Food and Drink Business Europe

January/February 2019

DMK Group opens €145 million high-tech baby food plant

Food & Drink Business Website:

www.fdbusiness.com

C o n t e n t s

- 19 F ROZEN F OOD

- 3 M ERGERS & A CQUISITIONS

Global growth at Ardo Group.

Coverage of British and international deals.

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Nitin Paranjpe, President Food & Refreshment, Unilever.

- 9 C OVER S TORY

DMK Group opens €145 million high-tech baby food plant.

- 23 E VENT Hundreds of new food and drink products to launch at IFE 2019.

P AGE 9

Stefan Eckert, COO, DMK Baby.

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- 13 P OULTRY

R EGULARS

Cargill invests £35 million in Wolverhampton factory as it continues European poultry expansion.

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Bottling & Packaging . . . . . . . . . . 21, 24-27

Ivan Menezes, CEO, Diageo.

Sustainability in the Food and Drink Industry Takes Centre Stage at Packaging Innovations 2019 . . . . . . . . . . . . . . . . . . . . . . . . . 25

Processing & Manufacturing . . . . . . 21 & 22

- 15 I NNOVATION

Materials & Ingredients . . . . . . . . . . . . 28-32

Three global food and drink trends for 2019.

Chris Langholz, President, Cargill Global Poultry.

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Jenny Zegler, Director, Mintel Food and Drink.

Managing Director: Colin Murphy Editor: Mike Rohan Group Operations Manager: Sylvia McCarthy

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Noel White, CEO, Tyson Foods.

- 16 N UTRACEUTICALS Vitafoods Europe 2019 set to close the loop on a greener future for the global nutraceutical industry.

- 17 F OODSERVICE Increase in social media sharing driving shift in beverage trends.

Advertising: Ian Stewart, Rachel Howard and Tony Lambert Production Manager: Sylvia McCarthy

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Ingo Müller, CEO, DMK Group.

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FOOD & DRINK BUSINESS EUROPE, JANUARY/FEBRUARY 2019

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M E E R R G G E E R R S S M Unilever Spends Over €3 Billion to Accelerate Presence in Healthy Foods Unilever has agreed to acquire the Health Food Drinks portfolio (GSK HFD) of GlaxoSmithKline (GSK) in India, Bangladesh and 20 other predominantly Asian markets for Eur3.3 billion in a combination of cash and shares. In 2018, the GSK HFD portfolio delivered total turnover of about Eur550 million, primarily through the Horlicks and Boost brands. Almost 90% of the turnover is in India.

The transaction is aligned with Unilever's stated strategy of increasing its presence in health-food categories and in high-growth emerging markets.

GSK HFD is the undisputed leader in the Health Food Drinks category in India, with iconic brands such as Horlicks and Boost, and a product portfolio supported by strong nutritional claims.

Nitin Paranjpe, president, Food & Refreshment at Unilever, says: “The iconic Horlicks brand has a deep heritage, credibility and resonance around the world. The acquisition is transformative for our Foods and Refreshment business allowing us to enter the Health Foods Drinks category, further strengthening our position in health and wellness. It is rare to be able to acquire brands with such leading market positions and fantastic consumer equity in one of the world's most exciting and fast-growing markets.”

Unilever has since acquired graze, the UK's leading healthy snacking brand, for an undisclosed sum. Founded in 2008,

Nitin Paranjpe, president, Food & Refreshment at Unilever.

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graze produces a range of snacking nuts, seeds, trail mixes and snack bars, with no artificial ingredients. Having started with a snack box delivery service, graze is now a multichannel brand, with products available via retail stores, e-commerce and direct to consumer.

With a broad portfolio of healthy snack products, graze accelerates Unilever's presence in the fast-growing healthy snacking and out of home markets.

Fuller, Smith & Turner to Sell Beer Business For £250 Million to Asahi Group Fuller, Smith & Turner, the UK brewing, pub and hotel group, has agreed to sell its entire beer business to Asahi Europe, a wholly owned subsidiary of Asahi Group Holdings, for an enterprise value of £250 million on a debt free, cash free basis. The business being sold comprises the entirety of Fuller's beer, cider and soft drinks brewing and production, wine wholesaling, as well as the distribution facilities, and also includes the Griffin Brewery, Cornish Orchards, Dark Star Brewing and Nectar Imports.

Asahi Europe will acquire the brands of the Beer Business (including London Pride) and will receive the benefit of a licence, on a perpetual, global, exclusive and royalty-free basis, to use certain trade marks (including the Fuller's name, logo and cartouche) for the provision of beverages. Ownership of the licensed trade marks will be retained by Fuller's.

The enterprise value of £250 million, represents a multiple of 23.6x EBITDA (of £10.6 million for the 52 weeks ending 31 March 2018).

Following completion of the proposed disposal, Fuller's will be a focused, premium pub and hotel operator. Fuller's will enter a supply agreement with Asahi that will ensure continued supply of beer and cider. The deal is expected to complete in the first half of 2019.

Simon Emeny, chief executive

of Fuller's, comments: “Brewing has formed an integral part of our history and brand identity, however the core of Fuller's and the driver of our future growth is now our premium pubs and hotels business.”

Akiyoshi Koji, chief executive of Asahi Group Holdings, says: “We strongly believe that the brands of the Beer Business, including London Pride, Frontier and Cornish Orchards among others, complement our premium portfolio in the UK market. In particular, London Pride is a fantastic brand with an illustrious heritage dating back to the 1950s and we are excited about its untapped international potential which Asahi has the scale and global network to unlock.”

2 Sisters Disposes of Sandwich Business 2 Sisters Food Group, Britain's biggest food manufacturer and one of Europe's largest poultry processors, has completed the sale of its sandwich business to Samworth Brothers. The facility, located at Manton Wood, Nottinghamshire, produces a range of retailer chilled sandwiches, wraps and rolls.

The disposal is in line with 2 Sisters' decision to focus on strengthening its core operations. Ranjit Singh Boparan, president of Boparan Holdings the parent group of 2 Sisters, says: “It is significant deal and marks another positive step forward in the transformation of our business. It further strengthens our balance sheet and demonstrates we are following through with our promises and focusing on our key strengths.”

Ronald Kers, chief executive of 2 Sisters Food Group, adds: “This sale is another important step in our journey to become a streamlined and high perform-

FOOD & DRINK BUSINESS EUROPE, JANUARY/FEBRUARY 2019

ing business. We have much more to do but we are progressing well.”

Ranjit Singh Boparan, president of Boparan Holdings.

Dole completes the Sale of Nordic Salad Business Dole Food Company has completed the sale of Saba Fresh Cuts and Saba Fresh Cuts to BAMA International. Saba Fresh Cuts, with a production facility at Helsingborg in Sweden, and Saba Fresh Cuts, with a production facility at Espoo in Finland, are producers of washed and ready-to-eat salads. BAMA International is headquartered at Oslo in Norway.

The sale of Saba Fresh Cuts was a condition of the European Commission's approval of the acquisition by Total Produce, Europe's leading fresh produce company, of a 45% equity stake in Dole in July 2018.

Stock Spirits Group Acquires Distillerie Franciacorta Stock Spirits Group is acquiring Distillerie Franciacorta, one of the leading Italian producers of grappa, liqueurs and Franciacorta - a premium Italian sparkling wine that is produced solely in the Franciacorta region. Founded in 1901, Distillerie Franciacorta is owned by the Gozio family.

Stock Spirits is acquiring the entirety of Distillerie Franciacorta's spirits and liqueurs business, together with land for the construction of a new production facility. It will also acquire the prestigious

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M E E R R G G E E R R S S M Franciacorta wine brands, although all aspects of the wine manufacturing will be retained by the vendor.

As part of this transaction, Stock Spirits will also take a long-term lease of the historic Borgo San Vitale site, the distillery and visitor-centre that is an integral part of Distillerie Franciacorta's heritage. The purchase price is up to Eur23.5 million for the business with a further Eur3 million for the land, payable in cash in three tranches.

The grappa category is Italy's fourth largest spirits category, and the total premium price segments in which the Franciacorta brands are positioned grew by 5.0% in value from 2016 to 2017. The acquisition will mean that Stock Spirits will be the number one branded grappa business by value in the Italian off-trade.

Mirek Stachowicz, chief executive of Stock Spirits, comments: “This is our first step in pursuing in-market consolidation opportunities in Italy, and Distillerie Franciacorta will strengthen our position in what is a fragmented but highly attractive market for us. It should also be seen as a clear reflection of our willingness to undertake value-creating M&A as part of our four pillar growth strategy.”

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production of packaged milk in plastic bags/pouches and ghee.

Prabbat is also a leading supplier of dairy ingredients. The company owns two factories, including one of the largest sweetened condensed milk plants in India, and employs 1,239 people. It generated sales of Eur200 million in 2018. Lactalis Group currently operates 11 factories in India.

In Egypt, Lactalis has acquired Green Land Company from Americana Group. Green Land owns five factories in Egypt and employs 1,250 people producing mainly cheeses.

The move marks another stage in Lactalis Group's development of the Egyptian dairy market with its partner M. Halawa. The joint venture Lactalis-Halawa has existed since 1997.

Conagra Brands to Explore Strategic Alternatives For Gelit Conagra Brands, one of North America's leading branded food companies, is exploring strategic alternatives for its Italian frozen pasta business, Gelit, which is headquartered at Doganella di Ninfa in Italy. Gelit is a leading producer of authentic Italian frozen food and ready meals, primarily for private label customers. The business employs approximately 145 full-time employees, operates a standalone, state-of-the-art facility located in Doganella di Ninfa, and supplies products to a broad range of international customers.

Mirek Stachowicz, chief executive of Stock Spirits.

Further Global Expansion

by Lactalis Group Lactalis Group is expanding its presence in India and Egypt with two acquisitions. In India, the French dairy group is purchasing Prabhat, a dairy products company specialising in the

Hochland Takes a Stake in Greek Feta Producer Hochland, the German cheese

manufacturer, has purchased a 25% stake Greek Feta producer Greek Family Farm. Based in Almyros, Greek Family Farm has been providing Hochland with original Greek Feta since 2015. Greek Family Farm also produces Feta and goat's milk cheese for the European, US and Australian markets and trades in milk, sheep and animal feed. Both parties have agreed to keep the purchase price confidential.

Orkla Expands in Denmark Orkla, the leading branded consumer goods company in the Nordic region, has agreed to purchase a 90% stake in Easyfood, a Danish producer of bread-based convenience products for the out-of-home channel. The purchase price values Easyfood at DKr330 million (Eur44 million). The agreement is subject to the approval of the Danish competition authorities.

Established in 2000, Easyfood has a growing customer base

Lamb Weston Expands in Australia Lamb Weston Holdings has acquired Marvel Packers, a

frozen potato processor in Australia, for an undisclosed sum. Marvel operates frozen potato processing and storage facilities in Hallam, Victoria.

“Our purchase of Marvel is part of our strategy to strengthen our global capabilities and continue to drive growth both organically and through acquisitions,” says Tom Werner, president and chief executive of Lamb Weston Holdings.

“Marvel not only provides us with an opportunity to increase our position in Australia's 1.1 billion pound market with incountry production, it also creates new avenues to serve our customers.”

Including the newly-acquired Hallam facility, Lamb Weston owns and operates 16 processing facilities worldwide, and an additional 9 facilities in conjunction with its joint venture partners.

Diageo Sells Portfolio of Brands to Sazerac

that includes in-store bakeries, convenience stores, cafés, petrol stations and food service.

Easyfood had a turnover of DKr316.1 million in 2018, and normalised EBITDA of DKr33.7 million. While the company's turnover is mainly generated in Denmark, exports account for a growing share currently around 14%.

Orkla also recently purchased the Pama brand, a local brand offering consumers porridge rice in Denmark and Sweden, from PepsiCo for an undisclosed price. Pama had been a part of PepsiCo since its acquisition of The Quaker Oats Company in 2001.

FOOD & DRINK BUSINESS EUROPE, JANUARY/FEBRUARY 2019

Diageo has sold nineteen brands to Sazerac, the US-based alcoholic beverages company, for an aggregate consideration of $550 million. The net proceeds of approximately £340 million, after tax and transaction costs, will be returned to shareholders through a share repurchase.

The brands sold are Seagram's VO, Seagram's 83, Seagram's Five Star, Myers's, Parrot Bay, Romana Sambuca, Popov, Yukon Jack, Goldschlager, Stirrings, The Club, Scoresby, Black Haus, Peligroso, Relska, Grind, Piehole, Booth's and John Begg.

Ivan Menezes, chief executive of Diageo, says: “Diageo has a clear strategy to deliver consistent efficient growth and value creation for our shareholders.

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M E E R R G G E E R R S S M This includes a disciplined approach to allocating resources and capital to ensure we maximise returns over time.” He adds: “The disposal of these brands enables us to have even greater focus on the faster growing premium and above brands in the US spirits portfolio.”

Ivan Menezes, chief executive of Diageo.

Cherkizovo Group Buys 75% of Russian Meat Products Company Cherkizovo Group, the largest vertically integrated meat producer in Russia, has purchased 75% of St Petersburg-based Samson - Food Products, a group of companies offering meat products under such brands as Samson, Grillmania, Fileya and others. The acquisition will cost Cherkizovo RUB350 million (Eur4.5 million), with about RUB550 million in debt to be assumed on top. The final price will be based on SFP's performance in 2019.

The deal will strengthen Cherkizovo's position in St Petersburg and the NorthWestern Federal District (NWFD) - a region that the group has been closely focused on since 2017. The acquisition is in line with Cherkizovo's development strategy of expanding its branded portfolio of higher value-added products.

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Arla Foods Buys Branded Cheese Business From Mondeléz International

the terms of the agreement were not disclosed.

all the very best for the future with this great brand.”

European dairy co-operative Arla Foods has reached an agreement with US-based international confectionery, food, and beverage company Mondeléz International to acquire its processed cheese business in the Middle East region, which is currently licensed under the Kraft brand. The acquisition also gives Arla full ownership of a state-of-the-art cheese production site in Bahrain, which provides the opportunity to further expand Arla's branded cheese production in the region.

The Middle East and North Africa (MENA) is one of the key geographical regions in Arla's strategy, Good Growth 2020.

Since 2010 Arla has more than doubled its sales organically across the Middle East & North Africa (MENA), which is the company's largest market outside Europe, through strong positions in cheese under the Puck® brand, butter under the Lurpak® brand as well as milk powder and UHT milk under the Dano® and Arla® brands.

Europastry Broadens its Portfolio

Agrial Continues Strategic Expansion With German Dairy Acquisition

“This acquisition is a gamechanger for our MENA business. We have an established and growing business in the Middle East and know our consumers and customers well in this part of the world. As such, this deal is an excellent strategic fit for us as it enables us to both expand our branded presence in the cheese category and secure the local production capacity we have been looking for to continue to grow our business,” says Peder Tuborgh, chief executive of Arla Foods.

The disposal enables Mondeléz International to focus on faster-growing snacks categories, including its core Chocolate, Biscuits, and Gum & Candy offerings. The deal is expected to take effect by end of May 2019. Further details about

Europastry, a family-owned business specialising in frozen bread and patisserie products, has completed its purchase of Confeitaria Torres, a Portuguese bakery company. Based in Trofa near Porto, Confeitaria Torres supplies fresh and deep-frozen bakery and pastry products.

The deal further extends Europastry's presence in the Portuguese market, adding to its existing operation in Carregado.

The acquisition confirms Europastry's ambition to internationalise its business.

Edrington Disposes of Cutty Sark Scotch Whisky Scottish distiller Edrington has sold its Cutty Sark Scotch whisky brand to La MartiniquaiseBardinet, the second largest spirits group in France, for an undisclosed price. The disposal reflects Edrington's strategy of focusing investment to support the longterm growth of its premium brands including The Macallan, The Famous Grouse, Highland Park and The Glenrothes Scotch whiskies, and Brugal rum.

Ian Curle, chief executive of Edrington, says: “Cutty Sark is a great Scotch whisky and has been a worldwide whisky icon for the last 90 years. We are pleased to be transferring the brand to La Martiniquaise-Bardinet and know that it will thrive under their ownership. We wish them

Ian Curle, chief executive of Edrington.

FOOD & DRINK BUSINESS EUROPE, JANUARY/FEBRUARY 2019

Agrial, the French farming and food co-operative, is continuing its quest to create value for its dairy farmer members by acquiring German company Rotkappchen Peter Julich Group, a specialist in cow's and goat's milk cheeses. The acquisition of Rotkappchen Peter Julich Group, which owns three famous brands in Germany, furthers the growth strategy of Eurial, Agrial's dairy division.

According to Olivier Athimon, chief executive of Eurial: “This investment in Germany is directly in phase with our projects in Italy and Spain, bolstering our international development first and foremost with a stronger presence in Europe. Finding a partner who is present on the cow's and goat's cheese markets is a real advantage for Eurial's development in Germany.”

Parmalat Expanding in Canada With €1.1 Billion Deal Parmalat, the Italian dairy group, is acquiring Kraft Heinz Canada's division that produces and markets Kraft's natural cheese products, mainly under the Cracker Barrel, P'tit Quebec and aMOOza brands, for C$1.62 billion (Eur1.1 billion).

The business being acquired includes a production facility in Ingleside, Ontario, that employs about 400 people.

The transaction enhances Parmalat's portfolio in the 'natural' with high added value cheese segment of the strategic Canadian market. Parmalat will now be able to leverage the Cracker Barrel brand within the branded segment of the natural cheese segment, allowing it to complement its existing offering in Canada of Black Diamond branded natural cheese. The deal will also improve Parmalat's positioning throughout Canada, par-

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ticularly in Quebec, a region in which Parmalat currently has only limited penetration, and to other areas of the country in which the group is not present.

The acquisition is subject to approval from the Canadian Regulatory Authorities. Parmalat Group, which is listed on the Italian Stock Exchange, has been controlled by the Lactalis Group of France since 2011.

Tyson Foods Expands European and Thai Operations US-based Tyson Foods, which is one of the world's largest food companies and a global leader in protein, has agreed to acquire the Thai and European operations of BRF, the Brazilian meat group, for US$340 million. The purchase includes four processing facilities in Thailand, one processing facility in the Netherlands and one processing facility in the UK. The deal builds on Tyson's growth strategy to expand offerings of valueadded protein in global markets.

“The acquisition of these BRF facilities will help complement and strengthen our presence in Thailand, and provide new capabilities in Europe, enhancing our ability to serve growing global demand for value-added protein,” says Noel White, president and chief executive of Tyson Foods.

The vertically integrated poultry operations in Thailand include a feed mill, hatchery, breeder farms and contract growing operations supplying live birds for the four poultry processing facilities. These four plants produce a wide range of fresh and frozen, value-added raw and fully cooked poultry products including highly specialized cuts for retail and foodservice customers throughout Asia and other export markets, including Europe.

The processing locations in the Netherlands and the UK are supported by in-house innovation capabilities for developing further-processed chicken products for retail and foodservice customers throughout Europe.

Products are sold under GrabitsTM, Hot 'N' Kickin'Chicken®, Speedy Pollo® and the Sadia® brands, in addition to key customerowned brands.

Noel White, president and chief executive of Tyson Foods.

Burton's Biscuit Company Buys Thomas Fudge's Burton's Biscuit Company, which bakes some of the UK's best loved biscuits brands including Jammie Dodger, Maryland Cookie and Wagon Wheel, has completed the acquisition of premium sweet and savoury biscuit manufacturer, Dorset-based Thomas Fudge's from Livingbridge, one of the UK's leading mid-market private equity investors. The acquisition marks another important milestone in Burton's strategy of building partnerships and delivering growth within the biscuits category.

Nick Field, chief executive of Burton's Biscuit Co, says: “The bakery provides a hugely complementary production capability to Burton's own bakeries, extending into the more premium and artisanal end of the category with its branded, retailer brand and Marmite products baked under licence. We are excited about the opportunity to develop these three important pillars and look forward to working with our retail partners to drive growth through innovation and excitement in the category.”

The premium sector is one of the fastest-growing in the biscuit category as growing numbers of consumers are seeking indulgence delivered by provenance, high-quality ingredients and engaging textures.

FOOD & DRINK BUSINESS EUROPE, JANUARY/FEBRUARY 2019

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COVER STORY

DMK Group Opens €145 Million High-tech Baby Food Plant In line with its strategy to create added value and develop its branded business, DMK Group, Germany’s largest dairy co-operative, has opened a new high-tech baby food facility at Strückhausen.

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reated in May 2011 following the merger of Humana Milchindustrie and Nordmilch, DMK Group has invested Eur145 million to convert a former dairy factory at the Strückhausen site into one of the most cutting-edge baby food production facilities in Germany. The new plant, which incorporates the latest technology, high-quality infrastructure and energy-saving processes and equipment, will now serve as the base for DMK Group’s Humana premium baby food brand.

“The conversion has enabled us to fulfil the requirements for further strategic alignment between the DMK Group and the Humana brand. The investment will allow us to meet the requirements of state-of-the-art baby food production in the future too, both in terms of our own production capacity and our customers’ quality, sustainability and flexibility requirements,” explains Ingo Müller, chief executive of DMK Group.

DMK Group has invested €145 million to convert a former dairy factory at the Strückhausen site into one of the most cutting-edge baby food production facilities in Germany.

Stefan Eckert continues: “Since the establishment of the DMK Baby business unit in 2013, we have been pursuing this direction continuously and sustainably within the DMK Group. In total our baby food business represents Eur200 million of turnover. In the mid-term - over the next ten years - we want to double this.”

The success of this strategy to date is illustrated in the highly competitive Italian market, where DMK Group has now become the leader in special milks and infant milk formula with the Humana brand. All other baby milk segments are also showing continuous growth for DMK Group. The double-digit growth figures from the international markets also underline the success of the restructuring measures that have been recently introduced across the group.

Pictured at the opening of the new high-tech baby food facility at Strückhausen are (from left to right): Ingo Müller, chief executive of DMK Group, Christoph Hartz, Thomas Brückmann, Björn Thümler, Heinz Korte, chairman of the board of DMK Group, and Stefan Eckert, chief operating officer of DMK Baby.

Production of the myHumanaPack Another major development is the investment in new, innovative packaging – the myHumana Pack - which is produced in Strückhausen and tailored to meet mothers’ requirements. “This

When fully commissioned, the plant will be able to process up to 40 million kg of GM-free milk per year to produce baby milk formula of the highest powder quality for the German and international markets. DMK Group sources high-quality raw material from its own milk producers, which are located close to the plant.

Growth in Baby Food DMK Group is focusing on expanding its baby food business both domestically and globally. The German dairy company’s Humana brand is currently present in more than 60 markets, including Poland, Spain, Portugal, Italy, China, Russia and Dubai.

“Our activities focus on Western Europe, Central and Eastern Europe, GIS, GCC, Asia and the MENA region. There, we focus on Humana milk foods and on food supplements for mothers, babies and toddlers. Our infant food range caps off our product portfolio,” points out Stefan Eckert, chief operating officer of DMK Baby.

When fully commissioned, the new plant will be able to process up to 40 million kg of GM-free milk per year to produce baby milk formula of the highest powder quality for the German and international markets.

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DMK Group’s new, innovative packaging – the myHumana Pack - is produced in

products. For example, it has introduced skyr and ice cream from MILRAM for the first time in the chilled cabinets of major retail chains. Further innovations under the MILRAM brand included savoury sliceable cheese and buttermilk drinks. DMK Group is the only licensee currently producing Baileys ice cream in Germany.

Ingo Müller remarks: “In future, as part of an extensive Category Management programme for the German market, we will be able to offer a full range of products and services and a thorough grasp of customers and markets. We wish to use our brand business in a more targeted manner. We will boost our focus on our international business to create growth in relevant markets and channels.”

On the international front, the dairy company aims to pursue a strategy of ‘value added before growth’, focusing on selected core markets.

Strückhausen.

paves the way for further growth. Since October 2018, the myHumana Pack has been available for our Humana mothers on the shelves in Germany, Italy, Spain, Portugal and Poland. The feedback we have received has been beyond positive. I am therefore even more pleased that we can continue to get the new Humana brand home base in Strückhausen off to a flying start,” says Stefan Eckert.

The new baby food plant will also allow DMK Group to develop further market segments. “With our market orientation and the focus we have set, we have created the required conditions for achieving double-digit growth in the medium and long term,” adds Stefan Eckert.

Regional Development The Strückhausen plant currently employs 170 people but this number is expected to rise to 230 by 2020. “The investment in Strückhausen is also a clear commitment to the northwest region for us, where we are creating jobs for people in structurally weak, rural areas,” points out says Ingo Müller. “The DMK Group makes its contribution to the continued economic development of the region in terms of its plants in Strückhausen, Edewecht, Zeven and the administration location in Bremen, which overall provide more than 2,500 jobs.”

Employing around 7,700 people across over 20 locations in Germany and the Netherlands, and with annual sales of Eur5.5 billion, DMK Group is one of Europe’s leading dairy processors. It is also the fourth largest supplier to the German food retail industry.

In addition to baby food, DMK Group’s product portfolio encompasses cheese, dairy products and ingredients, ice cream, health products and special pet food.

Brands such as MILRAM, Oldenburger, Uniekaas and Humana have earned the trust of consumers at home and abroad, making the company an established player in its domestic markets and selected target markets around the globe.

Restructuring According to Ingo Müller, DMK Group is now starting to realise the benefits from a total restructuring of the business to reposition the dairy co-operative as a modern food manufacturer. It has been divided into six autonomous business units - Brand, Private Label, Industry, Ice Cream, Baby and International – under a new leadership team.

“We at DMK are in transition-mode. If we look at the constantly changing demand trends amongst consumers, DMK’s range strategy has not always been ideal.” Ingo Müller elaborates: “In future, we will be in a position to react to trends and consumer wishes in a better way. With an attractive range and customised services, we wish to establish ourselves in the medium- to long-term as a preferred, strong partner for trade and industry.”

The investment in the baby food business is a sign of this new approach and DMK Group’s other business units are also being focused to achieve future growth.

Product Innovation DMK Group has been busy expanding its range by launching new

Development Strategy “In the medium term, DMK Group sees itself as a company with a leading position and a strong product portfolio which is competing for success within the European market. This objective is synonymous with assuming a profitable position in the domestic market and having a local foothold with a regional image, excellent infrastructure and quality of supply and a relevant range,” comments Ingo Müller. “The domestic market is a significant mainstay, and this applies to production too. Business in the domestic market is supported through focused international activities and a significant export share. Overall we wish to ensure that we are a significant partner within the milk market.”

The Strückhausen plant currently employs 170 people but this number is expected to rise to 230 by 2020.

DMK Group is also changing its milk sourcing strategy in order to optimise its manufacturing base. It has entered joint ventures with international dairy co-operatives Arla Foods and Royal FrieslandCampina. DMK Group’s Nordhackstedt site in northern Germany is producing 35,000 tons of mozzarella cheese annually for Arla Foods. The whey from the cheese production is supplied to ArNoCo, a joint venture between the two companies, which produces whey protein and lactose at a neighbouring site and at Arla’s Denmark Protein site in western Denmark.

DMK Group recently signed a contract manufacturing agreement for mozzarella and yellow cheese production with Royal FrieslandCampina. Royal FrieslandCampina will supply the milk of its member dairy farmers to DMK Group’s production facilities at Hoogeveen in the Netherlands and Georgsmarienhütte in Germany.

“Every year, we process around 7 to 8 billion kilos of milk. The collaboration with Arla and FrieslandCampina is part of our raw milk plan,” Ingo Müller explains. “In future, our raw milk will come from several sources. First and foremost, we process our members’ milk and market our products. Secondly, we process milk within the scope of plant contract manufacturing agreements such as the agreement we have concluded with FrieslandCampina for Hoogeveen and with Arla. In this way, we will be in a position to utilise our plant structure optimally.” J

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I POULTRY

Cargill Invests £35 Million in Wolverhampton Factory as it Continues European Poultry Expansion Cargill, the US-based agri-food giant, is continuing to expand its European poultry business after recently announcing a £35 million investment to extend its factory in Wolverhampton and the acquisition of Konspol, one of Poland’s leading value-added food and fresh chicken companies. argill’s £35 million investment at its poultry plant at Wolverhampton entails the installation of a second production line and the creation of an additional 80 jobs.

The factory currently produces breaded and battered chicken for the food service sector.

“We have built a sustainable chicken supply chain with our trusted partners to provide our Wolverhampton site with whole chicken breast fillets to make breaded and battered products for our loyal foodservice customers,” says Jon Lauritzen, commercial director at Cargill. “Our further investment of £35 million will ensure we maintain our reputation as a ‘best in class’ facility.”

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Chris Langholz, president of Cargill Global Poultry.

UK Joint Venture The expansion of Cargill’s further processing facility in Wolverhampton follows the recent merging of the US-based group’s UK fresh chicken business with the fresh chicken, turkey and duck business of Faccenda Foods to form a standalone joint venture - Avara Foods. “We believe the two

organisations are complementary.

Combining into one entity allows us to build on our strengths, grow in the market and better serve our customers,” explains Chris Langholz, president of Cargill Global Poultry. “The venture will facilitate greater opportunities to innovate and deliver new

and exciting poultry products for consumers.”

50% owned by Cargill, Avara Foods employs approximately 6,000 people and operates a fully integrated supply chain, across agriculture, processing and distribution. Supplying chicken, turkey and duck to retailers, food service outlets and food manufacturers, Avara Foods is characterised by an emphasis on operational excellence and customer-focused partnerships. Avara Foods also supplies chicken to Cargill’s further processing plant in Wolverhampton, which is separate to the joint venture and remains part of Cargill’s European poultry business that also spans France, Russia, the Netherlands and Poland.

Chris Langholz believes that the UK is ahead of the rest of the world regarding trends in poultry consumption, and especially the way the market is consumerfocused. “The retailer has such a close relationship with the consumer in the UK, and

Cargill recently merged it UK fresh chicken business with the fresh chicken, turkey and duck Cargill’s £35 million investment at its poultry plant at Wolverhampton entails the installation of a second

business of Faccenda Foods to form a standalone

production line and the creation of an additional 80 jobs.

joint venture - Avara Foods.

FOOD & DRINK BUSINESS EUROPE, JANUARY/FEBRUARY 2019

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global poultry processing footprint to 14 countries. Cargill has been rapidly expanding its poultry interests in Europe, Asia and Latin America. It has no chicken operations in the US.

Cargill is investing heavily in its existing global poultry operations.

there’s a great back-and-forth between the two about requirements. Animal welfare, transparency, sustainability – in my view, the UK is a world leader in those areas,” he points out.

Global Business According to Chris Langholz, poultry will soon become the most consumed meat in the world. Consequently, Cargill is focusing on winning in this sector and is investing heavily in expanding its global poultry business. In addition to its activities in the UK, Cargill has also established joint ventures recently in Indonesia and the Philippines, and built new poultry plants in Nicaragua, the Philippines, Thailand and China. “Our vision is broad and not restricted to one region,” says Chris Langholz.

Indeed, Cargill has invested over $1 billion during the past two years to expand its global poultry operations. Its approach is to act globally but think locally.

Chris Langholz adds: “The needs of consumers are different around the world. A lot of agility is needed in our supply chain to meet these different needs. What’s common is that if you listen to the consumer and have good systems in place, you can leverage that around the world.”

He elaborates: “We’re very open to joint ventures, but it’s important to have the right partner that has the same vision. It’s something we’re very comfortable with.

Look to see more joint ventures and acquisitions, it’s navigating the local market that’s key and that’s why we look to have the right partners.”

Move into Poland The recent acquisition of Konspol’s food and fresh chicken operations for an undisclosed price marks the introduction of Cargill’s global protein business into the Polish market and strengthens the company’s global poultry footprint.

Konspol employs more than 1,700 people in Poland and operates a feed mill, five broiler farms and two processing complexes. The acquisition increases Cargill’s production capacity and proximity to existing 14

customers to offer an expanded product range.

“Konspol’s commitment to high-quality food and passion for innovation is the perfect fit for Cargill’s Global Poultry busi-

The recent acquisition of Konspol’s food and fresh chicken operations marks the introduction of Cargill’s global protein business into the Polish market.

ness. This acquisition allows us to better serve our customers through a diversified portfolio of value-added products,” explains Chris Langholz. “Konspol is a strong and established fresh chicken and value-added food company whose products are the preferred choice across Poland.”

The Polish acquisition extends Cargill’s

Continuing Global Expansion Cargill’s most recent poultry acquisition is in Colombia where it has purchased Campollo, one of the country’s leading makers of chicken and protein products.

The deal complements last year’s acquisition of Colombia-based Pollos El Bucanero, a leading retail-branded poultry business, and advances Cargill Global Poultry’s strategy to serve growing protein demand in emerging markets with worldclass poultry products.

Cargill is also investing heavily in its existing global poultry operations. For example, it has just announced investments of more than $70 million in Thailand over the next two years to meet the increasing global demand for poultry and seafood. The investment programme includes the implementation of new technology in the poultry supply chain, additional funds for the Technology Application Centre for research and development for the aquaculture industry, and the expansion of a cooked poultry facility in Nakornratchasima, in North-east Thailand. The poultry business, which exports to more than 28 countries around the world, accounts for nearly 80% of Cargill’s operations in Thailand.

“We work in Europe, Asia and Latin America,” says the president of Cargill Global Poultry. “We are growing rapidly, but see strong markets with great fundamentals in Latin America and Asia.”

Cargill’s global poultry business is part of the group’s Animal Nutrition & Protein segment. The Animal Nutrition & Protein business was the largest contributor to the US-based agribusiness and food group’s adjusted operating earnings last year. J

The Polish acquisition extends Cargill’s global poultry processing footprint to 14 countries.

FOOD & DRINK BUSINESS EUROPE, JANUARY/FEBRUARY 2019

I INNOVATION

Three Global Food and Drink Trends For 2019 Mintel, the world’s leading market intelligence agency, has announced three forward-looking trends which will lead the momentum of global food and drink innovation in 2019 and beyond. he three 2019 global food and drink trends identified by Mintel are: T • Evergreen Consumption: A circular view of sus-

entire product lifecycle. From farm to retailer to fork to bin and, ideally, to rebirth as a new plant, ingredient, product or package, this 360-degree approach will ensure resources are kept in use for as long as possible. The movement towards circularity as the new sustainability will require collaboration between suppliers, manufacturers, governments, nonprofits, retailers and consumers.

A seismic shift in how consumers think about plastic is underway, with bio-based packaging materials set to be a key component to the next generation of responsible packaging. In 2019 and beyond, sustainability efforts will include not only improving access to recycling, but incentivising consumers to recycle packaging and offering upcycled goods. At the same time, efforts to improve air pollution, support plant welfare, restore soil health and embrace regenerative agriculture will emerge as crucial elements of holistic sustainability programmes that are important to companies and

tainability that spans the entire product lifecycle requires action from suppliers to consumers.

• Through the Ages: Food and drink will build on today’s dialogue about wellness and transition into more solutions for healthy ageing.

• Elevated Convenience: To match the premium expectations of consumers in the on-demand age, convenience food and drink will get an upgrade.

Looking ahead, Jenny Zegler, associate director of Mintel Food and Drink, points out that issues of sustainability, health and wellness, and convenience will inspire formulation, packaging, marketing and more in the years to come: “In 2019, support of and demand for more corporate sustainability programmes will grow as consumers better Jenny Zegler, associate director of understand what’s required to get closer to achiev- Mintel Food and Drink. ing a truly circular food and drink economy. These sustainability efforts will include not only improving access to recy- consumers alike. cling, but creating products with ingredients that are grown in accordance to regenerative agriculture practices.”

Through the Ages She elaborates: “Expect to also see food and drink manufacturers Preparing oneself for a longer, healthier lifespan is particularly relelook to the beauty and personal care industry for inspiration for vant as consumers prioritise health and wellness as a holistic, proachealthy ageing product development. More food and drink will tive, and ongoing pursuit. Longer lifespans present significant address longevity-related health concerns, be marketed with posi- opportunities for food and drink manufacturers to take inspiration tive language that rejects terms like ‘anti-ageing’ for its negative from the beauty industry, which has successfully established a connotations, and appeal across ages. model for healthy ageing by designing proactive products that are “Finally, we predict the rising segment of consumers who are marketed with positive language to people of all ages. often on-the-go, yet want to spend more time at home will increase Specific to the world’s diverse senior populations, their needs can demand for upscale, ‘speed scratch’ solutions and restaurant-quali- be addressed through food and drink for medical purposes, as well ty, ready-to-consume products. As meal kits and foodservice- as products designed for prevention, with formulations that are inspired beverages lead the way, there will also be more opportuni- nutritious, flavourful, and easy to consume. Yet as humans are livties for brands to develop healthy, flavourful, customisable, and ing longer, more food and drink can be formulated to address conquick premium convenience products for breakfast, lunch, dinner, cerns from people of all ages about bone, joint, brain and eye snacks and dessert occasions.” health as well as other age-related health concerns.

Evergreen Consumption The definition of sustainability is extending to encompass the

Elevated Convenience From breakfast to dinner, a new generation of modern convenience food and drink is emerging as manufacturers respond to rising healthy eating priorities, quests for foodie-inspired flavours, interests in personalisation and competition from speedy delivery services. Looking ahead, a new wave of shortcuts will be available, offering new conveniences such as the expansion of individual meal kits sold at retail, foodservice-inspired packaged beverages, and a new generation of prepared meals, sides, and sauces that emulate the flavours and formats of restaurant meals.

Advancements in technology also will elevate the expectations of convenient food and drink options for consumers moving forward, from planning to shopping to preparation. Interest in premium convenience will not be limited to dinnertime, creating opportunities for every meal, snack, and beverage break. J

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I NUTRACEUTICALS

Vitafoods Europe 2019 Set to Close the Loop on a Greener Future For the Global Nutraceutical Industry Vitafoods Europe 2019 (7-9 May, Palexpo, Geneva) will this year explore the collaboration required to shape a more sustainable future for the nutraceutical industry. his follows the growing popularity of plant-based ingredients, as well as the demand for more responsible farming methods, and the unprecedented backlash against packaging over recent years.

The focus of the event comes as consumer demand means manufacturers are seeking a balance between naturally sourced ingredients and sustainably produced nutraceuticals, through the development of innovative new products, processes and packaging. The need for greater supply chain transparency has also contributed to an increased focus on the role of contract manufacturing, presenting an opportunity for these businesses to set the standard for sourcing practices and quality. Vitafoods has a strong commitment to sustainability.

T

surrounding the term and better understand the broader picture of our industry, as well as bring to light the passion and insight that is driving the latest science and innovation. Ultimately, a more unified vision of nutraceuticals will create a more compelling and credible appeal to today’s savvy consumer.”

Chris Lee, Managing Director, Global Health and Nutrition Network, Europe, at Informa Exhibitions, explains: “The move towards true circularity requires a monumental shift across the entire nutraceutical product lifecycle – from ingredient to shelf – and can only be made possible by collaboration across the entire supply chain. Our goal with Vitafoods Europe 2019 is to get the industry talking to understand how we can create a sustainable future, as well as to inspire the nutraceutical community with trends, insights and solutions that support market-leading product development and business growth.”

Vitafoods Education Programme Running alongside the exhibition will be Vitafoods Education Programme, which will give attendees the opportunity to learn from and network with the world’s leading nutraceutical, supplement and functional food industry experts, as they discuss topics including personalised nutrition, sustainability, contract manufacturing and technological innovation. The full programme will be announced in the coming weeks. The three-day event will also feature a series of popular interactive events including innovation tours, a tasting centre, a new ingredients zone and a distributor matchmaking service.

To register for this year’s Vitafoods Education Programme, please visit: www.vitafoods.eu.com J

What Does Nutraceutical Mean to You? This year’s show will also be asking visitors and exhibitors to consider ‘what does nutraceutical mean to you?’. In a market where personalisation, digital technologies and alternative foods are on the rise, the definition of nutraceutical is evolving. As the meeting point for the European nutraceutical community, Vitafoods Europe will provide an engaging platform for visitors to discuss and debate the meaning of nutraceuticals – now and in the future.

On this, Chris Lee adds: “By facilitating the debate around the meaning of nutraceuticals, we’re hoping to dispel the confusion 16

FOOD & DRINK BUSINESS EUROPE, JANUARY/FEBRUARY 2019

I FOODSERVICE

Increase in Social Media Sharing Driving Shift in Beverage Trends Social media has changed the way we eat and drink with consumers expecting every dish and beverage to be #Instaworthy. s part of its identification of future beverage trends, Kerry Foodservice has commissioned proprietary research to understand the evolution of beverage trends globally. The study shows that social sharing is now impacting the progression of beverage trends through menus, and these insights can help the industry identify future beverage trends.

Not only is the beverage market highly competitive but consumers are increasingly educated, interested and adventurous which has driven a need for operators to constantly innovate and create stand-out products.

The research, conducted by Initiative on behalf of Kerry Foodservice, includes a study of key beverage influencers and analysis of trending keywords. The research reveals the trends which are expected to influence the beverage market in the coming year. Furthermore, it demonstrates that not only is the beverage market highly competitive, but consumers are also increasingly educated, interested and adventurous, driving a need for operators to constantly innovate and create stand-out products.

A

Chilled Coffee The coffee market is constantly evolving and in 2010 as coffee fans looked for new ways to enjoy their caffeine hit, the espresso tonic began to gain traction originating in Australia, where many beverage trends begin. Since then the trend has moved westward and has seen a peak of activity in the last twelve months. Research shows 30% of coffee consumers now seek chilled coffee drinks as an alternative to carbonated

Kerry Ginger Cold Brew Lemonade.

soft drinks[1]. Online searches for Espresso Tonic have been steadily growing over recent years and nearly 9,000 social posts have been shared showing the growth in popularity of the beverage, at a time when a significant number of consumers are searching for an alternative to soft drinks.

Caffeine-free With many consumers looking to cut back their caffeine consumption and 25% of consumers interested in cafKerry Green Tea, Pomegranate & Raspberry Cooler. feine-free alternatives a trend has emerged of coffee alternatives such as beet- beverages is growing it is much slower than root latte, matcha latte, and turmeric latte. other beverage trends.

With 33% of UK coffee consumers interKarl Buiks, VP of Marketing, Foodservice ested in purchasing hot drinks with health- & Strategic Planning at Kerry Europe & boosting benefits these caffeine-free alterna- Russia, comments: “Our research and tives tap into the growing trend for natural analysis of social sharing has shown a numingredients with added health benefits. ber of elements are impacting the progres[2]Analysis of online keywords shows sion of beverage trends. In an era where Matcha Latte has seen significant and sus- consumers are constantly sharing their contained growth since originating in tent with the world it is important that Singapore with a steady increase in searches products look as good as they taste, so the for Beetroot, Turmeric and Charcoal Latte visual appeal of products is now more also, all of which originated in Australia. As important than ever. Consumers also well as great taste, consumers are now look- expect added benefits from their drinks, ing for foods and beverages that looks good they want beverages that deliver benefits too - #colourfullattes such as beetroot, beyond hydration, and caffeine or alcoholmatcha, turmeric and charcoal have seen free alternatives. Beverage is becoming an over 200,000 Instagram posts worldwide in increasingly integral part of all foodservice the last 12 months, and this has grown by outlets and Kerry’s in-depth understanding 24% in the last 6 months. of beverage trends means we have the expertise to work with customers on soluHealth tions that cater to a variety of lifestyles and Healthier lifestyles is a growing trend which need-states. sees no sign of slowing down and aspiraAs social sharing is the driving force tions for healthy lifestyles are driving con- behind many beverage trends, analysis of sumers towards more natural ingredients. influencers and keywords can help predict Plant-based diets have become these trends as they progress across geoincreasingly popular with the trend graphic regions. Addressing this everfor veganism quadrupling in the 5 changing market is an opportunity but also years between 2012 and 2017. a challenge in the foodservice industry.

Research shows 29% of UK adults Kerry Foodservice offers solutions for foodalso showed concerns for the high service operators across channels, leading levels of sugar in bottled ready-to- with insights to help customers create innodrink cold teas; botanical beverages vative, stand-out products that respond to can help provide a healthier alterna- changing consumer demands in the fasttive to sugar-laden iced-teas whilst paced food and beverage market. delivering the nutrients and function- [1] Mintel, Coffee UK, September 2018 al benefits of plant-based ingredi- [2] Mintel Coffee Shops UK December 2018 ents.[3] Analysis of Google Trends [3] Mintel, Tea and Other Hot Drinks, UK, shows that while interest in botanical July 2018 J

FOOD & DRINK BUSINESS EUROPE, JANUARY/FEBRUARY 2019

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I FROZEN FOOD

Global Growth at Ardo Group Following a period of rapid expansion and heavy investment in new technology and product innovation, Ardo Group, the European leader in fresh frozen vegetables, herbs and fruit, has become a €1 billion turnover business and has now entered the North American market.

H

eadquartered at Ardooie in Belgium, the family-owned company currently employs about 3,800 people across its global operations. Ardo Group grows, freezes and sells its extensive range of fresh-frozen vegetables, herbs, fruit, potatoes, rice and pasta to the retail, food service and food manufacturing channels in more than 60 markets worldwide.

Operating 21 production, packing and distribution sites, which are strategically located in Europe’s most fertile crop growing regions, Ardo Group controls the entire production chain, from the selection of seed to final delivery to customers. By locating its production sites close to where the crops are grown, Ardo Group can ensure that only minutes are lost between harvest and locking in the product’s natural goodness in the company’s freezing units.

“Frozen products are at least as good and certainly cheaper than fresh products. But many consumers are not yet aware of it,” points out Jan Haspeslagh, managing director of Ardo Group. “Frozen vegetables contain many more vitamins and reduce waste for the consumer since they are usually cut and prepared.” He continues: “From a purely rational point of view, frozen is the best choice.

Frozen vegetables allow you to vary your diet a lot because you are not tied to the supply of the moment.”

Innovation and sustainability are central to the Belgian group’s expansion strategy. In response to changing consumer trends, Ardo Group develops products that are natural, flavoursome, nutritious, healthy and user-friendly but are also sustainable in terms of the growing, production, packing and logistics processes employed by the company.

Investment To continue to offer consumers an even broader and higher quality product range, Ardo Group has been investing in new technology and launching new production lines at a number of its sites. For instance, the company recently opened a new Eur32 million distribution centre at Gourin in France and invested Eur18 million in a new frying line at Violaines, also in France.

The new fully automated distribution centre at Gourin can store 32,000 pallets and energy consumption at the new facility has been reduced by a quarter compared to a standard frozen storage building. Ardo Group has also installed a new Eur6 million water treatment station at Gourin that incorporates the latest sustainable technologies. Part of the Ardo Group since 1995, Ardo Gourin contributes an annual turnover of Eur100 million to the group total of Eur1 billion.

In response to growing consumer demand for fruit and vegetables as well as vegetarian, vegan and plant-based products, Ardo Group has also been investing in its production facilities in Belgium, France and Spain. This has entailed expanding packing lines to cover a greater diversity of packaging such as doypack, semi doypack, blockbottom, shelf-ready, zip and mixed carton. To provide consumers with a broader variety of products, Ardo Group has been expanding its production lines. For example, it has installed a line for ‘foglia’ spinach at Ardo Geer in Belgium; increased capacity of a sweetcorn line at Ardo Saint-Sever in France; introduced a portion line for vegetable purée in Ardo Gourin, also in France; and expanded capacity for pepper, tomato and broccoli products at Ardo Benimodo in Spain.

Global Expansion The global market for frozen vegetables, fruit and herbs is roughly divided equally between three regions - Europe, North America and the rest of the world. Having been the leading player in Europe for the past 40 years, Ardo Group is now focused on expanding further afield.

It recently purchased a majority stake in VLM Foods, a wellestablished supplier of processed food in North America.

Headquartered in Montreal, Canada, the now renamed Ardo VLM has sales of about Eur129 million. The acquisition also included a controlling stake in Compania Frutera La Paz, the largest frozen pineapple producer in Costa Rica.

“Being the European leader in fresh frozen vegetables, herbs and fruit, Ardo offers a broad product range, a thorough agricultural knowledge, a technical manufacturing competence, as well as professional product innovation capabilities,” explains Jan Haspeslagh.

“VLM Foods, on the other hand, has proven its professional mar-

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and inspire Ardo Group’s innovation activities. “There is a clear demand for high-carbohydrate alternatives - cauliflower-based rice is the answer. We innovate by introducing new vegetables on the market - paksoi, sweet potato, seaweed, soybeans, quinoa and cabbage.”

The Ardo Group managing director elaborates: “We also make fries from different vegetables - carrots, parsnips, beets or sweet potatoes. It’s a good way to eat vegetables. What matters is to continue to surprise the consumer. We have also launched new fashionable fruits, such as blueberries, mangoes and more. The consumer is less tempted by the great classics, apples or pears.” ket knowledge and its dynamic business model. This combination sets the scene for building the ideal platform to supply high quality, sustainable and value added products into the North American market.”

The deal has also broadened Ardo Group’s fresh frozen fruit product range and the company is now distributing frozen pineapples from Costa Rica in Europe.

“We are excellently positioned in the European market, which accounts for one third of global consumption. From now on, we have access to a market that weighs the same weight, a third of world consumption. But there is another interest - most new trends are born in the United States before crossing the Atlantic,” he says.

Further Acquisitions Following the VLM Foods purchase, will Ardo Group be seeking further acquisitions? “No, it’s not on the agenda,” Jan Haspeslagh responds. “We must first focus on this new market. There is therefore no urgency to consider others. Both in terms of technology and size, European frozen food companies are at the top. We are very satisfied with what we have today.” J

New Market Trends One such emerging trend is bio, which is much more developed in the US than in Europe, where it is starting to gain traction.

Although it currently represents only 4% of Ardo Group’s turnover, Jan Haspeslagh expects it to climb to 15% within five years.

He anticipates that other US market trends will cross the Atlantic

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FOOD & DRINK BUSINESS EUROPE, JANUARY/FEBRUARY 2019

I READY MEALS

Compact Dynamic Accumulation of Ready Meals ne of Denmark’s leading food manufacO turers is increasing its efficiency by installing an AmbaFlex AccuVeyor® AVX Dynamic accumulation system. This overcomes any slowdowns at the downstream packer as the AccuVeyor® can accumulate several minutes of frozen ready meal trays from the spiral freezer. The freezer can keep running without causing any slowdowns, while the packer catches up later when run-

ning at higher speed. The result is much higher line efficiency and consistent meal quality.

The AccuVeyor® spiral accumulator actually has a double function. Besides accumulation, it also bridges the 3 meter height difference between the high end of the spiral freezer and the packer. So it pro-

vides both 90 meters of accumulation belt length and loweration for a footprint of only 2m square. A space saving, simple and effective solution that has helped the local integrator specialist in packing systems to deliver a solution to be proud of.

The AccuVeyor® AVx is a proven concept patented by AmbaFlex some years ago.

It consists of multiple, parallel, individually driven, spiral tracks. Each track can be filled and emptied by a stream of ready meals as selected by a linear switch. So first lane one is filled, then lane two, etc. To maintain the FIFO process, the tracks are emptied in a similar order and then merged together to go on to the packer. For more information, visit http://www.ambaflex.com/products/accuveyor-avx Unlike other accumulation systems available for primary packing, the AccuVeyor® AVx uniquely features: FIFO handling, pressure-less and contactless accumulation, space saving spiral configurations, up to 8 parallel tracks, and up to hundreds of meters of accumulation as required. One more proof of AmbaFlex’s leading position in Spiral Conveyor Solutions! J

Industrial Cooling Solutions From SKT ounded in 1968, the family owned comF pany SKT is a major supplier of industrial cooling installations, with a continuous focus on energy efficiency and productivity.

Important investments in R&D and engineering keep SKT at the technological top.

SKT can offer the frozen food industry a package of both freezing tunnel(s) and engine room(s), and are able to deliver this throughout Europe. SKT also cool warehouses all over Europe and deliver cooling solutions to a wide range of industrial processes.

An impressive stock of spare-parts and a 24/7 service availability guarantee SKT’s customers continuity in their production process.

SKT’s partner Datapolis ensures the automation of the project, and a remote control makes it possible to solve problems from SKT’s home office in Ypres (Belgium). SKT’s renewed website www.skt.be offers a clear look into the company’s activities and some useful information. J

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I INFANT FORMULA

GEA Building the Largest Infant Formula Plant in China September 2018, GEA secured an order Iinnfrom the Shijiazhuang Junlebao Dairy Co China to supply the country’s largest spray dryer for the manufacture of infant milk formula (IMF), with a planned production capacity of six tons per hour. The project has already kicked-off, with commercial production scheduled in the second quarter of 2020.

Founded in 1995, Junlebao achieved sustained and rapid growth over the years and today is the largest dairy processing company in the Hebei Province and the fourth largest dairy processing company in China.

Well known for its liquid milk products, eg yogurt, lactobacillus beverages and UHT milk, it entered the infant formula milk powder market in 2017. In 2016, GEA provided already the whole production line technology and plant for infant formula milk powder for the Junlebao factory located in Junyuan.

The new plant, which is being built adjacent to the one completed in 2016, is a turnkey project for GEA, which includes supplying wet mixing, evaporation, drying and downstream powder handling. GEA is also responsible for the plant design, project execution, installation & commissioning and automation. Central to the plant will be the GEA MSD®-1600 multi-stage spray dryer, one of the world’s most advanced dryers – combining spray and fluid-bed drying in a three-stage drying process. The GEA MSD® drying tower produces formula powder products exactly

to customer specifications and achieves an excellent agglomeration effect.

Junlebao chose GEA for this major project given the companies had worked together in 2016 on a project with a similar scope and were extremely satisfied with GEA’s performance on the project and subsequently with the capacity and operational stability of the plant and the world-class quality of the end products.

Leon Han, Head of Dairy Sales – Greater China at GEA, was delighted to announce the new order. “We’ve worked very closely with Junlebao for years and it has been a real pleasure to see the success the plant we built for the company two years ago has had,” he says. “The new plant will be the largest of its kind in China and we are delighted to be working with Junlebao again on this exciting project.”

“During the building of the 2016 plant

we developed a very strong working relationship with GEA here in China. For this reason, GEA was the chosen partner for the new plant and we’re confident the project will be a success,” confirms a Junlebao Dairy spokesperson.

GEA has many years of experience in IMF production, bringing together its expertise and market-leading technology to help dairy processors with the equipment of their production lines. GEA plants are trusted worldwide, achieving high product quality, maximum efficiency, productivity and environmental sustainability. On-going support is provided by GEA’s global network, including its inhouse test facilities where customers can develop and refine processes and products ahead of full production, to help bring new products to market quickly and profitably. J

I HIGH PRESSURE PROCESSING

Deli 24 Doubles HPP Capacity he UK’s largest provider of High T Pressure Processing (HPP) services to the food industry has announced an investment programme that has doubled the company’s processing capacity. Deli 24 is based in Milton Keynes in the UK and has made a £2 million investment in a new 420-litre HPP machine from Hiperbaric to operate alongside the company’s existing 420-litre and 135-litre machines. The new machine came on-stream in December 2018, after several weeks of installation, commissioning and testing at Deli 24’s 5,400 square metre purpose-built processing facility at the heart of the UK’s motorway network.

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HPP (or Pascalisation as it is sometimes known) is based on a concept first found to be beneficial in extending food shelf life in the 1890’s but it has only been able to develop on an industrial scale in the last

20 years or so. The technology relies on the effect that ultra-high-pressure water surrounding the food product has on the cell wall structure of living organisms.

HPP processing results in the inactivation of food spoilage organisms and pathogens whilst flavour and nutrition remain unaffected, enabling production of premium quality, safer, more natural products. The water pressure applied is up to 87,000 psi (6,000 Bar), the equivalent of being 60 km under the sea and with the earth’s deepest ocean trench being a mere 11km, it is understandable that living things struggle to survive such processing conditions. J

FOOD & DRINK BUSINESS EUROPE, JANUARY/FEBRUARY 2019

I EVENT

Hundreds of New Food and Drink Products to Launch at IFE 2019 Many new and exciting products are set to launch during the 21st International Food & Drink Event (IFE 2019), taking place at ExCeL London on 17-20 March.

From next generation water to vegan friendly snacks and the latest product launches featuring global influences, the biennial event is a must-attend for buyers and suppliers looking to explore a taste of tomorrow.

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he event will feature 1,350 exhibitors and promises to be a celebration of global and cutting-edge food and drink manufacturers; many of whom will be showcasing the latest innovations and setting the next big trends in the industry.

Below is just a selection of exciting product announcements expected at the event.

Jelley’s Distilleries First time exhibitors, Jelley’s Distilleries, will be launching its new Pomegranate & Rosemary Vodka and Grain/Straight Vodka.

Using premium, organically-grown grain, Jelley’s lovingly distils its award-winning vodka to maximise the natural flavours of the English countryside. Visitors can expect to sample the new products and learn how to create tantalising cocktails via live mixology demonstrations at stand N2277.

EauLab EauLab is a hot new challenger brand aiming to disrupt and re-shape the bottled water category. With its Intelligent Drinks Systems™, EauLab extracts and utilises the botanical power of plant-based ingredientsto offer a more natural, truer, purer way to drink water. This next generation water also comes in recyclable aluminium cans to help reduce the amount of plastic entering the ocean.

Native Snacks This new line of savoury, popped lotus seeds is a pioneering snack which is entering the rapidly growing health and nutrition sector.

Native Snacks is launching at IFE 2019 with a mission to create new and exciting plantbased snacks from around the world. Three flavours of the vegan friendly alternatives to crisps and popcorn will be available to try on stand N2652 – Jalapeño & Kaffir Lime, Pink

Salt & Black Pepper and Cheesy flavour. The brand’s ambition is to develop healthy snack products that have a long-lasting social impact and is working in partnership with the Bihar Development Foundation to donate a percentage of its sales to support health camps in Bihar, India.

Amboora This authentic and innovative Moroccan food brand will be using IFE 2019 as a platform to launch to the market.

Amboora will showcase a range of North African tagine cooking sauces with flavours including Moroccan Preserved Lemon Tagine Sauce, Moroccan Fragrant Tagine Sauce, Moroccan Shakshuka Sauce and Moroccan Fish Tagine Sauce. Visitors will be able to taste the sauces and watch mouth-watering demonstrations on stand N2670.

Buttermilk The Cornish artisan confectioner will be launching its newest snack bar – an all butter bar of crumbly caramel, sea salt fudge enrobed in Belgian milk chocolate. The Buttermilk bars will be available across the UK, making them the perfect on-the-go treat.

Focusing on sustainable packaging, the bars are wrapped in a compostable cellulose wrapper which decomposes within weeks. Other new products include caramelised cacao nib Easter eggs and chocolate covered caramel sea salt fudge, all available to taste on stand N2964.

Attendees are encouraged to register to attend now to start planning their trip to IFE 2019, where they will discover emerging trends; meet with thousands of international, future-focused brands; and hear inspiring and thought-provoking talks from key figures across the food and drink industry. For more information on IFE 2019 and to register for free, please visit www.ife.co.uk. J

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I TRAY SEALING

Proseal GT1s Tray Sealers Give One Heck of a Boost to Sausage Maker he high speed and low maintenance of three Proseal GT1s T tray sealers are providing Heck Foods with increased efficiency in its factory operations as well as better quality packaging for its sausage and burger products. The tray sealers deliver a fast and reliable sealing operation, running for 12 hours a day and at a speed of around 60 packs per minute.

ried out in around two minutes. Quick-change conveyor belts and an auto-lock film reel holder also reduce downtime.

“Maximising throughput is vital to the efficiency of our operation and the Proseal machines are helping us to achieve this,” concludes Andrew Keeble. “On top of everything else, the aftersales support we have received from Proseal has been the best of anyone we work with. We are also looking at different pack formats, and Proseal are working with our tray manufacturers on this.”

Based in Kirklington in North Yorkshire, Heck Foods is run by the Keebles family and has now passed down to the family's second generation. The independent company prides itself on delivering farmers' market quality sausages to a wider market. J

The top sealed trays have replaced Heck Foods' previous shrink-wrapped packaging, ensuring the company's products are now better protected, more effectively presented, and more convenient for both retailers and customers. Top sealed trays offer a stronger pack format than shrink wrap, providing additional protection by being fully, hermetically sealed and ensuring the products are displayed to their best advantage by using a stretch film that also allows vertical display.

“The three Proseal tray sealers are very reliable and their seals are quality,” comments Andrew Keeble at Heck Foods. “They've massively improved our operation by optimising our run rates no surprise as we've bought Proseal machines in the past and know their good reputation is justified.”

The GT1s machines are installed on three lines in the Heck Foods factory, with two machines packing sausages and one packing burgers. Proseal's ProMotion system maximises throughput with its following motion and intelligent buffering technology that enables trays to feed continuously into the sealer without stopping. The machine's I-Film technology meanwhile ensures effective monitoring of the film diameter for high-speed printing.

Particularly important for food markets such as sausages and burgers, Proseal's unique Eseal® technology provides high quality seal reliability. At the same time, it delivers a 92% reduction in energy usage, which offers valuable cost savings and sustainability benefits.

Heck's operations are further enhanced by Proseal's 'Auto Tool' connection system, which enables tool changes to be car24

FOOD & DRINK BUSINESS EUROPE, JANUARY/FEBRUARY 2019

I EVENT

Sustainability in the Food and Drink Industry Takes Centre Stage at Packaging Innovations 2019 ackaging Innovations, Empack and P Label&Print will return to Birmingham’s NEC, for the 14th edition of the show, on 27 and 28 February 2019.

As the UK’s largest packaging show, and the only one that caters to the whole of the packaging supply chain, there will be plenty on offer for visitors from the food and drink industry to immerse themselves in.

The packed show floor, which also includes Contract Pack, Ecopack and Industrial Pack, will host over 300 suppliers, boasting the newest innovations and concepts, plus a free-to-attend seminar programme which will welcome global brands including Coca-Cola, Marks & Spencer, Innocent Drinks and Iceland.

Exhibitors on Show The subject of sustainability is still high on the media agenda and will also be a key focus on the show floor, with a host of suppliers launching new products and services aimed at developing a more sustainable food and drink industry. For example, Scandolara Eco will be launching its new PE materials for an environmentally conscious choice of flexible primary packaging.

The range includes Green HEART, which is made with recycled PE to save up to 40% of virgin materials, and PURE Green, an alternative to Braskem material which is made from sugar cane to remove the oil from plastic.

Meyer Seals will be showcasing its four latest innovations, three of which have been designed for use throughout the drinks industry. The ALKOflex™ tab - a revolutionary induction seal with a consumer-preferred large aluminium-free tab that is intuitive to open will be on-stand. Its

ALKOseal™ pierce ‘n’ peel - a unique seal with laser perforations and unlimited clean removal properties. Plus, ALKOvin™ active, designed to preserve an unopened bottle of wine’s precious aroma by binding and deactivating VSCs. Terphane will display its latest innovation, Sealphane®, which has been developed for consumer convenience as no cutting tool is required to open a package. The new easy open line has a self-venting effect that acts as a cover ready to release steam without the need for extra holes, or a lid.

The new innovation also increases the shelf life of salads and fresh fruits whilst also improving the ease of use for the consumer.

Item Products will be using Packaging Innovations 2019 to launch its exclusive new partnership with carton closures specialist, Box Latch™. This collaborative product enables corrugated packaging to be re-used through the uniquely designed, simple closure system - an alternative to tape.

Ampacet will be displaying its new sustainable product, FauxFoil™, an environmentally-conscious alternative to conventional aluminium foil and other metallised films used in flexible structures.

Also on show will be Krehalon’s latest additions to its bespoke circular economy packaging solutions for the fresh food

industry. The new additions utilise mono film structures to aid recyclability and meet environmental concerns.

Croxsons will be launching their new 200ml mixer bottle at the show. The bottles apply enhanced design features for improved shelf presence and are targeted at the adult soft drink market.

The Label Makers will be using the show to present a selection of new label innovations including the recent award-winning reverse printed back label it created for Portobello Road Navy Gin. Show Content In addition to the activity on the show floor, Packaging Innovations will also be hosting a robust, free-to-attend, CPD accredited seminar programme set across five theatres. The Keynote Stage will present dedicated forums for the food and drink industries, as well as retail, pharma, beauty and ecommerce. Speakers set to take to the stage at the Food and Drinks Forums include Oliver Revill, Gousto’s senior Buying Manager; David Brooks, Managing Director at Percol, and Romina Mariano, Global Senior Brand Manager at Kahlúa.

Sustainability will also be the key focus of the Ecopack Stage as it hosts the highlyanticipated return of the Big Plastics

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Debate. Following its debut at the 2018 show, the debate will welcome industry experts to discuss the innovative plasticalternatives of the future. The Ecopack Stage will also feature seminars highlighting how the industry can source more recyclable materials, reduce waste and find more energy efficient solutions.

Headline speaker Hans van Bochove, Vice President European Public Affairs at Coca-Cola European Partners, will focus on how brands can tackle singleuse plastics as he discusses Coca-Cola’s perspective on the issue and the company’s plans to action change.

Kevin Vyse, Marks & Spencer’s Senior Packaging Technologist and Circular Economy Lead will also take to the Ecopack Stage to explore how companies can adapt to a circular economy mindset and how packaging professionals can make the most of virgin plastics.

Sustainability in the food and drink industry will also be in the spotlight at the Plastic Free Aisle, hosted by A Plastic Planet, which launched the first ever plastic-free supermarket aisle in the

Netherlands in February 2018. The mustsee spectacle will showcase the latest and most innovative food and beverage packaging solutions, all designed to ‘turn off the plastic tap’. The tangible plastic-free super-

market aisle will be stocked full of cuttingedge packaging made from biomaterials designed to be put in the same composting bin as food waste, unlike traditional plastic.

New for 2019, the brand-new Innovation Zone will create a focal point for the headline focus of the show – innovation. The new zone, which will host the

Innovation Stage, has been designed to offer visitors cross-industry inspiration by allowing them to learn about principals which can be applied to their packaging as the industry continues to develop and evolve. The Innovation Stage will welcome a panel discussion on the second day of the show which will explore connected packaging solutions that utilise AR and VR technology.

This new zone will also feature the Start-Up Area, designed to give a platform to future packaging designers.

Plus, the Innovation Showcase, which will provide further inspiration to packaging professionals in the food and drink industry as it unveils the ten most innovative products found on the show floor. These include the world’s first hermetically sealed carton food tray from Rapid Action Packaging and the M-lock from Firstan Limited, developed as a tamper evident mechanism that removes the need for further processing.

To register for the event, please visit www.easyfairs.com/PIUK or contact the show team on +44 (0)20 8843 8800 or PackagingUK@easyfairs.com. J

I CAPS

Müller Rolls Out ‘Stealth’ Milk Caps üller, Britain’s leading producer of branded and private label fresh milk, M cream, butter and ingredients, is rolling out a new lightweight recyclable milk cap, which uses 13% less plastic material. The innovative solution allows the business to remove 300 tonnes of plastic every year, the equivalent weight of 231 million ‘stealth’ milk caps.

The dairy company has worked with PACCOR for the last 18 months to design, trial and rollout the new compression mould caps. Having successfully completed various trials across Müller’s network of state-of-the-art dairies throughout 2018, all of Müller’s branded and private label fresh milk products will include the new lighter cap, which weighs just 1.3g, from February 2019.

As Müller continues to drive down its plastic use, the dairy company has already completed various multi-million pound acquisitions throughout the UK that allows the business to manufacture its own fresh milk bottles in the UK. Müller’s HDPE fresh milk bottles, used for all branded and private label fresh milk products, are already 100% recyclable and the business is aiming to 26

increase the use of recycled plastic in its bottles to a target of 50% by 2020.

Alongside working with suppliers like PACCOR, Müller is using the newly acquired assets to continue pursuing innovative packaging solutions, working in partnership with its customers.

While the industry debates the future sustainability of the fresh milk processing sector, the new caps form part of Müller’s overall plan to create a profitable, pro-

gressive and efficient fresh milk business in Britain, with new capabilities to make the next generation of fresh milk, cream and flavoured milk products.

Patrick Müller, CEO of Müller Milk & Ingredients, says: “We’re clear about the need to reduce our use of plastic, and we have removed 10,000 tonnes of plastic from our milk bottles since 2016. This is great progress, but we can, and we will do more.” J

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Gerhard Schubert Introduces New Series of Preconfigured Machines ompact design, short delivery times, C quick set-up and commissioning – this is what the new lightline machine series from Gerhard Schubert stands for. For customers who want to efficiently automate standard packaging tasks with reduced format and packaging variants, and who value high-quality design and construction, the company now offers three attractively priced preconfigured machine types: the lightline Cartonpacker, the lightline Flowpacker and the lightline Pickerline.

High flexibility is not necessarily a key area of focus for all product packaging tasks. Often what is required are solutions to take on simple, standardised packaging tasks. Gerhard Schubert GmbH developed its new lightline machine series for manufacturers who want to efficiently automate their standard packaging tasks with reduced format and packaging variants.

“With our new Schubert lightline machine series, and as a globally recognised market leader in TLM packaging machines, we are consistently advancing the standardisation of our modular technology,” highlights Marcel Kiessling, Managing Director Sales and Service. Over 50 years ago, Schubert was in fact the first company to introduce the principle of modularity in packaging machine design. Since then, today’s market leader in top-loading packaging machines has continued to evolve its modular technology with a forward-looking approach to meeting future market requirements.

“Customers now have the choice between preconfigured machines from the new lightline product series with defined product and packaging formats, and freely configurable machines with extensive degrees of freedom, which are tailored to individual customer requirements. Of course, we guarantee the same high Schubert quality

for all machines,” adds Marcel Kiessling. “A key advantage the Schubert lightline offers is that, since the new machine types are preconfigured, we can deliver them much more quickly and less expensively.” In the future, the time required from order receipt to commissioning by the customer should amount to only two to three months. And, since the machines are ready for use almost immediately, customers can react extremely quickly to new market demands.

Three Machines The Schubert lightline series comprises three machine types to handle the most important packaging tasks. The new lightline Cartonpacker takes on the role of a classic case packer when erecting, filling and closing cartons. The lightline Pickerline is a powerful pick & place line for picking up and placing products in trays. The lightline series of three is completed with the Flowpacker, which packs products in flowpacks in conjunction with the Pickerline.

Each machine type is based on preconfigured TLM modules. This enables Schubert to considerably speed up the planning and assembly process. In addition, the Cartonpacker, for example, is delivered as a

The New Lightline Machine Series – Benefits at a Glance • Efficient: preconfigured for standardised packaging tasks, high performance range • Attractively priced: low investment costs, low energy consumption, future-proof investment • Fast: short delivery times, reduced installation requirements, fast commissioning • High-quality: highest quality and system availability as per proven Schubert standards.

For more information visit www.schubert.group.

unit in one module, which reduces the installation requirements.

All three machines in the new series stand out with their focus on essential functions, which results in even lower energy consumption and lower operating costs.

The proven functional principles of Schubert technology and an intelligent machine control system ensure reliable operation with high system availability over the machine’s entire lifecycle. Another advantage is that the machines from the new lightline product series are suitable for smaller production volumes as well as for high output quantities. As you would expect from Schubert products, the lightline machines are scalable, i.e. they can be adapted to individual performance requirements by simply adding further modules.

Machine Networking Via GRIPS.world Whether a Flowpacker, Pickerline or Cartonpacker – at Schubert, the machines in the new lightline product series always run in a high performance range as well. Schubert also offers comprehensive services to ensure that this remains so throughout the entire lifecycle of the machines. As part of Schubert Customer Services, the new machine types will be linked with the company’s new GRIPS.world digital platform in the future. Therefore, the three new lightline preconfigured lines will be equipped with the same scope of services as all other TLM packaging machines in terms of system availability (OEE) and preventive service.

Through predictive maintenance, this platform will ensure long-term investment security in a TLM system in the future.

Customers will also benefit from the integrated condition monitoring of information and data that will help them further increase their productivity. The packaging machine manufacturer guarantees secure data transfer through its GS.Gate. This machine gateway, developed by the Schubert System Elektronik subsidiary in collaboration with genua GmbH, protects the data through a firewall that encrypts it extremely securely. J

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I COCOA

Cargill Celebrates a Decade of Sustainability and Innovation in Ghana With Investment Plans and Farmer Support argill’s cocoa & chocolate business has commemorated its 10th anniversary in Ghana by announcing plans for future investC ment and farmer support. Cargill’s 2022 roadmap for Ghana includes: • 80,000 farmers receiving capacity building support and facilitated access to inputs through our Farmer Field Schools • The provision of one million new cocoa seedlings for rehabilitation of old farms and 200,000 shade tree seedlings to protect cocoa trees and improve biodiversity • Access to crop protection for 30,000 farmers • Completion of 100 percent mapping of farms; using geolocation and perimeter of the farms to allow deforestation monitoring and farm development.

• 9,000 ha of cocoa developed into a cocoa agroforestry system within the Cocoa & Forest Initiative.

Commenting during the recent anniversary celebration event at Cargill’s cocoa processing facility in Tema, Ghana managing director Pieter Reichert said: “Our 2022 roadmap is fully aligned with our global sustainability goals and consolidates our continuing support for a sustainable cocoa business here in Ghana. Completion of our mapping programme will ensure farm sizes are accurately recorded to support farmers in decision making and investment. At the same time 80,000 farmers will be trained in good agricultural, environmental and social practices to support certification.”

These initiatives are informed by the principles underpinning the Cargill Cocoa Promise – the company’s commitment to improving the livelihoods of farmers and communities in a holistic way that will secure a thriving cocoa sector for generations to come Investing in Innovation During the event, Harold Poelma, president of Cargill Cocoa & Chocolate, emphasized the importance of a sustainable cocoa industry, and growing the sector using innovation: “We must embrace new technologies as a way for Cargill to drive sector growth. For example, we have introduced e-money into our business model. This allows Cargill to buy cocoa directly from farmers and their cooperatives and pay them by electronic transfer, ensuring the money reaches them swiftly, safely and accurately.

Ultimately, this improves the livelihoods of farmers and their communities. At the same time, new technological solutions are driving more precise, accurate traceability within the cocoa supply chain.”

Cargill also launched its Ghana licensed buying company, Cargill Kokoo Sourcing Company Limited, in 2016 across four districts, introducing many innovations such as bar codes to enable the full traceability of cocoa beans, portable printers, new apps, electronic money transfer and cloud-based information systems, all which are new to the Ghanaian market. Cargill Kokoo Sourcing Company now operates across 11 districts, with Ghc6 million (US$1.25m) in premium payments paid to date, benefitting over 13,000 farmers. By 2022, it is anticipated that all of Ghana’s cocoa farmers in its direct supply chain – around 80,000 in total – will benefit from electronic payment and tracking.

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Pictured (left to right): Kwaku Owusu-Agyemang, CEO Hackfort Group, Cargill – Harold Poelma, President Cargill, Hon Hackman OwusuAgyemang, COCOBOD Chairman, Lionel Soulard, Cargill Cocoa & Chocolate Managing Director West Africa, Pieter Reichert, Managing Director Ghana, Ama Tanoh, Communications Manager West Africa.

A Focus on Sustainability Innovation is also key to Cargill’s sustainability approach in Ghana, with a range of initiatives undertaken including the installation of a fully automated, digital solar power system at its Tema facility to diversify its energy supply. This investment in renewable energy is part of Cargill’s commitment to continuously decrease the environmental impact of its businesses and contributes towards Ghana’s target of having 10 percent renewable energy in its electricity generation mix by 2020.

Combatting deforestation is also central to Cargill’s sustainability approach. As a signatory of the Cocoa & Forests Initiative – a global collaboration to end deforestation related to cocoa production in Côte d’Ivoire and Ghana – Cargill is committed to zero deforestation in its global supply chain by supporting activities to promote sustainable farming practices and improve the livelihoods of cocoa farmers and their communities. Towards 2022, Cargill has for now committed to develop 9,000 ha of land into a cocoa agroforestry system within the Cocoa & Forest Initiative.

Harold Poelma said: ‘‘Cargill has put the creation of sustainable cocoa supply chains at the forefront of our presence in Ghana, enabling cocoa bean traceability through our Licensed Buying Company model, expanding farmer training in good agricultural practices, supporting the development of cooperatives and working with our partners towards zero deforestation, not just in Ghana and Côte d’Ivoire but globally. ‘‘Together, we must balance forest protection and take into account farmers’ economic livelihoods, communities, indigenous rights, and global food security needs. I encourage the Ghanaian government to keep to this commitment and support the industry’s effort to address deforestation. This is a top priority.” J

FOOD & DRINK BUSINESS EUROPE, JANUARY/FEBRUARY 2019

I STARCHES & FLOURS

Starches That Bring Health and Cost Benefits to the Table leading European natural starch specialist, KRÖNER-STÄRKE has developed A an exciting range of new clean label, native, pre-gelatinised, starches and flours to boost the health credentials of many food products. All products also offer a cost-effective solution for the food industry at a time when many raw materials have increased in price, and profit margins are being squeezed.

KRÖNER-STÄRKE starches and flours are consistently produced without the use of chemicals in tightly-controlled and transparent processes as well as many being available in organic form too. The versatile functionality of the firm’s high quality raw

materials can often lead to more cost-effective production runs in bakery or ready meals by replacing other more expensive and less naturally produced ingredients.

Since recent extreme weather conditions have badly affected potato crops, food manufacturers looking to improve profit margins, but not relinquish functionality, can substitute potato flakes with a flaky wheat starch such as POMGEL. It comes with excellent dispersion properties to achieve lump-free mixing and a high water-binding capacity to keep breads and bakery products fresher for longer. It contains no additives (unlike many potato flakes) and is a totally clean-label product, declared simply as ‘wheat starch’ on labelling.

Other ingredients which are proving

expensive at the moment, such as organic corn starch, can also be replaced by organic wheat starch. A gluten-free version SANOSTAR – a wheat starch suitable for coeliacs, is also available. It has excellent baking properties producing arguably a better taste when compared to organic corn starch, is price competitive and has excellent availability resulting in a robust and reliable supply chain for food producers.

The organic wheat starches are completely free of GMO. Bakery Sector In the bakery sector, KRÖNER-STÄRKE’s pregelatinised wheat flour is ideal for sup-

porting new product development in fine bakery wares, fine yeast-raised doughs, choux paste, bread and small baked goods.

Just declared as “wheat flour”, it functions to increase water absorption and improve dough hydration while also providing good viscosity and texture control. The finished products will also benefit from extended shelf life. Current discussions regarding the labelling of enzymes has resulted in pregelatinised flours becoming more and more popular.

In line with consumer trends, bakery producers seeking an alternative to wheat flour will be able to incorporate the firm’s pregelatinised rice flour R90 into recipes instead. It offers a perfect replacement solution for emulsifiers that are used for fresh-

keeping and performs brilliantly in dry baked goods such as flan cases, pound cakes and sponge cakes. The broad functionality of the rice flour includes dough and emulsion stabilisation, fine crumb structure and texture control. Combine this with its ability to keep goods fresher for longer and you have a very hard-working ingredient giving good returns on investment.

Bakery specialists have been hit hard by the sharp rise in egg prices in Europe and with this in mind, KRÖNER-STÄRKE has produced a multi-purpose egg replacer – REGG-EX - which is 100% clean label and based on specially selected quality flours and untreated spring water. It allows bakery specialists to avoid the full impact of the rise in egg prices by retaining the binding and relaxing functionality of eggs with up to a 100% replacement in actual egg content. It is particularly successful in pound cakes, muffins and milk rolls.

Ready Meals As the ready-meal sector is also trying to make products healthier whilst keeping control of costs, the company has perfected both pregelatinised and hot swelling starches with wide ranging functionality that can be used to replace modified starches in applications such as mayonnaises, sauces, fillings, dairy products, soups and batters.

KRÖNER-STÄRKE’s extensive starch range includes TOOGEL - a cold water swelling starch able to bind large amounts of liquid to act as a thickening agent and stabiliser of batters, doughs and emulsions as well as a clean-label-stabiliser in cream and bakery fillings. And STIKKER – a native, hot swelling starch that has been specifically created as an ingredient for clean label batters or for coating meat, fish and vegetable products.

Innovative thinking and adaptability is going to be key for all food sectors facing raw material price fluctuations. Being able to substitute certain functional ingredients for versatile and possibly cheaper versions while providing clean label declarations and high levels of transparency might just be the deciding factor in grabbing an extra share of the food market.

For further information on KRÖNERSTÄRKE’s product range contact: Henrik de Vries +49 (0) 54 51 94 47 0 or visit www.kroener-staerke.de. J

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I COCOA

Cargill Outlines Plan to End Cocoa Deforestation argill has outlined its plan to eliminate C deforestation from its cocoa supply chain. The Protect Our Planet plan provides concrete actions the company is taking to achieve 100 percent cocoa bean traceability and includes a commitment of “no further conversion” of any forest land in Ghana and Ivory Coast for cocoa production. It also expands the company’s forest efforts to five origin countries (Brazil, Indonesia, Cameroon, Ivory Coast and Ghana) as well as the indirect cocoa supply chain, while securing the future livelihoods and resilience of smallholder cocoa farmers.

“We recognize there is considerable urgency to address climate and deforestation challenges. This means engaging in programs to stop deforestation in the countries from which we source cocoa,” says Cargill Cocoa & Chocolate president, Harold Poelma. ”We have made important first steps but there is more to be done and we believe that this action plan is how we will reach our goal.”

In October 2017, Cargill introduced five sustainability goals for a thriving and sustainable cocoa sector, aligned with the UN’s Sustainable Development Goals (SDGs).

Protect Our Planet, which will be implemented in five origin countries where Cargill sources cocoa and throughout the company’s indirect supply chain, outlines how the company will achieve those goals and eliminate deforestation from its supply

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chain by 2030, including: 1 Supply Chain Transparency: Cargill intends to achieve 100 percent cocoa bean traceability. The company will map its entire cocoa supply chain, using GPS and polygon farm mapping globally, to identify the exact location of the farms and accurately assess farm size. We will also continue to introduce traceability technology to cooperatives and farmers such as a Coop Management System (CMS) and bar-coding of bags enabling us to trace beans back to individual farms. We have already achieved 100 percent traceability from farm to factory in Ghana using these technologies. We are aiming to achieve the same in Ivory Coast in 2020, where we mapped over 80,000 of the 120,000 farms in our direct supply chain.

2 Cargill Cocoa Promise: Cargill is integrating environmental protection projects into its Cocoa Promise program. This includes expanding existing programs related to growing more cocoa on less land, economics and labor issues to include agroforestry, and conservation.

3 Supplier Engagement: The company is committed to managing the risk of deforestation not only in the Cargill Cocoa Promise supply chain, but also within indirect cocoa and chocolate ingredient supply chains. This includes raising standards for third-party suppliers to advance their own transparency and build their

capacity to address common challenges.

4 Transformation, Together: The journey towards sustainable business practices is far greater than the actions or interests of any one company. Last year, Cargill cosigned the Cocoa & Forests Initiative (CFI) alongside thirty-four other chocolate and cocoa companies, the World Cocoa Foundation, and the IDH Sustainable Trade Initiative to achieve a fair and secure cocoa supply chain.

Protect Our Planet also includes collaborative arrangements with (sub)national & landscapes initiatives, and support of stronger legal enforcement mechanisms.

5 Reporting & Sharing: Cargill has committed to reporting annually to all its stakeholders, including customers, CFI, NGOs and others. By sharing progress and learnings with stakeholders around the globe, participants in the cocoa supply chain and beyond can learn from each other on this journey to end deforestation.

“Concerns around deforestation and its impact demand a joint response from private and public sectors, companies and citizens alike,” says Harold Poelma. “We are committed to playing our part in ending deforestation in the cocoa sector while improving the lives of cocoa farmers and their communities, reinforcing our ability to thrive as a business while leaving a positive impact on the world around us.” J

FOOD & DRINK BUSINESS EUROPE, JANUARY/FEBRUARY 2019

I WHEY

Arla Foods Ingredients Launches Optimized Comfort Concept For Infant Formula ptimized comfort is at the heart of a O new whey protein-based concept for infant formula developed by Arla Foods Ingredients. Infant formulas contain significantly more protein than human milk.

Since protein is hard to digest, this can lead to gastrointestinal discomfort issues in infants, such as colic and constipation, resulting in excessive crying. Other problems include regurgitation and stool issues.

However, by altering the amount and types of proteins in formula, it is possible to reduce these problems.

Arla Foods Ingredients’ new optimized comfort concept for infant formula contains alpha-lactalbumin, which is the most abundant protein in human milk. Due to its excellent amino acid composition, alpha-lactalbumin is a high-quality proteinthat is a key ingredient in low-protein formulas with protein levels closer to human milk.

The new concept also includes whey protein hydrolysates, which are high-quality

proteins that have been broken down by enzymes, effectively meaning they have been pre-digested.

Arla Foods Ingredients is the world’s first commercial producer of alpha-lactalbumin and one of the world’s largest producers of both alpha-lactalbumin and whey protein hydrolysates. Its infant nutrition ingredients are manufactured in Denmark in a modern facility to the strictest safety and quality standards using milk that is nonGMO/GMO-free, Kosher and Halal-certified, and free of annatto.

The new optimized comfort, low protein formula concept incorporates Lacprodan® ALPHA-10, a whey protein concentrate with a minimum level of 41% alpha-lactalbumin as a proportion of total protein content; and Lacprodan® IF-3070, a partially hydrolysed whey protein (DH 9-15) with a mixture of small and larger peptides.

The concept product has been created to showcase potential optimized comfort applications. It contains 9.7g of protein per

100g serving and has a protein to energy ratio of 1.9g/100kcal.

Gut comfort is generally considered to be important for infant well-being and sleep, and discomfort can be emotionally and physically draining for both infants and parents. Furthermore, infant discomfort problems are the most common reason for parents to switch between formulas to find a solution to their infant’s gastrointestinal issues. J

I SALT

Mixed Progress by Food Industry to Reduce Salt ublic Health England (PHE) has pubP lished the first assessment of the food industry’s progress towards meeting the government’s salt reduction targets, showing a mixed picture overall. Set by the government in 2014, the most recent targets cover 28 food categories for the food industry to achieve by 2017. This applies to retailers, manufacturers and the out of home sector - including restaurants, cafes and pub chains, and the categories include bread, crisps and ready meals.

Companies were asked to meet average and maximum targets for salt content per 100g, with the maximum targets ranging from 0.13g in canned vegetables, to 3.75g in curry pastes. The foods covered by the programme provide more than half the salt in the nation’s diet.

While salt reduction has been ongoing since 2006, progress towards meeting food targets was previously self-reported by the

food industry. This is the first in-depth assessment, using commercial data. For retailers and manufacturers (the in-home sector), the analysis shows: • Just over half of all average salt reduction targets were met, with retailers making more progress than manufacturers; • All average salt targets were met in 9 food categories, including breakfast cereals and baked beans, however, meat products met none of these targets;

• Four in five foods had salt levels at, or below, the maximum targets set.

In addition to the targets set for all industry sectors across the 28 categories, the out of home sector was also set maximum per-serving targets in 11 food categories, including sandwiches, pasta dishes, and children’s meals. The report shows: • Seven in 10 foods did not exceed maximum targets; • Salt levels are generally higher in out of home products, compared to in-home.

Since it was established, the salt reduction programme has helped to reduce the nation’s salt intake by 11%, to 8 grams per day. If this figure was brought closer to the recommended 6 grams a day, it could help to prevent thousands of avoidable deaths.

Salt reduction forms part of PHE’s wider reduction programme that also includes work to reduce sugar and calories in everyday foods. J

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I SWEETENERS

Tate & Lyle and Sweet Green Fields Unveil Latest Stevia Innovation ate & Lyle is introducing two new noT calorie sweeteners extracted from stevia leaves. These are the latest additions to its partnership portfolio with Sweet Green Fields, one of the largest privately held, fully integrated global stevia ingredient companies.

With OPTIMIZER Stevia™ 4.10 and INTESSE® Stevia 2.0, producers have more tools to deliver cost-efficient sugar and calorie reductions across their product ranges, meeting growing consumer demand for great tasting, plant-based products that support weight management.

The taste of OPTIMIZER Stevia™ 4.10 is designed to benchmark with RebA 99 – RebA 100, but at a more cost-effective price. A highly versatile sweetener, it is appropriate for use across a wide range of product categories, from beverages and confectionery to sports nutrition powders, and even as a tabletop product.

INTESSE® Stevia 2.0 is a premium sweetener and is designed to provide elevated levels of sugar reduction with a lower cost in use than other premium stevia sweeteners and without compromising on taste. It is suitable for sweet formulations requiring a high amount of sugar replacement, for example, dairy products such as yogurts and ice cream, and beverages such as juice drinks and iced teas.

Tommy Lykke Husum, Sweeteners Senior Product Manager at Tate & Lyle, says: “Working with Sweet Green Fields, we have been able to combine our expertise and develop technologies to broaden our range of high quality plant-based sweeteners for use across a wide range of categories whilst remaining competitive on cost.”

He adds: “Health and wellness remains a key trend and we know that consumers are looking for more sweetening solutions with natural origins that help them reduce calories and sugars, but they’re not willing to sacrifice great taste. The sugar reduction market is developing extremely quickly and manufacturers need to be innovative in their approach to keep up with growing demand. The INTESSE® Stevia 2.0 and OPTIMIZER Stevia™ 4.10 will help us to maintain our position as a leader in the development of stevia-based sugar reduction solutions.” J

I CHOCOLATE

Cargill Launches Veliche Gourmet in the Netherlands – Supported by First e-commerce Chocolate Sales Platform in Europe argill has launched its artisan chocolate C brand Veliche Gourmet in the Netherlands. Inge Demeyere, managing director for Cargill’s chocolates and compound activities in Europe explains: “We are proud to launch Veliche Gourmet, our high quality Belgian chocolate range with outstanding sensorial profile that brings a full, smooth and superior taste to professional artisans in the Netherlands. The whole range is 100% sourced from Rainforest Alliance Certified farms, meaning our chocolate is a treat well treated – right from its origin.”

The Veliche Gourmet range is suitable for every application and is remarkably workable, thanks to its optimal melting curve, producing perfect results for the professional artisan.

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“The launch of Veliche Gourmet is supported by our new e-commerce platform – which makes us the only vertically integrated chocolate producer in Europe to provide an e-commerce platform where end-users can purchase directly from the supplier,” continues Inge Demeyere. “This creates a direct link between the professional artisan and us, facilitating a unique partnership based on our shared passion for artisan creations – and the endless possibilities chocolate offers.”

Benefits of the e-commerce platform also include: • No minimum order requirement • Next day delivery* • An ‘always-in-stock promise’ • Free delivery** For those preferring to purchase via the more traditional route, Veliche Gourmet has partnered with Bidfood – the main premium supplier to professional kitchens in the Dutch market – which serves 25,000 customers across the Netherlands.

Veliche Gourmet is currently available in Belgium, the UK, Ireland and selected countries in the Asia-Pacific region and its launch in the Netherlands is the first step in expanding its availability across Europe. * On orders placed before 23:00h **On orders over 90 Euros J

FOOD & DRINK BUSINESS EUROPE, JANUARY/FEBRUARY 2019