Food and Drink Business Europe

August/September 2010

Engineering Europe’s largest non-whey milk dryer

Food & Drink Business Website:

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C o n t e n t s

- 45 UK B EVERAGES

- 3 N EWS B RIEF

New €20m. soft drinks factory open for business.

Business news from the UK and international markets.

- 47 N EWS B RIEF – S OFT D RINKS

- 7 B REWING & D ISTILLING Developments in the global alcoholic drinks sector.

PAGE 3

Robert Schofield, ce, Premier Foods.

P AGE 23

Cees ’t Hart, ce, Royal FrieslandCampina.

Developments in the international soft drinks industry.

R EGULARS Materials & Ingredients . . . . . . . . . . . . . 25

- 10 M ERGERS & A CQUISITIONS

Information Technology. . . . . . 26, 27 & 39

Coverage of British and international deals.

PAGE 30 Control & Automation . . . . . . . . . . . . . . 29

- 13 C OVER S TORY

Carsten Jakobsen, vce, Danish Crown.

Bottling & Packaging. . . . . . . . . . . . . . . 32

Lakeland Dairies completes €20m investment in new milk powder facilities.

PAGE 9

Carlos Brito, ce, Anheuser-Busch InBev.

- 19 C ONSULTANCY Coriolis – Specialising in improving business performance.

Logistics & Distribution . . . . . . . . . . 33-38 Processing & Manufacturing . . . 41-43 & 48

PAGE 47

Energy & Environment. . . . . . . . . . . . . . 46

Doros Constantinou, ce, Coca-Cola Hellenic.

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

- 23 & 24 D AIRY

Advertising: Susan Doyle, Stuart Atkinson. Senior Sales Executive: Paul Lees Production Manager: Susan Doyle

Good performance from Glanbia as Irish business returns to profit.

PAGE 11

Owen Killian, ce, Aryzta.

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!

First half improvement but Bongrain still underperforming.

Leaner Tulip adapts to changing UK pork market.

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Royal FrieslandCampina doubles interim profit.

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FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2010

1

N N E E W W S S Unilever Predicts Continued Slow Economic Growth Unilever has reported a 35% increase in net profit to Eur2.21b on turnover ahead by 9.7% to Eur21.89b with underlying sales growth of 3.8% for the first half of 2010. Group operating profit rose by 20% to Eur3.07b.

Although prices were down by 2.6% during the first half, this was offset by underlying volume growth of 6.6%. The underlying operating margin advanced 30bps with continuing strong gross margins offset by significant investment in advertising and promotional expenditure, up 180bps.

Market growth in developed economies remains depressed whilst emerging market growth remains strong. Within its Western European region, markets were difficult, particularly in southern European countries such as Greece, Spain and, to a lesser extent, Italy.

“We continue to operate under the assumption of slow economic growth, particularly in developed markets where consumer confidence remains fragile. We do not expect competitive pressures to ease and our ability to increase prices will remain constrained despite rising commodity costs in the second half. We still expect underlying price growth to turn positive towards the end of the year,” says Paul Pulman, chief executive of Unilever.

kets and extra marketing investment, Nestle has increased net profit by 7.5% to SFr5.5b (Eur4.0b) on group sales up by 5.9% to SFr55.3b for the first half of 2010. Organic sales growth was 6.1%, including real internal growth of 4.6%.

The group’s EBIT margin increased by 100 basis points to 15.1%, or by 70 basis points on a like-for-like basis in constant currencies. The ongoing efficiency drive under the Nestle Continuous Excellence programme contributed to the improvement in EBIT margin, even after increased investment in the business to improve longterm performance.

“The group’s very successful first-half performance is due to the excellent execution of our proven strategies in all parts of the world, covering the full range from premium brands to valuepriced offerings, combined with the ongoing successful implementation of Nestle Continuous Excellence,” says Paul Bulcke, chief executive of Nestle.

Signs of Recovery at Refocused Uniq Having completed the sales of its operations in continental Europe and transformed into a UKfocused chilled foods business, Uniq has reported an operating profit of £1.0m for its continuing business for the first half of 2010 compared to a loss of £3.7m in the corresponding period of the previous year. Revenue from continuing business rose from £141.1m to £156.3m and pretax losses, excluding the effects of the European disposals, were cut from £12.8m to £6.0m.

Paul Pulman, chief executive of Unilever.

Strong First Half From Nestle Benefiting from deeper penetration in emerging markets of the world, the continued success of its premium products in both developing and developed mar-

Geoff Eaton, chief executive of Uniq.

B B R R II E E F F Seabrook Crisps Plans New English Factory Seabrook Crisps, the north of England-based snacks manufacturer, is planning to build a new factory in the south of the country as part of its five year development plan to expand its geographical coverage and to increase sales to £200m by 2022.

The family run company, which has increased turnover by 130% to £28m in the last two years, currently holds 5.6% pf the UK crisps market but expects to claim a 10% share by 2015. The company is 65 years old.

According to John Tague, managing director of Seabrook Crisps, the proposed new snacks factory would be built by 2012 or 2013 in Northamptonshire.

0.5% on a pro forma basis at £790m and now represent 65.2% of total sales, up from 62.0% on the first half of 2009.

“Our principal brands are growing in both volume and market share and our gross margins have risen as we have improved product mix and delivered procurement gains and manufacturing efficiencies. We are controlling costs tightly and have made good progress in strengthening our cash flow and reducing debt,” comments Robert Schofield, chief executive of Premier Foods.

Interim Profits Jump at Ter Beke The benefits of efficiency investments and continuous cost control have helped Ter Beke, the Belgian ready meals and processed meats manufacturer, to increase EBITDA by 22.2% to Eur19.6m in the first half of 2010. Group turnover increased by 3.1% to Eur197.4m as the ready meals and processed meats divisions both increased volume sales. Net profit rose by 29.5% to Eur5.7m.

Premier Foods Increases Branded Sales in First Half Premier Foods, the UK’s largest domestic food processor, has increased operating profit by £40m to £67m for the six months to 30th June 2010 following the completion of exceptional integration expenditure in 2009. However, trading profit declined 6% to £110m reflecting £11m of additional pension, marketing and restructuring costs.

Although the group’s brands are trading well in tough conditions, its own label sales declined by 12.7%. Total sales were down 4.5% on a pro forma basis to £1.21b for the period with volumes falling 4% and price and mix contributing 0.5%. Branded sales in the half year were up

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2010

Robert Schofield, chief executive of Premier Foods.

Major Improvement By Zetar Zetar, the UK confectionery and snack foods group, has reported a much improved financial performance for the year ended April 30th 2010. Turnover from continuing operations increased by 11% to £131.9m, benefiting from a focus on innovation and economy product launches.

Adjusted operating profit was up 21% at £7.3m and adjusted profit before tax rose 40% to £6.4m. Zetar’s reported net profit at £4.3m marked a major turnaround when compared to a loss of £5.1m for the previous year.

Roshen Investing €8m to Modernise Lithuanian Factory Roshen Confectionery Corporation will invest Eur3.2m towards the end of 2010 in new production lines as the first phase of a Eur8m modernisation programme at its caramel factory in Lithuania. When the programme is complete production will increase to 1,290 tons per 3

N N E E W W S S month. Products from the modernised factory will be sold on EU markets from March 2011.

Steady Volume and Sales Growth at Danone French food and beverage giant Danone has reported an 11.2% increase in consolidated sales to Eur8.35b in the first half of 2010 and a 7% rise on a like-forlike basis. The like-for-like sales growth was driven by a 9.8% jump in volume and a 2.8% decline in value. Trading operating income increased by 2% on a like-for-like basis to Eur1.28b.

Danone’s trading operating margin was stable at 15.30% compared to the average margin in 2009. However, compared to the first half of 2009, the margin decreased by 74 bps on a likefor-like basis. The impact of higher raw material prices in the first half of 2010 has been largely offset by Danone’s various cost savings initiatives, which are expected to generate up to Eur500m in the current financial year.

Danone assumes that the financial, economic and social crises will continue to weigh on consumption trends in Europe, while emerging markets are expected to keep developing well overall.

For full year 2010, Danone is targeting like-for-like sales growth of at least 6%; a stable trading operating (EBIT) margin versus 2009 on a like-for-like basis; and an increase of the free cash flow from operations of at least 10% versus 2009 on a reported basis.

Solid First Half Profitable Growth By Kerry Group Kerry Group, the global ingredients, flavours and consumer foods manufacturer, has achieved strong profitable growth in the first half of 2010 with trading profit up 12.9% to Eur204m and sales revenues increasing by 6.7% and 2.7% on a like-for-like basis to Eur2.4b. Profit before tax increased to Eur162m from the 2009 first half level of Eur115m.

Kerry Group’s trading profit margin improved by 40 basis points to 8.4%, while the Ingredients & Flavours Division’s trading margin advanced 50 basis points to 9.2%, and the Consumer Foods Division’s by 40 basis points to 7.1%.

Business volumes grew steadily and positive margin momentum was maintained through ongoing business efficiency projects and the benefits of restructuring actions and business alignment undertaken in connection with the group’s ‘go-to-market’ programmes over the past two years.

Stan McCarthy, chief executive of Kerry Group.

BAKERY

Europastry Investing €20m in 2010 as Sales Set to Reach €385m

Franck Riboud, chairman and chief executive of Danone.

Europastry is investing Eur20m this year to expand its production and logistics capacity in Spain.

The Spanish and international bakery group is spending Eur12m on a third production line for premium bread brand ‘Gran Reserva’ at its plant in Vallmoll (Tarragona). The remaining Eur8m is the final tranche of the investment in a new automated

B B R R II E E F F warehouse at Vallmoll, which has been operational since December 2009. This will extend the site’s capacity to 20,000 pallets with the ability to handle between 200 and 250 trailer movements a day.

Europastry has been steadily extending its penetration of European bakery markets beyond Spain and also recently entered the US. Indeed, Europastry has now become the third largest producer of frozen dough in Europe, behind Lantmannen and Vandemoortele.

Mixed Interim Results at Lotus Bakeries Belgium-based biscuit and cake manufacturer Lotus Bakeries increased current operating profit by 8.8% to Eur17.5m in the first half of 2010 as consolidated turnover edged up 1% to Eur127.2m. On a like-for-like basis, taking into account the termination of the Jaffa Cake bars contract with McVities, turnover for the first half of 2010 was up 2% over the same period in 2009, and slightly more for the branded products.

However, net profit for the first half of 2010 was Eur9.5m against Eur12.2m in the corresponding period in 2009. The first half of 2010 was adversely impacted by write-downs of US dollar hedging instruments while the first half of 2009 figure was boosted by an exceptional gain from a disposal.

Resilient First Half From Greggs Greggs, the UK’s largest retail baker, increased total group sales in the 26 weeks ended 3rd July 2010 by 2.9% to £321m as likefor-like sales advanced by 0.7%, in line with expectations of marginally positive like-for-like sales growth over the year. Operating profit rose by 13.1% to £18.5 million but the underlying increase was 4% with net margin remaining stable.

Profit before taxation grew 12.3% to £18.6m with no exceptional items during the period.

Greggs opened 26 new shops during the first half and closed eight, making a net increase of 18 since

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2010

the beginning of its financial year, taking its total to 1,437 outlets.

Ken McMeikan, chief executive of Greggs.

MEAT

Moy Park Commences £10m Expansion Having recently received planning permission, poultry processor Moy Park has commenced work on extending the capacity of its site at Ashbourne in Derbyshire, England, by 25%. The expansion and upgrading project involves investment of £10m.

Rectory Foods Expands in Eastern Europe Rectory Foods, the UK-based supplier of poultry, red meat, fruit and vegetables and food ingredients to the food service, wholesale, food manufacturing and retail sectors, has expanded its business in Eastern Europe with the opening of a facility in Lithuania. Established through its UAB Baltreka subsidiary, the new facility will be used to source, store and distribute meat and other ingredients to Baltic countries, and complies with BRC standards.

Arrow Group in the Red Arrow Group has posted a Eur1.9m pre-tax loss on revenue down 18% to Eur340m for 2009, compared to a pre-tax profit of Eur4.6m in the previous year, as the Irish meat processor was impacted by reduced consumer spending and the weakness of sterling. Controlled by brothers Peter, Michael and John Queally, who also own Dawn Meats, Arrow Group’s activities include pig processing, a Barcelona-based water distribution business and a 50% stake in 5

N N E E W W S S Irish chocolate confectionery manufacturer Lily O’Brien’s.

Arrow Group had net debt at the end of December 2009 and employed almost 1,700 people.

DAIRY

First Milk Back in the Black First Milk has returned to the black in the year ended March 31st 2010 with a positive £10.3m swing in pre-tax profitability to end the year with a profit of £0.4m as the UK dairy co-operative systematically reduced its cost base and improved efficiencies throughout the business. Group turnover declined 8% to £536m, reflecting the decision to move away from several low margin cheese contracts.

trimmed the group’s costs and we’ve succeeded in maintaining the low cost levels achieved by the savings campaign in 2009.

The accounts demonstrate that we have a sound platform for growth.”

He continues: “We are maintaining good market positions in our biggest markets in the UK, Sweden and Denmark, and the significant part of the growth in the first half year was also created by external factors such as the positive foreign exchange rate developments for our key export currencies. We are continuing to see increasing growth in markets such as Russia, China and the Middle East as well as the potential for further growth in a number of our markets going forward.”

Having recently decided that its annual results should represent 2.5% of turnover (compared to 2% previously), Arla Foods has revised this year’s profit target from DKr950m to DKr1.2b.

Solid First Half Performance By Emmi

Kate Allum, chief executive of First Milk.

Interim Profit Surges at Arla Foods But a Challenging Autumn Ahead Increased prices in the global market, rising foreign exchange rates as well as strict control of costs have allowed Scandinavian dairy group Arla Foods to post a hugely increased profit of DKr697m (Eur93m) on a turnover of DKr23.8b for the first half of 2010, while still increasing the ongoing payment to its co-operative owners. This compares with a 2009 interim profit of DKr263m on a net turnover of DKr22.3b.

“Arla Foods has had a good half-year during which we increased the milk price paid to our owners three times,” says Frederik Lotz, chief finance officer of Arla Foods. “Last year’s extensive savings campaign

Helped by rising international sales, Swiss dairy group Emmi has increased net profit by 21.5% to SFr39.9m (Eur31m) on sales down by 0.5% to SFr1.27b for the first half of 2010. The profit margin was 3.1 % and Emmi anticipates stable sales for the second half of the year, with the margin remaining at around 3 %.

Major Dairy Rationalisation at Milko Milko, one of Sweden’s largest dairy companies, is to close down two of its four processing plants.

Milko plans to shut its facilities in Karlstad and Sundsvall next year, resulting in the loss of 173 jobs. Based in Ostersund, Milko produces milk, butter, yoghurt, cheese, milk powders and juice.

B B R R II E E F F operating profit of Eur120m in 2009, Yoplait is valued at Eur11.2b.Yoplait is sold worldwide through a franchise network.

Speculation is also rife that French dairy co-operative Sodiaal, which owns the other half of Yolait, may sell part of its shareholding in order to reduce debt following its recent acquisition of Entremont, the French cheese producer.

First Half Improvement at Wimm-Bill-Dann Foods Russian dairy, food and beverages group Wimm-Bill-Dann Foods increased net income by 7.1% year-on-year to US$69.5m on revenue up 17.1% to US$1.26b for the first six months ended June 30th 2010.

EBITDA rose marginally to US$159.7m from US$158.3m in the same period of 2009.

The revenue increase was driven by volume growth in the group’s dairy, beverages and baby food segments and favorable pricing across all segments.

Group revenue in rubles increased 6.6% versus the same period a year ago. However, gross margin declined 400 basis points to 29.9% as a result of the continued pressure of raw milk costs in the first six months of 2010.

Wimm-Bill-Dann Foods is the market leader in dairy products and children’s food in Russia and one of the leading players in the market for nonalcoholic drinks in Russia and the CIS. The group operates more than 35 production facilities in Russia, Ukraine and Central Asia.

Yoplait For Sale Private equity firm PAI Partners is reported to be considering the sale of its 50% stake in French yoghurt producer Yoplait. With sales of Eur3.8b and a gross

Tony Maher, chief executive of Wimm-Bill-Dann Foods.

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2010

First Half Loss For Pieno Zvaigzdes Lithuanian dairy company Pieno Zvaigzdes has reported a loss of LTL0.8m (Eur0.2m) for the first half of 2010 compared to a net profit of LTL6.6m in the corresponding period of 2009. Sales for the first 6 months of 2010 declined by 9% to LTL273.4m (Eur79.2 m) as high raw milk prices and soft export markets impacted on the company’s financial results.

BREWING & DISTILLING

Strong Showing From Heineken Global brewer Heineken has produced a strong first half performance but remains cautious on the development of beer consumption in Europe and the US due to continued weak consumer spending and planned austerity measures across many countries.

Heineken reported a 42% jump in net profit to Eur695 million, partly due to positive exceptional items, on revenue up by 5.2% to Eur7.52b but down organically by 2% for the first half of 2010 as group beer volume declined by 2.3% organically, impacted by the weak economic environment and the effect of excise duty increases, partly offset by strong growth in Africa, Asia and Latin America.

Heineken’s organic net profit (beia) increased 17% to Eur621m, driven by higher EBIT (beia) and lower interest costs. The Dutch brewer’s Total Cost Management programme delivered savings of Eur104m during the first half.

“Heineken achieved strong organic net profit growth in the first half year 2010. Trading conditions remained challenging in Europe and the USA, but we realised strong group beer volume growth in Africa and Asia.

The effectiveness of our premium strategy was reinforced by the continued strong performance of the Heineken brand which once again outperformed our broader portfolio and the overall beer market,” comments Jean7

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N N E E W W S S Francois van Boxmeer, chairman and chief executive of Heineken.

The recently completed acquisition of FEMSA Cerveza, which is expected to yield annual cost synergies of Eur150m by 2013, consolidates Heineken’s position as the world’s second largest brewer by revenues and third largest by volume, and expands its exposure to developing beer markets. In addition, it creates a platform for future value growth in three of the four largest beer profit pools in the world.

Heineken expects the organic increase in net profit (beia) for the full year 2010 to be at least in low double digits.

pressure on margins and EBI’s operating profitability improved significantly compared to the first quarter of the year. In addition, lower input costs and a stronger Ruble versus US Dollar in 2010, largely absorbing the negative effect of excise tax hikes and higher operating expenses, continued to help us to achieve better margins in this quarter,” says Alejandro Jimenez, chief executive and chairman of EBI. The group has revised its outlook for 2010 upwards and is now forecasting to complete the year with high single digit volume growth and flattish gross and EBITDA margins.

Stronger Second Half Performance Drives Growth at Diageo

Jean-Francois van Boxmeer, chairman and chief executive of Heineken.

Efes Breweries Shows Improvement in Russia Despite the continued adverse economic climate and the significant excise tax increase in Russia, one of its key markets, Efes Breweries International, which operates in the Commonwealth of Independent States (CIS), Eastern Europe and the Balkans, has reported higher volumes, revenues and EBITDA in the first half to June 30th 2010, marked by a major improvement in the second quarter. Volumes increased by 13.2% to 7.6m hectolitres in the first half compared to the corresponding period in 2009, net revenues grew by 13.2% to $472m and EBITDA by 9% to $91.1m, although the margin fell 75bps to 19.3%.

However, operating profit declined by 2.2% to $40.2m compared to the first half of 2009.

“In the second quarter of 2010, higher volumes as well as an another price increase by the beginning of April in Russia to reflect higher taxes eased the

A stronger second half performance has helped global alcoholic drinks giant Diageo to increase reported operating profit by 6.5% to £2.574b, aided by exchange rate movement, for the year ended June 30th 2010 as gains in developing international markets offset declines in the mature markets of North America and Europe. On a reported basis, net sales increased by 5% to £9.78b during the year.

Organic growth in both operating profit and net sales for the

B B R R II E E F F we demonstrated this year, the global diversity of our business, together with the strength and range of our brands and the agility we have demonstrated gives us confidence that in fiscal 2011 we will be able to improve on the organic operating profit growth we have delivered this year,” says Paul Walsh, chief executive of Diageo.

Carlsberg to Close Swiss Brewery Global brewer Carlsberg will concentrate its beer production in Switzerland at its main brewery at Rheinfelden and its site in Fribourg will close down by June 2011. The move is part of the ongoing optimisation of the production network across the Carlsberg Group. Volume is being transferred from Switzerland to the brewery in Obernai in France, which became part of the Carlsberg Group following the acquisition of Brasseries Kronenbourg in 2008.

AB InBev Loses EU Trade Mark Decision The European Court of Justice, the top court in the European Union, has upheld earlier rulings by the European trade mark office and the European Court of First Instance which deny 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 in 2008, 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.

first half of 2010.

EBITDA reached Eur127.0m, an increase of 18.1%. Sales of spirits accounted for 76.9% of total turnover, up from 72.3% in the first half 2009.

World Cup Scores For Anheuser-Busch InBev Helped by its sponsorship of the FIFA World Cup, Anheuser-Busch InBev, the world’s biggest brewer, increased beer volumes by 2% in its second quarter and by 1.5% in the first half of 2010. The group’s focus brands grew volumes by 4% in the first half, led by Budweiser internationally, Antarctica, Brahma and Skol in Brazil and Harbin in China. During the first half Anheuser-Busch InBev gained or maintained market share in markets representing almost half of its total beer volumes.

However, apart from the international successes with Budweiser, Anheuser-Busch InBev is dissatisfied with its overall market share performance and is putting in place brand building and commercial programmes to improve matters in the second half of 2010 and into 2011.

EBITDA rose 5.4% to $6.44b during the first half with a margin of 36.8%, an organic improvement of 79 basis points. Revenue advanced by 3.1% to $17.50b. Net debt was reduced by $3b during the period to £42.1b. InBev’s $52b acquisition of Anheuser-Busch in 2008 to create Anheuser-Busch InBev was financed with $45b of debt. The global brewer gained synergies of $310m during the first half, bringing total synergies from merging the two businesses to $1.67b.

Spirited First Half Performance by Campari Paul Walsh, chief executive of Diageo.

year was 2%. Diageo’s profit before taxation increased by 12.5% to £2.24b in the year.

“The impact of the global economic crisis varied by market and the strength of the recovery appears to be equally variable. However, as

Benefiting from good consumption momentum across key brands and markets, the consolidation of its Wild Turkey acquisition and an easy comparison base versus last year’s first half, which was hit by the credit crunch and destocking activities, Italian drinks group Campari has increased net profit by 15.2% to Eur69.3m on sales up by 16.7% to Eur515.7m for the

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2010

Carlos Brito, chief executive of Anheuser-Busch InBev.

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N N E E W W S S Synergy Widens International Reach Synergy, one of the leading distilled spirits producers in Russia, has signed distribution agreements for exports of Beluga vodka to Iraq, Vietnam and India, the growing vodka markets in Middle East and Asia and strengthen brand visibility in the European Duty Free by signing a distribution agreement with one of the world’s leading duty free operators.

SABMiller Interested in Foster’s SABMiller, the world’s second biggest brewer, is reported to be considering launching a £7b bid for the beer business of Foster’s, the Australian brewer and wine producer. Carlton & United Brewers, Foster’s beer operation, produces Victoria Bitter and Foster's lager.

A successful bid by SABMiller would make it the biggest brewer in Australia and strengthen its standing in the Pacific region.

Japanese brewer Asahi is also believed to be interested in the Foster’s beer business. Foster’s announced in May that it was going to spin-off its struggling wine business.

Graham Mackay, chief executive of SABMiller.

MERGERS & ACQUISITIONS

Capitan Findus and That's Amore – along with a factory in Cisterna, Italy. Findus Italy employs 650 people and had annual sales of Eur462m in 2009. The purchase price is between nine and 10 times Findus Italy’s EBITDA. The transaction is subject to approval by the EU competition authorities.

Permira acquired Bird Eye Igloo, Unilever’s frozen food business with the exception of Findus Italy, for Eur1.7b in 2006. Birds Eye Igloo beat rival the Findus Group, which includes the Young’s frozen seafood business in the UK and is owned by private equity firm Lion Capital, to secure the acquisition of Findus Italy.

Northern Foods to Sell Dalepak Frozen Foods UK convenience foods producer Northern Foods has agreed to sell Dalepak Frozen Foods to the Irish Food Processors Group, one of the largest meat processors in Europe, for an expected cash consideration of £6.4m. Dalepak, based in Northallerton, North Yorkshire, England, is a supplier of frozen food products, including meat and meat free grills, with brands such as Dalepak, Ross and Grassington’s.

Subject to due process, 143 employees will transfer to the Irish Food Processors Group.

Dalepak made a marginal loss on sales of £23m in the year to 3rd April 2010. A proportion of the proceeds from the transaction will be paid into the Northern Foods Pension Schemes.

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United Biscuits Offered For Sale Private equity firms Blackstone Group and PAI Partners are reported to be seeking to sell British and international biscuits and snacks manufacturer United Biscuits for £2b or more. In 2009, United Biscuits increased EBITDA by 13.7% to £223.4m on turnover up 5% to £1.26b.

United Biscuits (UB) is one of the world’s leading branded biscuits and snacks businesses. The group’s products range from biscuits and crackers to cakes and savoury snacks and its portfolio of brands includes McVitie’s, Jacob’s, Carr’s, McCoy’s, Hula Hoops, McVitie’s Jaffa Cakes, KP, Mini Cheddars, go ahead!, Verkade, Sultana, BN, and Delacre.

The sale process is due to begin in the autumn and to be concluded early next year.

Blackstone Group and PAI Partners acquired United Biscuits for £1.6b four years ago.

Emmi Strengthens US Cheese Business Swiss cheese producer Emmi has expanded its international business with the acquisition of US cheese specialist Cypress Grove Chevre. Based in California, Cypress Grove is well known in the US for fresh and ripened premium goat's cheese specialties.

Emmi has also increased its stake in New York-based CASP (Contract Aseptic & Specialty Packaging) to 100%. The purchase price for both deals was not disclosed. Emmi plans to continue its international growth, focusing in particular on the Italian, German, Austrian, UK and US markets.

Greencore Completes Disposal of Dutch Convenience Food Business

Unilever Sells Findus Italy to Birds Eye Igloo for €805m Unilever is selling its Italian frozen food business, Findus Italy, to Birds Eye Iglo, which is owned by private equity group Permira, for Eur805m.

The deal includes four brands Salti in Padella, Sofficini,

B B R R II E E F F

Stefan Barden, chief executive of Northern Foods.

Leading UK and Irish convenience food manufacturer Greencore Group has completed the sale of its Netherlands-based convenience foods business, Greencore Continental, to Convenience Foods Europe, a subsidiary of Parcom Buy Out

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2010

Fund IV. According to Partrick Coveney, chief executive of Greencore, the disposal is in line with the group’s strategy of developing an industry leading position in convenience foods in the UK supplemented by a growing convenience foods business in the US.

Partrick Coveney, chief executive of Greencore.

Europe’s Leading Canned Seafood Company Sold For €680m Thai Union Frozen Products, Thailand’s major processor and exporter of canned and frozen seafood, is acquiring MW Brands, Europe’s leading canned seafood company, for an enterprise value of Eur680m from private equity firm Trilantic Capital Partners.

MW Brands is one of the European leaders in tuna and other ambient seafood products through its strong brands - John West, Petit Navire, Hyacinthe Parmentier and Mareblu - and holds leading market positions in France, the UK, Ireland and the Netherlands and Italy. Trilantic acquired MWB from the US food giant HJ Heinz in 2006.

For the latest fiscal year ended March 31st 2010, MWB generated sales of Eur448m.

Simply Fresh Foods Acquired by Morrisons Morrisons, the UK’s fourth largest supermarket group, has expanded its manufacturing division with the acquisition of Simply Fresh Foods, a supplier of stir-fry mixes, prepared vegetables and ready-to-eat salad products to the retail trade, for an undisclosed sum.

Based at Worsley near Manchester, Simply Fresh Foods will supply packed vegetable lines

N N E E W W S S to Morrisons’ retail network of more than 425 stores. Morrisons operates 13 distribution centres and 13 manufacturing sites, including three abattoirs, in the UK.

Lactalis Acquires Rachel’s Organic French and international dairy group Lactalis has extended its UK interests with the acquisition of Rachel’s Organic, the Welsh company best known for its organic yoghurt range, from USbased Dean Foods. Employing 140 people and with annual sales of about £30m, Rachel’s supplies more than 10 million pots of yoghurt a year and is the second largest organic dairy brand in the UK.

Aryzta Makes Strategic Investments in North America, Latin America and Asia International speciality bakery group Aryzta is acquiring Tim Horton’s 50% share in Maidstone Bakeries, a Canadian joint venture between Aryzta and Tim Horton, for C$475m (Eur349m). The Maidstone facility was designed, constructed and commissioned in partnership with Tim Hortons, the leading quick service restaurant (QSR) in Canada, in 2002 to 2003.

With 100% ownership Aryzta will be able to market Maidstone’s spare capacity across all its customer channels with a particular focus on its recently expanded customer base following its acquisition of Fresh Start Bakeries in the US. The increased capacity utilisation will unlock value for Aryzta from its investments in Maidstone which will total Eur409 million after purchase of the Tim Horton stake.

Separately, Aryzta’s US subsidiary, Fresh Start Bakeries, is in the process of completing an investment in three bakeries in Asia (located in Taiwan, Singapore and Malaysia) and

will commence the construction of a new bakery in Brazil. These bakeries will principally service a leading international QSR operator that is expanding in these regions. The investment by Fresh Start Bakeries is expected to total about US$48m (Eur36m).

B B R R II E E F F the order of 30% over the last three years. This strategic transaction allows Nestle to enter the fast-growing global market for clinical nutrition products tailormade for people with inherited metabolic disorders.

Danone to Dispose of Stake in Wimm-Bill-Dann Foods Danone has agreed to sell its 18.4% stake in Wimm-BillDann Foods to the Russian food group for a total consideration of $470m. The agreement follows the recent announcement of the joint-venture between Danone and Unimilk in the CIS region.

Owen Killian, chief executive of Aryzta.

Hero Disposes of French Fruit Dessert Business Swiss and international consumer food group Hero is selling its French fruit dessert business to Charles Faraud, which is majority owned by CIC-Banque de Vizille. The transaction will be completed at the beginning of September. Charles Faraud is a specialist in fruit desserts and is especially strong in the food service channel in France.

Acquiring Hero’s French compote business will provide it with better access to the French retail market.

Approval For Vion’s Proposed Acquisition of Weyl The European Commission has cleared the proposed acquisition of Weyl by Vion, two Dutch producers of meat products. Weyl is an international beef and calf processing company in bankruptcy. Weyl was founded in 1977 and was the largest producer and processor of beef in the Netherlands. Before it went bankrupt, the company employed well over 600 personnel, of whom approximately 200 were temporary staff

Nestle Enters Clinical Nutrition Products Market Nestle has completed the acquisition of Vitaflo, a Liverpoolbased global provider of clinical nutritional products which has enjoyed double-digit growth in

Nestle Completes Disposal of Alcon Nestle has completed the sale of its remaining 52% stake in Alcon, the global eye care business, to Novartis for $28.3b. Nestle acquired Alcon in 1977 for $280m. Taking into account the three steps of the gradual divestment of Alcon - the initial IPO of 23.25% in 2002, the sale of 24.8% in 2008 and the sale of Nestle’s remaining Alcon shares to Novartis - Nestle has realised $41b.

“This divestment of our interest in Alcon will enable our management to concentrate on accelerating Nestle’s transformation as the world’s leading nutrition, health and wellness company,” remarks Paul Bulcke, chief executive of Nestle.

Paul Bulcke, chief executive of Nestle.

Refresco to Acquire Soft Drinks International

Unilever Acquires Danish Ice Cream Business Unilever is acquiring Diplom-Is, a Danish ice cream business, from TINE, the Norwegian dairy group, for an undisclosed price. Employing 30 people, Diplom-IS operates five local distribution centers in Denmark.

TINE also owns and operates Diplom-Is in Norway and Sweden, which it is retaining.

by five bakery plants, and had sales of over Eur300m last year.

Uwe Tillmann, chief executive and chairman of the executive board of Vion.

Barilla Disposes of German Bakery Business Italian pasta and bakery group Barilla is selling Kamps, its German bakery chain, to ECM Equity Capital, a Frankfurt-based private equity firm, for an undisclosed price. Kamps has 900 franchise shops in Germany selling bread and baked goods, supported

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2010

Netherlands-based Refresco, Europe’s leading manufacturer of private label soft drinks and fruit juices, is to acquire Soft Drinks International, a German producer of soft drinks and water, for an undisclosed price. SDI is a strong, regional producer, primarily active in the German market and the Benelux, with production facilities in Erfstadt (Germany) and Heerlen (The Netherlands). SDI’s products are also exported to other European countries.

SDI focuses solely on the private label segment. Turnover in 2009 was Eur140m and production was approximately 1b units. The deal is expected to be completed within several months.

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COVER STORY

Lakeland Dairies Completes €20 Million Investment in New Milk Powder Facilities Lakeland Dairies, Ireland’s second largest dairy processing co-operative, has recently completed a €20 million investment in new milk powder processing systems at its site at Bailieboro, making it the largest and most modern non-whey milk drying facility in Europe.

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he new facilities manufacture various annually into a range of value added dairy dairy-based powders such as whole food service products and functional food milk powder, skim milk powder and ingredients. In addition to catering for buttermilk powder. The processing domestic consumption, the group’s capacity of the new dryer is 7 tonnes per Foodservice and Food Ingredients Divisions hour on whole milk powder. The powder export high quality dairy products to over 70 manufactured in the dryer is moved gently countries worldwide, including the UK, by ‘vacuum transport’ (to avoid breakdown Europe, North and South America, Asia, of the sensitive powder particles) to new Africa and other international markets. powder storage silos and from there to the Lakeland Dairies reported operating profnew bagging lines via the FIBC (Flexible its of €1.4 million on turnover of €325.7 Intermediate Bulk Containers) system and a million for the year ended 31st December bulk filling system. The 25 kg bagging line 2009 and closed the year with a strong bal(including a pre-gassing system) is rated at ance sheet and shareholders' funds of €71 12 tonnes per hour of powder packed. million.

The new building, which houses the dryer, is approximately 35 metres tall and is higher Managing the Project €20 Million than the evaporator building and powder Project storage building located on either side. The Dublin-based consulting engineers Malone new evaporator and dryer system runs sepa- Michael Hanley, chief executive of Lakeland O’Regan, which has a strong track record of rately but in parallel to Lakeland Dairies’ Dairies. working on food and beverage plants in existing evaporator and dryer on the site.

Ireland, was selected by Lakeland Dairies as The existing milk intake facilities at Bailieboro were also upgraded project manager for the €20 million investment programme. In with the addition of new storage tanks and separators. addition to overseeing the management of the entire project, Malone O’Regan was also responsible for developing the specificaConsolidation tion and leading the procurement process for the main process With the new systems installed, Lakeland Dairies has consolidated equipment supply. all its milk powder production at the Bailieboro site, resulting in The firm also performed the design for the civil/structural, utilithe closure of a milk drying facility at Lough Egish. ties, electrical parts of the project to suit the main process supply.

The Balieboro plant is part of Lakeland Dairies’ Food Malone O’Regan also specified and procured all equipment outside Ingredients Division, which produces a comprehensive portfolio of of the main process supply and was responsible for selecting and highly functional food ingredients with appointing all contractors and nominated fine, free flowing milk powders, proteins sub-contractors including civil/structural, and liquid dairy fats of an exceptional mechanical, electrical and utilities instalconsistency. The Food Ingredients lation.

Division accounted for about 55% of The main process equipment supply group turnover in 2009. contract was awarded to GEA Process Technologies in late 2008 following an Benefits extensive tendering process. Irish compaAccording to Kieran Lonergan, general ny Bennett Construction was appointed manager, Food Ingredients Division, the for the civil works, which commenced at upgraded and expanded Bailieboro site the end of February 2009 and milk powwill allow Lakeland Dairies to benefit der from the new facility was being profrom reduced processing costs, duced by early April 2010. economies of scale and considerable cost Malone O’Regan headed the project savings, improving its long-term compet- Lakeland Dairies has recently completed a €20 million team, including Lakeland Dairies personinvestment in new milk powder processing systems at its nel and GEA personnel, to identify itiveness in global dairy markets.

Operating within the northern half of site at Bailieboro, making it the largest and most modern requirements, constraints and risks, and the island of Ireland, Lakeland Dairies non-whey milk drying facility in Europe. Picture shows the to develop the project plan. Malone processes about 800 million litres of milk evaporator being installed.

O’Regan also managed the building conFOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2010

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struction, main process supplier and contractors throughout the project before co-ordinating the testing and commissioning (mainly by GEA specialists) with Lakeland Dairies to achieve smooth integration with existing plant operations.

appearance of the bags is good and the weight deviation tolerance is exceptionally tight, so you have less wastage.”

The evaporator and dryer system was mechanically installed by ACO Service, a Danish company with significant experience of GEA equipment.

McNally Crane Hire performed the main lifting of equipment which included contract lifts for the evaporator calandria (approx 55 tonne), the dryer system vibrating fluid bed and other large critical equipment.

GEA Process Engineering The core processing equipment – from milk intake to bagged product ready for palletising - for the Bailieboro project was designed and supplied by a consortium of seven The highly automated, low intervention bagging line has a capacity specialised companies within the of 12t/h.

GEA Process Engineering group under a contract worth Eur11 million.

Major Challenges GEA Process Engineering, France supplied the 2-Effect MVR The requirements for installing the main process equipment – the Evaporator designed for 56,650 kg/hr whole milk feed. The multi- evaporator, dryer and associated systems - largely dictated the time stage dryer (MSD-1000-N Dryer), which has a capacity of 7t/hr schedule of the project. The new building had to be ready by the whole milk powder, along with automation of the evaporator and first week in July 2009 to allow roughly 24 weeks for installation dryer were from GEA Process, Denmark. of the processing equipment followed by six to eight weeks of GPNL, Netherlands provided the powder transfer (vacuum con- commissioning and testing so that the new facilities could accomveying) system from the dryer to the silos and from there to the modate the surge in milk volumes in early Spring 2010. Because of pre-gassing system that connects to the bagging-off line. the massive size of the dryer, it was erected on site. The mechaniThe highly automated, low intervention bagging line (RBF cal installation of the dryer chamber commenced in early July 1200Li, with a capacity of 12t/h) was delivered by Avapac, New 2009 and installation of the evaporator system started in the secZealand. ond week of September 2009.

GEA Westfalia Separator Ireland supplied, installed and commis“Due to the tight programme, the approach taken was to identisioned a milk separator MSE 500 (50m3/hr separation capacity), fy a number of key dates that had to meet in order that the new while GLPS (Denmark) supplied and commissioned a reverse- plant would be commissioned on time. This followed the equiposmosis plant for treatment of condensate from both the new and ment delivery dates agreed with the main process supplier, GEA. existing evaporators.

All contractors/suppliers were appointed on the basis of achieving The GEA part of the project was coordinated by GEA Process the dates in each case,” says Colm O’Gorman of Malone O’Regan.

Technologies Ireland, which also provided sales support and comThe severe winter weather during a critical phase of the project – ponent and engineering supply for the milk intake. mechanical, utilities and electrical installation in advance of civil “We were able to offer the client the benefits of a strong local works commencing in February 2009 - made the tight programme presence, and the technical ability and competence of the GEA schedule even more challenging.

Group to handle milk from liquid intake to powder in the bag,” “The unusually cold winter - the coldest since 1947, according points out Kevin Walsh, project manager, GEA Process to some reports - was not foreseen and this had a large impact on Technologies Ireland. the progress over the Christmas 2009 period. Bailieboro is one of the highest inland towns and is therefore one of the coldest parts Energy Efficiency of the country,” points out Frank Moran of Malone O’Regan.

The new evaporator at Bailieboro incorporates a heat recovery sys- “The nature of the installation meant that the inside of the buildtem. This is used to recover heat from the condensate streams to ing was exposed to the elements to a certain degree. Contractors heat up the milk feed to the evaporator and to transfer excess heat working on the project however continued to perform throughout into the air supply to the dryer (1275kW heat recovered in this the winter even though commuting times were lengthened and way, for whole milk production). “The evaporator is very energy working conditions were very difficult.” efficient in the way it deals with condensate and what would norAfter considering input from the Bennett Construction, GEA mally be waste heat, maximising recovery to both the dryer and for and ACO Service, Malone O’Regan decided to proceed with conuse by the client in the rest of their processes,” Kevin Walsh structing a removable roof section for the main building. “While explains. this presented logistical difficulties meaning a longer installation Lakeland Dairies has become the first company in Europe to period and additional civil works, it was felt that in the long run it install GEA Avapac’s low intervenwould be the lower cost option and a tion filling and bagging system, much greater chance of meeting the which is designed to minimise prokey project milestones,” Colm duction costs and maximise product O’Gorman adds. quality and consistency. Kevin The project also had to be completWalsh elaborates: “This type of low ed with mininum disruption to the intervention line was only develnormal working of the Bailieboro site. oped recently. There are 17 of them “The project was further complicated in the world, mostly in New by the fact that we were working in Zealand and Australia, but this is the middle of an existing complex of the first one in Europe. It has a buildings, including the existing dryer high rate – 12 tonnes per hour – that had to be kept operational,” and the bags that are presented comments Frank Moran. “One of from the filling line, due to the way Malone O'Regan's strengths that sets in which they have been de-aerated The requirements for installing the main process equipment – the itself apart from competitors is the and packaged, means that they fit evaporator, dryer and associated systems - largely dictated the time ability to work on the ground within better on the pallet. The visual schedule of the project. Picture shows evaporator installation. existing operations and to work to FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2010

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keep production going. We have people with production experience to help the projects along. We feel this is a very important thing in the industry now.”

Team Spirit To minimise the impact on the existing operation, Lakeland Dairies personnel, in particular the maintenance staff, worked extremely hard throughout the project. “The civil construction along with the process, mechanical, electrical and utilities installation was carried out in a very good spirit which turned out to be extremely important in overcoming the bad weather conditions and Bag destaker. working closely with Lakeland Dairies personnel to minimise the impact on any existing operations.

Lakeland Dairies’ leadership - Kieran Lonergan and Martin Daly - provided direction and support throughout the project and this proved crucial for project progress.”

Colm O’Gorman continues: “The milk intake part of the project was probably the most difficult to avoid impacting the existing plant operation as the upgrade was carried out within the same processing area. The Lakeland Dairies process engineer Nicholas Comey played a key role in ensuring this part of the project went smoothly.”

Part of Wider Investment in Ireland The Eur20 million investment project at Bailieboro was 40% grant aided through the Irish Government’s Dairy Investment Fund. A total of 19 capital investment projects were awarded Government grant assistance of over Eur114 million under the scheme which stimulated total investment of Eur286 million to increase the proportion of added value production by the Irish dairy processing industry and to ensure its continued global competitiveness in the long-term.

The Dairy Investment Fund provided financial aid for the provision of new modern plants to replace smaller, inadequately equipped facilities. Furthermore, it was designed to support product specialisation, involving some companies building on their market position and developing the technological know-how to increase added value.

Lakeland Dairies has become the first company in Europe to install GEA Avapac’s low intervention

“As an invest- filling and bagging system. ment in the future of Lakeland Dairies, this is the single most modern plant in Ireland and Europe for non-whey milk powders. With a production capacity of 70,000 tonnes of high quality milk powders, the site will maximise milk throughput throughout the year. It has also enabled the closure of the Lough Egish milk drying facility with further substantial cost savings,” states Michael Hanley, chief executive of Lakeland Dairies.

“Bailieboro will also process 25,000 tonnes of butter products which further streamlines our overall milk utilisation and logistics at this location. This landmark development will create new economies of scale. In particular, it will allow us to more effectively counter the cyclical spikes and troughs which will be a continuing feature of the global food ingredients markets for the foreseeable future.” J

ACO SERVICE ACO-Service has more than 30 years of experience with design, planning, production and installation of modern production plants for the food industry.

Investment in the Future Having consolidated operations and completed its technologically advanced milk powder manufacturing facilities at Bailieboro to improve manufacturing efficiency, the Food Ingredients Division is now well placed to compete in international dairy markets against far bigger rivals.

Malone O’Regan Consulting Engineers Malone O’Regan, Consulting Engineers, is a Professional Engineering and Environmental Services company with offices in Dublin, Waterford and Galway. For over thirty years, the company has supported the food and drinks industry and has developed a wide range of capability in Engineering, Environmental and Project Management Services.

The knowledge captured during many years of experience on projects in the food and drinks industry, is continually utilized to ensure that current and future clients can depend upon Malone O’Regan to deliver cost effective and innovative solutions on time and on budget even in the most demanding instances.

Malone O’Regan has a particular expertise in successfully meeting the challenges imposed by project on existing sites where production must be maintained. Senior personnel employ relevant project management techiques to balance the conflicting demands of production, process, engineering programme and cost control, whilst ensuring that Statutory Approvals, Environmental limits, and Safety and Health are fully respected.

ACO-SERVICE A/S Fabriksvej 12-14 DK-6000 Kolding Phone: +45 65 565 600 Fax: +45 65 565 626 Email: info@aco-service.dk Web: www.aco-service.com

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I CONSULTANCY

Coriolis – Specialising in Improving Business Performance Established in 1996 by Mark Dudley, Coriolis has developed into one of the UK’s leading specialist consultancy firms for the food manufacturing industry. ith a wealth of expertise and accumulated experience across the full spectrum of the food manufacturing industry within the business, the tightly-knit team of thirty people at Coriolis offers food manufacturers a broad range of services including performance improvement, management information systems, capital project management, lean coaching and environmental auditing.

The common theme to all the services offered by Coriolis as an external consultant is the ability to effect improvement in its clients’ businesses. Indeed, Coriolis, as its name suggests, acts as a hidden force that can make things happen.

While the food industry accounts for about 80% of its business, Coriolis also has a significant presence in the aerospace sector. Coriolis is primarily UK-based but undertakes work abroad for many of its multinational clients and is currently fulfilling contracts of this nature in Scandinavia and the US.

Crest to project manage its planned £75 million capital investment over the next three years to upgrade its liquid milk dairies. Coriolis is responsible for ensuring that Dairy Crest achieves the best value for its investment. Indeed, capital project management is becoming an increasing part of Coriolis’s business.

“Capital investment projects are often considered to be purely engineering, however many work streams from supply chain to operations must be managed effectively in order to deliver the benefits on time, in full,” he comments.

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Different Approaches “Food businesses require different services from us, depending upon their stage of development. Our expertise is to know what to apply to any specific business. To do this, you have to get inside the business first to understand what needs to be done, which will depend upon which stage of the performance graph the business is at,”

“There are a number of skills you need, such as having the intelligence and experience to realise what needs to be done to improve a client’s business, but most important is your ability to communicate that and use that to make something happen.”

Mark Dudley, founder and managing director of Coriolis.

explains Mark Dudley. “For example, we have done a lot of work in turnaround situations where it is all about getting hold of operational control of the business in order to break out of a customer service spiral or a quality spiral or even hemorrhaging cost.

In this case, we would put quite basic scorecards and measures in place and carry out basic training with people to put the business back on track.”

He adds: “However, the approach would be totally different at, for instance, a canning plant that was already running at 75% and was looking to improve to 78%.

Here you would be looking at far more sophisticated lean tools and diagnostics to squeeze the pips out of the performance.”

Leading Food Companies Coriolis has been employed by many of the UK’s top 150 food companies. For instance, the firm was recently chosen by leading UK chilled dairy processor Dairy

Turning Point From initially employing two people, Coriolis has grown consistently as its reputation for achieving results and improving the performance of its client companies has spread throughout the UK food industry. A key turning point in the development of Coriolis was in 2004 when it won a twoyears contract with leading UK fresh prepared food processor Geest (later acquired

by Icelandic group Bakkavor for £580 million in 2005) to take £10 million out of its

A key turning point in the development of Coriolis was in 2004 when it won a two-years contract with leading UK fresh prepared food processor Geest to take £10 million out of its cost base per year.

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cost base per year. Coriolis was subsequently retained for a further two years and has since developed a close working relationship with Bakkavor.

“That is when we started to be taken seriously by UK industry rather than being seen as a small business that ran a couple of projects here and there,” says Mark Dudley.

large PLCs delivering improvements across multiple production sites. While Coriolis has been involved in major turnaround situations its role is changing in the current economic climate as food manufacturers struggle to adjust to the new trading environment.

“Most businesses now are reasonably well run and we have seen the quality of manEnhanced Capability agement improving. Well run In 2005, Coriolis established a businesses will make incremendedicated IT team within its tal improvements year-on-year. business to develop bespoke lean What we are normally used for management information sysnow is when a board decides tems specifically for food manuthat incremental improvement facturers. Keimis manufacturing is no longer enough to keep performance improvement softahead of the competition or to ware is designed to capture prohelp keep pace with raw materduction line output data. That ial price inflation or to match data feeds a toolset of charts and some other business dynamic.” reports specifically designed to Mark Dudley continues: “So help users to significantly Coriolis tries to develop long-term relationships with its clients. For example, it what they need is a step-change improve performance at both has worked for Dairy Crest since 1998 and Geest/Bakkavor since 1999. over and above the normal the production level as well as at incremental improvement, and a strategic level. Keimis has been successful- able to do it.” that is why companies are tending to use us ly installed in numerous food businesses now. They need to effect improvements and has been instrumental in driving for- Communication Skills are Vital which may take them a couple of years on ward continuous improvement and reduc- So what are the key skills and expertise that their own but now need to be achieved in a Coriolis, as an external consultancy firm, matter of months.” ing operating costs.

In 2009, in order to strengthen its busi- offers food manufacturers? “There are a ness and the services offered to clients, number of skills you need, such as having Benchmarks Coriolis acquired Forward Vision, a man- the intelligence and experience to realise Coriolis has an impressive performance agement consultancy firm specialising in what needs to be done to improve a client’s track record. “Last year, the average return business, but most important is your ability on investment for clients and projects that pure lean manufacturing and training.

“We help businesses as they improve on to communicate that and use that to make we worked with was 4.5:1. In other words, the performance compendium. When they something happen. We are very good at they got back four and half times what they are at the top end – above roughly 65% - that,” he replies. “Much of what we do spent. The average labour cost reduction on there is a requirement for some specific lean happens on the shop floor with the supervi- our projects was 19.7%,” he points out. tools and we believed that we needed to sors, team leaders and first line managers. “The average material cost reduction was strengthen our ability to deliver in that Our core values come through in our abili- just under 3.5% and for businesses that area. So basically we bought a team of ty to engage with these people and help wanted a throughput improvement the experts headed by Ed Handyside, who was constructively to change the way in which average was 24.6% last year.” formerly responsible for management train- they manage and operate.”

Keimis manufacturing performance Coriolis works with food manufacturers improvement software is helping to deal ing as Nissan UK and so brings many Japanese tools and techniques to our team,” of all types and sizes, undertaking contracts with the increasing complexity of product ranging from a short-term intervention or lines and SKU ranges that has become a Mark Dudley explains. training programme lasting a few days or feature of modern food businesses. weeks, through to major partnerships with “Complexity drives cost back down into Core Values Coriolis was set up by Mark Dudley to the supply chain. We can help businesses to incorporate his core personal values and the identify the true profitability of their indi“Much of what we do expanding company’s success to date has vidual product lines – their rates of contribeen due to its ability to sustain this high bution. Keimis provides live data which happens on the shop floor level of integrity. “I place a very high worth aids business in understanding which prodon the virtues of honesty, integrity and loyucts not only make profit but also make a with the supervisors, team alty. I insist on that with everybody who good rate of contribution. It is not just a leaders and first line works in the business and I believe that our case of the margin that these products make business exhibits these qualities to our but how fast they put cash into the bottom managers. Our core values clients.” line.” come through in our ability He elaborates: “We try to develop longThe Coriolis founder concludes: “We term relationships with both our clients have always had a good reputation on payto engage with these people and our own people. For example, we have back and being cash positive very quickly. and help constructively to worked for Dairy Crest since 1998 and This is crucial in the present climate and Geest/Bakkavor since 1999. We seldom use we are constantly revising and challenging change the way in which they sub-contractor consultants unlike many our methods and approach to ensure our manage and operate.” businesses of our type, who get work and clients enjoy the financial benefits of our then go on the phone to see who is availprojects ever earlier in the process.” J 20

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I PROJECT MANAGEMENT

IFP Delivering Extended and Improved Production Facilities for Solanum Integrated Food Projects was recently appointed to oversee the development and expansion of an existing potato processing and packaging facility in Lincolnshire for Solanum. olanum is part of The Produce World Group, which specialises in fresh produce supply chains for selected partners in the retail and the food service industries.

Solanum receives, stores, grades, washes and packs potatoes for Waitrose and The Co-operative. At the core of the £3.6 million project, which was programmed over 36 weeks, was the dislocation of the existing process to separate the washing/grading process from the packing process.

This enabled the number of washing machines to be reduced and operate more

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Integrated Food Projects Engages New Project Manager As part of its expansion programme, Integrated Food Projects has engaged Lee Harris as project manager to increase its expertise and knowledge base in process design and equipment procurement.

Lee Harris joins Integrated Food Projects with over 24 years of experience within Food Engineering. Over the last seven years he has carried out a variety of project management roles within the food industry. His involvement with both small and large scale projects in the UK and overseas for Tulip Foods, Flo-Mech (specialists in potato processing), PepsiCo and United Biscuits has given him an extensive knowledge of processing methods and the global equipment market.

Lee Harris has joined Integrated Food Projects from Uniq Prepared Foods where he has gained extensive knowledge and experience of sandwich manufacturing and the Marks & Spencer supplier code of practice.

efficiently, and also for the number of packing lines to be increased to meet demand.

Large areas of the factory were remodelled and re-furbished to house the washing and packing lines. The packing hall was opened up into a large new extension. A new 700t capacity conditioning store was installed in a new extension to improve handling and reduce loss through damage.

Other areas that were improved and/or extended were: finished product chills, packaging stores, production offices, plant areas and ancillary areas.

Management Contracting The works were carried out under a Management Contracting arrangement which worked well with the developing nature of the project and the requirement for intensive Value Engineering in collaboration with a committed client team.

“Project Maximus is a complex project with a number of significant challenges, and like any other large project it is vital to get the key decisions correct. Engaging Integrated Food Projects to help us deliver Maximus has proven to have been the best decision we made. From initial project planning through to project execution Integrated Food Projects have been professional and extremely competent,” points out Darren Mortimer, operations director of Solanum.

He adds: “Where Integrated Food Projects have set themselves apart is in the manner with which their people have integrated themselves and the principle contractors in to our site teams. This has served to engender a culture where all challenges can

be overcome; without allowing either timescale or budget to slip.” J

“Where Integrated Food Projects have set themselves apart is in the manner with which their people have integrated themselves and the principle contractors in to our site teams. This has served to engender a culture where all challenges can be overcome; without allowing either timescale or budget to slip.”

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I DAIRY

Good Performance From Glanbia as Irish Business Returns to Profit Glanbia, the international nutritional ingredients and cheese group, has delivered strong top line revenue, profit and margin growth for the six months ended July 3rd 2010 as its Irish dairy ingredients business was restored to profit. roup profit before tax increased 58.4% to Eur60.2 million on revenue up 9.7% to Eur1.04 billion.

Revenue from Glanbia’s US Cheese and Global Nutritionals business rose 22.2% to Eur490.6 million while revenue from Dairy Ireland grew marginally to Eur542.9m.

Group operating profit increased 38.7% to Eur66.3 million helped by a strong recovery and return to profitability in Irish Dairy Ingredients, compared with a significant loss in the same period last year, and a good performance in Global Nutritionals.

At constant currency operating profit was up by 49.4%. Group operating margin increased 130 basis points to 6.4% and the constant currency operating margin was 6.9%.

highly competitive with promotional programmes expected to continue throughout the second half.

Glanbia is continuing its significant strategic cost saving programme across its Irish operations. This went to plan in the first half and is well on track to achieve targeted annualised cost savings.

Overall Agribusiness was marginally down as good demand across all farm inputs was more than offset by very competitive pricing undertaken in the first half.

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Irish Businesses Dairy Ireland had a good first half, compared with a very difficult first half in 2009.

Operating profit increased by Eur13.2 million to Eur19.1 million and the operating margin increased 240 basis points to 3.5%.

The return to profitability in Irish Dairy Ingredients after a major loss in the first six months of last year is the most significant performance issue in the first half results.

In the first half, Irish Dairy Ingredients’ performance improved in line with the recovery in global dairy markets, which

John Moloney, group managing director of Glanbia.

were severely impacted by product price falls and volatility in the first half of 2009.

Revenue grew half year-on-half year and this business unit returned to profitability as expected.

This more than offset the impact of ongoing challenges in the operating environment at Consumer Products, which had a difficult first half as the impact of the recession continues to overhang the Irish food retail market. Rising unemployment and falling house prices are a challenge to fragile consumer sentiment. Indeed, the market for Consumer Products remains

Deal Rejected Earlier in the year, a proposed Eur299.6 million acquisition of Glanbia’s Irish dairy and agri businesses by Glanbia Co-operative Society, which owns 54.8% of Glanbia, failed to gain the necessary 75% support from members of the co-op. The transaction, if approved, would have given Glanbia Co-operative Society full ownership and control of the Irish dairy and agri businesses but its shareholding in Glanbia would have been reduced to 20%.

US Cheese & Global Nutritionals Glanbia’s US Cheese & Global Nutritionals business increased operating profit by 5.8% during the first half to Eur47.5 million with constant currency operating profit up 17.1%. Operating margins decreased 150 basis points to 9.7% with constant currency

Global Dairy Markets Show Signs of Recovery Global dairy markets recovered somewhat unevenly in the first half of 2010.

Commodity prices declined in the early months, stabilised in March and improved throughout the second quarter. Markets now appear to have peaked and are expected to trend lower in the second half, according to Glanbia.

While volatility continues to be a feature of global dairy markets, the full year 2010 forecast is for pricing to be broadly in line with five year averages but in most instances below the market peak of 2008.

While weak milk supply was a dominant feature in the first half, milk production is beginning to increase in the main producing regions and is expected to continue to do so for the rest of the year and into 2011, easing supply constraints. Demand is stable, with Asian demand a key sustaining factor

globally.

Dairy farm incomes have recovered somewhat this year, although it may be sometime before farm balance sheets are fully repaired following negative returns in 2009.

While demand for Agribusiness farm inputs has improved, price competition was a significant feature of the trading environment.

Growth in performance/sports nutrition, protein fortification and ongoing mainstream bars and beverages new product development are driving strong global demand for whey. This growth is underpinned by structural market drivers such as health and wellness (increasing link between diet and exercise, weight management, active ageing), global demographic changes (increasing Asian demand) and consumer awareness (healthier and more nutritious foods).

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2010

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operating margins down 40 basis points to 10.8%.

The US Cheese business unit had a reasonable first half with good revenue growth delivered as a result of improved cheese pricing, compared with historical lows in the same period last year. Milk production was tight in the first half, following very difficult farming conditions in 2009, which placed some pricing pressure on securing milk supply. The situation has eased in recent months with increases in milk production. Overall operating profit and margins for US Cheese were lower for the first six months of 2010.

In the first half, Global Nutritionals continued to see volume growth driven by new product development of customer/marketled science-based nutritional solutions and

the expansion of performance nutrition. There is strong demand globally for sports nutrition and protein fortified products for key areas of weight management, healthy aging, infant formula and fortified bar and beverage markets. In addition, all of Glanbia’s core nutritional sectors continued to exhibit strong structural market growth trends, with the group outperforming market growth rates in key business segments.

Outlook “For the full year 2010, US Cheese & Global Nutritionals is expected to deliver reasonable year-on-year growth, underpinned in particular by the performance of Global Nutritionals. In Dairy Ireland, per-

formance will be somewhat mixed with Irish Dairy Ingredients strongly ahead compared with a loss in 2009, Consumer Products behind in the context of a very tough trading environment and Agribusiness marginally ahead of a difficult 2009,” says John Moloney, group managing director of Glanbia.

Glanbia’s international joint ventures and associates are expected to have a good full year, underpinned by a solid performance from Southwest Cheese in the US and Glanbia Cheese in the UK, and an improved operating performance at Nutricima in Nigeria.

While the global economic environment remains uncertain, Glanbia expects to achieve strong revenue, operating profit and margin growth for the full year.

Consequently, Glanbia has revised its earnings guidance upwards and is now expecting approximately 20% adjusted earnings per share growth for the full year. J

Royal FrieslandCampina Doubles Interim Profit utch dairy co-operative Royal D FrieslandCampina has doubled profit to Eur156 million, due to improved margins and vol-

good results. However, Consumer Products Europe reported a 48% drop in operating profit to Eur57m due to lagging margins on cream and ume growth, and increased revenue by 5.5% to butter products at FrieslandCampina Eur4.3 billion for the first half year of 2010, comProfessional. In order to maintain the market pared with the corresponding period last year. shares of the branded consumer products, a relaRevenue growth was driven by higher sales of contively large number of price promotions were necsumer products in Asia and Africa, sales of basic essary. and special ingredients to the food industry and The Cheese & Butter business posted an operalso as a consequence of higher selling prices for ating loss of Eur31 million but this was an products such as foil cheese, milk powder and improvement on the Eur51 million deficit in first caseinates (milk proteins). Currency movements half of 2009. had on balance a positive effect on revenue to the Cees ’t Hart, chief executive of Royal The guaranteed price for milk supplied by the FrieslandCampina. amount of Eur51 million. member farmers of FrieslandCampina rose by The group’s Ingredients business managed to convert an operat- 16% to Eur30.25 per 100 kilograms of milk. The pro forma milk ing loss of Eur45m in the first half of 2009 to a positive contribu- price (guaranteed price plus performance payment) amounts to tion of Eur43 million in the first half of 2010. This was due mainly Eur31.58 per 100 kilograms of milk. to the positive results achieved by special ingredients and the higher “The economic recovery in Europe lags behind developments in selling prices of standard products that resulted in improved mar- other areas in the world. In addition, there is fierce competition gins. and consumers continue to be cautious with their spending,” says The Consumer Products International Division delivered very Cees ’t Hart, chief executive of Royal FrieslandCampina. J

First Half Improvement But Bongrain Still Underperforming lthough Bongrain has significantly A improved profitability and sales in the first half of 2010 compared to the corresponding period in 2009, the results are still below the French and international dairy group’s historic level of performance. Bongrain reported an increase in net profit from Eur13.2 million to Eur37.3 million in the first half of 2010 on net sales up by 4.1% on a like-for-like basis to Eur1.66 billion, thanks to the improvement in world prices for industrial products and despite the fact that the strong pressure on selling prices for the group’s major brands limited the positive impact of their sustained volume sales. However, Bongrain has warned that the improvement will not be maintained in the second half.

Current operating profit was Eur65.1 million against Eur45.9 24

million in the first half of 2009 with the increase being chiefly attributable to improved competitiveness as well as the enhanced performance of industrial products. The positive trend in Bongrain’s results was amplified by the reduction in non-recurring expense and by the fall in interest charges reflecting tight control of net borrowings.

The results are compared with a weak first half of 2009. Indeed, Bongrain has cautioned that for 2010 as a whole, it will not be possible to maintain the level of improvement in performance achieved during the first half of 2010. The outlook for the world markets in industrial products remains uncertain and a 10% increase in the price of milk, which has been agreed within the French dairy industry, will necessitate an increase Bongrain’s selling prices. J

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2010

I DAIRY

Profitable Growth from Cheese With Ingredient Solutions rofit is unusual in today’s tough P trading conditions and growth even more of a rarity, yet Ingredient Solutions has managed to meet these twin challenges. The leading producer of innovative cheese ingredients for the food industry, Ingredient Solutions first opened its doors for business in 2000, when founder and managing director Ian Galletly moved to Ireland from the UK, where he had been working in the industry for 14 years. In barely a decade the company has achieved annual turnover approaching Eur20 million by successfully satisfying the increasingly diverse tastes and of today’s ever more discerning consumer.

Partnership Approach The company works in partnership with cheese suppliers, food manufacturers and food service suppliers to deliver winning solutions to market based problems. They focus on buying commodity and speciality cheeses and with a substantial investment at their Boherbue facility are able to provide a fully integrated service covering all aspects of cheese from consultancy, product design and prototype development, through to full service production. With BRC accreditation they are a one-stop shop to all companies looking for a quality supplier of grated cheese, shredded cheese and cheese retail products, whilst also providing a contract packing service for some of the largest dairies in Ireland.

Ingredient Solutions supply large food manufacturers of ready meals and snack foods and food service companies throughout Ireland, the UK and Europe with grated cheese, block cheddar and mozzarella.

The company also produces dice shavings and crumbed cheeses, such a diced mozzarella, parmesan shavings and blue cheese

crumb. In addition, Ingredient Solutions offer bespoke blends made to individual customer specifications. These are produced in conjunction with the company’s new product development team who are responsible for assisting in the launch of over 120 new food products each year.

Healthy Range Recently Ingredient Solutions have been working with a number of clients to develop a healthy range of cheese products which are reduced in salt and sodium and reduced fat in grated format, for the food service sector (pubs and restaurants) and have recently launched a low fat blend for use in a ready meal in Sainsbury’s ‘Taste the Difference’ range.

This diverse array of cheese products are provided at competitive prices and used for applications across the whole spectrum of the global food processing and production industries, and are manufactured in a facility that maintains the highest quality and hygiene standards set by Ireland and the UK for producing shredded and grated cheese.

Ingredient Solutions’ customer service department, technical support and NPD team work with customers and suppliers alike in order to make profitable products from great ideas. In fact, the company is committed to achieving and exceeding the needs of its customers by meeting the demands of today's fast changing cheese marketplace.

Major UK Contracts Won Ingredient Solutions has also recently won major contracts in the UK, thanks to the ability to not only meet but exceed customers’ requirements when compared to their existing suppliers.

The company expects to continue to attract new work by providing this excellent quality of product and service.

Ingredient Solutions is genuinely optimistic concerning the future and although the current market is tough, the company has the advantage of flexible production, innovative products, and an excellent field sales team.

Currently serving around 100 discerning customers, Ingredient Solutions has targeted a further 200 companies in Ireland, the UK and mainland Europe that it believes it could provide excellent products and customer service for, and its sales team is working closely with these companies at this time.

Naturally, Ingredient Solutions also continues to work hand-in-hand with its existing customers, with its R&D team maintaining close links to ensure that the company is at the forefront of any new projects that may come online.

Having grown from zero to nearly Eur20 million turnover in the last 10 years, Ingredient Solutions would be very disappointed if it were unable to at least double its current turnover in the next five years.

As Ian Galletly concludes: “Our informal target is a turnover of Eur36 million per annum: however, with the team that I have behind me, I am confident of achieving this and possibly more.”

For further information, telephone 00353 297 6981. Alternatively, visit the website at www.ingredientsolutions.net. J

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2010

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Preactor + RiteTIME = SFDC + APS in Real Time UK customers are among the first to benefit from seamless integration of class leading solutions from Preactor International and riteSOFT, a division of RTE. reactor International has announced P the successful integration of the innovative riteTIME Touchscreen Shop Floor Data Collection (SFDC) system with its own family of Advanced Planning and Scheduling (APS) solutions.

Already proven on the iPad, iPhone and iPod Touch, riteTIME from riteSOFT tracks employee’s time in real time as they work on resources and then reports this time and associated quantities back to Preactor allowing immediate updating of the live production plan.

RiteTIME System The riteTIME system is a self contained production data tracking system and can run independently of other systems or in conjunction with ERP, MRP, Time & Attendance or other systems. The power and simplicity of riteTIME first caught the attention of Greg Quinn, chief executive of Quinn & Associates, the North American Network Partner for Preactor. Having quickly recognised the considerable potential of a Preactor/riteTIME link, developers from both companies worked closely to develop the seamless integration between the two leading best-of-breed solutions.

Bruce Hagberg, president of RTE, comments on the integration and the huge potential it offers. “We have increasingly seen iPhones being used as SFDC devices in a growing number of industries and the huge interest in the iPad will no doubt accelerate this. RiteTIME is already up and running on these devices and its powerful, intuitive nature is perfectly complemented

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by the Preactor family of planning and scheduling solutions. Existing and new users of Preactor alike can now gain the most up to date and accurate information direct from where the plan is being fulfilled on the shop floor. They can then use this to update the plan in real time to provide continually up-to-date visibility of what is happening and where across the entire production area.”

Maximising Planning and Scheduling Capabilities Mike Novels, chief executive of Preactor International is equally enthusiastic. “Not only is riteTIME a well executed product in its own right, riteSOFT genuinely understands how valuable the data it allows businesses to collect can be to maximising their planning and scheduling capabilities.

RiteTIME closes the loop between the shopfloor and the production plan and when combined with Preactor, manufacturers can expect impressive and cumulative benefits that are greater than the sum of their parts.”

RiteTIME is available in the UK via riteSOFT Partner resellers found at: www.rite-soft.com.

Production Planning and Scheduling Preactor International is a world leader in production planning and scheduling software used by a wide range of businesses.

Frequently integrated with ERP, MES and Supply Chain Management solutions, Preactor’s breakthrough technology is used by more than 3000 small, medium and large multinational companies located in 67 countries.

Preactor has established partnerships with more than 400 companies located around the world to provide local expertise to support the implementation of the solution for each company. These 1000+ accredited professionals offer a key resource working closely with users to ensure each company’s unique requirements are met.

The current trends in manufacturing are towards lowering inventory levels to reduce

Mike Novels, chief executive of Preactor International.

costs yet still be able to respond to shorter lead times to satisfy customer demand.

Preactor offers a family of applications ranging from mid and long term capacity planning to detail scheduling and is translated into 30 languages. Preactor runs on industry standard hardware, operating systems and databases.

Improving Efficiency A key to SMB manufacturing and distribution workers being more efficient is to utilize technology. The right application of technology can empower workers by providing them with accurate, up-to-date information that make it easy to do things right. At riteSOFT, a great deal of emphasis has been placed on making products the easiest to use in the market today.

Built with the worker in mind, each screen is simple, functionally designed to its specific purpose, and very easy to read.

Most tasks can be completed on a single, easy-to-understand screen. The screen fonts are larger, buttons are made for fingers not just a stylus, and most screens can be controlled by simply scanning a barcode or touching a key. These features ensure that workers will be comfortable using riteSOFT products and that it will make them more productive. J

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2010

I DATA CAPTURE

Kepak Gets the Emydex Treatment mydex technology was formed over six E years ago with the aim of designing and developing data capture and production management software for the food industry based on open technologies. Emydex’s founders spotted a gap in the market place, as at that time the majority of available systems were unreliable, out-dated and tied to specific hardware suppliers.

Roll on six years and today Emydex software is in daily operational usage in over 30 plants owned by some of the largest single and multi-site food processors in Ireland and the UK, such as Dawn Meats, Dunbia the Kepak Group and O’Kane poultry.

Greater Control Kepak’s journey with Emydex began in 2007. “Previous to Emydex, we had a number of separate in-house systems that weren’t integrated, so it was difficult to gain a true real time view of production.

The Emydex platform gives us greater control of our production, better visibility of data, and a better understanding of the data that is critical to drive our business including Yields and Traceability,” says Jim O’Neill, group IT manager with the Kepak Group.

Today Emydex is running end to end in Kepak’s beef slaughter and processing plants in Clonee, Kilbeggan, Hacketstown, Athleague, Cork and Ballymahon.

Emydex’s Lamb kill lines are scheduled to go live in Kepak’s Hacketstown and Athleague plants over the next few weeks.

“We’re currently working on a project to complete our last Emydex project in Ireland, Cork Retail. We’ll also be looking at our Wakefield plant in the UK, and hope to have the implementation well advanced by year end,” says Jim O’Neill.

“What’s different about Emydex is you’re

“With Emydex we now have complete warehouse control and real time stocks down to scan level, without having to compromise on functionality.”

duction of a Work Order control process that sits over the whole production process.

“Production Work orders are generated in Emydex and issued to the floor so that operators can no longer process without an order on system – a big gain for us,” he explains. The notion of incorporating Work Order control to manage production is an optional feature of the system.

Jim O’Neill, group IT manager with the Kepak Group.

working with people who understand the demands of the food industry very well.

Sometimes end users don’t always know what they want, Emydex have the ability to visualise an idea, without knowing the final solution, and see it through to completion” Industry knowledge coupled with a flexible approach to development allows for the delivery of solutions that adapt to suit customer business processes rather than the other way around. Jim O’Neill continues: “Our previous production management system was developed in-house. For Emydex to deliver a system to Kepak that offers the same level of flexibility, whilst at the same time being a totally reliable and robust solution, is testimony to how well Emydex software has been developed and deployed.”

Unique Feature One of the unique features of the Emydex system is the Carcass management module.

This incorporates a Carcass Splitting engine used to break down and track quarters, and maintain stock in terms of derived weights.

“Carcass management gives customers the ability to maintain accurate carcass stocks from time of kill to through boning and dispatch,” Jim O’Neill points out.

Another big win for Kepak was the intro-

Warehouse Management “Emydex’s Warehouse management system is the single biggest bonus to Kepak. We are a fast moving business with a high volume of stock movements. With Emydex we now have complete warehouse control and real time stocks down to scan level, without having to compromise on functionality,” adds O’Neill. This functionality includes real time validation at point of scanning an order, where the system warns operators of any discrepancies that arise during order picking, allowing them to take corrective action.

The Kepak group IT manager concludes: “The best way to sum up Kepak’s experience with Emydex is to say that Kepak have experienced operators and supervisors who are 20 years with the company, who with 15 minutes of training are not only competently using the Emydex system every day, but more importantly openly acknowledge how essential and valuable the Emydex system is in assisting them with their day to day tasks.” J

“The Emydex platform gives us greater control of our production, better visibility of data, and a better understanding of the data that is critical to driving our business.”

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2010

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I DATA CAPTURE & TRACEABILITY

Advanced Automation and Complete Traceability From Ishida Europe has designed and installed a Ifourshida complete packing line enabling three to operators to produce prepared salads at up to 40 trays per minute, whilst automating inspection and making every pack traceable to a stored X-ray image.

Gastro Star AG produces 30 tonnes of fresh products every day, ranging from vegetables and salads to fruit, including ready to use salad mixes under the Betty Bossi and Weight Watchers brands. The company was an early adopter of automation in salad packing, and the new line is part of a wider series of measures Gastro Star has taken to increase capacity and efficiency in the face of steady demand for its products.

The new line was designed by Ishida’s Solutions Division, who installed it in November 2009 in conjunction with Itech, Ishida’s distributor in Italy and Switzerland. It produces 200g and 250g packs and includes tray denesting, multihead weighing, tray sealing, labelling, seal testing, vision system, x-ray inspection, checkweighing and packing into crates.

The Ishida design enables crates of prepared leaves, which have been cut to size and washed, to be run via an elevator above the multihead weigher, where the salad is tipped into an infeed system. The tray sealer at the heart of the line is a state-of-theart Ishida QX-1100. It handles four trays at a time, flushing them with an atmosphere of oxygen, nitrogen and carbon dioxide, and delivering a neat, economical seal with no protruding edges.

Improved Efficiency The new line has ensured that previously

Ishida Europe has designed and installed a complete packing line enabling three to four operators to produce prepared salads at up to 40 trays per minute, whilst automating inspection and making every pack traceable to a stored X-ray image.

labour intensive elements to the weighing and packing of products have become more efficient. The stainless steel contact surfaces and sophisticated vibratory system of the 10-head Ishida RS-series weigher reduce the possibility of clumping or sticking of leaves, and the need to manually rectify potential product-in-seal problems is largely eliminated by a distribution system that delivers the leaves to the tray in a neat and discrete batch via a feeder tube and dipping funnel, that gently tamps them to below the tray edge.

At the end of the line, the IPS (Ishida Packing System) pick-and-place system not only automates what used to be the most labour-intensive part of the line, but does it at high speed and with far greater flexibility by picking individual packs rather than predetermined lots or layers. The addition of a plastic cup containing product-specific additions, such as salad dressing, cheese or croutons, accounts for much of the small amount of labour involved.

The new Ishida line has been designed so that the weigher is mounted on wheels, for easy movement around the floor, and both weigher and infeed system can be effortlessly raised and lowered for full cleaning access. Together with the general Ishida policy of designing contact parts to be removeable and replaceable without tools, this means that hygiene standards can be improved while man-hours spent cleaning are reduced.

Integration The Ishida Seal Tester integrated into the line can detect a 0.75mm hole or gap in the seal at high speed. Mounted on it, and capable of using its rejection system, is an Ishida Vision System which verifies that each label is appropriate and positioned correctly, as well as relating the overprinted data to the company’s information systems in order to check that dates, weights, prices and barcodes are correct, providing extra protection for the end-customer as well as for retailers and brand reputations.

Gastro Star decided to incorporate an Xray inspection system into the line to ensure complete traceability for every pack of packaged salad. The chosen X-ray inspection system is an Ishida IX-GA 2475, which can not only detect unwanted metal, plastic, glass, stone, rubber and bone, but

can also draw attention to underfilled or damaged packs.

Monitoring System The monitoring system can record the exact gas mixture received by each modified atmosphere pack, and the temperature at which sealing took place. It also provides the company with an X-ray image associated with the pack, which can be used in order to settle any dispute about its contents.

The 30-40 packs per minute achieved with the new line is double that of the former fastest line at Gastro Star, with product giveaway as little as 1-2%, by comparison with 10%. Currently working no more than 2 shifts per day, Gastro Star calculates that the line will pay for itself within five years.

“The whole project has been very well and very professionally managed,” comments Ueli Forster, managing director of Gastro Star. “Ishida is an expert in line solutions and made the best integrated proposal. The line’s layout was convincing and service, as well as guaranteed line availability, was included. In addition, we were keen, as we lacked experience with such a line, to be able to rely on a one-stop-shop supplier.”

For further information contact Ishida Europe on Tel: 44 (0)121 607 7700, Email torsten.giese@ishidaeurope.com or visit www.ishidaeurope.com. J

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I MEAT

Leaner Tulip Adapts to Changing UK Pork Market Tulip, the UK’s largest pork producer and famous for the Danepak bacon brand, has been adapting its business to meet the tougher market environment and changing consumer demands. wned by Danish Crown, which is the largest pork producer in Europe and the biggest exporter of pork in the world, Tulip operates from more than 20 sites throughout the UK and employs around 9000 people. Its business encompasses pig production, abattoirs and fresh meat operations, as well as production plants for bacon, cooked meats and other processed foods.

Tulip provides a wide range of products from fresh pork, bacon and sausages to pies, canned and cooked meats, from meat sourced from farms in both the UK and Denmark. The company serves the retail and food service markets and its brands include Danepak, Tulip, Spam Chopped Ham & Pork (for UK market) and Plumrose.

O

Evolution Tulip has been established in the UK since 2002. The Danish company has expanded both organically and by a series of acquisitions. In 2003 it acquired Hygrade Foods and the following year Tulip became the UK’s second largest pigmeat producer when it absorbed Flagship Foods, which was the result of a merger between Roach Foods and Dalehead Foods in 1999. More recently in December 2007, George Adams and Sons was added to consolidate Tulip’s position as a market leader. The acquisition took Tulip’s UK sales close to £1.2 billion.

Cutting Costs In a UK market that has been characterised by falling consumption as a consequence of the financial crisis, Tulip has been restructuring its operations. “We immediately set to work to cut costs. We closed several facilities and consolidated production at the remaining factories, so that we have improved our competitiveness. We have managed to ensure synergies in our operations, and thereby been able to compensate for the commercial pressure on sales,” explains Carsten Jakobsen, vice chief executive of Danish Crown.

Tulip has also sharpened its customer focus and stepped up its product innovation activity while continuing to enhance production efficiency. ”The large chains have generally exerted considerable pressure on suppliers to lower prices. At the same time, thanks to strategic collaboration with the largest supermarket chains, we have developed the right products for the benefit of both parties, securing our market share in the UK,” he adds.

Innovation To meet the changing shopping habits of consumers, Tulip has launched a host of new products on the market. Product development continues to be a priority and Tulip has employed a new innovation manager who is responsible for large projects and the development of completely new product categories within the core business. For instance, the Danepak brand has now been extended into the sausages sector with the launch of Perfekt pork sausages into Tesco stores.

Pictured at the opening of Tulip’s new sausage factory are (from left): Carsten Jakobsen, vice chief executive of Danish Crown; Sir Terry Leahy, chief executive of Tesco; and Niels Mikkelsen, chairman of Danish Crown.

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Customer Focused Tulip’s new chief executive Steve Murrells, who started at the company last October, has extensive experience of the UK retail industry.

Keenly aware of what the retail chains require of their suppliers, he is helping Tulip to become even more cus-

Tulip has just opened the world’s most modern sausage factory at Bromborough near Liverpool.

tomer focused. ”The economic situation is set to throw up new challenges in the coming years, and new and targeted activities are therefore being planned on several fronts - customer focus, better product innovation in collaboration with key customers and continued streamlining of production, including investments in more efficient equipment,” says Carsten Jakobsen.

World’s Most Modern Sausage Factory In line with its strategy of investing to enhance efficiency, Tulip has just opened the world’s most modern sausage factory at Bromborough near Liverpool. The Bromborough factory was built in the mid1990s for sliced products but was closed down following the merger with George Adams & Son but has now been totally refurbished for sausage production.

The new look facility has a capacity of 1,000 tonnes a week and replaces a factory in Peckham in London which has a capacity of 550 tonnes a week. During the refurbishment an emphasis was placed on reducing energy consumption. Compared with the Peckham factory, the site at Bromborough uses 59% less water per tonne produced and 63% less electricity per tonne produced.

From Bromborough, Tulip will meet much of the demand for English sausages.

Each year, a total of 175,000 tonnes of sausages are eaten in the UK at a total value of £485 million. J

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2010

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

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

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

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

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ImageRight ensures integrity of brand colours.

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

The skills and technologies developed

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

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

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

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

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

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

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

Award-winning colours on packs and sacks.

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

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

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2010

Roberts Mart’s Smart Printing Solution Roberts Mart, one of the UK’s leading printers of paper and plastic flexible packaging, is helping food and drink companies reduce their carbon footprint after investing in a new multi-million pound state-ofthe-art printing press. The family-run business, acutely aware that food manufacturers are under pressure to minimise the environmental impact of their operations, has recently purchased an eight-colour Fischer & Krecke 14S press. This cutting edge addition to Roberts Mart's portfolio features 'smartGPS', a graphic positioning system with automatic registration which allows for quicker turnaround times than conventional presses, leading to less material waste. Other advantages include accuracy of calibration for greater consistency between print runs, better product presentation, and horizontal and vertical form fill and seal applications for both loose and pre-packed products.

For further information contact Roberts Mart on Tel +44 (0)113 202 6500 or visit www.roberts-mart.co.uk. J

Chadwicks Goes Potty For Yeo Valley Lids Leading heat seal pre-cut lids manufacturer Chadwicks has created innovative new lids for Yeo Valley’s recently launched organic ‘Pots’ range. Chadwicks produced a quality 50 micron polyester lid printed six colour UV flexo. Yeo Valley Organic has provided a unique take on the traditional yoghurt fourpack by launching ‘Pots’ in single flavour packs to reflect consumer feedback, which revealed that the least favourite flavours were always left in the fridge.

Chadwicks printed lids that

reflected Yeo Valley’s innovative new concept by using strong vibrant colours and first class production methods. The heat seal pre-cut lids matched the unique oval-shaped, fit-inhand style yoghurt pot, which together reduce the common inconvenience of a torn lid and spilled yoghurt. For further information visit www.chadwicks-lids.com, or call +44 (0)161 763 2100. J

installed Blount’s first C150 sleever in 2008 to pack single and twin formats of various soup tubs, with lock closure on the base of the sleeve. The efficient performance of the C150 quickly enabled Blount to cope with the huge surge in demand for its range of soups, sauces, clam products, and gourmet prepared foods. This led to a second Kliklok C150 order in 2009, and with continued success and expansion, Blount placed its faith in Kliklok again with an order for a third machine in June this year. The Certiwrap C150 has become one of Kliklok best selling machines. For further information contact Kliklok International on Tel +44 (0)1275 836131 or visit www.kliklok-int.com. J

Kliklok Sleeves Seafood Soup – Again Kliklok International is celebrating another order from US food producer Blount Seafood, for a third Certiwrap C150 wraparound cartoner. Kliklok

Stocklin – The Expert in Warehouse Automation he Stocklin Group of Switzerland is well T known for its high quality products within the field of automated materials

information visit www.stoecklin.com or www.stocklin.co.uk. J

handling and storage equipment.

Furthermore, the company is a leading turnkey supplier for automated high bay warehouses, with many years of experience and references in almost all industries.

Equipped with modern production lines, Stocklin develops products and total systems, which help clients to improve productivity and competitiveness. Stocklin is an ideal partner for solutions for in-house logistics.

Stocklin played a key role in the development of Partner Logistics recently completed £50 million highly automated warehouse at Wisbech, Cambridgeshire in England. Stocklin supplied 5 stacker cranes with double mast and a height of 32 meters, 2 shuttle cranes to serve the shipping and the picking area of two levels and conveyor systems with different modules and associated control system. For further FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2010

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Supply Chain Consolidation – When Less is More the UK, Nestle has traditionally operated Iinnfrom three separate distribution sites; Bardon Leicestershire; Scunthorpe in the North East and York in the North of the country.

In light of various contracts approaching review and the end of lease agreements at two of the sites, Nestle decided to take the opportunity to review its warehousing and distribution strategy in the UK, turning to Total Logistics to undertake a thorough and independent assessment of its current and future supply chain needs.

Ian Hill, head of group distribution and operations at Nestle UK, explains the background to the project: “For many reasons we had reached a point when we were faced with various options on our three-site strategy. The time was right to bring in a fresh pair of eyes to review our distribution network. With our complex mix of dry and wet goods, including water, coffee, confectionery and mix of perishable goods, we wanted to explore what options were there for us – and Total Logistics’ team was the obvious choice given our longstanding relationship with the consultancy.”

The Challenge The main task facing the Nestle team and Total Logistics’ consultants was to develop a meaningful model by which to really understand the pros and cons of every option that was available.

This already complex scenario was made even more challenging due to the diverse and expansive nature of Nestl’s product range and large number of end-markets.

While both the Bardon and Scunthorpe sites handled foodstuffs including water, confectionery, cereals and coffee, the latter also coped with the huge seasonal demands for confectionery products during periods such as Easter and Christmas. To add to the complex picture, Scunthorpe also used different technologies to service the international export market, dispatching product to Europe and further afield via deepsea routes.

Whereas Scunthorpe was characterised by high density, drive-in racking, with temperature and humidity controls, Bardon and York used automated high bay storage units that did not require such sophisticated environmental management.

Peter Roan, partner at Total Logistics, says: “This project was complex from a supply chain modelling perspective, as it not only included an analysis of in-bound and outbound flows, transport costs, road links and inventory issues, but also risk and service factors created by a twin site strategy.

“Time was also a big factor here, given the fact that we needed to make recommendations and support the implementation to ensure the client was ready and able to satisfy the crucial peak demand period of Easter. In short we had a window of just six weeks to completely review and make recommendations on Nestle’s UK distribution network strategy.”

The Approach Total Logistics set to work developing an assessment tool to look at the impact of putting different business streams into the same facility. For example, the benefit of keeping seasonal and export confectionery streams in the same facility as they have largely counter cyclical storage needs, was a major consideration.

A further element to the assessment model included an analysis of transport and warehousing costs, including inbound and outbound flows. In all, 16 different scenarios were developed, including all options based on the existing facilities and even other potential locations in the UK. The Results In the final analysis, it was decided that a twin site solution provided the greatest cost saving to Nestle, while enabling it to improve flexibility and delivery performance to supermarkets and other key retailers in the UK and further afield. Although its delivery performance is already at 99.4%, Nestle is confident that con-

centration on the Bardon site would allow the already high customer service levels to be improved.

Due to its central location and existing potential for development, it was decided that the Bardon site was the obvious choice to centralise supply chain operations. However, this decision has meant the closure of the Scunthorpe site.

Considerable investment has now gone into the Bardon site to enable it to handle the array of Nestle food and drink products – including Kit-Kats, Smarties and Nescafe. In addition to this focus, the area of risk management has been key to the team’s thinking as the site is updated and fully commissioned.

“While our recommendation to consolidate much of Nestle’s food and drink distribution under one roof has reduced the overall cost of distribution, the move has enabled the company to combine its business stream and product supply chains to create far greater flexibility,” says Peter Roan. “Nestle now has a much more robust logistics operation that will enable it to meet the growing need to deliver more frequent, lower volume drops to retailers.”

Ian Hill is delighted with the final outcome of the project. He says: “Given the tight timescale and the perishable nature of our products, there was potentially a lot at stake by migrating many of our famous brands to the Bardon site. The Total Logistics team added significantly to the process, offering strategic insights and practical support along the way.” J

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FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2010

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I THIRD PARTY LOGISTICS

Atchison Topeka Delivers Benefits of Third Party Logistics tchison Topeka, the UK A third-party logistics business that focuses solely on the storage

ranging from large industrial manufacturers to specialist gourmet chocolatiers.

and distribution of food ingredients, has secured a number of major contracts in the past few months.

Operating from expansive, purpose-built premises in Droitwich, the company has made a significant investment in providing a warehousing facility with 20,000 pallet spaces; a modern distribution fleet, comprising of over 50 vehicles including a high specification bulk tanker fleet capable of handling bulk powder and bulk liquids.

Products stored and moved include chocolate, bagged powdered ingredients, jams, fruit mixes, starches, fruit juices, concentrates, milk and whey powders and coconut products Atchison Topeka’s most recent contract win is with food ingredients company, ADM Classic. With its UK headquarters in Speke, Liverpool, ADM Classic is part of the US-based multinational food processing giant ADM, which operates over 230 processing plants in more than 60 countries across six continents.

Manufacturing products ranging from vegetable oil to milling flour to chocolate, ADM’s UK operations alone employ 1,270 people. Atchison Topeka is to distribute cocoa powder and chocolate products to approximately 20 of ADM’s customers around the UK. “ADM have a worldwide reputation for exemplary levels of food integrity and strong ethical values, so we consider working with them an endorsement of their confidence in us as custodians of a vital link in their food ingredients supply chain,” says Mike Philips, managing director of Atchison Topeka.

Increasing Demand Atchison Topeka is currently experiencing increasing demand for its services as more and more ingredients suppliers and manufacturers are realising the benefits to be gained by integrating third party logistics 38

into the traditional supply chain model.

In March, Atchison Topeka signed a three year contract with Cadbury, Britain’s favourite chocolate manufacturer, to set up a dedicated nut handling facility. The facility will further enhance levels of food safety and will fall under Atchison Topeka’s BRC accreditation.

The work entails the de-canting of nuts into bespoke IBC’s (Intermediate Bulk Containers), which will feed directly on to the Cadbury production lines seven days a week. Atchison Topeka will also control the waste management aspect of the contract which involves the bailing and recycling of packaging received.

Atchison Topeka has been providing services to another global chocolate manufacturer, Barry Callebaut, for over 14 years. Atchison Topeka’s distribution and warehousing contract with Barry Callebaut was renewed late last year.

This involves the collection of chocolate from factories both in the UK and mainland Europe and then storing the product in Atchison’s new 20,000 pallet store. Atchison Topeka is then responsible for delivering the chocolate throughout the UK to customer delivery points

Investment Atchison Topeka’s investment in technology over recent years has not only delivered a robust business platform with exceptional levels of inventory accuracy, but it has been further advanced to deliver full integration to customer systems via the Wesupply web based b2b integration tool.

Atchison Topeka has also made a major investment in renewing its entire distribution fleet. The move means that every single vehicle within the fleet is compliant to the Euro IV or Euro V standard, EU legislation introduced to help reduce vehicle emissions. The new fleet comprises a total of 50 Scania low emission compliant trucks. To complement the new traction fleet Atchison Topeka has also replaced its trailer fleet.

Taking the Biscuit Another major major food manufacturer to avail of Atchison Topeka’s third-party food logistics expertise is McVities, the UK’s leading biscuit maker and part of multinational United Biscuits.

McVities has been making biscuits across Europe for nearly two centuries and holds leading positions in the UK, Belgium, France, Ireland and the Netherlands. The new contract involves the storage and distribution of egg powder to factories in Aintree, Halifax, Manchester and Glasgow.

Organic Food Certification To keep pace with rising consumer demand for organic food, Atchison Topeka recently achieved Organic Food Federation Certification. Organic produce is traceable from 'farm to fork' (growth to consumer) and every stage of the journey has to be inspected, examined and certified. Atchison Topeka ensures full traceability and compatibility of all products, eliminating any potential contact with toxic pesticides. This guarantees the integrity of any product marketed as organic. J

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2010

I CASE STUDY

Real-time Visibility Across B2B Processes Improves Customer Service tchison Topeka needed to improve effiA ciencies in its customer order processes.

The company’s aim was to remove errors resulting from the manual entry of orders, while also achieving real time supply chain visibility.

Atchison Topeka made the decision to outsource its B2B electronic trading requirements to Wesupply, allowing connectivity to the customer base via a single platform. This enabled greater control of the customer ordering process and ensured 100% inventory record matching. Errors are now eliminated, before they impact upon performance; costs associated with the previous manual procedure have been reduced, and Atchison Topeka has significantly improved the quality of service its customers receive. The fully managed service also enables Atchison Topeka to be more efficient through the quick and easy addition of new trading partners, as and when required.

Background and Challenges Established over 20 years ago, Atchison Topeka is a leading 3PL company specialising in food ingredients. The company provides innovative logistics solutions to customers requiring the delivery of food ingredients into UK manufacturing centres.

Atchison Topeka has a strong customer base which includes some of the most recognisable names in the industry. Typical products handled include chocolate, bagged powdered ingredients, jams, fruit mixes and sugars. Bulk ingredients include liquid chocolates, sugars and milk.

With a large number of key trading partners, Atchison Topeka was experiencing problems with its existing manual order entry process. The time-consuming process

Atchison Topeka provides innovative logistics solutions to customers requiring the delivery of food ingredients into UK manufacturing centres.

This proven track record, along with the flexibility of the OneTime solution, were important factors in our decision making process,” remarks Darren Cronshaw. involved dealing with large quantities of paperwork and incoming fax orders, resulting in a considerable number of errors.

For a company like Atchison Topeka, punctuality is imperative if crucial customer delivery dates are to be met. The company could not afford for order processing errors to impact on its levels of customer service.

“Our existing B2B processes were hugely inefficient and the situation was worsening with each additional trading partner,” says Darren Cronshaw, operations director at Atchison Topeka. “The order processing solution in place lacked resilience to the changing demands of our customers and it was decided that a more robust and scaleable electronic trading solution was required.”

The Solution Atchison Topeka implemented OneTime™, Wesupply’s fully managed B2B electronic trading solution to rapidly integrate its business processes with those of its customers. The solution was rolled-out over a six month period to the company’s major customers, and orders, invoices and acknowledgements are now exchanged easily and efficiently with zero errors.

“We have customers linked via the OneTime solution, with varying levels of complexity, from simple order transfers to full SAP integration across multiple operating sites throughout Europe,” says Darren Cronshaw. “It is our plan to roll out the solution to our entire customer base to further improve our supply chain.”

Jerry Quinn, industry director at Wesupply comments: “Wesupply has enabled Atchison Topeka to streamline its incoming order and invoicing processes, whilst providing full visibility into the order cycle, thus reducing errors, improving stock management and increasing inventory record matching.”

“We’d been looking for a solution for some time, which would improve our visibility and that of our customers on the status of orders. Wesupply demonstrated an understanding of our requirements and provided numerous customers references.

Benefits The Wesupply solution has given Atchison Topeka the increased supply chain visibility they required and enabled them to eliminate costly order processing errors.

“The implementation of the OneTime solution has enabled efficiencies across our customer-facing supply chain which was previously unattainable,” states Darren Cronshaw. “We can now exchange realtime supply data with our customers, enabling increased efficiency and improved customer service.”

Key business benefits realised so far include: • Elimination of order processing errors • Automated stock reconciliation daily • Reduced overheads • Reduced working capital • Reduced lead times • Improved customer service.

About Wesupply Wesupply provides a fully managed and outsourced electronic business-to-business integration service, using a unique approach that maximises supply chain collaboration between independent organisations. This approach has consistently helped customers secure tangible operational cost savings along with improved customer service, since the business was founded in 1999. Companies across all industries, including retail, CPG, energy and manufacturing rely on Wesupply to manage business-critical information flows for their extended supply chain processes.

Visit Wesupply’s website at www.wesupply.com. J

“We not only needed a solution that would resolve the order entry issues we were experiencing, it also needed to be simple to use, thereby allowing us to focus on our core business without worrying about IT.”

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I COOK & CHILL

Latest Technology From Lyco anufacturers of ready meals are findM ing tremendous advantage by teaming the Lyco Clean Flow with the latest in cooling technology, ‘Easy Flow’. Easy Flow cools your product rapidly ensuring the product passes through the micro danger zone in a matter of seconds. This unique modular design can cool product from 95 C to as low as 5 C. The small footprint and open design reduces capital requirements. Other benefits include: decreased hygiene/maintenance time,

increases in throughput/yield and is a master of short and long shape pastas, rice, vegetables and beans.

There is no match for this innovative system.

The equipment is a continuous process, promoting Lean Manufacture. It offers ultra high cleanability to meet the highest of standards required by all major retailers and food service providers with multiple installations across Europe.

The philosophy of the equipment is simple – high reliability, exceptional design and machines built to match customer requirements ensuring the highest product quality and yield. The latest ‘Lean Clean Flow’ system focuses on quick changeovers meeting ever complex production schedules whilst delivering a quality of product that all customers demand. When combined with state-of-the art Easy Flow cooling system it offers optimal performance. Utlising the latest technology from Lyco you

have: • Changeovers in minutes • Improved yield from 5-15% • Higher throughput / volume • Improved shelf life - With the Easy Flow cooler, product passes through the micro danger zone in seconds. J

Vortex Cook, Quench & Chill Systems 2 Food Systems offers market leading D Vortex cook, quench & chill systems – the Vortex Mono and the Vortex 2.

The Vortex Mono is a single frame cook, quench & chill system for pasta, rice, vegetables and fish, delivering output levels of up to 1800 kg per hour.

The system is ideal for companies that are currently manually cooking products and require an automated process to increase output and quality. Mounted on a single frame the Mono is easily integrated in to existing production facilities, and will increase product throughput by automating the cooking process and deliver a consistent quality every cycle.

The Vortex 2 is a dual frame cook, quench & chill system for pasta, rice, vegetables and fish, delivering output levels of up to 2400 kg per hour. The Vortex 2 was developed for companies cooking high volumes of products, and which require a system that will deliver outstanding per-

formance, control and quality.

Vortex 2 consists of a series of baskets arranged in line with a high/low risk divide. With a huge range of options available, the system can be tailored to suit your exact customer requirements and meets the strict demands of the UK supermarkets.

D2 Food Systems has over 25 years experience in the food industry and has become one of the most established and

respected suppliers in the market place.

The company has two main areas to its business, the first being the manufacture of aluminium foil trays from a state of the art facility in North Wales combined with the UK manufacturing of top web films for tray sealing.

The second is the supply of food packaging and processing machinery from its Hertfordshire based head office. The machinery offered includes tray sealing equipment and associated ancillary machinery, pasta processing and manufacturing machinery, the Vortex cook, quench & chill systems and inline automated sleeving machinery.

Privately owned the company has strong relationships with key European manufacturers and is a co-owner of Tecna in Italy which manufactures the pasta machinery range.

For further information contact D2 Food Systems on Tel +44 (0)1582 622111 or visit www.d2foodsystems.com. J

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Mettler Toledo’s Free Ondemand Webinars Mettler Toledo, leading supplier of quality weighing and measuring solutions, is giving you the freedom and flexibility to access a library of relevant industry information and expertise - at your own convenience. This ever-increasing collection focuses on the use of checkweighing, metal detection and x-ray inspection within the food industry. Mettler Toledo’s ‘on-demand’ webinars give you the opportunity to keep up-todate with industry trends and standards, as well as obtain specific information about our products and solutions. There are currently 10 informative webinars available for you to watch free of charge and at your own convenience, including: • X-ray – More than just Contamination Detection; • High Performance Checkweighing for Maximum OEE; • Effective Checkweighing for Challenging Times.

To find out more, or to view a webinar, visit www.mt.com /uk-pi-ondemand. J

Updated Grundfos Selection Tool Now Available on DVD Being able to make the ideal pump choice to suit the needs for your specific requirements has just been made easier by the release of the latest tool from Grundfos - WinCAPS 2010 - a very comprehensive UK specific DVD selection tool. The new WinCAPS DVD contains an extensive catalogue of UK specific Grundfos products with a pump catalogue to help you select the most suitable pump for your application.

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This newly updated disc is ideal for anyone who needs to specify pumps for a huge range of different applications including: HVAC, water and sewage, industrial and process applications. WinCAPS also gives you access to a comprehensive pump replacement guide and the ability to produce detailed quotation texts; including curves, drawings, wiring diagrams etc.

This tool is not just for choosing new pump options but will also help you select a replacement model that is both more technologically advanced as well as being more energy efficient. This replacement option covers both Grundfos and non-Grundfos pumps.

Take a moment out to sign-up for your DVD today by logging onto www.grundfos.co.uk and follow the online instructions. J

Free Checkweighing Guide Now Available Mettler Toledo Garvens has published the world’s most comprehensive guide to improving quality using checkweighing. The leading checkweighing specialist has produced a fascinating 70 page document which details how to choose, install and manage a checkweighing system. The free guide clearly outlines how an effective programme can provide protection against product failure and recalls as well as ensure compliance with applicable legislation and regulations.

It also demonstrates how implementation of a checkweighing system can save money in production processes.

Plus, you will discover how to increase product quality, protect brand integrity and increase overall equipment effectiveness (OEE). The guide

has been written with major customer’s cooperation and is based on over 50 years of active experience in the field of checkweighing. To order your copy visit www.mt.com/cwguide or call +44 (0)116 234 5005. J

guesswork. For more information and a chance to secure a free automation audit visit the CenFRA website www.cenfra .co.uk or telephone 01 302765680. J

I MATERIALS HANDLING

I ROBOTICS & AUTOMATION CenFRA Helps Vale of Mowbray Get Bigger Slice of the Pie Europe's leading centre of robotic and automation excellence, CenFRA, has saved thousands of pounds for one of Britain's favourite pork pie manufacturers by carrying out in-depth analysis on a planned expansion project using bespoke discrete event simulation. The Vale of Mowbray identified that it would need new equipment and a site extension to keep up with demand but was unsure how these changes would be integrated with existing production.

The Vale of Mowbray approached CenFRA to carry out an assessment of its current factory processes and look into its proposed plans. CenFRA created an interactive 3D computer model of the proposed factory layout, which included technical details on the existing production equipment to evaluate and quantify, at very little cost, the benefits and implications of integrating new equipment on a 'virtual scale' without creating any disruption to current manufacturing operations or the need for complex spread sheets and speculative

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2010

Tilt-down Portable Bulk Conveyor Fits Tight Spaces Bulk solids handling specialists, Flexicon (Europe) has introduced a new Bulk Conveyor with Tilt-down Portable Base to fit through tight spaces and provide easy access for removal of the flexible screw. The reduced footprint enables the caster-mounted frame to maneuver through narrow aisles and around corners. With the hopper, support boom and conveyor assembly tilted down, the unit fits through standard doorways and orients the conveyor tube horizontally, allowing the flexible screw to be removed easily for thorough cleaning and inspection. Each unit is custom configured according to the discharge height, tilt-down height, discharge overhang and overall size parameters of individual applications. The hopper, which is equipped with a hinged lid, feeds a flexible screw conveyor that transports bulk ingredients ranging from sub-micron powders to large pellets. For further information contact Flexicon (Europe) on Tel +44 (0)1227 374710 or visit www.flexicon.co.uk. J

Nutritional and Health Drinks For Life Based on Dairy Components utritional drinks are often based on varN ious kinds of agglomerated and instant milk based powders that are easy to mix with water. The new Triple-A dryer from Anhydro enables multi-flexible and sustainable production of powders that are easy to dissolve, have a pleasant taste and an attractive appearance, and that are bacteriologically safe.

Modern nutritional drinks for all ages pose new challenges for manufacturers in terms of quality, consistency, flavour and convenience. The Anhydro Triple-A dryer meets the manufacturing challenges posed by a wide range of nutritional drink powders ranging from infant formula to adult health drinks and dietary supplements for the elderly.

Infant Formula

Infant formula is made from cow’s milk whose composition is adapted to get it as close as possible to human breast milk. It is also normally tailored to the nutritional needs of children of different ages.

The first stage is to remove the milk fat and add a combination of vegetable fats to give the milk a similar composition to that of breast milk. The carbohydrate profile is then balanced by adding sugars (lactose) including galacto-oligosaccharides and fructo-oligosaccharides.

Beta-lactoglobolins found in the whey protein fraction in cow’s milk are much higher in WPC than in human breast milk, and are difficult for babies to digest. This means that beta-lactoglobolin content in infant formula needs to be reduced. New processes are now available enabling cost-effective removal of beta-lactoglogolins from the whey prior to onward processing.

Nutritional Drink Products For Adults

Other nutritional and health drinks Bottom Triple A dryer with integrated and external fluid address the needs of older infants and bed. children as they develop and learn.

As children get older they start building up their muscles by playing sports and important for them to have a consistent training. There are many new products on bulk density so that a spoon of powder the market that help to muscle training always weighs the same, that the bacterioand, in particular, to help restitution after logical quality is in order, and that the training and thus make it possible to devel- powder itself has an attractive appearance. op muscles more quickly.

These functional products contain milk Anhydro Triple-A Dryer proteins and especially whey proteins. The The components used in modern powdered beta-lactoglobolins removed from whey nutritional drinks can be a challenge for protein used for production of infant for- manufacturing equipment suppliers as mula are an important component when many of them are more sensitive to heat enriching nutritional drinks for body treatment and, in particular, drying. This is builders/muscle training. why Anhydro developed the Triple-A Specially designed nutritional products multi-stage drying plant, a sophisticated also have a prophylactic application for multi-flexible plant that enables processing those who are ill and to speed the recovery of many different products on the same of patients who have recently undergone an plant.

The Triple-A dryer is particularly operation. These products are often based on a mix of various milk proteins and designed for flexible agglomeration of sticky powders making it suitable for prohydrolysed milk proteins.

Other nutritional drinks cater for the cessing of a wide range of different instant elderly who often find it difficult to make powders. The new Triple-A sustainable sure they get enough calories and to digest solution concept has already documented the food they need to live healthily. These savings of between 15 and 30% of the enerproducts are also based on hydrolysed milk gy cost per kg of final powder.

Dehumidification is also becoming and whey proteins together with other increasingly widespread in certain parts of high-calorie components. the world as a means of improving the drying process, reducing operating costs and Consumer Appeal The content of nutritional drink products enabling consistent, year-round operation. is not all that is important, however powder The entire drying process including mixproducts for consumers looking for a diet ing, heat treatment, evaporation, and drysupplement in the form of nutritional ing is based on the new Anhydro sustaindrinks must be easy to dissolve. This means able solution concept that combines performaking sure they have the right dispersibili- mance and profitability with lower energy ty and wettability. One way of testing this consumption and a reduced environmental is to use the baby bottle test. It is also footprint. J

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I UK BEVERAGES

New £20 Million Soft Drinks Factory Open For Business New soft drinks producer Cawingredients is now operating from a £20 million state-of-the-art factory in north Yorkshire, marking a return to the industry for well respected beverages entrepreneur Andrew Cawthray.

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ocated on a 17 acre site at Leeming Bar, the new 10,400 sq m factory incorporates the latest process, production and storage technology and has been designed to allow significant further expansion as customer demand increases.

Cawingredients has been established by Andrew Cawthray, a veteran of the British soft drinks industry. Having commenced own label carbonated soft drinks production in February, Cawingredients is now competing with the other major players in this market including Cott, Princes and Silver Spring.

The new production line, from discharge hoppers for the closures and preforms through to fully wrapped pallets, has been supplied by Krones under a turnkey contract.

Environmental considerations and energy efficiency were high on the agenda when the new factory was being developed. “We are blowing bottles with two thirds less energy (than standard soft drinks factories), using a compressor that is the first of its kind in the world,” states Andrew Cawthray.

The new Krones automated filling system is also achieving high performance levels. “We were really impressed with the new Krones electronic valve,” he remarks. “Within a few days, performance figures of 90+% efficiency were being achieved, an experience we had not known before.” The filler can produce 300,000 two-litre bottles in a 12-hour shift involving one flavour change. Indeed, the new Krones line is so efficient that it can be operated by three operatives.

The main internal power is supplied by an energy efficient Byworth Boiler and the new plant has the capability for rainwater and wastewater recycling.

and Tesco in establishing his business, which grew steadily to become the largest privatelyowned manufacturer of retailer brand carbonated soft drinks in the UK. The building programme, which commenced with the first plant, became virtually continuous as new capacity was added to cope with the constant rise in demand for Macaw Soft Drinks’ products. From the 27 people employed originally the workforce had grown more than tenfold by 2005.

Soft Drinks Entrepreneur Andrew Cawthray has been involved in the soft drinks industry most of his working life having started in the family business, Barraclough Soft Drinks. Following the sale of this company to Princes, Andrew Cawthray decided to establish his own soft drinks business using £160,000 from remortgaging his house. He set up Macaw Soft Drinks on a green field site near Nelson in Lancashire in 1990.

He had support from retailers Morrisons

September 2004, Macaw had achieved profits of £5.3 million on turnover of £55 million.

As the majority shareholder with a 60% stake, Andrew Cathray’s share of the deal was £45 million.

The business acquired by Cott was well invested with in the region of £70 million having been spent in developing the production and warehousing facilities since 1990.

From a 34,000 sq ft factory, incorporating one carbonates production line, the manufacturing site had grown to cover a total of

£76 Million Deal In August 2005, Macaw Soft Drinks was sold to Canada-based Cott Beverages, the world’s largest retailer brand soft drink supplier for £75.7 million. In its financial year to

350,000 sq ft.

By 2005, Macaw was operating four carbonated soft drinks lines, which had the capacity to produce up to 150,000 litres of finished drink every hour. In 2002, Macaw had also diversified into non-carbonated soft drinks by investing £11 million in a new factory for the production of still ready to serve preservative-free products.

The acquisition significantly enhanced Cott’s UK business by providing scale and efficiency to continue its expansion strategy, while also opening up additional growth opportunities. Cott first entered the UK soft drinks market in 1994 with the acquisition of assets from Ben Shaw (Pontefract), followed by the purchase of Hero Drinks Group (UK) in 1997.

Blueprint For Success In his latest venture, Andrew Cawthray is joined by John Board, the production director at Macaw, and his son-in-law, Richard Harrison who has invested in Cawingredients and is commercial director. The management team obviously hopes to emulate the success of Macaw.

This was based on Macaw’s ability to interpret its customers’ needs across the full market spectrum, whether for value and economy ranges at the low end or to high juice content products at the top of the market. A key aspect of its development strategy within the highly competitive UK soft drinks market was to become the preferred supplier for product development as well as providing value for its customers. Consequently, Macaw’s product development team worked closely with customers.

Macaw had a strong track record of innovation. About 80% of the company’s product portfolio was the result of its own research and development activity. The new Cawingredients factory at Leeming Bar incorporates a research and development department.

Macaw was also at the forefront of packaging development. It pioneered the taping of two large bottles together, along with multipacking four bottles (in one and two litres) and was constantly seeking new ways to improve the way products are delivered to the consumer. J

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2010

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Yorkshireman2 Boilers are Reducing Carbon Footprint in the Food and Drink Industry yworth’s Yorkshireman2 steam boiler B is now well established at the forefront of boiler efficiency. The food and drink

man2 boilers installed have ranged from one tonne per hour output to 18 tonnes per hour, and all are saving thousands in

industry has been quick on the uptake to take advantage of the fuel savings and reduction in carbon footprint.

Byworth’s managing director Peter Baldwin says: “Of the fifty Yorkshireman2 boilers that are now installed in organisations across the UK and Ireland, well over 50% are in the food and drinks industry. To me this shows the dedication of this industry to not only reduce running costs, but also to protect the environment. We supply to all aspects of the industry from breweries, distilleries, dairies, meat processing to food packaging companies. The Yorkshire-

running costs.”

The high efficiency of the Yorkshireman2 boiler is achieved by the inclusion of X-ID fire tubes.

These tubes have internal helical ribs which through a unique boundary layer detachment–reattachment phenomena, increase the heat transfer from the tubes to the water by over 80%.

Maintenance is slightly less than plain tubes, and if an accident such as water treatment failure occurs, the tubes can be replaced in just the same way as plain tubes. X-ID is only available in a Byworth boiler in the UK and Ireland. Further information contact Byworth Boilers on Tel +44 (0)1535 665225, Email sales@byworth.co.uk or visit www.byworth.co.uk. J

Steam From Wood Pellets yworth Boilers has designed and manufactured the UK’s first B industrial steam boiler fired on wood pellets, which is a fully self contained mobile unit available for lease. Commissioned by CO2 Sense Yorkshire, as part of its Woodfuel programme, the boiler plant is enabling organisations to try out this new technology before committing to capital outlay.

The boiler is a Yorkshireman 2.0mW (3189 kg/hour), 150 psi, 3 pass steam boiler purely firing on wood pellets fed via a Proctor chain grate stoker. The mobile plant also includes storage silo for the pellets, screws for pellet feed and ash extraction, and a multicyclone grit arrestor along with normal boiler ancillaries such as hotwell feed tank, and blowdown receiver.

Peter Baldwin, Byworth’s managing director comments: “This boiler is a compact design compared with other biomass fuelled boilers, without compromising efficiency. Operation is simple and daily maintenance is minimal due to the low ash content and the consistent nature of wood pellets as a fuel. This boiler can cope with the fluctuating demands of industrial use due to variable air and fuel controls incorporated in today’s chain grate stoker technology, and also due to increased heat transfer from our unique X-ID fire tubes. Wood fuels are a sustainable and renewable source of energy and as such help towards our Carbon Reduction Commitment. Income from the forthcoming Renewable Heat Incentive will also help wood fuel to be cost effective.“ Companies and organisations interested in leasing the boiler on a ‘try before you buy’ basis should E-mail mark.gregory @co2sense.org.uk. J 46

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2010

N N E E W W S S Interim Profits Stable at Coca-Cola Hellenic Coca-Cola Hellenic, which is one of the largest bottlers of Coca-Cola products in the world and the biggest in Europe, has reported stable net profit of Eur201m for the six months ended 2nd July 2010, despite a tax charge of Eur21m related to the ‘Extraordinary Social Contribution Tax’ in Greece, imposed as part of the country’s attempts to get to grips with its debt crisis.

Volumes at 1,009m unit cases were 2% below the first half of 2009 although net sales revenue was up 1% to Eur3.30b. On a comparable basis, operating profit (EBIT) rose 3% to Eur320m.

Coca-Cola Hellenic’s operations span 28 countries, serving more than 560 million people.

The company is headquartered in Athens and listed on the Athens, New York and London stock exchanges.

“The broad geographic spread of our business enabled us to deliver a robust operating performance in the first half of the year, with the effects of increasingly challenging conditions in specific key countries being offset by improving trading performances in other markets, particularly in Eastern Europe,” comments Doros Constantinou, chief executive of Coca-Cola Hellenic. “We continue to focus successfully on identifying further efficiency improvements

Doros Constantinou, chief executive of Coca-Cola Hellenic.

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and cost savings which are expected to support future profitability. Our group-wide focus on strong cash flow generation continues to yield results, while we are increasing our investment in marketing in countries where signs of recovery are more evident.”

Nestle Waters Invests in Poland Nestle Waters Poland has opened a state-of-the-art home and office delivery water bottling factory in Rzeniszow, in the southern part of Poland, close to Krakow. Costing more than Eur5m, the new 36,000 sq m factory will produce large bottles of 18.9 litres of water.

Output from the factory will exceed 40m litres annually and 45 jobs will be created.

Nichols Outperforms UK Soft Drinks Market Nichols, the soft drinks group, has increased profit before tax by 39% to £6.0m on sales ahead

by 17.8% to £44.2m for the six months to 30th June 2010.

Whilst the total soft drinks market has grown by 5.1% in value terms, sales in Nichols’ UK soft drinks business grew by 19.3% in the first half year as the company’s carbonated and stills sales significantly outperformed the market in each category.

Growth has been driven by further distribution gains and continued strong growth of the Vimto brand along with the successful launch of ‘Cherry Vimto’ in January 2010. Sales of Cherry are currently running at 9.1% of total ‘Vimto Original’ sales, the majority of

S S O O F F T T

D D R R II N N K K S S

which is incremental business.

“We have continued to increase our market share and have again significantly outperformed the sector,” says John Nichols, non-executive chairman of Nichols. “The momentum we have built up over the past few years has certainly continued and we anticipate profits at the year end will be significantly ahead of last year.”

“This strategic partnership is yet another step forward in keeping with our international expansion policy,” points out Thomas Hinderer, president and chief executive of the Eckes-Granini Group. “The Czech Republic and Slovakia are attractive European markets which offer additional potential for the granini and YO brands, both of which are already familiar to consumers in the region.”

Refresco Opens New Canning Line in Spain Refresco Iberia has installed a new line for cans at its production plant in Marcilla, in the north of Spain. The canning line is producing carbonated soft drinks and still drinks, ranging from fruit and sports drinks to ice teas in 33cl cans.

The installation marks an important extension of Refresco Iberia’s product-portfolio, which until now consisted of carton and PET. Cans will account for about 5% of Refresco Iberia’s volume production this year but is expected to increase to 15% next year and to then reach 30%, in line with the Refresco Iberia’s objective to achieve a better diversification in formats between carton, PET and cans.

Refreso Iberia is part of Netherlands-based Refresco, which is one of the largest producers of fruit juices and soft drinks in Europe. The group had a turnover of Eur1.14b in 2009 and employed about 2,300 people.

Further International Expansion By EckesGranini Group Germany-based Eckes-Granini Group, one of the leading branded fruit juice producers in Europe, and KMV (Karlovarske Mineralni Vody), the leading bottled water supplier in the Czech market, have formed a strategic partnership. KMV has become the exclusive marketer of EckesGranini Group’s granini and YO brands in the Czech Republic and Slovakia.

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2010

Danone Strengthens Probiotic Business Danone has signed exclusive 10 years licence agreements with Probi, providing the French food and beverage giant with exclusive rights to use the Swedish probiotic research company’s Lp299 technology in probiotic fruit drinks and fruit juices for gut health outside North America. Danone is also acquiring a 51% stake in the ProViva probiotic digestive health brand from Swedish dairy company Skanemejerier.

ProViva was the world’s first probiotic fruit drink for digestive health and remains the brand leader. Danone’s Activia yoghurt is the biggest digestive health yogurt brand in the world.

“Danone is one of the most successful healthy food companies in the world and is better placed than anyone else to replicate the success of ProViva in Sweden in other parts of the world,” says Micheal Oredsson, chief executive of Probi. Danone’s current interest in developing probiotic fruit drinks and fruit juices follows its recent global joint venture with global fruit producer Chiquita.

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I REFRIGERATION Starfrost Spiral’s Fast Turnaround Proves Deal Winner Equipment specialist Starfrost recently helped one food manufacturer to secure a major contract with

ing European fresh pasta producer, Giovanni Rana, to support distribution of its fresh pasta products to a major Irish retailer, with Oakland International managing all aspects of transportation, storage, product and case labelling, prior to onward distribution throughout Southern Ireland. “Having created a bespoke transportation, storage and distribution solution to fit Giovanni Rana's requirements, we now manage the transportation of fresh pasta products from their production sites in Verona Italy and Nivelle in Belgium, storing, picking and undertaking product flash stickering and case label changes, before transporting direct to the retailer's distribution facility,” explains Oakland Ireland general manager, Richard Hill. J

sports nutrition, Syral offers Meripro, a highly digestible soluble wheat protein.

Meripro is convenient for formulating tasty satiating food as it is low viscous and tastes neutral. Rich in glutamine, it enhances muscle recovery and development.

Syral offers its expertise in carbohydrate formulation. Its extensive range of maltodextrins and dried glucoses meets the specific requirements of infant and clinical nutrition. On the other hand, Maltilite maltitol syrups and powders enable the formulation of sugar-free foodstuffs with reduced calorie content and preserved taste and texture. Maltilite is also toothfriendly.

I APPOINTMENT Starfrost's Helix Spiral system in operation on the new chilled quiche line at Riverside Bakery.

a leading UK supermarket chain by supplying a new chilling system in just 12 weeks. Riverside Bakery in Nottingham concentrates on the making and baking of quiches, as well as chilled savoury snacks and party foods. Earlier this year the firm was looking to secure a major contract for a brand new quiche range from one of the main supermarket giants. Riverside Bakery needed to assure the customer that the new product line would be up and running within a short timescale.

Riverside Bakery chose UK freezing and chilling equipment specialist Starfrost to supply a spiral chiller for the new quiche line. Starfrost’s Helix Spiral system provided a highly flexible, technologically advanced solution. The system is capable of chilling over 4,000kg/hr of baked quiche product and is currently working to full capacity. J

Oakland International Extends IT Team Multi temperature supply chain and logistics specialist, Oakland International, has appointed Hussam Hossien to the post of IT systems support analyst, a significant addition to the firm's ongoing development of its IT infrastructure, and a move designed to benefit Oakland customers both in Ireland and the UK. Having previously worked for Serco and within the IT service industry, Hussam Hosseien's experience in Microsoft application and PC support will assist Oakland's active streamlining of the firm's IT infrastructure and functionality, both at their Ireland depot in Ashbourne, Co. Meath and at their UK offices. J

I STORAGE & TRANSPORT Giovanni Rana Selects Oakland International For Irish Distribution Oakland International has been chosen by lead-

Hussam Hossien, Oakland's newly appointed IT systems support analyst.

I FOOD INGREDIENTS

Oakland International Ireland's general manager Richard Hill.

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I ENVIRONMENT Crowcon’s LaserMethane Detector Helps Tesco Monitor Methane Emissions from Cows Crowcon’s portable LaserMethane Detector is helping Tesco to monitor burps from cows on its dairy farms. Cow burps are a major source of methane emissions globally. The research, which is being conducted at the Tesco Dairy Centre of Excellence, in partnership with the University of Liverpool’s School of Veterinary Science, is part of an ongoing project by Tesco to measure the amount of methane released by cows on different farms under different management and feeding regimes. The research is part of a larger, ongoing project to help Tesco’s dairy farmers reduce their environmental impact. The LaserMethane Detector is a hand held device which is held about three metres away from a cow and aimed at its mouth for five minutes, recording the amount of methane emitted. Crowcon (www.crowcon.com), a subsidiary of Halma (www.halma.com), is a world leader in portable and fixed gas detection instruments. J

Syral at the HIE – Stand 9P48 Syral widens its range and will illustrate it at the HIE with a tasting of functional foods prototypes. Visitors will be updated on the regulatory side of the prebiotic benefits of Actilight Fructo-oligosaccharides on gut health. Actilight fibre promotes taste and health; it can be used to enhance satiety and maintain intestinal balance.

For protein enrichment of food and beverages aimed at weight management and

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2010