory back in 1998 the company has gone from strength to strength. Despite the testing economic climate, Tetra Pak CPS has already secured an exciting £6.6m project for 2009 in partnership with its US sister company.

This follows hot on the heels of a £2.8m plant relocation project, which stems from a longterm partnership with a major European chilled food producer, having previously carried out a £2m process improvement project for the same company. For further information contact Tetra Pak CPS on Tel +44 (0)1935 818800 or visit www.tetrapakcps.co.uk. J

Page 38

within the overall impact of the manufacturing processes on the environment as are reduced water consumption and energy costs; and when combined with other PROFI system advantages, such as beer quality and system flexibility it is clear why leading breweries such as the Borsec brewery in Romania have chosen this technology.

Compared to other kieselguhr-free filtration systems, the PROFI system’s separation of more than 99% of solids in the separator results in shorter filtration times and very low losses, according to Westfalia Separator. For further information contact Westfalia Separator on Tel +44 (0)1908 576512 or visit www.gea-westfalia.co.uk. J

Quality conscious breweries looking to meet the demands of eco-friendly beer filtration are increasingly turning to kieselguhr-free GEA Westfalia Separator PROFI systems for continuous clarification and filtration of beer. The environmentally friendly combined separator/membrane system meets the principles of ecologically aware companies whilst offering completely automatic and consistent filtration as a result of optimum pre-clarification using a unique centrifugal polisher. No kieselguhr material costs and reduced disposal costs are immediately apparent 36

3,500 tonnes of product. For further information contact Star Refrigeration on Tel +44 (0)141 638 7916 or visit www.star-ref.co.uk. J I CLEAN LABEL INGREDIENTS Food Industry Warms to Ulrick & Short’s Tapioca Innovation

I REFRIGERATION Star Lands Leading Role at Seafood Facility

Grundfos NOVAlobe Helps Improve Production Processes

GEA Westfalia Separator PROFI System Scores Over Other Kieselguhr-free Systems

pumps, McVitie’s now has 7 NOVAlobe pumps operating in its Glasgow and Carlisle plants and has exclusively purchased the Grundfos NOVAlobe for viscous applications. For further information contact Grundfos on Tel +44 (0)1525 775407. J

Star Refrigeration has completed a major warehouse conversion project in London for frozen seafood supplier Chan Brothers. In a contract valued at £2.7m, cooling solutions specialist Star assumed the role of principal contractor. Star not only supplied a cold store refrigeration plant, but was also responsible for managing the complete fit out of the building. The converted building features three large cold stores, each with racking for pallets of frozen seafood.

Together the insulated cold rooms provide storage for just under 3,000 pallets, or around

Part of United Biscuits, McVitie’s production processes, typically involve abrasive liquids with high viscosities.

In an attempt to improve the reliability and reduce the impact that its operations have on the environment, McVitie’s agreed to install a Grundfos NOVAlobe (rotary lobe pump) on a trial basis at its production sites in Glasgow and Carlisle.

The NOVAlobe is resistant to highly abrasive liquids with a very high viscosity and has been designed to be user friendly, with standard repairs being able to be carried out with the pump still in the process line ensuring production Star’s refrigeration plant which provides continues with minimal efficient cooling for three cold stores at stoppages. Due to the the Chan Brothers frozen seafood facility. success of the trial FOOD & DRINK BUSINESS EUROPE, APRIL 2009

Ulrick & Short, a leading clean label ingredients specialist is reviving a renowned traditional staple food by successfully developing clean label tapioca derived ingredients, which can replace waxy maize starches and fat.

Tapioca has been around for centuries as a gluten free food and as a thickening agent but has been criticised for its relatively high processing costs.

Because of this, the food industry has favoured waxy maize starches.

Recognising the tremendous potential over nine years ago, Ulrick & Short has since launched over 30 different highly functional clean label ingredients all produced from tapioca, which are now bringing significant cost savings and nutritional benefits to food manufactures. For example, Ulrick & Short’s Delyte range has provided opportunities for the bakery and ready meal industries to easily replace butter and oils in cakes, bakery fillings and in ready meal sauces without compromising on taste, texture or quality. For further information contact Ulrick & Short on Tel +44 (0)1977 620011 or visit www. ulrickandshort.com. J

april 09 issue

30/07/2010

12:25

Page 39

I FOOD GRADE LUBRICATION

Petro-Canada Expands Food Grade Lubricant Product Line With Addition of PURITY FG Synthetic Compressor Fluid

etro-Canada has launched PURITY FG Synthetic Compressor Fluid, a new P addition to the company’s extensive line of food grade lubricants, greases and specialty fluids. PURITY FG Synthetic Compressor Fluid is a synthetic PAO-based product, scientifically formulated with selected additives and proven to protect against wear, oxidation, rust and corrosion while also providing greater wide temperature performance.

The product meets the highest food industry safety standards, is registered by NSF as an H1 lubricant, and fits perfectly in HACCP (Hazard Analysis and Critical Control Point) and GMP (Good Manufacturing Practice) plans. All components comply with FDA regulation 21 CFR 178.3570 (lubricants with incidental food contact).

number of performance benefits our customers want and need, including enhanced thermal and oxidative stability, extended fluid life and wide temperature performance.”

PURITY FG Synthetic Compressor Fluid is suitable for lubricating air screw compressors, centrifugal compressors, vacuum pumps, pneumatic, hydraulic and circulating applications, and gearboxes used in food processing operations. The product was formulated to perform in wet food processing environments throughout wide temperature ranges.

According to R&D product development specialist Larry Curts: “PURITY FG Synthetic Compressor Fluid performed extremely well throughout Petro-Canada’s comprehensive testing process, further validating the product’s performance benefits.

One of the more notable tests included RPVOT ASTM D2272 Resistance to Oxidation. PURITY FG Synthetic Compressor Fluid’s minutes to oxidation was 4,554, compared to competitive synthetic products with minutes to oxidation ranging from 1,129 to 2,364. Other performance data collected included viscosity index of 134 (test method D2270), 4-Ball Wear of 0.40 mm (test method D4172) and 4-Ball Weld of 126 kg (test method D2783).”

Performance Benefits

“A common concern relating to the use of Food Safe and Plant Tough Lubricants food grade compressor fluids is that they “Our customers rely on us to provide them don’t perform as well as with a full line of food safe non food grade lubriand plant tough lubricants cants, and, more specifithat outperform the compecally, they cannot withtition,” adds Colleen stand high temperatures Flanagan. “They and perform throughout also rely on us to tough food processing continue to innoapplications,” says vate and formulate Colleen Flanagan, Petrolubricant solutions Canada’s Specialty Fluids based on their everCategory Manager. changing needs.

“Performance should We’re proud to fornever be compromised mally announce the and we feel that our launch of PURITY PURITY FG Synthetic FG Synthetic ComCompressor Fluid is the pressor Fluid and to offer lubricant solution that them a continually growing, Colleen Flanagan, Petro-Canada’s many Maintenance robust line of food grade Specialty Fluids Category Managers have been lubricants.”

Manager. waiting for. It provides a Petro-Canada blends and FOOD & DRINK BUSINESS EUROPE, APRIL 2009

packages more than 350 different lubricants, specialty fluids and greases that are exported to more than 60 countries on six continents. Products are manufactured from 99.9% pure base oils – among the purest in the world. As the world’s largest

PURITY FG Synthetic Compressor Fluid is suitable for lubricating air screw compressors, centrifugal compressors, vacuum pumps, pneumatic, hydraulic and circulating applications, and gearboxes used in food processing operations.

The product was formulated to perform in wet food processing environments throughout wide temperature ranges. producer of white oils and the leading supplier of factory fill automatic transmission fluids, Petro-Canada is focused on going beyond today’s standards.

About Petro-Canada

With more than 30 years of experience in blending Groups II and III base oils, the company delivers a diverse line of innovative lubricants to meet an ever increasing range of international specifications. PetroCanada specializes in offering customers products and services proven to increase productivity and lower operating costs, lubrication consolidation, technical leadership and training.

For more information on products and services, call +44 (0) 2476 247294 (Europe) or visit lubricants.petrocanada.ca. J 37

april 09 issue

30/07/2010

12:25

Page 40

april 09 issue

30/07/2010

12:25

Page 41

I DAIRY

Kerrygold Sets New Green Standard One of the UK’s largest cheese suppliers, The Kerrygold Company has invested £30 million in a new state-of-the-art factory at Leek in Staffordshire, which will be officially opened next month. subsidiary of the Irish Dairy Board, Kerrygold employs more than 500 people in the new factory, which produces more than 3 million consumer packs each week of prepacked natural, sliced and grated cheese.

A

Setting New Standards The new 15,000 sq m facility incorporates industry leading hygiene standards and delivers renewable energy solutions such as a CHP plant, Photo Voltaic panels on the roof to generate energy from sunlight, sun pipes to magnify natural light and consequently reduce the need for artificial lighting, and high efficiency fluorescent lights.

The CHP plant generates 100kW of electricity from gas and also provides 225k W of waste heat for pre-heating water for cleaning the plant, while also reducing the building’s CO2 emissions by about 10%.

Other features include air dampers mounted on the roof to draw

filtered air from outside the building to cool production areas, and control systems to minimise energy usage on pumps, fans and production machinery.

Indeed, the various energy efficient lighting, ventilation, refrigeration and heating technologies incorporated into the factory’s design are expected to reduce the company’s carbon footprint by 15%.

The new factory has also emulated ‘best practice’ elements from other sectors of the fresh food industry to set new quality and hygiene standards for cheese slicing and packing. The plant incorporates high and low care areas, enhanced air filtration and sophisticated temperature control features.

FOOD & DRINK BUSINESS EUROPE APRIL 2009

39

april 09 issue

30/07/2010

12:25

Page 42

april 09 issue

30/07/2010

12:25

Page 43

Most Efficient and Environmentally Friendly According to Carl Ravenhall, managing director of Kerrygold, the new factory is the most efficient and environmentally friendly cheese packing facility throughout the UK and Europe.

“The wider dairy industry has come under fire in recent times for the impact it has on the environment, and we wanted to tackle that issue head on,” he explains. “Our new factory is one of a series of initiatives we are taking to reduce our carbon footprint and demonstrate our green credentials, all while improving production efficiency.”

The £30 million investment project entailed demolishing the old factory building on the Leek site and transferring production lines and staff to the new facility. Over twenty production lines have been moved – two at a time so as not to disrupt overall production - and a completely new line also installed.

The Leek-based Kerrygold Company was formed in the 1970s following the acquisition of local business Adams Butter by the Irish Dairy Board. Adams dates back to the 1920s when it was established as a dairy selling butter and milk. J

New Cheese Processing and Packaging Plant Design by Woods Hardwick Woods Hardwick designed the replacement cheese processing and packaging plant at Kerrygold’s existing site in Leek. With a challenging brief set by the client, the new facility had to be designed in such a way that expansion in line with business expectations up to and including the 2013 trading year would be possible.

Additional constraints included the need for the existing facility to remain in full operation whilst the new building underwent construction this was despite both parts overlapping.

As with any specialist food processing project Woods Hardwick’s principle objective was to understand firstly the functionality and logistics of the business process and how this worked within the existing Kerrygold facility, and secondly to understand the key design requirements and aspirations for the new facility.

Working closely alongside the client Woods Hardwick developed a principle flow diagram which outlined the optimum business process and operation flow from which it then developed the final building design.

Primarily an industrial unit this building is also a main headquarters and as such the architectural language needed to reflect this. By using a number of cladding systems in imaginative ways to help breakdown the building mass together with the introduction of clean lines such as curtain walling elements, expressed columns and strong horizontal elements, Woods Hardwick has created movement and rhythm along the modular elevation.

I IRISH DAIRY

New Investment, Additional Quota and Innovation to Drive Irish Dairy Industry ith a turnover of about Eur4 billion and contributing 3% of GDP, the dairy industry is central to the Republic of Ireland’s economic growth. It accounts for about a quarter of the exports of the agriculture and food industry, which is the country’s largest indigenous sector.

Although Irish dairy export sales fell last year, the long-term outlook is good and the processing industry is currently investing heavily in order to remain competitive internationally and to meet this anticipated future growth in demand.

A significant weakening of dairy prices following the peak in 2007, resulted in export sales dropping by 5% to Eur2.2 billion last year, although they were still ahead of the 2006 level. This compared to a rise of 13% in 2007 when Irish dairy exports benefited from rising world commodity prices.

W

€286 Million Investment Investment projects worth Eur286 million, including 40% Government grant aid, are currently ongoing or have been recently been completed within the dairy processing industry in the Republic of Ireland in order

to increase the proportion of added value production and to ensure continued global competitiveness in the long-term. A total of 19 capital investment projects being implemented by twelve companies have been awarded grant assistance of Eur114 million through the Government’s Dairy Investment Fund.

Ireland’s three biggest dairy groups – Kerry Group, Glanbia and Dairygold – are receiving a total of Eur52.4 million from the Dairy Investment Fund. Kerry is investing Eur40.7 million at its plants in Listowel and Charleville.

Glanbia’s two projects at its giant Ballyragget facility involve total investment of Eur46.5 million. Dairygold is investing

Glanbia’s dairy processing facility at Ballyragget.

FOOD & DRINK BUSINESS EUROPE APRIL 2009

Eur45.6 million in three projects to greatly improve the flexibility, quality and efficiency of its operations at Mitchelstown.

Carbery is receiving Eur19.4 million in aid towards a total investment of Eur48.6 million in three projects designed to enhance the company’s cheese and ingredients processing efficiency and to enhance its added value product mix.

Lakeland Dairies Co-op’s two projects have a combined value of Eur24 million and will improve the balance of production from commodity to higher value products and increase scale, efficiencies and cost competitiveness.

Seven other dairy companies are also benefiting from the Dairy Investment Fund Arrabawn Co-op, Glenisk, J&L Grubb, Newmarket Co-op, Tipperary Co-op, Town of Monaghan Co-op and Wexford Creameries. Their combined investment is Eur75 million.

Driving Success New investment, additional quota and innovation are at the heart of the Irish dairy industry and will drive it on to greater success in the future, according to Irish 41

april 09 issue

30/07/2010

12:25

Page 44

april 09 issue

30/07/2010

12:25

Page 45

Minister for Agriculture, Fisheries and Food, Brendan Smith TD. “The Irish dairy industry is well-equipped to take advantage of the long-term positive outlook for dairy markets and Irish producers have the potential to significantly increase milk production in the short-term. Long-term growth in prosperity in developing countries and in Asia, as well as increasing population trends, will create new and viable market opportunities for Irish exporters,” he explains.

Indeed, the Irish Government is investing significantly in the dairy processing industry to ensure that it has the capacity and technical capability to process the increased EU production quota recently secured as part of last November’s ‘Health

Check’ negotiations. “The decision by the Government to provide Eur114 million in the Dairy Investment Fund was a huge vote of confidence in the long-term future of the sector,” he says.

Bright Outlook Although the current volatility in international dairy markets is creating uncertainty, the overall outlook is bright. “The main international forecasting organisations predict global growth in wealth and population in the medium term. This will present new opportunities for quality producers like Ireland, and all areas of the dairy sector can expect to reap the rewards,” he remarks.

Brendan Smith expects that the recent

reinstatement of EU export refunds for butter, skimmed milk powder, whole milk powder and cheeses, and the opening of private storage aid for butter will with “supply side adjustments prove instrumental in restoring balance to the market and reverse the current market difficulties.”

Michael Cronin, chairman of the Irish Dairy Board and also chief executive of Newmarket Co-op, is also very positive about the future of the dairy industry in Ireland. “It is grass-based, is highly efficiency and has the scope for production increases with the eventual removal of milk quotas.” He adds: “I think that with a sustainable milk price, Ireland could be producing twice as much milk in 15 to 20 years.” J

I IRISH DAIRY

I EUROPEAN DAIRY

Glanbia Shows Resilience But 2009 Will be Tough

Further Cost Cuts at Arla Foods

rish dairy and ingredients group Glanbia increased operating profit before exceptionals by 15.7% to Eur134.1 million in 2008 on revenue ahead by 1.0% to Eur2.23 billion, or by 8.9% on a like-for-like basis. Total exceptional costs for 2008 amounted to Eur19.4 million relating to a rationalisation programme and Glanbia’s exit from its Irish pigmeat operation. Profit before tax was Eur100.0 million up from Eur76.1 million in 2007 when exceptional costs were Eur22.8 million.

In August 2008 the group completed the acquisition of Optimum in the US for a total consideration of Eur217.9 million, funded from existing bank facilities. During the year Glanbia continued its strategic capital expenditure programme with Eur63.4 million expenditure focused mainly on its food ingredients and nutritionals businesses.

In the two year period since 2007 Glanbia has invested a total of Eur351.0 million on acquisitions and development capital expenditure.

“Glanbia performed well in 2008, delivering a good set of results, completing a major strategic acquisition and achieving key financial targets. All businesses, includ- John Moloney, group managing ing joint ventures, performed to or better director of Glanbia. than anticipated, with the exception of Food Ingredients Ireland which suffered a sharp decline in profits and margins in 2008,” says John Moloney, group managing director of Glanbia. “2009 will be a tough year. Global dairy markets have weakened considerably from previous high levels with the outlook for 2009 deteriorating further in the last two months. Food Ingredients Ireland will be the most challenged in this context and we expect this business to breakeven this year. Food Ingredients USA is expected to deliver a resilient performance, albeit down when compared with a strong result in 2008. Reducing farm incomes will have implications for farm input sales and as a result for revenue and profits in Agribusiness.

Consumer Foods, Nutritionals and Joint Ventures & Associates are expected to deliver robust performances.” J

he deteriorating global economic crisis combined with an already tough worldwide market for dairy products has forced Scandinavian dairy giant Arla Foods to make further savings of DKr1 billion (Eur130 million) in 2009, including 250 redundancies. “Three months into the year, Arla’s budget is under additional pressure because of unfavourable exchange rates for sterling and the Swedish kroner. And the market is showing no signs of recovery. We, therefore, need to implement a savings programme which means we’ll also have to resort to redundancies,” says Peder Tuborgh, chief executive of Arla Foods.

As Arla’s production is running at full capacity to handle the current volumes of raw milk, the redundancies will occur at the offices in Viby, Stockholm, Leeds and elsewhere.

“As a co-operative company, our aim is to maintain a good milk price for our owners, which has proved to be extremely difficult since the autumn of 2008,” he explains. “On March 1, we reduced our milk price by more than DKr1 billion, which has put our owners in a difficult situation and there is now a risk that we’ll lose future milk suppliers. We’re now taking serious action.

Our overriding aim is to re-establish our earnings and remain competitive. We must act decisively to ensure that, in financial terms, we remain on track.”

Peder Tuborgh emphasises that the savings programme will not change the course mapped out for Strategy 2013 where innovation, structural changes and acquisitions as well as efficiency measures are the main components. J

I

T

FOOD & DRINK BUSINESS EUROPE APRIL 2009

43

april 09 issue

30/07/2010

12:25

Page 46

N N E E W W S S I DAIRY

Arla Foods Makes Netherlands a Core Market Arla Foods is acquiring the Friesland Foods Fresh Nijkerk business in the Netherlands for an undisclosed price from the recently created Royal FrieslandCampina. Producing fresh dairy products under the Friesche Vlag brand and other own brands for supermarkets, the Nijkerk Dairy site employs over 500 people and generated sales of Eur215m in 2007.

The sale of the Friesland Foods Fresh operation in Nijkerk is due to the European Commission’s decision that after the merger between Friesland Foods and Campina the new combination would hold a dominant position in the markets for fresh dairy and naturally matured cheese in the Netherlands, in long-life flavoured dairy drinks in the Netherlands and Belgium and in the raw milk market in the Netherlands.

“This is a very important step for Arla Foods, which makes the Netherlands a new core market for our company,” comments Peder Tuborgh, chief executive of Arla Foods. “We believe we have a lot to offer the Dutch consumers, and we appreciate the agreement we have reached with Royal FrieslandCampina, which enables us to enter a dairy market with such proud traditions. It is in perfect alignment with our strategy to become the preferred dairy for consumers in Northern Europe.”

peenne, a subsidiary of French dairy group Bongrain, is to close its Derval plant at LoireAtlantique in October. The plant produces 80m litres of milk annually and employs 83 people. Production of fresh cream will be transferred to Compagnie Laitiere Europeenne’s site at Conde-sur-Vire, and the UHT part of the business has been purchased by local dairy company Coralis.

Profits Sink at Bel Group Difficulties passing on the sharp rise in raw material prices in the first half of the year, combined with high foreign exchange volatility and tumbling prices for industrial products, have impacted on profitability at Bel Group, the French branded cheese specialist. Net profit for 2008 fell 48.4% to Eur49.2m on revenue up by12.8% toEur2.22b and operating income was down 26.7% to Eur94.5m.

Sales of cheese products advanced 6.7% on a comparable basis due to upward adjustments in selling prices to offset raw material price hikes, as well as from buoyant sales volumes, which grew overall in world markets despite softness in some European countries, particularly France. Conversely, sales of non-cheese products were up 1.0% like-for-like, as the noncheese business suffered from a very depressed market, where supply exceeded demand and prices reached historical lows.

Sales generated outside France represented nearly 75% of group revenue but foreign exchange fluctuations resulted in a Eur34m reduction.

Arla Foods Enters Whey Partnership in the US

Peder Tuborgh, chief executive of Arla Foods.

Bongrain to Close French Plant Compagnie Laitiere Euro44

Arla Foods is forming a partnership with Green Meadows Foods in the US. Arla will provide product/process technology and will sell and market products made from the high quality milk/whey raw materials from Green Meadows’ new cheese manufacturing facility in Iowa.

B B R R II E E F F “Applying our global whey concepts to the American market and establishing a local partnership will provide significant new opportunities for us. It is, in many ways, a natural step for Arla Foods, and it is a step we have been working hard for several years to make. The American market is approximately 50% of the global whey protein market and we are now entering with a strong partner,” says Henrik Andersen, senior vice president of Arla Foods.

Arla will acquire 100% of the whey processing assets in Green Meadows Foods, and will operate this facility as an integral part of its global supply of highly specialised whey products. It is expected that definitive agreements can be signed during the 2nd quarter 2009.

Profits Down at Royal FrieslandCampina Created by the recent merger between Friesland Foods and Campina, Royal FrieslandCampina increased revenue by 5% to Eur9.5b, reflecting price increases and the effect of the acquisition of Satro, but profit fell by Eur121m to Eur135m for 2008. The main cause of the decline in profit was the substantial pressure on the margins of commodities such as cheese, butter and milk powder.

However, value-added products performed better. The Dutch dairy co-op paid its member dairy farmers a price of Eur36.37 per 100 kilograms of farm milk (exclusive of VAT) for 2008.

“The diversity in our geographical markets, our broad range of value-added products and our brands prove their added value, enabling us to pay our member dairy farmers a good milk price in the difficult year 2008. The global economic recession is bound to affect price developments in the market, our results and, hence, the milk price for member dairy farmers in 2009,” says Cees ’t Hart, chief executive of Royal FrieslandCampina.

“Accordingly, cost savings, capital expenditure restrictions and production efficiency should be key this year. The current economic situation also

FOOD & DRINK BUSINESS EUROPE, APRIL 2009

offers opportunities, specifically because we just merged. Our pooled innovative power and our staff’s milk expertise should enable us to properly meet customers’ and consumers’ requirements, both in the area of consumer products and that of dairy ingredients.” Royal FrieslandCampina has made no forecast for its 2009 result.

Cees ‘t Hart, chief executive of Royal FrieslandCampina.

Glanbia Joint Ventue Plans $90m Expansion Glanbia, the international cheese and nutritional ingredients group, and its US joint venture partner, the Greater Southwest Agency, are to invest a further $90m to expand the capacity by a third of its New Mexico, cheese and whey business, Southwest Cheese.

Commissioning of the expansion is expected in 2010 and will see capacity at the site boosted to over 1.75b litres of milk, 181,000 tonnes of cheese and 12,000 tonnes of high value added whey proteins. The Southwest Cheese plant was originally commission in 2006.

Milk Link Enters Chinese Dairy Market UK farmers dairy co-operative Milk Link has secured a contract with Yili, the leading Chinese dairy company, to supply Stilton and Cheddar to the Chinese market. As part of the deal, Milk Link’s award winning Stilton and Cheddar will be available in major supermarket chains and leading hotels located in major cities across China. Milk Link’s cheese products will be sold in China under Yili’s ‘Pureday’ brand and will include the Milk Link logo on all packaging.

april 09 issue

30/07/2010

12:25

Page 47

I PACKAGING DESIGN

Space is the New Frontier for Packaging

By Andrew Barnetson, CPI Corrugated Sector Manager o discussion of the environmental performance of packaging would be comN plete without a rigorous examination of how it uses space. Across the corrugated industry designers are finding new ways to maximise the use of space in storage, in lorries and on shelf. The potential gains are enormous.

In some ways discussing space is a rather abstract concept. It means asking ‘what isn’t there?’ Much current discussion of environmental performance is focused on the sustainability of the packaging materials, and not on how the packaging is deployed. We would like to broaden the discussion to describe how corrugated packaging can make the most efficient use of space, thereby generating significant economic and environmental benefits.

For example, corrugated trays make much better use of space on pallets than plastic trays. A recent study showed that standard large corrugated produce trays

No waste of space.

(600 x 400mm) outperform plastic trays in terms of space efficiency - 91-98% utilisation vs plastics at 66-81%.

What’s more, because the height of corrugated trays can be calibrated to specific products, it is possible to carry far more on a pallet. More products per pallet lead to greater efficiencies, lower costs and fewer

Making full use of shelf space.

trucks on the roads.

Andrew Barnetson, CPI Corrugated Sector Look at this specific example for sugar Manager. snap peas. The Table shows that, for exactly the same number of items per tray, corrugated is 33% more space efficient, mak- availability or stock range. ing 141 truck journeys unnecessary Corrugated currently represents just over (Source: Ceres Logistics 2007 data).

30% of all packaging. One major reason for This principle of increasing space effi- this is its total flexibility both in design and ciency applies in general terms to corrugat- manufacture. As awareness grows of the ed packaging, not just for trays. Boxes need need to explore the better use of space, to be designed to fill lorries from floor to more and more companies will take this roof. If every single lorry on the road were into account in their assessment of supply filled to complete capacity, the savings in chain efficiency and environmental perforfuel costs and CO2 emissions would be mance. huge. Corrugated can adapt itself to prodCPI is the voice of the paper industry in the uct after product. No other packaging UK, representing papermakers, tissue manumaterial has such flexibility. facturers, corrugated packaging producers and The battle for space is even more fierce recovered paper merchants. CPI represents on the shelf. Just imagine if you could use 265 member sites across 60 companies, with a all three dimensions fully. With corrugated combined annual turnover of £4 billion and you can. More and more retail ready 24,500 personnel. For more information condesigns are aiming to exploit to the maxi- tact Andrew Barnetson, Corrugated Sector mum the height, depth and breadth of the Manager, on Tel +44 (0)7775 771662 or display space. email abarnetson@paper.org.uk. J Using today’s sopPlastic Crates Corrugated Trays histicated design tech8 8 nologies the size of the Number of items per crate/tray corrugated display 1,310,400 1,310,400 pack can be related to Number of crates/trays used the shelf fixture 10920 7280 dimensions and linked Number of pallet loads to the rate of sale. By 420 279 optimising space, Number of vehicle loads retailers can increase FOOD & DRINK BUSINESS EUROPE, APRIL 2009

45

april 09 issue

30/07/2010

12:25

Page 48

I ASEPTIC FILLING

Experimental Laboratory Completes Range of Services he optimally combined range of services T of a machine manufacturer should not only include the complete project planning of plants and a broad after-sales-service, including a 24-hour-serviceline, but also a well equipped experimental laboratory for the testing and simulation of different technical procedures. This special service is most important in the area of aseptic filling of beverages and dairy products, as demonstrated by Finnah Engineering Packaging GmbH (FEP).

The owner-managed company from Ahaus, Germany, has many years of experience in building aseptic cup and bottle filling and sealing machines as well as form, fill, seal machines. All FEP packaging machines are of linear design, which is an important space-saving alternative compared to the common rotary filling machines, and are designed for a mechanical capacity of 40 cycles/min. Additionally, the medium-sized company with approximately 130 employees is engaged in the used machinery business offering modifications of its own machines as well as those of other current manufacturers.

Herbert Wegner, R&D manager at FEP, observes special trials for bottle infeed and capping.

A joint attribute of the FEP machines is the patented aseptic system using a hydrogen peroxide (H202) aerosol for the inline sterilisation of cups/bottles as well as of heat seal lids and/or the screw caps before application. A complete sterilisation during the whole inline process is guaranteed by means of a hermetically closed sterile tun46

View inside the R&D centre.

nel, resulting in a proven killing rate of 10 log 5.

The use of H202 is, in several aspects, particularly advantageous for the bottle filling lines. Contrary to peracetic acid, which is used in the majority of other rotary filling machines, the amount required is considerably less. This results not only in cost savings but is also environment-friendly.

Extensive Investments Taking into account the wide production program, the harmonization of special client requests giving priority to the technical feasibility is of utmost importance. FEP has therefore installed an R&D centre for trials and test runs under realistic production conditions at the parent plant in Ahaus. The regularly expanded and updated equipment is exemplary due to considerable investments – such as an incubator to breed germs. Furthermore there is a clean room cabin, diverse sealing and screw closure devices as well as a universal dosing unit. An essential part is also an H202 aerosol sterilisation unit which, incidentally, can be retrofitted into FEP-machines or machines from other renowned manufacturers. In order to simulate a complete FFS procedure a modular structured thermoforming line is available.

Thorough Examination of Sterilisation Results Many internal and external tasks are assigned to the competent staff. At the moment the engineers are working on the increase of the sterilisation rate to 10 log 6.

FOOD & DRINK BUSINESS EUROPE, APRIL 2009

Consequently the sterilisation unit is being improved step by step. By means of this unit the sterilisation procedure in cup and bottle fillers is simulated and necessary parameters for particular cup or bottle shapes can be investigated for a given sterilisation rate to be achieved.

Smart Dosing Patterns Particularly for clients from the dairy sector the realisation of new and innovative dosing patterns is also important. Mainly in this industry branded companies continually want more attractive and even more complicated ideas to be realised in order to achieve a promotional unique selling point and this, not least, through a smart design.

The available mobile universal FEP filling unit can also be sent to the client's premises for test runs. Skilled FEP employees carry out transport as well as professional attendance.

For further information visit www.feponline.de. J

Finnah Engineering Packaging’s well-equipped pilot plant offers various testing possibilities for the patented aseptic system and a maximum number of different dosing patterns to FEP customers.

april 09 issue

30/07/2010

12:25

Page 49

I BEVERAGES

High Speed With Lightweight Bottles iagara Bottling, the USA’s largest privateN ly owned water bottler, is growing with Krones lines. Obviously, it is not the water

developed in close cooperation with Krones’ an unscrambler silo, so that the two lines can Bottle Design Plastics Division. The compa- be run at their maximum hourly output of ny wanted to go well below the previous 144,000 containers. Two intelligent air-concascading down the Niagara Falls that finds weight of 12.5 grams while maintaining a veyor servo distribution gates are installed its way into the bottles of the Niagara top load of no less than 350 N and excellent one behind the other serve for line control. pallet utilisation. The The labeller/filler BLOC, comprising a client also wanted grip Contiroll HS and a Sensometic VOG-PET, stability to be at least prelabels the empty containers before they as good as with the are filled. This is directly followed by two existing (heavier) bot- Variopac TFS packers for creating the packs. tle.

Within eight short Two Ultra-modern Hotfill Lines weeks, all of the joint The next two turnkey, 48,000 cph, lines development work for from Krones went into operation early in a lightweight PET 2009, designed as hotfill lines, at the Ontario container had been II plant. Here, the hotfill bottles are supplied successfully concluded, already blow-moulded, and depalletised by a making Niagara Modulpal, with air conveyors in enclosed Bottling the first bot- Variojet rinser/Volumetic filler/closer tler in the world to BLOCs transporting them to the hotfill locaoffer its customers a tion after which they are cooled down to 0.5-litre bottle weigh- ambient temperature in a tunnel cooling unit Three Contiform S24 blow-moulders (each rated at 43,200 containers an ing a mere 9.9 grams. and dressed by two Contiroll HS high-perhour) supply two labeller/filler BLOCs, each in their turn producing Andy Peykoff elabo- formance wrap-around labellers, loaded on between 64,800 and 72,000 bottles per hour. rates: “For four billion trays with shrink film by a Variopac Pro, and fills, 2.6 grams of palletised by a Modulpal and a Robobox.

Bottling Co. But the choice of name symbol- weight less per bottle produce around 10,000 One VarioFlash pasteuriser per line flash-pasises the power and purity of the American tons of PET saved in a year which signifi- teurises the products, with a Contiflow epitome for water. cantly reduces the carbon footprint of our mixer. A VarioClean CIP system is available For Andrew Peykoff Sr, it was also instru- products while also allowing us to provide for cleaning purposes. mental in making the American dream of lower prices to our customers.”

“All in all, this means we installed seven “milkman to millionaire” come true for himKrones lines in 2008”, sums up Andy Peykoff self and his family. Today, his son Andy Five High-speed PET Lines Almost II. “From board level right through to their Peykoff II is at the helm of the company, Simultaneously last fitter, Krones invariably does a top-class which is selling around five billion Niagara, in the summer of 2007, placed orders and highly professional job. The twin-line (5,000,000,000) fills a year. with Krones for five high-speed PET lines, concept has now been implemented in every Niagara Bottling, operating what is its each with a maximum output of 72,000 con- plant. The Eco-Air™ lightweight bottle, tenth complete line from Krones, has repeat- tainers an hour. For the plant in Allentown, which we designed in close collaboration with edly implemented a twin-line concept for Pennsylvania, Niagara ordered two high-speed Krones, was launched on the market in April achieving the highest of outputs, and has for lines in a twin layout, each rated at 72,000 2008 and has been very well received by our years now been leading the market when it bph; for the newly built facility in Groveland, customers.” J comes to container lightweighting, most Florida, a 43,200-bph PET recently by introducing a 9.9-gram 0.5-litre line, and one month later Eco-Air™ Bottle. this was followed by an With seven facilities, Niagara Bottling has order for the new factory in an installed capacity of 8 billion fills a year. Dallas, Texas, with two “You see, we want to offer the same quality 72,000-bph PET lines in a as the big national brands but at a more twin layout. favourable price. The main factors pushing In Allentown and up costs are a) freight charges and b) the Dallas, Niagara again prices for PET,” explains Andy Peykoff II. implemented the twin-line “For cutting packaging costs, we’ve come up concept, in which three with our patented lightweight bottle and clo- Contiform S24 blowsure designs which both cost less to produce moulders supply two and are more environmentally friendly.” labeller/filler BLOCs, each producing between 64,800 At the Leading Edge of and 72,000 bph. In addiLightweighting tion, another 43,200 cph The twin-line concept has now been implemented in every plant.

The 9.9-gram 0.5-litre Eco-Air™ Bottle was are fed into the line from FOOD & DRINK BUSINESS EUROPE, APRIL 2009

47

april 09 issue

30/07/2010

12:25

The New Sharpak SPS 85 Punnet Sharp Interpack has made another industry breakthrough.

19 in a crate heat sealed or 18 lidded, the SPS 85 soft fruit punnet offers not only logistical benefits in terms of optimal crate fit but is produced to the highest environmental standards. The packaging supplies an exponential demand for rPET in fresh produce with up to 80% recycled content (PCW). The new SPS comes with a heat seal option or with a flat lid either plain or prelabelled. The manufacturer is the preferred choice for the UK’s leading supermarkets.

Apart from being manufactured in the UK and supporting British jobs additional benefits include a robust base for the most challenging pack-house conditions and a fully denestable lid for higher pack speeds. For further information visit www.sharpinterpack.com or email sales@sharpinterpack.com. J

Page 50

Basic Bulk Bag Filler Unveiled by Flexicon A new Basic Bulk Bag Filler introduced by Flexicon performs low capacity filling operations at minimal cost and can be upgraded with performance enhancements including a material delivery system integrated with the user’s process equipment or bulk storage vessels. The new ‘Model BFB’ filler is a lighter-duty version of the company’s heavy-gauge Twin-Centerpost filler, a patented design with two centre posts offering the structural integrity of four-post fillers but at significantly lower material and fabrication costs and with less weight. It also affords easier

access to the bag spout and loops. For further information contact Flexicon (Europe) on Tel +44 (0)1227 374710 or visit www.flexicon.co.uk. J UCP & Zeller Plastik UK Achieves BRC Global Standard UCP & Zeller Plastik UK of Norwich has attained accreditation to the new BRC Global Standard for Packaging & Packaging Materials, Issue 3 for Food and Beverage products at its first attempt, putting the company in the top ten category of BSI customers who have attained accreditation to the higher standard. Since attaining the Integrated Management Standard in 2006, UCP & Zeller Plastik UK has continued to strive for improvement to its management systems to exceed customer expectations.

For further information contact UCP & Zeller Plastik UK on Tel +44 (0)1603 894800 or visit www.ucpzeller.com. J

Flexicon’s lowest cost bulk bag filler is a lighter duty version of the company’s patented TwinCenterpost design.

Atlet Support Proves Fruitful for Langdons hilled distribution specialist Langdons was so pleased C with the service and support received from Atlet, that the company was chosen to deliver a 'complete package' for operations at Gerber Juice Company in Somerset.

Atlet has supplied a fleet of warehouse trucks to a very precise specification and designed and built the battery management and handling systems at Gerber Juice Company’s Bridgwater distribution centre run by Langdons. “We looked at other suppliers but the support we have received from Atlet over years swayed our decision,” says Chris Murt, operations director at Langdons.

“Backup from Atlet has been excellent. When the chips are down they’ve always sorted us out.” Langdons provides chilled distribution services for a number of national account customers from its base in the South West. For further information contact Atlet on Tel +44 (0)1844 215501 or visit www.atlet.co.uk. J 48

FOOD & DRINK BUSINESS EUROPE, APRIL 2009

Thinking Inside the Box Measom Freer has added a completely new range of boxes to its stock packaging ranges.

The Durabox is manufactured in natural HDPE with colours to order. They are available from stock in four sizes with internal lengths ranging from 26.5 to 83mm and all come with push on lids. The lids have a 50/50 split so that the box can be used for both the packaging and display of products.

The Durabox has been introduced as a strong durable packaging solution suitable for the packaging, transport and storage of fragile and quality items.

Measom Freer also manufactures and stocks a wide range of rigid high quality boxes, in rectangular and round shapes, available from stock in clear polystyrene with push on lids.

For further information contact Measom Freer on Tel +44 (0)116 2881588 or visit www.measomfreer.co.uk. J

april 09 issue

30/07/2010

12:25

Page 51

april 09 issue

30/07/2010

12:25

Page 52