F&d business europe sept 2015

September 2015

European dairy processors invest for future growth in an unpredictable market

Food & Drink Business Website:

www.fdbusiness.com

C o n t e n t s

- 2 M ERGERS & A CQUISITIONS

- 44 S PORTS N UTRITION

Coverage of British and international deals.

$10 billion sports nutrition sector building momentum.

P AGE 23 PAGE 2

- 5 S OFT D RINKS New soft drinks combination in Western Europe to create world’s largest independent Coca-Cola bottler.

Stefan Descheemaeker, CEO, Nomad Foods.

The Coca-Cola Company appoints veteran to oversee global operations.

- 47 C EREALS & S NACKS Project K efficiency programme to fuel future growth at Kellogg.

R EGULARS Materials Handling . . . . . . . . . . . . . . . . . . 10 Bottling & Packaging. . . . . . . . . . . . . . 11-18 PAGE 5

John Brock, CEO, Coca-Cola Enterprises.

- 21 C OVER S TORY European dairy processors invest for future growth in an unpredictable market.

PAGE 29

Roelof Joosten, CEO, Royal FrieslandCampina.

Processing & Manufacturing . . . 33-37, 49-54 Materials & Ingredients . . . . . . 39, 45, 57-60 Quality & Safety. . . . . . . . . . . . . . . . . . . . 40 Control & Automation. . . . . . . . . . . . . . . . 55

Top 10 European Dairy Companies, 2015.

Emmanuel Faber, CEO, Danone.

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Storage & Logistics . . . . . . . . . . . . . . . . . 56

John Bryant, CEO, Kellogg Company.

Managing Director: Colin Murphy Editor: Mike Rohan Group Operations Manager: Sylvia McCarthy Advertising: John Bent, Ian Stewart & Rachel Howard

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Peder Tuborgh, CEO, Arla Foods.

- 25 D AIRY Fonterra and Royal A-ware open new partnership site in the Netherlands.

Production Manager: Sylvia McCarthy

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

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- 43 E VENT

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FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

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M E E R R G G E E R R S S M Nomad Foods Extends its European Footprint Having recently completed the Eur2.6 billion purchase of Iglo Group, Europe’s leading frozen food company, Nomad Foods is acquiring Findus Group's continental European businesses in Sweden, Norway, Finland, Denmark, France, Spain and Belgium for £500 million.

These operations include the intellectual property and commercialisation rights to the Findus, Lutosa, and La Cocinera brands in the respective markets. The remaining part of the Findus Group, including Young's Seafood in the UK, is not part of the deal.

The operations being acquired include approximately 1,500 employees and six manufacturing facilities in Norway, Sweden, France, and Spain.

Annual revenues are approximately Eur600 million with an adjusted EBITDA margin of approximately 11%. The acquisition is expected to be immediately accretive to Nomad's earnings with approximately Eur25 million to Eur30 million of annual synergies targeted over the next three years.

Through its Iglo Group business, Nomad currently operates Findus in Italy and this transaction creates a pan-European food business and further reunites the brand across the continent.

Stefan Descheemaeker, chief executive of Nomad, comments: "This transaction is in line with our growth strategy, an exciting addition to the Nomad portfolio, and a significant milestone in reaching our goal of building a global consumer foods company. While the operations we are acquiring are strong, attractive assets on their own, combining them with our existing businesses creates a unique value proposition and unlocks new growth opportunities. The Findus name is well-loved and iconic across the European continent, and having the businesses under one umbrella brings together two talented, world-class teams, enabling us to share best practices and to elevate and evolve the brand as we bring an even 2

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

greater choice of products to consumers."

are expected to be approximately $12.6 billion with $2.1 billion of EBITDA and $1.6 billion of operating income with a volume of 2.5 billion unit cases.

deliver economies of scale and cost efficiencies that will underpin investment and help the UK compete more successfully in global markets.”

Aryzta Completes Picard Deal

Stefan Descheemaeker, chief executive of Nomad Foods.

New Soft Drinks Combination in Western Europe to Create World’s Largest Independent Coca-Cola Bottler Coca-Cola Enterprises (CCE), Coca-Cola Iberian Partners (CCIP) and Coca-Cola Erfrischungsgetränke (CCEAG), a wholly owned subsidiary of The Coca-Cola Company, have agreed to combine their businesses into a new company to be called Coca-Cola European Partners, in a transformational deal that will create the world’s largest independent Coca-Cola bottler based on net revenues.

With more than 50 bottling plants and approximately 27,000 associates, Coca-Cola European Partners will serve a consumer population of over 300 million in 13 countries across Western Europe, including Andorra, Belgium, France, Germany, Great Britain,

Iceland, Luxembourg, Monaco, Norway, Portugal, Spain, Sweden and the Netherlands.

The combined company will operate in the four largest markets for nonalcoholic ready-todrink beverages in Western Europe – Germany, Spain, Great Britain and France.

On a pre-synergy, pro forma basis, for 2015 the combined company’s annual net revenues

Aryzta, the Zurich-based global speciality bakery business, has completed the Eur446.6 million acquisition of 49% of Picard, a speciality premium French food business, following receipt of all necessary regulatory clearances.

Aryzta has the right to exercise a call option in three to five years to acquire 100% of Picard.

Picard’s FY 2015 revenue is Eur1.37 billion and its March 2015 EBITDA run-rate is Eur192 million. Picard has an enterprise value of Eur2.25 billion. Picard will be treated by Aryzta as an associate.

Sale of Dairy Crest's Dairies Operations on Track to Complete in 2015 The UK Competition and Markets Authority (CMA) has indicated that it proposes to accept the undertakings from Muller UK & Ireland Group with regard to its agreed £80 million acquisition of Dairy Crest’s Dairies operations. The CMA has announced an extension of its deadline for consideration of the undertakings by the statutory 40 days from 21 August to 19 October although it has also said that it may reach a final decision before that date.

Dairy Crest continues to anticipate that the sale will complete before the end of 2015 should the CMA accept the undertakings. Mark Allen, chief executive of Dairy Crest, comments: "We have always believed the sale of our Dairies operations is good news for the whole UK dairy sector which is currently facing significant challenges arising from low dairy commodity returns. It will

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

Mark Allen, chief executive of Dairy Crest.

McCormick Completes Barbeque Sauces Acquisition McCormick & Company, a global leader in flavour technology, has completed the $100 million purchase of One World Foods, which sells Stubb's, the leading premium barbeque sauce brand in the US. Annual sales of the business are projected to be $30 million in 2015 and are expected to grow at a double-digit rate annually for the next several years.

Stubb's products complement McCormick's range of grilling items with the addition of authentic, craft barbeque sauces.

McCormick plans to drive sales of the Stubb's brand through expanded distribution, increased household penetration and innovative flavours.

McCormick expects no earnings per share impact in 2015 from this acquisition. However, with plans to achieve strong growth and significant cost synergies McCormick expects incremental EBITDA of at least $10 million by 2017.

M E R G E R S

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

Heartland Food Products Group to Acquire Splenda Brand US-based Heartland Food Products Group, one of the world's leading producers and marketers of low calorie sweeteners, drink mixes, coffee, and nutritional beverages for consumer markets has agreed to acquire the Splenda low calorie sweetener brand from McNeil Nutritionals, a subsidiary of Johnson & Johnson Consumer. The transaction is expected to close before the end of the year. The financial terms of the transaction have not been disclosed.

During the process Heartland gained an investment partner, Centerbridge Partners, a private investment firm with $25 billion in assets under management. Centerbridge was instrumental in bringing the acquisition to completion. Center-bridge Partners will become a shareholder in Heartland upon consummation of the transaction.

Bel Completes Moroccan Acquisition Bel Group, the French dairy giant, has completed its acqui-

sition of 69.82% of Safilait, Morocco's third largest dairy company, for an undisclosed price. Safilait, which specializes in the processing, packaging and sale of fresh milk, UHT milk and fresh dairy products through its Jibal brand, has reported robust business growth over the past several years.

Present in the country since the 1970's, Bel employs 1,500 people in Morocco and operates a plant in Tangiers that produces The Laughing Cow, les Enfants and Kiri cheese.

Bel is the leading player in the Moroccan cheese market. The

remaining 30.18% interest in Safilait will stay under the ownership of Safilait's founding company, Yasfi, led by Omar Kettani, and Mohammed Raita, Safilait's chief executive.

€1.35 Billion Deal Creates a Global Leader in Aquaculture Nutrition Cargill has entered into an agreement with Altor Fund III and Bain Capital Europe III to acquire EWOS, a global leader in salmon nutrition for Eur1.35 billion. The transaction, which is subject to regulatory approvals, is expected to close before the end of the calendar year.

“This transaction, which is significant and the second aquaculture acquisition Cargill has announced in as many months, is a strategic investment in our long-term growth and evidence of our commitment to the growing aquaculture industry,” says David MacLennan, president and chief executive of Cargill.

The acquisition gives Cargill entry into the salmon market and will make Cargill’s animal nutrition business a leading player in the growing salmon feed industry, one of the most advanced and professionally managed segments in global aquaculture. As part of the transaction, Cargill will acquire seven feed manufacturing facilities; three in Norway, and one each in Chile, Canada, Scotland and Vietnam, as well as two stateof-the-art R&D centres located in Norway and Chile.

EWOS produces more than 1.2 million metric tons of salmon feed for the biggest salmon producers in the world.

David MacLennan, president and chief executive of Cargill.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

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I SOFT DRINKS

New Soft Drinks Combination in Western Europe to Create World’s Largest Independent Coca-Cola Bottler Three Coca-Cola bottlers in Western Europe are to combine their businesses into a new company - Coca-Cola European Partners - which will operate more than 50 bottling plants, employ approximately 27,000 people and generate volume sales of 2.5 billion unit cases. he transformational products in the markets in deal involving Cocawhich they are consumed.

Cola Enterprises, Coca-Cola Enterprises Coca-Cola Iberian reported net sales of $8.3 Partners and Coca-Cola billion for 2014, an increase Erfrischungsgetranke, a of 0.5% on a reported basis wholly owned subsidiary of but down 0.5% on a curThe Coca-Cola Company, rency-neutral basis. Fullwill create the world’s largest year operating income rose independent Coca-Cola botby 11.5% to $1.0 billion on tler based on net revenues. a reported basis and was up On a pre-synergy, pro forma 5% and 3% respectively on basis, for 2015 Coca-Cola a comparable and currencyEuropean Partners is expectneutral basis compared to ed to achieve annual net revthe previous year. enues of approximately Coca-Cola Enterprises’ $12.6 billion (Eur11.2 bilshare holders will own 48% lion) with EBITDA of $2.1 of Coca-Cola European billion and $1.6 billion of Partners with Coca-Cola operating income.

Iberian Partners’ shareownMuhtar Kent, chairman and chief executive of The Coca-Cola Company; Sol Daurella, Coca-Cola European ers holding 34% and The executive chairwoman of Coca-Cola Iberian Partners; and John Brock, chairman and chief Partners will serve a conCoca-Cola Company conexecutive of Coca-Cola Enterprises, toast the creation of Coca-Cola European Partners. sumer population of over trolling the remaining 18%.

300 million in 13 countries Coca-Cola Iberian Partacross Western Europe, including Andorra, Netherlands. The combined company will ners (CCIP) is the bottling partner of The Belgium, France, Germany, Great Britain, operate in the four largest markets for non- Coca-Cola Company for Spain, Portugal Iceland, Luxembourg, Monaco, Norway, alcoholic ready-to-drink beverages in and Andorra. Coca-Cola Iberian Partners Portugal, Spain, Sweden and the Western Europe – Germany, Spain, Great has eight soft drink manufacturing plants, Britain and France. one for concentrated juice and six natural mineral water springs in operation.

The Partners With more than 20 production plants, Already the leading Coca-Cola bot- Coca-Cola Erfrischungsgetranke (CCEAG) tler in Western Europe and serving is the largest German beverage company markets Great Britain, continental with a sales volume of 3.8 billion litres in France, Belgium, Luxembourg, 2014. The German Coca-Cola franchisee Monaco, the Netherlands, Norway, and Sweden, Coca-Cola Enterprises (CCE) is the biggest of the three merging businesses.

It operates with a local focus and has 17 manufacAlready the leading Coca-Cola bottler in Western Europe, turing sites across Europe, Coca-Cola Enterprises is the biggest of the three merging where the company manubusinesses. factures nearly 90% of its

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FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

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The Coca-Cola Company Appoints Veteran to Oversee Global Operations The Coca-Cola Company has appointed James "Over nearly two decades, James has built an Quincey as president and chief operating officer, impressive track record of strategic, operational effective immediately. As president and chief operand commercial accomplishments," says Muhtar ating officer, James Quincey will have responsibility Kent. "He has proven to be a successful and trusted for all of the company's operating units worldwide. leader and brings to this position a strong reputaHe will report directly to chairman and chief execution for developing people and inspiring teams. His tive officer Muhtar Kent. Indeed, James Quincey is wealth of experience across our global system, parregarded as a likely successor to Muhtar Kent. ticularly in Europe and Latin America, will be a James Quincey is a 19-year veteran of Coca-Cola valuable asset as we continue to accelerate growth and since 2013 has served as president of The Coca- James Quincey, president and chief operating through our 2020 Vision and our previously Cola Company's Europe Group, which comprises 38 officer of The Coca-Cola Company; with Muhtar announced five strategic actions. James is emblemcountries, including the Member States of the Kent, chairman and chief executive of The Coca- atic of the deep bench strength we have developed European Union, the European Free Trade Cola Company. at Coca-Cola, and I could not be more pleased Association countries and the Balkans. Under James about his appointment to this critical role at this Quincey's leadership, the Europe Group, the company's most profitable operimportant time." ating group, strategically expanded its brand portfolio and improved execuJames Quincey remarks: "I am excited and honoured to take on this role tion across the territory. These actions helped drive solid top-line growth and and look forward to partnering with Muhtar and our talented senior leaderexpanded the company's leading market share position in total non-alcoholic ship team to deliver on our 2020 Vision and help accelerate the strategic ready-to-drink (NARTD) beverages despite the volatile and prolonged macroactions we've outlined to reinvigorate growth across our company and system economic challenges in the region. worldwide."

James Quincey also played an instrumental role in leading the recently Concurrent to James Quincey's appointment, Ahmet Bozer, executive vice announced proposed merger of Coca-Cola Enterprises, Coca-Cola Iberian president and president of Coca-Cola International, will retire after a distinPartners and Coca-Cola Erfrischungsgetranke to form Coca-Cola European guished 25-year career in the Coca-Cola system. Ahmet Bozer will stay with Partners, in what will become the world's largest independent Coca-Cola botCoca-Cola until March 2016, to ensure a smooth transition and serve as an tler based on net revenues. adviser to Muhtar Kent and the company on key strategic initiatives.

European Partners will enter into a new 10year bottling agreement with an option to renew for an additional 10-year period.

According to Howard Telford, senior global beverages analyst at Euromonitor International: “The deal seems like an excellent fit for CCE's capabilities and expertise, bringing the high per capita soft drinks market of Germany under its umbrella, although a private label and discounter intensive grocery retail environment will present immediate challenges. The new entity will also take responsibility for the struggling but high potential markets of Spain and Italy, where there is room to generate per capita growth across soft drinks if economic recoveries take hold.” See Graphic.

Important Step serves around 400,000 trade and horeca Company and create increased value for “The creation of a larger, unified Coca-Cola customers and employs around 9,500 peo- CCE’s shareowners.” bottling partner in Western Europe repreple in Germany.

The Coca-Cola Company and Coca-Cola sents an important step in our global sys“The creation of Coca-Cola European tem’s evolution,” says Muhtar Kent, Partners will build on each bottler’s chairman and chief executive of The capabilities to create more efficient operCoca-Cola Company. “We continue to ations in their respective markets across adapt our business model to innovate, Western Europe,” comments John invest and grow along with the changBrock, chairman and chief executive of ing demands of the marketplace. With Coca-Cola Enterprises. “We look forthe strong leadership that will be assemward to bringing together our worldbled from across the three organisations, class supply chain and sales team with Coca-Cola European Partners will be the distinct strengths offered by CCIP well-positioned to deliver better and and CCEAG to capture additional more effective service to customers growth opportunities in each market. throughout Western Europe and drive This transaction offers clear synergies, profitable growth across multiple beveralong with the scale to better serve the age categories.” needs of our customers and consumers According to reports, the creation of in Western Europe, to become an even Coca-Cola European Partners will serve a consumer population Coca-Cola European Partners has stronger partner to The Coca-Cola of over 300 million in 13 countries across Western Europe. prompted Coca-Cola bottlers in South FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

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America - Coca-Cola FEMSA, Arca Continental and Coca-Cola Andina – to consider a similar alliance.

Indeed, CCIP is the result of a recent merger in the Iberian Peninsula. “In 2013, we combined our family-owned Iberian Coca-Cola bottlers with over 60 years of history to better serve our customers and consumers,” remarks Sol Daurella, executive chairwoman of Coca-Cola Iberian Partners. “As the single-largest shareowner in this new business we will play a strong strategic role in Coca-Cola European Partners, while continuing to be close to our country, business, local consumers and customers. Combining our unique expertise in the on-premise channels, targeted marketing experience and operational excellence with the skills of CCE and CCEAG, together we will drive growth in Western Europe.”

Management Team Sol Daurella will become chairwoman of Coca-Cola European Partners and John Brock will become chief executive. Damian Gammell, currently beverage group president and chief executive of Turkish brewer and soft drinks business Anadolu Efes and a previous chief executive of CCEAG, will join Coca-Cola Enterprises as chief operating officer in autumn 2015 and become chief operating officer of Coca-Cola European Partners upon closing.

Manik (‘Nik’) Jhangiani, currently the chief financial officer of Coca-Cola Enterprises, will become Coca-Cola European Partners’ chief financial officer, and Victor Rufart, currently general manager of CCIP, will become chief integration officer. Other members of the new executive team will be announced before the closing of the transaction.

Synergies The combination of the three complementary businesses will generate substantial synergies, including supply chain benefits and operating efficiencies, which are projected to result in annual run-rate pre-tax savings of approximately $350-375 million within three years of the deal closing. The synergy savings will allow the enlarged business to increase investment in sales and customerfacing activities to drive incremental topline and profit growth over the long term.

"For Coca-Cola and its bottling partners, this move is all about efficiency and savings. Bottling is a capital intensive and expensive enterprise, and The Coca-Cola Company has embarked on a recent process of refranchising these operations to local subsidiaries, spending more of its focus and resources on producing concentrates and the global marketing of its brands,” points out Howard Telford. “To date, refranchising has mostly taken the form of smaller agreements with existing bottlers in the US, to release more operating territory.”

Coca-Cola European Partners is expected to have a 2015 pro forma net debt to EBITDA ratio of approximately 3.5x, and given anticipated cash flows, is expected to de-lever to approximately 2.5x by year-end 2017. Coca-Cola European Partners is fully committed to

an investment-grade rating and intends to operate within a 2.5x3.0x net debt to EBITDA ratio longer term. It intends to distribute dividends per share in the range of approximately 30 to 40% of net income over time, to be determined by its board of directors.

The deal to create Coca-Cola European Partners has been approved by the boards of directors of Coca-Cola Enterprises, CocaCola Iberian Partners and The CocaCola Company. The proposed merger is subject to approval by Coca-Cola Enterprises's shareowners, receipt of regulatory clearances and other customary conditions. The merger is expected to close in the second quarter of 2016. J

MATERIALS HANDLING

I CONVEYORS

Rexnord FlatTop is Moving Forward s a global leader in conveying compoA nents manufacture, Rexnord FlatTop is committed to driving efficiencies through its customers facilities with a focused and clearly defined innovation strategy.

Vice President and Business Manager for Rexnord FlatTop, Rick van den Berg.

Headquartered in Wisconsin in the US, Rexnord is a global leader in delivering high quality products under two strategic platforms: process and motion control, and water management. Employing around 8,000 people around the world and with over 120 years of experience, Rexnord has established for itself a robust reputation for delivering innovative, high quality and durable products.

Through a programme of continuous improvement across product development and manufacturing processes, the company aims to consistently create superior value for its customers, shareholders and associates.

Rexnord’s FlatTop division designs and manufactures standard and bespoke conveyor systems for the food and beverage, industrial and automotive markets. The company supplies OEMs, end-users and a network of distribution partners around the world and is currently experiencing significant success as its core markets grow. With global population rising and a middle class expanding in many developing countries, the global food and beverage industry is currently experiencing a period of positive growth, as to is the automotive industry.

“We listen to our customers and their voice is number one,” begins Rexnord VP and Business Manager for FlatTop, Rick van den Berg. “We are also very capable of problem solving. With such a vast bank of expertise and experience we have a reputation for never walking away from an issue.” Rexnord 10

FlatTop places itself firmly in the driving seat of the conveyors industry by delivering the majority of significant innovations and retaining technology leadership across the world.

Innovation focuses revolve around four main drivers: safety, productivity, energy saving and water reduction. In a push to deliver this to the market for the last three years FlatTop has been developing its Engineered Sustainability product programme.

Engineered Sustainability “Engineered Sustainability is a product programme focused on developing and launching solutions around these four central topics,” explains Rick. “It is a product programme that enables our customers to utilize durable conveyor systems with components that guarantee optimum product handling solutions, without compromising the ability to meet our customer’s targets of safety improvements, productivity optimisation, energy savings, product protection and water minimisation.”

By working closely with its customers Rexnord FlatTop deploys its skilled engineers to help obtain low Total Cost of Ownership (TCO), resulting in cost savings by improving the overall operational processes.

Currently sitting amongst the Engineered Sustainability product portfolio is the ZeroGap Multi-flex Chain, which has a patented top plate design to allow for tight side-flexing with no gap opening on the surface. This unique design enhances product performance and results in less tippage, reduced debris trapping and improved safety.

Accompanying this, amongst many others, is the 661 Series Chain which offers improved product handling with smooth running conveyors, optimal bottle stability and low noise levels. A 25 per cent reduction in chain weight also means lower headshaft tension. In October 2015, Rexnord FlatTop will be attending the annual Brau Beviale exhibition in Germany to showcase its Engineered Sustainability product range and will be launching its new generation of low backlinepressure solutions designed to help increase safety, offer optimum product protection and reduce noise levels in packaging conveying.

Innovation Innovation is at the heart of Rexnord FlatTop being able to deliver these industry-leading solutions to the market. “We offer industry standard products, which are designed around the latest industry needs. This is a big portfolio of solutions, which are available off the

shelf for low, medium and high speed bottling and filling,” highlights Rick. “Beside this, especially for OEMs, we are able to utilise and offer customisation to customers to optimise products for specific installations. We have continued our innovation drive in terms of materials as well and have just launched a hybrid material technology by combining engineered plastics with metals.”

To facilitate this level of continuous improvement across the global organisation, Rexnord employs a business operating system, which derives itself from Toyota’s renowned business system. Named the Rexnord Business System (RBS), it ensures that all manufacturing plants around the world are focused on the same strategy. In essence, RBS creates a scalable, process-based framework that focuses on driving superior customer satisfaction and financial results by targeting world-class operating performance throughout all aspects of the business. “In terms of capability, we have metal processing, injection moulding, machining, extrusion, testing, assembly and shipping all done in-house,” outlines Rick. “We also do all of our research and development in-house, which is supplemented by working closely with our global suppliers of resins, metals and technology to ensure we are driving the industry forward in the best way possible.”

The Future “As for the future”, Rick continues: “Over the next year we will be focusing heavily on expanding our Engineered Sustainability offer for primary and secondary packaging applications. We will also be looking to further develop our product offering for the automotive industry. In the longer term, Rexnord is planning to take a leading position in providing and demonstrating manufacturing efficiency by continuing to offer the most reliable and durable products in the industry. Last but not least, we continue to ensure that we are easy to do business with.” J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

Ozone-free Filling For Water – Bromate in Drinking and Mineral Water zone is one of the strongest disinfectants O employed in the beverage industry. Its use when bottling water has many advantages, since this molecule provides disinfection for simply everything: water, filler, bottles, closures, and the bottle’s head space as well. But, under certain preconditions, bromates may be produced during disinfection with ozone, and these constitute a possible health risk. The larger beverage producers, in particular, are therefore reducing the internally permissible values for the bromate content in the water for their own products, or want to eliminate the use of ozone entirely. In order to make this possible, Krones has developed a holistic machinery concept for microbiologically safe filling of mineral and table water without featuring ozonisation.

Strategies For Avoiding Bromate Formation The possible strategies for avoiding bromate formation include: – Do not use sodium hypochlorite as disinfectant – Fully demineralise the water prior to ozonisation, and subsequently remineralise it (table water) – Set the pH-value appropriately prior to ozonisation (e.g. by means of CO2) – Optimise the dwell time (CxT) – Use membrane filtration instead of ozone (ultra-filtration).

Ozone-free Filling Concept For Mineral and Table Water If, for the abovementioned reasons, a client wishes to discontinue ozonising his water, an ultra-filtration routine can replace treating the water with ozone. For filling table water, it would also be possible to use reverse osmosis in a Hydronomic RO unit, and where appropriate subsequent mineralisation in a Hydronomic MDS (Mineral Dosing Station). After that, ozonisation may continue to be run in the standard mode. Depending on the national legislation applying in each case, it would also be conceivable to use a UHT process in the Krones AquaAsept sterile water UHT unit.

For mineral water, by contrast, it is prohibited, almost everywhere, to use reverse osmosis as a treatment option, because of the national legislation applying to natural mineral water. On the other hand, the use of ultrafiltration in mineral-water treatment is permitted in some countries. For this purpose, Krones offers a holistic concept in which all the machines of a line are harmonised with each other for optimum hygiene. The aim here is to ensure that the water after treatment exhibits less than one colony-forming unit per millilitre.

The Hydronomic UF ultra-filtration unit, which removes particles up to a size of 0.02 micrometres from the mains water, statistically achieves a

germ figure of one germ per ten 1-litre bottles, corresponding to a reduction of log 6.

The water treated in the ultra-filtration system is then passed to the filler, which is supplied with PET containers by a blow-moulder. In its simplest configuration, the concept here features a Contiform 3 blow-moulder, with a preform feed system in hygienic design and a preform rinser. If the bottler wishes a higher standard of hygiene, then one of the following options can be used: – a Contiform 3 with Contipure preform decontamination – a Contiform 3 with an UltraClean preform rinser – a Contiform 3 with PreBeam preform sterilisation by means of electron beams – or a Contiform AseptBloc, an aseptic blow-moulder/filler block.

In the simplest case, however, a Contiform 3 blow-moulder with a preform feed system in hygienic design and a preform rinser is sufficient. In this case, there is no need for a bottle rinser upstream of the filler.

The filler itself is a Modulfill model in hygienic design, but enclosed inside a cleanroom, and fitted with a foam-cleaning feature, UV closure treatment and neck steriliser, so as to avoid recontamination. Here, too, there are various other options if the client wishes a higher standard of hygiene, for instance: – a Modulfill with an UltraClean two-channel rinser – a Modulfill Asept modularised aseptic filler a PET-Asept L2 aseptic block. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

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I SOFT DRINKS

ACMI Installs the Fastest Soft Drinks Lines in the World anlubang, Philippines - sixty kilometers from Manila. This is C the facility, chosen by the Coca-Cola colossal Femsa, to install the four fastest PET lines for soft drinks in the world. With a daily production of seven million bottles, the four lines installed by ACMI (two lines of 81.000 bottles per hour and two lines of 63.000), represent the maximum technological development of the branch.

Faster palletiser and Twisterbox® layer formation system.

Line overview.

Complete Line ACMI carried out the design and the management of the four lines of Canlubang, granting the project success in the time frame required by the customer. From the outfeed of the blowing-fillinglabelling block, which is the only component not part of the ACMI supply, the 250 ml PET bottles are handled with extremely high efficiency right up to the finished pallet. Lines number 7 and 8 manage the single format of 250 ml with a speed of 81.000 bph, the other two lines on the other hand are multi-format and can manage four different formats ranging from the 250ml to the 1 Lt. Fenix Shrinkwrapper All the four shrinkwrappers installed in Canlubang belong to the 295 series, a series designed for packaging with film only, on a double lane, with a maximum speed of 95 packs per minute for each lane. The infeed system used for Coca-Cola Femsa shrinkwrappers is the so called “thirty degree system with recirculation”, which allows a high production speed associated with 12

low pressure on the bottles. Thanks to this smart system, the bottles quickly channel towards the wrapping area, whilst those in excess are directed to a recirculation system, which put them back in the bottles infeed flow further upstream. Amongst the novelties presented by ACMI, is the complete restyling of the oven, which probably represents the most critical part of any shrinkwrapper.

Both the electrical consumption and the package quality depend on the oven configuration. During the last few years ACMI has invested a great deal in the oven design both for the electrical resistances and the air flow inside the oven tunnel, in order to achieve the desired result.

Automatic Film Changeover All the four shrinkwrappers are equipped with the automatic film changeover patented by ACMI. In an external box, positioned close to the shrinkwrapper, are installed two reels of film. When the shrinkwrapper finishes the reel in use, it switches automatically to the second reel in a time frame of approximately 10 seconds. At this stage the operator has all the required time to replace the terminated reel with a new one, while the machine has already restarted its production cycle. The operator, who intervenes on the external reel box, can operate in complete safety, at a safe distance from the shrinkwrapper moving parts.

Fenix shrinkwrapper with external box and automatic changeover system.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

Twisterbox The palletising system is centered around the Twisterbox®, an ACMI patent for the continuous

the multi-format lines need a model with three gripping pliers.

The Twisterbox® system allows the preparation and the formation of the layer, guaranteeing very high production speeds together with utmost delicacy in product handling. The system can be configured with one, two or three gripping modules and it is completely automatic. All of the changeover operations are carried out by means of the operator control panel and do not in any way require manual mechanical operation. The four Twisterbox® systems installed in Canlubang are associated with the high level infeed Faster model palletiser.

Rocket pallet stretchwrapper with electronic pre-stretching system.

preparation of the layer. The two single-format lines of 81.000 bph are each handled by a model with two gripping pliers, whilst

Rocket Pallet Stretchwrapper All the lines finish with a rotating pallet shrinkwrapper Rocket model equipped with a one meter high reel and automatic change over system of the pre-stretching group. The distinctive element of the system is the electronic pre-stretching group, which, thanks to specific algorithms, is able to handle the plastic phase of the film granting high stability of the pallet and a minimum consumption of material. The system reaches a maximum pre-stretching value of 400% and can be accessorised with both the antidust or the hermetic “waterproof” type system. J

Beverage Processing Technology and Solutions From Della Toffola Group he DELLA TOFFOLA GROUP proT duction range is now distinguished by its unrivalled quality and completeness based on a variety of technological solutions that meets the needs of the entire beverage production and packaging cycle.

Choosing DELLA TOFFOLA means opting to work with a strongly-integrated group of 9 production facilities complemented by 6 clusters and customer support branches that have technology in their DNA. DELLA TOFFOLA offers its Model CFKN, CFKI, CFKA, and OMNIA crossflow filters with ceramic membranes, all of which embody a consolidated constructive concept that minimizes dead times and eliminates the inconveniences that may

occur using organic membranes.

The cost of the precious material used is amply justified by the guarantees it offers, such as exceptionally long operation, excellent chemical compatibility, high resistance to both temperature and pressure, and outstanding tolerance to washing and sanitization agents.

SWAN new short-pipe electro-pneumatic isobaric fillers are the latest innovation from AVE TECHNOLOGIES that stand out for their special features of functionality

and constructive quality.

These systems are suitable for throughputs of up to 80,000 bottles/h and are engineered with “clean design” philosophy; further to the point, all components are produced in stainless steel. J

Rexam Creates Personalised Can For Coca-Cola Italia exam, a leading global can maker, has partnered with Coca-Cola R HBC Italia to create a range of limited edition cans for the Coca-Cola Italia ‘Share a Kiss’ summer campaign. The standard

330ml cans, created specifically for distribution in vending channels, use Rexam’s innovative first-to-market, patent pending Editions™ technology, which allows for up to 24 designs to be printed simultaneously on a single pallet.

The personalised cans display 12 different Italian terms of endearment, including ‘Bella’, ‘Stella’ and ‘Numero 1’, designed to encourage the target audience of teenage girls and boys to ‘Share a Kiss’.

Agnese Filippi, Brand Activation Manager at Coca-Cola HBC Italia, says: “We have a great relationship with Rexam having worked with them on several projects in the past. Rexam’s Editions™ technology is perfect for bringing to life the ‘Share a Kiss’ campaign, giving consumers a reason to engage with our brand over beverage competitors.” J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

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Innovation on the Menu at London’s Biggest Packaging Event hose working in the FMCG industry will have masses to see at Packaging T Innovations and Luxury Packaging London 2015, which takes place at Olympia London on 16 & 17 September. The exclusive two-day event will enable buyers to discover new ways to improve the appearance of their products, reduce environmental impact or simply find the next iconic packaging.

For visitors attending the 2015 show, there’s plenty of inspiration in store with 170 exhibitors signed up for 2015, including Curtis Packaging, VCG Kestrel, AEGG Creative Packaging, International Paper, Pakmarkas, Alexir Packaging, Staeger Clear Packaging and Schur Star Systems.

Also on show will be Addmaster, giving visitors a sensory stimulation, with its Scentmaster fragrance technology. Smell is perhaps the most evocative emotion, so this technology has been designed to keep the fragrance in your product, or deodorise unwanted smells, making it more appealing to customers. Manufactured in a unique way it ensures all the fragrance is protected, allowing it to deliver the subtle top notes of a high quality scent.

Abbey Labels, will be unveiling its range of self-adhesive labels, which will include specialist labels such as Scratch-off, 5 page peel & reveal, plus its own-brand range of food and drinks labels.

International exhibitor, Bedford Industries, returns to London to capture the visitors’ attention, with its latest range of products to help increase shelf stand-out.

It will be demonstrating its one-of-a-kind ElastiTag, a special elastomer loop that grips the product, for example the neck of a bottle, and stays in place allowing the tag-

Business Development Director, for the new vodka brand, Sauvelle, will then discuss how to go about launching a small independent brand into the market and the importance of packaging. Worthington comging of uniquely shaped items.

Lightning Packaging will be presenting its latest innovation, Korrvu. It is a special, super-tough film, which cradles your product when in transit, preventing the contents from touching any external forces which might cause damage. The flexible super-tough film allows for a wide variety of shapes and sizes to be packaged using only one size, further reducing the costs and storage space, plus it is 100 percent recyclable.

The Drinks Symposium More than just an exhibition, the 2015 show has more content than ever before, including the return of the ever popular Drinks Symposium, which will be headlined by Sauvelle, a new crafted French vodka, and Funkin Cocktails.

The Drinks Symposium, happening on day two of the show, will see leading drinks brands share their ideas and knowledge on how original thinking and imaginative packaging design can create a strong brand identity and desirability.

Offering visitors real-life stories, advice and the latest concepts sweeping the drinks industry.

First to the stage will be Andrew King, Managing Director, at Funkin Cocktails, who will be lifting the lid on the company’s new packaging, which is set to be rolled out in the coming months across its expanding range of products. The new design is set to create a unified look that will make it unmistakably recognisable across the on- and off-trade.

Nick Worthington, Brand Marketing and

ments: “We’re looking forward to talking at the Drinks Symposium and sharing our experience in the creation and launch of a new independent luxury brand.”

Educational Learnshops Running alongside The Drinks Symposium will be an array of educational Learnshops spanning every aspect of packaging delivered by world-class industry experts, including Haulwen Nicholas, Packaging Development Manager, at Müller who will be addressing ‘How do we find the next generation of packaging innovators?’

Divulging how the sector can promote itself to a new generation of young professionals.

Plus Atty Hussein, Operations Director, at Liberty, will be explaining ‘How to use your packaging brand to make an impact on the high street, whilst retaining costs’.

New Show Features The show also boasts a host of new show features, including The Live Design Challenge, The Great Innovation Debate and The Innovation Wall. Plus there will be a return for The Beauty Symposium, with top name speakers including Jason Russell, Managing Director & Co-Founder of Magentity.

Registration is now open for Packaging Innovations and Luxury Packaging London 2015. To register for free, please visit www.easyfairs.com/PI-London, www.easyfairs.com/LuxuryPackaging or contact +44 (0)20 8843 8800. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

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I CAPS & CLOSURES

Global Closure Systems’ Powerful Dispensing Innovations For the Food & Beverage Markets o sustain its position as the greatest global supplier of plastic disT pensing systems, GCS develops innovative valve closures and revolutionizes the packaging industry. Across product lines going back more than a century and 21 factories all around the world, GCS provides state-of-the-art closure solutions to blue chip companies for the Beverage, Food, Health Care, Household, Personal Care and Wine & Spirits markets.

Well known for its expertise on integrated valve closures, GCS offers the ultimate in packaging performance for a wide range of product applications such as condiments, sauces, dressings, edible oil, vinegar, honey, jams, syrups, beverages.

GCS allows consumers to use products as they see fit and anticipates the increasing demand of premium packaging.

Superior Dispensing & Cleanliness as Hallmarks For the past few years, trends are emerging towards more convenience, controlled use and eco-friendly packaging. To respond to consumers’ expectations, GCS has come a long way from a general screw cap to a valve dispensing closure. With consumers of every age and category, plastic closures are no longer just about adding safety. They are now an integral part of the user experience.

Best-in-class Valve and Unique Assembly Method GCS has developed a large range of high quality silicone valves with exceptional slit quality and seal integrity - each valve having its own specificities and characteristics.

Recently, GCS has designed and patented a snowflake Valve Sub Assembly. This best-inclass dispensing solution already adorns GCS’ new standard food closure Magellan.

The new lightweight 55mm valve closure, delivers optimum dispensing and sealing operations, providing enhanced convenience to consumers with controlled, precise dosing and a stay clean performance. It offers excellent flow control and a clean cut-off for a wide range of product viscosities.

The On the Go Life Style Consumers want to enjoy their favourite drinks anytime, anywhere.

Demand for beverage enhancers and sports closures is booming.

GCS has designed new dispensing solutions for liquid beverage enhancers to bring convenience to the consumers.

Packaged in small, convenient, portable, squeezable containers, water enhancers allow users to customize the intensity of the flavouring in otherwise plain water.

Its key element is a silicone valve which is specifically designed to perfectly match the product formulation and provides a single, straight directional stream, as well as consistent and rapid cut-off.

No drip. No spill.

Amongst recent projects, GCS has developed a bespoke closure solution to help food and drink giant Nestlé satisfy the lifestyle expectations of “on-thego” coffee drinkers in North America with the launch of its new Coffee-mate® 2GO™ creamer range.

GCS has also developed a wide range of innovative flip-top sports closures, available with an integrated silicone valve, to enhance the consumer experience with an automatic non-spill feature and the best product flow control.

A New Generation of Sports Caps GCS has designed a new generation of sports caps with a translucent polypropylene body, incorporating an IP protected integral tamper evidence on first opening. When the flip-top is pushed open for the first time the band’s bridges break automatically, the lower section then drops to the base of the spout and is retained there as permanent evidence of opening.

Highly visible due to the color differentiation and non-detachable, the integrated tamper evident red band is completely inaccessible and therefore inviolable.

Easy to hold, open, use and reseal, GCS sports cap has been tailored to consumers’ needs and lifestyle. It is ideal for mineral water, juices and energy drinks.

Moreover, a 180º hinge offers a clear view of the target and less risk of lid interference during dispensing.

Design Consideration The valve choice has to result from the perfect combination with product formulation and container design/material to provide the ultimate experience with superior dispensing and cleanliness.

With over 1 billion valve closures produced each year worldwide and a dedicated expert centre dedicated to dispensing systems, top leading companies can rely on GCS’s strong expertise. J

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I CAPS & CLOSURES

Bericap’s New Closure For Edible Oil and Vinegar he recently introduced CTC IP 29/19 T and CTC IP 29/20, developed and produced by BERICAP Spain, are trendy new closures for the edible oil market delivering both cleanliness and functionality. The newly designed closure is unique – and a filled product appearing with such a classy closure on the shelf is bound to attract consumers and generate sales.

Besides its elegant appearance, the closure also scores with other attributes that increase convenience for the consumer.

The tamper evidence band is designed for left and right-hand opening. Once the flip

top is opened with just the thumb, a sec-

ond tamper evidence function in the form of a tear-off membrane safeguards product integrity. Easy pouring is supported by an integrated marguerite flow control. After pouring, a non-drip lip keeps the neck clean from oil, ensuring the bottle remains clean as well.

Re-closing is as easy as re-opening – one thumb is all that is needed.

The new 2-piece closure is available in two different colours. The outside shell can be a different colour to the marguerite flow control inside. The new closure has recently been introduced by a leading filler of vinegar in Germany. J

63mm E-cap Pip & Nut With IML ornelis has provided the new closures K for Pip & Nut food products. Pip & Nut produces ‘tasty natural nut butter’ products and currently sells within the UK market. A small start-up firm receiving significant media attention, Kornelis' cap jibes well with Pip & Nut's progressive environmental awareness, offering a cap that requires less energy and fewer raw materials to produce and results in less waste and reduced transportation costs.

Pip & Nut chose the 63mm version of the E-cap as the ideal lightweight closure for its peanut, almond, and coconutalmond butter products. The closures are approximately 30% lighter than regular closures of the same size and can be paired with Kornelis' ingenious IML technique.

Hence, apart from being definitively ergonomic, the cap offers a premium look to the package that elevates it sufficiently for the high street UK market. The raw material and label used consist of the same

material, making the closure 100% recyclable. This is an important advantage to sustainability numbers compared to a closure with a label made of paper.

Closures using IML are thus far uncommon in the closure market, and offer a great opportunity for a product to stand out on the shelf. Using IML ensures the maximum quality of print on the packaging, as the offset printing technique ensures high-resolution images in up to eight colours. IML closures are scratch resistant, durable, hygienic, and offer shorter production times and lower production costs as they effectively remove a step in the production process.

According to Dave Bustra, Kornelis' Commercial Director, the Pip & Nut closure is a significant, innovative item that meshes perfectly with the luxury image the product offers: "With luxury packaging in the highest segment it's important that the charisma of the product conveys the fact

that it offers only the finest quality. The consumer has to get that feel good feeling when he/she sees it, and this is what we provide on a product with an in-mould label like Pip & Nut," he says. J

Success For On-the-go Skyr elling a dairy product for eating onS the-go in a smart pack from RPC Superfos has been a huge success for Danish food company Logismose. To meet increasing demand for breakfast that can be consumed on the move, Logismose has launched a healthy and low-fat organic skyr, a yoghurt product rich in protein and based on Icelandic dairy tradition.

The skyr is available in three different 18

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

flavours, packed in RPC Superfos’s EasySnacking™ packaging solution.

Injection moulded in polypropylene, EasySnacking™ features attractive smooth lines and gives a soft impression, quite similar to the texture of any dairy content. The spoon is in one piece, integrated in the lid and placed under a selfadhesive peel-off label. For further information visit www.rpc-superfos.com. J

COVER STORY

European Dairy Processors Invest For Future Growth in an Unpredictable Market Now facing increased competition following the abolition of EU milk quotas in April 2015, Europe’s top dairy processors have been investing in additional capacity to handle the expected increase in milk production, while consolidating their positions through mergers and acquisitions as they seek to expand further into emerging markets with stronger growth potential. urope is already the al growth for many years, is parworld’s largest cheese ticularly worrying for Europe’s exporter and the recent major dairy processors, most of heavy investment in dry which have developed significant dairy ingredients processing will business there, and this uncerfurther strengthen its standing tainty seems destined to continue and competitive position in the over the short-term. China is the global milk powder and whey world’s largest infant formula powder markets. However, market. although the long-term market outlook remains bright with conGlobal Dairy Market sumption of dairy products growGlobal dairy market prices have ing globally and benefiting from a been under severe pressure since marked shift to more added value last year when commodity prodproducts, in both consumer maructs imports into China started kets and industrial ingredients, to stagnate and the Russian European milk processors face embargo on EU dairy products Peder Tuborgh, chief executive of Arla Foods. significant challenges. was introduced. In conjunction Market deregulation and liberalisation are reshaping the nature with the fall in demand, European milk production has increased of the European and global dairy markets, leading to intensifying following the abolishment of the EU milk quotas in April 2015 competition amongst processors and manufacturers, and resulting while production has also risen in New Zealand and the US. This in wild volatility in global dairy products prices. surplus of milk on the world market has resulted in a sharp decline

E

Pressure on Profit Margins The changing nature of the retail market, characterised by the growth of private label products and the discount sector, is exerting downward pressure on dairy processors’ profit margins. These pressures are forcing further industry consolidation as dairy processors merge in order to achieve economies of scale.

This situation has been compounded by the Russian sanctions on EU agri-food products and the economic slowdown in many emerging markets for dairy products, especially China which is experiencing a major deceleration in manufacturing activity, severe dislocation to its stock market and the prospect of further devaluation of the Yuan.

The problems in China, the world’s second largest economy and the powerhouse of glob-

Table One: Top 10 European Dairy Companies, 2015 Company 1 Nestlé 2 Lactalis 3 Danone 4 FrieslandCampina 5 Arla Foods 6 Unilever 7 Sodiaal 8 DMK 9 Savencia (formerly Bongrain) 10 Muller

Country of Headquarters Switzerland France France Netherlands Denmark/Sweden Netherlands/UK France Germany France Germany

Dairy Turnover 2014 (€ billion) 20.9 14.7 14.6 11.1 10.3 5.8* 5.4 5.3 4.6 3.8*

Source: Rabobank, 2015. Turnover data is dairy sales only, based on 2014 financials and M&A transactions completed between 1 January and 15 June 2015. *Estimate

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

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in the price of dairy products both within the European Union and globally. For instance, the market commodity price for whole milk powder has dropped by 53.1% since the start of 2014 and prices have fallen to 2009 levels.

“The global dairy market has rarely been as unpredictable as now, and unfortunately 2015 is proving to be as challenging as we anticipated,” says Peder Tuborgh, chief executive of Arla Foods, the European dairy co-operative that is owned by 12,700 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxemburg and the Netherlands. “Our long-term view is that the market will turn again in the first half of next year.”

The abolition of EU milk quotas means that Arla Foods expects to process an additional 3-4% of raw milk every year. However, the depressed global dairy market has impacted the co-operative’s ability to safeguard the milk price paid to farmers and to deliver value to its owners.

“We have mitigated the impact of the negative market by directing the increasing milk volumes into retail and branded products, consequently limiting the amount going into less profitable commodity products. We are doing everything we can to minimize the effects of the general global market situation, however it cannot change the fact that our farmer owners are in a tough situation right now,” adds Peder Tuborgh.

Arla Foods is also focusing on active cost management across its operations, and concentrating on investments that support expansion in the international dairy group’s strategic growth markets outside the EU.

second and third respectively at a global level.

FrieslandCampina and Arla Foods, which are respectively the fourth and fifth largest dairy processors in Europe, are both top ten players globally, ranked sixth and seventh behind Fonterra Cooperative Group of New Zealand and Dairy Farmers of America.

Emmanuel Faber, chief executive of Danone.

Nestlé along with Danone and Unilever (ranked 6th) are fully fledged food and beverage groups with dairy products representing only one element of their extensive portfolios.

France is the country with the highest number of companies in the Top 10 with Lactalis, Danone, Sodiaal and Savencia (formerly Bongrain) all ranked. Germany has two representatives – dairy co-operative DMK and Muller Group, the German privately-owned food company – as does the Netherlands (Unilever and FrieslandCampina).

Dr Josef Schwaiger, chief executive of DMK.

Closing the Gap Having just agreed to merge with DOC Kaas, the Netherlands' second-largest cheese manufacturer, DMK is closing the gap on Europe’s top five dairy groups. Despite the volatile market environment and falling prices for a number of dairy products, DMK increased turnover by Eur13 million to Eur5.3 billion in 2014 and generated a profit of Eur42 million.

Arla Foods’ strategy of expanding the proportion of added-value and branded products within its overall sales volume to increase operating profit, while also focusing on improving production efficiency, is one being emulated by many of Europe’s other major dairy processors, especially the many co-operatives.

Table Two: EU Dairy Investment by Country (€) Europe’s Top Ten Dairy Companies Country Investment The top ten players within the European dairy industry, according to turnover, are listFrance 1.09 billion ed in Table One, which is based on Germany 1.02 billion Rabobank’s ‘Global Dairy Top 20, 2015’.

Netherlands 870 million Nestlé is Europe’s top dairy processor and Ireland 580 million also the largest player globally, according to UK, Denmark, Poland, Italy, Spain 200-500 million Rabobank. The only change in ranking from Other EU Member States Less than 200 million the 2014 league table is that Lactalis Group leapfrogged Danone to claim second place.

Dairy investments announced or finalised between 2012 and June 2014. Source: CNIEL Both Lactalis and Danone are also ranked FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

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DAIRY

Fonterra and Royal A-ware Open New Partnership Site in the Netherlands New Zealand-based dairy co-operative Fonterra and Dutch cheese manufacturer Royal A-ware have officially opened their new site at Heerenveen in the Netherlands.

Heerenveen consists of two plants side by side - A-ware’s plant produces cheese for its customers in Europe, while Fonterra’s plant processes the whey and lactose from Aware’s plant, as by-products of the cheese-making process.

The 25-hectare site represents a significant investment and will give Fonterra cost-effective, reliable and continual access to high-quality whey and lactose, to use in manufacturing high-value paediatric, maternal and sports nutrition products.

It is Fonterra’s first wholly owned and operated ingredients plant in Europe, processing one billion litres of milk each year, and producing 5,000 metric tonnes of whey protein and 25,000 metric tonnes of lactose annually. The partnership increases Fonterra’s ability to access a globally traded whey protein and lactose market that was worth more than NZ$2.7 billion (Eur15.4 billion) in 2014.

The site is an integral part of Fonterra’s long-term strategy for building global milk pools.

“Our strategy is a good fit with A-ware’s long-term vision, so it’s a win-win for both companies and it’s great to see the partnership come to fruition,” explains Theo Spierings, chief executive of Fonterra. “We have substantial intellectual property in manufacturing functional whey protein ingredients, and having a high-quality, high-volume source based in Europe will allow us to commercialise these innovations for our customers all over the world.”

“This strategic partnership logically connects two successful businesses so they can optimally align their chain from consumer to cow, thereby effectively meeting the demands of the end-user,” says Jan Anker, chief executive of Royal A-ware.

His Majesty the King of the Netherlands Willem-Alexander (centre) officially opening the new premises of cheese manufacturer Royal A-ware and dairy co-operative Fonterra in Heerenveen.

Also pictured are Theo Spierings (left), CEO of Fonterra, and Jan Anker (right), chief executive of Royal A-ware.

The Germany dairy co-operative’s development strategy is based on three pillars - a broad product portfolio, modern production facilities and an increased presence in international growth markets.

Dr Josef Schwaiger, chief executive of DMK, comments: "With a

turnover that is actually slightly higher than last year's and an improved equity ratio of 37.5 percent, we are on a very sound footing economically. On this financially secure base, we are well positioned for future market fluctuations and further investments. In a highly volatile market, we have demonstrated that we are on the right track as Germany's largest dairy cooperative."

The focus is on profitable growth in DMK’s four strategic business units - Dairy Products, Cheese, Ingredients and Subsidiaries in the German and international markets DMK has prepared well for the abolition of EU milk quotas. "A survey of our dairy farmers revealed that we can reckon with a regional annual increase of up to four percent in milk volumes," says Dr Schwaiger. DMK is seeking to significantly increase export sales, which currently account for about 40% of turnover, by developing new outlet markets in Eastern Europe, Asia, Africa and South America. In line with this approach, DMK opened a new sales branch in Dubai in the first half of 2015.

Pictured at the opening of ArNoCo’s new production facility in Northern Germany are (from left to right): Peder Tuborgh, chief executive of Arla Foods; Christine Holt from SPX; architect Peter Klinck; and Dr Josef Schwaiger, chief executive of DMK Group.

Advanced Processing Technology In the past three years, DMK has invested more than Eur500 million in the develop-

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ment of advanced production and processing new Eur110 million powder and butter facilitechnology to establish an efficient network ty at its largest production site at Pronsfeld in of dairy production plants. DMK is currently Germany, and the completion of a new £150 building one of the most modern and effimillion fresh milk dairy in England which is cient milk powder plants at Zeven (Lower the most efficient, fresh milk processing facilSaxony). In Edewecht (Lower Saxony), DMK ity of its kind in the world. operates Europe’s largest cheese factory.

In Ireland, Glanbia Ingredients Ireland, the DMK has established a new mozzarella country’s largest dairy ingredients company, cheese factory in Georgsmarienhütte (Lower is nearing the completion of a Eur235 milSaxony), which will meet the demand from lion investment programme, including the growth markets such as Asia. construction of Eur180 million state-of-theDMK has been developing its network of art nutritional ingredients plant. “It is the dairy processing facilities in such a way as to largest single dairy investment in the history be able to handle the extra milk volume from of the State and the largest infrastructure its 9,000 farmers but yet react very quickly to investment by an indigenous company since market fluctuations, such as the EU trade 1929,” points out Jim Bergin, chief executive embargo on Russia, which has significantly of Glanbia Ingredients Ireland. “Thanks to impacted cheese sales. DMK managed to Damien Lacombe, president of Sodiaal. cutting edge technology, the plant will proadapt quickly to the change in market condiduce a range of nutritional ingredients which tions by redirecting raw milk into dairy products and ingredients to are top quality and low micro, ensuring a suitable application create added value. “This redirection is made possible by our inter- across a range of infant and clinical nutrition industries.” linking network of plants,” points out Dr Schwaiger. “Our network Glanbia Ingredients Ireland, which is a joint venture between of plants in Germany is structured in such a way that if demand Glanbia plc, the global nutritional solutions and cheese group, and changes, milk quantities can be redirected to other plants and thus farmer-owned Glanbia Co-operative Society, expects to process an other product groups in the short-term.” additional 15% milk volume from its suppliers in 2015 versus DMK aims to further expand its earning power through alliances 2014. and strategic partnerships. For instance it has established ArNoCo, New Zealand-based Fonterra, the world's leading dairy exporter, a joint venture with Arla Foods with each owning 50%. ArNoCo recently opened its first wholly owned and operated ingredients commenced production last year at DMK's Nordhackstedt site and plant in Europe in a joint venture enterprise with A-ware Food processes the whey produced by DMK's cheese-making operations Group, the Dutch cheese manufacturer (see Panel).

– around 700,000 tonnes every year – to make whey protein concentrate and lactose.

Ongoing Investment Indeed, investment is still ongoing. Sodiaal, which is France’s €5.5 Billion largest dairy co-operative, has recently embarked on a Eur600 milInvestment lion investment programme spread over six years to expand and Most of the top ten diversify its activities while substantially increasing exports. In dairy processors, includ- 2014, Sodiaal generated a turnover of Eur5.4 billion with about ing Lactalis, Friesland 25% earned abroad. "The first results can already be seen, and we Campina, Arla Foods, have achieved commercial export success,” says Damien Lacombe, DMK and Muller, have president of Sodiaal. “We have set a target of doubling our gross been investing heavily operating surplus (which stood at Eur93 million for 2014), and to to boost capacity in increase the proportion of our turnover earned through exportation preparation for the abo- by 2020.” lition of EU milk quoHaving invested Eur2.5 billion (of which approximately 70% tas. They have been was in the Netherlands) since 2009 in property, plant and equipamongst 120 compa- ment to expand capacity and further improve quality in preparanies, which have invest- tion for the abolition of the EU milk quota regime, including ed a total of Eur5.5 bil- Eur656 million in 2014, FrieslandCampina expects to spend lion in 190 projects to Eur600 million this year. The majority of the current investment Jim Bergin, chief executive of Glanbia expand dairy processing relates to quality improvements and capacity expansion and will Ingredients Ireland. capacity across the EU contribute towards FrieslandCampina’s ability to process the between 2012 and June increasing quantity of milk from member dairy farmers. During 2014. Almost half of the total investment was spent on the process- the first half of 2015, FrieslandCampina expanded production ing of dry dairy ingredients such as milk and whey powders, with capacity for butter-oil at its butter facility at Lochem, installed a the majority of these facilities in the Netherlands, Germany, new packaging line for dairy-based beverages at the site in Aakter, Ireland and France. and completed the first phase of the new FrieslandCampina Other key product categories to receive investment include Ingredients Eur135 million construction programme for a produccheese (Eur1.02 billion or 18% of the total investment figure), tion facility for special milk powders and ingredients at Borculo. milk and dairy drinks (Eur650 million or 12%), yoghurt and The Borculo facility is expected to be fully operational in midchilled products (Eur330 million or 6%) and butter (Eur100 mil- 2016. lion or 1.8%).

However, some France (Eur1.09 billion), Germany (Eur1.02 billion), the dairy processors have Netherlands (Eur870 million) and Ireland (Eur580 million) were scaled back on investthe four leading countries in terms of investment in dairy process- ment in light of curing between 2012 and June 2014, followed by the UK, Denmark, rent global market Poland, Italy and Spain, where between Eur200 million and conditions. Arla FoEur500 million was spent (see Table Two). ods has reduced capiNotable investments of this nature include Arla Foods opening a tal expenditure for FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

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For more information email ft.enquiries@spx.com or visit www.spx.com Seital Separation Technology

2015 and has postponed a number of projects until the dairy market improves. The dairy group is focusing on investments that support the development of its strategic growth markets outside the EU which enables it to channel additional owner milk into branded products.

“When times are challenging for our owners, it is essential that we keep a firm grip on our costs. For this reason we have reduced investments by 30 per cent and are continuing to streamline the organization vigorously and control costs. Our ambition is to achieve total savings from cost programmes of Eur330 million before the end of 2015 compared to 2012 – and we are on track to do so,” says Peder Tuborgh.

Europe is already the world’s largest cheese exporter and the recent heavy investment in dry dairy ingredients processing will further strengthen its standing and competitive position in the global milk powder and whey powder markets.

International Growth As well as expanding domestic production capacity, the top European dairy groups have also been using acquisitions and Roelof Joosten, new chief executive of Royal joint ventures to FrieslandCampina. extend their presence internationally, particularly in fast growing, emerging markets. For example, Lactalis recently entered India, the world’s largest producer of milk and milk products, following the acquisition of Tirumala Milk Products, the second largest private dairy company in South India, in a deal believed to be worth between $250 million and $300 million.

Lactalis, through its Parmalat business, has also just completed the US$700 million acquisition of Elebat Alimentos, Brazil’s third largest dairy business, to significantly strengthen its standing in developing dairy markets. Parmalat, which has been controlled by the Lactalis since July 15, 2011, operates facilities in Europe, the Americas, Africa and Australia.

Joint Ventures In line with its strategy of accelerating growth outside its European core markets, Arla Foods has established a new subsidiary in Australia in co-operation with Australia’s largest cheese importer, F

Danone has been struggling in Europe following a slowdown in sales precipitated by the economic crisis and has been restructuring its European Fresh Dairy Products business.

Mayer Imports, with the ambition to multiply its revenue in Australia fivefold. In Egypt, Arla Foods has formed a similar alliance with local dairy company Juhayna.

Arla Foods is also continuing its expansion in Africa through two new joint ventures in Nigeria and Senegal. Arla Foods has ambitions to increase its annual revenue in sub-Saharan Africa from about Eur90 million to Eur460 million by 2020. This is to be achieved initially through sales of powdered milk and liquid milk, which is in high demand among the rapidly growing middle class in and around the big cities, and eventually also butter and cheese.

Meanwhile, FrieslandCampina has established a joint venture in China - Friesland Huishan Dairy – paying Eur104 million for a 50% stake in the business. The joint venture is owner of a modern production facility in Xiushui and intends introducing a new brand of infant nutrition to the Chinese market. The deal offers FrieslandCampina a growth platform in the strategic growth region of Asia.

In addition to its joint venture with A-ware in Europe, Fonterra has also formed a strategic partnership with Dairy Crest, the leading UK-owned dairy foods company. The agreement will entail Fonterra marketing and selling products made by Dairy Crest for the fast growing global infant formula market. Dairy Crest is investing £45 million in a new facility to manufacture demineralised whey powder, the base ingredient in infant formula, produced from the whey generated at its cheese making factory at Davidstow in Cornwall. Fonterra will receive a commission to sell all of Dairy Crest's demineralised whey production and will also provide technical and engineering support. The agreement is for a minimum of five years.

New Leadership Three of the Top Ten European dairy companies – Danone, FrieslandCampina and Muller Group (Unternehmensgruppe Theo Müller) – have changed chief executive during the past twelve months.

Emmanuel Faber became chief executive of Danone last October, replacing Franck Riboud, who has retained his position as chairman. Dairy remains a core element of Danone’s business – the group is the world number one in fresh dairy products and ranks second in early life nutrition. With sales of Eur11.1 billion in 2014, Danone’s Fresh Dairy Products division generates 52% of group sales with the Early Life Nutrition division contributing sales of Eur4.4 billion or 21% of the total. Danone’s other two business units are Waters and Medical Nutrition.

However, Danone had a tough year in 2014, reporting a fall in sales and trading margins. Danone has been struggling in Europe following a slowdown in sales precipitated by the economic crisis

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ing our operations carefully through the current transition, to get growth back on track while pursuing investments to develop the category.”

Danone’s financial targets for 2015 are organic sales growth of between 4% and 5%, and a slight rise in trading operating margin.

“What we’re doing is a revolution,” remarks Emmanuel Faber. “It’s a slow revolution, but it’s still a revolution.”

Seamless Transition at FrieslandCampina Roelof Joosten is the new chief executive of FrieslandCampina, having succeeded Cees ’t Hart, who is now president and chief executive of Carlsberg Group, on 1st June. Roelof Joosten has been entrusted with continuing to implement FrieslandCampina’s ‘route2020 strategy’, which was successfully devised and rolled out under his predecessor. At the heart of the strategy is maximising the value of all the milk produced by the co-operative’s Arla Foods has invested Eur110 million in the construction of a new milk drying tower, a new creamery and member dairy farmers. Key performance additional milk preparation and processing capacity at its Pronsfeld site in Rhineland-Palatinate. Pictured objectives include increasing the proportion from left: Jurgen Wolff, site director of Pronsfeld Dairy; Peder Tuborgh, chief executive of Arla Foods; Malu of added-value and branded products in the Dreyer, Chief Minister of Rhineland-Palatinate; and Tim Orting Jorgensen, executive vice president and total sales volume, advancing operating profit head of Arla Central Europe. growth and achieving a substantially higher performance premium and return for the and has been restructuring its European Fresh Dairy Products busi- member dairy farmers. FrieslandCampina focuses on three growth ness to regain its competitive edge and to adjust to the new trading categories - dairy-based beverages, infant nutrition and branded environment. cheese.

FrieslandCampina made further progress towards its ‘route 2020 Directional Change in China strategy’ goals in the first half of 2015, as Roelof Joosten was able Although still benefiting from Chinese demand for international to report an 81.5% jump in operating profit to Eur314 million on infant formula brands, Danone has now changed its strategy in the flat revenue of Eur5.645 billion. The operating margin improved region following a food safety scare involving its Dumex baby for- by 2.5 percent points reflecting the sale of more products with a mula brand in China and eight Asian markets in 2013. This has higher added-value, positive currency translation effects, lower purentailed selling its Dumex business to Yashili International chasing costs and the lower guaranteed price for raw milk.

Holdings, one of China’s top ten infant formula manufacturers, to Although volumes were lower in Western Europe due to difficult build a strong local brand platform. Danone, which owns 25% of market conditions, the dairy co-operative achieved growth in Yashili, is using the proceeds from the sale to increase its stake in China, Hong Kong, Indonesia, Africa, South-east Europe and in State-backed milk producer China Mengniu Dairy Co, which owns the FrieslandCampina Ingredients business group.

51% of Yashili. China is Danone’s fourth largest market, account“In the current uncertain markets we were able to achieve a good ing for about 7% of group sales in 2014. result,” says Roelof Joosten. “This proves the success of the In addition to playing a role in the further consolidation of the route2020 strategy, aimed at achieving sustainable growth and still fragmented Chinese infant milk formula market, Danone is value creation, which we have followed since 2010. Thanks to our also focusing on e-commerce in China as about a third of con- strong market positions and cost reductions we have managed to sumers there now shop on line. “We are reinventing our business in compensate the drop in the guaranteed price for the member dairy China,” says Emmanuel Faber. farmers to an extent in the milk price. As a result we will be able to The French food and beverage group has started the first half of the 2015 financial year solidly with organic growth of 4.6% and half a percentage point rise in trading operating margin in line with its ‘Danone 2020’ road map for returning to profitable, sustainable growth and enhancing its brands.

“In Europe, where margins rose significantly, we are executing an overhaul of our Fresh Dairy Products business and finalising the conditions necessary for a return to growth,” says Emmanuel Faber. “In China, we are strengthening our Early Life Nutrition business model, building on the success of our international brands and reinforcing our partnership with FrieslandCampina has completed the first phase of the new FrieslandCampina Mengniu and Yashili. In the CIS Ingredients Eur135 million construction programme for a production facility for and in North America, we are guid- special milk powders and ingredients at Borculo.

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Ronald Kers, chief executive of Muller Group.

pay the member dairy farmers an interim pay-out of just over 2.00 euro.”

Under Roelof Joosten’s leadership, FrieslandCampina is continuing to expand its international influence. In June, the international dairy co-operative spent Eur182 million to increase its stake in its subsidiary FrieslandCampina WAMCO Nigeria from 54.6% to 67.6%.

FrieslandCampina WAMCO has been a key player in Nigeria since 1954. “The size of the market, the growth outlook and the commitment of the Nigerian people to bolstering the stability and economy of the country are the reasons why FrieslandCampina will continue to invest in its subsidiary FrieslandCampina WAMCO,” says Roelof Joosten.

New Head at Muller Muller’s new chief executive is Ronald Kers, who has replaced Heiner Kamps, the head of the German group since 2011. During his time in charge, Heiner Kamps helped transform Muller from a dairy company with over Eur2 billion in annual turnover and about 5,000 employees into an international food company with an annual turnover of around Eur5 billion and 21,000 employees.

Ranked tenth in the European Top 20, Muller has been expanding rapidly outside of its German domestic market in the past three years – particularly in the UK and the US. Ronald Kers was previously chief executive of Muller UK & Ireland Group. Under his leadership, the business completed three acquisitions in the UK since 2012 – the £280 million purchase of Robert Wiseman Dairies, which processes and delivers approximately one third of the fresh milk consumed in Britain, as well as a chilled desserts facility at Minsterley in Shropshire, and private label yoghurt producer Nom Dairy UK. The deals have helped Muller’s UK business to increase turnover from £450 million in 2011-12 to over £1.5 billion today.

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Ronald Kers also oversaw Muller‘s entry into the British butter market by opening its own butter factory in Market Drayton following investment of £17 million.

Muller is currently in the process of acquiring Dairy Crest’s UK dairy business, comprising the fresh liquid milk, flavoured milk including the FRijj brand, bulk and potted cream, bulk butter and milk powder operations. The £80 million deal includes Dairy Crest’s dairy facilities at Severnside, Chadwell Heath, Foston and Hanworth together with around 70 depots.

“We aim to create a more competitive, sustainable, efficient and innovative dairy processor in the UK which will generate real benefits for customers, consumers, employees and suppliers,” remarks Ronald Kers. "We are concerned that the dynamics of the UK fresh milk market are unsustainable for dairy processors in the mid to long term and this acquisition will allow us to reduce our costs, increase our efficiencies and invest in the future."

The deal, which is currently being considered by the Competition and Markets Authority, would give Muller control over about a quarter of milk produced in the UK. Muller has also expanding rapidly in the US after forming a yoghurt joint venture – Muller Quaker Dairy – with PepsiCo in 2012. J

I DAIRY

Hygienic Tubes and Fittings Reduce Contamination Risks as Well as Increase and Improve Yields

By Jimmi Paulsen, Portfolio Manager, Tubes & Fittings, Dairy, Market Unit Food, Alfa Laval ubes and fittings are critical, but often T overlooked, components in most dairy processing lines. With an increased hygienic focus for dairy processing and product purity, dairy producers are now investing in premium-grade as well as pharmaceuticalgrade components to reduce contamination risks and raise yields.

Tubes and fittings account for 90 percent of all the product contact surfaces in dairy processing lines and are therefore of paramount importance for hygiene. Consider that a typical installation has on average three welds per meter. These welds present the highest risk of contamination, and locating the sources of contamination is difficult. Despite this, dairy producers do not always devote as much attention to selecting tubes and fittings as they do to other dairy equipment. To keep processing lines clean, it is therefore important to choose high-quality hygienic tubes and fittings.

Premium Grade: Lower Contamination Risks and Total Cost of Ownership

Consider this: Installing tubes and fittings in dairy processing lines represents about 20% of the total plant installation costs. Of these costs, welding accounts for approxi-

only uses certified raw materials from trusted suppliers for its tubes and fittings and ensures that there are no variations in production batches during manufacturing.

All Alfa Laval tubes and fittings undergo strict quality control procedures at every stage of manufacturing at Alfa Laval facilities. Weld ends are a perfect match in terms of material, tolerance, surface finish and angle for all combinations of tube and fittings. This ensures durable, corrosionresistant and dimensionally accurate hygienic components for your production lines.

Pharma-grade: An Investment that Gives Dairy Producers Peace of Mind Jimmi Paulsen, Portfolio Manager, Tubes & Fittings, Dairy, Market Unit Food, Alfa Laval.

mately 80% of the total. Choosing premium quality hygienic tubes and fittings is therefore key to lower contamination risks as well as the total cost of plant ownership.

Tight tolerances, smooth welds, uniform wall thickness, and highly polished surface finishes that meet or exceed dairy standards contribute to quality, safety and efficiency.

To ensure trouble-free welding, Alfa Laval

Increasingly, dairy producers are choosing pharma-grade tube and fittings to minimize contamination risks and operating costs. In fact, Alfa Laval has seen a 25% increase in dairy plant orders for its range of tubes and fittings for the pharmaceutical industry, Alfa Laval Tri-Clover UltraPure.

Aseptic unions, in particular, have been in demand. It seems that some dairy producers believe that the additional investment in pharma-grade tubes and fittings deliver good return on investment and peace of mind. J

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I DAIRY

Membrane Filtration Headed Toward New Horizons ties in water and environmental applications.

Other growth areas could be juices, nectars, biotech and non-carbonated drinks. The total membrane filtration business showed excellent 2014 results, and future expectations are high, as synergies combined with new opportunities give reason to aim at doubling the target by 2020.

ince membrane filtration was introS duced in the dairy industry in the 70’s, the technology has gone through a relatively long maturation phase. Now fully accepted in most parts of the world and with a proven track of success, virtually all common dairy processes utilize membrane filtration directly or indirectly. The possibility to increase yield, enhance product quality, increase production flexibility, and reduce environmental impact of the process weigh heavily in the investment phase; for some products, membrane filtration is simply the only viable processing solution.

Joined Competences

Current Trends: Milk and Whey Based Ingredients

For some time, high-value milk and whey based ingredients for use in sports nutrition, geriatric nutritional products, weight loss foods, and infant formula have ruled the market. The trend has spurred a development from large, single-application

Niels Osterland, Managing Director of Tetra Pak Filtration Solutions.

Tetra Pak Filtration Solutions also has strong focus on environmentally sound solutions and improved utilization of process water. To further support this strategy, a water competence center will be established Silkeborg Denmark as the hub for developments in water and green technology. The center will provide consulting services to customers on water quality and reuse as well as energysaving measures. membrane filtration plants to multi-application plants, performing the entire process of selecting and refining the valuable components for high-priced milk and whey based ingredients.

Researching For the Future

Tetra Pak Filtration Solutions has a large R&D center with the combined expertise from the US and Denmark. The center ensures documentation of all current knowhow and develops new applications for advanced high-value end products, such as protein isolates as well as new separation technologies for dairy and other sanitary processes.

As part of Tetra Pak’s global growth strategy and in support of other processing business, the company acquired US-based Filtration Engineering in December 2012, and in September 2013 DSS Silkeborg in Denmark. Together with its existing filtration organization, Tetra Pak combined its global competence on membrane filtration for dairy applications into one business unit, Tetra Pak Filtration Solutions.

Tetra Pak Filtration Solutions now employs 130 experts in two locations: one in Champlin USA, serving the US, Canada, and Mexico. The other in Silkeborg, covering the rest of the world. The business unit specializes in advanced polymer and ceramic membrane filtration systems for reverse osmosis, nanofiltration, ultrafiltration and microfiltration, for dairy applications.

Membrane filtration is a complex technology, not a product. Hence, it is essential to have a center of excellence offering expertise and advice to customers, and this setup has proven successful for Tetra Pak. “We expect new geographical markets to open to us, fueled by cooperation between Tetra Pak’s global network of market companies and the center of excellence,” says Niels Osterland. J

Developing the Filtration Business

Irrespective of the current market conditions, membrane filtration will continue to add superior value and utilization of all milk components – in years to come. Niels Osterland, Managing Director of Tetra Pak Filtration Solutions, estimates future growth in the dairy industry at 10 per cent per year, powered by membrane filtration and supported by new opportuni-

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I DAIRY

Take Off For Tomorrow’s Solutions in Membrane Filtration and Microparticulation PX has a full range of processing equipS ment’s for the production of extended shelf life (ESL) milk including UHT, separator and membrane technology. This article focuses on the SPX Microfiltration technology, which efficiently and effectively remove bacteria and spores from skim milk to provide a significant extension of shelf life, compared to traditionally pasteurised products.

A superior taste profile in microfiltered milks gives strong branding advantages for customers requiring the “fresh tasting products". The microfiltration membranes utilized for ESL-milk applications have very precise, narrow pores, which secures the physical removal of potentially damaging bacteria, and spores, which would normally damage the products and decrease the shelf life of the product. As a result, utilizing MF in cheese milk, provides the customer the option to produce cheese without the added nitrate.

SPX ProFrac™ Technology

Within SPX’s suite of membrane-based innovations is the ProFrac™ technology.

This is one of the most advanced membrane processes for the fractionation of casein rich milk proteins and whey proteins to enable optimum utilization of the individual fractions. It is based on microfiltration and uses either spiral wound or ceramic membranes to selectively remove whey protein from milk prior to producing native casein for the production of various ingredients and cheeses.

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With an increasing market demand for whey proteins, the dairies are now forced to look for alternative processes for obtaining valuable whey proteins, and this is where the SPX ProFrac™ technology plays an important role. The ProFrac™ process benefits cheese manufacturers by enabling significant growth in cheese yield and the production of higher value, pure whey proteins; which are ideal for use in various food and beverage products in the growing nutritional and health segment.

SPX also has leading expertise in the design and manufacture of complete process lines for the production of fermented dairy products (FDP) and yoghurt. The use of membrane filtration is growing in popularity in this market area where reverse osmosis plants have developed to offer increasing competitiveness and reliability for the concentrate milk solids. Ultrafiltration is further commonly used in this dairy segment for selective concentration of the milk solids; enabling the increase of protein without significant changes to lactose content.

The LeanCreme™ Process

Another revolutionary SPX technology, the LeanCreme™ process, combines the thermal and mechanical treatment of whey proteins in order to enhance the functionalities of the whey proteins. The one-step process LeanCreme™ plant can transform the whey proteins into accurately sized particles, which can be used to mimic fat globules in milk, or it can be used

for obtaining added/enhanced functionalities, in yoghurts, nutritional protein drinks, ice cream or other applications, where whey proteins are widely used.

It uses the advanced APV Shear Agglomerator (ASA) that produces simultaneous heat denaturation of the protein and the formation of micro-particles of protein under controlled high shear. The synergy between heat and shear brings a new functional dimension to whey protein concentrates and the resulting product provides a desirable creamy mouth feel with a reduced fat content for use in a wide range of food products.

LeanCreme™ is a natural food solution that improves water binding, emulsification and stabilisation properties. It provides benefits such as air whisked desserts with higher foam stability, low fat ice cream with an increased melting down time and higher water binding in cheese for increased yield.

SPX is a leading supplier to the food, beverage and dairy industries. Its continual research and development into membrane filtration and microparticulation technology is based on a close relationship with its customers and understanding of what is needed to ensure they remain competitive into the future.

For further information visit www. spx.com. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

Minimising Product Losses By Better Dryer Design and Advanced Filtration Techniques he elimination of waste in food and T dairy plants provides a long list of benefits: increased yield, reduced power con-

removed more effectively and returned to the process.

sumption, lower emissions, reduced disposal costs, the development of new and valuable products and, in some cases the reduction of water consumption virtually to zero. It’s hardly surprising, therefore that this has become a prime focus for many operators in an effort to edge one step ahead of the competition both in terms of productivity and the effect on the wider environment.

In response to, and as a driver of, customer demand, GEA has directed much of its expertise in recent years to developing ever more efficient ways of reducing or eliminating waste. It is this focus that has kept its technology at the cutting edge of science and its customers as leaders in their markets.

Although water and power conservation are vitally important processing goals, this article looks specifically at the techniques employed by GEA to reduce product losses from food and dairy plants.

24-hour Running

Powder Recovery

The most efficient way to recover waste powder from dryers is to avoid its creation in the first place. In recent years, dryer design has taken advantage of the rapid growth in computing power to facilitate Computerised Fluid Dynamics and advanced particle design techniques to manage airflow and pressure drops within the dryer, thereby increasing yields and reducing the loads on filtration equipment.

Simultaneously, advances in sanitary bag filters (such as SANICIPTM from GEA) and cyclone technology mean that any residual powder in the exhaust air can be

Probably the greatest recent advance for the reduction of waste is the increase in the 24-hour capability of drying plants. In the past, drying plants for whole milk or baby formula powders would run for around 20 hours before shutting down for cleaning.

This start/stop process was extremely wasteful in both power consumption and product losses To meet the efficiency and emission requirements of customers, however, today’s GEA plants are being designed with multiple feed lines and twin evaporators allowing the plant to run 24-hours a day with the wet parts of the feed system closing down alternately for cleaning. This reduces the deposits in the plant thereby avoiding product losses and the frequency of down-graded products.

Waste Recovery From Liquid Streams

Even with 24-hour running, wash water streams inevitably contain some residual product. Wash water has a high BOD (Biochemical Oxygen Demand) and may not, therefore, be released into waterways. Advanced filtration systems have the ability not only to recover product suspended in the waste but to purify the water sufficiently for reuse in the process - in some cases making plants self-sufficient in water. Recovering product, such as cheese, in this way has a significant effect on yield.

Microfiltration can be used to remove fats and proteins from CIP (Clean In Place) liquid with nanofiltration removing soluble materials. The process leaves the cleaning chemicals in the wash water allowing it to be reused many times.

In the same way it is possible for salt brines, used in the curing of meat and cheese products, to be rejuvenated by extracting yeasts and mould cells allowing the brine to be reused within the process almost indefinitely and avoiding the need for expensive pasteurisation equipment.

New Product Development

Developments in membrane filtration in recent years have given life to new products that would previously have been considered waste. The cheese making industry, for example, has seen dramatic changes that have created a whole new range of products that have provided significant health benefits to many.

The whey stream from cheese making was at one time considered to be a waste product. Today, however, it is possible to use membrane filtration to separate the proteins in whey to create a family of advanced products. WPC 35, for example, is a cheap substitute for skim milk.

Other products with increasing protein content all have beneficial health properties with the ultimate, WPI 90, being in great demand by body builders and athletes for the fast replenishment of muscle tissue following exercise. It is also an ingredient in infant formula and used for treating degenerative muscle disease in the elderly.

The resulting permeate from WPI production can be treated further with nanofiltration and reverse osmosis to recover vital minerals, mainly calcium and phosphorous, that are high-quality, natural mineral substitutes with high bioavailability. The resulting water can be returned to the process.

Some waste from a food or dairy plant is inevitable. However, the innovations described above, and many more still under development by GEA, have reduced waste dramatically in recent years. The trend continues towards greater efficiency, lower emissions and a better environment for us all. J

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I DAIRY

A Healthy Boost For Sugar Reduction in Dairy ugar content is currently a global focus S in the food and drink industry.

Consumers have turned their attention to sugar and its implications on human health. The World Health Organization (WHO) states that more than 1.9 billion

adults around the world were overweight or obese in 2014. In addition, around 1.5 million deaths were caused by diabetes in 2012. The global rise of these conditions, which both can be linked to consumption of foods high in sugar, has encouraged consumers to re-evaluate their eating habits and look for products with inherent health benefits.

In North America, new sugar-reduced dairy product launches in Q1 2015 alone surpassed the 2014 total. Sugar reduction has become a popular concept for many food producers, whether it is decreasing the amount of sugar in products or substituting it with natural sweeteners, such as stevia.

Manufacturers are looking for methods and ingredients to carve their share in this growing market. One such example is enzymes that enhance the natural sweetness of dairy without compromising on taste.

What is Driving Consumer Behaviour?

Unleashing the Natural Sweetness of Dairy Sugar lactose is the main carbohydrate in milk. Its sweetness can be doubled in a natural way by using the enzyme lactase, which is also present in the human body.

Lactase breaks down lactose into the more easily digested and sweeter forms of sugar: glucose and galactose. These forms have a higher relative sweetness than lactose and create a flavour which is very similar to sucrose. This allows for a sugar reduction of 10-20%, without any additional ingredients. A further reduction of up to 50% is possible in combination with other natural sweeteners.

High Quality Lactase For Optimal Performance The use of lactase can cause challenges in

There is an untapped market opportunity for manufacturers to formulate appealing products that ‘hit the sweet spot’ for dairy. DSM has investigated consumer perceptions and behaviour on sugared dairy. With its Global Insight Series it provides the dairy industry insights into consumer preferences on sugared dairy and an understanding of contemporary food trends.

More info: www.dsm/com/food/whatsnew DSM’s international survey reveals: • 70% pay more attention to the amount of sugar added in dairy than 3 years ago.

• Taste (48%) and artificial sweeteners (36%) are the most important reasons for not choosing reduced-sugar dairy.

dairy processing, such as the presence of invertase – a common side-activity in commercial lactase. Invertase creates instability in sweetness levels, which may lead to loss of sweetness, and negatively affect the flavour of many sugared dairy desserts, such as fruit yoghurts. With that in mind, DSM has developed a lactase enzyme that is free of invertase, as well as arylsulfatase (an impurity in lactase preparation). Maxilact LGi® boosts sweetness levels in dairy, while reducing sugar addition in flavoured milk or sugared dairy without compromising on taste.

By combining Maxilact LGi® with natural flavours or stevia, the amount of sugar can be further reduced up to 50%, which results in a superior sweetness profile. Next to its clean taste and consistent performance throughout the shelf-life, Maxilact LGi® can be easily integrated in the production process, and is suitable for a wide range of sugared dairy applications. For more information: info.food@dsm.com I www.dsm.com/food J

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QUALITY

& HYGIENE

Partnering With the Food and Drink Industry to Develop Tailored Sampling Solutions n the 80’s CSP Technologies developed a Iopen leak-proof, flip-top vial that is easy to and close. The vial continues to be the vial of choice for milk sample collection in the US and Europe, offering the highest level of performance, security and sustainability to the industry.

CSP Technologies tailor the development to customers’ needs, and this prospective approach in designing new concepts leads to some ‘state-of-the-art’ systems.

The one-piece flip-top containers are moulded through a very unique process.

These proprietary moulding processes are based on the ability to close the moulded

vial while it is still in the mould. This provides major benefits like perfect seal integrity or clean processing. Additionally, this dairy sampling vial allows one-hand manipulation whereas the hinged vial is efficient for laboratory automation. This vial design addresses the real challenge of the laboratories - to offer a reliable analysis in the best economic conditions.

CSP Technologies offers its expertise in the laboratory integration; including RFID data management and automation concepts to optimize the use of the company’s specific flip-top hinged containers. CSP Technologies work co-operatively with customers to create a re-engineered laboratory.

The partnership with food and drink industry provides solutions that improve traceability and accuracy of the analysis. CSP Technologies support customers with strong well-experienced resources from concept stage to delivery of the finished product. This will result in cost effective solutions to secure traceability, reduce labour and minimize the use of expensive equipment.

Making a perfect vial remains CSP

Technologies’ core activity, and the company’s goal is to ensure food and drinks manufacturers an uninterrupted supply.

With a strong background in the dairy business, CSP Technologies are able to provide solutions for all liquid or solid sampling applications. If you need more information, please E-mail info@csptechnologies.fr. J

Neogen Launches Veratox HS For Ochratoxin eogen has added to its comprehensive N range of mycotoxin testing solutions with the development of a new, highly sensitive, quantitative test for Ochratoxin.

Veratox® HS (high sensitivity) for Ochratoxin has been developed specifically for the European market to allow users to test quickly and accurately for low levels of the mycotoxin in line with the permitted regulatory levels.

The European Union (EU) limits Ochratoxin levels in cereal grains such as wheat and corn to three parts per billion (ppb) with other countries looking to possibly introduce similar maximum tolerance levels. This new test delivers precise detection of 2–10 ppb of Ochratoxin after only 30 minutes, allowing users throughout the supply chain to make informed decisions with more confidence when nearing the legislative limit.

From grain elevators to food business operators, the responsibility to ensure that food products 40

are compliant with regulations, and therefore safe for consumers, lies with those involved at each stage of the supply chain.

Regular testing can help to ensure food products do not contain mycotoxins above the maximum levels.

This test also serves those looking to import cereal goods to the EU meeting the

legal requirements. Food commodities imported from non-EU countries are required to comply with EU mycotoxin legislation regarding maximum levels. In 2014, twenty percent (20%) of all refused EU food and feed border imports were declined due to overly high levels of mycotoxins.

Veratox HS for Ochratoxin is intended for the quantitative analysis of Ochratoxin in corn and wheat.

The test is a competitive direct enzyme-linked immunosorbent assay (CD-ELISA) that allows the user to obtain exact concentrations in ppb.

For more information on Neogen’s comprehensive range of mycotoxin testing solutions including rapid lateral flow tests and quantitative ELISAs to detect aflatoxin, deoxynivalenol (DON), fumonisin, T-2 / HT-2 toxin and zearalenone simply call +44 (0) 1292 525 625, Email mycotoxins@neogeneurope.com or visit www.neogeneurope.com. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

QUALITY

& HYGIENE

I FLOORS, WALLS & CEILINGS

Flowfresh Floors Attain HACCP International Certification lobal resin flooring manufacturer Flowcrete Group has secured G International HACCP Certification for its Flowfresh range of antimicrobial enhanced polyurethane floors. This certification means that food and beverage producers operating a Hazard Analysis and Critical Control Point (HACCP) based food safety programme can specify flooring materials, safe in the knowledge that they will meet the relevant regulatory authority’s standards for safe procurement, production and processing as well as the requirements of the world’s leading quality and food safety standards.

HACCP International certification is a globally recognised benchmark of food safety, and as such is an important set of criteria for businesses eager to gain access to lucrative export markets.

Flowcrete Group’s Technical Director, Grant Adamson, says: “Our polyurethane range has been able to achieve the HACCP International certification thanks to its ability to deliver a long list of strict food industry flooring requirements.”

The floor plays a crucial role in addressing contamination risks, as an inadequate floor can become a prime site of bacteria build-up.

Not only does the floor have to provide a hygienic surface, it needs to do so in the face of corrosive chemicals, moisture, impacts and thermal shock. If it cannot withstand these conditions then the floor can quickly fail – leading to germs and pathogens infiltrating hard to clean cracks.

The importance of installing building materials that minimise contamination and the consequent risk of foodborne illnesses was highlighted in the Food Standards Agency’s (FSA) Annual Report of Incidents 2015. 1,645 contamination incidents were investigated and microbiological contamination accounted for nearly a quarter of them.

The costs of these incidents are significant. Not only could a foodborne illness outbreak lead to serious financial and reputational damage for the producer - but every year the FSA estimates that nearly a million people in the UK are affected, with a net cost to the country of £1.5 billion.

HACCP guidelines state that a seamless and impervious finish must be maintained at all times, even when subjected to a largescale food processing facility’s intense working environment.

Flowfresh has been specifically formulated to provide a surface that will comply with food industry regulations for an extended period of time despite the sector’s inherently challenging conditions. J FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

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I EVENT

IDF World Dairy Summit 2015 – Vilnius, Lithuania – 20-24 September 2015 Vilnius, the capital city of Lithuania, will host the IDF World Dairy Summit 2015, which is expected to attract up to 1200 visitors to attend both the Summit and the simultaneous exhibition to network and familiarise themselves with the latest research findings in the dairy sector worldwide.

T

he week-long congress is regarded as the world dairy sector’s premier event and the most important global gathering of dairy professionals, decision-makers, scientists and farmers. The IDF World Dairy Summit 2015 is scheduled for September 21-24.

Highlight The Summit’s highlight is stimulating scientific programme based on the theme – ‘Closing the Nutritional Gap with Sustainable Dairy’. It will focus on the critical role dairy must play in closing the gap in the availability of essential nutrients to the world’s population. Besides addressing these global challenges, the programme is intended to cover a wide spectrum of issues that will decide dairy sector’s modernisation, security and economic success in the future.

Featuring 170 speakers from all around the globe, a total of nine topics have been chosen to address the theme: 1.DAIRY POLICIES AND ECONOMICS: Global and Regional Challenges to Economic Sustainability of the Dairy Supply Chain.

The conference will provide the state-of-the-art of the dairy sector from a global and a regional perspective. In-depth analysis, trends and forecasts of milk production will be presented for debate on dairy policy developments, industry restructurings and other measures in the context of dairy sustainability from an economic and policy perspective.

2.NUTRITION AND HEALTH: Dairy and Health – the Connection. The conference will discuss the essential role dairy can have in contributing to nutrition security. It will also address the latest research on bioactive components in dairy, and how these contribute to human nutrition and health.

3.ANIMAL HEALTH AND WELFARE: Sustaining Animal Health and Animal Welfare in Milk Production. The conference will present current and future challenges to increasing milk production at global and regional levels with regard to animal health and welfare. Related management strategies and action plans will be debated.

4.DAIRY FARMING: Dairy Farming: Challenges and Risk Management. The programme provides an overview of the overall thme and sessions for a full day.

5.DAIRY SCIENCE AND TECHNOLOGY: Biologically-Active Com-ponents in Dairy: Technology and Applications, Now and into the Future. The conference will provide a comprehensive update on relevant technologies for the isolation of biologically active

components (bioactives) from milk and whey, noting the focus on protection of biological activity, together with those technologies on and over the horizon. The characteristics of and applications for these bioactives, both current and projected, will also be a feature of the conference. The practical technology and application focus of this conference will complement the more fundamental science to be presented in the conference.

6.MARKETING: Current and Future Challenges and Approaches in Marketing the Values of Dairy. The aim of the conference is to address current and future marketing challenges and practices and to emphasise the use of social media to communicate the treasures of dairy for delivering nutrition and health to the consumer.

7.FOOD SAFETY: Food Safety Modernisation. The aim of the conference is to address food safety in the dairy sector as a whole integrated approach, while addressing emerging risks or new aspects in microbiology and chemical safety.

8.ANALYTIC TOOLS: Integration of Analytical Systems into the Milk Control Chain. The purpose of the conference/session is to address how analytics are integrated in a whole sustainable raw milk control chain and to present good practices in different countries. The keynote presentation will cover examples relating to demand being ahead of analytics and the other way round and explore how to achieve the optimal analytical result. Three different countries, including Lithuania, will provide case studies on how laboratory systems are implemented to increase efficiency of official controls and to enhance consumer confidence.

9.ENVIRONMENT: Increasing Resource Efficiency in Dairy Production: Analysis Along the Supply Chain. The conference will analyse environmental sustainability along the dairy supply chain, from the perspectives of emerging as well as industrialised sectors, and different regions of the world. Various aspects of resource efficiency, including waste transformation along the supply chain, will be cross-cutting themes throughout the conference. In addition, the link between environmental sustainability and nutrition will also be discussed. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

43

I SPORTS NUTRITION

$10 Billion Sports Nutrition Sector Building Momentum The sports nutrition sector in Europe is growing at an unprecedented rate as the market has moved mainstream. nce the preserve of elite athletes or weight lifters and body builders, sports nutrition is now also used by millions of fitness and sport enthusiasts worldwide for activities ranging from casual jogging, to football, to martial arts. The global sports nutrition market broke through the $10 billion retail sales value barrier in 2014 and continued growth is expected.

O

Dr Adam Carey, chair of the European Specialist Sports Nutrition Alliance (ESSNA).

“Interest in the sector is growing both from companies and from consumers, more and more of whom are realising the benefits of sports nutrition products,” points out Dr Adam Carey, chair of the European Specialist Sports Nutrition Alliance (ESSNA), a trade association that seeks to represent its members within the European Union. “The sector has grown considerably in recent years and continues to record terrific year-on- year growth, despite the economic challenges that remain within the Eurozone and the wider EU. Sports nutrition is now a major segment of the food market, providing increasingly health-conscious consumers, young and old, with effective exercise-boosting nutrition in a convenient format.”

Mission ESSNA’s mission is to ensure the development of an appropriate and balanced regulatory framework for sport nutrition prod44

ucts, to address the issue of non-compliant products tarnishing the reputation of the sector and to support continued independent scientific research into sport nutrition and into issues relating to quality and safety.

Since being formed in 2003, ESSNA has doubled its membership to more than fifty, including many of the biggest names in the industry across Europe and beyond. The number of ESSNA members is expected to grow at a steady rate, reflecting the growth of the industry. For example, leading protein manufacturer FrieslandCampina DMV is a recent recruit and joins other members such as Kerry and Fonterra.

Major Problem One of the main problems facing ESSNA and its members relates to consumer misconceptions regarding sports nutrition.

“There is a myth, happily one that is disappearing but one that still lingers amongst some potential consumers, that sports nutrition products are for body builders or those simply doing intensive sport,” explains Dr Carey. “Linked to this is the pernicious myth that such products routinely contain banned substances and that their processing, production and labelling is unregulated and poorly managed – when in fact, sports nutrition products are very tightly regulated.

“The basis for these assertions has been a few isolated incidents and the inclination of athletes to blame sports supplements for their positive drugs tests. Virtually all performance-enhancing substances that are banned by organisations like WADA (The World Anti-Doping Agency) and the IOC (International Olympic Committee) are also banned for sale in the European Union.”

Vigilance The ESSNA chief elaborates further: “Whilst no food, drink, supplement producer or manufacturer can ‘eliminate’ the risk of adulteration or cross-contamination, most industries are as vigilant as is reasonably possible in their responsibility to minimise risk. Many companies go even a step further and have some or all of their fin-

ished products tested even for minute traces of banned substances (substances which can also be found in some foods) by an independent testing facility, so that professional athletes can be confident that they are not risking their careers by using sports supplements, and so that other consumers are in no danger of ingesting anything dangerous.”

Change in Attitude Thanks to the activities of ESSNA, the attitude of lawmakers and regulators has changed dramatically in recent years, reflecting the increasing popularity of sports nutrition amongst consumers and the changing nature of the industry.

Once the preserve of elite athletes or weight lifters and body builders, sports nutrition is now also used by millions of fitness and sport enthusiasts worldwide.

“ESSNA has managed a real shift in how crucial European officials and MEPs see sports nutrition, which – ESSNA is confident – will soon result in a new, liberalised and sensible regulatory framework for sports nutrition products. This will allow ESSNA members to get on and do what they do best – design, manufacture and market exciting new products, to an increasing number of men and women, at the best possible prices,” Dr Carey concludes. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

I SPORTS NUTRITION

Milk Complex of Natural Sugars, Minerals and Peptides to Bring Health Back to the Soft Drinks Market – Volac arlier this year sports nutrition earned E its fifth EU-approved health claim related to carbohydrate and recovery of normal muscle function after high intensity exer-

Michael Hiron, Volac’s Head of Dairy and Lifestyle Ingredients.

cise, opening a completely new market for whey permeate, a natural complex of milk sugar, minerals and peptides, obtained after whey protein is extracted.

Suzane Leser, Volac’s Head of Nutrition, describes whey permeate as the new natural alternative to traditional sports drinks: “Milk today is recognised in sports for its potential to provide all of the nutrients needed for recovery, and lactose is the natural sugar in milk that replaces muscle energy stores.

Whey permeate, naturally rich in lactose, becomes one attractive alternative to added sugar in water-based sports drinks.”

Despite increased marketing of lactose-free dairy prod-

ucts, Volac indicates that the movement is driven by self-diagnosed cases of lactose intolerance and it may downtrend as reports show that over 95% of people digest lactose normally.

Leser adds: “As the good vs. bad sugars debate evolves, lactose increasingly stands out due to its low glycaemic index, as well as its levels of sweetness. Also, dental health is one major concern around the use of sugars in sports drinks, and lactose is the least cariogenic carbohydrate available.”

“A typical sports drink made with whey permeate would also replace electrolytes; it’s a natural source of phosphorous, potassium and chloride, as well as sodium, the main electrolyte lost through sweat. And permeate is not entirely free of protein. It contains a small amount of whey peptides, which could carry additional health benefits” adds Leser.

Natural Appeal Whey permeate is already used across Europe in beverages with a natural appeal, in similar ways to coconut water. For example, Latella, which is a fruity whey beverage, has been on the Austrian market for more than 30 years.

“What is quite unique is that the use of whey waters dates as far back as the 17th century, as historical records report of the widespread use of whey for its health properties,” comments Leser.

Michael Hiron, Volac’s Head of Dairy and Lifestyle Ingredients, suggests that

Suzane Leser, Volac’s Head of Nutrition.

whey permeate is one solution that could help recover the downtrend recently seen in the soft drinks market: “The most affected category by the war on sugar appears to be health drinks. In fact, recent Mintel research show that brands need to identify and engage with prospective consumers, and drinks made from natural ingredients show increasing potential.”

Innovation “The first example of innovation in the European sports nutrition market is already out there, with Iso-Charge™ isotonic drink from The Protein Works, launched last summer. It is made with a dual carbohydrate blend of Volactose® whey permeate and coconut water,” adds Hiron.

Volac will be presenting a range of concept products incorporating their Volactive® and Volactose® ingredients for visitors to sample at this year’s FI Europe exhibition. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

45

I CEREALS & SNACKS

Project K Efficiency Programme to Fuel Future Growth at Kellogg Kellogg Company is progressing well in the implementation of Project K, a four-year cost reduction and efficiency improvement programme, which is designed to revive the flagging fortunes of the world’s largest cereals manufacturer. n addition to being the global leading in breakfast cereals, Kellogg is also the second largest producer of cookies, crackers and savoury snacks; and a leading North American frozen foods company. The US-based food group’s brands portfolio includes Kellogg’s, Keebler, Special K, Kellogg’s Frosted Flakes, PopTarts, Kellogg’s Corn Flakes, Rice Krispies, Kashi, Eggo, Coco Pops and Mini-Wheats.

I

John Bryant, president and chief executive of Kellogg Company.

Kellogg is committed to driving longterm growth within its core cereal business and is also seeking to become a global player in snacks following its $2.69 acquisition of Pringles, the world's second largest player in savoury snacks, in 2012.

The Pringles acquisition nearly tripled the size of Kellogg's international snacks business, and added a complementary product to the company's existing snacks brands including Keebler, Cheez-It and Special K Cracker Chips. The acquisition also significantly advanced Kellogg's strategic goal of building a global snacks business on par with its global cereal business, while significantly expanding its global footprint.

Simple Strategy Kellogg’s development strategy is focused on four key areas – cereal, snacks, frozen foods and emerging markets. “Our strategy is a simple one,” explains John Bryant, chairman

and chief executive of Kellogg Company. “We are focused on winning in breakfast; increasing the size of our global snack business; expanding our excellent frozen-food business; and increasing our investment in emerging markets. We compete in just a few categories, allowing us to be more effective at what we do, in the businesses that we value. This is evident in the very good progress we’ve made in Kellogg has been developing new products to meet with changing recent years. Our acquisi- consumer trends towards healthy eating. tion of Pringles is a prime example, as are the new products we have Kellogg’s Origins successfully launched in frozen foods.”

In this respect, Kellogg has been investing He elaborates: “However, strengthening in new brand-building programs designed our global cereal business, particularly in to engage consumers and remind them of our core markets around the world, the health benefits that can result from the remains one of our most important goals. consumption of cereal. For example, in Kellogg has always been strongest when we Europe the company has launched its have concentrated on where we have a Kellogg’s Origins campaign to combat the solid foundation to lead and win. Nearly consumer misconception that RTEC is 110 years after Mr Kellogg sold his first highly processed by emphasizing the very box of Kellogg’s Corn Flakes, ready-to-eat simple, basically farm-to-table nature, of its cereal (RTEC) remains at the very top of foods. this list.”

The Kellogg's Origins range includes flake-based cereals, granolas and mueslis that combine ingredients such as nuts, grains and fruits. The range has now been launched in the US, marking the introduction of six new breakfast foods including the first ever mueslis on the market.

Furthermore, Kellogg has been developing new products to meet with changing consumer trends towards healthy eating by including more protein, more gluten-free offerings, more whole grains and more variation in range. Kellogg has also been encouraging the consumption of cereal at times of day other than in the morning.

The Kellogg's Origins range includes flake-based cereals, granolas and mueslis that combine ingredients such as nuts, grains and fruits.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

Project K Kellogg plans to use the savings gener47

ated by Project K to increase investment in its core markets, particularly in the areas of brand building, innovation, and in-store execution. Investment will also be increased in Kellogg’s developing and emerging markets, which will include brand-building activities, innovation, and investment in infrastructure such as new R&D resources and increased capacity.

Launched towards the end of 2013, Project K aims to identify significant cost savings throughout Kellogg’s business both in North America and globally. The savings will be invested in brand building to stabilise Kellogg’s core cereal business in key developed markets, as well to build its presence in emerging markets. Kellogg expects that this investment will drive future growth in revenues, gross margin, operating profit and cash flow.

Project K will deliver estimated annual savings of between £425 million and $475 million by 2018. However, the cost cutting programme will entail Kellogg trimming its global workforce by 7% by the end of 2017. Kellogg anticipates that Project K will result in total pre-tax charges of between $1.2 billion and $1.4 billion; the programme’s non-cash costs are expected to be between $275 million and $325 million.

48

Full-year comparable operating profit decreased by 3.9%.

Kellogg has since revised its long-term financial targets. It now expects low-single-digit (one to three percent) comparable annual revenue growth, lower than the previous target of between three and four percent growth. The company's targets for mid-singledigit (four to six percent) annual comparable operating profit growth and high-single-digit (seven to nine percent) annual, currency-neutral comparable earnings per share growth remain unchanged.

Financial Performance While the Pringles acquisition boosted Kellogg’s financial performance in 2013, both sales and profits declined in the 2014 financial year as the company sought to address the challenges faced by some of its developed businesses. Reported net sales fell by 1.4% to $14.6 billion for 2014 and by 2.0% on a comparable basis, excluding the effects of foreign currency translation, acquisitions, disposals and costs associated with the Project K. Full-year reported operating profit decreased by 63.9% to $1.0 billion but this included significant impacts from the effect of mark-to-market adjustments and costs associated with Project K.

Current Trading For 2015, Kellogg expects currency-neutral comparable net sales to remain approximately unchanged year-over-year and currency-neutral comparable operating profit to decrease at a rate of between two and four percent. Kellogg has reported strong productivity and further progress with Project K in the first half of 2015. “After a difficult 2014, we continue to build momentum in 2015 and are on-track to achieve our long-term-growth targets for currency-neutral comparable sales and operating profit in 2016,” says the Kellogg chief. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

CPM Wolverine Proctor Has Over 150 Years of Processing Knowledge PM Wolverine Proctor designs and manuC factures energy efficient systems for a wide range of snack, baking and cereal processing systems including: drying, cooling, roasting, toasting, pellet expanding equipment, flaking, batch pressurised cooking, infrared fusing, air impingement technology, cooked grains shredding, cutting and forming. Having the World’s largest installed base of Thermal Processing Systems and over 150 years of processing knowledge, the company continues to go from strength to strength working with every customer, large or small, developing a process to suit their specific market requirements.

CPM Wolverine Proctor’s Ultra Sanitary SCF III Dryer takes equipment design to a whole new level of cleanliness. Food industry processors have been feeling the pressure to put a greater emphasis on Equipment Sanitation. This led CPM Wolverine Proctor to respond to market needs with the highest sanitary specification ever available in food industry continuous drying technology.

CPM Wolverine Proctor’s Tech Center.

CPM Wolverine Proctor’s Tech Center is staffed with skilled, experienced engineers and process technologists to test your products and discuss your needs.

CPM Wolverine Proctor offers continuous as well as batch testing for the evaluation of a wide range of products and materials.

Utilizing a variety of heat transfer equipment is featured; Continuous Fluid Bed and Impingement Ovens as well as Thru

Circulation Dryers. A variety of analytical lab equipment helps CPM Wolverine Proctor accurately determine key processing parameters.

Replication of existing processes as well as development of new processes is possible through the use of the company’s extensive inventory of Pre and Post testing Equipment.

Available equipment includes: extruders (Auger and Rolling), granulator, fitzmill, slicer, steam kettle, peeler, fryer, cooler, boiler, enrobers, mixers, vacuum filter, squeeze rolls and centrifuge.

CPM Wolverine Proctor’s unique laboratory machines permit heat transfer analysis of products under any variation of drying, thermal processing or cooking atmosphere to determine the optimum processing conditions. For further information contact CPM Wolverine Proctor on Tel +44 (0)1355 575350 Fax +44 (0)1355 575351, E-mail sales@wolverineproctor.co.uk or visit www.cpmwolverine proctor.com. J

The Ultimate in Belting Hygiene hen considering food safety in terms of production, the critiW cal component of any conveyor is the belt. The prime challenge is to use a conveying medium that takes hygiene to its practical limit. ENE Ltd, Ireland’s leading food conveyor manufacturer, is familiar with the challenge and has discovered a belting solution that leaps over the heads of all other belt solutions.

ENE Ltd is the exclusive UK and Ireland distributor for the Mafdel range of hygienic PositiveBelt and Deldrive belts. It is no accident that ENE Ltd frequently fits these cutting edge belts to many of its own products.

Mafdel solid belts do not have the plies, threads, joins, or cracks that harbour dangerous bacteria or contaminants. The Deldrive and Positivebelts are constructed of solid Polyurethane or Polyester which is durable and easy to maintain. All Mafdel products come with complete EU certification for both material and product.

A significant feature is that the Deldrive product will retrofit most existing modular conveyors with only a change of sprockets required. For further information contact ENE Ltd on 02840 622215, email sales@eneconveyors.com or visit www.eneconveyors.com. J FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

49

I MIXING & BLENDING

Admix – Your Sanitary Mixing Technology Partner ince 1989, Admix has been recognized as S a leader in Advanced Mixing Technologies for high performance, high efficiency sanitary mixing systems and for its commitment to innovation and high quality.

Mixing is at the heart of the food and beverage industries and is crucial to every production facility. From stirring cream in to the first coffee in the morning to the “last call” for blended frozen bar drinks at night, it is difficult to find a beverage that does not employ mixing. The same is true for a majority of prepared food products. Almost every processing plant has a “dry” room where large quantities of powders are handled every day. Processors are continually looking for new ways to incorporate and mix these powders into their food & beverage products.

Let Admix Customize a Solution That's Right For You

Admix understands your mixing application and provides you with the best solutions to your toughest mixing challenges. Admix has the field service experience to assist you with

your formulation, improve productivity, and lower formulation costs with its high performance mixing equipment.

Admix’s applications and ingredient experience has led the company to develop a diverse product line to meet any mixing challenge — with a special focus on adding powders into liquid.

Admix offers a full range of products for bottom mount dispersing and emulsifying, inline mixing and milling, powder conveying and induction, as well as in-tank batch processing. Admix specializes in the manufacture of sanitary high shear mixers, high shear emulsifiers, inline emulsifiers and wet mills, sanitary static mixers and blenders, low speed stainless batch mixers and vacuum conveying and powder delivery mix stations.

In-Plant Trial

An in-plant trial is the ultimate opportunity for you to witness first-hand the superior mixing, milling and powder induction capa-

Commitment to Quality

Admix has put safety and cleanliness first in all its designs for over 25 years. Admix guarantees that its products are designed to meet or exceed the newest and toughest hygienic and safety standards for the industry. Its equipment conforms to the legal stipulations regarding health and safety, product labeling, product traceability, and good manufacturing practices of the Directive (EC) 1935/2004 of the European Parliament.

The Admix Advantage

Food and Beverage ingredients have become more challenging with the increase of sport, nutraceutical and other "health" products.

These products are difficult to produce economically using conventional mixing technology. That’s where Admix can help.

It is Admix's mission to improve your production capabilities with more effective mixing, reduced horsepower and optimized capital costs. Admix strives to provide all customers with a payback of one year or less through the use of new technologies that will outperform your current equipment.

Put Admix’s Lab to the Test

Partnering with Admix provides customers complete access to the company’s fully equipped pilot lab. The Admix Lab and Pilot Plant offer a variety of mixers and tanks to test samples for customers and to demonstrate Admix’s comprehensive scale50

up process formulas. Schedule a demonstration of your mixing application and let Admix work out solutions to your toughest mixing challenges. Each application receives personal attention from an experienced engineer, a creative design staff, and Admix’s quality-conscious production team to ensure absolute customer satisfaction and includes Admix’s process assurance.

bilities of Admix sanitary stainless equipment on your own products. Admix’s comprehensive trial program offers a full range of equipment for you to utilize in your plant on your products. With Admix’s standard trial agreement, Admix will ship the equipment to your facility for 14-days and you can run as many tests on as many formulations as you want.

Employee Owned, Customer Focused

Admix is proud to be a shared ownership company. Admix is confident that when you communicate with any of its employee owners, you will sense the commitment to ensure that your experience will be positive and truly beyond your expectations.

For further information contact Admix, Inc – Europe - Hejrevang 21A, 3450 Allerod, Denmark, Tel +45 3213 8743, Email bbuchert@admix.com or visit www.admix.com. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

I MIXING & BLENDING

New Generation Flashmix Revolutionises Powder/liquid Mixing he latest Silverson Flashmix powT der/liquid mixer is now two times faster. Large volumes of powder are dispersed and hydrated, consistently and agglomerate free at a rate of up to 500lbs/min. The Flashmix incorporates breakthrough technology that allows it to bring the benefits of high shear mixing to new applications. “We’ve really broken new ground here,” explains Matt Smith, international sales director of Silverson Machines. “The Flashmix can be used at higher temperatures and with higher viscosity mixes, than was previously possible. This opens a whole new area of processing for high shear mixing.”

Unlike most powder/liquid mixers, which use vacuum to pull in powders, the Flashmix literally forces powder into the liquid stream – there is no venturi, no vacuum. A specially modified Silverson In-Line mixer re-circulates liquid from a process vessel through the

Flashmix at high velocity with minimal aeration. Since the powder and liquid components are introduced directly into the high shear zone of the mixer, they are subjected to intense mechanical and hydraulic shear, which instantaneously combines them, producing a homogeneous product without agglomerates. “The Flashmix is uniquely suited for mixing higher concentrations of gums and thickeners,” adds Matt Smith.

The Flashmix is built upon a base of an EHEDG and 3-A Certified sanitary In-Line mixer. Because of its modular construction, the Flashmix can be customised to accommodate numerous applications and batch sizes. “The real beauty of the Flashmix is its simplicity,” he says. “No additional pump is needed; it requires only low power; and it’s easy to install, operate and clean. From an operational perspective, this is hugely beneficial.” J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

51

I SOY

Making Soy Convenient

By Khoreen New, Senior Application Technologist for Dairy, Ice cream and Soy, Palsgaard Asia-Pacific Soy milk has been part of the Asian diet for centuries and is becoming increasingly popular in other parts of the world, too, being perceived as a healthy alternative to cow’s milk. However, as soy milk has traditionally been produced in small batches in small shops and with a short shelf-life, manufacturers need to look at new production methods if they want to match the needs of today’s convenience seeking consumers. sing the UHT technology will allow for U products with shelf-lives ranging from several months up to a year. Products that will be homogenous and have the right mouth-feel and creaminess, provided that they contain the right emulsifiers and stabilizers.

Soy beverages have a history of over 5,000 years and are an important source of protein for many people, especially those who are lactose intolerant. Soy milk contains the same amount of protein as cow’s milk, hence is often perceived as an alternative to dairy milk. Besides being a good source of protein, soy based foods are also known to provide numerous health benefits, such as: – Lower in fat content, mostly unsaturated fat with zero cholesterol – Naturally lower in sugar content than regular milk – Contain only vegetable protein – Fewer people allergic to soy than cow’s milk – Provide bone health – Promote weight loss/control – Prevent cancers Figure 1: Recipe suggestion for soy drinks with neutral pH Palsgaard® RecMilk 122 Soy base (5% protein, 2% fat) Sugar Water Composition of solids Fat Protein Total solids

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0.20% 45.00% 2.00% 52.80% 1.00% 2.25% 11.00%

– Prevent cardiovascular disease.

Countries such as China, Japan, Brazil, USA and Thailand all consume vast amounts of soy based products – and are likely to continue to do so. Data from EuroMonitor International predict a very promising growth from 2013–2018, for soy milk as well as soy drinks. For 2013 alone soy drinks had a market size of US$2,601.4 million, for soy milk it was US$ 4,808.9 million. For a definition of soy milk and soy drinks, please see the Panels.

soaked, grinded, filtered and cooked.

Nowadays, a large part of the industrially produced soy milk is produced by means of the UHT process and aseptic filling, thereby obtaining a long shelf-life at room temperature. This puts a great demand to the stability of the product as a homogeneous product throughout the entire shelf-life is necessary for the consumer’s acceptance of the product. To achieve this, direct as well as indirect

Soy Milk

Soy milk is the water extract from whole soy beans. It is an emulsion of fat in water containing water soluble proteins, carbohydrate and oil droplets. Soy milk has traditionally been produced by small shops daily in small batches. These are sold daily and have a short shelf-life. Here the soy beans were FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

Soy Drinks Typically long-life, with a minimal amount of soy protein per serving. These products are positioned more as regular beverages (competing against soft drinks) rather than milk alternatives. Often, there is little or no information on soy protein content per serving. Black soy drinks have also recently emerged in Asia.

order to form the carrageenan network. This network wills lose its gel strength if subjected to high temperature.

Microcrystalline cellulose (MCC) is becoming increasingly popular as a stabilizer in chocolate beverages. MCC is derived from plant fibres and is often used in combination with carrageenan for synergic effect. With shear, MCC forms a three-dimensional matrix and is not affected by temperature.

When suspension of particles is required, gellan gum is often used. Gellan gum is produced by fermentation of algae. There are two types of gellan gum namely high acyl gellan gum and low acyl gellan gum. Gellan gum form gels in which particles are trapped.

Pectin, mainly extracted from citrus peels is often used in low pH beverages. They are used as a gelling agent, thickening agent and stabilizer in food.

UHT systems may be applied. From a stability as well as from a sensory point of view direct systems are preferred. Direct systems result in less chemical changes in the product due to a lower total heat load and extraction of oxygen from the product in the vacuum chamber. The indirect system is, however, often preferred due to lower investment and running costs.

Soy Drinks

Soy drink is a popular type of beverage in countries such as China, Brazil, Mexico, Malaysia and Argentina. It contains no less than 1.5% in protein, and less than 0.5% fat with 5–15% sugar. Unlike soy milk (3 or more than 3% protein, 1 or more than 1% fat) which is known as non-dairy milk alternative, soy beverage is known as sweet nutritious drink consumed as soft drink.

Whichever UHT system is used, application of emulsifiers and stabilizers in soy milk and soy drinks is necessary. The products are emulsions of oil in water and for ensuring optimal emulsion stability, i.e. reducing creaming, during the entire shelf-life, not only proper homogenization but also addiFigure 2: Recipe suggestion for chocolate soy milk with neutral pH Palsgaard® RecMilk 131 or Palsgaard® ChoMilk 173 Soy base (5.6% protein, 2.8% fat) Sugar Cocoa powder Water Composition of solids Fat Protein Total solids

0.20% 53.60% 6.00% 0.80% 39.40% 1.50% 3.00% 13.00%

tion of selected emulsifiers and stabilizers is necessary. Further, the stabilizers improve the stability of the proteins thereby minimizing sedimentation during storage of the soy product. The functionality of the emulsifiers and stabilizers are described below.

Emulsifiers For Soy Beverages

The Challenge of Chocolate Soy Drinks

The challenge in getting a stable and uniform soy product lies in choosing the right emulsifier and stabilizer blend (E/S), especially in chocolate soy beverages. Under-dosing / unsuitable E/S will cause sedimenta-

Mono-and diglycerides of fatty acids are commonly used in soy beverages. Monoand diglycerides are emulsifiers produced by the reaction of vegetable fats and oil and glycerol. The end result is a molecule with ambiphilic properties, meaning part of the structure is hydrophilic while other moieties have a lipophilic nature and consequently it is placed at the interface between the fat/protein and water during homogenization, hence fat separation is reduced. When used in multiphase systems, the emulsifier will take a position which is favourable with respect to energy and minimizing coalescence of the fat globules.

Soy Milk Positioned as milk alternatives. Soy milk is typically fresh/pasteurized, found in chiller compartments, and contain a significant amount of soy protein per serving. Leading brands such as Silk (White Wave) contain 6 grams of soy protein per serving (approximately 250ml) or 2.4 grams per 100 ml. Other brands such as Alpro Soja (Vandemoortele International NV) contain 2 grams of soy protein per 100 ml. Vive Soy (Leche Pascual) contains 3.3 grams of soy protein per 100 ml serving.

Stabilizers For Soy Beverages

Stabilizers are water-soluble polysaccharides extracted from land or marine plants or from microorganisms. Adding stabilizers helps create the network required to suspend particles, increase viscosity, and improve mouthfeel. They are used for thickening and stabilizing properties. There are many types of stabilizers available which are unique in their own way: Carrageenan, which is derived from red seaweed, is commonly used as a stabilizer in soy milk. The carrageenan forms a helix with negatively charge sulphate group.

Carrageenans are grouped into kappa, lambda and Iota carrageenan according to their chemical composition. To achieve the best results while using carrageenan, the filling temperature will have to be less than 25 C in

Figure 3: Recipe suggestion for acidified soy drink with low pH* Palsgaard® AcidMilk 372 or Palsgaard® AcidMilk 374 Soy base (5.6% protein, 2.8% fat) Sugar Juice concentrate** Water Composition of solids Fat Protein Total solids

0.40% 22.00% 8.00% 6.00% 63.60% 0.60% 1.20% 13.00%

* To add citric acid solution for targeted pH ** Please note when processing the acidified product, to cool down the stabilizer solution to less than 25 oC before adding the soy base and juice concentrate (to prevent precipitate of protein).

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tion whereas over-dosing will cause separation and/or gelation.

Numerous factors have to be taken into consideration when using any E/S blends: The % of total solid, % of fat, % of protein, % and type of cocoa powder used all have some effect on the end product.

Beside that, the type of heat treatment plays a part too: Pasteurization, ultra high temperature (UHT) and retort are the three common types of heat treatments used on soy beverages. Least heat is used in pasteurization hence the shorter shelf-life of the product. Retort will be the harshest heat treatment to soy beverage.

The dosage of E/S need to be adjusted according to the type of heat treatment to be used.

Creating a stable chocolate soy beverage is more difficult than a traditional chocolate milk as it contains more fibres. By using a standard carrageenan system, the network will be not good enough to hold the cocoa particulates. A microcrystalline cellulose or gellan gum system will help in creating the network required for such application.

Other factors such as filling temperature will also have an effect on the stability of the end product. Palsgaard has developed E/S solutions for filling temperature suited for both below and above 30 C. In addition to the neutral pH soy beverage (see recipe suggestion in figure 1), we also have created an acidified soy drink with a low pH of around 4.0 (see recipe suggestion in figure 3). A refreshing soy drink that can be flavoured with juice concentrate such as orange, apple, mango and many others depending on local tastes and preferences. As it is a low pH beverage, please note that the heat treatment must be set to 110 C/4 sec, as low pH and high heat treatment will cause protein to be precipate out.

Integrated Blends of Emulsifiers & Stabilizers

Palsgaard provides blended and integrated emulsifiers and stabilizer for use in soy beverages. In integrated blends emulsifiers and stabilizers are mixed and spray crystallized. This offers a number of advantages during production, such as: • No dust formation during handling • 100% uniform composition • Dispersible at low temperature • No pre-blending necessary • Free flowing properties.

Extensive Application Service

Palsgaard has well-equipped application centers in Denmark, Singapore, Mexico and China that enable us to work on creating the right blends for any given market taking soy milk quality, recipe, process conditions as well as sensory preferences into consideration. Our equipment enables us to work with as well pasteurized, UHT-treated as sterilized products and to make shelf life studies covering the entire shelf life of the soy beverages. As a starting point, we often use recipe suggestions such as those shown in figures 1-3, which we then tailor together with the customer to meet their exact requirements.

For further information contact Senior Application Technologist Khoreen New at khoreen@palsgaard.com.sg or Tel: + 65 6468 6905. J 54

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

How a Switch to Robotic Automation Could Help Cure Production Headaches hanging consumer demands is just one of C the challenges facing today’s food and beverage producers. Alan Spreckley of ABB

Robotics UK explains how the most common headaches can be solved.

Any food producer wishing to succeed in today’s competitive market must be responsive to rapid change. A high staff turnover coupled with such issues as product quality, flexibility of production lines and financial strain, all add pressure. It is not surprising then to see an increased interest in automation as robots address these problems. According to BARA, robot sales to UK and European food and drink manufacturers have jumped by more than 55 percent over the past 4 years.

eliminating the time and cost of commissioning a physical installation. Robots can also help to reduce costs associated with drafting in extra staff, wastage and reprocessing of products.

Summary The take-up of robotic technology is continuing to rise within the food and beverage industry. As continual advances and a fall in costs lead manufacturers to turn to automation, new breakthroughs in competitiveness and productivity are achieved every day.

As a manufacturer and supplier of robotics automation equipment, ABB is well placed to advise food and beverage manufacturing companies on the best way to optimise their processes. For more information, email robotics@gb.abb.com or Common Issues call 01908 350300 quoting ref. ‘food and beverage’.

Alan Spreckley of ABB Robotics UK. For a more in-depth explanation of the benefits Inconsistent product quality is the enemy of food and beverage production. A mistake can affect the stock of that robots can deliver in food and beverage applications, please ingredients as well as the product, pushing up costs. Inattentiveness visit http://bit.ly/Foodheadaches. J and failure to understand processes can all increase the risk of errors. Mistakes can cause late delivery and lost orders as customers look to alternative suppliers. In the extreme, they could even lead to an embarrassing product recall.

Sudden fluctuations in order sizes can also cause problems where processes are not sufficiently flexible. Drafting temporary labour can present another potential source of error, particularly where the workers may be unfamiliar with processes.

Another major issue is reliability. A general reluctance to invest in new technologies means that many companies expose themselves to an increased risk of unplanned downtime caused by failing equipment. No manufacturer wants their plant to be found wanting during an inspection by a major customer.

Furthermore, uncertainties in cash flow can make it difficult to hire sufficient staff and can be particularly problematic when production needs to be ramped up.

Consistent Product Quality Major developments in vision inspection technology are enabling robots to quickly pinpoint defective products before they leave the production line. The risk of contamination in processes where raw ingredients are handled is also significantly reduced. The hygienic design of ABB’s FlexPicker IRB 360, for example, enables it to be washed down between processes, helping to ensure that contamination is eliminated.

Increased Reliability and Flexibility Reliability is a key advantage of robotic technology; once programmed the robot can be left to handle a process efficiently with no risk of issues. Able to switch between multiple processes with minimal downtime, they provide the flexibility needed to complete orders quickly.

A Strong Investment Developments in offline programming, make it possible to run a robot in a virtual process before committing it to the factory floor, FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

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STORAGE

LOGISTICS

How One Day Out of Your Business Could Boost Profits and Efficiency For Months and Years to Come

Rob Fisher.

This year’s TCS&D Show promises more content than ever, including more than 100 exhibitors and a host of free to attend interactive seminars and workshops. We asked show Exhibition Director Rob Fisher some key questions about the event, being held in conjunction with the Food Storage & Distribution Federation and the British Frozen Food Federation, which takes place on 16th and 17th September at the Peterborough Arena.

Q. With diaries more hectic than ever, why should an industry professional take time out to visit the 2015 TCS&D Show?

The TCS&D Show is unique because of the sheer focus it provides on the temperature-controlled products supply chain. It gives industry professionals the chance to evaluate their whole supply chain for the coming months and years, from their road transport fleet to racking, cold storage providers and materials handling equipment.

We welcomed 2,000 delegates to the last show, and with a more packed programme than ever we expect that number to increase this year.

Q. What can visitors expect?

Visitors will be able to meet more than 100 different exhibitors, see and test the latest equipment for themselves, learn from case studies, question industry experts, network and take back to the office practical steps to improve their business and increase profits.

This year, we have introduced a comprehensive conference programme including sessions with a host of industry experts. They will be able to give true insight which could help visitors to shape the future direction of their business. New for 2015, all these session will be free for visitors to attend.

It will be a true learning experience and delegates will gain the knowledge and tools they need to really make a difference.

businesses understand their management and record-keeping obligations as a result of the changes, the timing of the phase-down plan and the alternatives currently available in the marketplace.

This focused seminar will take a detailed look at the regulations from the perspective of refrigerant producers, contractors, equipment manufacturers, service providers and enforcement agencies. Speakers include Sainsbury’s Operations Manager Gary King, Food Storage & Distribution Federation’s Chris Sturman, and President of Technical Advisory Committee and Vice President of Transfrigoroute International, Joe Grealy.

Ultimately, if businesses don’t comply with the new regulations there will be hefty fines levied against them, so this is a real call to action. We urge people to come and learn at the show – or else learn the hard way when the inspectors come knocking!

We also expect the case study sessions to be really popular, as we know how invaluable people find it to learn from their peers. And we are looking forward to a Q&A session with the expert panel of TCS&D award judges, as well as a session on the future of transport refrigeration, which is something we feel will be of interest to everyone.

Ultimately anyone who attends the seminar or workshops, will be able to leave the event with valuable, usable ideas and information, that they can implement in their own business.

Q. Which seminars do you think are going to be in highest demand?

I think the F-Gas seminar is likely to be very popular.

TCS&D magazine held a survey earlier this year and at least 500 respondents either knew nothing about it or hadn’t taken any action, yet it’s such an important area. It is vital 56

Q. How do you register for the show, and the seminars?

Registration is free and now open at www.tcsdshow.com.

The seminars will be held in a central conference area and will operate on a first-comefirst-served basis. We expect them to be very popular. J FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

Fi Europe & Ni 2015 Predicts Largest Gathering to Date For Those Sourcing Food and Beverages Ingredients ith ever-changing and more complex W consumer trends, greater need for safer and healthier food and beverages and higher demands to use purely natural ingredients, today’s food and beverage professionals need greater access to innovative reformulation solutions, new, tastier and better quality ingredients and greater industry thoughtleadership.

For more than 25 years Fi Europe & Ni has provided the world with the leading food and beverage ingredients sourcing platform and in 2015 it will take place in Paris from 1-3 December 2015. In fact over 25% of all annual ingredient procurement budgets for food and beverage manufactures are influenced by a visit to Fi Europe & Ni making Fi Europe & Ni one of the most influential and important 3 day event for the industry.

Returning to Paris Fi Europe & Ni is returning to Paris for a number of reasons. France has the secondlargest economy in Europe, in nominal figures, and is the third-largest food market on the continent, behind Germany and the UK. In addition, France is home to 13,500 food and beverage businesses, which generate more than Eur147 billion in annual revenue and Paris’ strategic geographic positioning only enhances global food and beverage trade. It is therefore the perfect location to bring the food and beverage industry together.

Over 1,400 ingredient suppliers have already been confirmed to exhibit at Fi Europe & Ni, including global powerhouses such as Roquette, Cargill, Brenntag, ADM,

FrieslandCampina, DSM, Naturex, and many more. Leading European food and beverage manufacturers have also already confirmed their attendance including Lactalis and Barry Callebaut.

Best and Biggest Show to Date Leading event organiser, UBM, is predicting a record year for the Paris edition. “Fi Europe is a truly global meeting place for professionals – in 2015 we expect over 27,000 attendees, all of who will be looking to make connections with new business partners and suppliers, as well as learn about the latest innovations shaping their industry. Fi Europe has proven to be the most successful platform for companies who want to successfully position themselves in the vibrant and ever-growing food and beverage market,” says Brand Director, Richard Joyce, who is anticipating the best and biggest show to date.

Innovation Along with renowned ingredient suppliers, Fi Europe 2015 will also offer thought-leadership and new ingredient innovations showcases. This year will see the return of the New Product Zone which displays the latest products and innovations and gives an inside scope of what is predicted in the future. The Innovation Tours will provide insight on Clean Labelling, sugar and salt reduction solution providers – Fi Europe cataloque. The Global Market Forum will provide workshops and educational seminars surrounding key industry topics, conducted by industry thought-leaders such as EAS, Euromonitor, NVC, Leatherhead, Innova Market Insights. The Innovation and Ingredients Hub will allow exhibitors to present the latest innovations, cutting edge technology and product opportunities. The renowned Food ingredients Excellence Awards are presented each edition, recognising the leading ingredient manufacturers and their latest innovations. The event is colocated with the Food ingredients Europe Conference, which covers issues currently faced by the food ingredients industry and will provide crucial insights into leading scientific innovations, winning marketing

strategies and explore the hottest ingredients trends driving new product development and consumer spending in the F&B industry.

Stay ahead of the curve by registering online now to secure free entry to Fi Global’s biennial flagship event, for more information about Fi Europe & Ni 2015, please visit: www.fi-europe.eu/PRregister. J

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I DAIRY

New Dairy Protein Solves Watery Low-fat Cottage Cheese Problem rla Foods Ingredients has developed a A unique new clean-label protein solution that tackles the long-standing problem of watery low-fat cottage cheese. Sales of cottage cheese are rising as consumers seek out healthy dairy products that are low in fat and high in protein. Just like Greek yoghurt and Skyr, cottage cheese falls into this category and is enjoying a surge in popularity.

New launches of cottage cheese products globally increased by 39% between 2010 and 2014, according to Innova Market Insights. Growing numbers of consumers enjoy cottage cheese because it offers a tasty and healthy option for multiple occasions, including snack time, breakfast, lunch and even dessert.

Arla Foods Ingredients’ new dairy protein is simply added to the dressing (cream) that is combined with the curds to make cottage cheese. It reacts with the salt in the dressing to create a thicker texture and a creamier

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end product. This eliminates the need for the stabilisers frequently used to enhance

the quality of low fat cottage cheese, which tends to have a runnier consistency than the standard version and is therefore more likely to require thickening. This is often done using starches and gums, which may mean sacrificing clean label status.

Because the cream dressing containing Arla Foods Ingredients’ dairy protein is better quality, the proportion of curds required in the recipe can be reduced without any negative impact on product quality – enabling manufacturers to optimize their production costs and maximize profitability.

Claus Andersen, Category & Application Manager for Cheese at Arla Foods Ingredients, says: “This is a unique solution for improving cottage cheese products, especially low fat cottage cheese, which often presents technical and quality challenges. Now manufacturers can achieve a thick, creamier and tastier end product, using a dairy-based ingredient that is clean label and familiar to consumers.” J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015

Tate & Lyle Launches New Resource to Help Food and Beverage Manufacturers Unlock the Benefits of Fibre ate & Lyle, a leading global provider of T food ingredients and solutions, has launched a new website dedicated to fibre fortification: www.tateandlylefibres.com.

This new website serves as a resource to help food and beverage manufacturers meet increasing demand from consumers globally for fibre-enriched food by featuring nutritional information, consumer research and in-depth application insights. It also provides details of Tate & Lyle’s extensive fibre portfolio and solutions: PROMITOR® Soluble Fibre, PromOat® Beta Glucan and STA-LITE® Polydextrose.

"Consumers around the world are not getting enough fibre in their diets," says Nancy Gaul, Senior Category Marketing Manager, Health and Wellness, Tate & Lyle. "This represents a major opportunity for food and beverage manufacturers to respond by providing great-tasting fibrefortified products. Tate & Lyle has a unique range of fibres and deep formulation expertise, and we are excited to work with our customers to help them bring extraordinary products to market."

Meeting Demand For Healthier and Tastier Options Consumers increasingly understand the health benefits of fibre, with more than half of consumers globally looking to add more fibre to their diets. In addition to their health benefits, such as digestive health, fibres also have functional attributes that can help meet consumer demand for other nutrition claims, such as ‘reduced sugar’ and ‘low calorie’.

"In today’s food and beverage marketplace, manufacturers are wading through

an ever-changing tide of consumer demand for healthier and tastier options," says Courtney Kingery, Director, Global Product Management, Health and Wellness, Tate & Lyle. "Consumers are looking for options that offer digestive health benefits, include fewer calories from sugar, cleaner labels and the list goes on.

Fibres can actually help manufacturers meet all of these needs."

Making Fibre Formulation Easier The new website was developed to assist food and beverage manufacturers with their challenges around fibre fortification.

The following resources are available: * ‘Innovative Solutions to Increase Fibre Intake and Promote Health’ provides manufacturers with research and information on science-based ingredient solutions to help bridge the fibre intake gap.

* ‘Unlock the Benefits of Fibre Like Never Before’ provides criteria to use when selecting a fibre, to ensure that manufacturers are delivering on the taste and sensory experience their consumers expect. * ‘Fibre Fortification Challenge’ looks at the strengths of soluble corn fibre, including the functional benefits and digestive tolerance levels. * Finally, ‘Beverages Made Better with Oat Beta Glucan’ covers key considerations when formulating with oat beta glucan in beverages.

The Tate & Lyle Portfolio of Fibre Solutions Tate & Lyle’s extensive fibre portfolio can make formulating fibre-rich products easier. Food and beverage manufacturers can access information on the following fibre solutions: * PROMITOR® Soluble Fibre unlocks superior digestive tolerance in high-fibre and sugar-reduced products, while maintaining sensory expectations and ease of use. In fact, research shows that PROMITOR® Soluble Fibre has more

than two times the digestive tolerance of inulin. PROMITOR® Soluble Fibre is easily incorporated into a variety of applications, including beverages, confections, bars, cereal, meal replacements, yoghurt, ice cream, bakery, dressings and sauces. * PromOat® Beta Glucan unlocks a natural fibre from oats with superior solubility that helps maintain healthy cholesterol levels. PromOat® Beta Glucan is developed from non-genetically modified (GM) Swedish oats, with no chemicals added during processing, and may be suitable to help create gluten-free, cleaner-label and reduced-fat/-calorie products. Its exceptional solubility makes PromOat® Beta Glucan ideal in beverages such as smoothies, where it also contributes to indulgent mouthfeel and smooth texture. In addition, it can be easily incorporated in a variety of other applications, including bakery products, supplements, meal replacements, soups and sauces. * STA-LITE® Polydextrose unlocks calorie reduction, while enabling significant fibre enrichment and ease of use for manufacturers. It helps reduce calories by rebalancing bulk, viscosity and mouthfeel in reduced-sugar/-fat product formulations and is ideal for calorie reduction and sugar-free applications. STA-LITE® Polydextrose is easily incorporated into a variety of applications, including bakery, dairy, confectionery, beverages, sauces and dressing.

For additional information on the Tate & Lyle fibre portfolio, visit www.tateandlylefibres.com. J

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I COCOA

Premium Payments Continue to Improve Livelihoods in Cocoa Communities remium payments for certified sustainP able cocoa are continuing to make a significant contribution to improving the livelihoods of cocoa farmers and their communities, as well as meeting the growing demand for sustainably sourced cocoa and chocolate.

US$19 million was paid to farmers in Côte d'Ivoire, Brazil, Cameroon, Ghana and Indonesia during 2014, bringing the total to US$44 million paid to date under the Cargill Cocoa Promise. The premiums, which are achieved by farmers for selling their UTZ, Rainforest Alliance and Fairtrade certified cocoa beans, are funded by confectionary and food manufacturers and retailers and are positively supporting the ongoing development of a sustainable cocoa supply chain.

“Premium payments and cocoa certification remain a valuable catalyst in making progress towards a sustainable cocoa supply chain. We are proud to be part of this process and to see the positive developments in the sector. Not only are the cocoa farmers and their communities benefitting from higher incomes and better health and

education, at the same time manufacturers, retailers and consumers can be confident about where their cocoa is coming from and how it is being produced,” says Taco Terheijden, Director Cocoa Sustainability at Cargill.

The premium payments are made to certified farmer co-operatives with 50 percent going directly to individual farmer members, and the remainder being invested in projects by the farmer organization to boost productivity, farm development and benefit the community. The premiums are an incentive to adopt good agricultural practices and are directly supporting improve-

ments that are making a positive difference to local communities.

Through its on-the-ground network and long-term personal relationships with cooperatives, Cargill is able to track in full detail how these premiums are distributed and how farmer organizations decide to invest their funds. Recent information shows these are being invested in: • Strengthening farmer cooperative by providing crop financing, developing buildings, improving logistics, employee health and safety, certification activities; • Community projects such as schools and education, healthcare and road rehabilitation; • Farmer services, such farm development, crop protection, fertilizer distribution.

In Côte d'Ivoire, a first of its kind publicprivate partnership between the Conseil du Café-Cacoa, Cargill and CARE has enabled 14 farmer co-operatives to use their premium payments to access additional funding to build 11 new schools and three new health centers teaching over 1,650 children and providing access to healthcare for 25,000 people. J

I FLAVOURINGS

Sugar Reduced Drinks With All the Taste ew from Sensient Flavors, APSS Plus is N an innovative natural functional flavouring that compensates for the sensory drawbacks that occur when sugar is reduced in beverages. The natural flavouring enables manufacturers to cut sugar significantly without having to use additional sweeteners. It provides sugar-reduced beverages with harmonized and full-bodied sensory profiles and is particularly suitable for the production of mid-calorie beverages that are free from additional sweeteners and therefore have shorter on-pack ingredients lists.

Acting as neutral building blocks, APSS Plus flavour allows the sensory profile of the sugar ‘gold’ standard to be maintained, even if the sugar content in the beverage is cut dramatically. What makes the functional flavouring unique is the fact that it can be used with different types of drinks with various starting brix. Internal trials with cola, strawberry-flavoured water and RTD peach 60

ice tea have shown that APSS Plus enables sugar reduction of up to 30 per cent. The results also clearly demonstrated that in all cases, the new flavouring successfully compensates for loss of sweetness, body, flavor, longevity and aroma intensity while also improving fruity and fleshy notes.

APSS Plus is fully soluble and can be used across all flavour tonalities to rebalance the sensory profile when sugar has been reduced. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2015