Food and Drink Business Europe

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February 2013

Arla Foods invests to improve profitability

Food & Drink Business Website:

www.fdbusiness.com

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C o n t e n t s

- 2 M ERGERS & A CQUISITIONS

- 31 P OTATO P ROCESSING

Coverage of British and international deals.

New head for Lamb Weston.

- 5 C OVER S TORY

- 47 D EVELOPMENT S TRATEGY

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Arla Foods invests to improve profitability.

Gavin Darby, CEO, Premier Foods.

Danone plans to regain competitive edge in Europe.

P AGE 23

Giles Turrell, CEO, Weetabix.

R EGULARS

- 9 D AIRY I NGREDIENTS

Processing & Manufacturing . . . 10, 20, 22, 24, 28, 32, 44

Meadow Foods to expand Peterborough site.

PAGE 31 Energy & Environment . . . . . . . . . . . . . . . 16

- 13 D AIRY P ROCESSING

PAGE 2

Greg Schlafer, President, Lamb Weston.

Bottling & Packaging. . . . . . . . . . . . . . 17-19

Gadi Lesin, CEO, Strauss Group.

Glanbia Ingredients Ireland has strong platform for growth.

Quality & Safety . . . . . . . . . . . . . . . . . 35-42 Improving equipment performance with food grade lubricants . . . . 35 Traceability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37-42

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- 21-25 C EREALS

Materials & Ingredients . . . . . . . . . . . . . . 48

Franck Riboud, CEO, Danone.

£1.5 billion UK breakfast cereals market becoming soggy.

Managing Director: Colin Murphy Editor: Mike Rohan Sales Director: Ronan McGlade Advertising: Susan Doyle and Sylvia McCarthy

Bright future for Weetabix.

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Peder Tuborgh, CEO, Arla Foods.

- 25 & 26 M EAT P ROCESSING

Website: www.fdbusiness.com

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!

Dalehead Foods opens ‘world class' facility.

Ragus opens new specialist sugar factory.

Production Manager: Susan Doyle

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

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Cranswick continues to bring home the bacon.

- 29 S WEETENERS

. Senior Sales Executive: Paul Lees

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Henrik Andersen, CEO, Arla Foods Ingredients.

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M E E R R G G E E R R S S M

& &

A C C Q Q U U II S S II T T II O O N N S S A

Premier Foods Completes £93 Million Disposal Premier Foods has completed the sale of its sweet pickles and table sauces business to Mizkan of Japan for a cash consideration of £92.5 million. The disposal of the sweet pickles and table sauces business includes Branston sweet pickle, ketchup, relish, salad cream and mayonnaise, together with the company's Bury St Edmunds factory in Suffolk.

For the financial year ended 31 December 2011, sales of the sweet pickles and table sauces business were £66.0 million, of which 54% were branded sales.

EBITDA for the year ended 31 December 2011 was £11.7 million and trading profit was £8.5 million Mizkan is one of the leading vinegar manufacturers in the world with operations in Japan, the US, the UK and other Asian countries. It has a stable of wellknown international brands under the ‘mizkan’ umbrella brand and is a leader in the liquid condiment category.

Gavin Darby, chief executive of Premier Foods.

SABMiller Expands Chinese Brewery Business SABMiller, through its China Resources Snow Breweries joint venture with China Resources Enterprise, is acquiring Kingway Brewery for a total cash consideration of RMB5.38 billion ($864 million). The Kingway Brewery business comprises seven breweries, four of which are in one of China’s fastest growing and most affluent regions, Guangdong province, with breweries also in the 2

In Thailand it recently established a collaboration agreement with the leading brewery group, Singha Corporation.

Strauss Group Continues to Expand in the CIS Region

growing Sichuan and Shaanxi provinces and Tianjin municipality. Total annual production capacity of King-way is 14.5 million hectolitres. In 2011, the business sold 9.3 million hectolitres of beer.

The acquisition is highly complementary with CR Snow’s existing footprint and will reinforce its production base, sales infrastructure and market position.

Strauss Coffee, part of Israelbased Strauss Group, has acquired a further 49% holding in Le Café and Instanta for $13.4 million, to complete the acquisition of 100% of the shares of these companies, which are active in Russia.

The transaction will be financed by Strauss Coffee's own resources and is subject to approval by the Russian antitrust authority.

Carlsberg Group Forms New Joint Venture in Myanmar Carlsberg Group has signed a strategic partnership agreement with a local privatelyowned leading beverage company, Myanmar Golden Star (MGS) Breweries, to brew and market Carlsberg beers in Myanmar. The new joint venture – Myanmar Carlsberg Co – plans to set up a new greenfield brewery and distribute Carlsberg beers in the local market. The joint venture is 51% owned by Carlsberg.

Indochina is an important growth region for Carlsberg in Asia. The Danish brewer enjoys leading positions in Laos and Cambodia and holds a strong presence in Vietnam.

Gadi Lesin, president and chief executive of the Strauss Group.

Gadi Lesin, president and chief executive of the Strauss Group, says: “Strauss Coffee continues to enhance its operational footprint in the CIS region. Completion of the acquisition of the shares of Le Café and Instanta in Russia is another step in our continuing growth in the region, which is considered the second largest instant coffee market in the world.”

Strauss Coffee is one of the five companies operating within the Strauss Group.

Strauss Coffee is active in CEE, Brazil and Israel and is considered the world's fifth largest coffee company in terms of green coffee purchases and one of the fastest growing coffee companies in the past five years. The Strauss Group is Israel’s second largest food and beverage company.

FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2013

Barry Callebaut Strengthens its Presence in Scandinavia Barry Callebaut is strengthening its presence in Scandinavia by acquiring ASM Foods in Sweden from Carletti of Denmark. The transaction includes a specialty factory in Mjolby, focused on the production of specialty compound chocolate, fillings and inclusions. This acquisition will add a total production capacity of 35,000 tonnes.

In addition, Barry Callebaut will take over the industrial chocolate and compound production of Carletti in Denmark including sales to third parties, and at the same time sign a long-term outsourcing agreement to supply Carletti with its requirements for liquid chocolate and compound products.

The total additional volume for Barry Callebaut consisting of the ASM Foods business and the outsourcing agreement with Carletti will be approximately 25,000 tonnes of chocolate, compound and fillings.

As part of the agreement, Barry Callebaut will sell its noncore business of frozen pastry products in Alicante, Spain, to Givesco, the holding company of Carletti and ASM Foods.

Juergen Steinemann, chief executive of Barry Callebaut, says: “With the acquisition of ASM Foods we strengthen our portfolio of higher-margin products such as specialty compound chocolate, fillings and inclusions. This transaction will put us in a leadership position in Scandinavia.”

Juergen Steinemann, chief executive of Barry Callebaut.

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COVER STORY

Arla Foods Invests to Improve Profitability During 2013, Arla Foods plans to invest over DKr2 billion (€268 million) in capacity expansion, rationalisation measures and environmental improvements across its production base, as part of a recently revised development strategy designed to adapt the dairy group’s business to the abolition of EU milk quotas in 2015.

A

rla’s capital expenditure programme for 2013 includes investment in a number of dairy expansions and new facilities in order to increase global production of its most profitable products. Arla also intends to increase efficiencies within production while also reducing its environmental impact.

The 2013 investment level is approximately 3% of expected revenue. The objective is to contribute to the increased profitability of the dairy co-operative's activities, and therefore improve long-term earnings for Arla's members.

Increasing Production and Cutting Costs “This year, the largest proportion of our investments will be devoted to expanding the production capabilities of a number of our dairies which manufacture products for export to the growth markets outside the EU, for example. Our ability to improve profitability for Arla's owners is dependent upon us increasing sales of quality products all over the world, which is why, during 2013, we are investing in new production and expanding existing facilities,” explains Povl Krogsgaard, who has responsibility for Arla's investment plan.

While almost 40% of Arla's total investment plan will be devoted to expanding the production facilities, the second-largest focus area is production rationalisation initiatives. “Arla's group strategy includes the objective to reduce our production costs by DKr2.5 billion by the end of 2015, via, for example, investing in projects to streamline production at our dairies,” says Povl Krogsgaard.

Sites to be expanded in 2013 include the Pronsfeld dairy in Germany, where Arla will invest approximately DKr232 million in initiatives to increase production of milk powder and butter. The expansion of the Taulov dairy in Denmark will be completed in 2013 with an investment in yellow cheese production of DKr215 million.

The largest single investment for Arla in 2013 will be the construction of a completely new production facility at Nr Vium in Denmark, which will manufacture highly-processed whey-based lactose products.

Peder Tuborgh, chief executive of Arla Foods.

New Lactose Facility The largest single investment for Arla in 2013 entails the construction of a completely new production facility at Nr Vium in Denmark, which will manufacture highly-processed whey-based lactose products. These ingredients will be used in products in areas including child nutrition, and will also be sold globally

by Arla's subsidiary, Arla Foods Ingredients. Responsible for the production and sale of whey protein and lactose- and milkbased ingredients to the food industry, Arla Foods Ingredients is one of the most profitable areas within the Arla group.

Arla is investing a total of about DKr 900 million in the new lactose facility, with DKr275 million Povl Krogsgaard, who has responsibility for Arla's being spent in 2013. investment plan.

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tinue to be developed, but with more focus on refining activities, not primarily through expansion via mergers and acquisitions.

Arla Foods will continue to focus on its three global brands of Arla®, Lurpak® and Castello® while continuing to strengthen its ‘Closer to Nature’ position.

At the Pronsfeld dairy in Germany, Arla will invest approximately DKr232 million in initiatives to increase production of milk powder and butter in 2013.

The facility is scheduled to become partly operational at the end of 2014, and fully operational by 2016.

“To date, we have been able to utilise and process all the constituents of the raw milk supplied by our owners, with the exception of one - the lactose that is released when we concentrate the protein from the whey.

Going forward, the new lactose facility will enable us to achieve optimum processing of all the constituents of milk and therefore produce profitable lactose products for the food industry,” points out Henrik Andersen, chief executive of Arla Foods Ingredients.

Improving Efficiency Another key aim in the revised strategy is to continue to improve efficiency by focusing on cost and new ways of working. “We have launched a large number of programmes that will enable us to work faster, leaner and more simply. Our overall objective is to save DKr2.5 billion by the end of 2015. This is essential in order to be able to invest in new growth and remain competitive,” Peder Tuborgh points out.

To help achieve this goal, Arla will invest approximately DKr370 million in improving efficiencies and cost effectiveness at its dairies in 2013.

UK Expansion Of course, Arla is currently in the process of constructing a new £150 million fresh milk dairy at Aylesbury on the outskirts of London in England. When completed, the new dairy will process and package up to one billion litres of milk per annum.

“In addition to it being one of the largest construction projects in the UK, we have ambitions for it to be the world’s first zero carbon fresh milk dairy, which will help Strategy 2017 Arla achieve its growth ambitions in the Arla Foods Ingredients has been assigned a UK,” says Peter Lauritzen, chief executive target of doubling its revenue globally from of Arla Foods UK. DKr2.5 billion to over DKr5 billion in Arla’s Arla expects the dairy plant to be operational by October this year. The capital recently revised development plans – Strategy spend on this plant in 2013 is DKr293 mil2017. The investment at Nr Vium in lion (£39 million).

Denmark will help support this objective.

With a 26% share of the milk pool in Arla’s newly unveiled Strategy 2017 has been devised to prepare the group for the Henrik Andersen, chief executive of Arla Foods Great Britain and processing approximately 3.2 billion litres of milk a year, Arla is the abolition of EU milk quotas in 2015. Arla Ingredients.

UK’s largest dairy company, with a expects its milk farmers to produce at least one billion kilos of milk more each year in the post-quota era. turnover of about £2 billion.

However, the extra milk cannot be sold as profitable products in the EU, where growth has been stagnating.

Reducing Environmental Impact Arla's climate strategy aims to achieve a reduction in total group Markets Outside the EU CO2 emissions of 25% before 2020. Arla is investing in projects Consequently, a significant new aspect of the revised strategy is that that will deliver environmental improvements at individual dairies, Arla is increasing its focus on markets outside of the EU. Over the in order to reduce energy consumption. The dairy group plans to next five years Arla will intensify its activities in Russia, China and invest DKr140 million in reducing the environmental impact of its the Middle East & Africa region, and aims to double sales of ingre- production sites in 2013. dients to the food industry. In Arla’s core markets in Northern Europe the emphasis will shift from expansion to increased profitability and innovation.

“We are now increasing our focus on Russia, China and the Middle East & Africa region. Our export to these markets is growing rapidly, and we will work hard over the next five years to build on the massive potential that these markets hold for Arla’s products,” says Peder Tuborgh, chief executive of Arla Foods.

With Russia, China, Middle East & Africa now identified as strategic growth markets, Arla will increase investment in marketing, distribution networks and co-operation with local partners in these regions during the next five years. By 2017 the overall revenue from Arla’s strategic business generated in these markets is set to increase from approximately DKr3.5 billion to DKr10 billion (Eur1.34 billion).

Core Markets In recent years, Arla has strengthened its positions in its core markets in the UK, Sweden, Germany, Denmark, Finland, and the Netherlands. According to Strategy 2017, these markets must con-

The expansion of Taulov dairy in Denmark will be completed in 2013 with an investment in yellow cheese production of DKr215 million.

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environmental improvements are also expected to cut the group's total energy consumption by 1.5% in 2013, which corresponds to a reduction of 36,863 MWh, which is equivalent to the annual electricity consumption of approximately 8,200 homes.

Arla’s total 2013 investment of DKr2 billion is approximately 3% of expected revenue. Arla plans to continue to invest a similar proportion of revenues in subsequent years as part of Strategy 2017.

Arla Foods will continue to focus on its three global brands of Arla®, Lurpak® and Castello®.

Arla currently has 71 dairies globally and investments in 2013 will make it possible to reduce their total CO2 emissions by 2%. “Thanks to new technology, we can further reduce the impact of our production processes on the environment and nature, and this year we are investing in 50 Closer to Nature projects, in order to achieve this aim,” remarks Povl Krogs gaard.

The investments in

Peter Lauritzen, chief executive of Arla Foods UK.

Further Development The revised strategy which takes Arla to 2017 builds on the previous strategy and is a further development of Arla’s strategic direction, rather than a fundamental change. In the revised Strategy 2017 there is no overall revenue objective, which was one of the focal points in Strategy 2015.

“We are four years into the 2015 strategy period and have achieved many of the strategy’s objectives, and are close to the revenue target of DKr75 billion. Our recent growth must deliver an even higher return to our co-operative owners, and releasing Arla’s new potential is a major task. This is one of the main elements in Strategy 2017. Even though revenue will naturally increase during the next five years, the main goal is profitability,” concludes Peder Tuborgh. J

I DAIRY INGREDIENTS

Meadow Foods to Expand Peterborough Site eadow Foods, the UK’s largest indeM pendent dairy and leading supplier of milk and dairy ingredients to the food industry, is to invest £3.1 million at its site in Peterborough. The Peterborough factory is home to Meadow Foods' Fresh Division where it processes and packs fresh creams, milks and cultured products for food manufacturers.

An initial £1.3 million investment is being spent to fully automate and double the cultured plant’s capacity, decreasing waste and increasing efficiency, with works due to be completed by the end of February 2013.

A further £1.8 million has been assigned to the site in the coming year, which will involve the installation of new mix tanks, inline standardisation and additional on-site storage. This investment will improve

product quality and give Meadow Foods the capacity to produce enough packed cream to satisfy the entire UK market.

The ambitious investment programme follows a very successful year in 2012 which saw a 13% increase in the company’s

turnover to £340.9 million and a 4.97% increase in operating profits to £9.51 million (for year ended 31 March 2012).

Simon Chantler, executive chairman of Meadow Foods, comments: “Our strong results have allowed us to embark on this exciting reinvestment project. By further improving our capacity and consistency of product we believe we will continue to grow the business and bring greater opportunity to both our farmers and customers alike.”

Meadow Foods has two other factories in Chester and Yorkshire and the company’s products include cream, butter, butteroil, sweetened condensed milk, chocolate crumb and cultured products. The company, founded in 1992, now employs more than 250 people. J

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Eilersen – Hygienic Load Cells and Weighing Solutions stablished in 1969, Danish and Swiss E engineering group Eilersen specializes in supplying weighing solutions to food and pharmaceutical customers worldwide based on a broad range of high-quality, robust digital load cells. This digital load cell technology features a number of advantages and cost savings compared with other technologies used in load cells for process weighing. The Eilersen hygienic weighing solutions have made a big impact on the industry with installations in more than 85 countries worldwide.

nance, which in turn reduces the total cost of ownership.

The robust Eilersen digital load cells are supplied pre-calibrated to very high accuracies, so reducing commissioning costs. Furthermore, the load cell calibration is not dependent on the cable length which may be up to 100 meters long, so the installation is true ‘plug and play’.

Eilersen load cells are available with Profibus DP, DeviceNet, EtherNet IP, Modbus ASCII/RTU, RS485/422, RS232, 4-20 mA and 0-10 VDC interfaces, and can be supplied in OIML and ATEX certified versions.

Industrial Weighing

Eilersen Weighing Indicator.

The solutions are based on the robust Eilersen load cells which are high quality products manufactured in stainless steel and hermetically sealed to IP68 by laser welding. They are hygienic and feature high specifications, outstanding reliability, simple mechanical and electrical installation and minimal maintenance for use in tough and demanding industrial environments.

Eilersen digital load cells are based on a capacitive measurement principle whereby a robust ceramic sensor is mounted inside the load cell body. Because the load cells contain no moving parts and the ceramic sensor is not in contact with the load cell body, the load cells tolerate very high overloads, sideloads and torsion.

Advantages of Eilersen Load Cells

The Eilersen load cells are very robust (tolerance of up to 1000% overload) and are designed for simple and hygienic installation.

The load cells are installed without the use of expensive and complicated mounting kits, eliminating bacteria traps to ensure the highest hygiene standards.

This also eliminates the need for mainte10

Eilersen also offers an extensive range of solutions and components for industrial weighing. These include weighing indicators with LED and LCD displays, modular weighing instrumentation with interface to PLC and PC, weighing application software, and robust floor and platform scales in stainless steel.

Eilersen has vast experience in weighing solutions for tank installations, vessels and silos with installations at many

Hygienic load cell with baseplate.

of the leading food processing companies worldwide. The enterprising company also supplies weighing components for conveyer belts and graders in food processing environments.

The most common applications include production lines for processing of meat, poultry, fish and vegetables, where the robustness, high accuracy and no maintenance of the Eilersen technology is highly rated by users. Furthermore, Eilersen components are suitable for use at freezing temperatures below -40°C. Eilersen also supplies weighing components and customized instrumentation for checkweighers, graders, belt scales and FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2013

EtherNet weighing module.

catchweighers.

Customized Solutions

The company offers customized scales with direct interface to factory automation systems via EtherCAT, Profibus DP, DeviceNet, EtherNet IP, Modbus ASCII/RTU, RS485/422, RS232, 420mA and 0-10VDC interfaces.

The scales are produced in stainless steel AISI304 or AISI316L and are characterized by their high accuracy and overload tolerance as the scales are based on Eilersen digital load cells. The scales are made to meet precise customer specifications and are available in capacities up to 4tons.

Eilersen has a long track record through more than 35 years of supplying leading food and drink processors worldwide across all sectors, and its dedication to technology, quality, and service has led to a very high level of customer loyalty. J

Robust load cell for process weighing.

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I DAIRY PROCESSING

Glanbia Ingredients Ireland Has Strong Platform For Growth Having invested €107 million to expand its two dairy processing facilities at Ballyragget and Virginia in the last six years, Glanbia Ingredients Ireland is planning to spend an additional €180 million to further increase capacity in preparation for a substantial increase in Irish milk production following the abolition of EU milk quotas in 2015. lanbia Ingredients Ireland (GII) is the new strategic Irish dairy processing joint venture between Glanbia plc, the global nutritional solutions and cheese group, and Glanbia Co-operative Society, which is the main shareholder in Glanbia plc. Assembling a milk pool of 1.6 billion litres and processing it into approximately 180,000 tonnes of dairy ingredients largely for export, GII is the largest dairy ingredients processor in Ireland.

G

ing plants in Europe. It has an annual processing capacity of 1.1 billion litres of milk, 1.0 billion litres of whey and 140,000 tonnes of dairy ingredients, The Virginia plant has an annual processing capacity of 500 million litres of milk and 50,000 tonnes of Enriched Milk Powders (EMP). It is a leading international exporter of EMP, to the high growth markets of the Middle East, West Africa and Asia.

Active in a number of sectors including infant formula, cream liqueurs, consumer food products and clinical nutrition, GII supplies dairy ingredients to more than 50 countries globally. In addition to its own export infrastructure and routes to market, GII also has access to Glanbia’s sales and technical support locations in 14 countries worldwide.

The new whey processing plant at Ballyragget uses a micro-filtering system to produce a high purity

dairy protein that can be exported for use in Well-invested Business applications such as sports supplement and infant GII is a well-invested business and clinical nutrition. with about Eur107 million Ballyragget is one of the largest integrated dairy processing plants spent since 2007 in projects in Europe. designed to target high value high end clinical and infant nutritional formarkets, increase capacity, mulations.

The GII joint venture incorporates the enhance efficiency and diversify the prodWPI is extracted through a process called business and assets of Dairy Ingredients uct portfolio and geographic base. The ‘microfiltration’ followed by a natural conIreland, a former business unit of the Dairy investment programme has included a 33% centration and drying process, which Ireland segment of Glanbia plc, including increase in cheese processing its 45% share of the Corman Miloko capacity and an expansion of Ireland joint venture and its 23% share- value-added whey processing holding in the Irish Dairy Board. Dairy capacity.

Ingredients Ireland generated revenue of Glanbia recently invested Eur738 million, operating profit of Eur33 Eur21 million in a new Whey million and EBITDA of Eur44 million in Protein Isolate (WPI) plant at 2011.

Ballyragget in response to the GII’s two processing facilities are based at growing demand for what is the Ballyragget in County Kilkenny and at purest and most digestible form Virginia in County Cavan. A multi-prod- of dairy protein available. The uct site for cheese, caseins, milk and whey ingredient is incorporated in proteins, lactose and butter, Ballyragget is products ranging from one of the largest integrated dairy process- sports/performance nutrition to Artist’s impression of the proposed Belview plant.

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Glanbia pioneered and has perfected over the last 20 years.

Sustainability In addition to using the latest dairy processing technology, both the Ballyragget and Virginia plants are industry leaders in terms of environmental performance and energy efficiency. In January 2012, the Virginia facility became the first Irish dairy processor to gain the Carbon Trust Standard Award, a globally recognised certification for CO2 reduction. Ballyragget followed by passing the audit process in May. The awards were achieved through a reduction in carbon emissions in the last three years from the respective plants.

The Ballyragget plant is currently in transition to ISO 50001 Global Energy Management Standard and holds the ISO 14001 certified Environmental

management team, headed by Jim Bergin, is continuing to run the GII business and is responsible for day to day operations. The strategic focus is to grow GII in international markets, particularly in highgrowth developing regions.

€180 Million Investment Programme To accommodate an anticipated 55-60% increase in Irish milk production by Glanbia The Virginia plant has an annual processing capacity of 500 million Co-operative Society members litres of milk and 50,000 tonnes of Enriched Milk Powders (EMP). in the five years following the abolition of the EU quota regime in 2015, growth rates in Africa and South East Asia.

GII is preparing to substantially increase its There are new and emerging middle classes processing capacity by 2020 through a with higher incomes in major markets such as China and the Middle East.

Eur180 million investment programme.

The market will also be driven by the GII was recently granted permission by An Bord Pleanala, the Irish increasing awareness of the benefits of dairy planning appeals board, to pro- products, westernisation of diets and a ceed with a proposed new dairy growing focus on health and wellness by processing facility located in consumers. Ireland, which has a natural the company’s supplier heart- grass-based competitive advantage, is idealland at Belview in County Kilkenny. The new greenfield plant will complement GII’s existing facilities at Ballyragget and Virginia.

Costing about Eur150 million, the proposed Belview plant will be about two-thirds of the size of the facility at Ballyragget and will house two Ballyragget has an annual processing capacity of 1.1 billion litres 7.5 tonne/hour dryers with a of milk, 1.0 billion litres of whey and 140,000 tonnes of dairy capacity of 19 million litres per ingredients. week.

GII currently employs about Management Standard. Virginia is the first 500 people, including 320 at Ballyragget, dairy processor in the world to utilise and expects to employ an additional 70 at Kunota Membrane Technology to reduce the new facility at Belview. GII also plans biochemical oxygen demand in waste water to invest a further Eur30 million on its treatment. existing facilities. A recent study by Ernst & Young predicted an annual Eur510 milOwnership lion economic boost by 2020 arising from The GII joint venture is 60% owned by the planned milk expansion by GII and its John Moloney, group managing director of Glanbia Co-operative Society and 40% milk suppliers.

Glanbia. owned by Glanbia plc. Glanbia Co-opera“The abolition of EU milk quotas in tive Society has an option to buy Glanbia’s 2015 will initiate a new era for milk pro40% stake within six years. In the process duction and offers increased prospects for ly placed to exploit this growing global of forming the new joint venture, Glanbia the Irish dairy industry through a clear demand for dairy products.

Co-operative Society has reduced its share- opportunity to expand milk supply,” says holding in Glanbia plc from 51.4% to John Moloney. “Glanbia Ingredients Risks 41.4%.

Ireland is a strong foundation from which But what are the biggest risks to GII’s “The joint venture offers a compelling to grow volumes and value for Society expansion plans? “The key expansion risk for the joint venture is matching milk volproposition for all stakeholders for the members.” ume growth with processing capacity longer term as it facilitates the desired expansion,” replies John Moloney. “The expansion of dairy processing by Society Strong Market Outlook members and allows Glanbia to continue to GII’s future expansion plans are based on Belview plant is scaleable in the first focus on its successful international growth the positive long-term outlook for global instance and we also have built-in safestrategy delivering further value for Society dairy markets. Global consumption of dairy guards to protect GII’s future ability to members,” explains John Moloney, group products is forecast to grow by 2% to 3% expand. The joint venture structure builds on the group’s proven expertise in managmanaging director of Glanbia plc. Glanbia year-on-year until 2025. plc already has a number of successful Rising market demand is based on sus- ing and growing joint ventures and major international dairy joint venture operations tainable global trends. Almost one billion green field projects and we have an excelin the UK, USA and Nigeria. extra people are expected to inhabit the lent track record of developing large faciliThe former Dairy Ingredients Ireland planet during this period with the fastest ties on time and on budget.” J FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2013

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I ENERGY MANAGEMENT

Dalkia Displays Asset Care Excellence ood and drink manufacturers in F Ireland are facing specific challenges, and being able to rely on a cost-efficient

forming energy expert on board makes all the difference.

and performing energy supply and management of utilities system is essential to ensure health risks are carefully managed, production requirements are met and brand image is promoted.

Context Dalkia was invited to tender for a full Asset Care Outsource agreement for a major drink manufacturing site. Amongst the deliverables within the proposed contract was to evolve the site to a world class asset care status within the first two years of contract commencement, using the AMIS audit framework and external auditor MCP. This presented many challenges in relation to change management and implementation of processes and procedures utilising a core team that had been transferred to Dalkia under the TUPE regulations as part of the agreement.

The main challenges involved the development of relationships in order to overcome the contractor/client relationship and establish a true partnering arrangement that would be mutually beneficial and establish a fully engaged ‘team’ with common objectives.

An efficient refrigeration system plays a key part in asset care. Dalkia’s refrigeration scope includes design, maintenance, installation and repair, as well as HVAC, or heating, ventilation and air conditioning.

The successful partnership between Diageo in Waterford and Dalkia, the utilities and energy management specialist, was recently acknowledged at the Meeta Awards 2012 by Engineers Ireland, where they won the Overall Winner of the “Asset Care Excellence” Award.

David Gough, Dalkia’s Energy & Utilities Operations specialist for major food and drink manufacturers, gives us an insightful view on how having a per-

Implementation Dalkia worked heavily in conjunction with the customer’s management team to clearly define roles and responsibilities of all site resources, at the same time clearly communicating the overall objective and highlighting the benefits to all stakeholders.

A strategy was implemented to move the site from Reactive to Proactive Asset Care.

This was achieved by engaging all stake-

The Diageo Waterford and Dalkia team receiving the Overall Winner Meeta Award.

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Dalkia currently operates several Energy Performance Contracts with food and drink manufacturers in Ireland.

holders, utilising SAP, improved planning, reducing breakdowns through RCA and implementing operator asset care. The main challenges included reduced staffing numbers, increased running hours, budget cuts, contractor client relationship and a lack of understanding of the scope of full asset care. Progress was tracked and driven through regular external audits and weekly plan reviews.

Results The site has had zero lost time accidents and environmental exceedance in the last 2 years. There has been a 20% increase in the tonnage roasted and an 11% increase in the volume of drinks racked. The quality measure has increased by over 12% and the waste figures have reduced by 3%. The benefits of the journey to world class asset care are reflected in these figures.

The site was awarded world class accreditation in September 2012, the fastest selfdelivered journey ever, placing it in the top 5% of 4,500 companies surveyed worldwide.

Dalkia continues to work with the site to deliver best practice in asset care and drive energy efficiency cost reduction via a structured continuous improvement program, delivered through innovation and a proactive approach. Dalkia team objectives are aligned to the wider site team objectives to optimise assets and increase reliability. J

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I PACKAGING INNOVATION

Award Success for DS Smith Packaging S Smith Packaging triumphed at the sevD enth annual UK Packaging Awards, the biggest and most prestigious event for the

Judges awarded the Hugh Johnson Wine Presentation Pack for its ‘outstanding innovation, material efficiency, functionality and elegant graphics’ with a hat-trick of awards for Best in Show, Corrugated Pack of the Year and Supply Chain Solution of the Year. This recyclable pack offers premium presentation for a high value product whilst reducing supply chain costs.

Tony Foster, Sector Director, explains: “To be recognised at the UK Packaging Awards in four categories is a huge honour for our teams, who work so hard to innovate and deliver the best solution for each customer.” J

packaging sector, winning four highly sought after accolades.

The Retail Ready Pack of the Year was presented for an innovative Cadbury’s Pic or Mix dispenser unit developed for Mondeléz International. The high quality, vibrant print creates impact and product differentiation on shelf helping customers increase sales and succeed in store. This fully recyclable pack works well throughout the supply chain, meeting retailer requirements whilst minimising waste and allowing for quick replenishment.

The Right Packaging Recipe For Border Biscuits order Biscuits have proudly baked B high quality biscuits for a variety of market sectors for over 25 years. They have relied on DS Smith Packaging Livingston for the last few years, for packs that work in the supply chain and meet the different retail needs of each sales channel.

Take for example the high quality six colour printed luxury mini pack range for cash and carry outlets. The print replicates the image of each biscuit to help promote the quality of the product and provides powerful stand out in the category.

A second pack, that previously did not meet supermarket needs, was re-engineered by the DS Smith team, to optimise sales cube. The unit has been designed to be single facing with each primary pack double stacked. The result is a perforated

RRP that exposes as much of the primary unit as possible, uses white liners and features effective perforations that work well and open cleanly.

John Cunningham, Managing Director of Border Biscuits confirmed that they are

delighted with the results of the packs from DS Smith Packaging, and that, “It’s essential that our suppliers understand our whole process. Packaging can improve line efficiencies and sales effort. Our packs do all that.” J

Retail Ready Stand Out For Snacking Category umdinger Foods have teamed up with H American brand, Blue Diamond, to create a tasty new range of almonds positioned as a healthier alternative to snacking. The partnership has seen DS Smith Packaging Belper produce new, high quality retail ready packaging (RRP) for the Blue Diamond UK range.

DS Smith Packaging’s fine flute corrugated material CartonFlute®, ensures a premium appearance on shelf, which FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2013

combined with a five colour high quality flexo print helps to support the brand and offer strong shelf standout. The use of the brand identity on the RRP acts as a strong visual cue helping to grab the shopper’s attention and encourage selection.

Structurally the pack has been designed to offer strength in the supply chain with perforations engineered to ensure the unit opens cleanly and easily each time. J 17

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Tekpak’s Flexible High Speed Case Packer Automates Off-line (WIP) Production obotic packaging line manuR facturer, TekPak, has recently launched an innovative pick and place case packer which is described as a flexible high speed system for vertical case packing quad bags, pouches and doy packs.

The all stainless steel robot, which uses a Elau/Schneider control system, represents the latest development from the company and has widespread applications, particularly for manufacturers of snack packs and bags, confec- Pick & place system - complete line. tionery and coffee.

Key features of the system include a the pick and place can handle a complete unique product transfer system that collates case formation, i.e. groups of 10 products the products beneath the gripper, so that at a time, increasing throughput on the

line. The gripper head and unique case opening system has been specially designed for vertical case packing in to display cases and other shelf ready formats.

The robot can pack bags straight from the bagger to maintain a continuous packing process.

Tekpak’s Business Development Director, Imelda Kehoe says: “Automating the offline/WIP (work in progress) operation is a major benefit for our customers because it reduces product lead time and can have a big impact on line efficiency."

See Tekpak’s case packing system in action at http://bit.ly/XJ3Yup. J

KM Packaging Seals the Deal For Australian Food Group fter two decades of supplying fle-xible A packaging solutions to an international customer base, KM Packaging Services knows only too well the importance of speed when it com-es to winning new business, and it was this key factor that secured the company its latest order from Australian fresh food producer, GA Zimbulis and Sons.

Aware of KM Packaging’s reputation for delivering high quality products in record times, Zimbulis approached the UK-based company to help it meet an extremely tight launch date for a new range of ready to roast meals destined for shelves at a leading fresh food retail chain.

Following an in-depth review of the product specifications presented by Zimbulis, KM Packaging was able to quickly identify the

most suitable lidding film material, carry out initial performance tests on comparable aluminium foil trays of those chosen by Zimbulis and deliver trial reels overnight to the food manufacturer’s production facility in Canning Vale, Australia.

A key requirement of the lidding film was that it would deliver a reliable and secure seal, which would ensure maximum product safety. The material supplied by KM Packaging demonstrated superior sealability and peelability, making it perfect for the retailer to achieve maximum shelf-life and security as well as easy for the end consumer to use. For more information about KM Packaging and its vast range of flexible and reliable packaging solutions, visit www.kmpack.co.uk or call +44 (0)1832 274944. J

Logistics Group Benefits From Endoline Automated Packing Line n automated packing line, installed by Endoline Machinery, which erects and seals A cases containing up to 26,000 bottles of wine per day, has enabled Europa Worldwide Logistics to meet its growing next-day delivery targets for its customer, a leading dot.com wine supplier. Plus it has improved pack presentation, significantly increased the throughput of boxes and enhanced the overall efficiency of the production line.

The new semi-automated production line installed by Endoline has the added capability of erecting a range of case sizes, from 6 bottles to 12 and 15 bottle cases, dependant on the customer demand. A simple changeover process allows Europa to easily change the size setting, enabling them to run a different line of boxes through the production line.

For further information contact Endoline on Tel + 44 (0)1767 316422 or visit www.endoline.co.uk. J FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2013

The FPT case sealer which automatically closes the top case flaps and seals the filled wine boxes ready for delivery.

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Twin-screw Extrusion Addresses Changing Breakfast Cereal Markets

By Aïda Rochas, Marketing Manager – Clextral France hether on mature or emerging markets, W breakfast cereal consumers are mostly looking for convenience, variety and fun.

More often than before they are also looking for on-the-go breakfast snacking and readyto-eat products. In the fast growing emerging markets, consumers also want a compromise between tradition, price, convenience, nutrition and fun: producers must use local raw materials and adapt to local habits.

How can twin-screw extrusion address these consumer trends?

In the 70s, a French company, Clextral, launched a fast, simple and cost-effective process called twin-screw extrusion cooking (TSE) to produce ready-to-eat breakfast cereals. Its high versatility is one of its major advantages over traditional processes. It gives it a head start on the new ready-to-eat cereals and emerging markets.

Twin-screw extrusion cooking excels in

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Clextral Research & Test Center in Florida.

processing a wide variety of ingredients (including whole grains and high fiber ingredients); the quality of the finished product is highly consistent; it is capable of producing, on the same line, a wide range of direct expanded products as well as flaked cereals; it allows manufacturers to create new cereals that can be co-extruded, bi-colored or 3Dshaped by adding clip-on modules.

TSE technology also helps food producers

FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2013

meet sustainable and environmental requirements. This Short Time-High Temperature process allows faster manufacturing time while dramatically reducing space requirements. Fully automated, with simplified maintenance and fast and easy changeovers, TSE continuous process allows to significantly reduce the carbon footprint of breakfast cereal products.

TSE technology is the solution for cereal producers who need to easily fine-tune their products to appeal to local tastes and who are looking for more productivity and flexibility to meet growing and quick-changing markets.

Clextral supplies twin-screw extrusion turn-key production lines from the raw material handling to the packaging systems.

Its team of engineers and process specialists develop innovative products and techniques in the R&D centers in France and the United States and in partnership with processors and researchers. J

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I CEREALS

£1.5 Billion UK Breakfast Cereals Market Becoming Soggy UK breakfast cereals manufacturers are facing intensifying competition from alternative breakfast solutions and growing consumer concern over high sugar levels in products. lthough nine out of ten UK consumers, across all ages and socio economic groups, eat breakfast cereals, volume sales have been in decline and value growth has been driven by rises in selling prices to offset commodity inflation.

The UK breakfast cereals market is highly consolidated and is dominated by three multinational branded manufacturers Kellogg, Weetabix and Cereal Partners (handling the Nestle brand in the UK) – which jointly control about 60% of all sales. Although the market is dominated by the ‘big three’, which also have extensive overseas operations, many smaller manufacturers have been successful in carving out niches, such as meeting the demand for organic and premium products.

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PepsiCo is continuing to invest in its Quaker Oats site at Cupar in Scotland.

The UK breakfast cereals market is worth about £1.5 billion, according to Key Note.

The market is divided into two sectors cold ready-to-eat (RTE) and hot cereals.

While RTE is still by far the largest sector, with a market share of almost 90%, hot cereals are growing much faster. Indeed, porridge is now the favourite cereal in the UK The hot cereals sector grew by 24% to reach sales of £155 million in 2011, outperforming RTE cereals, which expanded by 2.4% to £1.33 billion.

Breakfast cereals manufacturers have responded to consumer concerns over sugar and salt levels with reduction programmes, and have been promoting the ‘healthy eating’ aspect of their products, especially on

the new product development front.

However, the breakfast cereals industry in the UK is said to be facing its biggest slump in 100 years. According to Key Note, the majority of top brands are experiencing a decline in either value or volume, or even both, due to market saturation, the growing role of own-label goods, heavy promotional activity and manufacturers’ slow response to consumers’ changing lifestyles in the RTE cereals sector.

The UK breakfast cereals market is dominated by

Major Challenges Manufacturers of RTE boxed cereals are finding it increasingly difficult to satisfy the growing demand for on-the-go convenient breakfast solutions by consumers, who are increasingly showing a preference for cereal bars, instant porridge and other breakfast solutions, such as pastries and pancakes.

Key Note also points out that growing awareness of the excessive sugar content in major RTE brands is deterring increasingly health-conscious consumers. For example, Cereal Partners Worldwide (CPW), Nestle’50/50 joint venture with General Mills, recently committed to reducing the sugar content of 20 Nestle breakfast cereal brands popular with children and teenagers to 9g or less per serving by the end of 2015.

The changes will mean Nestle breakfast cereals will have a sugar reduction of up to 30% across brands including Nesquik, Chocapic, Honey Cheerios, and Milo. The reductions in sugar are being made alongside other nutritional improvements.

Specifically, whole grain will be the main ingredient in all the new recipes.

While adversely impacting the overall RTE sector, the consumer preoccupation with healthy eating is benefiting hot cereals and muesli, which are exhibiting value growth, due to their ability to meet the demand for nutritious and slow-energyreleasing breakfast solutions.

Expansion To meet the rising consumer demand for porridge, PepsiCo is continuing to invest in its Quaker Oats site at Cupar in Scotland.

FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2013

three branded manufacturers - Kellogg, Weetabix and Cereal Partners.

The US-based food and beverages giant is investing £14.4 million to increase the capacity of the Cupar facility, which produces Quaker Oats, Scott’s Porage Oats, Oat So Simple as well as Quaker's latest innovation, Quaker Oat So Simple Pots, designed to make porridge preparations even easier. The latest expansion programmes takes the total that PepsiCo has spent on the Cupar site to £51 million over the past decade to meet the surge in porridge sales, both at home and abroad.

Weetabix has also been investing heavily to consolidate its UK market position and to capitalise on rising export sales.

The company, which is now owned by Bright Food of China, is currently spending £20 million to improve overall efficiency across its production facilities in the UK, US and Canada. The current investment is in top of the £14 million spent during 2010 and 2011 on upgrading facilities.

Outlook Key Note expects that the breakfast cereals market will continue to grow exponentially over the next few years.

Innovation will remain crucial to the success of breakfast cereals, and interactive campaigns will play an increasingly important role in the industry. Key Note predicts that the market will grow by 20.9% during the five years from 2011, reaching sales of £1.9 billion in 2016. J 21

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Tracesoft: Boosting Weetabix Production Through Down-Time Analysis racesoft, the provider of quality manageT ment software for the food industry, has been firmly established as a supplier to the Weetabix Food Company since 2006, at both the Corby and Burton Latimer sites in Northamptonshire. Tracesoft specialise in supplying software to food manufacturers and processors to assist with areas such as traceability, quality management and realtime data capture, helping manufacturers to save time and money and to exceed stringent food legislation requirements.

Tracesoft has been used at Weetabix as a tool to specifically identify the cost to the business of production line downtime. By using wireless handhelds and the Tracesoft TQM system, line supervisors gain an accurate awareness of machine downtime plus the reasons behind these production stoppages. Reporting analysis takes place through the software to categorise problems by product, size and content, therefore enabling Weetabix to achieve significant

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operational improvements by identifying where problems exist on the production lines.

David Riley, Tracesoft Managing Director explains the company ethos: "The Tracesoft focus is based on looking after our customers' needs: their requirements clearly vary from company to company. By listening to what our customers want and then delivering much higher than their expectations we have established a business that makes a real difference."

He adds: "Many of the Tracesoft values mirror those of Weetabix, such as maintaining tradition whilst at the same time being at the cutting-edge of technology.

We embrace Weetabix's promotion of corporate social responsibility - we are delighted that Weetabix employ Tracesoft systems to help ensure a more profitable operational process, which also in turn benefits the environment by reducing paper-based systems, wastage and energy. We are delighted

FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2013

to have a long-term relationship with Weetabix and look forward to embracing further production challenges together." J

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I CEREALS

Bright Future For Weetabix Now under Chinese majority ownership, Weetabix Food Company is expected to benefit from increased investment to accelerate its international growth. eetabix is the second largest branded manufacturer by value of ready-to-eat cereals and cereal bars in the UK. In addition to the market leading Weetabix brand, the company’s portfolio also includes household names such as Weetaflakes, Oatibix, Oatiflakes, Seriously Oaty, Ready Brek, Weetos and Alpen, the leading UK muesli brand. Weetabix’s branded cereal business is complemented by its number two position in the manufacturing of own label cereals for retailers in the UK. Weetabix operates manu- Giles Turrell, chief executive of Weetabix. facturing sites at Kettering, Corby and Ashton-under-Lyne in the UK. largest overseas acquisition by a Chinese To supplement its strong presence in the company in the food and beverage sector.

UK, the company has developed operations The deal is in line with Bright Food’s stratin North America, South Africa, Germany egy of buying famous international brands, and Spain, and exports to more than 80 developing advanced technology and taking countries around the world. Weetabix strong competitive positions in each of its employs about 1,800 people worldwide and markets in 2011 generated sales of over £460 milBright Food is committed to driving the lion. global growth and success of the Weetabix business, with a focus on the potential in £1.2 Billion Deal Asia and especially in China, by taking Weetabix is now majority owned by Bright advantage of the growing appetite in the Food, one of China’s largest food groups, country for packaged and convenient after it completed its acquisition of 60% of healthy foods. the cereals producer from private equity firm Lion Capital for £720 million in late Catalyst For Growth 2012, valuing Weetabix at £1.2 billion. The acquisition is expected to create new Lion Capital, which purchased Weetabix in opportunities for Weetabix and to act as a 2004, retains the remaining 40% of the catalyst for further growth. “Bright Food shares. However, Bright Food has the will increase the level of investment in option to acquire full ownership within two Weetabix brands and product innovation years. to facilitate its development in international Purchasing 60% of Weetabix is a land- markets,” says Zongnan Wang, chairman mark acquisition for Bright Food, facilitat- of Bright Food. ing its entry into both the UK and global Giles Turrell, chief executive of food markets. Indeed, the transaction is the Weetabix, remarks: “We are confident that

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Weetabix is the second largest branded manufacturer by value of ready-to-eat cereals and cereal bars in the UK.

FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2013

with Bright Food’s support we will be able to significantly strengthen our market position and expand our business internationally.”

Armed with the Weetabix business, Bright Food expects to be able to expand the Chinese breakfast cereals market, which is currently growing by about 20% per annum. Weetabix will now have access to Bright Foods distribution network, including over 100,000 retail outlets in China.

Indeed, Weetabix is conducting research into the diet and taste preferences of Chinese consumers in order to develop new products specifically for the growing market in China.

Giles Turrell continues: “While the company’s focus has been on reinforcing and building on our leading position in the UK, I believe there are also substantial opportunities to further grow the business internationally, in North America, Asia and beyond. We are very excited about the future prospects for Weetabix under the guidance and support of shareholders who bring a strong track record of success and the complementary skills and expertise to execute our strategy and vision for the business.”

Increased investment behind the brands and innovation has allowed Weetabix to generate top line growth that has outpaced the broader cereal market since being acquired by Lion Capital in 2004.

Well Invested Weetabix is a well-invested business. Last year, the company announced a £20 million investment programme across its production sites in the UK, the US and Canada to improve overall efficiency. The investment is part of the company’s ‘Performance Through People’ initiative, designed to increase output, minimise waste and reduce energy consumption.

The current investment is on top of the £14 million spent during 2010 and 2011 on upgrading facilities. The company’s UK sites will be the main beneficiaries of the latest investment. The largest site at Kettering will receive the most money as it is prepared to faciliate increased volume and the introduction of new products. J 23

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GPL Construction (UK) Ltd – The Food Industry Construction Specialist ased at King’s Lynn in Norfolk, GPL B Construction specialises in the design and construction of cold stores, chill stores and food production units with particular emphasis on the supply and installation of insulated panel and door systems. The company undertakes contracts ranging from simple door repairs and maintenance through to complete design and construction of major facilities.

Founded 12 years ago, the family run business has established an exceptional reputation for customer service, reliability and quality of work, and offers a nationwide service.

GPL has worked with Cranswick for many years, successfully completing projects at a number of sites including the food group’s main abattoir at Hull and its bacon factory at Sherburn in Elmet.

For instance, at Hull GPL has car-

ried out major works expanding the abattoir unit including the construction of a rapid chiller. In 2010 works were undertaken to remove and replace all the old polystyrene cored insulation panels with new fire safe PIR cored panels in a measure to improve the fire safety of the butchery unit.

The projects took a year to complete with

Blast Freezers Fire Walls Controlled Atmosphere Stores Clean Rooms Resin Floors

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all works being carried out during weekends and at night to allow the butchery to continue operating.

In 2012, GPL carried out alterations to the packing area at Cranswick’s Watton site and installation work in the fryer area.

More recently GPL has carried out major expansion works at Cranswick Convenience Foods in Hull and has just commenced works at a new facility in Malton for Cranswick Gourmet Pastry.

GPL is active across all sectors of the food and drink industry and is currently working on prover rooms and spiral coolers for a bakery company in Yorkshire, a new bottling plant for a drinks manufacturer in Gloucester, a new site extension for a fruit packer in Kent, and a new pack facility for a distribution business in the North West. J

Tel: 01553 773344 Email: info@gplconstruction.co.uk

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I MEAT PROCESSING

Cranswick Continues to Bring Home the Bacon Despite rising input costs and the difficult trading environment, Cranswick continues to expand, benefiting from constant investment across its production sites to maintain competitiveness and the ongoing popularity of pork with consumers. ne of the leading pork processors in the UK, Cranswick has just secured a £30 million contract to become the main pork supplier to UK supermarket group Asda. To accommodate the additional volume, Cranswick has purchased a former fish auctioning facility in Hull. This will be converted into a food processing site with major investment planned in slicing, dicing and vacuum packaging technology at the site, which will be renamed Cranswick Riverside and is close to the company’s main abattoir at Preston, East Yorkshire, where £25 million was recently invested.

The converted 157,000 sq ft facility will process about 200 tonnes of fresh pork weekly and is due to come on stream by the end of March 2013 with the creation of more than 100 jobs. Cranswick, which supplies about 25% of the UK’s premium pork, sources about 70% of its pigs from a within a 50 miles radius of its base in Hull.

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Well-Invested Facilities The group has some of the best-invested, modern facilities in the industry, having invested almost £120 million over the past five years, and is continuing to invest to ensure that it maintains its competitive edge. Indeed, across the sectors in which they operate, Cranswick’s facilities are amongst the most efficient production sites in the UK. This has helped the group to

protect its profit margins in the present challenging trading environment.

Although rising input costs continue to be a problem, with UK pig prices reaching record levels in December 2012, efficiency improvements brought about by ongoing capital investment and constructive pricing discussions with customers have helped partially mitigate the full impact.

For instance, Cranswick recently completed the extension of its Sutton Fields cooked meats facility in Hull to provide increased capacity to meet the strong sales growth from this part of its business. The extension has also improved production flows through the factory which has driven efficiency benefits.

Cranwick is also seeing record volumes produced and shipped from its gourmet bacon facility at Sherburn-in-Elmet, near Leeds, following the recent substantial investment to increase capacity and improve operating efficiencies at the plant.

Development of the new £10 million pastry facility in Malton, North Yorkshire remains on schedule and to budget, with first commercial production from the factory expected in late spring 2013.

The UK food group is also rapidly building its export business, which currently accounts for about 5% of total sales.

Cranswick’s two fresh pork facilities in Hull and Norfolk have now been awarded export licences to China and are in the process of gaining Australian export accreditation.

Cranswick also recently extended its product portfolio and strengthened its cooked meat production capability with the acquisition of Kingston Foods for £10.2 million last June.

Financial Performance Cranswick achieved its highest ever sales and second best trading profit in its history for the year ended 31 March 2012. This momentum has been carried into the group’s current financial year. In the first half ended 30 September 2012, Cranswick increased revenues by 6% to £418.6 million, with underlying sales up 5%, and FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2013

profit before tax rose by 21% to £22.5 million.

“The retail environment remains challenging with many of the group’s customers reporting flat or, at best, modest sales and earnings growth,” says Adam Couch, who became chief executive last August following the retirement of. Bernard Hoggarth.

“This notwithstanding, the value proposition of pork remains strong, particularly compared to both beef and lamb. Pork’s health attributes and versatility both as an ingredient and as a complete meal solution continue to find favour with the consumer.”

Cranswick has also reported a solid sales performance in its third quarter to 31 December 2012 with underlying turnover up 7% underpinned by strong volume growth. Reflecting particularly strong sales growth of bacon, sausages and cooked meat products along with a contribution from the Kinston Foods acquisition, total sales for the quarter were 8% higher.

“The strategy for the development of the business remains unchanged with future growth being generated by a combination of acquisitions and organic initiatives,” says Martin Davey, chairman of Cranswick.

With its well invested asset base, loyal and skilled teams, a great range of products and a strong financial position, Martin Davey and the Cranswick board are looking forward positively to the rest of the year and the long term development of Cranswick. J 25

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I MEAT PROCESSING

Dalehead Foods Opens ‘World Class' Facility UK meat processor Dalehead Foods has unveiled its newly refurbished Spalding abattoir and production facility. alehead Foods operates five sites across the UK, supplying Waitrose with over 400 products, including fresh pork, bacon, sausage, cooked meats, lamb and added value products. Dalehead Foods is a division of Tulip, one of the largest meat processors in the UK and part of the Danish Crown group.

Founded in 1969, Dalehead Foods merged with Roach Foods in 1999 to form Flagship Foods, which became one of the leading pig meat processors in the UK. In 2004, Flagship Foods, which then comprised Roach Foods, Dalehead Foods and Flagship Fresh Meats, became part of Danish Crown.

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Spalding Project The multi million pound project at Spalding, part funded by Defra, the EU and in partnership with East Midlands Pork Producers (EMPP), is the culmination of 18 month's work that will ensure the Dalehead Foods’ enlarged facility is truly ‘world class’.

Seamus Rooney, managing director of Dalehead Foods, explains: “The refurbishment of our Spalding facility reaffirms Dalehead Foods’ commitment to invest in the British pork industry. The site now has a new colleague amenity building, upgraded changing areas, as well as a high-tech lorry wash, a state-of-the-art carcass grading system and a new 500 sq metre pre chill extension which will help reduce ‘drip-loss', directly benefiting farmers who are part of the EMPP.”

Dalehead Foods' new amenity building.

outlook for British pig farmers.”

Commenting on the project, David Heath, Minster of State for Agriculture and Food, says: “Defra has invested £2.4 million in this innovative project, which will really help to boost the economy and promote British pork on a global stage. It's encouraging to hear that the improvements the East Midland Pork Producers have made to both the abattoir and processing plant will now enable them to export to America and beyond. I'm keen to see that Government supports more projects like this so we can help create the jobs and economic growth that our rural areas so desperately need.” J

Exports He adds: “The upgrade should also enable us to secure US Department of Agriculture approval which in the long run could boost pork exports to the US and ultimately improve the economic

Dalehead Foods is a division of Tulip, one of the largest meat processors in the UK and part of the Danish Crown group.

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I PROCESS SOLUTIONS

Musk Engineering – The Turnkey Process Design and Build Specialist usk Engineering specialises in deliverM ing turnkey projects, which include process and mechanical design, electrical and controls installations, plant installations, and pipework systems across all sectors of the UK food and beverage industry.

Musk has partnered with many of the country’s best known food and drink processors in applying the latest technology and process techniques to new and existing plant to improve the performance of its customers’ businesses. The company can deliver projects of any size, and its technical and project management expertise enables it to undertake the most challenging of projects.

At Ragus Sugar, Musk developed a provisional process design into a commissioned factory. Musk completed the full process design, control system and installation (including mechanical and electrical), converting a newly constructed empty building

into an operational sugar factory within a 13 week period.

On the drinks industry side of its business, Musk recently completed the design, supply and installation of specialist brewery equipment into Hall & Woodhouse’s new brewhouse at Blandford in Dorset, as part of a £5 million new brewery development programme by the family company.

Musk, part of the W T Parker Group, has the ability in-house to complete full design using the latest computer aided techniques, and installation projects. In addition, Musk’s site services are complemented by its own significant fabrication facilities, which specialise in the production of stainless steel process plant.

“We pride ourselves on a team approach utilising skill, knowledge and management together with an understanding of key issues in order to deliver projects to the highest

standard,” says Shaun Carlton-Greaves, director of Musk Engineering. “We are committed to client satisfaction and our key goal is to develop long-term client relationships throughout the project and further into the future. We offer a flexible, ‘can do’ attitude, which enables us to build a relationship based on trust and our ability to problem solve.” J

Hall & Woodhouse’s new brewhouse.

Musk undertake process and mechanical engineering turnkey projects, control systems, plant installations and pipework systems.

Over the years, knowledge and skill have been developed through-out the organisation, working with our clients from an early stage to help them develop their project. As part of the WT Parker Group, we can offer the complete Mechanical and Electrical Design and Installation including process control engineering. In addition, our site services are complemented by our own significant fabrication facilities, which specialise in the production of Stainless Steel process plant for the following sector industries:

Q Dairy Q Brewery & Distillery Q Food Q Confectionery Q Beverage Q Non Food Q Chemical Q Pharmaceutical & Healthcare T.MUSK ENGINEERING LTD Astron Business Park Hearthcote Road, Swadlincote, Derbyshire DE11 9DW, England T: 01283 200400 F: 01283 200444 www.musk-eng.co.uk

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I SWEETENERS

Ragus Opens New Specialist Sugar Factory UK-based Ragus Sugars has opened a new state-of-the-art factory in Slough for the production of specialist sugars to meet growing global demand. agus is a leading importer and manufacturer of sugar products. It refines and produces a range of sugars and syrups, including ethical sugars and syrups, to suit all applications.

The company also produces a diverse range of products with variations of colour, texture and taste. Raw materials are sourced from certified suppliers - cane sugar from African, Caribbean and Pacific countries and beet sugar from within the European Union.

R

British Expertise The newly opened factory, which is one of the most advanced of its kind in the world, was constructed using British expertise and highlights Ragus’ faith in its future. It will help Ragus build on its position as a supplier of bespoke sugars and syrups to the food, baking, pharmaceutical and brewing industries.

“We travel across the world to source sustainably grown crops that we turn into specialist sugars used in products from medicines to cakes, cereals and much more,” explains Ben Eastick, director of Ragus Sugars. “We’re a British manufacturer in a global market and have expanded through the recession due to our market insight, strong customer service and ability to make any specialist sugar product. The new factory prepares us for a strong future, especially

Ben Eastick, director of Ragus Sugars.

The newly opened factory, which is one of the most advanced of its kind in the world, was constructed using British expertise and highlights Ragus Sugars’ faith in its future.

with changes happening in our industry.”

Rising Raw Materials Costs While other companies make bespoke sugars, they tend to rely on the bi-products that result from refining white sugar. However, global cane prices and EU import duties mean that it is increasingly hard to buy enough raw cane at the right cost to profitably produce white sugar and its bi-products. Ragus is able to by-pass these issues on two accounts. Firstly, its factory can process sugar beet as well as cane. Secondly, as it makes premium products, it can cope with higher raw material prices.

“With the new factory we’ve volume on tap to help brewers, soft drinks manufacturers, bakers and pharmaceutical companies adjust to a potential lack of availability of sugars (especially a shortage of white sugar).

Whether or not a shortage comes to pass, the new facility combines with our in-depth expertise in specialist sugars to put us in a great position to grow,” adds Ben Eastick.

Green Facility The factory is equipped with the latest machinery for the highly efficient drying, sieving, screening, blending and bagging of sugar. It will significantly cut power and

water usage compared to the company’s old site, helping Ragus achieve its commitment to reduce carbon emissions year-on-year.

The factory is accredited to all food production standards including ISO14001 and BRC Global Standard Delivery. It houses specially-made stainless steel syrup inversion pans and syrup storage tanks. Much of the machinery was built and installed by UK firm Musk Engineering, which outbid – on price and quality – European firms. “Musk Engineering,” he points out, “on time, to budget and with great quality custom-made most of our production line systems.”

Ragus also relies on the latest technology to track raw materials, meet schedules and deliver goods on time. Indeed, its on time in full (OTIF) figure for customer deliveries runs at 99.7 per cent.

“We’ve been a part of the Slough community since 1928. And make no mistake – there’s a really skilled workforce here that’s critical for a company like ours that competes overseas. We’re also delighted to fly the flag for Britain and to have used British expertise to build the new factory. This is an exciting time for our business and employees and we’re looking forward to taking our business on to a new level,” concludes Ben Eastick. J

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I POTATO PROCESSING

New Head For Lamb Weston Lamb Weston, the world’s premier supplier of frozen potato products and appetizers, serving both the food service and retail industries across the globe, has a new leader. reg Schlafer is the new president of Lamb Weston. Reflecting parent group ConAgra Foods’ ambition to grow its core, international and private brands businesses, Greg Schlafer has specific responsibility for running Lamb Weston’s global business, which serves more than 2,500 restaurant, food service and retail customers in 120 countries.

Greg Schlafer most recently served as vice president of the Bakeries & Foodservice division of General Mills. In that role, he was responsible for the sales and profitability of all segment business units, including food service and convenience store channels, quick-serve restaurants, bakeries and milling, and in-store fresh bakery at retail.

Throughout his career, Greg Schlafer has built strong partnerships with several important customers with whom Lamb Weston also does business.

G

The Lamb Weston product range encompasses a wide range of fries, wedges and seasoned potato specialities in unique shapes and various flavours.

“Greg brings a customer-focused approach, 20-plus years of experience in the food industry, and a proven track record of success in the commercial/business-to-business space,” says Paul Maass, president of Commercial Foods for ConAgra Foods.

“I’m confident his leadership will add tremendous value for our customers, our suppliers, and our team as we continue maximizing the long-term potential of this important part of ConAgra Foods’ business.”

Global Leader Lamb Weston is one of the three largest potato products manufacturers in the world. The group employs more than 6,200 people worldwide and produces 3.1 million tons of potato products each year, including 10 million portions of fries per

Weston/Meijer employs more than 1,200 people in six state-of-the-art plants. Five of the plants produce finished potato products and have a combined production capacity of 655,000 tonnes. Three of the productions sites are in The Netherlands at Kruiningen, where the head office is also Lamb Weston is one of the three largest potato based, at Oosterbierum and at Bergen op products manufacturers in the world.

Zoomm. Lamb Weston/Meijer also has sites at Wisbech in the UK and at day in Europe alone.

Hollabrunn and Vienna in Austria.

Lamb Weston operates 19 factories The product range encompasses a wide worldwide and supplies products to quick range of fries, wedges and seasoned potato service restaurants, food service operators, specialities in unique shapes and various including quick service restaurants, retailers flavours. Popular Lamb Weston potato and food manufacturers across the globe in products include Twisters, CrissCuts and the US, Canada, Europe, Middle East, Far Wedges, Private Reserve Fries and Stealth Fries. Most products are sold under the East, South America, Australia and Africa.

Lamb Weston dates back to 1950 when a Lamb Weston brand but the company also potato grower called Gilbert ‘Gib’ Lamb supplies private label products.

Lamb Weston/Meijer has grown both started a company in Weston, Oregon. Gib Lamb is credited with helping to revolu- organically and by acquisition. For examtionise potato processing by inventing the ple, it acquired Dutch potato processing first cutting machine to cut fired under companies Vriezo and Danisco Foods (forhigh water pressure in 1960. Having grown merly Fri dOr) in 2000 and 2001 respecconsiderably, his Lamb Weston company tively before purchasing the Garden Isle was taken over by ConAgra in 1988 with factory in Wisbech in the UK in 2006. In the aim of becoming the world’s largest October 2010, it acquired 74% of Frisch & Frost, located in Hollabrunn (Austria). producer of frozen potato products.

Lamb Weston/Meijer has an impressive track record of product innovation and European Business In Europe, Lamb Weston operates as a successful extensions to existing lines.

50/50 joint venture operation following the From Wedges, Twisters and CrissCuts to decision by ConAgra and Meijer Frozen coated and spiced fries, to sweet potato Foods, the Netherlands-based family fries and potato-based appetizers, Lamb owned potato processor, to create Lamb Weston has been at the forefront of the Weston/Meijer in 1994. development of value-added potato prodMeijer Frozen Foods, which developed ucts in Europe and further afield. from a potato farming The Meijer family business in Zeeland, remains closely involved commenced the proin the running of the duction of branded business. Kees Meijer is frozen potato products co-chairman of Lamb along with private label Weston/Meijer and product in 1985. The chief executive of Meijer business continNetherlands-based Meued to grow rapidly as ijer Beheer. He is also demand for its products President of EUPPA, grew in Europe and in the Brussels-based European Potato Procother regions such as essors Association (EU the Middle East.

PPA). which represents Now the second the potato processing largest processor of frozen potato products Greg Schlafer, the new president of Lamb industry throughout Europe. in Europe, Lamb Weston.

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6.9%.

Furthermore, Lamb per tonne of finished product, and a 30% Weston/Meijer has implemented a reduction in direct energy usage per tonne number of initiatives such as the culti- of finished product. For our main raw vation of algae in the purification of material, potatoes, we will increase the process wastewater and production of potato utilisation by10% per tonne of finits own biogas from residual sub- ished product.” stances.

Bas Alblas continues: “Our sustainability “Our vision is to create approach focuses on shared value in everything we do. This is Lamb Weston has been at the forefront of the development six specific areas of value-added potato products. which are most closely essential to maintain long-term relevance and related to our core to stay successful as a Sustainable Growth activities,” explains Bas company. This is why Like other potato processors, Lamb Alblas, managing director we collaborate with a Weston/Meijer is focusing on reducing its of Lamb Weston/Meijer: variety of stakeholders environmental impact and developing sus- “These are water, energy in several ways. This tainable business practices in three key areas & emissions, potato & waste, employees, food includes consumers and - water, energy and potatoes. customers, employees, It has already achieved its zero waste to safety & quality and nutrigrowers and other suplandfill goal and now leads the sector in this tion & health. We refer to pliers, and our sharearea. Lamb Weston/Meijer is also following these six themes as the holders. We consider its sustainability roadmap in other areas, for ‘Sustainable Six’. For each sustainable thinking and instance by already using 4.8% less water theme we have set ambiacting to be important per tonne of finished product. Since 2008, tious objectives through it has also reduced its direct energy usage 2020, like a 50% reduc- Bas Alblas, managing director of Lamb building blocks of our business strategy.” J by 10.9% and its total carbon footprint by tion in direct water usage Weston/Meijer.

I GREEN PROCESS SOLUTIONS

Innovative Vacuum Drum Dryer Increases Energy Efficiency or the last couple of years Royal GMFF Gouda, the process solutions specialist, has invested significantly in ‘green solutions’ for the development of new machines for the food industry. The latest generation of the vacuum drum dryer is a good example of this investment.

The new GMF-machine makes it possible to dry high viscous fluids and slurries at low temperatures. Residual warmth is used as a heating source. Furthermore, this much compacter, energy efficient machine has no emission whatsoever of dust or smell to the air. In other words - a real green innovation!

Innovation is the driving force behind

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every step that Royal GMF-Gouda takes, as well as its focus on the environment during the development of new machines.

Optimum energy consumption and reducing or even eliminating undesired emission of dust and smells are an obvious result of this.

For drying products at low temperature the main solution until now was spray drying and freeze drying. These technologies are however less appropriate for drying high viscous (thickened) fluids. The new generation Royal GMF-Gouda vacuum drum dryers make this possible. And in a many ways achieves this more efficiently too!

This continuous contact dryer is suitable for drying mostly sticky, thickened and temperature sensitive product, removing high quantities of water at much lower cost, prior to the drying step. This, together with a lower energy consumption of 30–40% compared to the spray dryer, results in considerable savings.

There is no emission of dust or smell to the air, due to the fact that the vapours from the vacuum dryer are fully condensed and no additional air is used.

The use of residual heat at a temperature level of approx. 80 -90 C is extremely energy efficient as well.

Furthermore, the vacuum drum dryers are significantly more compact. Because no air from the environment is used, the HVAC-installation for the drum dryer location is much smaller and less expensive than that for atmospherical drum dryers.

Finally there is a major advantage regarding safety for the users of this machine. Because the vacuum chamber is entirely closed, the turning parts of the machines are fully protected. Another advantage is the optimum hygiene compared to atmospherical drum dryers that are open.

A compact design, low consumption cost, more energy efficient, safer and more hygienic - the new Royal GMF-Gouda vacuum drum dryer is a major innovation.

For further information visit www.gmfgouda. com. J

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I POTATO PROCESSING

Kiremko is World Leader in Potato Processing Equipment iremko and its partner companies are K recognised in the industry as one of the leading suppliers of potato processing equipment, and for many years have worked closely with Lamb Weston. Many of their plants have parts or complete lines built by Kiremko. Particularly in Europe

Fryer.

where Lamb Weston has acquired existing factories which are made up predominantly of Kiremko equipment.

Idaho Steel Products has been supplying blanchers, pre heaters and rotary forming equipment to the plants in North America and recently has supplied along with Kiremko some state-of-the-art frying systems to two plants in the USA. In addition, frying systems have also been delivered to one of the European sites.

Kiremko’s partner Reyco also works closely with Lamb Weston, being the preferred supplier of oil recovery systems known as Oil Misers, placed after fryers and also as a supplier of liquid removal systems, air handling units and pumps for transport systems and hydro cutters.

Indeed, the combined group brings a wide array of services and products to Lamb

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Reyco building in Caldwell.

Weston. Reyco has opened a new facility in Caldwell, Idaho, which will mean its service crews will be four hours closer to the plants based in the North West Pacific area. J

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QUALITY

& HYGIENE

Improving Equipment Performance With Food Grade Lubricants “Working with Petro-Canada has been excellent across the board,” says Needham.

“Throughout our ten years working together, customer service - from technical help to delivery lead time - has been first-rate.”

ubrication programs in food manufacL turing facilities have to go the extra distance to address harsh operating environments and demanding schedules, all while ensuring food safety and quality products for the end consumer. In order to meet these expectations, plant managers know that a long-lasting lubricant is critical to performance and productivity.

Plant Tough, Food Safe Protection With PURITY FG Lubricants

Lubrication Challenges

Quality lubrication is essential to Cadbury’s chocolate manufacturing process. By nature, chocolate is an exceptionally fine and abrasive product. Without regular equipment maintenance and proper lubrication, chocolate contamination of the lubrication system can cause harm to equipment.

In the past, their lubrication process was overlooked with little or no control over lubrication requirements.

PURITY FG Lubricants provide industrial strength protection for food processing applications in food processing plants.

Collectively, the lubricants provide numerous benefits, including longer-lasting protection, excellent wear performance and, when it comes to greases, high resistance against water washout.

Finding the Right Lubricant Solution

Cadbury – Sweet Processing

The Cadbury production facility, located at Chirk near Wrexham, North Wales, houses a cocoa bean processing facility with a floor space of 160,000 sq ft (14,864 sq m). The Chirk site produces over 7,000 tonnes of finished product (drinking chocolate) and around 4000 tons of bulk material (cocoa liquor, cocoa butter, cocoa powder), for use at other Cadbury manufacturing sites per annum.

Cadbury Ltd. enlisted the help of AV Technology to monitor and handle their equipment maintenance. In 2001, Paul Needham of AV Technology, and Reliability Engineer for Cadbury, learned about Petro-Canada’s food grade lubricants.

With help from Petro-Canada’s sales representative, Jim Ross, Needham switched the lubricant used in Cadbury’s Duyvis Cocoa Presses to Petro-Canada’s PURITYTM FG AW 46 Hydraulic Fluid. The hydraulic system in the cocoa press has a capacity of 1,015 litres and works at a system pressure of 510 bars. With this pressure system, and the product’s fine, abrasive powders, a strong lubricant was chosen to protect the equipment.

“Switching to Petro-Canada’s PURITY FG has reduced costs, increased our uptime and improved the performance of equipment,” says Needham. “We have over 10 years of experience with Petro-Canada and we are pleased with the performance that their PURITY FG AW 46 Hydraulic Fluid has provided.”

PURITY FG Lubricants also fit perfectly into Hazard Analysis and Critical Control Points (HACCP) and Good Manufacturing Practice (GMP) plans. In addition, they carry a full set of food-grade credentials which include NSF H1 standards for incidental contact.

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

Results Across the Board

After successfully testing PURITY FG on cocoa presses, Needham made the decision to use Petro-Canada food-grade lubricants for all applications across the Chirk production facility.

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I OPTICAL SORTING

Bühler Unveil New Customer Service Centre in London xcellent customer service has E always underpinned Bühler’s global success, but the opening of a truly world-class customer service centre at its optical sorting centre in East London will help take things to a new level.

“This is just the latest in a series of customer service centres we operate in locations around the world,” says Colin Chaffers, Bühler Sortex director of customer service and technology.

“It’s been designed to enhance our customers’ experience and provide them with the facilities they need in a welcoming and comfortable environment, whether they are with us for training or to see our technology in action while testing their products.”

State-of-the-art Technology

In a significant investment that will benefit customers old and new, Bühler has replaced its previous facilities with a specially designed 500 sq m centre, featuring an applications laboratory, housing a comprehensive range of state-of-the-art optical sorting technology. Colin Chaffers continues: “Our new facilities replicate factory conditions and visitors can see sorting demonstrations of fresh, chilled, frozen, dry and dehydrated foods, as well as non-food commodities such as plastics.”

The centre also has; an applications library, containing the results of all optical sorting samples trialled and tested in London, a laboratory, fully equipped to analyse customer samples and carry out

research projects into areas such as toxins, a meeting room, a customer training centre; and a customer relaxation area, complete with TV, Wi-Fi and refreshments.

Colin Chaffers adds: “We want visitors to feel as comfortable as possible. We want them to see the centre as their London base while visiting us. And it’s not just about the wonderful facilities – it’s also about the knowledge and expertise of our staff, which will also enable them to get the very most from their time with us. The centre is filled with highly trained and experienced engineers, technicians and trainers who are here to help customers find the right solution for their optical sorting needs.”

Customer Reviews

Tatyana Seryakova, Head of Production at Ukraine-based berry processor Tecofood, says: “The new centre is very impressive.

Myself and two colleagues received a week’s training there – we were the first, I believe. My company already uses a SORTEX E1D for sorting frozen blueberries, but we want to be able to use it for sorting lingon berries, too, which is why we came for training.”

At the centre, visitors can sort their frozen products without defrosting or damaging them, because Bühler’s ambient temperature controls are capable of replicating the temperatures of frozen food processing plants.

Staff from Soufflet Alimentaire, one of France’s largest food groups, have also experienced the new centre.

Group Engineer, Alain Caudron, explains: "We’ve been a Bühler customer for years – we made our first visits to London for demonstrations and training in the 1980s.

The new facilities are exceptional. Bühler’s people really are knowledgeable, helpful and welcoming – we felt like much more than guests. The training was excellent and the training room itself was superb.”

Similarly impressed is Spain-based PET producer Novapet - a Bühler customer for over 20 years. PET (polyethylene terephthalate) is the clear, lightweight plastic used to package foods, beverages and other consumer items. Fernando Palacio Sanz, Polymers Production Manager at Novapet who visited London to trial their products, says: “The facilities were impressive and the staff at the centre were great - they couldn’t have been more helpful.”

Easily Accessible

Colin Chaffers adds: “Early customer feedback has been extremely positive. Located minutes from London City Airport and close to motorway networks, it’s really easy to get to the centre, so we’re hoping to welcome many more visitors from the UK and overseas in the coming years.”

The Bühler Group is a global leader in process engineering and is particularly active in production technologies for food manufacture and engineering materials. It operates in over 140 countries and has over 8,000 employees worldwide. In fiscal 2011, the Group generated revenues of more than SFr2.0 billion. J 36

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I TRACEABILITY

Full Traceability Solutions From Emydex mydex specialises in the production of E management software for food manufacturers to manage and report on all stages of their food production processes, allowing for full traceability of products from field to fork.

Working in partnership with food companies, Emyex has designed and developed comprehensive end-to-end production management solutions for sectors such as beef, lamb, pork, poultry and seafood processing, for both primal and retail customers. However, its solutions can be tailored to meet the requirements of all sectors of the food industry.

Emydex has amassed vast experience of delivering production and traceability solutions to the food industry. Established in 2004, Emydex currently employs 24 people and has supplied systems to large and multisite food groups such as Kepak and Dawn Meats in Ireland (see Panel) as well as Dunbia Group and Moy Park in the UK. Indeed, Emydex production management software systems are presently running in over 40 plants, spread across Ireland, Northern Ireland, England, Scotland, Wales and France. Emydex is also expanding into other international markets.

Emydex scanning system for order picking from stock.

can choose to maintain the traceability at individual animal level or group together a number of carcasses into a batch. The Emydex traceability record for that batch can include the full traceability record for each carcass in the batch. Similarly, when boxed primal meat is delivered from a cutting plant to a packing plant the full traceability records can be sent to the packing plant.

“Any quality results recorded on an Emydex system against the products at any part of the food chain can be retrieved and related to the traceability record on request,” he says. “This means that any user (or customer of a user) of a full Emydex traceability system has a system capable of retrieving the full traceability history of any product they have produced.”

Emydex individually tailors its software solutions to be configurable and customisable to completely match client needs.

Consequently, Emydex management software solutions are easily integrated into third party systems.

Emydex software running on Packing

Benefits

Terminals at Oliver Carty.

“Processors benefit by getting a real time view of exactly what is happening in the plant, KPI dashboards enable management by exception, and systems integrate seamlessly with accounting and ERP programs, enabling performance to be evaluated from both a yield and a financial view point,” he says.

Product labelling is put under central control and correct labels/packaging can be verified against each production run as part of QC operations. Using Emydex to record QC data enables a central storage, retrieval and analysis system with relationships to individual production runs.

Peter Kettell elaborates: “When Emydex is implemented from the front door to the back door of a plant the system delivers full

‘Door to door’ Open System

“Traceability legislation requires that each stage in the food chain must as a minimum be able to trace their products one step back and one step forwards in the food chain.

Emydex systems maintain every aspect of traceability throughout an operation and can pass the full traceability records onwards to the next step in the chain,” points out Peter Kettell, UK Sales Manager of Emydex.

For example, Emydex abattoir customers are able to record full traceability back to the individual animal, and this full carcass record is passed onto cutting plants, enabling full traceability. The cutting plants

traceability analysis. In case of product recall the system can trace when a product was produced, on what production line, what processes were used in the creation of the product, what raw materials were used and where they came from.”

Emydex is a fully open system, enabling food processors full access to all information and the ability to use the data for third party applications or even by in-house programmers however they see fit. The system includes direct links for transferring data to Microsoft Office programmes, PDF files, CSV files and email.

Hardware Independent

Emydex only develops and deploys software solutions and is completely hardware independent. “Our success is solely dependent upon the quality and functionality of the software solutions we provide. We do not use our software offering to help sell our hardware as we do not have or indeed sell any hardware,” remarks Peter Kettell.

Emydex order picking software running on hand held terminal.

Emydex software and systems will run on any PC based data entry terminals running Windows XP, Windows 7 or Windows 8 and any hand held devices running Windows mobile. The company currently has interfaces for over 30 of the most common weight indicators from various manufacturers. Whilst Emydex software is optimised for use with Intermec label printers, it can utilise any printer with a Nice Labels or Windows driver.

Hardware independence enables users to choose the best of breed hardware to suit each application, saving money by sourcing hardware direct and re-using existing hardware where possible.

Vast Experience

Peter Kettell continues: “Whilst Emydex are hardware independent we are not hardware

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Emydex Roll-out in Dawn Meats Group An Emydex customer since 2007, the Dawn Meats Group is one of the largest suppliers of Irish and British beef, pork and lamb in Europe. Dawn Meats began rolling out Emydex’s Production Management software system across the group during 2008. Five years later, Emydex continues to operate as the group standard factory floor data capture and production and traceability reporting system in 11 of the 13 plants within the group, including Dawn Meats France.

From carcass intake, through boning, further processing, packing, box stock and dispatch, Emydex captures and reports on production data, enabling Dawn Meats to analyse and manage their stocks, yields and dispatches, whilst maintaining full food chain traceability.

Shane Slattery, Group IT Manager with Dawn Meats, comments: “Emydex is a central pillar of our strategic IT plan going forward, and our goal now is to concentrate on completing the roll-out of Emydex to our primary processing sites by year end. This plan may seem aggressive, but we believe that it is achievable on account of the inherent flexibility of the core Emydex product to handle any differences in the business processes required in our disparate sites.”

Data entry using touch screen terminal running Emydex software.

ignorant. Emydex senior management has over 135 years of experience in the specification and supply of weighing equipment, labelling equipment, data capture equipment and software systems to the food industry, this enables us to make solid recommendations on the hardware to be considered, including the prices a customer should expect to pay.”

He adds: “Our management, software design and implementation teams are composed of people with many years working in the food industry, we understand the issues that our customers are trying to solve, this makes purchasing from Emydex a stress free exercise as we do not have to go through the learning curve of understanding the industries with which we work.”

Recent Installations

In the past twelve months Emydex has implemented production management and traceability solutions at abattoirs and cutting plants belonging to the Dawn Meats and Dunbia groups, at cooked meats manufacturer Green Farm Foods, sausage manufacturer Mallon Foods, and bacon manufacturer Oliver Carty. Emydex has also implemented full recipe formulation and traceability at two of Dawn Meats’ convenience foods plants. J

Emydex carcass inspection software running on tablet PC.

I TRACEABILITY

Call For Seafood Traceability to Fight Illegal Fishing groundbreaking statement issued at Iingntheainrecent World Economic Forum meetDavos, Switzerland, WWF has joined private and public sector leaders in calling for a new global seafood traceability system to give consumers, businesses, and governments full access to information about marine fishing practices. The statement is the first multi-stakeholder call for such a system, and could herald an important role for the World Economic Forum in support of sustainable fisheries.

The statement, issued by the Forum’s Global Agenda Council on Oceans, recognizes the urgent need for tracing fish products from ‘bait to plate’ as a means for linking markets to sustainable fishing practices, and for ending the illegal fishing 38

that continues to be a major driver of fisheries depletion.

The world is facing an unprecedented crisis of overfishing, with nearly 87 per cent of the world’s commercial fisheries now fished to or over maximum levels, according to the United Nations Food and

Agriculture Organization.

Meanwhile, experts estimate that 20 per cent of worldwide fish catches come from illegal fishing practices. Solutions depend heavily on giving market actors and regulators reliable information to know which fish products are legal and sustainable and which are not. But currently, access to this information and the mechanisms needed to trace wild caught fish to their origins are the exception rather than the rule.

Creating a reliable system for seafood traceability will require harmonizing both regulatory and commercial practices across national boundaries and across subsectors of the seafood industry, ranging from small scale producers in developing countries to the major retail chains and brand owners in the European Union, US, and Japan. J

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I TRACEABILITY

When Quality Management and Traceability are Important – Data Integration is Crucial he effective management of quality and T traceability information is critical to the strategic and competitive success of food manufacturers. Demonstrable traceability, rapid response and product recall capabilities are crucial to gaining a competitive advantage.

Meeting current traceability and food safety challenges demands a previously unprecedented level of information management throughout all operational areas. It means creating the physical and operational conditions necessary for enforcing validation and quality rules and using available technology to effortlessly access traceability data in real-time and support complex grade allocation and audit challenges.

In many of today’s food manufacturing facilities, the degree of data integration and lot specific information necessary for endto-end traceability does not exist. Typical areas of concern include: • A lack of real-time yield and quality profile on raw materials and ingredients.

This critically undermines a company’s rapid response capabilities.

• A lack of integration between the intake measurement system and the ERP’s stock records, plant automation data, quality management and traceability system.

This results in a lack of real-time validation and control.

• Key manufacturing data held in disparate systems and manual records.

• No central quality management system handling data to sub-batch level and tracking product movements by quantity and batch code. This results in a deficient data link between bulk finished products and their physical packing.

• A lack of real-time quality validation to ensure that the traceability chain remains intact and cannot be compromised.

SoftTrace: An Integrated Traceability and Quality Management Solution

The SoftTrace suite of software modules has been developed to address the Food industry’s quality, traceability, product safety, yield, and risk management challenges.

SoftTrace seamlessly integrates all critical quality, manufacturing and business data to guarantee bi-directional traceability from raw material intake through in-process to finished goods, storage and dispatch. This is achieved by focusing at plant level to track and integrate all relevant data and manage quality in real-time throughout the process.

SoftTrace’s capabilities are proven in the field. Customers in Ireland, UK and USA include Kerry Group, Glanbia, Lakeland Dairies, Pritichitts, Dairygold, Arrabawn, Carbery, FMC BioPolymer and Irish Dairy Board.

At customers’ facilities the SoftTrace Weighbridge, MilkData and LIMS modules control and trace all raw materials released into the process. Data from milk tankers is imported into MilkData for verification against weighbridge loads. MilkData maintains a full profile of farm collection, compositional analysis and farmer payment data. This is integrated with data captured by the Weighbridge module to complete intake reconciliation and track milk into silo batches. Full integration with SoftTrace LIMS provides real-time access to tanker and silo analysis data for determining process / product suitability.

Integration with the In-Process module extends traceability to the in-process batches and bulk fin-

ished product. Integration with the Inventory Management module establishes an electronic link between the process control, packing, quality and inventory records and provides traceability on finished goods to pack and pallet level. The Inventory Management module holds a quality and grading profile of finished goods inventories to sub-batch level. Traceability to the customer is maintained to unit level – completing the electronic traceability chain from source to customer.

A Modular System to Meet a Range of Requirements & Budgets

SoftTrace is a modular system designed to grow with each customer’s business needs.

It integrates with process automation and ERP systems and with existing hardware (weighbridges, barcode printers, analytical instruments etc) to ensure users leverage any investments made to date. While SoftTrace can be implemented as a standalone system, greater benefits can be achieved when it is integrated with existing systems to link all critical data in one data collection and management system.

More Than Traceability

Technologies, such as SoftTrace, are transforming traceability from a burdensome expense to a mission critical solution capable of improving the bottom line.

Traceability software, built on a central database technology, provides food manufacturers with the opportunity to efficiently leverage internal logistical and quality related information and achieve tangible levels of performance improvement in areas such as production efficiency, labour costs, yield management and product value optimisation. J

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QUALITY

& HYGIENE

I TRACEABILITY

Detector Delivers Assurances to Raw Ingredient Supplier – With Over 100 Tonnes Inspected high frequency metal detector from A Lock Inspection Systems has successfully assisted one of the UK’s leading raw ingredients suppliers in meeting stringent BRC standards, inspecting over 100 tonnes of ingredients since its installation.

Stockport-based EHL Ingredients is an importer, blender and packer of ingredients from around the world, including China, Turkey, Sri Lanka and Mexico. From herbs and spices, to beans and pulses and dried fruit, the company supplies over 300 food ingredients to all areas of the food industry in the UK and Ireland and boasts a 200strong organic range as well as over 50 custom blends.

“Along with UK stock we import vast quantities of ingredients and anything that we pack and blend ourselves goes through a metal detector to adhere with BRC stan-

dards and satisfy our own quality control criteria,” explains Mike Perrin, Technical Manager at EHL Ingredients.

To meet specific customer requirements, the ingredients are packed into bags from 1 kilo through to 25 kilos in weight - all of which are checked by the end of line metal detector. Rob Gray, of Lock Inspection Systems, comments: “The metal detector

installed at EHL’s Stockport site is Lock’s MET30+ Universal detector which has been designed to accommodate a wide range of pack sizes and has a one touch product recall for each recipe set-up to assist production staff with quick changeovers.”

The MET30+ Universal metal detector is capable of detecting ferrous and non-ferrous metals as well as high grade stainless steel contaminates. "Metal detection is an integral part of our quality assurance process.

The Lock detector has high frequency tuning, which means that the line automatically stops when an article has been detected enabling us to quickly investigate the incident and particle helping to preserve product integrity and give us ultimate product confidence,” adds Mike Perrin.

For further information visit www.lockinspection.com. J

I ALLERGEN MANAGEMENT

FoodDrinkEurope Launches Guidance on Food Allergen Management oodDrinkEurope has launched its F Guidance on Food Allergen Management for food manufacturers. The first Guidance of its kind sets out general principles to manage specific pre-prepacked foods causing allergy or certain intolerances and provides sound, evidencebased and consistent information on good practice in risk management of allergenic foods for producers.

FoodDrinkEurope is at the forefront of recognising that food allergies and intolerances are a food safety issue and allergen management should be an integrated part of food safety assurance strategies. Scientific understanding of the risk from food allergens has grown over the last 20 years. This Guidance goes a long way to helping food companies to develop a consistent understanding of the risk from allergenic foods across the industry and to fulfill their responsibility to establish a food safety management system which is compliant with legal requirements.

As general guiding principles, they can be 42

FoodDrinkEurope Guidance ensures a consistent understanding of, and approach to, managing allergens and certain food causing intolerances to a high standard throughout the European food industry. This will help minimise the risk to allergic consumers and enable consumers to make informed product choices.” J readily adapted to different product process and production facility designs to provide information about food allergy and food allergens and to indicate their importance as food safety hazards.

Food labelling legislation has led to significant improvements in informing consumers with food allergies and food intolerances about the nature and composition of foods before purchasing. The guidance also includes information on developing approaches to the application of advisory labelling.

FoodDrinkEurope President, Jesus Serafín Perez comments: “By harmonising and disseminating good practice across the European food industry at all levels, the

FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2013

Jesus

Serafín

FoodDrinkEurope.

Perez,

President

of

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I FLOORING

Value Engineering Key to Sustainable Future at £30 Million Eco Factory ull flooring firm Lasercroft specify BASF flooring package, with H Ucrete UD200 and Mastertop 1325 comfort flooring amongst premium materials and equipment chosen for Kanes Foods new eco factory.

The project, the vision of the late Dr John Randall whom the building is now named after, was overseen by Kanes Engineering Director Clive Champion. At the design stage cheaper alternatives were considered, but any savings to be made were seen as short sighted.

Lasercroft has a proven track record, with many thousands of square metres of UD200 being laid on site over the years, whilst the Mastertop 1325 is expected to far outlast its vinyl counterparts and can also be recoated in a simple operation as and when renovation becomes necessary – reducing long term waste and life cycle costs.

The importance of value engineering and sustainable materials was part of Dr Randall’s remit. Long term sustainability of the environment was to be treated as of equal importance to that of the company. This meant that along with state-of-the-art process machinery inside the factory there was a whole host of green features which work, and respect, the surrounding countryside Most impressive of the green features is the huge curved green roof, thought to be the largest in the UK which assists in the capture of rainwater to be used within the factory. Other green features include walls constructed of hempcrete blocks and use of geothermal heating.

The scope of work for Lasercroft involved shot blasting concrete bases before laying polymer modified screed to create falls, then laying approximately 4,000 sq m of Ucrete UD200 to the production areas. The Amenity areas to which the Mastertop 1325 was applied consisted of numerous smaller areas and corridors, all of which required coved skirting for hygiene reasons. J FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2013

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I TANKS & VESSELS

Spectac – The Specialists in Stainless Steel About Spectac

pectac has been in business for more S than 25 years and is a leading manufacturer of stainless steel vessels, tanks and equipment for the food and beverages, pharmaceutical, chemical, brewing, distilling and dairy industries.

Established by Managing Director

44

Tony Healy in 1986, Spectac is the largest stainless steel manufacturing company in County Louth, conveniently located in Dundalk, between Dublin and Belfast, and within one hour’s distance from both. Tony has worked in the stainless steel industry for over 40 years and has knowledge and experience that has won Spectac clients all over Ireland and Europe.

Over the years Spectac has grown considerably by investing in new technologies and operations. Spectac deals with clients all over Ireland, Northern Ireland, the UK and Europe.

Spectac is part of the ISO certification in Occupational Health and Safety 18001:2007, Quality Management 9001:2008, Environmental Management 14001:2004, and is also part of the quality and safety standards of BSI.

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Pressure Vessels

Spectac specialises in the design and manufacture of pressure vessels. Pressure vessels are manufactured according to ASME code or the new European PED regulations and where applicable, they can be stamped with the CE mark.

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installing, modifying and upgrading pipework systems, ie steam and condensate lines, product lines, CIP Skids, etc.

Spectac’s range of capabilities includes jacketed pipework, insulated and clad pipework, fitting instrumentation and auxiliary equipment and much more.

Spectac’s experienced site work teams are able to conduct site work independently, always with the client’s requirements in mind. All of Spectac’s operatives are well trained and have experience with a wide range of tasks in the dairy, food, brewery, chemical and pharmaceutical sectors.

Spectac can deliver all of its products to site, install them and test them. J

To design pressure vessels, Spectac uses state-of-the-art software, which allows the company to evaluate the design efficiently and precisely.

All pressure equipment is tested at Spectac’s premises using certified equipment. When required, Spectac can provide third party certification and approval.

Tanks and Silos

Spectac produces all kinds of tanks, including ordinary rectangular, food grade tanks with conical tops and bottoms, openable and accessible tanks, silos etc for a wide range of specifications and requirements.

Spectac specialises in products aimed at the dairy, food and drinks industry, which means the company is able to meet all common requirements and propose proven solutions.

If required, tanks can be insulated with a choice of materials, such as Rockwool, polystyrene or other types of insulation and clad with either stainless steel or aluminum cladding.

Onsite Services

Spectac has extensive experience with

Steinecker Builds One of the World’s Biggest Lauter Tuns rones’ Steinecker plant is currently manK ufacturing the biggest brewing vessel in its history - a stainless steel lauter tun called “Pegasus C”, measuring 14 metres in diameter and weighing around 70 tons. The “Pegasus C”, in which during the brewing process after mashing the liquid wort is separated from the solid spent grains, holds 144,000 litres of liquid with a fill level of one metre.

It belongs to a huge order placed by one of the world’s premier beverage producers, as part of a modernisation project for a prestigious, long-established brewery in Dublin, and covering three complete brewing lines.

Together with two more lauter tuns, each 11.5 metres in diameter, the “Pegasus C” will constitute the heart of the brewery. On-site commissioning will be completed towards the end of 2013, after which the client will possess Europe’s largest

brewing facility.

In order to meet the tight deadline, the staff at Krones’ Steinecker plant worked three shifts for about six weeks on the “Pegasus C”. This lauter tun is basically a standard model. What is unusual is its massive size and the polished insulating hood stipulated by the client. It has only been

possible to produce such large brewing vessels at Krones’ Steinecker plant in Freising since the beginning of 2012, when the new pickling shop was completed. The two parts of the 14-metre lauter tun were riveted and polished, and after that separated again for pickling and transport. Together with the transport frame, each part will measure 7.50 x 14.30 metres.

The complete order covers a total of around 60 extra-wide/extra-high packing units, which will have to be moved with heavyhaulage trucks. They will be loaded onto inland waterway barges in Deggendorf and transferred to ships in Rotterdam. Other parts will go via Munich by train to Rotterdam. And more than 1,000 packing units are being delivered by truck. A massive logistical challenge, particularly since the brewery is located right in the heart of Dublin. J

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I DEVELOPMENT STRATEGY

Danone Plans to Regain Competitive Edge in Europe Danone is preparing a cost reduction and adaptation plan to win back its competitive edge in Europe in order to tackle a prolonged downturn in the economy and fragile consumer sentiment that have led to a significant decline in the global food and beverage group’s sales in the region. he rehabilitation plan in Europe will be spread over two years and aims at adjusting costs in accordance with the new trading environment within the region. It will seek to reduce general and administrative costs for the group and its European subsidiaries, and adapt management organisation in Europe, which was designed for a growth environment. The restructuring is expected to generate savings of around Eur200 million in Europe.

Franck Riboud, chairman and chief executive of Danone.

At organisational level, the plan will address management structures and support markets. However, Danone’s traditional functions. It will be based on voluntary heartland of Europe, which still accounts measures and internal mobility will be the for over 40% of group sales, is proving priority. This project will be submitted to problematic.

Works Councils by March 2013.

Combined with ongoing productivity Faltering Sales programs, this plan will free up resources to Danone’s sales in its Europe region have make Danone products and brands more been faltering for some time. This decline competitive. accelerated in the third quarter of 2012 as sales in Europe fell Fast Growing by 1.5% in stark contrast to Danone is one of the fastest-growing food Danone’s Asia and Rest of the companies in the world. The group’s prod- World regions where sales ucts are sold on five continents, it has more growth was 18.3% and 10.5% than 180 production plants and employs respectively. about 100,000 people. The group has four For instance, within the businesses - Fresh Dairy Products, Baby Fresh Dairy Products division Nutrition, Bottled Water, and Medical overall sales were up 0.7% on Nutrition. a like-for-like in the third More than half of Danone’s annual sales quarter of 2012. However, of ?19 billion in 2011 were in emerging sales at Danone’s dairy operations in Europe fell back sharply as conditions deteriorated in Southern Europe, particularly Spain and Italy, where sales declined by over 10%.

According to Pierre-Andre Terisse, chief financial officer of Danone: “The performance is very much the reflection of the geographical transformation of the group, with on one hand very strong dynamics in our growth markets in Americas, Asia Pacific, CIS, Middle East and Africa, and on the other hand Europe under pressure.”

For the first nine months of 2012, sales grew by 18.2% in Asia and by 11.3% in Rest of the World but were down by 0.6%

T

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in Europe. Despite the difficulties in Europe, Danone is set to achieve its full-year targets for 2012.

“Danone has posted a solid growth in turnover for the first nine months of 2012, in line with its annual objectives, thanks to very robust sales throughout the world. Europe is the exception as consumption remains under pressure,” comments Franck Riboud. The Danone chairman and chief executive continues: “In this context, our priorities are clear - continue to deploy our model in growth regions by investing in our product categories, our brands and our people. In Europe, we need to adapt our model to the slump of consumption and to the needs of our consumers, while building new sources of growth. Our teams will pursue these priorities with determination.”

Forty Years in Business 2012 marked Danone Group’s 40th ‘official’ year in business.

The French food and beverage group was created from two businesses founded by Antoine Riboud and Daniel Carasso.

BSN and Gervais Danone joined forces to create Danone in 1972.

“We still have the intangible riches we inherited from them - the drive to win new territory and build a stronger company.

An entrepreneurial spirit, with the culture and instincts that go with it. Strong values. Plus our willingness to meet and overcome adversity - to take on new challenges, to bounce back every time, to innovate and develop brands acclaimed by consumers around the globe,” comments Franck Riboud. “Obviously we have changed a lot in forty years, but Danone is still Danone. We’ve changed our look, our shape and our size, but we still have the same character and the same DNA. We’re fast on our feet. Our people are confident and empowered.” J 47

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Tate & Lyle Launches Dedicated Open Innovation Portal ate & Lyle, the global provider of ingreT dients and sweeteners group, has launched a new, dedicated Open Innovation web portal. The new portal, which can be found at www.tateandlyleopeninnovation.com, is designed to encourage universities, start-ups and companies specialising in food science to submit proposals which are aligned with Tate &

Lyle’s innovation priorities of sweeteners, texturants and health and wellness.

Tate & Lyle’s Open Innovation team, which forms part of the Innovation and Commercial Development group, leverages its global network to develop partnerships with entities specialising in food science with the aim of successfully and rapidly commercialising new speciality food ingredient products and technologies. A number of deals have already been announced since the Open Innovation team was formed in 2010 and some strong partnerships developed.

John Stewart, Open Innovation Manager at Tate & Lyle, says: “We value our partnerships enormously but also understand that approaching large corporations with a new innovation can be daunting. This is why Tate & Lyle has a small, dedicated

team to help with the process. Our new website enables potential partners to submit ideas quickly and easily and for innovators to work with us to create long-term ‘winwin’ relationships.”

Karl Kramer, President of Innovation and Commercial Development at Tate & Lyle, says: “With our Open Innovation team we can put all the expertise and commercial resources of Tate & Lyle behind the brilliant ideas of academics, inventors or business partners. With this new web portal we are making it even easier for potential partners to connect with our Open Innovation team, and we encourage them to approach us with their ideas.” J

IOI Loders Croklaan Europe Prepares For Sustainable Palm Oil Growth in 2013 OI Loders Croklaan, one of the world’s leadIipating ing suppliers of sustainable palm oil, is anticongoing growth in the use of sustainable palm oil in Europe. Consumer demand for pure and natural products looks set to continue, and food manufacturers can easily respond to this by using palm oil that has been produced in an honest, sustainable way.

In order to prepare for the expected growth in an effective and principled way, IOI Loders Croklaan Europe has again set ambitious goals for itself in terms of sustainability. In 2013, the company plans to increase its volumes of certified sustainable palm oil to 30% of total sales. IOI Loders Croklaan’s sustainable oil is primarily produced by its parent company, IOI Group in Malaysia. The group expects to

have the last of its plantations certified according to the standards of the Roundtable for Sustainable Palm Oil (RSPO) by the end of the year.

In 2010, IOI Loders Croklaan became the first company to offer the European market RSPO-certified palm oil. As of 2012, all of the company’s palm oil products became

available as new, alternative versions that are certified according to the ‘RSPO Mass Balance’ system. IOI Loders Croklaan Europe already offers some products that are certified according to the even stricter ‘RSPO Segregated’ system as well.

Hidde van Kersen, IOI Loders Croklaan Sustainability Director, comments: “As the largest importer of sustainable palm oil in Europe, we offer a wide range of RSPO certified palm oil products, for both food and non-food markets. With our supply chain stretching from the plantations to the refineries, we know the origin of our oils. This gives us the best position to help our customers implement their sustainable sourcing strategies.” J

Cargill and Arasco to Form Starches and Sweeteners Joint Venture argill and Arasco intend to create a new C starches and sweeteners joint venture in the Kingdom of Saudi Arabia. The new joint venture company will acquire Arasco’s existing corn milling facility in Al Kharj and will produce starch based products primarily for the Gulf Cooperation Council (GCC) countries of Saudi Arabia, UAE, Kuwait, Oman, Qatar, Bahrain, as well as 48

Yemen, Iraq and Jordan.

This joint venture will mark Cargill’s first operations in the Kingdom and will build on Cargill’s global capabilities in food ingredients and Arasco’s already proven successful local knowledge and supply chain infrastructure.

Cargill will take a 20 percent stake in the joint venture, while Arasco will take an 80

FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2013

percent stake and management control. The agreement is subject to regulatory approvals. J

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