December/January 2017
Wrights Food Group invests for continued growth
Food & Drink Business Website:
www.fdbusiness.com
C o n t e n t s
- 36 C ONFECTIONERY & S NACKS
- 3 M ERGERS & A CQUISITIONS
ProSweets Cologne 2017 – New recipes thanks to alternative ingredients.
Coverage of British and international deals.
P AGE 21 PAGE 3
- 7 C OVER S TORY Wrights Food Group invests for continued growth.
Christophe Barnouin, CEO, Wessanen.
Peder Tuborgh, CEO, Arla Foods.
- 45 I NGREDIENTS & C ONSUMER F OODS Kerry Group hones its technological edge.
PAGE 29
R EGULARS - 13 P OULTRY
James Truscott, MD, Branston.
Processing & Manufacturing 10, 25-27, 37, 40 & 41
European poultry remains core to Cargill. PAGE 5
Patrick Coveney, CEO, Greencore.
Materials & Ingredients . . . . . . . . 11, 39, 46-48 Quality & Safety . . . . . . . . . . . . . . . . . . . 17-19 Bottling & Packaging . . . . . . . . . . . 18, 38 & 41
- 21 D AIRY
Energy & Environment . . . . . . . . . . 25, 42 & 43
Revamped Arla Foods pursues new growth strategy.
PAGE 33
Martin Radvan will head Mars Wrigley Confectionery.
Managing Director: Colin Murphy Editor: Mike Rohan Group Operations Manager: Sylvia McCarthy Advertising: Ian Stewart & Rachel Howard
- 29 P OTATOES Branston prepared for changing market demands.
PAGE 7
Production Manager: Sylvia McCarthy
Peter Wright, CEO, Wrights Food Group.
Food & Drink Business Europe is published by Premier Publishing Limited, 51 Parkwest Enterprise Centre, Nangor Road, Dublin 12. Tel: + 353 1 612 0880 Fax: + 353 1 612 0881 E-Mail: info@prempub.com Website: www.fdbusiness.com Premier Publishing Limited can accept no responsibility for the accuracy of contributors’ articles or statements appearing in this magazine. Any views or opinions expressed are not necessarily those of Premier Publishing and its Directors. No responsibility for loss or distress occasioned to any person acting or refraining from acting as a result of the material in this publication can be accepted by the authors, contributors, editor and publisher. A reader should access separate advice when acting on specific editorial in this publication!
- 31 C ONFECTIONERY Latest developments in European confectionery.
Design, Origination and Separations by Fullpoint Design (057) 8680873. (086) 1573510
Top 30 Players in the Confectionery Market in Europe.
PAGE 15
Printed by W&G Baird.
David MacLennan, CEO, Cargill.
Annual Subscription (UK and Ireland) £95 Overseas Subscription £115
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
1
M E E R R G G E E R R S S M Asahi Group Acquires Former SABMiller Businesses in Central and Eastern Europe Anheuser-Busch InBev has agreed to sell the businesses formerly owned by SABMiller in Poland, the Czech Republic, Slovakia, Hungary and Romania to Asahi Group Holdings of Japan for Eur7.3 billion. The disposal is in line with the commitments made by Anheuser-Busch InBev to the European Commission in order remove EU competition concerns arising from its acquisition of SABMiller. Asahi is acquiring businesses in five countries in Central and Eastern Europe relating to the Pilsner Urquell, Kozel, Tyskie and other brands. Asahi had already purchased a strong business platform in Western Europe in October 2016, comprising Italian, Dutch, UK and other related assets from SABMiller, including global premium brands such as Peroni and Grolsch, for Eur2.55 billion. Through its latest acquisition, together with its Asahi Super Dry, Peroni and Grolsch brands, Asahi aims to establish a unique position as a global player, mainly focusing on a leading premium brand portfolio to achieve sustainable growth.
Sumitomo Corporation to Acquire Fyffes For €751.4 Million Sumitomo Corporation, the Japanese global trading company, has made a Eur751.4 million recommended cash offer for Fyffes, a leading international grower, importer and distributor of fresh produce. With annual turnover in excess of Eur1.2 billion, Fyffes is headquartered in Dublin, Ireland with operations in Europe, the US, Canada, Central America and South America and Asia. Fyffes activities include the pro-
& &
A C C Q Q U U II S S II T T II O O N N S S A
duction, procurement, shipping, ripening, distribution and marketing of bananas, pineapples, melons and mushrooms. It markets its produce under a variety of very well-known brands including Fyffes, Sol, Turbana, Hoya, Highline and All Seasons, and employs in excess of 17,000 people worldwide. Sumitomo has been active in the banana industry since the 1960s and is the market leader in Asia with a fully integrated business model with interests ranging from plantation operations in the Philippines to retail distribution across the Asian region. Currently, the Sumitomo Group imports approximately 30% of the bananas into the Japanese market.
Heineken UK to Acquire Pub Group For £403 Million Heineken UK has made a £402.7 million recommended final cash offer to acquire Punch, one of the UK’s largest leased pub companies, with a portfolio of more than 3,500 pubs nationwide. The addition of Punch to Heineken UK’s existing leased pub business Star Pubs & Bars – will make the Dutch brewing group the third largest pub landlord in the UK. Stefan Orlowski, regional president Europe for Heineken, comments: “This transaction is a significant step forward in our strategy to unlock value in the UK pub market. The performance of our Star Pubs & Bars business clearly shows that well invested pubs, in the hands of skilled and ambitious independent operators can outperform. Leveraging our extensive experience will enable us to realise increased potential from the pubs we are acquiring and deliv-
er positive returns to our shareholders.”
Stefan Orlowski, regional president Europe for Heineken.
Wessanen Purchases Organic Brands in Spain Wessanen, the Netherlandsbased group which specialises in healthy and sustainable food, has acquired Biogran, the leading manufacturer and distributor of organic brands in Spain, for Eur67 million. Over the last few years, Biogran has recorded strong growth in both health food stores as well as in the grocery trade in Spain. In 2016, net revenue is expected to grow to Eur32 million with an EBITDA margin of close to 17%. Christophe Barnouin, chief executive of Wessanen, comments: “The acquisition of Biogran broadens our geographic footprint and is a further step in the execution of our strategy and vision of becoming the leader of organic and sustainable food in Europe.”
Christophe Barnouin, executive of Wessanen.
chief
Pernod Ricard to Dispose of Brandy and Sherry Business Pernod Ricard has agreed to sell, through its Mexican and Spanish subsidiaries, the Domecq brandies and wines business to Bodega Las Copas, a joint venture between Emparador Group and Gonzalez Byass. The transaction includes the brand portfolio of Mexican brandies Don Pedro, Presidente and Azteca de Oro as well as the winery related to the production
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
of Mexican wines in Ensenada, together with the relevant inventories related to the Domecq brands in several markets, including Spain, United States, Belgium and the Netherlands, among others. The disposal is in line with the Pernod Ricard’s strategy to simplify its portfolio for growth and focus on its priority spirits and wines brands. It reinforces the presence of Bodega Las Copas in the global brandy category.
Gruppo Campari Exits the Italian Still Wines Business Gruppo Campari is selling its Italian wineries Sella & Mosca and Teruzzi &Puthod for Eur62 million. In the financial year ended 31 December 2015, the two companies registered overall net sales of Eur21.4 million and overall EBITDA proforma of Eur3.2 million. After the disposal of Sella & Mosca and Teruzzi & Puthod, which entered into Gruppo Campari’s portfolio in 2002 and 2005 respectively, Gruppo Campari will complete its exit from the Italian still wines business. This move started in 2015 with the disposal of the Italian winery Enrico Serafino.
PepsiCo Expands Health and Wellness Offering in Beverages PepsiCo has agreed to acquire KeVita, a leading North American creator of fermented probiotic and kombucha beverages, for an undisclosed sum. The transaction will expand
3
M E E R R G G E E R R S S M PepsiCo's health and wellness offerings in the premium chilled beverage space. Upon closing, which is subject to regulatory approval, KeVita will continue to operate independently with its production and bottling facilities located in Oxnard, California.
Cranswick Acquires Leading Northern Irish Pork Processor UK food group Cranswick has acquired Dunbia Ballymena, a leading Northern Irish pork processing business which currently employs 360 people and processes around 7,800 UK farm assured pigs each week. The acquisition enhances Cranswick’s pig processing capability and establishes a significant presence in Northern Ireland. Adam Couch, chief executive of Cranswick, comments: “This acquisition strengthens our UK pork processing business and provides us with greater control over our supply chain, ensuring that we can maintain the production and processing of high quality, UK farm assured, pigs which is central to our customer’s requirements. The management at Ballymena have created long lasting and sustained supply chain relationships and we look forward to building on this and continuing to invest in the facilities, and the team, over the years ahead.”
Adam Couch, chief executive of Cranswick.
Grupo Palacios Consolidates Position in Spanish Provenance Foods Grupo Empresarial Palacios Alimentacion has completed two acquisitions which will strengthen its position as a leader in the Spanish prove-
& &
A C C Q Q U U II S S II T T II O O N N S S A
nance food sector. Firstly, the group is consolidating its leadership in chilled foods with the acquisition of Precocinados Fuentetaja. In addition, Palacios is reinforcing its international presence with the acquisition of Elore Holdings. Following the acquisitions of Fuentetaja and Quijote, Palacios will generate a turnover of more than Eur200 million, with more than 25% from international markets, and will have six production facilities in Spain and one in the USA. Its products will be present in more than 25 countries.
Greencore to Expand US Business With $747.5 Million Acquisition Greencore Group, the Dublinbased international convenience food manufacturer, plans to strengthen its US business with the proposed acquisition of Peacock Foods for an enterprise value of $747.5 million (£594.3 million). Peacock Foods is a fast-growing US convenience food manufacturer with strong positions in frozen breakfast sandwiches, kids’ chilled meal kits and salad kits, generating revenues of approximately $1 billion and adjusted EBITDA of $72.1 million in the year to September 2016. Patrick Coveney, chief executive of Greencore, says: “The acquisition of Peacock will transform our US business, strengthen our position in high growth categories, broaden our channel and customer exposure, and add significant scale to our operations.” The proposed acquisition will add seven wellinvested scale sites to create a network that will have five times the footprint of Greencore’s current US operations and enhanced geographic reach. Greencore is projecting annual cost synergies of at least $15 million by the 2019 financial year through combining Peacock with its existing US operations.
Douwe Egberts, Kenco, Pilao & Gevalia.
Ornua Acquires US Dairy Ingredients Business
Patrick Coveney, chief executive of Greencore
Jacobs Douwe Egberts Makes $1 Billion Offer For Super Group Jacobs Douwe Egberts, the global tea and coffee business, has, through its Sapphire Investments subsidiary, made an S$1.45 billion ($1 billion) offer for Singapore-based Super Group, a leading pan-Asian integrated instant food and beverage brand owner and manufacturer. Under its core Branded Consumer segment, Super Group and its subsidiaries manufacture and distribute branded consumer products, primarily instant coffee and tea, instant tea mixes and instant cereals,
with a portfolio of over 160 instant beverage and food products distributed in over 65 countries under multiple brands such as Super, Essenso, OWL and Nutremill. Super Group is one of the few companies in the world with raw material selection and manufacturing capabilities in nondairy creamer, instant soluble coffee powder and cereal flakes. Super Group currently operates 15 state-of-the-art manufacturing facilities located in China, Malaysia, Myanmar, Singapore, Thailand and Vietnam. Jacobs Douwe Egberts currently serves consumers in more than 100 countries through brands including Jacobs, Tassimo, Moccona, Senseo, L'OR,
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
Ornua, Ireland’s largest exporter of Irish dairy products, has acquired the CoreFX Ingredients division of MCT Dairies and a powder ingredient production facility in Orangeville, Illinois. The acquisition is Ornua’s first specialty dry ingredients production facility in the US. The newly named business, CoreFX Ingredients complements Ornua’s existing ingredients production facilities in Saudi Arabia, Spain, the UK and the US, delivering scale and shared dairy technologies. Headquartered in Chicago, CoreFX Ingredients uses spray drying and dry blending technologies to produce a range of dairy, cheese and lipid powder ingredient solutions for US food manufacturing and foodservice customers. Its serves a wide range of markets including snack foods, sports nutrition, soups/sauces and dressings, infant & toddler nutrition, desserts, bakery and dairy. Kevin Lane, chief executive of Ornua, comments: “This acquisition is another key milestone in Ornua’s US expansion programme and is in-line with our strategy to invest in high growth and profitable dairy businesses. CoreFX Ingredients will provide our Ingredients division with greater scale and enhances our capability to deliver bespoke ingredient solutions to our customers. Importantly, we can share its dairy technologies across all of our ingredient operations around the world and in turn drive growth.”
Kevin Lane, chief executive of Ornua.
5
COVER STORY
Wrights Food Group Invests For Continued Growth Having invested £11 million in the last two years, including the construction of a £6 million state-of-the-art confectionery plant and the installation of a new £1.2 million pie production line at its headquarters in Crewe, Wrights Food Group is set for continued growth as the English family business enters its 91st year.
W
rights Food Group has developed from a small scale pie bakery into a fully fledged food group, producing an extensive range of savoury products, cakes and ready meals from its food manufacturing plants in Crewe for the retail and food service sectors. Having celebrated its 90th birthday in 2016, Wrights currently employs more than 470 people and has a turnover of £47 million. The company’s savouries, confectionery and ready meals manufacturing facilities in Crewe make more than 180 million products every year, with the capacity to produce 900,000 doughnuts-aweek, and more than 26 million cookies per annum. The new, 40,000sq ft confectionery plant is located at Second Avenue in Crewe, adjacent to the main 85,000sq ft production facility and offices at Weston Road. Developed at a cost of £20 million, the bakery complex produces more than 3 million savoury products every week. The production facilities are complementary and share storage and distribution facilities.
The new £6 million confectionery plant features fully automated, state-of-theart manufacturing equipment.
New Confectionery Plant Wrights Food Group’s new purpose-built facility for producing cakes and desserts, which was recently officially opened by HRH Princess Anne, is now running around the clock, seven-days-aweek producing 144 individual products for major customers in the food service, bakery and retail sectors. The new confectionery plant features fully autoPeter Wright, chief executive of Wrights Food mated, state-of-the-art Group. manufacturing equipment, including new VMI mixers, depositor lines, proofers, automated inline fryers, ultrasonic robotic cutting equipment, and spiral freezers from Starfrost. “We are already seeing the benefits of our investment in the confectionery plant with improved efficiencies, less waste, better consistency and the flexibility to produce a much wider range of quality products for our growing customer base,” says Peter Wright, chairman and chief executive of Wrights Food Group. “The factory will bring numerous advantages as the business develops, giving us the flexibility to diversify in the future and work with customers to
manufacture innovative products to their bespoke requirements and specification.” He adds: “Although it’s highly automated, a number of products, such as éclairs and cakes, are still hand-crafted, which gives us a competitive advantage.” Technologically Advanced Wrights Food Group’s company ethos is to ‘Produce Quality Food using the Best Ingredients, The Best Equipment and The Best People’. Indeed, Wrights is a well-invested and technologically advanced food processor.
Wrights Food Group has invested £1.2 million in a new pie production line.
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
7
“We’re always looking to invest in the latest technology, which helps us be more efficient and able to increase capacity,” remarks Peter Wright. “For example, the new spiral freezer by Starfrost allows cookie dough, brownies and doughnuts to come off each production line straight into the spiral freezer, and after 50 minutes we have a packed, saleable product. Our old system involved overnight freezing, so we’ve cut dramatically the time it takes to manufacture these products and we’re able to increase production to meet customer demand.”
off service that would supply the baking industry with frozen, ready-to-bake savoury products.” Bake off now accounts for 75% of turnover, and the company sells more than 1,000 pallets each week. Similarly, the expanding company was also producing some cakes for its own retail outlets, and so it was a natural move for it to start manufacturing a range of frozen confectionary products such as dairy cream cakes, brownies and other items under the ‘Thaw and Serve’ brand. In 2009, Wrights diversified further by acquiring Pyrol Frozen Foods, a Nuneatonbased food manufacturing business, specialising in producing high end ready meals. “It was a great bolt on company, and by cutting operational costs, delisting unprofitable product lines and focusing on quality, we’ve turned that business around,” he adds.
Evolving Business To supplement its broadening range of traditional savoury products, Wrights Food Group has diversified into ready meals and confectionery production. “To survive and prosper The company recently expanded its ready meals for as long as we have, you need to keep evolv- portfolio with the introduction of its Select range. ing the business and looking for new opportunities,” points out Peter Wright, who has presided over much of this diversification since taking over leadership of the company in Continual Innovation One of the foundations of the company’s success had been its abili1992. For instance, Wrights has developed an extensive range of frozen, ty to innovate and meet changing customer and consumer ready-to-bake savoury products in response to changing market demands. The Wrights team of development chefs constantly creconditions. Peter Wright explains: “For many years, all bakers ate new ideas and bespoke products for customers to keep their manufactured their own savoury products, but due to changing leg- menus fresh and individual, so maintaining the company’s reputaislation large capital investment was needed for small bakers to seg- tion for innovation, quality, service and competitive pricing which regate the manufacturing of meat products on their premises from has been built up over 90 their bread production, which in those days was the staple part of years. The company recently their business. It provided an opportunity for us to develop a bake expanded its ready meals portfolio with the introducion of its Select range – a step up from its Classic line – which features several dishes inspired by Texas and America’s Deep South. The seven-strong range includes: Louisiana squash and black bean lasagne; chunky slow cooked chilli and pit beans; chorizo and meatball pomodoro with macaroni cheese; boneless beef rib on Boston pit beans; goats’ cheese and sweet potato pasta; Sicilian lemon chickAlthough the new confectionery plant is highly automated, a number of en and mascarpone; and Wrights Food Group produces more than 26 products, such as éclairs and cakes, are still hand-crafted. lamb kofta tagine. million cookies every year.
8
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
“We wanted to develop a new range of cakes for consumers to pick up on-the-go as a small treat, so opted for individually wrapped slices,” says Peter Wright. “Busy people looking for new lunchtime options were also in mind when we developed our meatball marinara lattice, which combines the comforting flavours of hearty Italian cuisine with the convenience of a food-to-go, pastrywrapped favourite. It’s filled with seasoned meatballs and pockets of melted Gruyère cheese in a rich tomato sauce.”
“Select ready meals bring a variety of unique flavour-packed dishes to the market. We keep a very close eye on emerging trends in the food industry which allows us develop creative, restaurant-quality dishes, setting us aside from our competitors,” he comments. “We’ve also revitalised our sandwich range, which now features more than twenty varieties and redesigned packaging to appeal to the ‘grab and go’ lunchtime trade. Grab and go food is a hot trend, with more people opting to pick up a quick bite during their lunch breaks.” The new sandwich range features a selection of fillings to suit all tastes including popular classics such as BLT and ploughman’s, along with more exotic flavours like as barbecue pulled pork wraps and chicken and chorizo paninis. Also aimed at the grab and go market is the company’s new cake line - Piece a’Cake, which is sold at high street beverage and snack outlets across the UK. It includes Victoria sponge, carrot cake and lemon drizzle, and is produced at the new £6 million confectionery plant.
Reinvesting in the Business With its £6 million state-of-the-art confectionery plant and new £1.2 million pie production line on stream, Wrights Food Group is continuing to strengthen the business and is currently investing £2.5 million in an additional cold store that will increase pallet space capacity to 4,000 and enable the company to store 21 million pies at any one time. This project will bring total investment to £11 million in the last 24 months. Wrights has also been investing in people, with new recruits in food development in 2016 to enhance its innovation capabilities. “Our strategy will be driven by a commitment to reinvest in the business so we continue to lead in the key areas of product quality and innovation. As well as capital investment, we’ll also invest in the most important ingredient in our business – our people,” concludes Peter Wright. J
I BAKERY
Rademaker Supplies Innovative Solutions For the Bakery Industry ademaker has managed to transform R bakery traditions of the past into robust, state-of-the-art industrial bakery production lines that meet and exceed customer requirements all over the world. Founded in 1977, Rademaker was one of the first companies to specialize in the development and supply of innovative solu-
tions for the bakery industry. Today, Rademaker is one of the front runners in the bakery industry, with global presence and a service that goes well beyond the delivery and installation of bakery production lines and turn-key solutions alone. Rademaker solutions are geared towards the customer’s specific dough process and products. The development process starts in the Rademaker Technology Centre, where production processes are tested in an optimal testing environment. Customers product demand are translated into a Rademaker production line that will yield maximal results in terms of product quality and return on investment, with a focus on ingredient and waste reduction. Rademaker is an expert in stress-free dough sheeting and handling. The
Rademaker portfolio contains a wide range of dough processing machines: • Bread lines • Laminators • Croissant lines • Flatbread lines • Pizza lines • Make-up lines • Pie and Quiche lines • Depositors • Special production lines. A unique combination of proven and new technology plus attention for detail, all based on customer requirements, guarantee Rademaker to be the perfect partner in the bakery industry. J
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
9
I BAKERY
Indonesia Market Leader Chooses GEA Comas and GEA Imaforni For New Cookie Production Line EA has brought together the longterm expertise of its leading bakery G technology companies – COMAS and IMAFORNI – to build a complete line for the production of wire-cut and soft centre biscuits at the Khong Guan factory in Jakarta, Indonesia. With an average production of 1.5 tons/hr premium cookies, the new line is fully automatic and provides significant benefits in terms of product quality and consistency, productivity and reliability. Khong Guan is a top Indonesian manufacturer specialized in biscuits, wafers and wafer sticks. The company’s success has resulted from its insistence on using the finest ingredients, the latest machinery and robotized packaging systems to meet customers’ requirements, hygiene standards and food safety regulations. Single Supplier
The company has used Imaforni equipment before and has always been impressed with its performance. However, this was the first time Khong Guan had built a complete line using just a single supplier. “The latest addition (2016) is a soft cookie line made up of GEA Comas and GEA Imaforni equip¬ment,” explains Mr Chew Soo Kok, Director of Khong Guan. “It is capable of doing jam-filled cookies, wirecut cookies, deposited biscuits, and bars. With the help of a food technologist to fine-tune the recipes, we were able to start-up the production line in a short period of time. The line now runs wonderfully.” The GEA line includes a high capacity DFV3 extruder capable of simultaneously depositing two different types of dough, as well as a third, fluid filling; the hybrid steel band tunnel baking oven; and all the necessary mixing and conveying equipment. But according to Marco Gandini, GEA’s Head of Bakery Applications, the technology itself is only part of the story. “What makes this line special is the way 10
in which the experience of both the GEA brands has been able to come together to provide the highest performing solution,” he explains. “By choosing equipment that is of the highest quality and perfectly compatible, we have been able to build a line that is reliable and capable of producing large amounts of cookies at the finest quality for Khong Guan.” Marco also points out that in the unlikely event of a problem there can be no doubt as to who is responsible for fixing it. “It’s a 100% GEA line,” he says. “We built it and we will maintain it at optimum performance for our customer throughout its working life.” Sometimes the relationship between customer and supplier may be critical, but not in this case: Mr Soo Kok has no doubt that he has made the right choice with GEA. “The services provided have been first class; and the engineers are well-trained, knowledgeable and friendly which made the installation and commissioning process a smooth one. The aftersales service is equally as good with prompt replies and follow-up to our queries.”
Indonesian Market
With the increase in population in Indonesia and good economic growth, the market size for Khong Guan’s products has grown tremendously. The purchasing power of the Indonesian consumer has grown and the middle-income population is increasing and so Mr Soo Kok believes that the market will continue to grow. “However, we must introduce better quality products and new varieties of biscuits and cookies,” he explains. “To prepare ourselves for the future, we will need to continue to invest in good, and reliable equipment to ensure a high quality production output.” All food manufacturers operate in an intensely competitive environment in which the highest standards of hygiene, production, and product innovation are essential to prosper. By choosing GEA to provide a complete production line, Khong Guan has ensured that its facilities are world class and has secured the combined expertise of some of the industry’s finest process engineers to make sure that its leading position is maintained well into the future. J
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
I HEALTH & NUTRITION
Health Ingredients Europe & Natural Ingredients 2016 – Major Highlights n 29 November-1 December the O world's leading health and nutrition community gathered in Frankfurt - today's hub for modern nutrition - to source from 4,950+ health and natural ingredients offered by 500+ suppliers, to learn from 40+ free tours and presentations and to network with 9,500 fellow industry professionals. The show presented many new features, such as: the launch of Health & Nutrition Week, introducing the Free-From Pavilion, Women’s Networking Breakfast and many more.
Start-Up Innovation Challenge Winner From health water to sustainable plant proteins, the Start-up Innovation Challenge featured some of the most forward-thinking start-ups in health ingredients. 10 start-ups just pitched their latest innovations live at the Industry Insight Theatre. The panel of industry judges selected 3Fbio as the lucky winner! GreenFood 50 has won the Natural Ingredient Award, awarded by Naturex. Women's Networking Breakfast Create a good team, find a mentor to champion you and don't expect to have much of a life if you start your own business! This was just some of the advice given by the inspirational panel at the first Women's Networking Breakfast at Hi Europe & Ni. Successful women and entrepreneurs from across the food industry and beyond, came together for a morning of networking and presentations to discuss the challenge progressing in a male dominated industry.
Latest Consumer Food Trends Regina Malseviciute Haydon, Mintel’s Global Food and Drink Analyst, presented visitors at Hi Europe & Ni with the latest consumer trends in food consumption, such as the importance of being transparent, the changing diets across Europe, the changing negative perception of fat, sugar as public enemy #1, and beauty and wellness getting closer to food. 3D Printing and the Food Industry It is forecast that global 3D printing products and services will reach Eur10 billion by 2021, and while still in its infancy 3D is already being applied to the production of sugar, pasta and pastries. Dr Nesli Sozer, Principle Scientist at VTT spoke at The Hi Europe Modular Conference about the impact that 3D printing will make on the food industry. Flexitarians Reimagine Food More and more people are choosing to eat less meat. So what is a flexitarian? Is it a vegetarian who occasionally eats meat, or is it a mindful meat eater who occasionally seeks out vegetarian meals? The answer is they’re both flexitarians. Check out few of the new products unveiled at Hi Europe & Ni for those embracing responsible consumption! Collagen Jello, a high protein dessert that contains 5% Peptan collagen peptides, which are recognized to provide healthy aging benefits and to promote skin beauty. Solanic 100, Avebe new potato protein isolate Solanic 100 is highly suitable and protein enrichment of baked goods, snacks or breakfast cereals. It combines a complete amino acid profile protein shakes that are consumed for nutritional benefits; however, taste is key for repeat consumption. DMV launched 7 new non GMO creamers to improve sensory characteristics like appearance, taste and texture of protein shakes.
have bigger,” said Dr Maeve Henchion of Teagasc Food Research Center as she presented options at Hi Europe 2016 for how the world might address the populations growing protein needs. With the world population forecast to grow to 9.6 billion by 2050, it is clear there will be significant demand on the food industry to keep up with protein demand. Yet how much additional protein this crisis will create is not yet clear. “More people need protein, people want more protein,” Dr Maeve Henchion explained. “But there’s not a clear linear relationship between population growth and demand for protein.” If average protein consumption remains at 80g/capital/day then to increase in population from 7.3 billion to 9.6 billion will require 67,160,000 tonnes more protein per annum (+33%). However, consumption of protein per capita in the developing world is growing rapidly – driven by increased incomes and higher intakes of animal-based protein. Missed the show out this year? Join the LinkedIn Group Fi Global – Food ingredients Global - to take part in the discussion 365 days a year. J
How to Deal With the Global Protein Crisis “We can’t just make the cake that we
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
11
I POULTRY
European Poultry Remains Core to Cargill Although Cargill has been making significant changes to its portfolio through acquisitions and disposals, the global agrifood group’s European poultry business remains one of its core activities. argill Meats Europe is one of the continent’s largest poultry businesses and is a leading supplier and innovator of primary and further processed chicken products for the retail, food service and food manufacturing sectors. Operating processing facilities in the UK, France and Russia, as well as a sales division based in the Netherlands, the business employs about 3,000 people across Europe. Through a network of six primary and further processing facilities, Cargill produces a range of products including tray packed fresh chicken and chicken portions, BBQ chicken products, rotisserie and marinated chicken and coated chicken products. In addition to its processing capabilities in Europe, Cargill is also one of the largest importers of fresh frozen chicken products from Thailand and Brazil for the European food manufacturing and retail market.
C
Mary Thompson, the head of Cargill’s European poultry business.
Cargill Meats Europe recently implemented a £35 million capital investment plan at its fresh chicken business in the UK. It is part of strategy to allow Cargill to partner with key customers in supplying food that is safe, nutritious and affordable. Following the £35 million investment programme, designed to focus Cargill’s UK poultry business on the retail sector and key partners in food service, the company’s flagship site at Hereford in England
The £35 million investment programme has transformed Cargill’s flagship site at Hereford in England into one of the most efficient and competitive poultry processing plants in Europe.
has been transformed into one of the most efficient and competitive poultry processing plants in Europe. Hereford has been the base for Cargill’s poultry business in Europe for more than 50 years. In addition to the Hereford site, Cargill also has production facilities in Wolverhampton and Newent in the UK. £35 Million Investment The £35 million investment will enable Cargill to expand its capacity to process and supply fresh UK reared chicken. The phased expansion programme has entailed improving efficiencies, upgrading technologies and creating a state-of-the-art processing facility. For example, the bird reception area of the Hereford plant has been completely upgraded and controlled atmosphere stunning has been introduced. Chilled capacity has been expanded from 1.35 million birds to 2 million birds and the latest robotic and cutting technology has been installed. The new evisceration area features stateof-the-art technology capable of running at higher speeds with greater efficiency, which also facilitates the capability to harvest additional products from the birds which had previously not been used to their full potential. UV light finished pack
decontamination technology has also been installed in the packing area. Adoption of the latest technology, including robotic packing, cutting and evisceration systems, are increasing efficiency while also enhancing productivity, quality and food safety at the plant. Indeed, Cargill was the first processor in the UK to introduce this type of machinery, in partnership with Marel Stork. Cargill has also invested in energy saving and environment-friendly technologies, such as water meters, energy meters and collection and monitoring software to identify ‘hotspots’ for consumption of these resources. Continual improvements in the high use areas combined with behavioural change programmes have resulted in significant saving - a 20% reduction in water use versus volume produced (358 million litres per year saved) and a 20% reduction in green-
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
13
As part of its farm-to-fork commitment to reduce Campylobacter levels in chicken, Cargill has introduced SonoSteam technology at its processing plant in Hereford.
house gas intensity (more than 10,000 metric tonnes of CO2 per year). Farm to Fork Approach Cargill Meats Europe is committed to sustainability across its vertically integrated poultry business encompassing farms, hatcheries and processing sites. The sustainability strategy is centred on building responsible and sustainable supply chains from farm to fork. Cargill seeks to do this by minimising the environmental and social impacts of its operations and supply chains, respecting the animals in its care and improving welfare standards, as well as enriching the communities where it operates. Cargill Meats Europe has led the industry in this respect. It was one of the first chicken producers to carry out a carbon footprint as well as a water footprint assessment of its European supply chain
its on-farm biosecurity procedures which are continually audited to help protect flocks from infection. “We have made lots of investment in the farms where our chickens are grown, and biosecurity is absolutely of the utmost importance,” points out Mary Thompson, the head of Cargill’s European poultry business. “So we started then on the farm really improving our practices and procedures. Now we are making more investment in our factories as well.” As part of its farm-to-fork commitment to reduce Campylobacter levels in chicken, Cargill has introduced SonoSteam technology at its processing plant in Hereford. Developed by the Danish company Force Technology, SonoSteam uses a combination of steam and ultrasound to kill microorganisms such as Campylobacter on the skin and internal cavities of chicken. “It does sound easy – hot/cold kills Campylobacter. The trick is applying it in a way that still leaves the product that we all know and love and doesn’t change the
from hatchery to finished product to understand the environmental implications of its supply chain. Cargill Meats Europe was also the first chicken supplier to install windows into all of its chicken houses in the UK - providing natural light and enriched environments (addition of perches, pecking objects and bales) in chicken houses stimulates bird activity and natural behaviour. Food Safety Chris Hall, business director, Fresh Chicken at Cargill Meats Europe, says “Cargill takes its responsibility for food safety very seriously, and we know that reducing Campylobacter levels requires interventions across the whole supply chain. We focused initially on our farms and primary processing.” All farmers now receive comprehensive information on Campylobacter and Cargill has optimised
David MacLennan, chairman and chief executive of Cargill.
nature of it. So there has been a huge amount of work and research and development,” remarks Chris Hall, “to perfect the technology to get it to the stage where it still leaves the product that we want but actually does the job of removing and killing Campylobacter.” SonoSteam technology has also been adopted by another major UK poultry processor - Faccenda Foods (see ‘SonoSteam Technology Tackling Campylobacter in Poultry’ in this issue).
Cargill Meats Europe is committed to sustainability across its vertically integrated poultry business encompassing farms, hatcheries and processing sites.
Other Measures Other recent investments to enhanced Cargill’s commitment to reducing Campylobacter levels include the installation of a new £11 million state-of-theart chiller and ultraviolet light (UV) finished pack decontamination equipment. The new chicken air-chilling process allows Cargill to maximise its control of
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
15
These efforts position us well for a rapidly arriving future.”
Cargill’s poultry operations will remain central to the group’s future development.
product temperatures, while the new ultraviolet light finished pack decontamination technology serves as an additional precaution to eliminate any residual Campylobacter that might potentially be present on outer packaging surfaces. Of course, techniques and systems successfully developed by Cargill’s Hereford operation will be rolled out across the group’s global poultry business. In addition to Europe, Cargill has integrated poultry businesses in China, Canada and Thailand, as well as a dedicated business in Central America. Cargill Group Performance Cargill Meats Europe is part of the USbased parent group’s Animal Nutrition & Protein business. Cargill’s other business segments are Food Ingredients & Applications, Origination & Processing, and Industrial & Financial Services. In its last financial year, Cargill reported adjusted operating earnings of $1.64 billion, down 15% on the previous year. Revenues decreased by 11% to $107.2 billion, reflecting lower commodity prices, a strong US dollar and divestitures. Adjusted operating earnings in Animal Nutrition & Protein decreased slightly due to difficult market conditions globally in beef, which was not fully offset by strong performances in animal nutrition, poultry and value-added protein, which benefited from low input costs, targeted marketing and strong demand. Cargill’s poultry businesses in Europe as well as in Central America and Thailand delivered strong earnings growth, although the operation in China continued to struggle. “We are in growth mode,” says the head of Cargill’s European poultry business. “We are investing in our supply of chicken to service growth with our customers. We are working to increase the quality and quantity of fresh chicken that is available here to retailers.” 16
Refocusing Cargill has significantly changed its portfolio recently, by acquiring businesses and investing capital to make the group more competitive in markets where it intends to lead. Key acquisitions include the purchase EWOS, the global leader in salmon nutrition, as Cargill regards aquaculture as essential to sustainably meeting rising demand for protein in the years ahead. Cargill has also strengthened its North American brands and capabilities following the acquisition of a chocolate business. In the US, it recently acquired a case-ready ground beef plant, opening a new beef distribution centre, and adding capacity in cooked meats and specialty protein products. In Asia, it is partnering with Jollibee Foods, the region’s largest food service company, to build a supply chain for specialty poultry products in the Philippines. Cargill has also completed a new oilseed crush, refining and port complex in northeastern China. Cargill has also been disposing of businesses which it does not regard as offering consistent growth, including pork processing and custom sauces in the US, as well as its stake in North Star BlueScope Steel. Totalling nearly $2.4 billion, these divestitures are the most significant in many years at the US-based global conglomerate. Dynamic Year “2016 has been a dynamic year inside Cargill and beyond. Long-term shifts in population, urbanization and climate are reshaping global food and agriculture, even as disruptive forces are at work in the market today. We are transforming Cargill to be more agile, with capabilities essential to our customers’ success,” comments David MacLennan, chairman and chief executive of Cargill. “We are leading the advance toward a more sustainable food system that nourishes people and protects the planet. We have not yet achieved the consistent earnings growth across the company that we want, but where we have made changes we have realized results.
Poultry Remains Core Cargill’s poultry operations will remain central to the group’s future development. According to the UN Food and Agriculture Organisation, chicken will overtake pork as the world’s most-consumed meat by 2020. Indeed, other global meat companies, such as JBS of Brazil, which now owns Northern Ireland-based Moy Park, are increasing their production of chicken. “The consumer is more interested in learning where their food comes from, how the food was manufactured and what ingredients were used,” says Pilar Cruz, corporate vice president and lead of Cargill’s Strategy and Business Development team. “The desire to have healthier products is becoming a top priority for consumers today. Sustainability and climate change are definitely a key priority for us. So it is a great opportunity for us at Cargill to think about how we partner with our customers.” Pilar Cruz, who had previously headed Cargill’s European poultry business before assuming her current role, elaborates: “We have a great example and has to do with a partnership we have with one of our main global customers in Europe. The customer came to Cargill asking for a fully segregated supply chain on poultry. So the customers wanted us to think about how we can ensure that the product from farm to fork is fully traceable.” She continues: “So our team spent a lot of time thinking about how we can do that. It is highly complex, it is expensive but ultimately that is what the customer is asking for. So we partnered with our farmers and we ensure that from the beginning of the supply chain all the way through to distribution, we could trace the products. I think that was a huge and a great example of a customer solution that the customer really recognises our team for but it also gave us the opportunity to say – ‘Cargill can do that’.” J
Pilar Cruz, corporate vice president and lead of Cargill’s Strategy and Business Development team.
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
I FOOD SAFETY
SonoSteam Technology Tackling Campylobacter in Poultry onoSteam is an innovative technology S that is proving highly successful at tackling the pressing problem of Campylobacter in fresh poultry. Developed by Danish company Force Technology, SonoSteam uses a combination of steam and ultrasound to kill microorganisms such as Campylobacter on the skin and internal cavities of chicken. Force Technology has installed SonoSteam at Faccenda Foods and Cargill, two of the UK’s leading poultry processors. The SonoSteam disinfection system also has wider use within the food industry including meat, fruits, vegetables and dairy products as well as non-food products such as conveyors, food boxes, crates and cutting knives. Advantages of SonoSteam Technology SonoSteam technology offers users a number of efficiency, food safety and environmental benefits along with other advantages. “This technology has proved itself capable of working day in and day out in a production environment and is not only cost effective but has been proven effective at reducing Campylobacter in an environmentally friendly way without chemicals, only water and a modest amount of energy,” explains Niels Krebs, Vice President of Force Technology. He continues: “Delivering the best possible food safety to the customers is an important part of consumer relations. Customers can’t verify the microbiology of a product, so they have to trust the manu-
SonoSteam technology is being installed at Cargill’s poultry processing plant at Hereford.
facturer. Complaints and products being recalled have severe consequences for the trust between consumer and manufacturer.” Environmental Impact Steam and ultrasound have minimum negative impact on the environment and con-
sequently provide a cheaper, green alternative to chemicals. By using force instead of chemicals, SonoSteam will not cause bacteria to become resistant, leading to the formation of ‘superbugs’. Of course, an increased level of food safety improves public health and well being. Niels Krebs points out: “The potentially
Fact Box Five facts about SonoSteam: 1 SonoSteam is a minimal process that applies the combined effect of steam and ultrasound for effective and fast disinfection within seconds. 2 The technology is a cost effective and chemical free. 3 Four SonoSteam units are currently installed at two different poultry plants in the UK, processing nearly 4 million birds per week. 4 Ongoing trials have shown more than 80% Campylobacter reduction on birds tested positive for the highest infection levels of higher than 1,000CFU. 5 SonoSteam has many applications and is besides poultry used for disinfection of conveyer belts, food trays and even hospital mattresses.
An overview of the SonoSteam system for poultry.
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
17
increased shelf life caused by SonoSteam reduces food waste, an important problem concerning the environment, hunger, and increasing population. The use of force instead of chemicals makes post-treatment washing unnecessary, which ultimately saves water. Overall the whole process has a minimal impact on our environment.” Showing Results The installation of SonoSteam at poultry processing plants in the UK is already showing the effectiveness of the technology at tackling Campylobacter levels in fresh chicken, according to figures from the Food Standards Agency (FSA). During the October-December 2015 period, which was covered by the most recently published FSA Retail Survey for fresh whole chickens, all poultry sold through Morrisons was SonoSteam processed by Cargill in Hereford. Half of all poultry in ASDA was processed by SonoSteam, as Faccenda Foods only supplies 50% of whole birds sold in the grocery group. The FDA results showed that ASDA dropped from 24% to 10% on
birds having a Campylobacter level higher than 1000 cfu/g, while Morrisons decreased from 25% to 5% to achieve the best position in the whole survey. So what scale of businesses within the poultry industry can benefit from installing SonoSteam technology? The current SonoSteam equipment has been designed for production lines higher than 8,500 birds per hour. “However, many producers with smaller and slower production capacities have been making enquiries for a system running at 6,000 birds/hour,” he says. “Our coming equipment to process cut parts will be more suitable for any scale of business.” Other Applications SonoSteam technology has applications beyond the poultry industry and is proving to be a valuable tool for other types of food processors. SonoSteam can be applied on non-food surfaces. Niels Krebs comments: “We are currently conducting the final testing of food boxes and conveyor belts, and it’s showing great potential. Boxes and conveyor belts
constitute a potential risk in cross contamination in clean environments. Microorganisms and their biofilm can build up very quickly on the surfaces, if routine cleaning is inadequate or neglected. Disinfection with certain chemicals can cause selection of dangerous ‘superbugs’ that are able to outlive standard cleaning procedures. At worst case, the bacteria can end up on food products, where it can cause illnesses and even deaths. Listeria is a well-known example of this.” Non-food surfaces can endure more intense and consequently more efficient treatment, which takes only two seconds for each box to reach a 100% disinfection rate on all surfaces and at lower cost than chemicals. SonoSteam is also being applied within the health sector. For example, Force Technology is currently working on cleaning boxes that have been used for transporting sterile surgery equipment. Furthermore, the company’s mattress disinfection system is now being used in Danish hospitals. J
I HEAT SEALING
Sustainability Supported by Proseal’s E-Seal® Technology eat sealing manufacturer Proseal has successfully supplied H Cargill with equipment for an extended period of 15 years, producing over 150 tool sets and most recently multiple GT2 and GT2ex Twin machines to keep up with their continuing growth of production. Cargill’s sustainability efforts are supported by Proseal’s constant drive to reduce power consumption. Proseal has developed a revolutionary high performance, high precision, high force electrical delivery system, that dramatically reduces air consumption normally associated with high speed tray sealing machinery up to 90%, delivering important energy and cost savings. A Proseal machine fitted with the E-Seal® high force electric heat seal system benefits from an increased seal force of 600%, but consumes only 8% of the air that a machine fitted with an equivalent standard pneumatic cylinder would use. Other benefits from this system include; the potential to increase machine productivity through a reduced seal time, improved MAP processes through ensuring accurate gas flush positioning and reducing gas flush cycle times. The innovative E-seal® sealing system is available across Proseal’s range of automatic and semi-automatic tray sealers. J 18
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
Hygienic Drainage Design Within the Meat Processing Industry n the meat processing industry it is vital to maintain high hygiene Idaily standards to ensure the fresh meat goods are safe for consumers. On a basis regular and thorough cleaning regimes are in place to avoid the risk of contamination. There are a few factors to consider when designing a factory, which will help to contribute to a hygienic environment. A drainage system and the surrounding flooring needs to work together to provide an efficient rate of waste water removal. The flooring must provide appropriate falls, which are directed towards either a drain channel or a drain gully within a processing area, so the waste water does not start to pool. During processing, the meat industry produces solid fats and skeleton waste, which are required to be removed from the area during wash down. It is important that any solid debris is filtered out of the waste water via a drain trash basket, which sits within a drain channel outlet or drain gully. An anti-backflow valve can also be installed onto a drainage system to close off the drain outlet pipe in the event of a blockage. The valve therefore prevents any waste water re-entering the meat processing area, removing the risk of contaminating fresh goods. To provide safety under foot for people working in the processing area amongst meats, oils and greases, an anti-slip stainless steel drain cover, in a ladder design with a scalloped edge, can work with the tread of a person’s footwear to prevent unnecessary slips and falls. Aspen stainless steel products are designed to help achieve a hygienic environment, with removable components to enable all drainage parts to be easily cleaned. Browse the product range online, which has full technical data available to download, and discuss your bespoke requirements with the Aspen Technical Team today; +44 (0)115 986 6321, aspen@canalengineering.co.uk, www.aspen.eu.com. J
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
19
I DAIRY
Revamped Arla Foods Pursues New Growth Strategy Now focused on organic growth rather than expansion by M&A activity, Arla Foods has restructured its business in line with its new ‘Good Growth 2020’ development strategy, which has identified eight global dairy categories and six market regions for delivering the best returns for the dairy co-operative’s 12,700 farmer owners from its expanding milk pool. he eight dairy categories in which Arla Foods is now concentrating its efforts are: butter & spreads, spreadable cheese, speciality cheese, milk-based beverages, yogurt, milk & powder, mozzarella, and ingredients. Growth in these priority areas will be pursued through market-focused innovation and primarily by leveraging its three global brands - Arla (natural goodness), Lurpak (good food deserves Lurpak) and Castello (creatively crafted). “The global dairy industry has developed by a speed seldom seen before, with millions of consumers changing their daily habits and preferences. We have analysed consumer needs and trends across dairy categories worldwide and have matched this with our own biggest strengths. This has
T
Africa and Russia. Going forward, Arla Foods will focus on six market regions Europe, the Middle East, China, Russia, Nigeria and the USA. “We have identified the markets in which Arla has the biggest potential to grow a long-term profitable business for our
farmer owners. We are stepping up our efforts in the United States and Nigeria, while continuing to build on our positions in Europe, the Middle East and China. We also remain hopeful that Russia will reopen for business, at which point it will still be a very attractive market for Arla,” says
Peder Tuborgh, chief executive of Arla Foods.
led us to pursue eight specific categories where we feel Arla can grow a leading position globally or regionally. Our strategic innovation and best resources will be poured into these categories,” explains Peder Tuborgh, chief executive of Arla Foods. Six Market Regions In terms of geographical expansion, Arla Foods has already established strong market positions in Northern Europe and the Middle East while also growing in emerging regions such as China, sub-Saharan
The world’s largest fresh milk facility located at Aylesbury in the UK.
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
21
The ‘Good Growth 2020’ development strategy aims to deliver the best returns for Arla Foods’ 12,700 farmer owners from the group’s expanding milk pool.
Peder Tuborgh. He continues: “Over the coming five years we expect about half of our growth to come from outside the EU as we grow market shares while the other half will come from within the EU as we grow in key categories and add value through innovation.” One Unified Business In addition to striving to excel in its eight chosen dairy categories and focusing on six market regions, a third element of the new strategy is to operate as one efficient business. Over the past five years, the
Peter Giortz-Carlsen, head of Arla Foods Europe.
Scandinavian dairy group has expanded significantly in Europe and has completed six mergers. While Arla Foods has already started to reap the benefits of its enlarged scale, extended geographical reach and the synergies arising from integrating the new businesses, Good Growth 2020 will take this development to the next level. “We are a different company to the one we once were. The last few years have prepared Arla to take the role of a global food company, and the benefits will be reaped over the coming years,” points out Peder Tuborgh. “Going forward, our entire supply chain will be more efficient as we will establish one European milk pool to ensure a more holistic use of our milk across the Arla group. You will see our branding and marketing becoming more global, improving the spend effectiveness, and you will see Arla driving more radical innovation across borders.” Restructuring To accommodate the ambitions outlined in 22
its Good Growth 2020 strategy, Arla Foods is restructuring its organisation, including the formation of a new executive management team as part of a more efficient and globally focused business. The newly introduced organisational structure is designed to drive efficiencies through faster decision-making and execution in more globalised supporting functions such as supply chain, finance and HR, while improving collaboration across the business and reducing duplication across countries. However, this involves the shedding of 500 jobs. The new executive management team, which is built around specific functional areas such as marketing and innovation, will oversee the transition from expansion through mergers to organic growth. The new management team has been divided into two commercial areas – Europe and International – leaving individual country management teams to focus on local issues Doubling Organic Revenue Growth The new structure and change in strategy is intended to allow Arla Foods to increase its organic revenue growth rate from the 2% that has been delivered over recent years to at least 4% by 2020. “This is a fundamental change for the company. For many years, Arla has grown mainly through cooperative mergers where the new milk already had a position in the market. Our continued success depends on our organisation’s ability to increase the value and develop profitable positions for the growing milk volumes coming in now from our
existing farmer-owners. We need to act local and think global and the new organisation reflects this,” Peder Tuborgh remarks. Arla Foods is continuing to pursue its long-term efficiency programmes and attained its annual savings goal of Eur330 million in 2015 compared to 2012 cost-levels. It has now set a new target of delivering additional annual savings of Eur400 million by 2020, with the first Eur100 million to be achieved in 2016. In pursuing its new growth objectives, Arla Foods will maintain its commitment to sustainability (see Panel). Expansion in Europe As half of projected growth will be generated within the EU during the next five years, with the other half from outside, Arla Foods has consequently divided its business into two commercial areas – Europe and International. In Europe, Arla Foods’ leading markets are the UK, Sweden, Denmark and Germany, where the dairy group has invested heavily in state-of-the-art processing facilities to handle the extra milk volumes arising from the abolition of the EU milk quotas, and to maintain its competitiveness in global dairy markets. Peter Giortz-Carlsen, who was formerly managing director of Arla Foods UK, is the new head of Arla Foods Europe, which generates 80% of its sales within the EU and 25% in the UK. Well aware of the extreme market volatility that is putting pressure on the group’s dairy farmer owners, Peter Giortz-Carlsen says that Arla Foods Europe’s plans for improving milk prices is centred on innovation, brand building and cutting costs. In its last financial year, Arla Foods succeeded in diverting 500 million litres of milk from commodity trading into higher margin retail and food service channels from its total milk pool of 14 billion litres across seven countries.
Milk-based beverages is one of eight dairy categories in which Arla Foods is now concentrating its efforts.
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
Indeed, a key element of the ‘Good Growth 2020’ development strategy is to aggressively develop the group’s branded products, particularly under the Arla, Lurpack and Castello labels. “Growing brand share and reducing trading share — that is the best safeguard we have against volatility,” remarks Peter Giortz-Carlsen. UK Business With a turnover of Eur2.9 billion and producing leading dairy brands Anchor, Cravendale, and Lactofree, Arla Foods UK is Britain’s largest dairy company. In addition to being a leading supplier of fresh milk, and number one in butter, spreads and cream, Arla Foods is the UK’s largest cheese manufacturer. It has also built the world’s largest fresh milk facility located at Aylesbury and has plans for it to be the first zero carbon site of its kind. The UK business employs about 3,500 people located at its dairies, distribution centres and head office.
Tomas Pietrangeli, the new managing director of Arla Foods UK.
“As Arla’s largest market, the UK is a key part of our organisation with ambitious plans for the coming years,” says Tomas Pietrangeli, who has replaced Peter GiortzCarlsen as managing director of Arla Foods UK. “I’ll be focusing on championing our leadership role in the UK dairy industry as well as delivering the very best for our farmer owners, even during these challenging times.” Arla Foods UK expects to increase its revenue by nearly a third - from £2.0 billion (excluding commodity trading) in 2015 to £2.6 billion by 2020. The ambitious growth strategy includes much greater investment in the Arla and Lurpak brands with the aim of establishing them as top ten FMCG brands by 20202. Arla Foods UK also plans to grow Castello to become the best known premium cheddar and speciality cheese brand. This will entail developing the Arla brand, which was launched last year in the UK, into a £400 million brand at RSV and Castello into a £40 million brand by 2020. A wide range of innovative and healthier dairy products, including Arla Best of Both skimmed milk, Arla skyr yogurt drinks and Arla Protein Snack Pots, Arla Protein Cottage Cheese, Lactofree Natural Yogurt and Arla Cravendale 250ml bottle in the
on-the-go aisle, have already been launched. Arla Foods UK intends to build on these early successes with an up-weighted programme of activity to further raise awareness of its farmer-owned status to drive differentiation and become synonymous with dairy health in both its branded and own label portfolios. Further Commitments Arla Foods UK has made a number of further commitments as part of its 2020 strategy. These include generating at least 10% of its net revenue from new product development across its branded portfolio; investing a minimum of 25% of its marketing spend in digital; while increasing the availability of dairy products for breakfast, snacking on the go, convenience and hospitality with an overall ambition to increase dairy consumption. Arla Foods UK will also extend its pipeline of healthier dairy products with at least 30 new dairy concepts and 50 new range extensions; and invest over £100 million in promoting a series of new healthier dairy products and campaigns to encourage more nutritious eating habits and challenge some of the current myths about dairy. The UK dairy leader also plans to enhance its food service offering, to become a supplier of choice outside the retail environment. Tomas Pietrangeli comments: “We want Arla to be the name that people know, love and trust for dairy. We have developed a strategy that delivers clear consumer benefits by re-engaging them in the most innov-
Arla Cravendale 250ml bottle.
ative, unexpected, responsible and efficient way. Our overall objective will be to add value to our milk and in turn allow us to
Sustainability at Arla Foods Arla Foods has adopted a ‘lifecycle management’ perspective - from cow to consumer in its environmental strategy 2020 focusing on sustainable farming, climate, water and energy, and zero waste. The group’s approach to sustainable dairy farming has set a target of reducing the climate footprint per kg of milk from Arla farms by 30% compared to 1990 while increasing the share of renewable energy being used. To limit the impact of its operations on the climate, Arla Foods is reducing greenhouse gas emissions along its entire supply Arla Foods has adopted a ‘lifecycle management’ chain – from cow to consumer. The target perspective - from cow to consumer - in its is to reduce greenhouse gas emissions in environmental strategy 2020. the areas of production, transport and packaging by 25% by 2020 - using 2005 as a baseline. Arla Foods is switching from the use of fossil fuels to renewable energy sources as it also reduces water consumption. For instance, by 2020, Arla Foods aims to have 50% of the energy used within its operations supplied from renewable resources, such as biomass and biogas. The dairy group will reduce energy and water consumption across its operations and transportation by adopting environmentally friendly technologies, adopting LEAN management implementation and increasing heat recovery and re-use of water. Arla Foods is implementing a zero waste strategy centred on achieving 100% recyclable packaging by 2020, eliminating waste to landfill from production, and helping consumers to cut food waste.
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
23
return the best possible price to our farmer owners.” Brexit Arla Foods had unveiled its ‘Good Growth 2020’ strategy prior to the UK referendum on membership of the European Union. “We are disappointed by the outcome of the referendum. However, we respect the decision by those in the UK and, ultimately, it is their choice to leave,” comments Peter Giortz-Carlsen. “We have continually supported a well-functioning and strong EU, which focuses on ensuring the continued free movement of goods, services, people and finances.” Peter Giortz-Carlsen adds:“The consequences of the Brexit vote will depend on the subsequent negotiations between the EU and the UK that are expected to take up to two years to complete. For Arla, it is important that a trade agreement is reached without import and export quotas or tariffs that will limit the free movement of
24
goods.” The head of Arla Foods’ Europe business elaborates: “Most of our business in the UK is based on local production within the country, however, to utilise Arla’s European pool of 13 billion kilos of milk in an optimal way, it remains critical that our products can move freely across the markets in which we operate.” “Despite the potential challenges of
Brexit, the UK remains a hugely important market for Arla and the outcome has not changed this,” says Tomas Pietrangeli. “While we are uncertain of the implications, I hope to see our products continue to move freely to and from the UK across the markets in which we operate. We are in a strong position to not only weather any storms that may arise, but also take advantage of any opportunities.” J
Arla Lactofree Natural Yogurt.
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
ENERGY
ENVIRONMENT
I CASE STUDY
Edina CHP Achieves Zero Carbon Strategy at UK’s Largest Dairy rla Foods Ltd production facility is the most environmentally friendly dairy in A the world. Situated outside Aylesbury, Buckinghamshire, this ambitious £150 million project succeeded in creating their zero carbon vision with the application of Combined Heat and Power (CHP) technology. Spread over a floor space of 6.5 hectares, this inspirational production facility produces 1billion litres of milk per annum and utilises the very best in energy saving and water recycling techniques.
Leading supplier, installer and maintenance provider for gas to power solutions, Edina, supplied two MWM TCG 2020 V20 engines capable of generating a total power output of 4MWe and 3.8MWt. The MWM engines are fuelled by a combination of natural gas mixed with biogas produced from the anaerobic digestion of some of the process waste product. The natural gas/biogas integration system was designed and supplied by Edina and allows the generators to operate on natural gas only or natural gas with the inclusion of a proportion of biogas. In addition, the CHP is designed to work in Island Mode Operation, in the event of a power outage at site, the CHP is configured to hold all essential loads until site power is re-established. Edina worked closely with the client to finalise a solution via their load shedding electrical infrastructure. Commissioned in September 2013, the dairy is the most technological advanced and efficient of its kind and achieves zero waste to landfill. Arla’s ‘mega dairy’ sets a
new benchmark in environmental standards on a global scale. Edina continues to work with the food processing industry across the UK and Ireland, supporting clients to reduce their energy costs, reduce carbon emissions and deliver improved business competitiveness. The inclusion of CHP to any factory will improve sustainability criteria, save on current operating costs and protect from the known future electrical power cost rises from the electricity grid. For more information, visit www.edina.eu. J
I DAIRY
Unique Lactose Processing System Increases Yield by up to 25% actose is one of the most versatile byL products produced from the cheese making process. A derivative of whey, it offers producers a valuable income stream as the ingredient is used in many consumer products including infant formula, confectionary, sauces and beer. The innovative
Anhydro Innovation Centre.
SPX FLOW lactose processing line offers many benefits including high yield with most of the lactose from the whey being retained. The SPX FLOW high yield lactose plant has a unique two-pass design and is based on leading filtration/mechanical separation and fluid bed drying technology and expertise in crystallisation. Precisely designed and engineered to meet specific customer needs, it has been shown to increase productivity and maximize profits. The lactose powder produced is of premium quality with a fine white colour; free flowing properties, and excellent heat stability. For more information and to download the new High Yield Lactose brochure, please visit www.spxflow.com/en/anhydro/. J
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
25
I CASE STUDY
A Robust New Standardizer From Tetra Pak Makes Life Easier For Dairy Producing standard white milk is a low-margin business. It is vital to produce milk with optimal fat content to get the most out of every drop of milk. That is why the standardization of milk is such an indispensable process. t Arla Foods’ dairy in Palmers Green, London a new Tetra Pak® A Standardization unit makes that process more reliable, stable and accurate than ever before.
In the highly competitive dairy market an efficient standardization of fat in the milk is a matter of winning or losing.
Josette Bogerman, Regional Project Manager at Arla Foods, says the cooperative had to replace three obsolete standardizers. “Then we heard about the new equipment from Tetra Pak,” she says. “It was perfect for us to try a new unit at that point in time.”
Arla Foods – A European Dairy Co-operative Arla Foods is owned by some 12,700 dairy farmers in Europe. It started in Sweden in the 1800s and is one of the leading dairy companies in Europe and worldwide. The business in the United Kingdom has a yearly combined milk pool of 3.2 billion litres and a turnover in excess of two billion pounds. With 3,200 farmers in the UK, it is the country’s number one dairy company. In the UK Arla has some of the leading dairy brands, including Cravendale, Anchor, Lurpak and Castello. It has some 4,000 employees and 16 sites in the UK.
26
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
tion. It is a highly reliable system based on extensively tested and refined automation software and high-performance, highquality components such as flow transmitters and regulation valves. “As for reliability – we haven’t seen it down – it’s always running,” Bogerman says. “We had a single issue and Tetra Pak dealt with it within the same day. We suspected we would have problems, since it was a field test, but it’s been a valuable experience for us.” When Arla Foods runs a milk recipe with the milk fat set point of 3.0 % the standardization unit delivers a fat content of 3.0 % +/- 0.015 %. Says Bogerman: “We can see the difference in higher accuracy, a lot of cream is coming back into our tank. For every single batch we do, accuracy is improving.”
Main Benefits With the New Solution • Highly reliable system – based on extensively tested and refined automation software • Maximum line utilization – with virtually non-stop production, thanks to fast, sophisticated algorithms • Automated measurement and control of process variations — keeps you on target to secure uniform product quality • High-performance, high-quality components make the system setup very robust • Performance guarantees on precision: +/-0.015% 24/7.
Stability
Arla Foods’ requirements were to minimize the downtime to three days. “That is exceptional for us,” she says. “I love working with Tetra Pak. They gave us the right guarantees. We would never have had the commitment from anyone else to do it in three days.”
The equipment’s stability was one of Arla Foods’ main criteria when making the purchasing decision. The machine runs at least eight hours a day, seven days a week, all year round. “Our operators favour the new machine when it comes to short runs, since they are difficult to standardize,” she says. “It is so much more accurate. There was no choice. We had to have it. Life is much better for the operators.” Before, Arla Foods had problems with in-tank standardization. Based on the experience of the operator, a sample was taken from the tank and the fat content was adjusted accordingly. “That has very much changed. Now we always know what’s in the tank. Our operators trust that what they read on the screen is going in the tank. Greater accuracy has started to save us money,” explains Bogerman.
Automatic In-line Standardization
By October 2015 Tetra Pak had installed the brand new version of the Tetra Pak Standardization unit at the Palmers Green site and the field test of the machine could begin. The standardization unit is designed for automatic in-line standardization of the fat content in milk and cream directly after milk separa-
“Greater accuracy has started to save us money” – Josette Bogerman, Regional Project Manager at Arlaa Foods.
important as the number of products has increased. “Different customers demand that their milk to be processed separately,” says Bogerman. “We deal with enormous amounts of product changes and segregation. That gives us much less time for standardization in the tanks. We can’t wait to buy more and replace the other two standardizers,” she says. J
Winning or Losing
In the highly competitive dairy market an efficient standardization of fat in the milk is a matter of winning or losing. “We have such a low margin on fresh milk,” Bogerman says. “For us, the big money is in cream. We can’t afford to produce milk with too much fat in it due to operator errors. To give cream away is an absolute no-no.” The Palmers Green dairy processes about 1.2 million litres a day. A robust standardizer has become more and more
The Palmers Green dairy processes about 1.2 million litres a day. A robust standardizer has become more and more important as the number of products has increased.
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
27
I POTATOES
Branston Prepared For Changing Market Demands Branston, one of the largest buyers, packers and distributors of potatoes in the UK, has officially opened its new £5 million prepared foods factory extension at its site in Lincoln in partnership with Tesco. ranston operates from three bases across Britain to retain close proximity to its customers and growers. Its original and still largest site is at Lincoln, which was established in 1968. In 1997, Branston purchased its South West site in Somerset, which has become a centre of excellence for new and salad potato production. In 2004, the company moved into Scotland to establish a base at Abernethy near Perth. Indeed, Branston has developed into one of the largest farmercontrolled produce businesses in the UK. Branston diversified into prepared foods in 2005 before opening a purpose built £4 million high care factory at its Lincoln site in 2009 to produce convenient potato and vegetable products.
B
New Facility The new 1,700 sq ft prepared foods factory expansion reinforces Branston’s position as one of the UK’s most substantial processors of potatoes. Producing around 3,500 tonnes of potatoes each week for sale in Tesco stores across the UK, the prepared foods factory expansion includes the introduction of two new batch peeling lines, making it one of the largest peeling and processing facilities in the UK In an innovative move, Branston’s new site will allow potatoes which are not suitable for the fresh market to be peeled before going to convenience food producers as part of their mash potato ranges or as a topping for pies or casseroles. The investment has created more than 20 jobs at the site. It also supports Tesco’s commitment to look for new ways to reduce food waste. The facility peels visually imperfect but entirely edible potatoes, which are then supplied to Samworth Brothers, a convenience food producer which produces a range of Tesco’s ready meals. New Development James Truscott, managing director of Branston, comments: “Our
Branston has officially opened its new £5 million prepared foods factory extension.
James Truscott, managing director of Branston.
relationship with Tesco is hugely important to the business and its commitment to reducing waste is a shared goal. This exciting new development enables us to play our part, whilst improving quality and freshness for customers.” He adds: “The new state-of-the-art peelers have the capacity to cope with potatoes of all shapes and sizes - the wonky veg - which can be used to supply Samworth Brothers to make mashed potatoes for its range of Tesco ready meals. Working in partnership adds value to all three businesses. We have to continually modernise and adapt to the evolving food industry in order to have a sustainable business.” Matt Simister, commercial director for Fresh Food at Tesco, says: “Working collaboratively with our suppliers to ensure we provide the highest quality fresh produce for our customers is right at the heart of what we do. Our long history of partnering with Branston, has helped to provide the confidence potato growers and the whole potato industry need to invest and innovate for the future.” Matt Simister elaborates: “With thousands of people across the UK having to use food banks every day, at Tesco we are constantly looking for new ways to reduce food waste with everything we grow and sell. This new partnership between Branston and Samworth and new facility means that in addition to our Farms Brands and Perfectly Imperfect ranges, we will be able to use up to 95% of our growers’ crops and save edible produce from being wasted.” Expansion in Scotland Earlier in 2016, Branston unveiled the latest fully integrated grading, washing and sizing line at its Abernethy site – revolutionising the factory’s ability to process high volumes. The £1.7 million investment has allowed the site to gear up production to meet the demand of a large long-term supply contract won by the company. J
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
29
I CONFECTIONERY
Latest Developments in European Confectionery The pace of consolidation is accelerating within the European confection industry as it becomes increasing global in nature, with a number of major merger and acquisition deals completed during the past year. he €80 billion European confectionery market is dominated by seven global players - Mondelez International, Mars, Nestlé, Lindt & Sprungli, Ferrero, Perfetti Van Melle and Haribo - which control more than half of sales. The Top 30 confectionery manufacturers, ranked by their European market shares, are listed in the Table. They are listed under their ultimate holding companies. For example, CFP Brands (ranked 6th) incorporates Perfetti Van Melle, the Italian confectionery giant that manufactures such popular brands as Chupa Chups, Fruittella, Mentos and Smint; while Guta Group (ranked 8th) owns United Confectioners, which holds a leading position in the Russian confectionery market.
T
Mondelez International has been the largest confectionery producer in Europe since its $19.5 billion acquisition of UK-based Cadbury in 2010.
The market consists of three segments - chocolate confectionery (including countlines) is by far the largest ahead of sugar confectionery and chewing gum. The market is intensely competitive as the seven leading global players battle with strong regional and national manufacturers, such as Swedish group Cloetta (ranked 9th), which is strong in the Nordic region, the Netherlands, and Italy; and Tangerine Confectionery (ranked 16th), the leading UK independent sugar confectionery supplier. Market Leader Mondelez International has been the largest confectionery producer in Europe since its $19.5 billion acquisition of UK-based Cadbury in 2010. The US group heads the chocolate confectionery and biscuits markets in Europe and also holds leading positions in gum and sugar confectionery. It owns four billion-dollar confectionery brands - Cadbury, Cadbury Dairy Milk and Milka chocolate, and Trident gum. At global level, the snacks giant is the world leader in biscuits, chocolate and candy, and holds second position in gum. Mondelez International recently attempted to further consolidate
its global pre-eminence by making a $23 billion cash and share bid for The Hershey Company, the US-based confectionery and snacks manufacturer. The Hershey Company employs 21,000 people around the world and has more than 80 brands that generate over $7.4 billion in annual sales. Its portfolio includes such iconic brand names as Hershey’s, Reese’s, Hershey’s Kisses, Jolly Rancher, Ice Breakers and Brookside. Building on its core business, Hershey has been expanding its portfolio to include a broader range of snacks. Hershey, which is controlled by a charitable trust that owns 81% of the company, rejected Mondelez International’s approach regarding a possible combination of the two businesses. “Our proposal to acquire Hershey reflected our conviction that combining our two iconic American companies would create an industry leader with global scale in snacking and confectionery and a strong portfolio of complementary brands,” says Irene Rosenfeld, chairman and chief executive of Mondelez International. “We remain disciplined in our approach to creating value, including through acquisitions, and confident that our advantaged platform positions us well for top-tier performance over the long term.” The Hershey Company remains focused on growing its presence in key international markets while continuing to extend its competitive advantage in North America. Developments in Snacking Mondelez International is now facing stiffer competition in the global confectionery and biscuits markets from Turkey-based Yildiz Holding, the largest food company in Central & Eastern Europe, the Middle East and Africa. Yildiz Holding has brought together its core biscuit, chocolate, and confectionery businesses Godiva Chocolatier, United Biscuits, Ulker and DeMet’s Candy Company, to form a new global snacking giant called Pladis. The new entity unites internationally recognised brands Godiva, a leading premium chocolate brand worldwide, McVitie’s, a leading biscuit brand with a heritage in the UK and Europe, and Ulker, the leading biscuits and confectionery brand in Turkey and Middle
Italian confectionery giant Perfetti Van Melle (ranked 6th) manufactures such popular brands as Chupa Chups, Fruittella, Mentos and Smint.
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
31
East. Together they form a US$5.2 billion business, positioning Pladis as a global leader in the category. Italian confectionery group Ferrero has just broadened its portfolio into the ‘snacking’ market with the acquisition of biscuit manufacturer Delacre from United Biscuits, which is part of Pladis, for an undisclosed price. The deal provides Ferrero with entry to the premium biscuits sector and will help to reduce its reliance on chocolate products. Although the majority of Delacre’s sales are in Belgium and France, it has developed a presence in the US and Canada, which will allow Ferrero to strengthen its position in North America, where it has faced increasing completion from brands such as Lindt and Godiva. The Delacre deal follows Ferrero’s acquisition of Thornton’s, the UK chocolate manufacturer and retailer, for £112 million in 2015. Ferrero’s products, including its well-known Ferrero Rocher, Kinder and Tic Tac confectionery brands as well as its Nutella nut spread, are sold in 160 countries worldwide. With a turnover of Eur9.4 billion for its 2014-15 financial year, Ferrero is shortly expected to become the first Italian food company to break the Eur10 billion sales barrier. Regional Deals Some of the regional players within the European confectionery industry have also been expanding through acquisition. Norwegian food group Orkla has expanded its confectionery business with the acquisition of Lakrisgutta, a Norwegian liquorice company established in 2009, for an undisclosed purchase price. Orkla Confectionery & Snacks is one of Orkla’s five business areas. Swedish confectionery group Cloetta recently acquired Locawo (Lonka), a Dutch company producing and selling fudge, nougat and chocolate, for Eur31.5 million. The acquisition significantly strengthens Cloetta’s position in the Netherlands. Founded in 1862, Cloetta is a leading confectionery company in the Nordic region, the Netherlands, and Italy. Cloetta manufactures and markets sugar confectionery, chocolate products, pastilles and chewing gum, and its products are sold in more than 50 markets worldwide. Mars Wrigley Combination One of the major developments in confectionery during the past year is the decision by Mars Incorporated to combine its Mars Chocolate and Wrigley gum businesses to create Mars Wrigley Confectionery. Mars Wrigley Confectionery will incorporate some of the world’s best loved brands in chocolate (Snickers, M&M’S, Dove, Galaxy, Maltesers and Twix), gum and mints (Doublemint, Extra, Orbit, Altoids, Lifesavers), and fruity confections (Skittle,
Martin Radvan will lead the new Mars Wrigley Confectionery business.
Starburst). Martin Radvan, current global president of Wrigley and a 30-year veteran of Mars, will lead the new Mars Wrigley Confectionery segment, which employs 30,000 people operating in about 70 countries. “Mars Wrigley Confectionery brings together two great businesses, strengthening our ability to create win-win relationships with our customers, and improving our opportunities to address dynamic retail and consumer trends together,” he says. Mars acquired Wrigley Company in 2008 to become the world’s leading gum manufacturer. However, Berkshire Hathaway, the holding company for a multitude of businesses run by chairman and chief executive Warren Buffett, held a 20% minority stake in Wrigley that was subject to purchase by Mars over time. Mars has now completed the purchase of Berkshire Hathaway’s entire
Top 30 Players in the Confectionery Market in Europe Company Ranking 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30.
Ultimate Holding Company Mondelez Internationa Mars Nestle Lindt & Sprungli Ferrero CFP Brands Haribo Guta Group Cloetta AB Alfred Ritter Storck Fazer Toms Elah Dufour Udarnista Tangerine Confectionery CVC Capital Orkla Ricola Bremer Hachez Lotte Confectionery Colian Wawel Ekovita Cemoi CD Holding Heilemann Ritter Migros Baronie Group
Company Market Shares** 17.73% 12.72% 8.41% 7.13% 5.32% 4.32% 3.57% 3.22% 2.66% 1.94% 1.91% 1.59% 1.46% 0.99% 0.71% 0.62% 0.57% 0.52% 0.52% 0.47% 0.47% 0.46% 0.44% 0.44% 0.44% 0.41% 0.40% 0.40% 0.40% 0.39%
•
Coverage: Europe (23 countries): Austria, Belgium/Luxembourg, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland/Eire, Italy, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia, Spain, Sweden, Switzerland, and United Kingdom. • Products: Chewing gum, Other sugar confectionery, Chocolate countlines, Other chocolate confectionery. •• Market shares are for end retail and foodservice markets by value, based on weighted averages of value market data and retail and foodservice buy-in prices. Source: Food for Thought, see: www.fft.com.
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
33
Cloetta is a leading confectionery company in the Nordic region, the Netherlands, and Italy.
equity interest in Wrigley, paving the way for the new combination with Mars Chocolate. The global hub for the new Mars Wrigley Confectionery will be in Chicago in the US. Mars Chocolate and Wrigley will continue to operate separately for the time being. The combination is proposed to be phased in during 2017.
International recently opened a new $30 million state-of-the-art chocolate production line at its plant at Skarbimierz in Poland to meet growing demand for its confectionery and biscuit products in the region. The investment is enabling production of innovative snacking product formats for favourite brands such as Milka, Oreo, Cadbury and Terry’s Chocolate Orange, as well as the local Polish brand 3Bit. Mondelez International is also investing $15 million in a new Research & Development Centre in Poland. Lindt & Sprungli has opened a new $60 million purpose built 25,000 sq m factory and warehouse in Sydney to expand operations to capitalise on the Swiss chocolate maker’s strong growth in the Australian market. Lindt & Sprungli is now under new leadership following the accession of Dr Dieter Weisskopf as chief executive, replacing Ernst Tanner who is continuing to play an active role as executive chairman. The move is part of changes to the group management structure which has been expanded with the introduction of a younger generation of managers with strong track records.
Market Trends A major challenge facing confectionery manufacturers is adapting to the increasing health consciousness of consumers and the current focus on reducing sugar intake as a response to tackling the Capital Investment growing obesity problem. This has resulted in a sharp rise in In Europe, Mars is currently investing Eur100 million at its choco- demand for dark chocolate, which is perceived by consumers as late factory at Veghel in the Netherlands. The investment is part of having health benefits. Other key market trends include the growthe US-based company’s strategy to increase its chocolate produc- ing importance of Fairtrade products and transparency in ingredition across the globe. Capacity is being ent labelling as consumers become increasexpanded at the Veghel factory, which was ingly concerned about how confectionery is the first Mars chocolate factory in made and how ingredients are sourced. Continental Europe, with the focus on Nestlé has become the first major confecincreasing production of miniature versions tionery company in the UK and Ireland to of popular brands like Snickers and Twix to source 100% certified sustainable cocoa for its meet growing consumer demand in Europe. chocolate confectionery and biscuits. The entire range of Nestlé chocolate confectionery By 2025, the Veghel factory will be one of and biscuits sold in the UK and Ireland, the most energy efficient within the Mars including KitKat, Milkybar, Aero, Quality network. Street, After Eight and Smarties, are being proOther global confectionery manufacturers duced using certified sustainable cocoa, have been investing in their European operasourced through the Nestlé Cocoa Plan. Nestlé tions. For example, Nestlé is investing Eur60 is also taking steps to significantly decrease the million over three years to develop its Italian chocolate brand, Baci Perugina, globally. Dr Dieter Weisskopf, chief executive of Lindt & total sugar in its confectionery products, while maintaining a natural taste (see Panel). J Nestlé will extend and modernise its factory Sprungli. in San Sisto and establish a new business unit to drive global growth for the Italian Nestlé’s Groundbreaking Material Science Makes Less chocolate business. Also in Italy, Lindt & Sprüngli is currentSugar Taste Just as Good ly investing Eur100 million in its Italian Using only natural ingredients, researchers have found a way to structure sugar differently. So even operations, spread over a seven years period. when much less is used in chocolate, your tongue perceives an almost identical sweetness to before. In Northern Europe, Ferrero is investing The discovery will enable Nestlé Eur21 million at its Arlon plant in Belgium. to significantly decrease the The expansion includes the introduction of total sugar in its confectionery a new line for the production of 100g products, while maintaining a Kinder Eggs. natural taste. Elsewhere in Belgium, Cargill recently “This truly groundbreaking expanded its chocolate facility in Mouscron, research is inspired by nature following investment of Eur35 million to and has the potential to reduce double output capacity for a product range total sugar by up to 40% in our including dark and milk liquid chocolate, confectionery,” says Stefan drops and chunks and lactose-free dark Catsicas, Nestlé chief technolochocolate. Emerging Markets In addition to consolidating their market positions in mature confectionery markets in Europe, the leading confectionery manufacturers have been expanding into emerging markets. For instance, Mondelez
gy officer. “Our scientists have discovered a completely new way to use a traditional, natural ingredient.” Nestlé is patenting its findings and will begin to use the faster-dissolving sugar across a range of its confectionery products from 2018 onwards. The company expects to provide more details about the first roll-out of reduced-sugar confectionery during 2017. The research will accelerate Nestlé’s efforts to meet its continued public commitment to reducing sugar in its products.
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
35
I CONFECTIONERY & SNACKS
ProSweets Cologne 2017 – New Recipes Thanks to Alternative Ingredients onsumer interest in natural ingredients is C still booming, as is the trend towards sweets and snacks without sugar, fat and ingredients with allergenic potential. More and more consumers are selectively buying so-called "free from" products. ProSweets Cologne, the international supplier trade fair for the sweets and snacks industry, will be demonstrating from 29th January to 1st February 2017 how recipes for sweets and snacks can be adapted to suit the consumer trends and which raw materials are used for this purpose.
The market’s preferences for sweets and snacks are changing. Many consumers are paying more attention to their fat and sugar consumption without wanting to make a compromise regarding the choice and taste. Like sugar-reduced products, the lactose and gluten-free alternatives are in the meantime no longer merely niche products, but have indeed joined the mainstream markets. Production innovations are more important than ever for the manufacturers of snacks and sweets, because food is increasingly defined by what has consciously been left out of the recipe. The "less is more" philosophy is one of the big challenges for the product developers of the industry. Whenever an ingredient is partly or totally removed in the scope of a reformulation, 36
they are faced with the task of retaining the character of the product. The following particularly applies for sweets: After altering the recipe, the taste shouldn't be compromised! Sweet Enjoyment Without Granulated Sugar The significance of sucrose for the taste experience should not be underestimated. It not only adds the customary sweetness to confectionery, it also guarantees the right mouthfeel. When reducing the ingredient that is considered to be the gold standard, the aim is to copy the original as closely as possible in sensory terms. The answers of the ingredients providers at ProSweets Cologne are clever combinations between sugar substitutes and natural aromas, which replace the traditional granulated sugar in soft caramels, lollipops or cream toffees without any loss in taste. For example, Döhler offers everything the product developers need, from the caloriefree exchange with classic high intensity sweeteners or stevia, whereby masking flavours provide the sugar-like taste, through to sweeteners made from fruit concentrates with a comparable sweetening intensity and a neutral taste. As an alternative to sucrose, the sweeteners from the MultiSweet portfolio improve the nutritional-physiological profile by contributing towards reducing the share of high glycaemic carbohydrates. Furthermore, the sugar content can also be reduced without sweeteners using the sugar reduction technology, a special aroma method implemented by Döhler. Egg-free Vegan Biscuits In addition to doing without sugar, consumers are showing a strong interest in products without animal-based ingredients. A trend that is being reflected at ISM. The world's largest trade fair for sweets and snacks is staged parallel to ProSweets Cologne at the fair grounds in Cologne. The product developers of the confectionery producers exhibiting on-site are consciously moving in this direction with vegan ingredients. Alpha-dextrin based vegetable concepts are a new approach here. The soluble food fibre reacts like its animal-based counterpart when baked and emulsifies vegetable oil and margarine, provides a good cake and crumble structure and replaces egg or egg powder
without affecting the taste. Thus, a vegetable raw material alternative can be used for the production of vegan desserts and bakery products - from pound cakes and layer cakes, to muffins, through to waffles and pancakes. Vegetables and Fruits as Intense Food Dyes Whereas sugar and egg not only influence the taste but also the texture, dyes are implemented because of their visual effects. However, just like the trend is currently toward "sugar-reduced", the demand for products using natural dyes is also high. Here, fruit, vegetable or edible plants are used as food dyes. Derived from safflower, tumeric, red radish or black carrots, the product developers can achieve all colours of the rainbow with the rainbow range of WILD Flavors & Specialty Ingredients (WFSI). Their implementation is especially recommended if the priority is on the clean label concept. The formulations can be applied to different sweets. Not only fruit gums, coated sweets as well as soft and hard toffees can be dyed, but also biscuits and chocolate waffles. GNT is the first company on the market to offer a line of micronized powders that are exclusively made out of colouring foodstuffs. The new series of the brand Exberry is suitable for adding bright and at the same time natural colours to instant drinks, sweet and savoury snacks, but
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
also to chocolate or fat-based glazes. The products are available in yellow, red, pink, purple and blue and can be mixed to a virtually endless spectrum of colours. They are also suitable for vegetarian, vegan and halal diets. Inspiration and Solutions to Concrete Questions Developers from the sweets and snacks industry, who are working on new recipes and who want to add variety to the segment of sweets, will find plenty of inspiration and answers to concrete questions next year at the Cologne fair grounds. As the only trade fair of its kind worldwide, ProSweets Cologne offers the complete range of supplies for the sweets and snacks industry: from innovative ingredients, to pioneering packing solutions, through to optimised production
technologies. The industry sponsors of ProSweets Cologne are the Federal Association of the German Sweets Industry (BDSI), Sweets Global Network (SG), the German Agricultural Society (DLG e.V.) and the Central College of the German Sweets Industry (ZDS). More information can be found at www.prosweetscologne.com & www.ism-cologne.com. J
I CONFECTIONERY
Hänsel Processing – Sweet Competence änsel Processing´s installations and machines have the most H advanced technology available. They are successfully operated world-wide and about 90% of the company’s activities are generated by processing machinery with a focus on any kind of sugar confectionery products: • Hard Candy (centre filled, aerated, laminated, milky, sugar free, medicated, specialities); • Jelly & Fondant (gelatine, agar agar, pectin, gum arabic, starch, fondant crème, bakery fondant, milk fondant, fruit fondant); • Toffee (milk caramel, éclair, fruit candies, chewy candies, caramel layers, specialities); • Bar (foam sugar, candy bars, granola, torrone, halwa). Nearly the whole range needed for the production of confectionery, from single machines to complete processing lines, is offered:
tions. With a very high heat transfer coefficient, modular design, special contact-free, static scrapers as well as with easy & simple maintenance the Rotamat® contributes to a smooth and excellent production of high quality products. At the Interpack 2017 in Düsseldorf, new and known customers as well as interested personnel will be welcome in Hall 04 at Booth 4A35. Managing directors Frank Temme and Heiko Kühn will gladly be at your service, accompanied by their skilled native-speakers sales team as well as by French partner company Proform. Interpack 2017 – 4 May - 10 May, 2017 - Düsseldorf, Germany. Hall 4, Booth 4A35. For further information visit www.haenselprocessing.de. J
Product Overview Hänsel Processing: CONTIGRAV® raw material weighing system CROSSFLOW® pre- and final cooking system SUCROLINER® cooking, flavouring, blending and cooling system STRADA® centre filling and forming system ROTAMAT® thin film cooking system CARAMASTER® controlled caramelising system SIEDOMAT TURBOMIX® vacuum cooking / batchwise aeration system TURBOMAT® continuous aeration system HFD® high performance beating system JELLYSTAR® high performance jelly cooking JELLY BLEND® flavouring and blending system UNIBATCH® universal batch cooker LSK-5® Laboratory Batch Cooker. Rotamat® 3609 The thin-layer cooker is perfectly suitable for cont. cooking of sensitive masses which tend to scorch or need gentle treatment. Cooking under vacuum & overpressure is possible without restric-
Rotamat® 3609 including JellyStar in laboratory scale.
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
37
I CONFECTIONERY & SNACKS
A.M.P Rose – The Packaging and Processing Machinery Specialist stablished over 35 years ago, A.M.P E Rose is one of the world's leading machine builders, process and packaging
tomer applications and outputs. The depositor is capable of producing centre-filled products solutions provider for the confectionery, through the ‘one-shot’ method. chocolate and snack industries. Centres such as caramel, praline, fondant etc. can be used. It can also produce chocolate slabs with whole nuts and raisins, or with finely chopped inclusions. The moulding lines are from modular design, which gives them flexibility for any changes that a customer may want to do to the line in the future. Some of the changes that can be achieved include extending the cooling tunnel if the customer decides to change the product going through NR10 machine. the line, or if they need to add a biscuit or wafer placing unit in their pro- and toffees in various different wrapping duction. This flexibility gives consideration styles. As well as the traditional double to a company’s future growth, and fast twist or folded ends, versions of the 750 moving market changes that chocolate can also produce lollipops, products with a manufacturers need to adapt to at any time. visible design ('whirl' machine), cigarette Of all the equipment A.M.P Rose pro- style wraps, and also long bars up to duce, the specialist skill is in the design, 152mm in length. The '750/755' range is an extremely versatile manufacture and operation of cut and wrap yet low-cost cut and wrap machine which machinery. The secret is not just in the Exciting Developments offers production speeds of up to 750 production of the machine, but in adapting 2016 has seen some exciting developments pieces/minute. it to suit the different product and wrap- in the company, as they have moved into a A.M.P Rose has evolved and developed ping material characteristics that can be new purpose built factory in early January immensely since its humble beginnings in encountered. 2016. The new factory has over 100,000 1978. It has managed to transform from a The '750/755' range is an extremely ver- sq/ft of floor space incorporating all departsmall supplier of rebuilt packaging satile yet low-cost cut and wrap machine ments - machine design featuring 3D machines for the confectionery industry, to which offers production speeds of up to CAD/CAM software, a modern machine a greatly successful machine builder with 750 pieces/minute. The machine is capable and fabrication shop with CNC machine international renown and nearly 75% of its of producing confectionery products such tools, software design department, metal products being exported to over 80 coun- as bubble gum, hard candy, chewy sweets finishing as well as electrical and mechanitries world wide. cal assembly and testing areas. The wide range of new machines This is not the only change of 2016 as include cut and wrap machines for all the company logo has been changed. styles of wrapping, chocolate moulding “We believe that this more modern lines, chocolate wrapping, specific design reflects our growth and profesmachines for production and packaging sional approach to business,” says Adam of hard candies, laboratory range for triMalpass, Marketing Manager. “In addials and small-scale production, as well tion it signals a new beginning for the as revolutionary feeding systems for company and the next chapter of the multi-packing flow wrap machines. company’s history.” Coinciding with this, a brand new Recent Addition website had been launched as well, with One of the more recent additions to the the aim to make it easier to use and help A.M.P Rose family is the ‘700/1000’ to showcase the company’s capabilities chocolate moulding line. It is available as a premium supplier of food processin multiple widths to suit specific cus- 700/1000 chocolate moulding line. ing and packaging equipment. J
38
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
I COCOA & CHOCOLATE
New Cargill Report Highlights Key Trends in Cocoa and Chocolate argill’s cocoa & chocolate C business has just released its comprehensive report highlighting key sector trends to help manufacturers develop their next winning innovations. Based on insight gained from interactions with customers across numerous application categories, and on information gathered from projects with customers through Cargill’s application centres, the report highlights trends across four key themes: Indulgent; Premium; Healthy; and Sustainable and clean. Indulgent – today’s consumer is looking for an ever-more indulgent experience, across flavour, texture and colour, inspiring new levels of creativity in sweet foods around the world. In flavours – vegetable and chocolate combinations are becoming popular across a range of categories, for example kale flavour fillings in chocolate bars and chocolate featuring alongside beetroot in cakes. Texture is also evolving towards more indulgence, with larger chocolate chunk inclusions as well as new combinations of textures such as crispy chocolate layers on top of creamy desserts. Cocoa powder is increasingly being used to play with shades and add depth of colour. Premium – demand for premium products is at an all-time high, with provenance and origin being key among cocoa and chocolate products. Besides specifying the origin of cocoa or chocolate, manufacturers increasingly highlight on the pack the country where the end-product was manufactured, satisfying consumers’ desire to buy local products. Inspiration from the artisanal industry is also observed. Processes behind the product are becoming more prominent on packaging – with details included such as ‘stone ground’ or ‘slow churned’ and even the conching time of chocolate. Healthy – how diet affects health and wellness is increasingly on consumers’ minds, leading them to avoid ingredients perceived as unhealthy, and look for those perceived as healthy. Besides the long standing trend for sugar reduction and gluten free, lactose free claims are increasingly being observed in cocoa and chocolate products, with milk alternatives such as coconut milk increasing in popularity. Looking at ingredients seen as beneficial, the trend for protein is still booming and becoming mainstream, breaking free from the sports nutrition niche and focusing on satiety rather than sports recovery. Sustainable and clean – where food comes from, how it is produced, and its true ethical and environmental cost, really matter to today’s consumer. Cer-tified chocolate products
are becoming more popular and spreading their reach out from chocolate tablets into dairy, bakery, biscuits and ice cream. Answering consumers’ needs for more transparency, clean and clear labelling is also more important than ever. In the quest to remove enumbers, real fruits and plant extracts are being increasingly used to naturally colour products. Real Insights Niklas Andersson, Marketing Director Cocoa & Chocolate Europe, explains: “Whether working in confectionery, biscuits, bakery, cereals, dairy or ice cream, our report provides real insights that can help manufacturers get a head start on the competition when creating new products and innovations. Today’s discerning consumer is looking beyond value for money. They are better informed than ever before and, as our research demonstrates, they consider the contents of their food and its impacts on the future more than ever before. In short, they want food that tastes good, is good, helps them to be good and does good.” Meeting these desires presents real challenges for food manufacturers and they need the ingredients and innovation capabilities to make the products that reflect today’s trends. Two such innovative ingredients examples are Cargill’s Caramel Equilibre, a unique white chocolate with caramel, and the new Gerkens® dark intense red cocoa powder, a next-generation cocoa powder which brings great colour to a range of products. Cargill’s T-model Approach Alongside insight and ingredients, access to end-to-end expertise is essential so manufacturers can bring new products to market – and Cargill’s T-model approach provides this. By combining knowledge across multiple food-related industries, matched with a deep cocoa and chocolate expertise, Cargill can help customers translate the latest trends into innovative products to meet the demands of their consumers. “Only Cargill can provide the insight, ingredients and end-to-end expertise that takes manufacturers every step of the way – from inspiration to application and then to market,” concludes Niklas Andersson. To download a copy of the Trends report and discover how to stay ahead of consumer tastes visit http://www.cargill. com/trends/. J
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
39
I POTATOES
Total Solutions From CPM Wolverine Proctor By Robin Holding, Commercial Director, CPM Wolverine Proctor Ltd he humble potato is one of the most versatile and flexible root T crops known to man – there are hundreds of varieties, all with differing skin colour, flavour and texture, and our ingenuity in terms of what we do with them seems to know no bounds. The potato on its own can be baked or roasted, cut, sliced/diced or cubed and then boiled, fried or mashed to make something that can be eaten as a snack or as part of virtually any meal, at any time of the day or night. Then there are the derivative products such as potato powder, flake or starches which can be used as they are and mixed into doughs for further processing, or modified to take advantage of their unique properties – indeed, whole industries have sprung up around them, including for applications such as wallpaper paste. Challenges
This presents a great challenge to the potato R & D teams and, further upstream, to the machinery manufacturers. Clearly, we need to work together to develop new processes and products to be able to satisfy consumer demand, but there can often be a trade-off between what is desirable and what is practical or cost-effective. This is where it is particularly important to develop an effective dialogue between the marketing, R & D and supplier’s engineering personnel, so that ideas can be explored, analysed and then discounted or pursued as appropriate. CPM Wolverine Proctor Ltd., has been supplying processing machinery to the food industry since early last century and continues to do so on a global basis. We have manufacturing facilities in Europe and the USA and our customers are becoming progressively more reliant on us as a total solution supplier, partly because they have had to reduce their own engineering resources to remain competitive, but also because they value the depth of experience that we have built up over the years. We have product development facilities available in both the UK and USA and we encourage our customers to carry out secure lab trials when developing a new product with us. This can cover everything from extruded snacks to predried fries, roast patties or baked chips.
Project Management and Engineering Resources
In order to meet demand, we have developed our project management and engineering resources, bringing in new design initiatives and process knowledge, allowing us to draw on experiences that may have come from unexpected applications in other industry sectors and enabling us to offer a truly turnkey supply. For all types of foodstuffs, we are able to offer complete plants based on batch or continuous cooking, forming, drying, baking, roasting and toasting. Our recent acquisition of TSA Griddle Systems now enables us to add another dimension to our overall capability with waffles and pancake systems. At the detailed engineering level, hygiene continues to be a major driving force when developing our design features, benefitting the potato processor in areas such as washdown, cleaning and drainage, minimising downtime and avoiding cross-contamination, energy wastage, etc. Naturally, we do not profess to manufacture every machine that we supply, but by teaming up with other specialist machinery manufacturers and technologists, we can offer potato processors a “onestop shop” for everything from raw material handling right through to finished product palletization, all managed by a dedicated project management team. Preferred Machinery Supplier
Our continuing drive to be the preferred machinery supplier means that we are actively encouraging our customers to talk to us about what they like and dislike, listening to their ideas and identifying the priorities for their business. Only then can we hope to meet and exceed their expectations by supplying them with the optimum solution. We are proud to be a major supplier to many of the most iconic potato processing companies around the world and we look forward to continued success with them, as well as with new players in the future, whatever their product lines might be, potato-based or otherwise. J 40
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
TMDP LLP – Dedicated to the Food and Drink Processing Industry MDP LLP is a full service architectural design and property management agency T working with, and retained by some of the largest food and drink processing companies
across the UK. With the ability to recognise and react to the demanding timescales and complex programming inherent in processing plant projects, TMDP LLP are able to offer outstanding value for money, innovative design and exceptional construction and maintenance solutions to the UK’s food and drinks processing industry. TMDP LLP’s breadth of experience means they can deliver all types of projects within this sector, from new build, refurbishment and complete redevelopment to silo construction, plant room fit-out and production line design and installation. By working closely with clients at every stage, TMDP LLP are able to understand and implement exactly what is required to ensure operational efficiencies and effectiveness. TMDP LLP also understand that down-time and production line disruption is critical and as such, a comprehensive programme of works is agreed at the outset of a project and rigorously maintained through-
out its duration. TMDP LLP’s track record speaks for itself and their blue-chip client base is testament to the company’s abilities and dedication to the food and drink processing industry. J
I THERMOFORMERS
ULMA Packaging’s Solutions Are Perfect Catch For Seafood Firm easonal catches are the busiest time of the year for seafood processors so it is imperative that packaging machinery left idle S for long periods of time can be restored to action quickly and reliably, with the minimum of fuss, to help meet demand during these peak periods. ULMA Packaging is helping leading seafood processor Denholm Seafoods improve efficiency and increase its future capacity by supplying two TFS 600 Thermoformers for intermittent packing of whole round Mackerel and Herring at the firm’s modern quayside facility in Peterhead. Denholm Seafoods, which supplies global markets with both fresh and frozen fish landed by modern vessels who are partners of Denholm Seafoods, required packaging equipment that could help speed the delivery of these seasonal fish from processing to despatch. Close collaboration with its packaging partner, coupled with ULMA’s equipment expertise for bulk packing, has been essential in getting the 20kg cartons of Mackerel and Herring processed quickly during the intense pressure of the production season, according to Denholm Seafoods’ Managing Director, Robert Duthie. He says: “One of our competitors recommended ULMA and they’ve not let us down. We don’t run a normal operation each and every day. We work in peaks and troughs throughout the year and required a packaging supplier that could adapt to seasonal produc-
tion. The Thermoformers are performing excellently, working well getting our products to market with minimum delay. “We know we are not working the machines to their full capability but we can increase capacity if we need to. The co-operation we have had from ULMA has been excellent. I have been impressed with how quickly they respond to our needs. It’s more than likely that we will increase capacity in the next two or three years and we know that ULMA can help us achieve that goal.” ULMA’s TFS Thermoformers are the most hygienic on the market thanks to an innovative design, which provides easy access for deep cleaning to help food manufacturers meet and even surpass the most exacting regulatory standards demanded by today’s seafood industry. For further information visit www.ulmapackaging.co.uk. J
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
41
ENERGY
ENVIRONMENT
I ANAEROBIC DIGESTION
Dairy Bioenergy Plant Wins Circular Economy Award Success in the prestigious 2016 Business Green Technology Awards for the Best Circular Economy Project highlights how Clearfleau is leading the way with bio-energy technology for deployment on industrial sites. ritish engineering innovation is behind the ability to convert B liquid bio-degradable residues into valuable on-site renewable energy. The potential for integrating the food processing sector into the circular economy is highlighted by the successful bioenergy plant installed by Clearfleau (a leading UK provider of onsite bio-energy plants) on the First Milk cheese factory in Cumbria, which is supplying biogas produced from cheese residues to the gas grid. Generating on-site renewable energy is a practical illustration of how a more circular approach can enable businesses in the food and drink sector to save costs and generate onsite energy from their biodegradable residues. Anaerobic Digestion (AD) of such residues produces biogas for factory use.
Lake District Biogas is one of Britain’s most advanced AD plants.
able and efficient by reducing disposal charges and optimising energy use. The system also allows cleansed water discharge into nearby rivers and can assist local farmers by replacing fossil-fuelderived fertilisers with nutrient rich bio-solids. In addition to securing better resource use, a more circular and sustainable approach to managing co-products and process residues can reap significant rewards, both financially and environmentally. J Advanced AD Plant Lake District Biogas is one of Britain’s most advanced AD plants. Located at First Milk’s Aspatria creamery, it is the largest AD plant to be built on a creamery site in Europe. It is also the only dairy sector bio-energy plant that is producing bio-methane based solely on cheese processing resides. The biogas produced is converted into the equivalent of natural gas that is fed to boilers to generate heat for use in the cheese making process – as well as supplying local households. Converting unwanted bio-residues to bio-methane has reduced the site’s environmental impact, minimising its carbon emissions and cutting related costs. Circular Economy On-site industrial AD is a practical example of the circular economy in action. It helps food processing sites become more sustain42
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
ENERGY
ENVIRONMENT
I ANAEROBIC DIGESTION
Pentair Haffmans Wins UK AD & Biogas Award entair Haffmans has won the 2016 UK AD & Biogas Award, P hosted by the Anaerobic Digestion Association (ADBA), in the category of ‘Best Process Optimisation’ for its advanced biogas upgrading technology. Taking place on the evening of 6 July as part of this years’ UK AD & Biogas Trade Fair, the UK AD & Biogas Industry Awards showcased the very best plants, successes and people across the anaerobic digestion industry in the UK & beyond.
Pictured (left to right): Charlotte Smith, ADBA; Olaf Müller, Vice President Hygienic Process Solutions; Francois Huberts, Haffmans Sales Manager Biogas Systems; Ivan Williams, Commercial Director CO2 & Biogas Systems; Ivan Rigney, Sales Director Food & Beverage Process Solutions UK, Ireland, Russia, & Eastern Europe; Jorgen Ballermann.
Ivan Williams, Pentair Haffmans Commercial Director and Haffmans Systems Business Leader, comments: ‘’On behalf of the Pentair Haffmans team we are honoured to receive this award from the AD Biogas Association, UK. We are strongly committed to our One Pentair Values of Win Right and Customer First. We highly appreciate the trust our customers continue to show in our products and services and remain dedicated to developing new, innovative and sustainable solutions for an ever changing world.’’ The judging panel recognised the positive impact that Pentair Haffmans’ technology brings to the operation of a biogas upgrading plant. Pentair Haffmans’ Advanced Plus biogas upgrading system recovers 100 per cent of the methane, which eliminates the environmentally-harmful methane slip that usually occurs with other upgrading techniques. In addition, the CO2 by-product can be recovered and sold, providing plant operators with an additional source of income. The portion of environmentally-harmful greenhouse gases released to the atmosphere is reduced to almost zero, which makes this technology a future-proof investment. Recently, Pentair Haffmans has extended its product range with the Compact Enclosed Skid CO2 Recovery System that can be connected to any existing biogas upgrading plant. In total, 71 entries across 17 categories were shortlisted for the award. For further information visit www.pentair.com. J
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
43
I INGREDIENTS & CONSUMER FOODS
Kerry Group Hones its Technological Edge Armed with its new €100 million Global Technology & Innovation Centre, located at Naas in Ireland, Kerry Group is seeking to exploit its position as a global leader in the development and supply of taste and nutrition technologies and systems to capitalise on the growing consumer demand for healthier foods with natural ingredients and fewer additives. eadquartered in Tralee, County Kerry in Ireland, Kerry Group employs some 23,000 people (including 800 scientists) and serves a global customer base across over 140 countries. It is listed on the Dublin and London Stock Exchanges. Kerry’s Taste & Nutrition business is by far the largest element of the group, accounting for about three-quarters of total sales and over 80% of trading profits. Kerry Taste & Nutrition is a ‘B2B’ taste, nutrition and functional ingredients solutions provider to all sectors of the food, beverage and pharmaceutical markets.
H
Kerry Taste & Nutrition is a ‘B2B’ taste, nutrition and functional ingredients solutions provider to all sectors of the food, beverage and pharmaceutical markets.
Technological Edge The opening of the new Eur100 million Global Technology & Innovation Centre at Naas is part of Kerry Group’s strategy of investing heavily in highly specialised research, development and application centres of excellence, which provide the Irish business with a ‘technological edge’ and a distinct competitive advantage. Indeed, Kerry Group’s success is based on a total commitment to ongoing technological innovation to provide integrated customerfocused product development. This proactive approach to meeting changing customer and market requirements means that Kerry Group is well placed to capitalise on current consumer trends, including a growing preference for natural, health and wellness offerings, ‘clean label’ propositions and convenience foods. The fragmenting nature of the marketplace, characterised by the increased use of online shopping, greater penetration by regional brands, expansion of the food service channel, and continued growth in consumer demand for snacking, food-to-go and convenience products, has contributed to a significant product ‘churn’ as food and beverage providers seek growth through innovative, differentiated product developments. Kerry Group’s combined taste, nutrition and general wellness capabilities and unique ‘systems’ approach means it is ideally placed to meet the increased customer demand for the development of convenient taste and nutritional product lines.
Global Market Leader As the largest player within the highly fragmented $50 billion global ingredients and flavours market, Kerry Group has ample scope for further expansion through acquisition. For example, Kerry Group recently completed the acquisition of three US-based businesses - Red Arrow Products, Island Oasis and Biothera Inc’s Wellmune business – for $735 million to significantly expand its portfolio of innovative taste and nutrition solutions. The acquisitions have also added a number of important innovative technology platforms to Kerry Group while providing growth opportunities in both its developed and developing markets. Despite the challenging economic environment in many markets across the globe, Kerry Group remains on track to meet its longterm targets for its Taste & Nutrition business of volume growth of 4-6% per annum and margin expansion of 50 bps per annum. Irish Expansion Kerry Group is reported to be considering a Eur60 million expansion of its dairy ingredients facility at Listowel in Ireland. The project entails building an extension to house new processing equipment and addition drying capacity to expand the site’s whey production by about 20%. The Listowel site is also being connected to the national gas network, with work on the pipeline expected to commence in 2017. The gas connection will bring the Listowel plant into line with its sister plant at Charleville in County Cork. Kerry Group is planning to establish a CHP plant to power the Listowel factory. This is likely to be commissioned by mid-2018. Established in 1972, Listowel was a fledgling Kerry Group’s first manufacturing plant. Since then, Kerry Group has enjoyed a mete-
Kerry Group’s new €100 million Global Technology & Innovation Centre at Naas.
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
45
The company owns the number 1 and 2 sausage brands in Great Britain. It is the largest branded dairy supplier in Ireland, owning the top spreads and cheese brands. In Great Britain, it is a leading customer brand supplier, ranking first in frozen ready meals, chilled ready meals and ready to cook.
Kerry Foods is a leading manufacturer of added value brands and customer
Brexit Challenge Kerry Group is not only Ireland’s largest indigenous food company but its global presence, which helps to cushion the effect of local and regional economic downturns, means that it is one of the best placed to weather the impact of Brexit, despite its consumer foods business being largely based in the UK. Although Kerry Group operates more than 20 plants in Northern Ireland and Britain, the vast majority of the output is supplied to UK customers and consumed locally. J
branded foods to the Irish, UK and selected international markets.
oric rise from a small, Irish regional dairy co-operative into a Eur6 billion turnover business and the largest player within global ingredients and flavours market, as well as being a significant producer of consumer foods. Consumer Foods Business Although only accounting for about a quarter of total revenue, Kerry Group’s consumer foods operation - Kerry Foods - is still a substantial business with annual sales approaching Eur1.5 billion. Kerry Foods is a leading manufacturer of added value brands and customer branded foods to the Irish, UK and selected international markets. Its product portfolio encompassed over twenty high profile brands across three major market sectors - meat and savoury products, meal solutions and dairy products – including many household names and category leaders such as Richmond, Wall’s, Mattessons, Denny, Shaws, Cheestrings, Dairygold and LowLow.
Kerry Group’s combined taste, nutrition and general wellness capabilities and unique ‘systems’ approach means it is ideally placed to meet the increased customer demand for the development of convenient taste and nutritional product lines.
Bring Home the Bacon With Unique Fudge Flavours From Pecan Deluxe s food retailers, restaurants and QSRs all battle to gain a comA mercial edge over their competitors, it is often down to manufacturers and ingredient suppliers to suggest the newest and most innovative solutions to win over those discerning consumers. Leading European inclusions specialist Pecan Deluxe Europe has raised the bar again with its latest product launch - Bacon and Smoky Bacon Flavour Fudge Pieces. Designed to add a delightful twist to almost any application, from ice cream inclusions and toppings to sweet pizzas, cakes and even salads, this unique new fudge variant is inspired by long-established sweet and savoury combinations such as the popular American breakfast of bacon and pancakes, drizzled with maple syrup. The fudge contains no actual bacon at all – just an authentic natural flavour and, as per other Pecan Deluxe inclusions, only natural colours to achieve a bacon-like appearance. Available as regular or smoky bacon flavours with the option of chocolate coating, the range is bake-stable and extremely versatile as it is supplied in 3mm, 6mm and 9mm 46
pieces. Suitable for ambient storage, there is a choice of packaging options including bag in box or various bag formats from 200g to 2kg. Pecan Deluxe Europe Business Development Manager Jenny Baillie explains: “Consumers are becoming ever more diverse in the search for new tastes and textures in their diets. There’s no doubt that traditional inclusions, such as sweet fruit flavoured fudges, are still immensely popular but there is also a growing niche for really innovative flavour combinations that challenge the norm and have the capability to surprise and delight consumers.” Jenny Baillie adds: “Our bacon flavour fudge range is completely new to the market and the combination of savoury/salty and confectionery-sweet flavours works brilliantly. We’re already looking at teaming the fudge with other ingredients to generate many more innovative and delicious options across multiple applications, and look forward to working with manufacturers to develop additional unique solutions to bring to market.” For more information visit www.pecandeluxe.eu. J
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
I DAIRY
Enabling Great Tasting Reduced-sugar Yogurt and Yogurt Drinks ecent global trends in health and wellness have had a significant R impact on the food industry, and the dairy market is no exception. Consumers are increasingly looking for healthier food products and search for ways to decrease their sugar intake, which has fueled consumer interest in low and natural sugar dairy products. Skepticism towards low-fat products is growing, with consumers realizing that many low-fat yogurts contain a high amount of added sugar. Dairy manufacturers therefore need to find innovative solutions to respond to customer needs. Consumers are not only concerned with the health impact of sugar intake, but also the safety and taste implications that artificial sweeteners – used to decrease the sugar content - can have when compared to full-sugar options. As most people like sweet, indulgent products, it is a challenge for yogurt producers to reduce sugar levels in yogurt and yogurt drinks whilst retaining the same taste. Another key consideration is shelf life – especially in the case of yogurt drinks. Consistent freshness of a product, even when it cannot be stored in a refrigerator, is key to market success. At room temperature, a standard yogurt culture will develop acidity that will change the flavor and also increase decantation, as the layers of liquid will have an increased chance of separation. Therefore, yogurt drinks require stability to stay fresh and tasty, regardless of the storage conditions. This means that the culture used in the fermentation process needs to have limited post-acidification at room temperature. Sugar Reduction Solutions Choosing the right ingredients helps yogurt producers to overcome technical challenges and meet customer requirements for reducedsugar drinkable or even spoonable yogurts that remain fresh, tasty and can still be consumed ‘on the go’. Sugar lactose is the main carbohydrate in milk and has a low relative sweetness compared to sucrose. By using DSM’s Maxilact® lactase enzyme, the sweetness of lactose can be doubled, but in a natural way. In fact, lactase breaks down lactose into more easily digested and sweeter forms of sugar: glucose and galactose. These components have a higher relative sweetness than lactose and create a sweetness which is very similar to sucrose. Lactase (also pre-
sent in the human body) enables sugar to be reduced by up to 20%, without adding other ingredients. A further reduction of up to 50% is possible with the use of other natural sweeteners. Maxilact® provides a superior sweetness quality, as the profile obtained by using DSM’s solution balances out the otherwise lingering taste of high-intensity sweeteners. This technology improves product stability over shelf life and is very easy to integrate into any production process. It is suitable for organic dairy production and is globally approved and recognized. To offset any textual challenges while reducing sugar in dairy, DSM’s Delvo®Yog FVV-122 is the perfect fit. These innovative yogurt cultures allow for the production of high-quality yogurt with a creamy texture and mouthfeel, and a mild stable flavor. The culture demonstrates a very low post-acidifying profile during the fermentation process, compared with standard cultures available on the market. This performance offers flexibility in the cooling process, meaning the quality will not be affected by a long storage time before filling. It also shows low post-acidification during shelf life, even in challenging storage conditions, for example 20 C. The culture’s superior texture performance when used together with Maxilact ® allows the maintenance of firm texture and mouthfeel in reduced-sugar recipes. There is no need for stabilizers or to compensate for potential texture loss due to the lower dry matter. This optimizes dairy manufacturers’ recipe costs and enables them to offer clean label products. 0
Healthy and Convenient Yogurts With a Sweet Taste Yogurt is the ideal format for dairy producers who aim to create a reduced-sugar end product that consumers will enjoy and that will remain competitive in the market. The use of a unique combination of enzymes and cultures can reduce sugar content, whilst offering a more stable end product with increased shelf life. This means dairy producers can gain a competitive advantage and meet the demands of the growing number of consumers looking for great tasting reduced-sugar yogurt. For more information on DSM’s wide range of solutions for dairy, please visit: www.dsm.com/food. J FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
47
I INNOVATION
Dark Intense Red Cocoa Powder – The Latest Innovation in the Gerkens Range From Cargill he latest addition to the Gerkens® T cocoa powder range from Cargill is an intense dark red cocoa powder – with unique colour attributes that make it the only powder of its kind on the market. Produced as a result of a Research & Development (R&D) breakthrough by Gerkens® technical specialists at the Gresik cocoa processing facility in Indonesia, and exemplifying Gerkens® end-to-end innovation capabilities, this new cocoa powder is the latest Gerkens® development driving innovation in food ingredients and applications. Dick Brinkman, manager Technical Service, Cargill Cocoa & Chocolate, explains: “This next-generation cocoa powder has an exceptional red colour. Looking at the market and consumer insights we have gathered, we note that across all categories there are clear consumer needs regarding further sophistication and choice in chocolate flavoured products. This new powder is an example of effective innovation which will broaden the offering across dessert, ice cream and chocolate milk products and invite consumers to try new products.”
Gerkens® dark intense red cocoa powder is ideally positioned for chocolate ice cream, drink and dessert applications which reflect the premium trend towards intense rich colours and flavours, as well as the use of contrasting colours and multiple chocolate shades. Gerkens® cocoa powder innovation is
backed by a dedicated R&D centre for cocoa at Wormer in The Netherlands, with over 100 varieties of cocoa powder produced as a result of its work. Linked to this R&D centre are a wider global network of application centres and development facilities across five continents, home to scientists and technologists, undertaking research on emerging trends, supported by the knowledge and expertise of food scientists, nutritional experts, and technicians from different sectors. Emiel van Dijk, Strategy & Innovation Leader at Cargill Cocoa & Chocolate concludes: “All this research comes together to create ‘joined-up expertise’ via our T-model approach. This combines knowledge across multiple food-related industries matched with our deep cocoa and chocolate expertise, allowing customers to develop the latest and greatest innovations. Gerkens® dark intense red powder is the perfect example of how innovative R&D can result in a unique ingredient which creates the potential for a broadened range of chocolate-flavoured products.” To find out more visit the website at www.cargill.com/gerkens. J
DuPont Nutrition & Health and Inbiose Partner to Bring Novel Infant Nutrition Ingredients to Market uPont Nutrition & Health has entered D a joint development and licensing agreement for exclusive rights to selected fucosylated human milk oligosaccharides (HMOs), including 2’ -fucosyllactose, with Inbiose, a Belgium-based producer of specialty carbohydrates. HMOs are important targets for Inbiose and the market launch of 2’-fucosyllactose represents a key milestone for the compa-
48
ny. Inbiose is currently developing new processes for other HMOs and specialty carbohydrates. HMOs are a group of unique oligosaccharides found in mother’s milk, with 2’fucosyllactose being the single most abundant HMO. This new partnership combines Inbiose’s innovative production platform for specialty carbohydrates with DuPont’s capabilities in industrial-scale fermentation, regulatory and health science expertise, as well as global market access. “This partnership is part of a new era in ingredients targeted for infant nutrition,” says John Rea, global business unit leader for Probiotics, Cultures, Food Protection and HMOs at Du Pont. “With this development, we’re working toward fulfilling our corporate mission to help solve the world’s food challenges by providing inno-
vative ingredients our customers can use to make healthy and nutritious products. Our investment here complements the broad capabilities DuPont has built in probiotics and understanding the human gut microbiome, as well as our technologies already targeting this area.” The partnership is currently focusing on developing the ingredients for market introduction by implementing an industrial-scale fermentation process and submission for regulatory approvals to enter the market in 2017. “We are excited to collaborate with Inbiose and bring the science of HMOs to market,” says Martin Kullen, global R&D leader for Probiotics, Cultures, Food Protection and HMOs at Du Pont. “HMOs are key in helping our customers move another step closer to matching the composition of human milk with their infant nutrition products.” J
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017