Food & Drink Business Europe

April 2012

Kraft Foods Europe to play central role in Mondelez International

Food & Drink Business Website:

www.fdbusiness.com

C o n t e n t s

- 3 C OVER S TORY

- 39 B ISCUITS & S NACKS

Kraft Foods Europe to play central role in Mondelez International.

United Biscuits prepares for separation prior to disposal.

Mondelez International is new name for Kraft’s global snacks business.

- 9 B REAKFAST C EREALS PepsiCo increases investment in Quaker Oats.

Tim Cofer, president, Kraft Foods Europe.

Bakery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26-28 Soya-based Ingredients . . . . . . . . . . . . . . . . . . . . . . . . 31

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Caroline Sikking, sustainability manager, Cargill Processing & Manufacturing . . . . . 10, 23-25 Bakery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23-25 Refined Oils Europe.

Energy & Environment . . . . . . . . . . 8 & 37

Square way forward.

Acquisition of Cumbrian Seafoods approved.

Donegal Catch supports Irish fishing industry with Responsible Irish Fish partnership.

UK bakery..

R EGULARS Materials & Ingredients. . . . . . . . . 6, 26-33

- 11 M ARKETING

- 13 S EAFOOD

P AGE 19

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Information Technology. . . . . . . . . . . . . 40

Irene Rosenfeld, chairman & ceo, Kraft Foods.

Storage & Distribution. . . . . . . . . . . . . . 43 Customer-focused supply chain solutions from Norish.

Bottling & Packaging . . . . . . . . . . . . . . . . 47 Materials Handling . . . . . . . . . . . . . . . . 48

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Benoit Testard, ceo, United Biscuits.

- 15-28 B AKERY European Bakery market remains fragmented.

Managing Director: Colin Murphy Editor: Mike Rohan Sales Director: Ronan McGlade Advertising: Susan Doyle, Neela Desai, Kieran Kenny. Senior Sales Executive: Paul Lees Production Manager: Susan Doyle

Top 100 Bakery Manufacturers in Western Europe.

NPD keeps UK bread and bakery products market fresh.

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Richard Evans, president, PepsiCo UK & Ireland.

S USTAINABILITY Encouraging greater use of sustainable palm oil.

Profits and revenues rise at Lakeland Dairies.

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FOOD & DRINK BUSINESS EUROPE, APRIL 2012

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COVER STORY

Kraft Foods Europe to Play Central Role in Mondelez International Kraft Foods Europe will play a crucial role within Mondelez International, the $35 billion turnover global snacks business, which will be spun off from Kraft Foods’ North American grocery operation later this year.

K

raft Foods Europe employs more than 24,000 people and operates 60 manufacturing sites. The business enjoys leadership positions in five core product categories (biscuits, cheese & grocery, chocolate, coffee, gum & candy) in 17 countries in Western Europe (Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom).

Tim Cofer, president of Kraft Foods Europe. “Last year, for example, our 15 ‘power brands’ in Europe grew 7 percent, fueling organic revenue growth of 4.6 percent. That’s well above many of our European competitors. We also improved our share performance. In fact, we grew or held market share in categories representing three-quarters of our revenue.”

In terms of costs, Kraft Foods Europe’s productivity savings improved to more than 4 percent of cost of goods sold, driven by ‘Lean Six Sigma’ gains in manufacturing.

Powerful Brands The business has made strong progress in Kraft Foods Europe has a strong portfolio tackling overhead costs. Last year, overof long established international and heads as a percentage of revenue declined regional brands with more than 25 of them by 150 basis points from a combination of at least a hundred years old. The group’s focused cost management and synergies. strategy is to focus on 15 ‘power brands’ He continues: “As a result of these savwithin its five core product categories ings, we’ve continued to invest in advertisMilka, Cadbury, Cote d’Or, Toblerone Tim Cofer, president of Kraft Foods Europe. ing, marketing and new products. And (chocolate), LU, Oreo, Belvita, Milka bisthat’s why we’re outperforming our peers. cuits and Cote d’Or biscuits (biscuits), Trident and Halls (gum For example, we’ve introduced several successful innovations, & candy), Tassimo, Carte Noire, Jacobs and Kenco (coffee), and including Philadelphia with Milka, which has delivered strong Philadelphia (cheese & grocery). growth in Germany, Austria, Italy and Switzerland. And we rapidly captured market share in the small bites chocolate segFinancial Performance ment. This is a terrific example of revenue synergy. We took a Continued investment behind its power brands, new product highly successful Cadbury product idea and rolled it out on the innovation and a clear focus on cost management drove strong Continent under favorite local brand names, like Milka, Freia revenue and profit growth at Kraft Foods Europe last year. The and Marabou.” business increased net revenues by 14.9% to $13.4 billion and operating income by 26.1% to $1.4 billion in 2011.

Kraft Foods’ Veteran “In fact, through Tim Cofer became president of Kraft Foods Europe last August, the end of 2011, following the deparwe’ve now delivered ture of Michael Cleight consecutive arke to become head quarters – that’s two of Premier Foods in full years – of simul- the UK. A Kraft taneous top- and Foods’ veteran with bottom-line growth. twenty years of serAnd that’s despite vice, Tim Cofer has the current Eurozone progressed through crisis and deteriorat- the ranks, holding a ing consumer confi- variety of marketing, Kraft Foods Europe is the leading confectionery dence in many marstrategy and general With a market share of more than 15%, Kraft Foods company in Western Europe. kets,” points out management posi- is the leading biscuit manufacturer in Europe.

FOOD & DRINK BUSINESS EUROPE, APRIL 2012

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tions. Before taking the helm at Kraft Foods Europe, he was senior vice president of the Global Chocolate Category Team. He has served in Europe before and is credited with turning around Kraft Foods’ $3 billion EU chocolate business between 2003-2006 after years of stagnation.

Cadbury Integration The $19.5 billion acquisition of Cadbury in 2010 has considerably strengthened Kraft Foods and its global snacks business, making it the world’s largest confectionery manufacturer, allowing it to overtake Mars, which had occupied top spot after purchasing Wrigley in 2008. The deal made Kraft Foods Europe the leading confectionery company in Western Europe.

“The Cadbury acquisition is delivering on its promise. I see very favourable impacts on three levels – top line, bottom line and people/culture.”

“The Cadbury acquisition is delivering on its promise. I see very favourable impacts on three levels – top line, bottom line and people/culture. Across the company, we’ve already generated about $400 million in revenue synergies. And, we remain on track to deliver our targeted $1 billion in revenue synergies by the end of next year,” says Tim Cofer.

Indeed, as senior vice president, strategy and integration at Kraft Foods, Tim Cofer headed the global integration team following the acquisition of Cadbury in early 2010, before moving on to head Kraft Foods’ Global Chocolate Category Team prior to taking up his present post.

In terms of cost synergies, Kraft Foods has already achieved more than 80 per cent of the original $750 million target from the integration of Cadbury. “In Europe, for example, we’ve done a terrific job putting in place one organisational structure in the majority of our EU markets. Given our progress to date, we now expect to deliver $800 million in total synergies by the end of this year. That exceeds our original savings target and does so about a year ahead of schedule.”

Tim Cofer elaborates: “Equally important is the impact on our talent, bench strength and culture. We took a very deliberate ‘best of both’ approach on the integration. I have multiple members of my leadership team from legacy Cadbury and we have the found the blending of our values and culture a catalyst for even higher performing team dynamics – performance driven, values led.”

Strengths and Weaknesses So what type of a business did Tim Coffer take over in August 2011? “When I came back to Europe last summer to lead our business here, I observed many strengths - a strong team, good revenue momentum and excellent work on the integration of Kraft and Cadbury,” he replies. “I’m proud that we’ve been able to build on that momentum by accelerating growth; stepping up our focus on managing costs and importantly building our team 4

toward a highly engaged, empowered and aligned workforce.”

He continues: “We’ve made great progress in most of our categories, including chocolate, biscuits, coffee, cheese and grocery. However, we still have some challenges, particularly in gum & candy. This category has been especially hard hit as a result of the macro economy, specifically, by the tough situation in the Southern European markets. We’re fixing these issues with more product innovation, improved marketing and point of sales excellence and better meeting the price points that consumers can afford in this difficult economy.”

Cost Management As part of its focus on cost management and extracting synergies from the Cadbury acquisition, Kraft Foods Europe is investing £50 million across its confectionery factories in the UK while cutting the workforce by 200 people. The 200 jobs will be shed at the former Cadbury sites at Bournville in Birmingham, Chirk in Wrexham, north Wales, and Marlbrook in Herefordshire.

Kraft Foods Europe is investing £44 million in a range of projects to upgrade infrastructure, speed up production, reduce waste and improve energy efficiency at its three UK chocolate confectionery manufacturing sites over the next two years. It is also spending £6 million on a new biscuits line at its sugar confectionery site in Sheffield to facilitate the manufacture of Oreo and BelVita biscuits in the UK for the first time.

Investment in R&D In line with its strong focus on innovation, Kraft Foods Europe has also been investing heavily in its R&D infrastructure. Europe is the home of many of Kraft Foods global snacks categories and consequently will be central to future new product and process development within Mondelez International.

The Chocolate Global Centre of Excellence and the Coffee Global Centre of Excellence are both based in the UK at Bournville and Banbury respectively. The Gum & Candy R&D Centre is located at Eysins in Switzerland and a new Biscuits R&D Centre was recently opened at Saclay in France. Regional application centres supporting R&D are also based in Munich and Lorrach in Germany, while the Worldwide Science Centre is located at Reading in the UK. Kraft Foods Europe recently spent £17 million on enhancing its research and development facilities in the UK. Indeed, the UK is now Kraft Foods’ largest R&D operation outside of North America.

Kraft Foods Europe also recently invested Eur15 million to create a new European Biscuit Research and Development

“We’ve made great progress in most of our categories, including chocolate, biscuits, coffee, cheese and grocery. However, we still have some challenges, particularly in gum & candy.”

FOOD & DRINK BUSINESS EUROPE, APRIL 2012

Centre in Saclay. With a market share of more than 15%, Kraft Foods is the leading biscuit manufacturer in Europe.

Kraft Foods’ European biscuit business grew more than two times faster than the biscuits market overall in 2011. The growth is being driven by investment in brands such as LU, Oreo and belVita, by the recent relaunch of the iconic LU brand, the successful introduction of the innovative belVita breakfast biscuit, and the expansion of Oreo into major markets across Europe.

Creation of Mondelez International Kraft Foods is planning to divide its business before the end of 2012 to create two industry-leading companies - a high growth global snacks business, to be called Mondelez International, and a high margin North American grocery business, which will retain the Kraft brand and have sales of $18 billion.

Mondelez International will have annual revenue of $35 billion and consist of the current Kraft Foods Europe, Kraft Foods Developing Markets as well as the North American snacks and confectionery businesses. Kraft Foods Europe and Kraft Foods Developing Markets will be the two largest elements of the new snacks group.

Comprising Central & Eastern Europe (CEE), Kraft Latin America Region, Middle East & Africa, and Kraft Asia Pacific Region, Kraft Foods Developing Markets grew revenue by 16.2% to $15.82 billion in 2011 with operating income advancing 30.2% to $2.05 billion.

Tim Cofer comments: “The reason we’re separating is that we see opportunities to accelerate our performance by operating these two businesses independently. This will enable each company to focus on its unique drivers of success. Each com-

“Europe will be at the heart of our new global snacks company, and we’re excited about the opportunities ahead.”

pany will be best served by a different approach to investment and resource allocation. Both will compete from a position of strength in their respective markets. And both will be well-positioned to outperform their peers and deliver attractive shareholder returns.”

Kraft Foods Europe, with its cash generative but mature markets, will be a key part of Mondelez International.

“Europe will be at the heart of our new global snacks company, and we’re excited about the opportunities ahead,” says Tim Cofer. “At the time of the spin off, our global snacks business will derive about 37 percent of its revenue from Europe. That’s up from about 25 percent of the company’s revenue today.”

Development Strategy In the meantime, Kraft Foods Europe will continue to follow its successful development strategy in preparation for assuming its more central role within Mondelez International. “We are on a journey to become ‘Europe’s favorite snacking company’.

We’re focused on delivering solid growth and improving margins this year by continuing to skew our investments toward our power brands, drive innovation, leverage our integrated sales force, take advantage of ‘white-space’ markets (bringing existing products to new markets) and relentlessly focus on productivity and overhead cost management,” Tim Cofer concludes. J

Mondelez International is New Name For Kraft’s Global Snacks Business Kraft Foods’ high growth global snacks business, which will be separated from its North American grocery business later in the year, will be called Modelez International. The North American grocery company will become Kraft Foods Group, retaining the Kraft name for its corporate identity and as the brand for many of its consumer products. As a result, the global snacks company will require a new name when it launches later this year.

Mondelez is a newly coined word that means ‘delicious world’. It is a combination of the word monde, deriving from the Latin word for world, and delez, a fanciful expression of delicious. In addition, International captures the global nature of the business. Mondelez International will become a $35-billion business with 80% of its sales outside North America when it comes into being Irene Rosenfeld, chairman and before the end of 2012.

“The Kraft brand is a perfect fit for chief executive of Kraft Foods.

the North American grocery business and gives it a wonderful platform on which to build an exciting future,” said chairman and chief executive Irene Rosenfeld. “For the new global snacks company, we wanted to find a new name that could serve as an umbrella for our iconic brands, reinforce the truly global nature of this business and build on our higher purpose – to ‘make today delicious’. Mondelez perfectly captures the idea of a ‘delicious world’ and will serve as a solid foundation for the strong relationships we want to create with our consumers, customers, employees and shareholders.”

Last year, Kraft Foods invited employees from around the world to suggest names for the new global snacks company. As part of this co-creation process, more than 1,000 employees participated, submitting more than 1,700 names for consideration. Mondelez International was inspired by separate suggestions from two employees, one in Europe and another in North America.

After the spin-off, Irene Rosenfeld will become chairman and chief executive of Mondelez International. Anthony Vernon, currently executive vice president and president of Kraft Foods North America, will become chief executive of the North American grocery company.

FOOD & DRINK BUSINESS EUROPE, APRIL 2012

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EU-wide Egg Shortage - Kerry Offers a Solution For Aerated Confectionery Manufacturers ith confectionery, biscuit and cake W manufacturers across Europe reported to be on the brink of closure due to an EU-wide egg shortage, Kerry Ingredients & Flavours has a range of hydrolysed protein solutions to help confectionery manufacturers experiencing production difficulties. The crisis in egg production has been widely blamed on the recently introduced EU Laying Hens Directive, which tightened up the regulations on the use of battery cages.

Tom Schmedes, Confectionery End Use market director, Kerry Ingredients & Flavours, comments: “Albumen, the protein derived from egg white, has traditionally been used by manufacturers of aerated confectionery such as nougat and marshmallow. With the egg shortage, and the fact that the price of liquid egg white has risen by 41.3% year-on-year, and in recent weeks has been reported as rising in excess of 70%, confectionery manufacturers are under real price pressure – and this is where Kerry can help. Hydrolysed proteins are a recognised replacement for albumen, and, depending on process and recipe, just 40kg of Hyfoama™ hydrolysed protein can replace 100kg of egg white.”

Hyfoama™ can be derived from soy, wheat, casein, pea or rice proteins and has a number of benefits compared to albumen.

It attaches more consistently to air bubbles,

so less whipping agent and processing time is required, and the result is a more consistent product.

In addition Hyfoama™ is heat and acid stable, is easy to dissolve, has a longer shelf life than albumen and cannot be overbeaten. It is also suitable for vegetarians and vegans.

“Given the current egg shortage, and the rising price of egg-derived ingredients such as albumen, there has never been a better time to look at hydrolysed protein alternatives such as Kerry’s Hyfoama™,” adds

Tom Schmedes.

“However, effective use requires expert product knowledge and careful application.

Kerry has 60 years’ experience in aerating confectionery and is the market leader in hydrolysed protein. We are happy to work with manufacturers who have concerns, and to advise them on their needs in response to the current market situation,” he concludes.

To find out more about what Kerry Ingredients & Flavours can offer visit www.kerry.com and click on contact. J

Dohler Expands Natural Colour Solutions ohler has expanded its portfolio of natD ural colours with the addition of Red Brilliance, a range of shining red hues. The colouring concentrates are produced from the black carrot at Dohler's own plant in Akkent, Turkey. The colour range covers warm orange hues to shining ruby hues all the way to shades of blues. All colours meet the requirements of Clean Labeling and can

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be used in many food and beverage applications.

Achieving colour brilliance, naturalness and stability was the objective during the development of the new red hues. The colour of a product is often the key to its success. Not only does the colour play an important role in the purchasing decision, so does the naturalness.

FOOD & DRINK BUSINESS EUROPE, APRIL 2012

"Thanks to using state-of-the-art technology, we have been able to optimise the physical processing of the black carrot. The colouring concentrates gained from this processing are by far superior to other colours containing anthocyanin in terms of stability and cost-in-use. And even the colour spectrum that can be derived from this raw material meets the demands of the market in an optimal way. The colour shadings range from warm tones all the way to powerful, cool or subtle hues. Our colour concentrates are free of sulphur dioxide, says Christian Benetka, senior product manager colours of the DohlerGroup.

Along with colours made from the black carrot, Dohler also supplies a wide range of natural colours for foods and beverages. For more information visit www.doehler.com. J

Cargill Unveils $82 Million Upgrade to Cocoa Processing Facility in The Netherlands argill’s cocoa and chocolate business has C officially marked the completion of upgrades to its cocoa processing facility in Wormer, the Netherlands following a $82 million (Eur57 million) investment. Cargill has opened a new Center of Expertise for cocoa and increased the cocoa powder production capacity at its Wormer facility enabling Cargill to strengthen its ability to offer customers greater product innovation and increased levels of service.

“This investment is another demonstration of Cargill’s commitment to providing our customers with a broader and more bespoke service to meet their individual needs,” says Jos de Loor, managing director of Cargill Cocoa & Chocolate. “This new world-class facility, along with our existing

network and our food ingredient expertise will support our cocoa and chocolate growth strategy.”

The upgrade is in response to growing customer demand for high quality cocoa powders that are tailor-made to individual customer specifications. The Wormer facility processes cocoa liquor into cocoa butter and powder offering customers globally over 100 types of cocoa powder with a diverse variety of flavours and colours under the premium Gerkens brand.

The new Center of Expertise brings together all of Cargill’s cocoa quality, technology and innovation expertise. The combination of its team of experts and its new state-of-the-art facilities mean Cargill is able to work more closely with customers to develop new products containing cocoa ingredients, as well as partner on product development and formulation, while ensuring high standards of quality and food safety. The Center includes an ISO 17025 accredited quality control laboratory, a pilot plant for product and process development, as well as an expanded expert taste panel to support sensorial evaluation for cocoa liquor and powder products.

The investment has also enabled Cargill to open a new, fully automated cocoa powder warehouse and distribution center in the

Exterior of the plant at Wormer.

port of Amsterdam with very high food quality and safety standards. The warehouse will provide an efficient storage capacity, storing three times as much product per square metre as conventional warehouses in the port of Amsterdam. Better transport and capacity planning will also result in more than 10 per cent reductions in CO2 emissions on existing transport and customer shipments.

Cargill’s cocoa and chocolate facilities in the Netherlands are part of its wider cocoa and chocolate network in Western Europe, Africa, Brazil, Canada and the United States. Cargill has been supplying quality cocoa and chocolate products to customers around the world in the chocolate, confectionery and food industry for over 50 years. J

Nutriose Soluble Fibre Honoured With Frost & Sullivan Award he international business research and T strategy consulting firm Frost & Sullivan has just given the 2011 Award for ‘European food fibre ingredients customer value enhancement’ to Roquette for its Nutriose soluble fibre. The award highlights the added value provided by Nutriose to food industry users thanks to its nutrition and health benefits – in particular weight management – and the supporting scientific evidence.

The Customer Value Enhancement award singles out Nutriose for having demonstrated superior and even unique performance in the global food fibres market. The Frost & Sullivan analysts identified industry best practice on the basis of a number of criteria; those analysed were continuous improvement, sustainable development, the natural solutions offer and technical support.

Roquette’s strategy of continuous improvement, in particular with regard to the scientific validation of its ingredients’ nutritional and health properties, was particularly honoured. Strongly supported by several clinical studies proving its effects on satiety, weight management and certain metabolic syndrome determinants, Nutriose meets the high expectations of a market seeking to reduce the incidence of metabolic disorders linked to lifestyle (excess weight, diabetes, etc).

FOOD & DRINK BUSINESS EUROPE, APRIL 2012

“There is a real need for practical solutions to prevent the accelerating increase in obesity occurring in many countries: Nutriose provides the nutritional and technological assets that can make those solutions happen,” comments Catherine Lefranc, corporate manager of scientific communication for nutrition at Roquette.

Other major trends observed by Frost & Sullivan are sustainable development and the need for natural alternatives.

Nutriose is a fibre obtained from two renewable raw materials: maize and wheat. This results in a wide range of fibres whose molecular weight is tailormade for the required end application.

This remarkable flexibility - guaranteed gluten-free, GMO-free and Kosher/Halalcertified - is, according to Frost & Sullivan, also a major distinguishing factor. J 7

Food Firms Throwing Away Invisible Energy he majority of food manufacturers are T literally throwing away thousands of pounds every year in invisible energy, according to Star Refrigeration. The heating and cooling specialist claims that most food firms with refrigeration or air conditioning plants could be saving up to 40% on their annual energy bills. Star is launching a free online assessment through its website www.star-ref.co.uk to help food processors identify where significant cost savings could be achieved by recycling ‘invisible’ heat energy.

Star Refrigeration’s director of sales Food Market, James Ward says: “Heat energy is invisible, so understandably it’s out of sight, out of mind for most businesses. Our key message is that when it comes to heating and cooling; ‘don’t waste your waste’. In most cases investing in heat recovery will significantly reduce energy consumption, cut costs and decrease carbon emissions.”

He adds: “Cooling systems extract heat from food and buildings then reject the heat into the atmosphere as waste. Food firms can now recover, boost and recycle this waste energy and enjoy massive long term financial benefits, thanks to the latest industrial heat pump technology.”

An online questionnaire on the Star website (www.star-ref.co.uk) examines the operating temperatures of heating and cooling systems within a food processing facility. This simple data provided is then analysed alongside current utility tariffs to identify potential heat pump applications and energy cost savings.

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Star estimates that based on typical gas and electricity utility rates, industrial heat pumps offer a financial return on the original investment within five years. This payback time is significantly reduced if heat pumps are incorporated into new installations from the start.

Don’t Waste Your Waste – Star is urging food firms to take the heat out of refrigeration.

James Ward says: “We believe there is a huge opportunity for heat recovery in the food manufacturing industry. Many facilities undertake cooling processes and also

FOOD & DRINK BUSINESS EUROPE, APRIL 2012

require large amounts of water to be heated, such as for equipment wash down.”

A world leader in cooling and heating system innovation, Star has developed a range of heat recovery solutions for small and large scale food processing applications. As an environmentally conscious supplier, Star’s heat pumps typically use natural refrigerants, such as ammonia and carbon dioxide (CO2) for efficient highgrade heat generation.

Recent developments such as Star’s Neatpump enable customers to harness the waste energy from cooling processes and convert it into heat for use within their business. Neatpump uses a low charge of natural ammonia refrigerant to simultaneously deliver chilled glycol for cooling processes and hot water at up to 900C utilising the waste heat.

In addition to the environmental benefits and reduced carbon footprint, Neatpump generates heat at 40% less cost than a gas burning boiler system.

Neatpump’s advanced compressor technology and ultra low maintenance design ensures over 20 years of environmentally conscious service.

Another Star system, Envitherm, uses a supercritical CO2 heat pump to deliver chilled water at 6°C, whilst heating water to over 60°C. Envitherm operates with natural CO2 refrigerant and delivers ‘free’ hot water with zero carbon emissions.

For more information, phone Star Refrigeration on 0141 638 7916, email star@star-ref.co.uk or visit www.starref.co.uk. J

I BREAKFAST CEREALS

PepsiCo Increases Investment in Quaker Oats PepsiCo is continuing to invest in its Quaker Oats site at Cupar in Scotland to meet the rising consumer demand for porridge. he US-based food and beverages giant is investing £14.4 million to increase the capacity of the Cupar facility, which is currently home to Quaker Oats and Scott's Porage Oats.

The site also produces Oat So Simple as well as Quaker's latest innovation, Quaker Oat So Simple Pots, designed to make porridge preparations even easier. Construction has commenced at Cupar for a new building that will house a new high-speed sachet line and a new bagging line.

and more people are opting for hot cereals for breakfast all year round – whatever the weather.

Overseas demand for our oats is also increasing, and we see this as a key area for future growth. Quaker has been milling oats at Cupar since 1947 and we are very pleased to invest again in our site to protect its heritage and grow the Quaker Oats business.”

The expansion of its Scottish porridge business is in line with PepsiCo’s global strategy of With the UK porridge market now worth £157 million, the hot cereal market has broadening and improving the grown by 30% over the past two years. ‘health and wellness’ credentials of its products portfolio, Continual Investment itage of the site and its British porridge which has traditionally been dominated The investment builds on last year’s £8.5 brands. by carbonated, sugary drinks and salty million spend to build a new state-of-thesnacks. PepsiCo’s goal is to generate globart plant, helping to boost oat milling Surging Porridge Sales capacity at Cupar and allow for increased With the UK porridge market now worth production. Porridge has become increas- £157 million, the hot cereal market has ingly popular and an all-year round grown by 30% over the past two years. breakfast choice for British consumers.

For PepsiCo, the public's appetite for Quaker Oats have been produced on quick and easy porridge has helped drive the Cupar site for more than 60 years. growth with value sales of Oat So Simple Indeed, PepsiCo is one of just two manu- sachets increasing 44% over the last two facturers that still mill their own oats. years.

The latest expansion programmes takes In addition to growth in the UK, the total that PepsiCo has spent on the PepsiCo has also seen its oats exports rise Cupar site to £51 million over the past by 18% over the past five years as demand decade to meet the surge in porridge sales. for Quaker Oats increases in the Middle Eight production lines have been added East. between 2002 and 2010 as PepsiCo has continued to invest to preserve the her- Meeting Consumer Demand “More and more people are eating porridge all year round and our Driven by the growing consumer appetite for quick investment at Cupar and easy porridge, value sales of Oat So Simple means we’ll be able to sachets have increased by 44% over the last two satisfy the increasing years. demand at home and abroad for years to come,” explains al revenues from nutritious and functional Richard Evans, presi- foods of $30 billion by 2020. Its current dent of PepsiCo UK & nutrition business is about half way to Ireland. “The porridge achieving this target. market has seen phePepsiCo acquired the global Quaker nomenal growth and Oats business, including the fast growing British Prime Minister David Cameron pictured at a recent visit to the what’s particularly Gatorade sports drinks brand, for £13.4 Quaker Oats site at Cupar. interesting is that more billion in 2001. J

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WSP CEL Providing World Class Services to Support Capital Investments SP CEL provides quality consultancy, W design, engineering, procurement, construction and project management services to food and beverage clients. The company has supported PepsiCo with some of its recent manufacturing expansion projects.

WSP has over 9000 employees working in over 60 countries, providing innovative and complex technical solutions to clients on a global basis. Indeed, WSP has delivered over 30 major food and beverage projects totalling over £280 million across four continents. Experience includes brewing, fermentation, dairy, petfoods, snack foods, cereals, confectionary, flavourings and ingredients.

WSP’s expertise includes design, engineering, project management, construction and consultancy in the following areas: * Research facilities, * Pilot and scale-up, * Manufacturing plants, * Distilleries, * Breweries, * Fermentation processes, * Flavourings, * Breakfast cereals.

WSP’s culture is one which: * Provides an extremely high quality of service at a competitive price. * Provides services that are truly flexible, services as the client wants them and to achieve best value. * Recognises that the key to success is the integration of the client, WSP and supply chain to create a flexible, empowered, cohesive and passionate team. * Values innovation and best practice to enhance service quality. * Provides technical excellence as a given.

For more information about WSP CEL contact: susan.swain@wspcel.com www.wspcel.com. J

OEE ‘Waterfall’ Reports Help Make Production’s ‘Added Value’ Visible waterfall might appear to be an unusual model A on which to base an OEE production report for the food and drink industry but when the objective of the exercise is to reduce wasted time in the production process it is a good way to visualise how well (or how badly) things are working.

The process is simple; the start point is a time period, illustrated in the graphic as a ‘Total Time’ of 168 hours, in a single week. In this case we don’t run the plant at the weekend so schedule ‘off’ 64 hours leaving a scheduled ‘running’ Time of 104 hours.

The next bar, as the waterfall cascades downwards, is the value in red, the OEE loss which in this case is 72 hours. That loss comprises the next four values: 33 hours due to Availability losses, 5 hours due to changeovers (in yellow), 33 hours due to Performance losses and 2 hours due to Quality Losses.

The last value represents the true point of the exercise, the discovery that out of our scheduled time of 104 hours we managed to ‘Add Value’ to the business for only 32 hours.

Unfortunately we funded labour, materials and energy costs for the full 104 hours to gain those 32 hours of added value benefit.

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To find out how you can discover hidden OEE losses and for more information about OEE and the Waterfall Report visit www.idhammarsystems.com or contact info@idhammarsystems.com. J

FOOD & DRINK BUSINESS EUROPE, APRIL 2012

I MARKETING

Square Way Forward

By Helen Curtin, Director of Communications for Clip Gurus oogle sources state that for one day in March 2012 the number of searches on mobile devices exceeded those of any other digital platform. A startling statistic that confirms a dramatic alteration and unstoppable alteration in the way we shop. We want convenience, information and inspiration at our fingertips at all times.

An odd looking digital square called a QR code promises to play a significant role in the shopping revolution. They can be found on posters, packaging, print ads and flyers. Shoppers can get instant access to more product information by scanning one of these.

G

See-Hear-Buy Until recently most QR codes led us to a web page or a Facebook account. Now clever marketers are using QR codes on their packaging and printed adverts to bring the consumer to video.

This could be a video introducing the product maker, a recipe or advice on items that work well with the product in question. It’s the See-Hear-Buy mentality in action.

A survey from Chadwick Martin Bailey and iModerate Research Technologies found that half of smartphone owners have scanned QR codes and 18 percent of them made a purchase after scanning According to research from comScore, 20.1 million mobile phone owners in the

US used their device to scan a QR code in the three-month average period ending October 2011. Among this group, 59.4% scanned from home, 44% from a retail store and 26.6% from a grocery store.

Companies such as Starbucks, M&S, Chili’s, Taco Bell and Red Bull are among the many that have incorporated QR codes into their marketing efforts over the past year.

In Germany, grocery chain REWE first introduced QR codes into its products in early 2011, allowing customers to access product origins and examine nutritional information.

“By using QR codes you can enhance peoples experience and understanding of your products.

A quick snap and they can get a video showing how something was made, what makes it unique or how best to use the product,” comments Des Martin, CEO of The Searchmill. “When you have people’s attention, it is much easier to make a sale.

What’s more you are reaching people at the exact moment they are considering making a purchase. A unique opportunity for producers.”

Scan here with your QR code app to view the sample featuring food critic Paolo Tullio, co-produced by Clip Gurus and Wavebreak Media.

Platform For Promotional Video It should be remembered that the QR code is just one of many platforms open for the promotional video.

FOOD & DRINK BUSINESS EUROPE, APRIL 2012

“With such a high demand for online video content, we’re finding that QR codes provide the ultimate cross over between traditional print advertising and online marketing. It means that the same video can reach the consumer via the packaging and at point of sale if they are shopping online,” comments James Vizor, CEO, Hailstorm Commerce.

Quality content and production values will play a significant role in the success of QR coded video campaigns. Again, technology is bringing costs down and making even the highest quality productions affordable.

The sample included here is a prime example of how to achieve high-grade results without prohibitive costs. The piece is a collaboration between video marketing specialists, Clip Gurus and Cork-based stock media producers, Wavebreak Media.

“There is a big demand for beautifully created stock for the food industry. It means creating productions that look fantastic at a fraction of the cost,” says John Burke of Wavebreak Media.

The rise of the Smartphone, the demand for content and information, the affordability of creating quality productions all point to a new and lasting opportunity to connect with the consumer. The QR Coded video is here to stay.

Helen Curtin is director of communications for Clip Gurus, specialists in video campaigns for all digital platforms. You can contact Helen on 00 353 87 9691698 or email Helen@clipgurus.ie. J 11

I SEAFOOD

Acquisition of Cumbrian Seafoods Approved he UK Office of Fair Trading has cleared the acquisition of T Cumbrian Seafoods by private equity company Lion Capital, which also owns Young’s Seafood, the UK’s leading chilled and frozen fish and seafood company. The OFT examined the implications of the deal, particularly with regard to whether it gave Young’s Seafood a dominant position in the smoked salmon market as well as greater market power in chilled seafood, but has decided not to refer it to the Competition Commission.

Lion Capital acquired Cumbrian Seafoods which is the UK’s leading independent seafood company, late last year from the administrator. Earlier this year, Young’s Seafood announced that, following a review of the operations of Cumbrian Seafoods and its subsidiary Border Laird, some 555 jobs were being cut from the business across its three sites in the UK - a state-of-the-art seafood processing plant at Seaham in County Durham, a smokery at Whitehaven in Cumbria and the Border Laird shellfish facility at

Amble in Northumberland. According to Young’s Seafood, the fact that Cumbrian Seafoods went into administration indicated that its business model was not viable and major restructuring was required. J

Donegal Catch Supports Irish Fishing Industry With Responsible Irish Fish Partnership onegal Catch, Ireland’s number one D frozen fish brand, has entered a partnership with Responsible Irish Fish, a group dedicated to developing a brand and label to allow Irish fishermen differentiate their products in the market place and to promote Irish fish being caught in a responsible manner. Donegal Catch is also expanding into the chilled category with the launch of its new Fish Creations range, of which the RIF label will appear on the Irish caught species (Haddock, Plaice and Whiting) of the range.

Olivia Kearney, Donegal Catch brand manager, remarks: “Donegal Catch is proud to be supporting Responsible Irish Fish and will feature the RIF label on the Irish caught species of both the new chilled and existing frozen range, so consumers can easily identify these packs. Where possible, we source our fish in accordance with best practices to ensure the long- term viability of fish supplies in the Irish catching sector that in turn supports jobs and industry. We also feel that it is important for Irish consumers to eat more Irish species and to realise that they are supporting and protecting jobs in the Irish catching sector.”

Frank Fleming, founder of Responsible Irish Fish, comments: “Companies like Donegal Catch play an important role in the sustainability of the Irish fishing sector.

The RIF label allows consumers to have confidence in the origins of the seafood that they are eating and comfort in the fact that it has been caught responsibly.”

Research has shown that there is a growing importance, from 55% in 2007 to 73% in 2011, for consumers to buy local pro-

duce when food shopping. Donegal Catch is well placed to take advantage of this rising trend as the largest purchaser and processor of whitefish in Ireland, distinguishing itself from the competition by ensuring its Haddock, Whiting and Plaice

Pictured are: Frank Fleming, founder of Responsible Irish Fish; Jamie Granger, age 5; and Tom Cronin, head of marketing at Donegal Catch.

are Irish.

Donegal Catch has identified a demand in the market for chilled, freshly pre-packed products. Research carried out by Donegal Catch found that consumers want a range that delivers on taste, limits preparation time and is convenient to cook. Expansion into the chilled market, which is worth over Eur100 million, represents an important advancement for Donegal Catch, capitalising on the brand’s trusted reputation within the frozen category.

Donegal Catch is part of the Green Isle Group, which is now owned by 2 Sisters Food Group. Green Isle currently employs 750 staff of which 68 are directly employed in the fish business that operates out of Gurteen, County Sligo. Turnover for the fish business rose 5% to Eur30million for the fish business in 2011. About 30% of Donegal Catch’s fish business comes from Haddock, Whiting and Plaice – all Irish caught species. J

2 Sisters Enters UK Retail Seafood Market Sisters Food Group has entered the UK retail chilled seafood market after its Five Star 2 Fish subsidiary, which focuses on the food service industry, secured a contract, believed to be worth £4 million annually, to supply supermarket chain Morrisons. Opererating from a purpose built factory and attached cold store on the outskirts of Grimsby, Five Star is a primary and secondary whitefish processor specialising in a wide range of added value and bespoke fish products. Five Star was already supplying some frozen fish to Morrisons.

2 Sisters, which acquired leading UK convenience foods manufacturer Northern Foods for £342 million in 2011, is a major diversified European food company supplying poultry, fish, chilled, bakery and frozen products to the retail, food service and food manufacturing sectors. 2 Sisters Food Group is controlled by entrepreneur Ranjit Singh Boparan. J FOOD & DRINK BUSINESS EUROPE, APRIL 2012

13

I BAKERY

European Bakery Market Remains Fragmented The bakery market in Western Europe is worth over €90 billion and the industry is far less consolidated than other food sectors. ccording to international food and drink consultancy Food For Thought, the top ten Western European bakery manufacturers account for 23% of the market, while the top twenty companies hold 31% (see Table). Compared to confectionery, where the top four manufacturers control about half of the market and the top ten players account for over twothirds of sales, the bakery industry remains relatively fragmented and localised.

Another feature of the Western European bakery industry is the large proportion – 28% - of the market still in the hands of small scale artisanal producers (baking their own-products for own sale).

This is a characteristic of Continental Europe as the share held by craft bakers in the UK is only about 3%.

A

Leading Bakers With a market share of 8.5% and annual sales of over Eur4 billion, Italian group Barilla is the leading baker in Western Europe.

In addition to being the world’s largest pasta manufacturer, Barilla is also the biggest bread producer in Europe and the number one in Italy in bakery products (Mulino Bianco and Pavesi). It is also a leader in the crispbread market in Scandinavia.

Biscuit manufacturers Kraft Foods, United Biscuits (owned by the Finalrealm consortium) and Bahlsen are respectively the second, third and fourth ranked players within the Western European bakery market.

Top 100 Bakery Manufacturers in Western Europe, 2011 Rank

Company

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

Barilla Kraft Foods Finalrealm Bahlsen Süßwaren Premier Foods Warburton's Lantmännen ABF Ostendorf Sara Lee Colussi Orkla Apax Partners Nestlé Lion Capital Danone Pågens Coppen. & Wiese Fazer Konfektyr Harry–Brot

Market Share Western Europe Cumulative 8.54% 3.21% 1.96% 1.83% 1.81% 1.28% 1.24% 1.17% 1.15% 1.03% 0.97% 0.91% 0.86% 0.82% 0.82% 0.80% 0.73% 0.73% 0.71% 0.60%

8.54% 11.75% 13.71% 15.55% 17.36% 18.64% 19.87% 21.05% 22.20% 23.23% 24.20% 25.11% 25.98% 26.80% 27.62% 28.42% 29.16% 29.89% 30.60% 31.20%

Source: Food For Thought.

Bakery Products Market Fresh’ in this issue). However, Premier Foods’ bread business, Warburtons and Allied Bakeries only have a manufacturing presence in the UK and, due to the short shelf life of fresh bread and bakery products, have only limited export sales.

Eighth ranked Lantmannen Unibake is a truly international baker employing 3,000 people in 18 countries. Specialising in frozen and fresh bakery products for both the food service and retail markets, the Swedish owned group operates 24 bakeries across Denmark, Sweden, Norway, Finland, Poland, Belgium, Germany, Russia, the UK, Hungary and the USA. Headquartered in Denmark, Lantmannen Unibake had sales of Eur780 million in 2011 and produced 400,000 tonnes of bakery products.

Barilla is the leading baker in Western Europe.

Based in Hanover, Bahlsen is the market leader for biscuits and cakes in Germany. Operating from six sites in Europe and with sales in excess of £400 million, Bahlsen is one of the leading manufacturers for sweet biscuits in Europe. Bahlsen is the largest family-run biscuit business in the world.

United Biscuits is about to be divided into two businesses – one centred on biscuits and the other on bagged snacks - prior to a sale (see ‘United Biscuits Prepares For Separation Prior to Disposal’ in this issue). The entire group was put up for sale with a price tag of about £2 billion in 2010 but without success. Biscuits, including the McVitie’s brand, account for about 75% of United Biscuits’ group sales of £1.3 billion.

United Biscuits is one of four UK-based groups to feature in the top ten. Bread and bakery products manufacturers Premier Foods (with its flagship Hovis brand), Warburtons and ABF (Allied Bakeries) are the other three (see ‘NPD Keeps UK Bread and

New Entrant A newcomer to the bakery market in Western Europe is Mexico’s Grupo Bimbo, which recently purchased Sara Lee’s operations in Spain and Portugal for Eur115 million. The deal includes all Sara Lee’s fresh bakery brands in Spain and Portugal as well as seven manufacturing facilities.

The deal is in line with Sara Lee’s strategy of divesting its international bakery businesses Lantmannen Unibake is a truly international and with Grupo baker employing 3,000 people in 18 countries.

FOOD & DRINK BUSINESS EUROPE, APRIL 2012

15

Top 100 Bakery Manufacturers in Western Europe, 2011

Biscuit manufacturers Kraft Foods, United Biscuits and Bahlsen are respectively the second, third and fourth ranked players within the Western European bakery market.

Bimbo’s international expansion. The acquisition marks Grupo Bimbo’s first entry into the European market.

Grupo Bimbo is one of the largest baking companies in the world in terms of production and sales volume. It operates throughout North and South America and Asia. Grupo Bimbo is now also the leading branded bread company on the Iberian Peninsula.

Geographical Spread Germany is the largest bakery market in Western Europe (15 European Community members plus Norway and Switzerland), accounting for 25% of total sales, followed by France and Italy, both on 14%. The UK and Spain with market shares of 12% and 9% respectively are the next largest country markets. Indeed, the five largest country markets generate 73% of total Western European bakery sales and account for 77% of the region’s population. The remaining 12 countries have a combined share of about 27%.

Market Segments Food For Thought divides the bakery market in Western Europe into six segments – bread products, biscuits, industrial pastry, frozen pastry products, crispbread and flour (for retail only). The bread products segment is worth about Eur55 billion and makes up 60% of the total market. Accounting for 14% of the market, the next largest product segment is biscuits with sales of Eur13 million. The industrial pastry segment accounts for 13% of West European bakery sales, frozen pastry products has a market share of 7% and crisp bread and flour combined have 5%.

Manufacturers’ branded products make up almost half of the total market, retailers’ own label products 22% and artisanal products 28%. Within the Eur90 billion bakery market in Western Europe, the food service channel generates sales of Eur14 billion.

The retail market accounts for the remaining 85% of sales.

Challenges Bakers throughout Western Europe are continuing to face pressure on profit margins from rising raw material costs within a tough retail market where price increases are difficult to pass on to customers. Manufacturers are also challenged by having to constantly develop new, healthy and interesting products to excite consumer interest and spur growth in what is a mature market.

Consumer interest in whole grain products is growing as concerns over healthy eating persist. Another key trend is that people are eating more on the go. The savouries category is benefiting from an increase in on the go snacking as well as less formal eating occasions. However, even though food on the go is on the rise, breakfast still accounts for 40% of the total bread consumption across many countries.

Food For Thought forecasts that the total Western European bakery market, which was worth Eur90.7 billion in 2010, will grow at an average annual real 0.28% during the 2010-2013 period. J

Rank

Company

21.

22.

23.

24.

25.

26.

27.

28.

29.

30.

31.

32.

33.

34.

35.

36.

37.

38.

39.

40.

41.

42.

43.

44.

45.

46.

47.

48.

49.

50.

51.

52.

53.

54.

55.

56.

57.

58.

59.

60.

61.

62.

63.

64.

65.

66.

67.

68.

69.

70.

71.

72.

73.

74.

75.

76.

77.

78.

79.

80.

81.

82.

83 84.

85.

86.

87.

88.

89.

90.

91.

92.

93.

94.

95.

96.

97.

98.

99.

100.

Saveurs de France Lotus Bakeries Vision Capital Kuchenmeister Migros Lambertz Finedon Mills Berkshire Partners Arla Foods Duke Street CNP Griesson Oetker Rugensberger Kohberg Ferrero Brioche Pasquier Greggs DCI Laihian Mallas Heinz Aryzta Vicenzi Bake Five General Mills Permira Limagrain Coop Schweiz Artal Pasquale NPM Capital Loacker Del Carlo Erlenbacher Bonne Bouche Mars Sammontana Parmalat Edeka Minden Axa Boparan Holdings McCambridge Albro Norac Euricom Van Hove GEP Brennans Bakeries VK Mühlen Heberer Frischback Grupo Novelli Wollbacher Kronenbrot Fage Gramss Steinecke Biscuits Bouvard Panasa Klemme Citterio Delicato Bakverk Kambly Hügli Vivartia East Balt TMT Finance Europastry Manner Goûters Magiques Greencore Memory Lane Dulcesa La Lorraine Champagne Céréales Industri Kapital Bakkavör Nutrexpa Country Style Børset Bakeri

Market Share Western Europe Cumulative 0.59% 0.57% 0.56% 0.56% 0.55% 0.55% 0.48% 0.47% 0.47% 0.47% 0.47% 0.45% 0.42% 0.41% 0.39% 0.39% 0.35% 0.34% 0.34% 0.31% 0.30% 0.29% 0.29% 0.27% 0.27% 0.26% 0.25% 0.25% 0.24% 0.23% 0.22% 0.22% 0.21% 0.20% 0.20% 0.20% 0.20% 0.19% 0.19% 0.19% 0.19% 0.18% 0.18% 0.18% 0.18% 0.17% 0.17% 0.16% 0.16% 0.16% 0.16% 0.16% 0.16% 0.16% 0.16% 0.15% 0.15% 0.15% 0.15% 0.14% 0.14% 0.14% 0.14% 0.14% 0.13% 0.13% 0.13% 0.13% 0.13% 0.13% 0.13% 0.13% 0.13% 0.13% 0.12% 0.12% 0.12% 0.12% 0.11% 0.11%

31.79% 32.36% 32.92% 33.48% 34.03% 34.58% 35.06% 35.54% 36.01% 36.48% 36.94% 37.39% 37.82% 38.23% 38.62% 39.02% 39.37% 39.71% 40.05% 40.36% 40.66% 40.95% 41.25% 41.52% 41.79% 42.05% 42.30% 42.55% 42.79% 43.02% 43.24% 43.46% 43.67% 43.88% 44.08% 44.28% 44.49% 44.68% 44.87% 45.06% 45.24% 45.43% 45.60% 45.78% 45.96% 46.13% 46.30% 46.47% 46.63% 46.79% 46.95% 47.11% 47.27% 47.43% 47.58% 47.74% 47.89% 48.04% 48.19% 48.34% 48.48% 48.62% 48.76% 48.90% 49.04% 49.17% 49.30% 49.43% 49.56% 49.69% 49.82% 49.95% 50.07% 50.20% 50.32% 50.44% 50.56% 50.67% 50.79% 50.90%

Source: Food For Thought.

FOOD & DRINK BUSINESS EUROPE, APRIL 2012

17

I BAKERY

NPD Keeps UK Bread and Bakery Products Market Fresh The UK bread and bakery products market is mature but manufacturers, despite downward pressure on profit margins from escalating commodity and energy prices, are managing to maintain consumer interest in the category through continual investment in new product development. lthough volume sales are in decline due to decreasing consumption, value sales are rising because of price increases and the development of new added value products. UK household expenditure on bread and bakery products increased by 7.6% between 2010 and 2011 to reach £4.7 billion, according to Key Note.

The white bread sector was traditionally the mainstay of the bakery market but growing concerns about a healthy diet have meant that consumers have been switching to other types of bread and bakery products, such as brown and wholemeal bread and speciality breads.

Innovation has been crucial to maintaining growth in the UK bread and bakery products market. The introduction of ethnic products has become a feature of the speciality breads sector. Products

A

UK household expenditure on bread and bakery products increased by 7.6% between 2010 and 2011 to reach £4.7 billion, according to Key Note.

with international origins such as French croissants and Americanstyle bagels are now mass produced in the UK. Although white bread is still the most popular, consumers are now spending more money on speciality breads. This is due to the greater variety within the sector, with ethnic products helping to increase its overall value. The fastest growing sector is wholemeal and brown bread due to consumers seeking healthier options.

However, the tough retail environment coupled with soaring commodity and energy costs, are squeezing bread and bakery manufacturers’ profit margins. This has impacted particularly on small to medium-sized businesses as larger manufacturers have continued to invest in branding, marketing and innovation to add value to their ranges.

companies produce about 80% of bread sold in the UK. In-store bakeries within supermarkets produce about 17% and high street retail craft bakers produce the balance, according to the Federation of Bakers, which represents the interests of the UK’s largest baking companies, which manufacture sliced and wrapped bread, bakery snacks and The tough retail environment coupled with other bread products.

Due to its short shelf soaring commodity and energy costs, are life, the vast majority of squeezing bakery manufacturers’ profit the bread sold in the UK margins. is produced locally. The plant bakery sector is dominated by three manufacturers - Allied Bakeries (with its flagship Kingsmill brand), Premier Foods (Hovis) and Warburtons, Britain’s largest independent baker and biggest bread brand.

Plant bakers specialise in producing mainly wrapped bread on a large scale. About 75% of all bread consumed in the UK is wrapped and sliced to offer freshness, convenience and value for money. The majority of plant bakers produce their own branded lines as well as retailer own label products.

In-store bakeries produce bread and other products that are baked in-store. All the large multiple retailers now have their own bakeries in most of their stores. Some in-store bakeries make products from scratch using raw ingredients, while others bake-off dough which is already part-baked and frozen. Most plant bakers supply in-store bakeries with their own part-baked and frozen products. However,

Industry Structure The UK bakery industry comprises three main elements – plant bakeries, in-store bakeries and craft bakeries. The larger plant baking FOOD & DRINK BUSINESS EUROPE, APRIL 2012

19

Allied Bakeries Continues Roll Out of Capital Development Programme Allied Bakeries is continuing to focus on lowering its cost base with further capital expenditure in its bakeries to improve manufacturing efficiency and upgrade product quality. The Associated British Foods business is currently spending almost £30 million to expand capacity and enhance efficiency at its bakery in Stockport. Construction of a new bread plant and bulk handling system at the Stockport bakery is well under way and due to begin commissioning in June.

Producing 1.6 million loaves every week, under the Kingsmill, Allinson and supermarket own-label brands, the site currently employs 400 people. An additional 50 jobs are expected to be created when the project is completed.

many of the larger instore bakeries now produce from scratch.

Craft bakers make bread and bakery products in their own premises but this sector is in steady decline, due to intensifying competition from both plant bakers and multiple retailers.

Indeed, most of the increase in market share enjoyed by supermarket in-store bakeries has been at the expense of the smaller craft bakers.

This steady decline contrasts to Continental Europe, where craft bakers are still dominant in many countries. Exports of UK bread and bakery products are limited but there is a growing interest in British-made fresh sliced and wrapped bread, mainly from the sandwich and lunchbox markets in Continental Europe.

For instance, Warburtons is about to start supplying its sliced bread in France and Spain. The company moved into the international market last year and is now stocked in Tesco stores in the Czech Republic, Slovakia, Hungary and Poland. With annual retail sales of more than £500 million, Warburtons is the second biggest-selling grocery brand in the UK behind Coca-Cola.

Kingsmill and Hovis also feature in the UK’s top ten grocery brands.

Some UK plant bakers also export part-baked and frozen bakery products to retailers and the food service industry in Europe and beyond. The food service sector is major channel for the UK bread and bakery industry. The Federation of Bakers estimates that between 5% and 10% of total bread volume is sold to food service operators.

Market Characteristics The recession has forced consumers to reassess their shopping and eating habits. However, many bakery products, because of their versatility and filling nature, are being used by consumers, especially families, to help managing their food shopping budgets. So although the market is nearing saturation point, they still remains an essential part of most consumers’ diets, with virtually every household in the UK buying bread and bakery products regularly.

Indeed, the bread and bakery products market is benefiting from the dining-in and lunchbox trends. Bread is regarded as a key accompaniment for dining-in. Bakers have also been able to capitalise on the growing number of consumers trying to save money by bringing packed lunches to work.

Key Drivers The UK bakery market, like many other food categories, is being

The investment at Stockport is part of the roll out of what ABF describes as the largest capital development programme within the UK bakery industry.

ABF has taken a rationalisation charge in its first half results for the closure of two smaller bakeries and the cost of further overhead reduction.

An extensive upgrade to the group’s West Bromwich bakery was completed last year with a new bulk handling system, warehouse extension and improved site access. Roll production was consolidated there when the new plant came on stream. Installation of a new bread plant and bulk handling system in Glasgow was also recently completed.

influenced by four key drivers – demographic changes, concerns over healthy eating, consumer demand for convenience, and indulgence.

Bakers have responded to the changes in the UK population such as the increase in the proportion of older people and one person households by producing smaller pack sizes, single serve portions and smaller loaves of bread. Within the wrapped bread sector, smaller loaves (600g) have outgrown larger 800g loaves.

Bakery manufacturers have been proactive in addressing consumer demand for healthier products, through innovation in dietary and organic products along with reformulation initiatives such as lowering salt levels in bread and introducing bakery snacks that are lower in fat.

Bread and other bakery products are ideally suited to the continuing consumer demand for convenience foods. The rise in snacking-on-the-go, meal replacements and easy preparation meal solutions has provided growth opportunities for bakers. With toasting still the number one snack preparation method and sandwiches still the dominant item in lunchboxes, the bakery industry has been able to exploit this trend through product innovation.

The consumer demand for indulgent products has also been a key driver in the development of value added bakery products.

Consumers have been encouraged to trade up to more premium products such as bread with seeds and grains and continental breakfast items.

Consumers have also become more cosmopolitan in their tastes, fuelling growth of international and ethnic products like croissants, bagels and ‘breads of the world’ such as tortilla wraps.

Another major feature of the UK bakery Bakers have also been able to capitalise on the market is a growing growing number of consumers trying to save trend towards brand- money by bringing packed lunches to work. ed products. According to the Federation of Bakers, two-thirds of the wrapped products made by plant bakeries are branded and this proportion is growing for two main reasons. Firstly, consumers are increasingly seeking out the reassurance and premium quality of branded products. Secondly, branded manufacturers are fuelling incremental growth in the market by investing heavily in innovative new product development and advertising.

FOOD & DRINK BUSINESS EUROPE, APRIL 2012

21

Challenges Bakery manufacturers are quickly adapting to changing consumer preferences, lifestyles and buying patterns.

“It is true that we are in a highly competitive business, where long term volume and value growth is a challenge,” says Mark Williamson, chairman of the Bakers Fed-eration and chief executive of Allied Bakeries. Key Note predicts that UK household expenditure “I am confident that on bread and bakery products will reach £5.61 as an industry we can billion by 2016. continue to develop new products offering the consumers an increasing choice across all bakery products.”

He continues: “In a market where volume growth is hard to come by, value growth is all the more important. Manufacturers and retailers alike should always remember the consumer must be at the heart of our thinking, ensuring we find ways to improve our offerings for consumers helping drive incremental category sales by offering consumers new ways to enjoy their daily bread.”

Outlook Key Note projects that UK household expenditure on bread and bakery products will continue to rise over the next five years.

Growth will be driven by wheat prices, rising demand for brown/wholemeal and speciality breads, foreign bakery goods and healthier options (especially gluten-free products), as well as partbaked bread.

Interactive campaigns and innovation will maintain dynamism in the industry. However, manufacturers’ value and volume sales will remain squeezed by intense competition, promotional activity and rising input costs. Key Note predicts that UK household expenditure on bread and bakery products will reach £5.61 billion by 2016.

“Bakers provide a fantastic wholesome product which gives consumers a huge variety of products delivering nutritional benefits at a huge variety of eating occasions,” points out Mark Williamson. He advocates a concerted industry approach to promoting the advantages of bread and bakery products to consumers. “Differences between bread are not huge. Different products are all bread-made in fundamentally the same way-mixed, proved and baked. I suggest if we all talk about the benefits of bread without trying to exaggerate differences between products, we would all reap the benefits. All bread as part of a balanced diet is good for you and let us all say that with one strong voice. We can’t expect others to respect our products if we squabble amongst ourselves.” J

22

FOOD & DRINK BUSINESS EUROPE, APRIL 2012

I BAKERY

Centralised Kneader Control Having the right quantities available at the right time and in the right place - the centralised Buhler control system installed at the Swiss fresh dough producer Leisi (Nestle Suisse) ensures a consistent quality of the finished product. n 1938, a young bakery and confectionery Ibusiness master named Werner Leisi opened a food in Basel together with his wife. At some of his customers’ request, he started producing dough by mechanical means.

The resulting market success led in 1961 to the construction of a cake dough factory in Wangen near Olten.

In 1984, this Swiss bakery goods specialist launched the world’s first finished sheeted dough. Marketed by the name of “Quick,” this ready-to-use fresh dough on baking paper quickly became a hit in the marketplace. Today, it is a firm part of modern-day cuisine in the form of pizza, cake, or laminated dough. “Leisi” has become synonymous with sheeted, readyto-use dough.

Since 1989, the Leisi company has been completely integrated in the Nestle Suisse Group. Today, Leisi with its 400 employees produces more then 42,000 metric tons of fresh dough annually, destined for the Nestle brands in the European markets.

This makes Leisi the largest fresh dough production site in Switzerland by volume.

Matched the Components

The most important steps in the production of dough are accurate proportioning of the different ingredients such as flour, water, lemon juice, or manual additives plus subsequent kneading. Buhler supplies the bakery industry with complete raw material receiving (intake) systems, storage bins plus proportioning and weighing equipment and has accumulated vast experience in the development of control systems for commercial scale bakeries. In January 2010, the automation specialists of Buhler were entrusted with raising the existing 15-yearold Buhler control system for pizza dough kneaders and cake and laminated dough kneaders to state-of-the-art levels.

Minimised Rebuilding Time

A new programmable logic controller (PLC) was incorporated in the control cabinet, the electronics of the scales were replaced, various adjustments were made to the network topology, and modifications and additions

The display screen in the control center visualizes production of the finished dough.

were made to the local kneader controls.

After a mere three days, production restarted on the first kneaders. Then, during another seven days, the entire system was commissioned. This short downtime was made possible by careful preparation and it ensured that Leisi would incur only minimal production losses.

Always the Correct Mixing Ratios

Though the functions of the control system developed by the two automation specialists on the basis of the Buhler WinCos standard appear to be fairly straightforward, they are in fact highly complex. Each of the dough kneaders produces ten 160–220 kg batches of dough per hour in different variants. As the central control unit, the PLC ensures that all dough kneaders are supplied with flour and liquids at the right time, in the right sequence, and with the right blending ratios according to the selected recipe.

FOOD & DRINK BUSINESS EUROPE, APRIL 2012

In addition, the PLC also controls the kneading formulas, which include the kneading time, the kneading direction, and the speed of the kneading tool. The real challenge starts at the latest when – after the fresh dough has been cut to size – the trimmings are returned to the dough mass during the kneading process, which changes the mixing ratio. On the basis of accurate adjustments, the Buhler control system ensures also in this case that the right ingredient blend is processed in the kneader in accordance with the basic product formula.

It continuously adjusts the supply of raw materials so that the kneader always discharges dough of a consistent quality. In addition to ensuring the correct input into the kneader, the WinCos control system also creates all the required logs and statistics in order to ensure permanent retraceability of production. J 23

I BAKERY

Haas - Expertise Under One Roof ranz Haas, Haas-Meincke and Haas-Mondomix bring F together a long tradition in plant construction and combine it with the Haas Group’s quality standards. Hass Group’s ‘Recipes for Efficiency’ constituting the RFE Standard ensure you will receive custom-made solutions.

Whether you produce wafers, biscuits, confectionery or dairy products, Haas works to provide you with the highest level of quality in all of these areas. Three brands are united under the Haas name - Franz Haas, Meincke and Mondomix. These three brands, which form the Haas Group today, can each claim a range of success stories over a number of decades, and offer you ‘Recipes for Efficiency’.

Franz Haas

Franz Haas has been specializing in wafer machines right from the outset and is the market leader in this field with up to 100 wafer lines delivered per year worldwide – that is why almost one in every two wafers is made by a Franz Haas machine.

In its 500 sq m (5400 sq ft) large Tech Center near Vienna in Austria, technologists use their wide-ranging knowledge to assist you by seeking and implementing new trends. Project engineers translate your ideas into processes and machines.

Franz Haas highly qualified design engineers and developers structurally adapt existing machines and develop special solutions for custom-built plants. They ensure the perfect interplay of mechanics and electronics which enables you to achieve stable production using automation and cuttingedge measuring and control technology. To ensure high quality, many parts are manufactured in-house by Franz Haas on the Leobendorf site.

Haas-Meincke

Haas-Meincke has been producing machinery for short dough biscuits and cakes since 1953. The product range was expanded to include crackers, pizza and bread products, 24

Swiss rolls, muffins and snack products in 2005. The takeover of Haas-Meincke completed the product range in the biscuits field.

The time and effort involved in reorganizing a production line for a product change is becoming increasingly significant, so combined lines offer the best solution.

Haas-Meincke combined lines make it easy to change between short dough and hard dough biscuits.

The results of comprehensive R&D programs are fed into production, to test out your products you can access the Copenhagen and Leobendorf Tech Centers, which are equipped with a cracker line and an extruder line. Experienced technologists will develop a custom-made product that meets your requirements. Your product will then be incorporated into machine and process solutions by Haas-Meincke project engineers to ensure that your production gets off to a smooth start.

Haas-Mondomix

Haas-Mondomix offers you know-how and machinery for mixing, kneading, aerating and depositing. The company now has four decades of experience resulting in market and technological leadership in the fields of aerating various masses, fat cream and chocolate.

Today, machinery is delivered to 50 countries all over the world FOOD & DRINK BUSINESS EUROPE, APRIL 2012

in the market segments of confectionery, bakery, dairy (eg desserts) and non-food. In the field of confectionery and bakery, Haas-Mondomix offers technology to handle masses and to shape and fill them by depositing.

For the high demands of the dairy industry, however, timesaving cleaning and sterilization facilities are available that can be awarded with the AAA certification for the US market. In its TechCenters in the Netherlands and Austria Haas-Mondomix provides laboratory equipment for testing. Here you will find a realistic production environment to develop or to refine your recipes.

Haas Group

Headquartered in Leobendorf near Vienna, Haas Group operates sites in Ettenleur and Almere in the Netherlands, as well as in Copenhagen, Roedkaersbro and Jutland in Denmark. The group employs 1,400 people worldwide - 600 in Leobendorf and 236 in Denmark and the Netherlands with 66 staff involved in design and 412 in production.

Haas Group has subsidiaries in Curitiba (Brazil), Richmond (USA) and Shanghai (China), and has representatives in 67 countries worldwide. The group undertakes between 255 and 275 projects a year. For further information visit www.haas.com. J

I BAKERY

Sveba-Dahlen – The Baker’s Best Friend Since 1948 veba-Dahlen has been an S innovative company since 1948, and this is true for its industrial equipment as well. In 1964, Sveba-Dahlen invented the rotary rack oven, an oven that fundamentally changed the way of baking. Since then, the company has continued to develop that concept, and today it offers rack, deck, and tunnel ovens, as well as prover rooms and prover lines to large and small industrial bakeries worldwide.

With more than 60 years of experience and over 300 installations delivered to customers around the world, SvebaDahlen has collected the expertise that makes it extraordinarily flexible.

The company can offer completely unique solutions that suit just your industrial bakery.

Tunnel Ovens

For example, its tunnel ovens can be adapted as required. They can be split into a number of heat zones, each one with its own, separate regulation of over and under heating. This makes it possible to set the optimal heating curve for each product.

Moreover, the tunnel ovens can be delivered with many different types of bands, with band widths up to 4 meters.

The Sveba-Dahlen indirect fired tunnel oven works with a multi burner solution; this means that there is one burner to regulate the top temperature and one for the bottom heat. This makes the oven very easy to adjust and fast to respond to changes.

The ovens are very flexible since each burner works independently for one another, in the Sveba-Dahlen multi-burner oven the temperature of circulating gases is different and depends of the need of heat in just that part of the oven.

avoid peaks of gas consumption during start up.

The oven is already in standard execution equipped with a basic recipe handling system, the parameters that are electrically adjustable are included in the recipe parameters. This includes set temperatures for the different zones, baking time, belt preheating etc.

Since the oven is built in individual zones it can afterwards be easily extended by just adding a zone and thereby increase the capacity of the oven.

Glimek Range

Under the Glimek brand there is a wide range of dough handling equipment for your average baker up to industrial plant

bakeries. Swing provers that are supplied are calculated from the capacity needed in the production and come in two versions. There are also traditional conveyor provers that are designed and manufactured to customer specifications.

The Glimek range also includes complete bread lines that come in a variety of capacity ranges and for unique products. One of these is the Unduline, which is an industrial bread line with a large capacity. These lines are made up of four individual machines, one dough divider, a conical rounder, a intermediate pocket prover and a long moulder.

Each machine is made in Sweden and is of very high quality. The capacity on an Induline is up to 3000 pcs/h but this can be increased by adding an intermediate prover, conical rounder and moulder.

These lines are very flexible and can be layed out as the customer wants to optimize production and with a weight range from 100 g to 1150 g the possibilities are huge.

What you can always be sure of is that when you order from Sveba-Dahlen, you will get what you want. Flexibility is one of the primary characteristics. This, along with very experienced and well-trained designers and technicians, who ensure that the installation, adjustment, and servicing is carried out correctly, guarantees a successful operation. J

Energy Efficient

This also makes the oven very energy efficient since only the burner where heat is needed is turned on (and in modulating power regulating mode). The oven can also be started zone by zone in sequences to FOOD & DRINK BUSINESS EUROPE, APRIL 2012

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I BAKERY

Spiromatic – The Specialist in Ingredient Process and Handling Equipment elgian company Spiromatic designs, B manufactures, installs and services solid and liquid food ingredient handling equipment for the food and drink industry, with emphasis on the dough and mixed ingredient processes. With fifty years of experience within sectors including bakery, biscuits, sugar processing and brewing, Spiromatic works throughout Europe, Asia and the Middle East, establishing close links with its customers in order to provide an optimal service for its ingredient handling systems.

The specialist engineering company operates from an 80,000 sq m production facility, where it designs and manufactures steel and stainless steel equipment and parts, composite silos and tanks, as well as the assembly of complete electrical and automation boards.

Products and Expertise Spiromatic’s main products are composite outdoor silos for the storage of food ingredients like flour, sugar, salt, milking powder, gluten, etc. Spiromatic has developed a fully automated high tech manufacturing process to make vessels ranging in size from 1000 litres up to 380 cu m.

“The unique selling points of our composite technology are the extreme low temperature transfer of the silo walls, the very smooth and resistant interior wall, the high

pressure values and the super-light construction. All raw materials as well as the manufacturing process is 100% food approved,” comments Dirk Dhont, key account manager at Spiromatic.

Together with its storage systems, Spiromatic also provides a specialised range of conveying equipment for dry non-free flowing and hygroscopic materials.

Spiromatic can design hybrid systems, which combine mechanical and pneumatic conveying, to solve simple and complex conveying applications.

Spiromatic employs about 120 people of which a fifth are located on site at customers’ plants for installation, start-up and training purposes. A dedicated service and maintenance business unit takes care of the proactive service and maintenance contracts and spare part management.

Spiromatic boasts an impressive client list.

Its systems and expertise are evident in the process plants of Europe’s leading frozen bread producers such as the La Lorraine Group, Lantmannen Unibake, Neuhauser and Vandemoortele. Indeed, its ingredient process solutions are installed in factories of global companies such as Puratos and Zeelandia, while chocolate and confectionary products manufactures such as Belcolade, Unilever and ADM are also loyal Spiromatic customers. Spiromatic is also a

key supplier to the drinks industry, with installations at breweries, distilleries and drinks plants throughout Europe.

Benefits of Spiromatic Technology “Because of their exclusive features, Spiromatic composite silos give a much higher storage quality to our customers.

Ingredients have less risk of conglomeration and condensation, and old product always descends first. Also the periodical maintenance of composite silos is much easier and cheaper than conventional metal solutions,” Dirk Dhont explains. “With regards to conveying, Spiromatic can offer hybrid systems that consume less energy, have lower production-stop risks and are much more efficient on output.” J

Taste Boost For Butter Biscuits as Kerry Launches New Beatreme Range erry Ingredients & Flavours has K launched a Butter and Cream range within its Beatreme™ line of cream, butter and cultured dairy powders. This new range provides a butter-boosting solution specifically designed for use in biscuits.

The last five years have seen a considerable increase in the number of all butter

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biscuit variants at the premium end of the market. Taste is a crucial dimension with these products. Rising dairy costs, particularly for butter, have also put pressure on manufacturers, leading to reformulation to help reduce the reliance on this increasingly expensive ingredient.

Butter plays an essential role not only in the taste of the product, but also the texture, structure and ultimately quality.

When reformulating recipes, a reduction in butter content can result in a negative impact on the product’s integrity.

“The real challenge here is to address these reformulation issues whilst retaining the enticing butter taste in biscuits – which is where we believe Beatreme™ will prove invaluable,” explains Mike Carr, Fine Bakery Market Director EMEA, Kerry FOOD & DRINK BUSINESS EUROPE, APRIL 2012

Ingredients & Flavours.

Beatreme™ Butter and Cream powders are created by naturally culturing fresh milk solids. They are specially formulated to deliver a rich creamy, butter-style mouth feel in biscuits, with much less butter than traditional recipes require. This means that this versatile product can either boost buttery tastes alongside existing butter content, or allow manufacturers reduce butter content while maintaining an authentic delicious buttery taste. Crucially the Beatreme™ Butter and Cream range also carries a clean label declaration.

Manufacturers can find out more about Kerry’s taste solutions for biscuit products by visiting www.kerry.com or contacting Kerry’s Centre of Excellence, Amsterdam, on Tel +31 36 5233 100. J

I BAKERY

Sugars Reduction, Tailor-made Solutions – SweetPearl® and NUTRIOSE®

the benefits of SweetPearl® is the biscuit.

Sugar reduction in a biscuit should take into account the following parameters: * Labelling * Organoleptic properties * Nutritional values.

ucts. Compare the organoleptic properties of sucrose, the traditional sweetener, with those of maltitol. Sensorial analysis of sucrose and SweetPearl® shows them to be very similar. Since SweetPearl® maltitol’s properties are bake-stable, this means the taste of a finished baked product or of its fillings that incorporate SweetPearl® must also be similar.

But sucrose in a biscuit (or in baked goods more generally) is not only about taste. As a crystallisable bulking agent its impact on texture is also highly significant.

Texture: Compare the physicochemical properties of SweetPearl® and sucrose: both are crystallisable di-saccharides and both have very similar properties. This means that their behaviour during the processing to finished product will also be very similar (recrystallization, viscosity, dissolution, etc). This in turn results in an almost identical texture.

For the purposes of European labelling, SweetPearl® can be identified as either a sweetener or a bulking agent. At the same time its wheat or maize source can also be usefully identified.

Calories: At 2.4 in the EU and 2.1 in the US, SweetPearl®’s calorie value is 40% less than that of sucrose.

This substantially lower calorie count, combined with a lower glycaemic index (29 v 60 for sucrose), confirms the nutritional attraction of using SweetPearl® maltitol to reduce sugar content. For the consumer, the attraction of SweetPearl® is that it delivers the taste without the sugars.

SweetPearl® Labelling Benefits Label claims are an essential pre-requisite for successful products. Because SweetPearl® can achieve partial or total substitution of sugars while preserving or even increasing organoleptical properties, there are a large number of claim possibilities, from the dietetic mainly focused on the low glycaemic response of maltitol (SweetPearl® is a maltitol) and on the level of sugar reduction (“no sugars added” or “reduced in sugars”) to claims combining the attraction of sugar reduction with additional maltitol benefits (like taste) or other components (like fruits or cereals).

Taste (sweetness): SweetPearl® makes it possible to associate attractive claims like those above with premium quality prod-

Application: SweetPearl ® Digestive Biscuits SweetPearl ®’s benefits become self-evident in a digestive biscuit created by Roquette’s application labs: this has all the taste and crispiness of the traditional digestive but none of its sugars, allowing an attractive “nosugar added” claim.

The Roquette digestive biscuit concept is only one example of the many premium quality products without the

ugars reduction is S another nutritional opportunity for fine bakery goods in addition to fat optimisation.

The challenge is to achieve a true reduction – even a total substitution – of simple sugars while preserving the right taste, especially of sweetness – at the same time as preserving the essential texture. That means emulating sugar, a bulking agent with an important and inherent texture-generating role.

Roquette offers two approaches.

1. Total Or Partial Sugars Substitution With SweetPearl® Obtained from maize or wheat, Roquette’s SweetPearl® is a naturally sweet bulk sweetener with the properties to deliver a premium taste. The pre-eminent product to test

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FOOD & DRINK BUSINESS EUROPE, APRIL 2012

sugars that are made possible with SweetPearl®.

2. Partial Sugars Substitution With NUTRIOSE® Soluble Fibre SweetPearl® offers total substitution of sugar in baked goods. However, if only partial substitution (up to 30% of sugar) is required, soluble fibre offers an effective alternative.

Roquette’s NUTRIOSE® soluble fibre range Is obtained from wheat or maize. Its use in baked goods is ideal since it is 100% soluble and has low viscosity. It also offers a very efficient way to reduce sugar levels because of the richness of its fibre content and its own low levels of simple sugars. NUTRIOSE® is probably also the soluble fibre with the best digestive tolerance on the market. On top of that, both the taste and the colour (white) of NUTRIOSE® are completely neutral.

Application: NUTRIOSE® Digestive Biscuits NUTRIOSE®’s neutral taste makes it possible to exploit a full reduction of up to 30% of sugars while still creating a biscuit with an attractive taste. This has been demonstrated conclusively in a NUTRIOSE® digestive biscuit created in Roquette’s application labs. The recipe benefits additionally from NUTRIOSE®’s properties as a bulking agent, which further increase its sugar-reducing effect. Under EU labelling rules this all adds up to an attractive “sugar reduction” claim combined with a no less attractive “cereal soluble fibre” claim. This appeal is reinforced by NUTRIOSE®’s low calorie value and low GI (25).

Whether food producers want to be able to make a “sugar-reduced” claim or simply create an improved nutritional profile, NUTRIOSE® soluble fibre delivers the messages that can really make the difference.

Contact: foodbusiness@roquette.com. www.roquette-food.com. J

I SUSTAINABILITY

Encouraging Greater Use of Sustainable Palm Oil ating back to the eighties, growing D consumer concerns about health and diet have driven increased use of

The Netherlands, Germany and Belgium, which buy, refine, process, and market palm oil products to cuspalm oil as an ingredient by European tomers. The crude palm oil is sourced food manufacturers. Environmental from Cargill’s own plantations as well issues have been fueling demand for as from other plantations and traders. palm oil sourced from certifiably susOutside of Europe Cargill has refinertainable sources. ies in the US, Malaysia and India.

Made from crushing palm fruits, Cargill has been a supporter of suspalm oil is an edible vegetable oil used tainable palm production for many mainly for food applications. Palm oil years through its membership of the and its fractions (such as olein and Round Table on Sustainable Palm Oil stearin) are used as cooking oil and as (RSPO) and its drive to support susan ingredient for margarine, shortentainable palm in its own operations. ing, vanaspati/ghee, frying fat and Cargill is also working with customers cocoa butter equivalents. Palm kernel to help them understand the RSPO Caroline Sikking, sustainability manager of Cargill Refined oil is used for both food and non-food requirements to enable them to make Oils Europe. purposes but primarily as a specialty the best choice to meet their business fat used in applications including confec- grown in popularity within the European needs. tionery and coating fats. Palm oil is also and global food manufacturing industry. used in non-food items like soap and cosA further advantage is that palm oil is the Sustainability Commitments metics. most efficient vegetable oil crop, with the Sustainability is becoming an increasingly highest yield per hectare, which makes it a important issue to consumers. This is Advantages of Palm Oil relatively cheap vegetable oil. As an all-year reflected in the growing number of Because of its functionality, palm oil offers round crop, palm oil is not reliant on sin- European and global food manufacturers major benefits for food manufacturers. gle crop seasons, which helps maintain a committing to source and use RSPO certiPalm oil provides structure and texture to high level of availability and its price attrac- fied palm oil. many food products, and has good oxida- tiveness to food manufacturers.

“Cargill believes palm oil should be protive stability. For both these reasons it can “Palm oil is a very important ingredient duced sustainably and we are committed to be used in many solid fat formulations because of its functional characteristics and without the need for partial hydrogenation versatility of application but also from an (hardening), thus providing a virtually economic perspective. Palm oil is now used trans free solution. in almost 50% of the products in superFuelled by growing consumer demand markets, which also includes non-food for natural ingredients and concern over items,” explains Caroline Sikking, sustaintrans fats, palm oil and its fractions have ability manager of Cargill Refined Oils Europe. “At Cargill, we see continued strong global demand for palm oil and a strong interest in sustainable RSPO certified palm oil although take-up is not yet at the same levels as available certiPalm oil is the most efficient vegetable oil fied volumes.” crop, with the highest yield per hectare.

Total palm consumption in Europe is about 6 million tones.

Total CSPO sales in 2011 were 2.5 million tones with the majority going to Europe.

Leading Role For Cargill As one of the major suppliers of palm oil and palm kernel products, including stearin and olein and many different blends, to the European market, Cargill is playing an influential role in encouraging greater usage of sustainable palm oil. Cargill operates palm oil refineries in

FOOD & DRINK BUSINESS EUROPE, APRIL 2012

working towards sustainable palm oil production,” says Caroline Sikking. “We fully support the RSPO process, which has developed principles and criteria and certification procedures to promote the growth and use of sustainable palm oil throughout the supply chain.”

She continues: “Cargill wants to play a leading role in working towards sustainable palm oil supply and use through the 29

Cargill has been a supporter of sustainable palm production for many years.

RSPO, and through our own actions. As such we have committed that the palm oil products supplied to our customers (excluding palm kernel oil products) in Europe, United States, Canada, Australia and New Zealand will be RSPO certified and/or originated from smallholder growers by 2015. This commitment will be extended across all our oil and trading businesses to cover 100% of our palm oil products and all customers worldwide – including China and India – by 2020. We are also encouraging our third party suppliers to join RSPO and become certified, and it is our hope that all oil palm plantations become RSPO-certified.”

Customer-focused Cargill is currently supplying food manufacturers with RSPO certified palm oil.

This includes offering customers the option to utilise all the physical chain of custody trading models authorised by the RSPO (‘segregation’ and ‘mass-balance’) and also offering customers certificates depending on their preferences.

“We’re already working with customers to understand their current and their future needs so we can find the best approach to provide them with RSPO certification and to make their supply chains more sustainable and enable them to incorporate sustainable ingredients in their products,” she explains. “We are also encouraging our third party suppliers to become RSPO members and become certified.”

As a vertically integrated palm oil producer and supplier, Cargill is well placed to encourage stakeholders within the supply chain to adopt sustainable practices.

However, transition to a fully certified sustainable supply chain will take time.

“The key food manufacturers are focusing on their own development plans with regard to sustainable palm oil. There is a 30

large volume of certified palm oil available but that is, of course, crude palm oil. To further process the crude oil requires a ‘segregated’ approach or a ‘mass balance’ approach, which is a very good intermediate step,” she remarks.

Adopting a mass balance approach, where a proportion of sustainable palm oil is mixed with classic palm oil, makes it more difficult for food manufacturers to communicate their ‘green’ credentials to consumers, although it allows for a mixed claim and use of the RSPO trademark.

Co-operation Within the Supply Chain “Of course, if we can increase demand and increase the volumes of crude sustainable palm oil to the European market, then obviously we will be able to convert complete refineries. But we are not at that stage yet,” she adds. “What many food manufacturers want is to have segregated palm oil available. While that is feasible for straight refined palm oil it is not possible for all the different products derived from palm and/or palm kernel. We can only achieve that transformation by working together within the whole supply chain – growers,

As one of the major suppliers of palm oil and palm kernel products to the European market, Cargill is playing an influential role in encouraging greater usage of sustainable palm oil.

FOOD & DRINK BUSINESS EUROPE, APRIL 2012

refiners, traders and food manufacturers.”

In addition to palm oil, Cargill is also supporting and encouraging sustainable production in other areas of its supply chain including cocoa, soy, sugar, beef and cotton.

“We are putting in place our own actions to encourage the adoption of better agricultural and environmental practices, promote better and safer labour practice and support improvements to farming communities,” points out Caroline Sikking. “We recognise we cannot do this alone and that’s why we are working through direct partnerships –

and multi-stakeholder groups like the RSPO – with governments, NGOs, industry partners and local communities to find sustainable ways to tackle key issues.”

New Product Development An example of Cargill’s endeavors in this respect is the group’s cocoa and chocolate business’s newly launched range of sustainable coatings and fillings for the European market, offering UTZ Certified cocoa powder and RSPO certified palm and palm kernel products. “It’s another step in Cargill’s ambition to continue to bring sustainable products to market,” she says.

Cargill specialises in helping food and beverage manufacturers drive growth through new product innovation, increasing supply chain efficiency, optimising product formulation and managing commodity price risk. Another recent introduction is TasteWise™, Cargill’s new revolutionary solution that enables manufacturers to deliver better tasting reduced calorie beverages to customers.

TasteWise™ is the culmination of years of scientific research and features a new way to optimise taste by better balancing texture, flavour and sweetness.

TasteWise™ also features Cargill’s Truvia® stevia leaf extract, which is attracting high consumer interest.

“Both new products illustrate how Cargill is uniquely positioned to work from a holistic perspective and help its customers successfully deliver great-tasting products,” Caroline Sikking concludes. J

I SOYA-BASED INGREDIENTS

YASO® – A Unique, Nutrition-packed Sprouted Form of Soya n response to growing demand for Iversatile, YASO , an innovative and highly specially sprouted soya raw

to Fitorex. In contrast, YASO ® enhances the nutritional value of soya through a patented special sprouting process.

YASO® is currently being used in a wide range of foods including meat-free, bakery, snack, pasta, functional foods and meat industry applications. As a source of highly digestible complete protein and a good source of fibre combined with no cholesterol and low carbohydrate, it is well suited for specialist diets, particularly for diabetics, weight loss management and people with difficulty in swallowing.

Indeed, the unique raw material offers a wide range of product development opportunities within

®

material, Hungarian food ingredients company Fitorex Group is building the world’s first high-yield, industrial scale controlled sprouting process for soya beans with a unique patented composition.

YASO® is non-GM whole soya, sprouted, pasteurised and packed ready for use in food manufacture.

It brings a completely new, whole soya dimension to the use of soya as a food ingredient. Much of the food ingredient soya used in Europe is a by-product of the soya oil industry (soya meal, concentrates, isolates) and the nutritional value has been degraded in the process, according

FOOD & DRINK BUSINESS EUROPE, APRIL 2012

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the ‘healthy’ foods segment. It is an ideal ingredient for free-from foods (free from gluten, lactose, cholesterol and chemicals); better for you products (low carb, with vitamins, with omega 3.6 content); and naturally healthy products (100% natural; non GMO, no added chemicals).

During the natural process of germination, enzyme stores in the soya bean activate and increase its nutritional value to provide for strong growth into a healthy plant. The nutrients that increase significantly include isoflavonoids, betacarotene,

vitamin C, vitamin E and dietary fibre.

Carbohydrates and proteins are also converted into less complex forms. Thanks to these natural processes, YASO® has better taste, can be easily digested and does not cause flatulence. At the same time carbohydrate content decreases.

Years of dedicated research in co-operation with Budapest University of Technology and Economics have equipped Fitorex to interrupt the sprouting process just at the point where the nutrient values reach their peak and offer this uniquely,

nutrition-packed form of soya to the food industry.

Work started on the green-field site in March 2012. When it is completed in August 2012, the plant will be BRC accredited and will employ 30 people, producing 240 tonnes of YASO® per month.

With a growing number of pan-European food and food service companies adopting YASO® in their formulations and recipes, Fitorex is already working on plans for building an extension to its factory in 2013. J

Soy is on Top as a High-Quality Plant Protein he importance of protein in the T human body is undeniable. However, the idea of what makes a protein a ‘quality protein’ has not been as easy to determine. A new study from the Journal of Agriculture and Food Chemistry takes a closer look at the criteria for determining the quality of a protein.

Traditional methods for determining protein quality have shown animal proteins such as milk and eggs to be high in

quality. However, those who are interested in a plant-based diet, or diversifying their proteins, have a more difficult time determining which of their choices are high in quality. Testing methods have shown most plant proteins, such as pea protein, are lower in quality than animal-based proteins.

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“Accurate methods for determining protein quality are key to helping people plan a healthful diet,” says Glenna Hughes, MS, research scientist at Solae.

“Due to the increasing interest in including plant-based proteins in the diet, accurate information on protein quality is needed in scientific literature to help educate consumers and healthcare professionals on this topic.”

The Food and Agriculture Organization (FAO) and the World Health Organization (WHO) recommend using the protein digestibility-corrected amino acid score (PDCAAS) as a simple and scientific procedure for assessing protein quality. The PDCAAS methodology focuses on three different parameters: the amount of each essential amino acid the protein contains, how easily the protein can be digested, and by taking both of those parameters into account, whether the protein meets the FAO/ WHO's amino acid requirements set for children aged two to five years, as they have higher needs to support growth and development than adults.

According to this study, soy protein has a PDCAAS of 1.00, meaning it is a high-quality protein that meets the needs of both children and adults. Eggs, dairy and meat proteins also have a PDCAAS score of 1.0. However, soy proFOOD & DRINK BUSINESS EUROPE, APRIL 2012

tein is the only widely available highquality plant-based protein that achieves this score.

“It’s important for people to understand that a plant-based diet is healthy, but that not all proteins are created equal,” says Connie Diekman, RD, LD, FADA. “If you are planning a vegetarian diet or want to incorporate plant-based proteins in your diet, understanding protein quality using the PDCAAS scale can allow you to select proteins that score higher, such as soy, to ensure that you are getting the essential amino acids you need.”

Solae is a world leader in developing soy-based ingredients. For more information, visit www.Solae.com. J

Cargill Launches New Sustainable Coatings and Fillings argill’s cocoa and chocolate business has C launched a new range of sustainable coatings and fillings for the European market, offering UTZ Certified cocoa powder and Roundtable on Sustainable Palm Oil (RSPO) certified palm and palm kernel products. The new range can be used in confectionery, bakery, cereals, ice cream and a variety of other applications.

“Our launch of coatings and fillings offering UTZ Certified sustainable cocoa and RSPO certified palm oil represents another step in Cargill’s ambition to continue to bring sustainable products to market,” explains Jos de Loor, managing director of Cargill Cocoa & Chocolate. Cargill is a founding member of the UTZ Certified Program for cocoa, which aims to create an open and transparent supply chain for cocoa, and since 2004 it has been an active member of the RSPO, which works to promote the growth and use of sustainable palm oil.

The new products have been developed at Cargill’s Center of Expertise for coating & fillings in Deventer in the Netherlands, which opened in 2009. This facility is the only one in Europe exclusively dedicated to

the production of coatings and fillings. The Center’s technical services specialist team draws on R&D expertise from across Cargill’s various businesses, and has worked closely with Cargill’s European refined oils business to incorporate RSPO certified mass balance palm oil into the new coatings and fillings, which contributes to sustainable production of palm oil.

This cross business collaboration reflects Cargill’s T-model for innovation which combines extensive food knowledge from across Cargill in areas such as ingredients, risk management, sustainability and quality, with expertise in sourcing and nurturing the flavours of cocoa and chocolate.

The production of UTZ Certified sus-

tainable cocoa for use in the new coatings and fillings has been driven by Cargill’s Sustainable Cocoa Program. This aims to strengthen the cocoa supply chain for the future, ensuring a better life for cocoa farmers whilst exercising responsible environmental stewardship.

By choosing UTZ Certified coatings and fillings customers are committing to sustainable cocoa and can use the distinctive UTZ Certified logo, which is independently audited and guarantees that the cocoa in the product is sustainable.

“Coatings and fillings containing UTZ Certified 100% mass balance cocoa powder and RSPO certified mass balance palm oil are the latest piece in the jigsaw for our customers, joining our extensive portfolio of products,” says Jos de Loor. “They complement our wide range of fillings and coatings which include organic, reduced sugar, reduced fat in a wide variety of colours. We produce up to 150 recipes each month, tailor made to meet our customers’ requirements, and we look forward to offering our sustainable fillings and coatings as a further option.” For more information visit www.cargillcocoachocolate.com. J

DD Williamson Introduces Certified Organic Annatto Powder D Williamson has announced the D development of certified organic annatto extract in powdered form. The water soluble food colouring provides a yelloworange shade in dry mixes. Food companies can label it ‘organic annatto extract’ on US ingredient statements. The new product is a portfolio extension to DDW’s certified organic annatto extracts available in liquid form – water soluble, oil soluble, and oil soluble suspension.

Beginning in June, US certified organic ingredients may be marketed as organic in the European Union thanks to a trade agreement signed in February. Together the US and EU organic markets exceed $50 billion in value, according to USDA. “The dry colouring form gives food product developers an addition to their organic ingredient toolkit,” says Jody Renner-Nantz, applications scientist.

“Organic applications include natural cheese, dairy beverage mix, snacks, seasoning, baking mix and confections.”

Annatto, a carotenoid, is extracted from the seeds of Bixa orellana trees grown in tropical regions on several continents.

Quality Assurance International (QAI), an agent for USDA’s National Organic FOOD & DRINK BUSINESS EUROPE, APRIL 2012

Program (NOP), has certified DD Williamson’s processing facility in Port Washington, Wisconsin.

A trusted and recognized provider of colour solutions for the food and beverage industry, DDW operates nine manufacturing sites on five continents. For further information isit www.ddwcolour.com. J 33

Turn-key solutions for Food Industries from the concept to the start-up • Plants and utilities design • Air conditioning and dehumidification systems • Project management • Drying tunnels for chewing gum and other applications SEPE ENGINEERING S.r.l.

Via Magellano 1C 20090 Cesano Boscone (MI) Italy Tel. +39 02 87394934 Fax +39 02 87394572 E mail info@studiosepe.com Web www.studiosepe.com

I DAIRY

Profits and Revenues Rise at Lakeland Dairies Lakeland Dairies, Ireland’s second largest dairy processing co-operative, has reported an 18% increase in revenues to €472 million and a 52% rise in operating profit to €6.85 million for the year ended 31st December 2011. high quality, long life dairy prodperating across fifteen ucts. During the year, we further counties on a cross-border developed our market leading presbasis, Lakeland Dairies ence in Europe and expanded our processed over 700 million litres of milk in 2011 into a range of position as the dairy foodservice value added dairy food service prodmarket leader in the United ucts and food ingredients. Lakeland Kingdom and in Ireland,” Michael Dairies exports to over 70 countries Hanley remarks. “We delivered offering some 170 branded dairy specialist, value added products to Lakeland Dairies is benefiting from its recent investments in advanced the global foodservice, confecproducts to customers.

“While global economic and trad- processing capabilities. In 2010, Lakeland Dairies opened a new Eur20 tionery, bakery and other food ing conditions continued to be diffi- million technologically advanced milk powder plant at its site at industry sectors. We are market cult, it has been an excellent year for Bailieboro. leaders in emulsion technology Lakeland Dairies where we are benewhere we provide dairy based prodfiting from our recent investments in Food Ingredients ucts that delight our customers through advanced processing capabilities together Food Ingredients revenues increased by their functionality and taste qualities in with focused and intensive business devel- 21% to Eur282 million in 2011, driven by foods, whether that is in restaurants or opment activities,” says Michael Hanley, continuing strong global demand in inter- retail.” chief executive of Lakeland Dairies.

Agri-Trading turnover increased by 13% national markets where Lakeland Dairies is The turnover figure of Eur472 million well positioned as a leading European to Eur44 million in 2011 boosted by was underpinned by strong sales, a max- provider of high quality dairy ingredients, increased sales in line with generally posiimised milk processing throughput, with multiple product lines in the milk tive dairy market conditions. Lakeland enhanced logistical capabilities and an powders, proteins and butterfats categories.

Dairies supplied over 140,000 tonnes of ongoing operational efficiency programme “Trends driving the growth in food high quality feeds during the year to its across the organisation. This contributed to ingredient sales include the continuing milk producers, independent stores and a further strengthening of the balance sheet adoption of dairy by consumers in Asian, farmers throughout its catchment area. with shareholders’ funds of Eur81 million African and Far Eastern markets and the at year-end. global trend towards healthier living Outlook Lakeland Dairies has three elements to its including the use of functional foods,” Looking ahead, Michael Hanley combusiness –food ingredients, foodservice and points out Michael Hanley. “Our ingredi- ments: “The global economy has slowed agri-trading. Generating about 60% of ents are known for their high reliability and with markets facing considerable uncerturnover, food ingredients is the largest ele- functionality within the global food indus- tainties. Prices remain under pressure as ment. try as is our ability to create bespoke solu- food companies compete to retain market tions for key customers. Combined with share among cost conscious consumers. our excellent processing facilities, this capa- There is also a global oversupply with surbility will be further advanced in the years plus product coming onto the market ahead and will also contribute to the devel- from New Zealand and the United States opment of new market opportunities as our in particular. This will place significant milk intake expands following the abolition pressure on milk processing returns throughout the year. A weaker euro is of quotas in 2015.”

Foodservice is the second biggest part of required to make Irish exports more comthe group. This business performed strong- petitive. However, with continuing sales ly with a 13% increase in revenues to and volume increases we still anticipate Eur146m fuelled by a renewed business further solid progress by Lakeland development programme, moderate margin Dairies.”

Lakeland Dairies is planning to expand improvements and higher sales to Lakeland Dairies’ extensive client base compared to its processing operations in preparation for the abolition of milk quotas in 2015. The the previous year. dairy co-operative expects that it will Lakeland Dairies processed over 700 million litres increase milk intake by 35% at minimum Market Leadership of milk in 2011 into a range of value added dairy “Lakeland Dairies is an internationally and by up to 55% where reasonable marfood service products and food ingredients. acknowledged expert in the provision of ket conditions exist post 2015. J

O

FOOD & DRINK BUSINESS EUROPE, APRIL 2012

35

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We offer the full cycle of services for waste water management:

• Plant and Process Design • Plant Construction and Installation • Equipment Evaluation, Piloting and Selection • Equipment Installation, Testing & Training • Performance Monitoring and Continuous Improvement • Refurbishment, Remedial and Emergency Response.

Hydro International provides innovative and cost effective solutions for water and waste water management. With over 30 years of experience, we have an established and proven reputation for superior, end-to-end design and support services, from plant design and construction through to performance monitoring, and continuous quality improvement.

We operate within Europe through our licensed distribution network and globally through our affiliates in the US and Asia.

We are leaders in new technologies, which offer improved performance and environmentally sustainability solutions. We are committed to ongoing research and development to find and partner with the best technologies to meet the challenges of global water management.

IRELAND Hydro International Limited Balreask, Trim Road, Navan, Co. Meath, Ireland Tel: + 353 46 907 26 58 Fax: + 353 46 907 26 59 Email: info@hydrointl.ie UNITED KINGDOM Hydro International, UK Office, King Street Trading Estate, Middlewich, Cheshire, SW 1094F, England.

Tel: +44 (0)1 606 83 7777 Fax: +44 (0)1 606 83 7000 POLAND Hydro International Poland Ul. S.omiƒskiego 5, M178 00-195 Warsaw, Poland Tel: +48 (0)51 57 51 796 ROMANIA Hydro International Sos. Lancului 48, Sector 2, Bucuresti, Romania.

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I WATER & WASTEWATER TREATMENT

Hydro International Upgrades Wastewater Treatment at Lakeland Dairies 2011, Hydro International upgraded the wastewater treatment Iandnplant at Lakeland Dairies in compliance with EPA requirement using best technology as requested by Lakeland.

The final design which is now commissioned includes a new Balance Tank/Aeration, DAF plant for the removal of free fats and oils. A second DAF plant using physio-chemical process was used for the reduction of COD and suspended solids prior to the biological treatment plant. The treated wastewater from the secondary DAF was directed to the Bio-towers followed by an activated

sludge treatment plant where the organic loadings were lowered to the discharge license requirement.

A further step was incorporated into the design where the clarified water from the biological treatment plant was then processed through a custom designed filtration media system followed by UF (Ultra Filtration) followed by a RO (Reverse Osmosis) system. This gives the dairy plant total control over its final process water leaving the site. The plant produces drinking water standards prior to discharge to the local river. J

DAF For Food and Beverage Processors any industrial processes, particularly M food processing, drinks/brewery and dairy, generate a large volume of effluent that is discharged into the sewer. The raw wastewater has high biological oxygen demand (BOD), high chemical oxygen demand (COD) and Fat, Oil and Grease (FOG). To reduce environmental pollution, companies often pre-treat the wastewater before the wastewater is discharged into the sewer.

Until now, a system known as Dissolved Air Flotation (DAF) has been used to do this. The DAF system uses a high-pressure pump and venturi system to dissolve air into the wastewater. The solution of air and water is stabilised in a pressure vessel under high pressure.

A stream from the pressure vessel is dis-

charged into a separating (settling) vessel, where the air comes out of the solution and is released as a fine bubble spray. These bubbles reduce the pollutants by floating them to the surface where they are removed.

The new KEE Microfloat system achieves the same result without the need to use a high pressure pump and venturi. Instead, it incorporates a patented system from Aeration Industries, which uses a low-power motor. A specially designed propeller disc on the aerator’s shaft produces extremely fine bubbles and transfers these 10-50 um air bubbles into the water through special ejectors.

Some major advantages of the Microfloat system are that it: removes in excess of 90% of fats, oils and grease (FOG); substantially reduces the BOD and COD of the effluent;

and eliminates the need for fine screens either before or after fat traps.

Dawn Meats in South Wales recognised the advantages of the new Microfloat system and commissioned KEE to build the first Microfloat system in the UK. J

Large Meat Processor Exceeds Wastewater Treatment Regulations Using Existing Facilities astewater from a meat processing plant W is a complex mixure of all sorts containing excrements, blood, cleaning and flushing water as well as wastewater from hygiene systems. Norwegian meat company Nordfjord Kjott was no different.

Nordfjord was having compliance issues with effluent equivalent to the sewage of 35,000 inhabitants being discharged to the municipality.

After trying a variety of wastewater treatment options, Nordfjord Kjott decided on the Biowater CMFF®. The Biowater CMFF® process reduces

the effluent by 90% so it is now discharging the equivalent of the sewage of 3,500 inhabitants to the municipality. The processor now exceeds legislative demands all while using the existing tankage. Nordfjord can now focus on making their high quality meats because of the minimal operator attention that is necessary to run this plant.

The basis of the CMFF® technology is the biological growth on polyethylene pieces called media or carriers. These surfaces provide a protective surface area for the biology to grow. The biofilms can handle extremely high loading conFOOD & DRINK BUSINESS EUROPE, APRIL 2012

ditions without any problems with clogging or shock.

Biowater’s CMFF® Complete Mix Fixed-Film treatment plant has many benefits: * Compact * Highly efficient biofilm * Flexible design – use any size tanks * Remote Monitoring * Low capital cost * Easy retrofit * Eliminates sludge return * Low operational costs.

Biowater Technology is an international provider of biological water and wastewater treatment systems. For more information contact sales@biowatertechnology.com or visit www.biowatertechnology.com. J 37

I BISCUITS & SNACKS

United Biscuits Prepares For Separation Prior to Disposal Having played an influential role in shaping and consolidating the biscuits manufacturing industry in the UK and Continental Europe, United Biscuits is likely to become an acquisition target itself. nited Biscuits is one of Europe’s leading manufacturers and marketers of biscuits and savoury snacks. It is the number one player in the UK biscuit market with well-known household brands such as McVitie’s, Go ahead! and Jacob’s. It is also the number two business in the biscuit markets in France and Belgium, joint number one in the Netherlands, the number two in the UK bagged snacks market and UK cake market and the number one in the UK branded nuts market.

United Biscuits’ other major brands include Penguin, Jaffa Cakes, KP, Hula Hoops, Skips, BN, Verkade and Delacre. The group’s brands are sold in over 100 countries and its has strong consumer bases in the rest of Europe, North America, the Middle East, Africa, Asia and Australia. Following the opening of its Indian factory early in 2010, United Biscuits’ products are now being sold throughout India.

Between its biscuits and snacks activities, UB operates 15 manufacturing facilities of which 11 are located in the UK, and employs over 9,000 people, of whom 7,500 work in the UK. United Biscuits reported Ebitda of £230.8 mil-

U

Equipped with a strong brands portfolio of biscuits and savoury snacks, United Biscuits is well positioned in large, stable markets, which are expected to continue to grow in the medium to long-term.

lion on revenue of £1.3 billion for 2010 but had net debt of £1.14 billion, according to the last report of its financial performance.

Separation Credit Suisse Group is reported to have been appointed to work on separating United Biscuits into two distinct businesses – one focused on biscuits and the other on bagged

snacks – prior to a sale of the two units by joint owners Blackstone Group and PAI Partners.

The two private equity companies put United Biscuits up for sale in 2010 but the auction process was unsuccessful.

Separating United Biscuits, to attract more potential buyers, is regarded as a necessary precondition for future disposal. When the whole group was put up for sale, its price tag of about £2 billion may have discouraged private equity buyers due to the problems of raising the necessary debt finance at that time to fund such a large deal.

Trade buyers within the biscuits or snacks sectors are also likely to consider a single business, which is highly complementary to their existing operations, as more attractive. During the earlier auction process, potential industry buyers are believed to have fallen away leaving only Chinese food group Bright Foods.

However, following exclusive negotiations Bright Foods walked away after failure to agree on price.

The biscuits element of United Biscuits accounts for about 75% of group sales. The snacks side of United Biscuits is estimated to be worth in the region of £500 million.

Blackstone Group and PAI Partners acquired United Biscuits for £1.6 billion in 2006. PAI had originally taken United Biscuits private alongside Cinven in 2000, but decided to reinvest in the business with Blackstone due to the robust top line performance of the company, as well as the scope for further cost optimisation.

Growth Strategy Blackstone Group and PAI Partners have pursued a three-pronged strategy - to support revenue growth through continuous investment in core brands and product development; to address health, indulgence and convenience trends; and to improve profitability through major cost cutting programmes in selling, general and administrative functions, procurement, plant overhead, manufacturing and logistics.

United Biscuits has embedded ‘lean’ principles across all its operations and driven increased efficiency to fund investment in its brands. To fuel growth, United Biscuits has continued to strongly support its core brands, FOOD & DRINK BUSINESS EUROPE, APRIL 2012

United Biscuits is the number one player in the UK biscuit market. It is also the number two business in the biscuit markets in France and Belgium, and joint number one in the Netherlands.

with innovative line extensions, improved product recipes and packaging redesigns.

Health and Nutrition United Biscuits has developed a successful health and nutrition strategy. In 2005, it embarked on a major ten-year programme to improve the nutritional content of its products, by removing trans fat, artificial colours and flavours, and by reducing saturated fat, salt and sugar levels.

Equipped with a strong brands portfolio of biscuits and savoury snacks, United Biscuits is well positioned in large, stable markets, which are expected to continue to grow in the medium to long-term, driven by consumer trends toward convenience, healthy snacking and indulgence.

Consumers are also seeking value and products that are produced by responsible corporations in a sustainable manner. United Biscuits is focused on new and existing product development as well as promotional investments to respond to these trends. Although increasing ingredient costs are putting pressure on profit margins, United Biscuits is continuing to adapt its products to ensure its snacks and treats are affordable, competitive and offer good value to consumers. J 39

I CASE STUDY

United Biscuits Takes Step-by-step Approach to Manufacturing Information Strategy nited Biscuits (UB), a leading internaU tional biscuit and snack business, understood the importance of accessing the data collected from its manufacturing plants in order to gain greater visibility and control. However, recognising the need to balance substantial business change with cost-effectiveness, they developed a strategy that would take their UK factories step by step in the required direction. The key to success was finding the right partner to make the journey with UB. After extensive research, Lighthouse Systems was selected.

An effective manufacturing information system remains the elusive goal for many companies. A number of factors must converge to achieve success: the right on going partnership, a robust standard architecture built on a flexible yet integrated database and manageable costs. Like many businesses, UB had investigated different options but had yet to find the right approach.

A Manufacturing Steering Group was set up to bring the key stakeholders together and agree a common strategy. The solution lay not in combining differences but in recognising that they were all seeking the same thing – accessible and timely data that would be available for driving operational decisions and improvements. This was to start with one system for measuring line ‘potential’ along with consistent and standard KPIs (Key Performance Indicators) which all sites could utilise. This would give a standard view for all and avoid the possibility of each site building its own set of parameters and measures. Having discussed the major issues, the key processes and the desired benefits, the group agreed on a strategy that was called OLP (Overall

40

Line Potential).

Initially, OLP would deliver a specified amount of key production data, manually collected by shift across 11 sites and 130 lines. This offered a broad and thin slice of information across the business and would enable the company to add further detail and complexity over time. This approach represented a relatively low risk, low cost project for the business and would allow evaluation of the system against quantifiable benefits.

System Selection The search for a system began and 11 different suppliers were scrutinised to find the right solution for UB. Phil Chirgwin, UB IS Business Analyst, comments: “We wanted a supplier with whom we could build a long-term relationship and one that could deliver a modular, scalable system that would be cost-effective, flexible and capable of delivering our evolving requirements.

We found that supplier in Lighthouse Systems using their platform, ShopfloorOnline.”

Lighthouse began with a proof of concept that could be tried and tested at one site and then mirrored for all others, one factory at a time. The starting point was a thin package giving key information relevant to all plants in order to enable standard reporting across the manufacturing facilities. The functionality would be built up, as required, over time.

Developing the System It was agreed from the start that those who would use the system should play a pivotal role in designing and specifying it but with-

FOOD & DRINK BUSINESS EUROPE, APRIL 2012

out compromising its standard and integrated features. The information required on the dashboards had to be agreed and built into the system design enabling data input to be interpreted with ease and reports to be automatically generated. This led to a standard model for the several types of manufacturing lines within the company, such as baking and frying, which could be repeated across the enterprise. Once the model was right the roll out could begin.

Dave Allery, Manufacturing Data Systems Manager at UB, says: “We were very keen that the chosen supplier would be able to get to know us well enough to design the basic structure of the system but then share with us the skills to install and run it in-house, with support as required.

That has meant a lot of work up-front scoping the processes and defining them in great detail but it was a necessary and revealing process that will yield huge benefits. This approach was successfully piloted in Manchester and Teesside and then rolled out to the other nine plants across the UK.” The basic structure of the new system delivers a whole range of core functionality to UB. They include availability, waste, OEE, quality, performance and output.

Standard reports have been designed for each of these functions and, now, the company is able take a snapshot of performance across all sites.

Dashboards provide information at 3 levels: * Line level (a view across all machines in the line) * Factory level (a view across a lines in the factory) and * Global (a view across each of the 11 factories).

At a glance, UB can now see waste, output and efficiency levels between factories and lines producing the same products, or compare different products, set against an expected output and cost.

Finished Product Quality Checks Meanwhile, elsewhere in the business, a different need emerged: to replace a legacy database system that was used to capture quality data related to finished goods.

Quality teams in UB take regular samples of finished product from the factories and buy back from their customers, the supermarkets. These then go through a rigorous inspection procedure, whereby any defects or problems found are scored. The scope of the inspection encompasses presentation, packaging, labelling, as well factors such as the product’s freshness, appearance and taste.

Because Shopfloor-Online is an integrated database with multiple modules available, these quality checks were easily incorporated into the core UB model. The benefit of having a web-based solution means that users of the system can be distributed across the entire UB enterprise yet all have the ability to record and immediately analyse and share key data.

The new quality system, called Product Quality Analysis (PQA), has been introduced across all 11 factories and at the main corporate offices.

Benefits to Date There have been numerous benefits to the business directly attributable to the new systems. These include increased efficiency through transparency of information across the plants. This led to quicker response to issues and greater focus of effort.

More structured and accurate reporting has meant the ability for Factory Managers to focus on the areas that need improvement. This in turn leads to an improved ability to trend information and, ultimately, deliver better visibility of performance to the boardroom. Training is quicker than before as all data entry and reports are user generated and uniform.

This also enables people to move with ease from one plant to another without the need for further training.

Lee Stephenson, Manufacturing Change Lead, comments: “We are driving towards lean processing in every part of the organisation and a well designed factory information system (Shopfloor-Online) is a key part of this drive. We can concentrate more on process improvement and optimisation

rather than responding reactively. More informed managers are more forward thinking, focused and effective. Rich data means that trending becomes more accurate and reliable which in turn leads to more viable investment over time. There is no doubt that having accurate data delivered quickly and in a clear, readable format means that we can spot changes, incidents, peaks and troughs in performance instantly and take action.”

Process Parameter Project UB have further developed the idea of bringing all manufacturing information into the one Shopfloor-Online system. A separate project was designed to analyse

and extending the functionality for today’s needs. The aim is to provide operational and quality information within a single system across all Lines. The system will embody the quality control plan and will capture quality and traceability data from the receipt of raw materials, through every step of the production process to finished goods. It will build on the OLP, PQA and Process Monitoring solutions already in place. It will share the same master data and present information through the same style of reports and dashboards. Once the pilot is completed this will be rolled out to all other UK sites.

Although the factory systems are providing a rich data stream for management there is still a large degree of manual data input. The future lies in the automation of data capture where possible from devices on the shop floor.

The ultimate goal is to interface the shop floor system with other applications key to the organisation, such as the ERP system. This will give a single integrated platform for business activities within UB. Moving Abroad Tests are underway to implement Shopfloor-Online in Holland, and, once completed, across three further factories in Northern Europe. Phil Chirgwin adds: “The European plants have different systems in place but this is an opportunity for us to share best practice across the business and provide one standard platform to underpin our strategy – One UB Way.”

process data in the frying process. The Process Parameter module of ShopfloorOnline has been configured to collect 135 data points in real-time from the PLCs controlling the process, using OPC technology. The data is automatically picked up and the results are analysed. It enables UB to maintain historical process data and, in this instance, keep track of quality parameters in food production. Now that the architecture for Process Monitoring has been established at the pilot plant, it is being rolled out to all other facilities by the UB team.

Moving Forward A Quality Management project is currently underway at the Teesside plant, replacing the legacy system with Shopfloor-Online FOOD & DRINK BUSINESS EUROPE, APRIL 2012

Conclusion The initial plan to develop a single system for factory performance information across the UK is now completed, having rolled it out across all 11 facilities.

Implementing the system wasn’t just a technical achievement; getting all plants to report detailed manufacturing information in a consistent way and using it to drive improvements was a huge challenge but one that is delivering real results. Now the whole business can see performance across all 130 lines at 11 factories in a uniform way and know that figures related to downtime, speed losses, waste and performance are all being produced in a consistent way. The future aim is to increase the level of detail by collecting more data directly from key machines in the process and to widen the functionality of the system.

This will add depth and prove invaluable for real-time management and longer-term process improvement. J 41

Norish is a third party, shared user, multi-temperature warehousing and logistics business, which operates from 8 strategically located sites and provides in excess of 75,000 racked pallet spaces, of which 60,000 are temperature controlled. We provide frozen, chilled and ambient supply chain solutions for manufacturers, wholesalers, retailers, traders, importers and exporters

requiring warehousing and associated services on a local, regional and/or national basis.

A flexible, accurate and experienced service is guaranteed at all sites, where you can be assured of a positive reception. These services are supported by a sophisticated WMS system that can track down to individual case level, along with detailed reporting functions in Excel format.

SERVICES

LOCATIONS

Multi-temperature storage Export approved Food Grade Standard Space Rental Order Picking Container Handling Blast Freezing Palletisation Sortation Cross-Docking UK Distribution Customs Bonded Warehousing Co-packing For more information about Norish, it’s locations and the services available please contact

Parking Depot Facilities

Richard Smith

Dave Bell

Group Sales & Business Development Manager

Sales & Business Development Manager

+44 (0) 7712 653 597 richard.smith@norish.com

+44 (0) 7841 996 685 dave.bell@norish.com

www.norish.com

Local Sites, Local Staff – International Standards

Registered Office: Northern Industrial Estate, Bury St Edmunds, Suffolk, IP32 6NL; Registered in England, Registered No.1088811; VAT No. 725 3634 38

STORAGE

I TEMPERATURE CONTROLLED STORAGE & LOGISTICS

Customer-focused Supply Chain Solutions From Norish orish is one of the leading providers of N third party temperature controlled warehousing and logistics services to the UK food and drink industry, including importers, manufacturers, wholesalers, retailers and distributors. Founded in 1975 and listed on the London Stock Exchange since 1986, Norish operates from eight strategically located sites and provides in excess of 75,000 racked pallet spaces, of which 60,000 are temperature controlled Employing 130 people, Norish provides supply chain solutions for customers on a local, regional and national basis. All sites offer storage (including bonded), handling, de-vanning, picking and packing, crossdocking and distribution with freezing and other temperature controlled services available from the cold stores. Norish's sophisticated Warehouse Management and IT Systems enable clients to access reports via the Internet, so providing real time data to support their sales and/or production planning processes. Many clients have chosen to link their SAP systems into Norish, to automate the order process with electronic file transactions. However, Norish is keen to stress that the traditional lines of communication, where you can speak to the people at the site who look after the goods are also offered!

Norman Hatcliff, Managing Director of Norish explains: “At all of our sites we have experienced management teams with short lines of communication, meaning that we can take quick decisions which are essential in such a fast moving market. What we are able to provide is a storage and logistics service solution for manufacturers who are looking to control their inbound supply

chain, from either UK, European or global manufacturing, accurate stock control, responsive service and an understanding of how a supply chain works.”

He continues: “We are experienced in understanding our customers’ supply chain issues and potential pinch points. We work with them to solve these issues proactively and by delivering timeliness of response in respect of inbound and outbound goods and preparation and production of good quality reports. We tend to figure quite heavily in the middle of a manufacturer’s supply chain, whereby we will be holding raw materials, or work in progress and to a degree some finished packed stock pre-secondary distribution.”

Customer-focused The company’s development strategy centres on building long term relationships with customers through anticipating and responding to their changing needs and the provision of a quality service. Norish is committed to ongoing investment in information technology and warehouse optimisation as a key means of maintaining its competitive edge. Indeed, the multi-temperature warehousing and logistics company is well known throughout the UK food and drink industry for its superior performance, and the dedication and professionalism of its employees.

“We are very responsive to our customers’ requirements. We understand what customer service is about and we are able to deliver solutions to our customers without fuss,” says Norman Hatcliff. “We are flexible, approachable, very customer focused and we get the job done.”

Norish operates across the full spectrum of the food and drink industry. “We provide a myriad of solutions to our wide range of customers. We have 323 live accounts covering all aspects of the food and drink industry from customers who might spend £200 a year to those that would spend £2 million,” he adds.

For example, Norish is currently handling all the drummed stock of fruit juice concentrate for a soft drinks manufacturer. This entails assembling loads and delivering product straight into the customer’s manufacturing units. “We are on short lead times to FOOD & DRINK BUSINESS EUROPE, APRIL 2012

make sure their production lines keep running,” he points out.

Norish also provides warehousing and picking services for a manufacturer of frozen ready meals, which are distributed to NHS trust hospitals. Orders are electronically received by Norish by 3pm each day, picked and assembled overnight and out-loaded for delivery early the next morning.

Market Pressures Norish has had to rapidly adapt its services to meet the changing requirements of customers adjusting to the current challenging trading environment. “With the economic pressures that we have all been experiencing over the past few years, we are seeing, understandably, a drive and a desire from our customers to move their stock levels down so that they can reduce working capital,” comments Norman Hatcliff. “The lead times on supply chains are becoming much shorter and we as operators therefore need to be very flexible in our ability to provide the service to our customers. That means we have to work harder, be more responsive and provide intelligent solutions. These are areas where we are able to succeed because of the experience that we have and the systems that we operate.”

Work Ethic Norish has a vast amount of expertise and experience within the temperature controlled storage and distribution business. The average service of its management team is 12 years with a combined 275 years of experience in cold storage and warehosuing.

“We have a strong and dedicated team in Norish with a wonderful work ethic, where we consistently deliver a great service and enjoy being part of our customers supply chain. It is quite unique in this day and age, after all ‘People do Buy People’ and we have very good people,” the Norish Managing Director concludes. J 43

I NUTRACEUTICALS & FUNCTIONAL FOODS

Vitafoods Europe and Finished Products Expo – 22-24 May 2012, Palexpo, Geneva he most important global event to conT centrate exclusively on nutraceuticals, raw materials, and functional food and drink ingredients, Vitafoods Europe, is set to celebrate its fifteenth anniversary, by staging its biggest edition to date.

Vitafoods Europe, and the co-located Finished Products Expo, which take place from 22-24 May 2012 at Palexpo, Geneva, are on course to exceed last year’s recordbreaking events, when more than 10,000 attendees benefited from cutting-edge insights from leading industry experts.

Vitafoods Europe caters to a rapidly growing nutraceuticals industry, which is projected to be worth $207 billion by 2016. With the market booming, both events are set to welcome hundreds of ingredient suppliers, dietary supplement manufacturers and equipment and service providers over the three-day show, along with thousands of industry experts discussing the key developments shaping the market.

Vitafoods Europe will welcome international brands such as BASF, Biofortis, Croda Europe, Davisco Foods International, Danisco, DSM Nutritional Products Europe, Frutarom, Glanbia Nutritionals, Naturex and Ocean Spray International whilst exhibitors at Finished Products Expo include Ubifrance, Bariatrix Europe, Medex, Nature’s Plus and NOW International. Visitors to both shows will also have the opportunity to do business with and discover new ingredients from nutraceutical companies around the world, with exhibitors from China, Israel, Croatia, Poland, Slovenia, South Africa and New Zealand all present across the two shows.

New Product Zone The New Products Zone, located at the show entrance, will act as a guide map for visitors wishing to plan a route that encom-

the needs of their companies. These will include advice on regulations regarding product formulas and labeling to assist with marketing plans.

passes new products of interest. Over 150 new products are expected this year.

Highlights will include BONOLIVE, the only bone health ingredient made from olive polyphenols on the market from BioActor and DDS Plus 3, containing the award-winning, tested formula found in Probioplus DDS from UAS Laboratories/Probiotic Co. Poster Sessions New for 2012, the Poster Sessions on the exhibition floor will give researchers an opportunity to share their innovative projects with other potential collaborators, researchers and commercial partners or investors.

Suppliers Seminars The free to attend Supplier Seminars will give visitors the chance to see some of the latest products in action and get detailed information on the benefits to their business. More than 25 sessions will take place over the course of the three days including Chris Kilham from Naturex discussing medicine hunting for superplants, Véronique Fabien Soule from Rousselot examining the nutritional properties of Peptan Collagen Peptides in the framework of the EU health claims regulation and Dr Frank Shönlau from Horphag Research investigating Pycnogenol and its role in improving cognitive function.

VitaTrend, a joint initiative between Vitafoods and Innova Market Insights, will examine emerging trends that will impact on new product activity in the nutritionals and functional foods market. At the forefront of this year's sessions will be the impact of the publication of the European Commission’s ‘Union list’ for generic health claims. VitaTrend will feature daily 30-minute presentations from Innova Market Insights experts from 10.30–11.00 and 16.00–16.30. Visitors can also take part in an interactive tour of these trends.

In addition, the international food and nutrition policy consultancy EAS will offer visitors free one-on-one sessions tailored to FOOD & DRINK BUSINESS EUROPE, APRIL 2012

Product, Ingredient and Consumer Insights Also on the show floor, Mintel’s ‘Product, Ingredient and Consumer Insights’ Pavilion, will feature presentations and tasting sessions that bring research to life while investigating trends. Mintel experts will provide real market examples and then forecast how the trends will shape the future of the industry.

Aside from Mintel’s Pavilion, the International Pavilions will enable visitors to meet with new suppliers and learn about local products from regions throughout the world including China, France, India, Belgium, Serbia, Korea and the USA, while the Service Pavilion will help visitors source services from regulatory experts to contract manufacturers.

Finished Products Expo Alongside Vitafoods Europe, co-located Finished Products Expo will host its own dedicated features, including the New Products Zone, which offers visitors a guide to where the latest innovations are being showcased. One of the highlights this year will be NEWtritious’ Kherb Appeal, an instant pudding that curbs appetite and provides an excellent source of fibre, vitamins and minerals.

Vitafoods Europe Conference Away from the show floor, Vitafoods Europe will also host its annual scientific and commercial conference with an agenda that has been shaped and peer reviewed by its new Executive Advisory Board, which consists of renowned scientists and commercial experts.

More than 40 presentations will discuss consumer trends, the global performance of functional food and drink, health claims, clinical trials and human testing, brain and mind health and regulation. Delegates will be able to learn about essential nutrients and cognitive function, generating food structures to aid consumer weight management and how to better measure food quality.

For further details about Vitafoods Europe and Finished Products Expo, visit www.vitafoods.eu.com or www.finishedproductsexpo.com. J 45

QUALITY

I

SAFETY & HYGIENE

PERSONAL PROTECTIVE EQUIPMENT

Branston Switches to Low-cost Nitrile Gloves From Needlers ne of the UK’s leading potato buyers, O packers and distributors, Branston, has saved over 50% on its glove spend by switching to a new heavy duty nitrile glove from Hull-based janitorial and PPE supplier, Needlers. With the cost of rubber having risen by over 50% during the past year, Branston’s category purchasing controller, Darren Myall, set out in 2011 to find a cost-effective alternative to the latex gloves used at the company’s Lincolnshire-based site.

Having already established a good working relationship with Needlers, Darren Myall began working closely with the company to specify a new glove which would offer value for money, without compromising on quality. The new gloves needed to provide good dexterity and keep hands warm and dry during food processing applications, such as potato grading. All agreed that Needlers new Reldeen heavy-duty nitrile gloves would fit the bill exactly, and Branston began trialling the products, I

before making a permanent switch to the new gloves.

“We were previously using latex household gloves, which provided everything we needed, but were just too expensive in light of rising rubber prices. The advice that Needlers provided was excellent, and it really made all the difference to be able to trial

the products before we made our final decision,” Darren Myall explains.

“Making the switch to the new nitrile gloves was essentially a cost savings exercise, and that’s exactly what’s been achieved.

We’ve been able to save money due to the reduced packaging, as the new gloves aren’t individually wrapped, but loosely packed inside a box which is fully recyclable. The fact that the new gloves are ambidextrous too has cut our costs significantly, as we only have to replace one glove if they’re torn or damaged. The gloves are also latexfree, which has really helped with employees who suffer from latex allergies.”

Needlers is one of the largest suppliers of janitorial and PPE equipment to the food manufacturing sector, with 2 Sisters, Greencore, Samworths, Cranswick and ABP amongst the company’s high-profile national accounts. Needlers prides itself on offering outstanding customer service, and makes daily deliveries across the UK using its own fleet of distribution vehicles. J

WATER SAMPLING

Thermo Fisher Scientific Improves Water Sample Collection With New Containers hermo Fisher Scientific, the world leader in serving science, has introT duced a new range of Thermo Scientific Sterilin Water Sampling Bottles that better protect samples against contamination and other damage after collection. Designed for either chlorinated or non-chlorinated water sampling, the new bottles are available in two designs – square and rectangular, and both styles improve handling and traceability over standard containers. The over-cap design of the bottles reduces the risk of contamination as well as bottle-neck damage that can occur during transit. Tamper-evident seals also reduce the need for re-testing.

The square bottles, available in 500mL and 1000mL volumes, have a lower profile than many other models, making them ideal for use in restricted-access areas. Rectangular bottles, available in 350mL and 500mL capacity, have a flatter style that is useful when storage space is limited.

Thermo Scientific Sterilin Water Sampling Bottles are lightweight and durable, ideal for use within industrial applications. Manufactured from polyethylene terephthalate (PET), these bottles are available dosed with a buffered sodium thiosulphate (Na Thiosulphate) solution or undosed.

Product specifications can also be tailored to individual customer requirements. For full details, call +44 (0)844 844 3737, email info@sterilin.co.uk or visit www.sterilin.co.uk. J 46

FOOD & DRINK BUSINESS EUROPE, ÀPRIL 2012

I BAG HANDLING & SEALING

Ultrasonic Sealing System Lifts Bagging Machine Performance talian manufacturer PFM Irange has developed a top-ofVetta vertical formfill-seal machine equipped for the first time with a new ultrasonic sealing system that improves seal efficiency in difficult environments and helps save materials.

The Vetta is already one of PFM's most popular models as a result of its high performance and capacity to produce over 20 different pack style, including reclosable, from a single machine.

Ultrasonic sealing brings further advantages, particularly for handling frozen food and dusty products that may contaminate the seal area and reduce seal quality. Unlike conventional heat sealing in which heat is applied to the outside the film, ultrasonic technology generates the heat for the sealing process from within the film. This means that wet, damp and dusty surfaces can be hermetically sealed while the joint itself sets virtually immediately, achieving full strength for maximum production speeds.

Using ultrasound rather than traditional heat sealing also allows joints to be narrower, according to PFM, saving packaging materials, and eliminates build-up of film residue on the sealing tools for faster cleaning and considerably reduced downtime.

PFM has also developed a new DuoBag machine which uses a single web of film to produce stand-up four-corner sealed bags with an additional pocket to hold promotional items or accessories.

Typical applications include snacks such as cheese and processed meat with their own cutlery and wipes, confectionery promotions

Pacepacker’s Total Bag Control System K-based Pacepacker Services, which specialises in the design and manufacture of robotic and conventional automatic packing sysU tems, has overcome the problem of heat sealing or stitching difficult to handle sacks with a system which supports and guides the bag throughout the process so that a perfect seal is achieved every time the Total Bag Control System.

The system’s motorised grip arms move around the bag as it is released from the spout clamp, where a pair of fingers either stretch or reform the gussets of the bag, to close it and hold it in its formed state. These arms are then driven toward the sealer, transferring the bag into a powered twin belt feeder, making it possible to handle even the most unstable products and thin flimsy bags with ease as the bag top is held at all times prior to sealing. The consistency of product presentation that the system achieves eliminates the need for operator supervision. J

with giveaways or toys and pasta with sachets of spices or flavouring. “The DuoBag is the first stand-up two chamber bag, offering high on-shelf visibility and a whole range of merchandising opportunities in food, snacks and confectionery,” points out PFM sales and operations director Chris Bolton. “The single web keeps cost to a minimum.” J

BOC Develops Innovative In-line Leak Detection System OC, the UK’s largest supplier of industrial gases and related B equipment, has developed a new packaging in-line leak detection system. Assuring the integrity of packaging, especially for fresh and chilled foods employing MAP, is a major consideration for manufacturers. Pack failures not only impact on the efficiency of the supply chain but premature spoilage of the fresh product can greatly increase costs. BOC’s new system helps food processors ensure that their packaging is secure at least to the point of leaving the production lines.

The system uses hydrogen gas, the smallest gas molecule, to test packaging for any flaws or leaks. The unit is designed to provide a complete in-line assessment of each individual pack. By immediately identifying any problems, it allows manufacturers to take remedial action quickly and so minimise product and revenue loss. J

Sewing Systems From low cost, robust portable sewing machines, mini systems for easier handling, high speed sewing systems with integrated bag clamper and conveyor for automated hands free handling, along with all sewing threads & crepe paper.

Sealing Systems From low cost, manual sealers either bench top mounted or pedestal models to Higher speed hot air, band or radiant continuous Saxon sealers. An array of options available for bar coding, bag trimming, dust free sealing to ATEX versions & more.

FOOD & DRINK BUSINESS EUROPE, APRIL 2012

47

Award Winning Rapeseed Oil Producer Chooses Viscose Closures iscose Closures of Crawley is supplying V aluminium caps to multi-award winning Irish rapeseed oil producer, Derrycamma Farm. Having already won Gold Stars at the 2010 and 2011 Great Taste Awards, Derrycamma Farm has now won an award at this year’s Irish Food Writers’ Guild awards which celebrate producers of the highest quality.

Viscose Closures is supplying plain black 31.5 mm x 44 mm aluminium caps with an

integral oil pourer. These are being used across Derrycamma’s range of plain and infused oils on both 250ml and 500 ml bottles.

“I became aware of Viscose Closures through their work with other quality food producers,” says Patrick Rooney, owner of Derrycamma Farm, “and I have been totally happy with the quality of the product and their service.” For further information visit www.viscose.co.uk. J

FDL Builds Relationship to Last With AST K single-source packaging solutions U provider, FDL Packaging Group of Haydock, Merseyside, has been named exclusive UK distributor for AST Plastic Containers, the German leader in blowmoulded plastic packaging. The new relationship with AST represents a major extension to FDL’s already impressive product range now bolstered by AST’s market-leading offering of high quality containers in high density polyethylene.

From the outset, FDL had recognised a kindred spirit in AST as a company that, over a period of more than thirty years, had mirrored its own success in establishing itself as market leader in the field of plastic packaging in much the same way that FDL had established market leadership with its signature range of fibre drums.

The addition of AST to the FDL portfo-

lio now provides FDL with an equally strong offering in both the highest quality fibre-based and plastic products in addition to its comprehensive range of steel drums, bulk containers, corrugated and general packaging.

AST currently employs over 100 people

at its headquarters in Erndtebruck, Germany. Increasing demand for its product range in the UK has led AST to establish a second manufacturing plant locally in Wrexham to produce high quality plastic containers from 5 to 30 litres in capacity using the latest extrusion blow-moulding technology.

AST produces containers in high-density, high molecular weight polyethylene, using extrusion blow-moulding technology, with ultimate drum wall thickness control ensuring maximum top load strength.

Containers can be standard, UN-approved for the transportation of dangerous goods or suitable for contact with food or cosmetic products. All containers are available in an infinite number of specifications and weights. For further information contact FDL Packaging Group on Tel +44 (0)1942 722299 or visit www.fdlgroup.co.uk. J

New Lazy Susan at £1600

PM Conveyors has developed a new U version of its Rotary Table (Lazy Susan) to operate as an integrated part of a product handling system or to act as a stand alone unit to act as a buffer when required for accumulating and unloading product but to also ensure total evacuation and as standard incorporating variable speed control 48

for £1600, which UPM claims is the most competitive price in the market.

An Optional Extra is the overhead mounted multi adjustable product flow orientation guide to ensure ‘first in first out of product’ plus UPM guarantee the elimination of any operator trap points as the underside of the table is totally enclosed and conforms to all Health and Safety at Work Acts.

UPM Launched the Lazy Susan at the EasyFairs show which resulted in several orders from contract packers for 30 units to improve efficiency and better staff utilization.

In feed and out feed belt conveyors can also be supplied from a standard range of FOOD & DRINK BUSINESS EUROPE, APRIL 2012

plastic link belts which include 90 and 180 degree bends allowing versatility into a production area where space is limited but UPM can custom engineer a system at no extra cost as all manufacture is carried out in-house including fabrication programming and control build allowing complete control of quality; inspection and maintaining delivery promises.

UPM was awarded the Queens Award for Innovation in its production of High Molecular Weight Polyethylene (HMWPE) belt conveyors which has now been extended to the range of Rotary tables which are available in a variety of diameters. For further information visit www.upmconveyors.co.uk. J