F&d business europe september 2014 by Colin Murphy

September 2014

Diageo invests â&#x201A;Ź169 million to regenerate historic Guinness brewery

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C o n t e n t s

- 71 B REWING

- 3-16 C OVER S TORY

Diageo invests €169 million to regenerate historic Guinness brewery.

- 19 M ERGERS & A CQUISITIONS Coca-Cola strengthens position in energy drinks with $2.15 billion deal.

Cost management programme helping to drive profitable growth at Heineken.

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P AGE 22

Paul Armstrong, Supply Director, Brewing, International Supply Centre, Diageo.

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PAGE 47 Energy & Environment. . . . . . . . . . 18, 53-66 The Sustainable Food & Beverage Manufacturing Conference – Motor Cycle Museum, Birmingham – 23rd October, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61

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Ray Langton, Brewing and Operational Project Director, Diageo.

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David O’Leary, Director of Diageo Engineering Excellence.

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COVER STORY

Diageo Invests €169 Million to Regenerate Historic Guinness Brewery Diageo has completed its Eur169 million capital investment programme to create a brewing centre of excellence at its historic St James’s Gate site in Dublin, where all Irish beer production has now been consolidated.

ith current annual output of about 7 million hectolitres of beer, the modernised St James’s Gate Brewery is core to supporting the growth and development of Diageo’s global beer business and its flagship Guinness stout brand.

Paul Armstrong, Supply Director, Brewing, International Supply Centre.

of malt barley per day or the equivalent of 150 acres of Irish grain. The extension to the existing fermentation and maturation plant comprises 27 new vessels measuring up to 26 metres tall and 6 metres in diameter with a storage capacity of 14.26 million pints. The new brewhouse aspect of the project was completed by Krones with Proleit supplying the control system. GEA installed the extra fermentation and maturation vessels, and the grain intake element was handled by Buttimer Ireland. Sisk was the main civil engineering contractor on site. Current Production The overall brewery output is currently 7 million hectolitres of beer annually, the new brewhouse has expanded the capacity of the St James’s Gate site by about 40%. Guinness stout is the main product, with about 5 million hectolitres due to be produced annually along with 1.5 million hectolitres of lager and 0.5 million hectolitres of ale. In addition to Guinness, the enlarged Dublin brewery also produces Carlsberg, Budweiser, Harp and Satzenbrau lagers along with Smithwick’s and Kilkenny ales. Some 70% of the brewery’s output is exported. The existing kegging plant at St James’s Gate packages roughly 60% of the beer produced. The remainder is transported to Diageo’s packaging plants at Belfast in Northern Ireland and Runcorn in England for filling into

The rejuvenation programme at the St James’s Gate Brewery has entailed the creation of a new brewhouse, the construction of a new grain intake building and associated silos, an extension of the existing fermentation plant to the southwest of the new brewery and the associated expansion of utilities generation and distribution. About 40% of the total investment was spent on the new brewing facilities and about 35% on new fermentation vessels to handle the additional capacity. World Leader The new state-of-the-art brewhouse incorporates three brew streams with a total capacity of 8 million hectolitres per annum. It is the world’s largest stout brewhouse, capable of producing 300,000 pints in every two hour brew. The brewhouse building will also house a Guinness Flavour Essence plant to produce concentrate for the brewing of Guinness in over 50 countries across the globe. This concentrate, the basis of which is roasted barley, is used to impart the distinctive colour and flavour of Guinness in overseas markets where the brand is produced locally. The new grain intake facility allows Diageo to process 500 tonnes

The new state-of-the-art brewhouse incorporates three brew streams with a total capacity of 8 million hectolitres per annum.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

The extension to the existing fermentation and maturation plant comprises 27

Brewing Heritage The new brewhouse adds a fresh chapter to a long heritage of brewing at St James’s Gate. It is the fourth new brewhouse to be constructed on the St James’s Gate site, which first began production in 1759, after being established by company founder Arthur Guinness. By 1833 the Guinness site was the largest brewery in Ireland and by 1886 is had become the largest in the world. To cope with increased demand the original brewhouse was superseded by a much larger installation during a rapid period of industrialisation during the 1870s. By 1906, more than 3,000 people were employed at the St James’s Gate site. A third, fully automated brewhouse came on stream in 1988. Brewhouse number four has now replaced this once state-of-the-art facility. The Dublin brewery is currently operated by 141 people. However, St James’s Gate is also the headquarters of Diageo Ireland and a total of 834 people are employed on the site. The Dublin city centre site also incorporates the Guinness Storehouse – Ireland’s number one visitor attraction welcoming over 1 million visitors per annum.

new vessels measuring up to 26 metres tall and 6 metres in diameter with a storage capacity of 14.26 million pints.

cans and bottles. Beer from St James’s Gate is shipped three times each day to Runcorn, which also kegs beer for the British market and supplies export markets with canned and bottled product. The new Guinness Flavour Essence plant enables the production of a further 7 million hectolitres of Guinness in overseas breweries. Roasting of the barley for beer production is carried out at the existing plant on the St James’s Gate site. The centralisation of all Irish brewing activity at St James’s Gate has resulted in the closure of the Diageo brewery sites at Kilkenny, Dundalk and Waterford. Diageo had earlier consolidated all its keg operations onto the St James’s Gate site to streamline operations in Kilkenny and Dundalk.

Brewhouse Number Four The Brewhouse Number Four Project (also known as Project Phoenix) was overseen in-house by a Diageo engineering and operations team headed by David O’Leary, Director of Diageo Engineering Excellence, and Ray Langton, Brewing and Operational Project Director. The Eur169 million project has been successfully delivered at an astounding pace. The planning application was submitted in December 2011 and permission was granted in April 2012. Detailed design, build and commissioning proceeded between May 2012 and June 2013. This entailed clearing the old keg storage yard to make way for the new brewhouse. A new keg storage yard has been established at a different location on the St James’s Gate site. Brewing of ale and lager commenced in July 2013, as production

The overall brewery output is currently 7 million hectolitres of beer annually, the new brewhouse has expanded the capacity of the St James’s Gate site by about 40%.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

was switched from the Diageo breweries at Dundalk and Kilkenny, which have now been closed. Stout production commenced in quarter 4 of 2013 and was ramped up during the first quarter of 2014. At peak, during the summer of 2013, there were 1,000 people working on the project site. Tight Time Line “We are very proud of the time line we achieved for the full project which was very tight. Building in a city centre location was also a huge challenge,” says Ray Langton. “The new brewery was fully operational within 24 months of the planning application. This necessitated a concurrent programme of civil works, process installation, raw materials handling and brewing.” He adds: “We achieved this with no disruption to the existing live brewery on the site. Our focus now is on delivery of an optimised and efficient brewing operation.” The co-ordinated programme of works delivered the first brew within 13 months (May 2012 to June 2013) of starting construction. The 27 new fermentation and maturation vessels each had to be transported by sea and road to the site from Germany. The Diageo project management team worked closely with the local authorities and the police to complete the last leg of this journey, which involved road haulage at off-peak times through Dublin’s city centre. A similar procedure was also used for transporting the large-scale brewing equipment to the site.

“In order to meet our time line, we effectively had to erect the building at the same time as we were installing the equipment,” explains David O’Leary. “This is highly unusual as concurrent civil and process work doesn’t realistically happen.” Emphasis on Safety The fast-track project was also completed with an exemplary safety record. Everyone entering the construction site had to firstly complete a safety training course. Access to the site was tightly controlled by using biometrics with each individual having to present five finger prints and a PIN code to gain entry. “We put 1,000 people into what is effectively a 10,000 square metre building. This is equivalent to one person to every 10 square metres – which is a phenomenally high density for any construction site,” says David O’Leary. An RFID tag was incorporated into the safety helmet of each individual on site to keep track of all personnel and to ensure that there was no unauthorised entry to the site and also to certain parts of the site. “This allowed us to ensure that only people who had been through our safety induction and were authorised on the site on any particular day could enter at that particular time. This is just one example of the exceptional level of forethought put into all aspects of delivering the project,” David O’Leary remarks. The Director of Diageo Engineering Excellence continues: “We delivered an outstanding safety performance for the site. We have 6

Ray Langton, Brewing and Operational Project Director.

completed over two million man hours with only three minor lost time accidents (LTAs). This by construction industry standards is exceptional, especially bearing in mind the high population density of the site. Our definition of an LTA was incredibly harsh. It applied to any accident where the individual concerned was unable to report for work at the start of the following day.” Sustainability The new brewhouse has been designed to achieve the highest environmental credentials. This has been achieved by pushing the boundaries of existing process technology to further enhance performance. “We set some very demanding ambitions for the project. In environmental terms, we wanted to create the world’s most energy efficient brewhouse and the most environmentally-friendly building we possibly could,” says David O’Leary. This ambition appears to have been realised with the new brewhouse recently accredited to BREEAM (Building Research Establishment Environmental Assessment Methodology) ‘Outstanding’ – the highest standard from the certification body. Indeed, the brewhouse achieved the highest BREEAM score of any industrial building in the world in 2014. Furthermore, the environmental performance of the new brewery is expected to meet the criteria necessary to reach ‘Platinum’ standard the highest level set by LEED (Leadership in Energy & Environmental Design) - the global green building certification programme that recognises best-in-class building strategies and practices. “There are very few LEED Platinum industrial buildings around the world,” David O’Leary points out.

The new brewhouse has been designed to achieve the highest environmental credentials.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

The Brewhouse Number Four project has also achieved zero waste to landfill in both construction and operation.

David O’Leary, Director of Diageo Engineering Excellence.

Energy Efficient Design The energy efficient design is delivering significant savings in steam, electricity and water usage. To attain this level of environmental performance has required investment in state-of-the-art technology. For example, Krones’ existing EquiTherm technology for saving primary energy in the brewhouse has been further refined for use at St James’s Gate. “Some of the previous generation of energy recovery systems have used the heat necessary for beer production to heat water. However, this hot water was usually of a medium temperature and so not suitable for some uses within the brewery.” David O’Leary elaborates: “Working with Krones, we have taken the EquiTherm technology to another level, whereby the hot water is stratified at different temperatures within the tank. We can draw off the hot water at various heat levels within the tank for use for different purposes. It is normal in brewing for the mash conversion vessels to be heated with steam but we are heating ours with excess hot water from the brewing process.” “The brewery process itself has remained absolutely the same - we continue to brew with the same ingredients in exactly the same way,” stresses Ray Langton, “but we have significantly improved the performance of the engineering around it.” The energy efficient design of the new brewhouse is expected to deliver annual steam and electricity savings of 26.7 MJ per hectolitre and annual water savings of 0.89 hectolitres per hectolitre of beer brewed. “We will save enough energy annually to power 1200 Irish households and use 70,000 cubic metres less of water annually – equivalent to saving an Olympic swimming pool of water every 30 hours,” remarks Ray Langton.

Scaled Down The Eur169 million capital investment programme is just over a quarter of the expenditure envisaged under an earlier plan to modernise and restructure Diageo’s Irish brewing business. In 2008, Diageo announced that it was to invest Eur650 million to reconfigure its Irish brewing operations. Diageo proposed building a new brewery on the outskirts of Dublin as part of a planned streamlining of the group’s Irish brewing operations which would also have entailed the rejuvenation of the brewery site at St James’s Gate and the closure of breweries in Dundalk, Kilkenny and Waterford. The plan was for the new brewery to have an annual capacity of 5 million hectolitres and to produce Guinness to meet growing export demand and also brew ales and lagers. With an annual capacity of 3 million hectolitres, the remodelled St James’s Gate site was to continue to brew Guinness, primarily for the Irish and British markets. A large part of the 50 acres St James’s Gate site was to be sold for redevelopment to help finance the investment project.

Interior of the no 2 Lauter Tun.

However, the subsequent global economic recession, which adversely impacted on beer sales in many key markets, particularly in Ireland and Britain, and the collapse of the property market in Dublin forced Diageo to review its plans for its Irish brewing operations. The revised plan was similar in scope to the original proposal, involving the consolidation of the existing Diageo breweries and is expected to yield similar cost savings. Engineering Excellence Moving from a four brewery configuration to a single site operation obviously yields significant cost savings and efficiency benefits which have been compounded by the excellence of the new production facilities now installed at St James’s Gate. Since July 1st 2013, Diageo has based its Global Centre for Engineering Excellence at the Dublin brewery.

An RFID tag was incorporated into the safety helmet of each individual on site

The energy efficient design is delivering significant savings in steam, electricity and water usage.. To attain this level of environmental performance has required investment in state-of-the-art technnology.

to keep track of all personnel and to ensure that there was no unauthorised entry to the site and also to certain parts of the site.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

For instance, after adopting a business and entrepreneurial approach to engineering design, Diageo recently launched the Cube – a containerised portable manufacturing plant capable of producing spirits, ready-to-drink products and beer. Three of these plants, each with a capacity to produce 600,000 cases a year, are currently producing spirits in Ghana, Nigeria and Mozambique. “The idea behind the Cube is to allow us to enter markets that we could not enter before but at low cost and low risk. This is a major competitive advantage for Diageo,” remarks David O’Leary. The Hub of Diageo’s Beer Business The modernised St James’s Gate Brewery is the hub of Diageo’s global beer business. It is the biggest brewery within Diageo and about the third largest in Europe. In addition to brewing about 7 million hectolitres of beer annually, with 70% exported, the Dublin brewery, through its Guinness Flavour Essence plant, facilitates the production Hot water (energy) storage vessels.

Diageo Engineering Excellence is responsible for Eur500 million per annum in capital expenditure for beer globally. So not only has Diageo Engineering Excellence spearheaded the effort to ensure that Diageo’s Eur169 million investment in the fourth brewhouse at St James’s Gate will deliver competitive advantage to the global drinks group’s beer business but it is overseeing similar projects in overseas markets, particularly in Africa. “Diageo is currently investing over Eur200 million per annum on beer assets in Africa,” points out David O’Leary. “Brewing is capital intensive. A huge amount of the cost structure of a brewing operation is set by the engineers when they build the plant. Engineering excellence in design is what influences and fixes those costs. All of our team are not only engineers but also have a business qualification. This adds a strong commercial and entrepreneurial aspect to our engineering skills.”

Access to the project site was tightly controlled by using biometrics with each individual having to present five finger prints and a PIN code to gain entry.

Supporting Diageo Engineering Excellence Team.

JAE engineering Ltd., are a specialist team providing engineering consultancy & management support to construction projects worldwide. www.jaeengineering.com atate@jaeeng.com jennis@jaeeng.com t: 00353 1 5352182

with the biggest and the best brewers on a global basis and everyone is addressing cost throughout the supply chain. The new brewhouse gives us a much more competitive beer manufacturing operation here in Ireland and that allows us to compete globally.” Paul Armstrong continues: “We have also made some major steps forward in terms of our environmental impact – reducing water usage, discharges, waste to landfill etc – and we now have a really efficient beer operation that sets us up for success. “The investment decision, taken at a time when the world was still in an economically turbulent period, was a big vote of confidence in our operations in Ireland. It is a big, bold statement of intent by Diageo of how we intend to further develop Guinness around the world. It makes us more cost competitive, more efficient, more effective and we expect to be producing our wonderful beers here for the next 254 years.” The base of one of the 27 new fermentation vessels.

of a further 7 million hectolitres of Guinness in 50 countries around the world, including Nigeria, Cameroon, Ghana, Kenya, Tanzania and Uganda. “Diageo’s beer business is worth £2.4 billion in net sales value,” points out Paul Armstrong, Supply Director, Brewing, International Supply Centre. “Between finished beer and Guinness Flavour Essence, the St James’s Gate Brewery supports about £1.7 billion of that total. So this brewery is fundamentally core to Diageo’s ambitions in beer.” Competitiveness Consolidating Diageo’s Irish brewing operations in a single site is central to improving Diageo’s global competitiveness in beer. Paul Armstrong comments: “We ship 70% of the beer we make on this site all around the world to 130 countries. We have to compete

Diageo’s Beer Performance Diageo’s beer business, which contributes over 20% of group net revenue, reported a 3% drop in net sales in the year ended June 30th, 2014 with Guinness net sales down 1%. The stout brand declined 3% in Western Europe, where market conditions remain challenging, especially in the on-trade, and was down 5% in the US. Guinness sales also fell in Nigeria, which is a major market for the brand, but performed strongly in East Africa, where price increases fuelled net sales growth of 19%.Growth was also strong in Indonesia. However, as reflected in Diageo’s most recent financial results, the decline in beer sales in Western Europe is stabilising. “We are really optimistic we will get Western Europe back into growth next year,” Paul Armstrong remarks. “In Ireland and Great Britain the beer market is declining so the ambition is to grow share in a declining market, so you are seeing new advertising. The quality of our advertising has always been brilliant but we are now putting

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

Beer plays a key role for Diageo in supporting the growth of its spirits business globally, particularly in emerging markets of the world such as Africa, where Guinness has established a strong presence.

more A&P spend behind it.” Diageo has changed its marketing strategy and has, for the first time ever, adopted a global approach for the Guinness brand with its ‘Made of More’ (a beer made of more for people who are made of more) campaign. Part of this is the ‘Sapeurs’ advertisement, which celebrates the human spirit and character, regardless of the circumstances. A similarly themed new campaign is the ‘Basketball’ advertisement, which was launched in the US and then globally. “There is an up-weight in our advertising to drive share growth and you will see more activity in GB and Ireland,” he says. “But the ultimate success of the brewery depends on exports, which is why being cost competitive is so important.” Innovation The St James’s Gate Brewery has a strong track record of innova-

tion, having invented the first widget in 1988 and developed Guinness Draught in the 1960’s. The site’s pilot plant remains at the centre of new product development in Diageo’s beer business. Indeed, innovation in both product and packaging formats will play a key role in rejuvenating the Guinness brand in mature markets and growing sales in emerging markets. Diageo recently launched Guinness Blond Lager in the US market in the first of a number of brand variants, called the ’Guinness Discovery Series’, due to be introduced over the coming months across a number of markets including Ireland and Great Britain. In Ireland, new beers have been developed under the Smithwicks brand umbrella in the form of Smithwick’s Pale Ale, Smithwick’s Summer Ale and Smithwick’s Winter Spirit. The St James’s Gate pilot plant is also developing new packaging formats. For instance, Diageo has launched a 20 litre keg in the US to expand its reach to new outlets which were unsuitable for its 50 litre kegs. “Beer is an exciting category at the moment with the explosion of interest in craft products. We regard Guinness as the ultimate craft beer,” says Paul Armstrong. “We are still brewing Guinness in the same traditional way that we have been doing for 254 years, using the same high quality ingredients - all sourced in Ireland. We have bought the best equipment so that we can now do that in the most effective and efficient way.” Supporting Diageo’s Spirits Business Beer plays a key role for Diageo in supporting the growth of its spirits business globally, particularly in emerging markets of the world such as Africa, where Guinness has established a strong presence. The iconic Guinness brand represents between 60% and 70% of Diageo’s beer business with the remainder generated by

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

The 27 new fermentation and maturation vessels each had to be transported by sea and road to the site from Germany. The last leg of this journey involved road haulage at off-peak times through Dublin’s city centre.

regional and local brands. “It helps when you have an established beer route to market and makes it easier for Diageo to introduce spirits into developing markets. Where we already have really good spirits supply chains and infrastructure, it opens up the opportunity for us to bring beer in. This creates synergies as you load spirits and beer on the same truck and supply the same customers, which saves on a cost per case delivery basis,” Paul Armstrong explains. “If you look at our main competitors, they are either big in spirits or beer. We are the only player in both – we are a premium drinks business.” Due to the strong position of Guinness, Diageo is well placed to capitalise on rising disposable incomes in Africa to fuel growth in both its beer and spirits sales. Per capita beer consumption in Africa is only a fifth of that in North America and spirits consumption is only one tenth. Indeed, Africa represents Diageo’s largest group of emerging markets in terms of net sales and the region currently employs over 5,300 people – equivalent to one in four of Diageo’s global workforce. As in Western Europe, the Guinness brand improved its performance in Africa during the second half of Diageo’s most

recent financial year, indicating a recovery in both regions. The Future The new brewhouse has the capacity to produce 8 million hectolitres of beer, leaving scope for future expansion. “The present focus is about getting the new brewery performing to maximum efficiency,” says Paul Armstrong. “We have a wonderful asset here at St James’s Gate – it really is a jewel in the crown for Diageo. We are looking towards innovation to produce new beers and so grow our beer production. Having freed up parts of the site we can now redevelop those areas to maximise the full value of the asset for Diageo.” The Supply Director, Brewing of Diageo’s International Supply Centre concludes: “The developments at St James’s Gate have been exciting. The project centred on building a new brewery but it also meant dealing with changes throughout our supply chain – we are now shipping from different locations and using new processes. Unfortunately, it also necessitated saying goodbye and farewell to many friends and colleagues in Dundalk, Kilkenny and Waterford, who did a fantastic job for us over many years.” J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

Full Strength MES For Guinness uinness is one of the world’s best G loved beers thanks to its crafted flavour and unique heritage. The Guinness name is synonymous with Ireland and the brewery at St. James’ Gate

is a landmark on the Dublin landscape. The site is steeped in history dating back to 1759 when it was founded by the original Arthur Guinness. However, what is not widely known is that the brewery is one of the largest and most technologically advanced of its kind in the world. A state of the art automation system ensures the consistency and quality of the Guinness, produced in an environmentally friendly and sustainable way. In the 1990s Guinness was an early adopter of Lean Manufacturing practices and invested heavily in lean enablers such as Manufacturing Execution Systems (MES). MES systems bridge the gap between Automation and ERP systems such as SAP, ensuring seamless integration while also providing enhanced production workflows and detailed performance reporting. Orbis MES Ltd., a Dublin

based company and leading specialist in MES systems globally, worked closely with Guinness to adapt the existing technology to match the challenging demands of what was essentially a mixed batch and

continuous process. The brewery never stands still and so in the 1990s a number of major expansion projects were undertaken starting with the GIANT Re-Automation Project to integrate the Brewhouse and FBP Plants and replace legacy control systems, culminating in the expansion of the St. James’ Gate brewery capacity to 7 mHL, following the closure of the Park Royal brewery in London. With each wave of development the MES system was also expanded and enhan-ced, in conjunction with the Orbis MES Team. As a result the system became deeply embedded in the day-today operations of the brewery. Today Guinness has just completed a new round of development with the commissioning of a new Brewhouse, Raw Materials Plant and an expanded FBP Plant. In conjunction with this development, the current MES system has been upgraded and repurposed to meet the needs of this world class facility in the future. The MES system underpins best lean practice in the brewery as follows. When product flows through the process from stage to stage all production, performance, quality and process data is aggregated in real time and housed in an Operational

Data Store (ODS). This involves combining over 100,000 live feeds from the plant with data from SAP, Lab and Weighbridge. The result is that a unique and detailed batch record exists for each unit of production and each segment of the process. This represents big data for the brewery and Orbis MES Ltd. has developed a suite of analytic applications that mine the ODS to deliver Manufacturing Intelligence. These applications which include Batch Records, Track & Trace, OEE, KPI, Yield, Stocks Reports and Dashboards are available to the users through a single unified User Interface from raw materials “in” to kegs and tankers “out”. The resulting Performance Management System developed by Orbis MES Ltd. enables Diageo to operate and manage the brewery at constant peak performance. John Tobin CEO of Orbis MES Ltd. states: “Our experience with Diageo has been a journey through the decades with technologies evolving and improving all the time. We have been very fortunate to have had a close partnership with a company like Diageo who were prepared to invest in change and believe in the long term advantage of MES systems. As a result we have developed the most sophisticated Performance Management product for Beverage and Dairy Processing companies anywhere and that is a fitting tribute to the best loved beer in the world” J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

Our experience with Diageo has been a journey through the decades with technologies evolving and improving all the time. We have been very fortunate to have had a close partnership with a company like Diageo who were prepared to invest in change and believe in the long term advantage of MES systems. 17

Sustainability From the Heart of Dublin to the World By Michael Brophy, CEO, Certification Europe ustainability is one of those concepts S that involve followers and champions. Followers who realise a good idea when

systems installed in the complex that have ensured that St. James’ gate is as energy efficient as possible. Waste has been eliminated at the brewery; nothing is sent to landfill. Over 1000 tonnes of material is now reused, recycled or repurposed as fuel to be used elsewhere in the brewery. This holistic approach to sustainability is adopted by all facets of the operation. The Storehouse is Dublin’s most popular attraction welcoming over 1 million guests through its doors each year, again as sustainably as possible. The St James’ gate site and in particular the Guinness brand holds a dear place in the heart of Dublin and every Dubliner. In recognising their corporate responsibility Diageo has begun to export their sustainability, laying down the sustainability blueprint for organisations to follow, winning dozens of awards, certifications and competitions along the way. We at Certification Europe are proud to be part of this process, by providing assurance, confidence and certainty to Guinness, Diageo and in turn every one of their clients,

they see it and champions who change standard thinking, forging a “Green” future for their business and environment long before it is popular. Diageo are truly champions of sustainability, their €170 million investment in the St. James’ gate site has led to improvements in process that most organisations can only dream off. The site at St. James’ gate is a modern engineering marvel. Combined heat and power plants, heat reclamation projects, solar shading and hybrid refrigeration systems are just a few of the many innovative

Michael Brophy, CEO, Certification Europe.

customers and consumers. It is with great honour that I congratulate all the staff and management on the completion of the expansion of the brewery, producing the very best beverages in the most sustainable way possible. J

Total Engineering Service From FDT Consulting Engineers & Project Managers DT Consulting Engineers & Project F Managers provide a Total Engineering service covering Sustainability, Project Services, Process Support & Continuous Improvement and Asset Care. FDT have worked on all of Diageo’s Irish sites since the company was founded in 1991. FDT were involved in the 4th Brewhouse project from its inception and provided Process Engineering and Brewing Process 18

support to many different work-packages, with highlights being Energy Efficient

Design, Brewing Process, Utilities, Automation and Process Commissioning. FDT staff worked closely with Diageo teams over the course of the project to maintain the site’s world-class Energy Management and Asset Care systems. FDT are delighted to have been involved this important and exciting project and wish Diageo and their staff continued success with the 4th Brewhouse. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

MERGERS & ACQUISITIONS

Coca-Cola Strengthens Position in Energy Drinks With $2.15 Billion Deal he Coca-Cola Company is acquiring a 16.7% stake in internaT tional energy drinks producer Monster Beverage Corporation for $2.15 billion as part of a long-term strategic partnership designed to accelerate growth for both companies. The agreement is expected to close at the end of 2014 or the beginning of 2015 following regulatory approvals. To align product portfolios, The Coca-Cola Company will transfer ownership of its worldwide energy business, including NOS, Full Throttle, Burn, Mother, Play and Power Play, and Relentless, to Monster. Monster will transfer its non-energy business, including Hansen’s Natural Sodas, Peace Tea, Hubert’s Lemonade and Hansen’s Juice Products, to The Coca-Cola Company. The Coca-Cola Company and Monster will amend their current distribution agreement in the USA and Canada by expanding into additional territories and entering into long-term agreements. The Coca-Cola Company will become Monster’s preferred distribution partner globally, and Monster will become The Coca-Cola Company’s exclusive energy play. These agreements are expected to deliver sustainable value to The Coca-Cola Company’s global system and accelerate Monster’s opportunity to grow internationally.

“The Coca-Cola Company continues to identify innovative approaches to partnerships that enable us to stay at the forefront of consumer trends in the beverage industry,” says Muhtar Kent, chairman and chief executive of The Coca-Cola Company. “Our equity investment in Monster is a capital-efficient way to bolster our participation in the fast-growing and attractive global energy drinks category.” According to Euromonitor International, Red Bull is the leader in the energy drinks market globally with 30.7% share in 2013, but Monster is number two with a 14.5% share. Jonas Feliciano, senior beverages analyst at Euromonitor International comments: “Coke's 17% acquisition of Monster and the swapping of energy and non-energy brands could have major ramifications internationally. Monster has been expanding internationally for some time now but with Coke's global distribution network they will have an easier time penetrating key markets.” The Coca-Cola Company gains a share of profits from one of the world's fastest growing energy brands and establishes an official relationship with Monster's highly coveted new product development team. J FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

BEVERAGES

European Fruit Juice and Nectars Market Remains Squeezed Although consumption of fruit juice and nectars across the EU contracted for a fifth consecutive year in 2013, the market fundamentals for the industry remain sound. uropean fruit juice and nectars producers are having to contend with rising raw materials and logistics costs, which are pushing up average retail prices during a period of fragile consumer confidence. This has prompted many cash-strapped consumers to tradedown from branded products to private label or from 100% juice to nectars.

Overall EU fruit juice and nectars consumption decreased by 4.2% in 2013 to 10.017 billion litres, with few countries exhibiting any increase, according to the 2014 Liquid Fruit Market Report, prepared by Canadean for the AIJN (European Fruit Juice Association). Founded in 1958 and based in Brussels, the AIJN is the representative association of the EU fruit juice industry, defending and promoting the interests of both processors and packers. Consumption of nectars fell by 3-4% during 2013 and fruit juice declined by 4.6%. The marketâ&#x20AC;&#x2122;s return to value growth in 2012 was short lived with a reversal in 2013, although this was not as sharp as the decline in volume. Germany is the largest fruit juice and nectars market in the EU in terms of volume consumption, followed by France, the UK, Spain and Italy. Indeed, these five markets account for 71% of total EU consumption. At 30.7 litres per person, Germany is also the biggest European mar-

ket in terms of per capita consumption, ahead of Finland, the Netherlands, Austria and France. Changing Consumer Trends Although consumer perception of the naturalness and functional benefits of fruit juice consumption is increasing, price consciousness is the overriding influence on purchasing decisions. Fruit juice and nectar producers are having to adapt to changing consumer preferences such as the rising popularity of on the go eating and drinking. This is leading to changing consumption occasions. For example, breakfast time, traditionally a major consumption occasion for fruit juice, is becoming less important as a key meal of the day with a consequent impact on juice sales. Producersâ&#x20AC;&#x2122; margins have been squeezed between rising costs and an extremely price sensitive retail market. The fruit juice and nectar market has also been characterised by a high level of promotional pricing. Another key market trend has been a growing shift by some consumers to drink less fruit juices and nectars but to buy higher quality products. Consequently, volume sales of chilled and NFC (not from concen-

trate) products have risen at the expense of the ambient segment. Discounting in some markets has narrowed the price difference between chilled and ambient products, prompting consumers to trade-up.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

Juice Summit 2014 – 15 & 16 October – Antwerp The Juice Summit 2014 is being held in Antwerp on the 15th and 16th of October. The summit is organised by and for the global juice industry. The 2014 summit is the second edition following last year’s successful event in Brussels which was attended by 350 senior executives from 200 companies and 45 countries. This year’s summit is being held at a new and expanded location to accommodate more attendees - the Antwerp Hilton Hotel is situated in the historical centre of the town. The organisers have followed up on suggestions and ideas from last year’s summit. This includes a call for action from the heads of the major international juice companies to bring the industry together and define a strategy to pro-actively defend and promote the fruit juice category. The Juice Challenge will outline issues and actors, as well as the details of the industry response embodied in the European Marketing Action Plan for Fruit Juices. At the summit, the strategy and content of the Marketing Action Plan will

During 2013, NFC fruit juice sales in the EU increased by 1.7% compared to 6.8% decline in FC (from concentrate) volumes. Chilled juice sales also continued to outperform ambient.

Andrew Biles, President of the AIJN.

While price remains important, many consumers have shown a willingness to pay a premium for natural products with functional qualities. This has been exploited by some producers with the development of functional and value added chilled juices targeted at specific consumer groups, according to Canadean. Negative Media Coverage The industry has also had to contend with negative media coverage regarding the high natural sugar content of fruit juices and the potential implications for consumers in terms of obesity and tooth decay. Indeed, this issue was raised at the 2013 Juice Summit in Brussels, which was the first to be hosted by the AIJN. In response, the European fruit juice and nectars industry, as represented by the AIJN, is re-focusing its efforts on the promotion of fruit juices, not just on an individual company basis but as a united indus-

be outlined in detail and the first results of the plan explained. The Summit will also examine the Global Dairy Platform (GDP) as an example of what other sectors are doing to promote their products as sustainable nutrition and as an essential part of a healthy diet. The dairy industry has been successful in turning negative perception around. This year’s programme will also include sessions on the dynamics of the fruit juice market; the juice supply chain; outlook for the main commodities; the juice CSR platform and CSR from a retailer’s perspective; lessons from other sectors; and the future of the fruit juice industry.

try, by launching a co-ordinated public relations campaign to highlight the positive aspects of fruit juice and the role it can play in a healthy lifestyle. The initiative is similar to a campaign conducted in the USA by the Juice Products Association. Positive Marketing “Consumers are confronted with a plethora of food and drink choices on a daily basis, and with media messages which can conflict and confuse. As a result, our industry now increasingly needs to present and market its products so consumers can appropriately choose to include fruit juices as part of their healthy diets and, hopefully, physically-active lifestyles,” points out Andrew Biles, President of the AIJN. He adds: “Average consumption of fruit juice and nectars has reached a plateau. In many mature markets it has declined markedly.” Aided by marketing experts from its member companies, the AIJN is preparing a professionally co-ordinated and sustained PR campaign. “An initial three year commitment is envisaged. Additional co-funding will be needed from all levels in our supply chain as we roll out activities,” Andrew Biles explains. An update on the progress being made on the PR campaign will be given at the Juice Summit 2014 being held Antwerp in October (see Panel). Health Claims and CSR Platform To reinforce consumer perceptions of the functional and healthy aspects of fruit juice, the AIJN is continuing to work with the FDOC (Florida Department of Citrus) and the Brazilian fruit industry on a research programme into health claims that can be made on citrus juices. A further initiative by the AIJN is the establishment a Fruit Juice Corporate Social Responsibility Platform with help from the EU Commission. According to Andrew Biles, the Fruit Juice CSR Platform

“has the objective to inspire and support juice companies to integrate corporate social responsibility in all stages in their supply chain no matter how large or small the business.” Unified Approach Andrew Biles advocates a unified approach by the fruit juice and nectars industry to meet the current market challenges. “The AIJN and fellow EU National Associations are much under-valued assets for our members. With better funding and strategic commitment, I feel that all juice companies could achieve more by working together through their associations rather than individually,” he says. “The moment to come together is now.”

Outlook The rate of decline in the EU fruit juice and nectars market is expected to slow to 2.9% in 2014 and to continue to decelerate before stabilising by 2018. Canadean projects that the EU fruit juice and nectars market will be 9.4 billion litres by 2019. Changing lifestyles and the different nutritional requirements of an aging population in many European countries will continue to offer new opportunities for new product development in juice blends, and pack formats as producers respond to different consumption occasions and consumer needs.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

I BEVERAGES

Döhler – The Partner For Global Growth öhler provides sustainable fruit & vegD etable ingredient solutions and systems from its own state-of-the art processing facilities. Global demand for fruit & vegetable ingredients has increased considerably over the past years. Döhler´s global sourcing of high-quality raw materials in combination with the development, investment and application of new technologies allows it to capture all valuable ingredients of raw materials from fruit and vegetables. This and the company´s global presence is essential for a reliable supply of natural ingredients. Döhler is a leading producer of high-quality fruit and vegetable ingredients of all types, from NFC juices, juice concentrates, purées, natural flavours and colours to tailor-made blends and compounds. As a global provider of natural ingredients and ingredient systems for the food & beverages industry, Döhler constantly adapts its fruit and vegetable ingredient portfolio in order to support its customers in developing innovative and successful products. Making the Best of Nature Strategic sourcing and advanced technologies ensure Döhler can make the best of nature! For Döhler, reliable sourcing doesn't just mean procurement of fresh fruits and vegetables, but also implementing sustainable business models and finding new ways to optimise and add value to our supply chain, guaranteeing a reliable supply of raw materials. Proprietary fruit processing and vertical integration precisely meet this important requirement. Döhler offers a comprehensive and in-depth portfolio of fruit and vegetable ingredients to its customers of the food and beverage industries all over the world. The global production facilities and global fruit partners are situated in all of the most significant fruit growing areas. This provides Döhler with access to a variety of fruits and vegetables, which are directly harvested and processed in the countries of origin. With state-of-the-art technologies Döhler transforms these freshly harvested raw materials into high quality fruit and vegetable ingredients. Apples and red fruits are processed in plants in Germany, Poland, China, Turkey, Hungary and Ukraine, whereas peaches, apricots, pomegranates, carrots and pumpkins are processed in Turkey and tomatoes both in Turkey and Egypt. Many more fruits & vegetables are processed with several coming from partner24

At least 50 different processing technologies are used on 75 varieties of fruits and vegetables to produce 12 product types, resulting in an almost unlimited number of fruit and vegetable raw material ingredients and blends.

ships with fruit growing and processing companies, who further secure access to essential raw materials, e.g. mango, as well as new technologies, specialty products, sustainable business models and proximity to our customers. Directly at origin, the fresh raw ingredients or even the freshly picked fruit are gently processed in order to extract the valuable components of the fruit & vegetable raw materials, down to the very last drop. Producing fruit and vegetable juices is just the beginning of a long value added chain. The Right Solution For Every Product Application Not every juice is applicable for every beverage. Carbonated soft drinks have completely different technical requirements compared to still drinks. The same applies to alcoholic beverages where not every juice concentrate is suitable, as it might cause precipitations and sedimentations based on alcohol type & content. As Döhler has been focused since its foundation on food & beverages, the company knows the exact specific technological requirements of each application.

Through intensive research and development, Döhler has developed clarified, deacidified, decoloured, CO2-stable and alcohol-stable juice concentrates. The latest addition to Döhlers‘ portfolio is a range of clarified water extracted fruit juice concentrates. These concentrates are suitable for a variety of applications. Döhler is not only a producer and provider of single ingredients such as fruit and vegetable ingredients. The company also provides ingredient systems, such as compounds, blends, emulsions or fruit preparations which already contain all valuable ingredients – developed carefully and precisely! Döhler knows & understands the exact interaction of the individual components of a recipe and how they need to be formulated so they remain completely stable in the ready-to-drink beverage – right up until the moment of consumption. “The world of fruits and vegetables is a dynamic global playing field on which Döhler has built its business and reputation over many decades,” says Kees Cools, Head of Business Unit Fruit & Vegetables at Döhler. “Our products have traditionally been used predominantly in juices, nectars and still drinks. In consequence to the global trend towards naturalness, fruit and vegetable juices and purees are used in almost every type of modern food and beverage. For these consumer products, fruits and vegetables provide nutrition, taste, colour and, many positioning options, based on the origin of the fruit, the assumed or actual benefits of the products.” J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

I BEVERAGES

High-Quality "Juice with Pieces" Beverages Require Delicate Handling and Processing By Antonio Aldini , Senior Technologist Engineer for JBT n the Middle East and Asia, consumers Iready-to-drink continue to increase their consumption of juice beverages that feature small pieces of fruit. These drinks, combining juices together with real fruit bits, provide a refreshing juice beverage with a similar mouthfeel similar to eating whole fruit.

A specialized system from JBT addresses the unique needs of processing, filling "juice with

manufacturing process. Employing Academic Research For Real-World Processors

Juice with fruit pieces is a more challenging beverage to make than juice containing small fruit fiber pulp (more popular in North America and Europe) because the delicate citrus fruit pieces need to stay intact through the entire production process. The key to creating a premium juice with fruit pieces is to preserve the fresh color and taste of the liquid while preventing damage to the suspended fruit. JBT partnered with the Industrial Engineering Department of the University of Parma (Italy) to analyze how fruit pieces get damaged or degraded while being processed. The findings from this research were applied to the design of systems engineered to minimize fruit damage using gentle pumping and sterilization treatments, limited product recirculation, and optimized mixing/blending stages.

•

fruit pieces" beverages.

In the Middle East, these drinks account for nearly twenty percent of the total nonalcoholic beverage market. In fact, to keep up with increasing demand the leading regional processor of juice with fruit pieces beverages, Saudi Arabia-based Aujan Industries, has increased their production capacity by more than six times over the last eight years. Western beverage manufacturers have also been investing in and introducing their own lines of juice with pieces beverages into these markets. In just five years after its 2005 product launch in China, the Coca-Cola Company’s juice with fruit pieces brand, Minute Maid® Pulpy™, became only their fourteenth billion dollar brand within the Company’s portfolio. These beverages require delicate handling throughout all phases of processing in order to keep the citrus fruit pieces intact. For over 20 years, JBT has continued to partner with market leaders in this rapidly growing beverage segment to develop processing solutions that maintain consistent product quality throughout the

Addressing Manufacturer Needs from Filling to Shipping

When making juice-based drinks with high concentrations of fruit pieces, the dosing, mixing and pasteurization steps are the most important steps as high heat or agitation can damage the product. If the fruit particles are damaged, a beverage manufacturer may need to add more fruit pieces to achieve the expected consistency and mouthfeel thereby incurring additional cost. JBT’s juice with fruit pieces solutions address every step where delicate fruit bits may be bruised, jostled or overheated. • Dosing. Before processing can begin, the fruit pieces must be carefully harvested to prevent damage. For citrus sacs collection, JBT provides a multi-phase juice sacs production line that removes the citrus peel, splits the fruit into individual segments, removes the fruit membrane, and completely separates the individual sacs. • Mixing. A batch system unloads the delicate fruit pieces from aseptic bags; accurately measures the juice concentrate and fruit pieces to combine them at the cor-

rect proportion; and gently mixes and reconstitutes the fruit drink. Pasteurization. Next, the drink is pasteurized through JBT Dimple Tube Heat Exchangers that incorporate smooth interruptions on the internal surface to gently agitate the product with minimal abrasion and shearing. By using only one pasteurizer in this system, the process consumes less energy and provides more uniform product quality. Filling. To fill retail containers (cans and/or wide-mouth bottles), the XLSeries Unifiller ensures a consistent fill volume with standard deviations as low as 0.02 oz. This means less product loss, reduced spillage, and trouble-free in-container sterilization. Closing. To close juice cans, the JBT SeamTec™ seamer is PLC-controlled, frequency-driven and fitted with a highly informative touch screen for simple operation. Cooling. Finally, a spray cooling tunnel transports the beverage containers through a series of cooling showers that reduce discharge temperatures so that workers can box up and ship the product more quickly.

The gentle stirring offered by JBT 's single-shot process helps fruit bits remain intact (left), unlike the double-shot process which breaks down pieces (right).

Consumers will always seek new beverage flavors and varieties to delight their senses. Finding innovative ways to process and package those beverages will give manufacturers an advantage in a highly competitive market. JBT will continue employing research, analysis and innovation to develop and refine advanced processing solutions that meet beverage processors needs. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

I BEVERAGES

Your Success is Bucher Unipektin’s Priority ucher Unipektin’s Beverage Technology B business unit is your competent partner and supplier of machinery and equipment for processing fruit and vegetables into juices or juice concentrates, for concentrating milk or producing milk powder and for vacuum drying of malt, coffee and other natural extracts. High quality products and services have positioned Bucher Unipektin as the world's market leader in fruit juice processing equipment. Bucher's fruit reception lines

Typical multi-stage fruit juice falling film concentration plant with aroma recovery.

are designed to satisfy the most rigorous standards of hygiene in cleaning the raw material. Then highly sophisticated mills ensure optimised mash preparation. With its drainage system, the Bucher hydraulic press with a self-optimising control system gives a maximum juice yield with very low sediment content. Equipped with organic, ceramic or metal membranes, Bucher's cross-flow membrane filtration systems produce clear and stable juices, while adsorption and ion exchange systems improve the long-term stability of the products. The multistage vacuum evaporators come with integrated distillation columns for aroma recovery. This line of products is complemented by vacuum and freeze drying systems that are designed in particular for producing malt beverages, coffee, instant soups and natural extracts and allow products to be dried gently to retain their flavour. Bucher Unipektin is also a well-recognised supplier for the dairy industry with evaporators for the production of milk and whey protein powder. First class products and services are fun-

Press station for fruits and berries with hydraulic HPX presses.

damental to Bucher Unipektin’s market leading position. The company operates with high motivation and flexibility to serve its customers. Based on technological and economic needs as well as on new market-trends, Bucher Unipektin develops innovative solutions and products for its markets. Thereby ecological aspects are respected. Bucher Unipektin’s business unit operates globally. Own sales and service organisations in Switzerland, Austria, Poland, Russia, New Zealand and China provide competent and quick assistance for clients. J

I PUMPS

Landia’s Pumps are as Sure as Eggs umps designed and built by Landia P have completed a decade of uninterrupted service at one of the most elite egg producers in Europe. Landia (established 1933), who have a proven track record in the food and beverage industry for successful pump and mixer installations, have eleven pumps at Oaklands Farm Eggs – producers of half a billion eggs a year. Despite the non-stop arduous application of handling chicken manure and washings, the Landia pumps have not once broken down – receiving only regular, routine servicing direct from Landia since the units were first installed back in November 2002. Oaklands’ Elwyn Griffiths comments: “Landia have never let us 26

down with their equipment, and they have been equally dependable with their back up service.” Mixers made by Landia have also completed five years of continuous service at Aspall Cyder. Landia’s submersible mixers provide essential aeration of wastewater at Debenham, near Stowmarket in Suffolk, where Aspall has been producing its cyder since 1728. In addition to its wastewater equipment, Landia has also developed the acclaimed GasMix system for Anaerobic Digestion. Founder members of ADBA (The Anaerobic Digestion & Biogas Association), Landia designed GasMix so that all moving equipment is externally mounted, therefore very easy to maintain. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

I TRADE FAIR

FoodTech ’14 – The Gateway to the European Market oodTech ’14, Northern Europe’s biggest F trade fair for food production technology, will take place between 28-30 October in MCH, Herning, Denmark. After several hard years in the wake of the international financial crisis, the fair is now back at full strength and optimism is very high. More than 275 exhibitors are expected to be on site when the fair opens and visitors can expect lots of exciting novelties, new knowledge and experiences. The Silicon Valley of Processing Technology

Food technology is one of Denmark’s greatest strengths. Denmark is situated in one of the world’s three biggest concentrations of technology for the food industry. 80% of production is exported. Many Danish companies are leaders on the world market and many of these are exhibiting at FoodTech. Hygienic design – a specialist Danish skill – is important for food product-safety and minimises the risk of having to withdraw products. This is also important because food production companies use 10-15% of the working day on cleaning. This time is not used for production. Denmark has special skills in hygienic design and has just opened a test centre for hygienic design at Denmark’s Technical University, one of only a few test centres in Europe that are certified under EHEDG norms.

In addition, Denmark provides an outstanding research environment, and cooperation between researchers, educational institutions and the food processing industry is being intensified. Because of this, machines and equipment are often developed in-house, and this happens with a major focus on reducing the use of energy and resources. For this reason, FoodTech ’14 will have three central themes: • Food product safety • Cooperation between the processing industry and research • More with less = increased production with fewer resources. Lots of Exciting Activities

FoodTech ’14 is a little anniversary because it’s the 10th in a row. This time the fair will offer more events than ever. This will increase the benefit that visitors get from their visit to the fair. Highlights: • The world’s biggest dairy exhibition for judged products – now including over 1,700 products from 18 countries

• The international conference ”Multi Business Model and technology Innovation in the Food Tech Industry” with keynote speakers from Stanford University, Unilever, University of Sheffield, Frauenhofer Institute, Wiesbaden Business School and the University of Aarhus • A demonstration of filling/packaging lines • Prize presentations, including the FoodTech Award • A 3-day student challenge with cases from Arla Foods, Dupont, Barry Callebaut and Marel. • Main sponsor: Damstahl, Denmark’s leading supplier of stainless steel. FoodTech ’14 will take place between 2830 October. The fair fills six halls with a total of 36,000 sq m. Last year the fair was visited by 9,500 professionals. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

I FOODTECH 2014 PREVIEW

Dairy Automation – Improve Plant Performance by Au2mate Dairy Library, Automation Upgrade and OEE Implementation By Klaus Dam, Managing Director of Au2mate A/S horter time to market demands rapid S Plant development and software implementation. Shorter time for plant and

Arla Foods IT reporting system & SAP.

product development and more customized products means increased demands for reduction in the production time, inline measurements and a shorter delivery time for plant upgrades, plant modifications and implementation of new projects. Au2mate is continuously developing its framework and Dairy software library to address the ever increasing demands associated with shorter time to market in the Dairy industry. This article deals with 3 prevailing factors for effective Dairy automation; The Au2mate dairy library, achievements by an Automation System upgrade and application of OEE techniques in dairy plants.

The project was implemented over 3 years. It is carried out as a step by step upgrade / expansion, spread over a total of 12 stages, in order that the commissioning is implemented with minimum interruptions. The project is implemented in close cooperation with Holstebro’s technical personnel and operators. As result of the upgrade Holstebro has reduced its costs for electricity, steam and ice water by over 20%, plus costs for water and chemicals by over 30%. Additionally, the maintenance costs for the control system are reduced and its flexibility and integration possibilities are increased. As a natural part of the upgrade Holstebro has implemented a good deal of optimization and expansions of the process plant. Today there is better traceability and far better reporting capabilities than before.

Project Process

The Au2mate Framework and Dairy Software Library

The framework and the Dairy software library are designed as a plant wide automation solution based upon open systems a future-proof investment and encapsulating the knowledge and best practise applied in the dairy industry. Furthermore, it is designed in accordance with Standards ISA S88 / ISA S95, and built for data collection and traceability through integration to the IT reporting system & ERP. Please refer to the below figure 1, Au2mate framework and Dairy software library. The Au2mate framework and Dairy software library includes all major dairy processes e.g. CIP, Pasteurization, mixing, tank control, transfer lines as well as associated traceability, operator dialog and reporting. The Dairy software library offers: • A significant reduction of control software cost and delivery time in connection with software development. • A significant reduction of time and cost spent in connection with software commissioning. • A significant increase of plant functionality and performance.

Klaus Dam, Managing Director of Au2mate A/S.

Au2mate Successfully Upgrades Control System at Arla Foods

OEE – Overall Equipment Effectiveness

As result of the upgrade Holstebro Dairy has reduced its costs for energy (electricity, steam and ice water) by over 20%, plus costs for water and chemicals by over 30%. Arla Foods amba Holstebro Cream cheese annually produces 58,000 tons of cream cheese in various flavours. Approx. 3,500 plant components are connected to the control system. The former control system was established in 1989 and the reason for replacing the control system was the main problem in obtaining spare parts and limited availability of engineering resources. Success criteria for the technical solution were to get an open system that Holstebro itself can maintain and enlarge, a futureproof investment, plus encapsulating the knowledge and experience in the dairy. Furthermore, it should be constructed in accordance with Arla Foods Standards ISA S88 / ISA S95, and built for data collection and traceability through integration to the

Au2mate supply complete solutions from data capturing sources of error in machinery and process equipment to IT integration and reporting. The solutions are based on proven standardized software and open platforms that are easy to service and further develop. OEE is a recognised tool for monitoring and improving the effectiveness of production plants. OEE has increasingly gained distribution in the dairy industry, not only on individual machines, but on complete process plants. This trend is expected to continue. OEE solutions provided by Au2mate are standardised and flexible. The OEE solutions are scalable and can be used both in connection with existing plants as well as with new installations. The solutions may be applied for overall production planning, functioning as support for detailed planning and measuring the effectiveness of the

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

daily production. The dairies object to reduce manual, paper-based routines can also be supported by integration with overall ERP systems. Our solutions are based on open stan-

dards that can be customised to the current requirements. The data is organised in databases in accordance with S95 structure, facilitating integration with other systems. Visualisation and reporting will be integrat-

ed into the infrastructure of the existing production IT, such as operator stations and reports, so that the distribution of information is simple and user-friendly in addition to being economical. J

I FOODTECH 2014 PREVIEW

Innoterm â&#x20AC;&#x201C; The Specialist in Refrigeration and Heat Pump Plants nnoterm A/S offers years of experience in Iindustrial design, installation and maintenance of refrigeration and heat pump plants for food and drink processors. This covers design and installation of turnkey refrigeration plants, to replacement of single components, overhauls and refrigerantconversion projects. Innoterm is located in Denmark, but has designed and built various plants in the neighboring countries - eg Sweden, Norway, The Faroe Islands, Germany and the United Kingdom. Slaughterhouses, dairies, breweries and animal food processors, are just some examples of industries with whom Innoterm collaborates. Internationally known customers are Arla Foods amba recognized for its high quality dairy products. At the first Hybrid Heat Pump installation in Denmark, Arla

Foods recovers waste heat by an electrical driven heat pump from Innoterm. The result: Arla lowers its CO2 emission by 1,150 ton/year, supporting their target of a 25 % C02 reduction. Other collaborators are Hilton Food Group, operating meat-processing factories in Denmark, and Danish Crown. In the newly built and highly advanced Danish Crown Holsted â&#x20AC;&#x201C; the biggest cattle slaughterhouse in Northern Europe Innoterm has supplied a 4.5 MW turnkey refrigeration plant, using the latest developments in compressor technology and system design. Innoterm uses natural refrigerants in their refrigeration and heat recovery systems, because it focuses on green technologies and reducing the carbon dioxide footprint. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

I FOODTECH 2014 PREVIEWS

For a Safe Sampling rinciples of a dead space free design P and installation of valves. The demands on sampling systems in the food production are high. The valves have to fulfill the hygienic demands and guarantee maximum safety and traceability. Unreliable methods can lead to inexact or wrong results that can cause destruction of complete charges. The use of wrong sampling valves is one of the main reasons for contamination in the food production. Modern sampling valves are connected dead space free to the process. This is possible via flange or clamp connections or by welding the valve into the process. The Valve itself consists of a plastic element that is the valve plate and the bellow. This plastic part seals directly at the process. Different elastic materials are used for this application, eg EPDM or harder materials such as PTFE.

Aseptic Sampling System by Rieger.

The shape of the valve body is designed in a way that it is easy to clean and easy to empty. The socket of the plastic component has to be without any gaps and must not cause any problems during the cleaning process. The bellow has different designs depending on the length of the stroke. Often the bellows do not need more than one big fold, which is very easy to clean. The outlet of the valve has to point downwards, so the sample can run out independently and the valve drains completely. The second outlet on the upper side is connected to the steam line and enables automatic sterilization.

With the BioCheck Valves by Rieger samples can be taken easily and very safely out of tubes and tanks. BioCheck sampling valves have been developed paying special attention to compact and rue aseptic design. The dead space free sampling valves guarantee a connection to sterile production processes without any contamination. They can be used in CIP/SIP-circuits and are easy to clean. The PTFE-bellow hermetically seals against the environment and is sealing the valve in its seat as well. The standard material in contact with the product used for the valve body is stainless steel 1.4435/316L with a roughness of Ra 0,8 um. A lower roughness up to Ra 0,4 um and even e-polishing are possible. The BioCheck valve offers a wide range of possibilities to connect it to the process. Valve types for tanks, tubes, Tri-Clamps, BioConnect and BioControl connections are available. Furthermore special connections can be ordered upon request. To fulfill the requirements of all customers the BioCheck sampling valve is not only produced in size DN 10, but also as a Mini BioCheck valve in sizes DN 8 and DN 6. In all dimensions the BioCheck valves are certified according to the TA-Luft certification for being leak proof. Rieger has developed the BioCheck to the BioCheck combi valve by connecting a steam valve directly to

BioCheck Combi Valve by Rieger.

the valve body. Equal to the standard BioCheck, this one is also available with a pneumatic and a manual actuator. Certifications of the European Hygienic Engineering and Design Group and the 3-A Standards Inc. are symbols for the accuracy during design and manufacturing. All parts of this valve are made of stainless steel 316L or higher materials such as Hastelloy C22. The cleaning or steaming valve is directly connected to the valve body, so an additional SIP/CIP valve is no longer needed. Another benefit is the reduced empty volume inside the valve, also cause through this SIP/CIP valve. To take sterile samples the BioCheck combi valve has to be sterilized via the SIP-valve before sampling. Afterwards it is possible to take exact and aseptic samples through Riegerâ&#x20AC;&#x2122;s hermetically sealed sampling system directly into the bottle without contact to the environment. For further information visit www.rrrieger.de. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

What is Lean Maintenance? ar from being a necessary evil, experiF ence shows that the proactive involvement of Maintenance within a Lean Manufacturing programme accelerates the delivery of an organisation’s Lean capability.

The key to releasing the full value adding potential of Lean Manufacturing is to transform the shop floor role of mainte-

nance engineering. Traditionally even best practice maintenance has concentrated on managing the consequences of failure. In a Lean Maintenance environment the role becomes one of enhancing the value adding capabilities of operations. The transformation at the heart of Lean Maintenance is a 2 stage process. Stage 1 is stabilisation. This involves enhancing the planned preventive maintenance process to systematically achieve the goal of zero breakdowns. The common causes of breakdowns can be traced to 2 factors, equipment condition and human error. As technology is brought under control under stage 2, the focus for maintenance shifts from reducing downtime to reducing quality defects to compensate for the Lean approach of producing in smaller batch sizes with frequent change overs. This means raising maintenance standards and extending this to include care of production tooling increasing the precision of inspection routines to reduce variation from optimum performance. The gains are significant. In summary Lean maintenance: • More than doubles the value to the organisation of traditional maintenance improvement programmes;

• Transforms the role of maintenance from fixing breakdowns to quality improvement; • Raises maintenance standards to first stabilise and then optimise technology performance • Releases maintainer time from routine activities to focus on long term solutions to technology problems; • Puts the maintenance function at the heart of Lean Manufacturing improvement process. Why not sign up for our “CPD Accredited” Lean Maintenance Strategy workshop which is being held 28-30 October 2014 in Hook, Hampshire. Call + 44 (01491) 845504 or contact sue.catt@dakconsulting.co.uk or visit www.dakacademy.com. J

Spiroflow Takes New Angle With Equipment to Tackle Dust inimising dust contamination when filling and shifting milM lions of tonnes of powdered ingredients through a factory is challenging for manufacturers, but there is innovative new equipment now available from Spiroflow. Initially developed for the handling of food and pharmaceutical ingredients, the T2 Angled Bulk Bag (FIBC) Discharger provides an air-tight operation which empties product with the minimum of residue and has angled framework, not horizontal flat surfaces, reducing settlement and saving time on cleaning. This latest equipment from Spiroflow is suited for a range of materials ranging from baby formula milk, sugar and flour to pharmaceutical powders and granules. Its unique construction stops fine dust sticking to any part of the discharger resulting in improved hygiene. Unveiled for the first time by Spiroflow to great interest from visitors at this year’s Foodex and Interpack shows, it is probably the first kit of its kind that has been especially designed in the UK to help avoid issues caused by dust residue. Dust in a factory environment can prove hazardous so manufacturers must have systems and equipment in place that adhere to the European Union’s ATEX Directive 1999/92/E, which has been implemented by the Dangerous Substances and Explosive

Atmosphere Regulations 2002 (DSEAR) act in the UK. These regulations require that employers classify places where explosive atmospheres are likely to occur - such as in the form of combustible dust generated by processes such as flour milling and sugar grinding – and must implement protective measures and select appropriate equipment for use in those environments. Spiroflow’s world-leading products for conveying and bulk handling are designed and built to USDA standard and meet regulatory requirements for transporting and handling powders and other materials in potentially hazardous conditions. For more information on Spiroflow’s products and services visit www.spiroflow.com or call +44 (0)1200 422525. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

I PROCESSING & PACKAGING

PPMA Show 2014 Returns to the NEC to Demonstrate Opportunities For UK Manufacturing Prosperity s growth in the UK’s manufacturing A sector continues to accelerate, industry professionals are poised to flock to this year’s PPMA Show 2014, the UK’s premier, free-to-attend complete production line event for processing and packaging machinery. Now in its 27th year, the show has been recognised as the only UK event that attracts hundreds of machinery manufacturers and component suppliers across a wide range of industries including food, drink, pharmaceutical, cosmetics, dairy, snacks, construction and electronics. Demonstrating the Future of Packaging Innovation

Attendees at the NEC in September will be able to view a number of exclusive machinery demonstrations. Kliklok International, one of the world’s leading packaging machinery manufacturers, will be launching its new Certiwrap ELITE wraparound cartoning system on stand E32 at this year’s PPMA Show. Capable of improving functionality, repeatability and flexibility on the production line thanks to new modular infeeds which help manufacturers adapt to increasingly fast-paced market requirements, the ELITE can be tailored to different pack styles, sizes and formats. It also features a choice of twin or triple arm carton feeders to improve handling and is designed to increase throughput rates on high-speed lines, being capable of packaging at speeds

up to 300 cartons per minute dependant on product size. Award-winning end-of-line automation specialist Endoline Machinery will address the need for packing speed and flexibility with the launch of their latest SMART machines – including the UK debut of the 744 Fully Automatic Random Case Sealer on stand D30, believed to be the fastest of its type in the world. Interactive demonstrations will also be available over on stand B40 where Olympus Automation will demonstrate its Steam Infusion™ technology, a new low-risk cooking process that heats, mixes and cooks liquid based food products quickly and efficiently. Finally, Pacepacker Services, the award winning automation expert, will be showcasing the widest range of pick and place solutions on the market on stand C50. Six different pick and place systems will demonstrate the innovative ways to handle a variety of unpackaged and packaged FMCG goods. As well as Pacepacker’s own equipment, robot technology from FANUC and Festo will also be on show. Speakers Under the Spotlight

Several high-profile seminar speakers have already been announced, including former cabinet minister, politician and journalist Michael Portillo who will provide this year’s opening address and discuss the resurgence of British manufacturing and its role in rebalancing the economy. Also announced for the open-

ing day of the exhibition, Christine Tacon, the Government’s first appointed supermarket ombudsman is set to steal the spotlight with a combative talk on the UK’s leading supermarkets. Further speakers for the 2014 PPMA seminar programme include Craig Mochrie from Morrison Bowmore and Martin Dallas, from Essentra Packaging who join the line-up on the first day to deliver exclusive presentations on real time management information systems and creative packaging technologies. On the second day, Ian Barnett from Coca-Cola Enterprises and Kevin Vyse from Marks and Spencer will talk about sustainability and consumer packaging.

Finally, attendees visiting the show on the last day can join Peter Hooper from Wykes Farms who will explain how to optimise automation investments in the food and drink industry, while Mark Elderkin from The Good Whey Company, will speak about the role packaging plays in supporting brand proposition. Taking place 30 September–2 October 2014, this year will see the event return to the sole ownership and management of the PPMA Group of trade associations. Lloyds TSB is the headline sponsor of the PPMA Show 2014. For more information on the PPMA Show 2014, please visit www.ppmashow.co.uk or join the conversation on twitter (@PPMAshow #PPMA14) or the PPMA Show LinkedIn group. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

I PPMA 2014 PREVIEWS

AutoCoding Systems to Demonstrate New Entry Level Coding Management Solution at PPMA 2014 utoCoding Systems Ltd will be A demonstrating their recently developed new AutoCoding solution

and message data to one or more devices on a limited number of lines, reducing downtime, as well as elimifor coding and packaging integrity at nating the risk of coding and packagthis year’s PPMA Show. Visit Stand ing errors. The resulting business C12 to see how the new web-based benefits include increased speed and AutoCoding product can be used to reliability of line set-up, reduced job securely set-up and control a single change-over time, reduced risk of device, extending to multiple devices human error and the ability to manon multiple lines. age complex packaging formats. This brand new product was first Packaging line activity can be developed for OEMs as it is configviewed remotely via any web-enabled urable to specific requirements. It is, device such as PC, tablet or therefore, well placed to serve as the Smartphone. Management of codstandard software solution for those ing and scanning equipment has equipment manufacturers who wish never been easier – and all from one to offer a world class solution without central point. Screenshot showing product running on the line. the need to use in-house software Visitors will also have the opportuengineering resources or time to nity to see new applications includdevelop their own ing Unique Numbering, the Loma TRACS reporting tool designed This is another example of a new product design to come from to monitor the performance of multiple Loma checkweighers and the development team at AutoCoding Systems. Having been in metal detectors, as well as the Shoplogix real-time performance development for the past 2? years, the new product uses the latest monitoring solution. methodologies in software engineering. It is now being offered to For more information, contact Janet Harrison on Tel + 44 the end user market as a cost effective coding and packaging verifi- (0)1928 790444, Email janetharrison@autocodingsystems.com or cation solution. The centralised application deploys secure set-up visit www.autocodingsystems.com. J

New Feeding Frenzy on Partners in Packaging Stand eeding and product handling specialists F Partners in Packaging (Machine Systems) will showcase a number of the latest feeding technologies from its principals on stand B11 at this year’s show, as well as new developments in denesting - one made in the UK. One of the stand highlights is the new ‘Flowfold Two’, base card feeder and folder from Streamfeeder. Designed for simple and repeatable operator size changing in less than 2 minutes, this latest machine design has evolved through the experience gained from installing over 1,800 machines in the UK market, says PiP. In addition, the Northfield Universal Bandolier feeder will be running continuously wrapped perforated bandolier (‘continuous string’ style) promotional inserts. The Universal is used to feed a variety of 2D and 3D items such as promotional coupons and dosing spoons into host machines such as baggers and cartoners 38

Also on show is PiP’s new, UK manufacPip’s expertise enables them to offer tured range of Pick and Place tray den- machines to feed a vast range of products esters. The high speed rotary machine from syringes and dose cups to trays and RPP Quad will be denesting trays at lids. J speeds of up to 150/min. “We have incorporated the latest drive and control system on offer to produce a very high speed yet flexible machine,” says Duncan Macintyre, director at PiP. The latest design A Series Twin intermittent denester will also be demonstrated, handling a range of deeper trays for later installation onto a flowrapper at a major pie manufacturer. The A Series Twin is a wash-down stainless machine with quick size change adjustability, with The Streamfeeder Flowfold Two’s optimum design has evolved the added flexibility to be as a result of over 1,800 UK installations. able to handle deeper trays.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

I FLEXIBLE PACKAGING

KM Packaging Brings ‘Klarity’ to the Convenience Foods Market n the year of its 30th anniversary, KM Packaging Services is markIflexible ing another milestone in its mission to develop revolutionary new packaging solutions for the global convenience foods industry - the company is launching a new generation of optically-superior lidding films for aluminium foil trays. Hot on the heels of other innovative lidding developments from the company - such as KSeal lidding films for meat, poultry and fish packaging and Superguard Oven - comes another unique product for the meat, fish, ready meals and fresh produce sectors, called KM Klarity. The company has developed KM Klarity as a flagship product to extend its existing range of PF3 films. KM Klarity offers a game changing superior antifog performance even through the temperature variations that can occur during distribution and retail. This new solution also maintains the KM reputation for excellent sealing qualities on uncoated smooth walled aluminium foil trays, KM Klarity is initially available in 62 microns with barrier, for extended shelf life, and non barrier versions available. Both print-

ing and lazer perforation options can be selected. This exceptional new film offers the food industry excellent optics and clarity allowing the consumer to view and choose prepared food with ease. In a nutshell KM expects this latest versatile product, which is suitable for snacks, fresh fruit and vegetables, meats and poultry, to become its most popular film within a few months. Commercial Director, Graham Holding, explains: “KM Klarity is a perfect example of the KM Packaging team anticipating trends and future demand, and improving the presentation and technical performance of films for ready meals and fresh produce accordingly. At KM we have stayed close to retailer themes and constantly look for new ways to innovate, to provide our customers with the solutions to meet evolving consumer demand”. For more information about the company and its vast range of flexible and reliable packaging solutions, visit www.kmpack.co.uk or call 01832 274944. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

Corrugated Packaging Sector Now Allows the Personal Touch ustomised packaging is becoming C increasingly popular and the Corrugated Industry is exploiting the latest digital printing technology to provide even more commercial opportunities for retailers and brand owners. Corrugated already protects, is colourprintable, merchandisable and the most recycled packaging medium. The latest advances in digital printing from a number of suppliers allows corrugated to align with other personalised packaging formats, adding another string to its bow and enabling the industry to become even more effective at engaging consumers. Confederation of Paper Industries (CPI) says that innovative technology is already improving in-store performance through better print capability. High Quality Post Print (HQPP) has transformed corrugated packaging from protective transit packaging, into multi-functional, colourful, Shelfready Packaging (SRP), without compromising product integrity. Its flat surface is ready-made for exploiting digital platforms such as Smartphone apps and Quick Response (QR) codes, meeting consumers’ growing appetite for instant access to product and dietary information. Print customisation is already becoming established for labels and flexible packaging. High-speed digital, single pass, full colour corrugated printers will realise the same print-on-demand benefits for the

orrugated sector, by allowing tailored print runs for seasonal, regional or event-based promotions. Graphics will go to press in hours instead of days, for small or large production runs with exceptionally fast turnaround times, incorporating personalisation and graphic changes, data merge capabilities and mass customisation. Wide-format, flatbed digital printing technology is not new to the corrugated sector. However, CPI says that embracing new print technology can help the industry

to meet increasing demands from brand owners and retailers for shorter order run lengths, minimal waste and point of sale packaging, to differentiate a brand and attract consumers. CPI’s Director of Packaging Affairs, Andy Barnetson, says: “Personalisation will allow the Corrugated Industry to become even more creative and bring an extra dimension to packaging. Print-on-demand offers retailers and brand owners cost-effective, customised marketing campaigns to boost sales in an increasingly dynamic retail market.” The UK Corrugated Industry is already a pioneering force in sustainable, lightweight, recyclable packaging that does not compromise the integrity of the goods, while innovative developments in engineering have led to new types of even more efficient corrugated packaging solutions. Corrugated packaging companies are investing significantly in new technology in response to a challenging retail landscape, as brand owners seek ever more effective on-pack communications to entice customers to buy their products. Unlike other packaging alternatives, with corrugated one size doesn’t fit all. Exploiting print-on-demand technology and the ability to personalise, when added to existing innovations for the supply chain, will allow corrugated to stay at the very forefront of the packaging industry. J

Bottle Heaven Since 1937 ooking for a bottle manufacturer with ranges to inspire you and L to make your product stand out and give shelf appeal? Then look no further, Measom Freer manufacture and stock 28 different

For further information contact Measom Freer on Tel +44 (0)116 2881588, Fax +44 (0)116 2813000, E-mail sales@measomfreer.co.uk or buy online at www.measomfreer.co.uk. J

bottle ranges in all shapes including round, square, oval, tall, dumpy, tube and many more. They have 22 different sizes within those ranges from the smallest bottle at 2.5ml to largest at 1 litre with neck sizes from 15mm through to 31mm. All their bottles are manufactured in food grade plastic with a range of finishes available depending on the type of plastic used to give a clear, opaque or coloured look. They’ll tailor their products to suit your requirements! Need a cap, well they sell those too from general screw, disc and flip caps to more precise application from nozzle, dropper, luer caps and spray pumps. Measom Freer are continually adding to their ranges, often in response to customer requests, resulting in a constantly evolving portfolio of products from jars and spatulas to boxes and fasteners. With cost effective prices and a minimum order of just a single box. They also offer a screen printing service available in all colours on their products. With next working day delivery you can rely on them to find your perfect product and quickly. FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

I LABELS & LABEL APPLICATORS

Labels Make the Difference n order to help products really stand out, Imore product packaging is becoming more and important, especially as for one local product you for sure get dozens of substitutes from all over the world. For sure the quality, its origin, how and where it is produced are all extremely good and important selling points. But placed on a supermarket shelf next to other similar products the packaging makes the difference.

Smaller manufacturers most times have to use standard labels, which do not have a special eye-catching look to separate them from the big brands. For those applications Primera Technology presents its inkjetbased LX-Series colour label printers at Speciality & Fine Food Fair, stand 348. The latest model of that series – the LX900e – is Primera’s fastest and most economical to operate printer. A print resolution of 4800 dpi guarantees a printout in photorealistic quality and enables users to add vibrant pictures of their products next to small texts such as ingredients, instructions or barcodes and still every detail of that label is razor-sharp. Labels can be printed whenever they are needed and in the required quantity. Separate ink cartridges for cyan, magenta, yellow and black keep operating costs low. Short runs are printed fast and efficiently, helping you to increase the production of your products. To further increase the production apply-

ing the finished label should be easy and fast as well. The AP-Series of Label Applicators is the perfect accessory. AP550e Flat-Surface Label Applicator is a semi-automatic applicator that makes it fast and easy to precisely apply product and identification labels onto a wide range of flat surfaces such as rectangular or tapered bottles, boxes, packages, bags, pouches, lids, tins and much more. Labels are applied straight, without wrinkles or folds, in exactly the location desired. For further information visit www.primeralabel.eu. J

Denny Bros – Specialist Printers and Originators of the Fix-a-Form Multi-page Label enny Bros multi-page labels are used extensively in the food D and drink industry as the supermarket environment is increasingly competitive and on-shelf presence is key to creating sales. With the rising costs of getting POS material into shops and food outlets, it has become much more critical to build a culture around the brand on shelf with on-pack ideas and the easiest way to make impulse decisions happen is to flag-up intelligent-CRM messaging by using the multi-page label concept Fix-a-Form. Fix-a-Forms are often used by brand-owners to supply additional information or run on-pack promotions which provide the benefit of quick or instant-access information. These custom-built, on-pack marketing devices can boost sales uplifts, some reported to be as much as 25%. Fix-a-Form multi-page labels allow for the communication of large amounts of text on-pack which is important given the new labelling legislations coming in to force. You can also include multiple languages. Working in synergy with the host pack, the labels eliminate the need for major artwork changes to the original packaging which can be costly and time consuming, especially where short-lived promotions are concerned. J FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

I SUSTAINABILITY

Ecolean Continues to Ride the Wave of Demand For Lighter Packaging Solutions colean’s innovative and lighter packagE ing solutions for the dairy and beverage industry are currently breaking new ground in many markets around the globe. With the continuing strong demand for attractive, efficient and environmentally friendly packaging solutions, juice and dairy pro-

ducers in Asia, Russia, Europe and South America are all contributing to Ecolean’s continued growth. By introducing the new package integrated reclosing device SnapQuick, Ecolean yet again proves that innovation and consumer needs form an integral part of its package solutions. Full Speed Ahead in Europe In the last few years, customer demand for Ecolean’s packaging solutions has really started to pick up. In 2013, Orangina Schweppes in France and Belgium expanded its packaging portfolio for the classic juice drink Oasis with the launch of P’tit Oasis in Ecolean’s Air Aseptic 200 ml package. Being a lightweight and flexible package, P’tit Oasis and Ecolean is a perfect match for young consumer needs. “We are naturally very pleased with the success of P’tit Oasis in our packaging. It is a breakthrough in Western Europe for us and we look forward to a long-term rela-

tionship,” says Anna Anneras, Marketing Director of Ecolean. The positive consumer acceptance of the new packaging solution for P’tit Oasis has had a knock-on effect. Currently, a number of installations for similar products are under way in important markets such as China, Italy and Pakistan. The dairy industry is also generating positive vibrations in Europe for Ecolean. There is long-standing partnership with global dairy producer Danone in Russia based on chilled products and as a result Danone has now introduced Ecolean’s packaging solutions in Portugal. SnapQuick World Premier in South America During the year ahead, Ecolean expects to see several new market introductions all over South America. One of the leading dairies in UHT milk in Colombia, Alquería SA, has recently launched its biggest milk brand in the Ecolean Air Aseptic one litre package. Alquería SA will be one of the first in the world to use Ecolean’s new SnapQuick reclosing device. Ease-of-use and lightness have been pivotal in the development of SnapQuick, which makes reclosing easier than ever. By folding the top and giving it a slight pinch, the integrated buttons and hinge snap into place, sealing the package. “Alquería Dairy is known for driving innovation and the new Ecolean SnapQuick packaging format fits perfectly in our product portfolio. We couldn’t be happier with the introduction, the package has been well received as it suits our consumers, making it more practical and fun to consume milk,” says Carlos Enrique Cavelier Lozano, CEO of Alquería SA.

Lighter Packaging – Less Environmental Impact By using minimal amounts of raw materials, Ecolean has developed lightweight packaging solutions which combine low environmental impact with consumer convenience. Ecolean’s packages weigh approximately fifty percent less than conventional cartons or bottles. The packaging material is made from a thin film, part plastic (PE and PP) and part chalk (forty percent by weight), one of nature’s own materials. That all adds up to truly lightweight packaging that requires less energy to produce. Low waste volumes also save considerable resources in the waste handling process. Once empty, the package flattens down to the thickness of an envelope and so takes up minimal space in the waste bin. Ecolean’s packaging solutions are available in sizes ranging from 200ml to 1,000ml, Ecolean Air Aseptic for ambient distribution and Ecolean Air for chilled distribution. Find out more about Ecolean at www.ecolean.com. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

I FRESH PREPARED FOODS

Strong Innovation Pipeline is Key to Bakkavor’s Success Innovation is crucial to maintaining Bakkavor’s position as the UK’s leading provider of fresh prepared foods and in supporting its growth in key international markets. ith an annual turnover of £1.67 billion in 2013 and employing nearly 19,000 people, Bakkavor specialises in making and developing private label prepared foods for the top global grocery retailers and well-known international foodservice operators. Its offering is based on innovation and supplying outstanding quality, value and customer service. Bakkavor operates 32 production facilities in UK along with 20 sites in five other countries. It manufacture 5,000 different products across 18 categories. In the UK, it holds market leading positions in 12 out of 16 categories in which it competes, including ready meals, pizzas, desserts, leafy salads, convenience salads, dips, soups, sauces and prepared fruit and vegetables. Indeed, Bakkavor’s consolidated market share across these 16 categories is estimated at close to 30%. Having accumulated over 40 years of experience in developing own-label brands, Bakkavor’s vision is ‘To be recognised and respected as the world’s leading fresh prepared foods provider.’

innovation awards, and received seven awards from its customers. Ongoing investment in Centres of Excellence is allowing Bakkavor to further strengthen its core capabilities to develop unique products and improve manufacturing efficiencies. This is resulting in gains in market share in categories such as ‘food to go’ meal salads due to a new dedicated nut facility, and pizzas due to Bakkavor’s investment in wood-fired pizza technology.

Agust Gudmundsson, chief executive of Bakkavor.

in 12 out of 16 categories in which it competes.

boundaries, whether it is in launching new products, implementing new processes or introducing new manufacturing technology. For example, Bakkavor recently opened the first UK facility dedicated to nut-based products and has rolled-out deli counters in partnership with one of its key retail customers. Agust Gudmundsson, chief executive of Bakkavor, comments: “We believe that leading the field in innovation is critical to developing long lasting customer relationships, maintaining our market leading positions and accelerating our sales growth. In 2013 we launched almost 2,000 products across the group and received over 30 external accolades including eight awards from customers and ten food quality and innovation awards. We were particularly delighted to be named Chilled Own-Label Supplier of the Year 2013 by ‘The Grocer’, a UK trade publication.”

Innovation Bakkavor harnesses its in-depth understanding of its markets, customers and consumers to develop and launch successful products that fit changing consumer lifestyles – providing the food group with market-leading positions and a reputation for innovation excellence. Bakkavor actively promotes an innovative culture throughout the group, encouraging staff to embrace opportunities and push

Core UK Business Accounting for £1.48 billion of group sales in 2013, the UK is Bakkavor’s core market. Maintaining a strong innovation pipeline throughout the year as a result of targeted investments in key categories helped Bakkavor to increase UK sales by 4.4% in 2013 and to outperform the overall fresh prepared foods market. Bakkavor launched over 1,200 products in the UK during the year, won eight industry food quality and

In the UK, Bakkavor holds market leading positions

International Operations Bakkavor supplies retail and food service customers in Belgium, Italy, Spain, USA and China (including Hong Kong). The international element of its business generated sales of £186 million last year. Innovation is also crucial to the growth of Bakkavor’s international operations as seeks to develop strong partnerships with key retail customers and food service operators. This emphasis on customer service was recently recognised by two awards in Asia and a product innovation award for Bakkavor’s Italian pizza business. Meanwhile, in the US, Bakkavor has recently enhanced its offer by launching a number of new bakery products, expanded its ethnic sauce ranges and introduced a number of seasonal variants. In the UK, Bakkavor’s innovation strategy is now benefiting from a more benevolent R&D tax relief regime. "Our team has worked closely with key Bakkavor personnel to understand a diverse range of projects, across departments,”explains Martin Hook, managing director of Alma CG UK, the leading R&D tax specialists. “This has enabled Alma CG to identify a total of £25.6 million of eligible R&D costs from 2009 to 2012, a 40% increase on the average level of previous claims. We’re now working on Bakkavor’s future planning.” J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

QUALITY

& HYGIENE

LABORATORY TECHNOLOGY

Randox Food Diagnostics – Protecting Consumers and the Food They Eat hink back over the last 60 minutes T what did you do? Randox Food Diagnostics probably guaranteed the safety of beef in Brazil, Chinese pork, and honey in Ukraine - to name only a few. That’s because every hour of every day, 96 Randox Food Diagnostics tests protect consumers and the food they eat. Randox Food Diagnostics develops and manufactures technology and products for drug residue screening and quality analysis. Tried and tested immunoassay techniques form the basis of the company’s products servicing the meat and seafood, dairy, and honey industries detecting drug residues such as antimicrobials, anthelmintics, and growth promoter families. Randox Food Diagnostics covers all the major antibiotic

families including sulphonamides, quinolones, tetracyclines & nitrofurans, and recently entered the mycotoxins market. Randox Food Diagnostics’ growing list of products are trusted by some of the world’s most recognisable companies and increasingly government and regulatory labs are adopting Randox Food Diagnostics’ Biochip Array Technology as a screening tool. Developed through a decade of research and an investment of £200m, Biochip

Array Technology detects up to 22 different analytes from a single sample, adding huge potential for savings via time and cost. Randox Food Diagnostics’ ELISA kits offer excellent performance in terms of fast sample turn-around, minimal sample preparation, extended shelf-life, precision for both Inter and Intra precision <15% and low limits of detection. With controls on food safety becoming ever more complex, having the right technology is key. That’s why over the next 60 minutes Randox Food Diagnostics’ products might protect seafood in Vietnam, screen honey in India, or test milk in China. The challenge is global, and with 96 tests used every hour - so is Randox Food Diagnostics. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

QUALITY

& HYGIENE

I LABORATORY TECHNOLOGY

USDA Releases Results of Water Based Aflatoxin Test Study s part of the National Mycotoxin Quality Assurance Program, A the USDA Grain Inspection Advisory Committee has released the results of a comparative study on water-based aflatoxin test kits. Neogen, Charm, and Envirologix test kits were compared against a GIPSA reference method. Neogen’s Reveal® Q+ Aflatoxin Green test and one other compared favourably against the reference method in the detection of aflatoxins in ground corn. “GIPSA’s study showed our test most closely compares to the GIPSA reference method,” says Dr Steve Chambers, Neogen’s Sales & Marketing Director. “Our Reveal Q+ tests for mycotoxins are designed to be the easiest and most reliable quantitative tests for mycotoxins available, and they are performing to specifications.” The results of the study are posted on the USDA website and can be found by visiting www.gipsa.usda.gov. Reveal Q+ for Aflatoxin Green delivers precise results ranging from 2 to 150 parts per billion (ppb) of aflatoxin after only six minutes. Reveal Q+ test strips are read in Neogen’s AccuScan® lateral flow test reader to deliver quantitative results. Neogen’s test offers room temperature incubation of the test strip and storage of the test kit eliminating the need for an incubator and

refrigeration space, and requires minimal equipment to achieve precise results. For further information please contact 01292 525 625, Email mycotoxins@neogeneurope.com or visit www.neogeneurope.com. J

Irish Company Patents New DNA Testing Technology rish genetics company IndentiGEN has Itechnology announced details of a new DNA testing which will offer it major advantages in the global marketplace. IdentiGEN has patented a new chemistry based technology which can cut the labour cost of DNA testing by 60%. IdentiGEN is based in Dublin and offers DNA traceability services to major meat producers across the globe with offices and laboratories in Dublin, Wales, the US and Canada. The company says that the novel chemistry based approach to genotyping that it has tested and validated brings major advantages over the market leading alternatives. IdentiGEN founder and Managing Director Ciaran Meghen says: “The new testing approach, for which patents have been filed, has been delivering transformational improvements in DNA sample analysis since it was put into production testing

earlier this year. In particular the technology can reduce the labour cost of data scoring by more than 60%. The experience within IdentiGEN’s own facilities has been a dramatic reduction in the cost of generating results.” The approach, called IdentiSNP, offers a clear alternative to the established approach and opportunities to commercialise the product are now being actively pursued on a global basis. To support the development IdentiGEN has recruited experienced additional staff including molecular biologists and product managers. “While this technology has transformed our internal cost base, and will support our

continued growth and development in the area of animal and meat product identification in particular, the opportunity to promote our new formulation to a wider customer base is an exciting development for our business,” he says. The new genotyping chemistry has been validated on multiple instrument systems including Douglas Scientific, LGC, Fluidigm and ThermoFisher systems. A dedicated website www.identisnp.com has been launched which provides additional information and contact details. The project has been supported by Enterprise Ireland under its Research and Development grant scheme. IdentiGEN provides food retailers, processors and producers with the capability to identify and trace the source of meat products through the entire supply chain. The genetics company was launched as a Trinity start-up company in 1996. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

QUALITY

& HYGIENE

LABORATORY TECHNOLOGY

For Safer Food – BIOTECON Diagnostics Simply Builds Up Trust IOTECON Diagnostics, B located in Potsdam, Germany, is one of the

Through certification and accreditation, the company builds trust and demonstrates transparency to customers. BIOTECON Diagnostics has been DIN EN ISO 9001 certified since 2003 and has maintained DIN EN ISO 17025 accreditation in the service sector since 2005.

world’s leading companies for rapid microbiological testing methods for food, beverage, cosmetic, and pharmaceutical industries. Founded in 1998, the ISO 9001:2008 certified, international biotechnology company develops, manufactures, and markets its foodproof® and microproof® product lines. The high quality products offer innovative rapid solutions for DNA extraction and detection of a wide range of test parameters based on real-time PCR.

Service Testing & Development

Foodproof® Products

BIOTECON Diagnostics’ foodproof® product line ensures fast and accurate detection of pathogens, spoilage organisms like beer spoilers or Alicyclobacillus, GMOs allergens and animal species testing from all kinds of food and beverage matrices. The kits are used by food and beverage companies including some of the biggest food companies in the world as well as by government laboratories, research facilities, and custom service laboratories. Many foodproof® kits for the detection of pathogens are validated and approved by independent institutions such as AOAC, NordVal and MicroVal. Examples include kits for the detection of Salmonella, Listeria monocytogenes, Cronobacter spp., E. coli O157 and Enterobacteriaceae. Foodproof® Automation Solutions For the Food Industry

The foodproof® RoboPrep Series is the first commercially available, fully automated sample preparation and PCR set-up system and independently validated and certified for the food and beverage industry. The RoboPrep+ Series provides a fully automated solution for DNA extraction and PCR setup effectively reducing hands-on-time and error sources, while significantly increasing laboratory efficiency. The system

has been optimized especially for high throughput demands of the food industry and is applicable for the detection of different Gram-negative and Gram-positive bacteria in various food matrices. The foodproof® Magnetic Preparation Kit III in combination with the KingFisher Flex is an accurate and comprehensive solution for the DNA extraction for GMO, allergen and animal species testing. The foodproof® XTract has been developed for low- and medium throughput testing. Liquid handling tasks like PCR setup and normalization can be accomplished with the new foodproof® RoboSet+. The microproof® Software Suite provides a tailor-made automation solution in combination with the foodproof® RoboPrep Series.

The company’s custom service laboratory provides superior experience in microbiological and molecular biological service testing of food and beverages, water, disinfectants, as well as pharmaceutical and cosmetics products. BIOTECON Diagnostics additionally offers customized contract development. Due to close contacts with many different industries, the company is well aware of customers’ current and future challenges. BIOTECON Diagnostics is thus able to provide flexible solutions to production and processing companies through new, tailored, and economical approaches. For further information visit www.bcdiagnostics.com. J

Microproof® Products

The microproof® product line offers highly specific and fast solutions for pharmaceutical industry. The microproof® Hygiene Screening System simultaneously detects Staphylococcus, Micrococcus and Corynebacterium in environmental monitoring samples. Certified Quality

BIOTECON Diagnostics is dedicated to providing the highest quality products and services. The company markets its products directly as well as through a continually growing network of local distributors.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

BIOTECON Diagnostics’ foodproof® product line ensures fast and accurate detection of pathogens, spoiilage organisms like beer spoilers or Alicyclobacillus, GMOs allergens and animal species testing froom all kinds of food and beverage matrices. 51

I WASTE MANAGEMENT

A Smaller Waste Line For a Better Bottom Line By Will Todd, Managing Director of Carbon Architecture Ltd he old expression “waste not want not” has T even greater relevance today. The UK food and drink manufacturing industry accounts for 3% of UK carbon emissions, 3.9M tonnes of food waste, and uses a whopping 0.2 Bm3 of water, equivalent to 3% of the entire public water supply. The sector is experiencing increasing pressure on profit margins from price increases in the supply chain. This is compounded by the necessity to deliver competitively priced products to retailers and ultimately to cost conscious consumers. Reduction in waste cost is therefore fundamental to maintaining and increasing ongoing profitability. Carbon Architecture was commissioned to produce the membership survey of the British Dairy and Brewing Industries in 2012 and 2014. This was undertaken primarily to formulate an industry wide position on Climate Change legislation and ultimately reduce the fiscal impact of this on the sector. The survey included the largest 45 Brewers and 90 Dairies and was comprehensive with respect to resource efficiency. The data when collated provides a unique and authoritative view of cross organisational practices and comparative metrics. Significant Cost One of the consistent outputs from the survey confirmed that waste represents a significant cost to food and drink manufacturers. However what became clear is that there are a number of opportunities for this cost to be readily reduced, providing worthwhile profitability improvements. As a direct result, Carbon Architecture developed a series of high-

ly successful methodologies and processes to identify and reduce waste. The Carbon Architecture waste reduction program has been demonstrably effective and successful. It has been adopted by a number of high profile dairy and brewing clients with the result that over a 2 year period the delivered savings generally equate to 5 times the expenditure incurred on introducing efficiencies. Waste is a very widely used term which perhaps needs to be better defined to understand the true scale of the problem. Whilst waste consists of more than just the contents of a skip or tank, simplicity in quantifying the value at stake is critical. Identifying the most significant value item(s) and using these for tracking, reduces the complexity required in analysis. So what legitimately makes up the cost of waste or scrap? The tangible elements that make up the cost of waste include the raw materials lost, labour, utilities (energy, water and effluent), disposal costs and taxes. In addition intangible elements include the opportunity for additional production capacity, improvements in quality and repeatability, reduced inventory holdings and waiting time. Typical sources of waste range from overproduction, destructive testing, defective production, customer returns and excess to specification. However often overlooked are inprocess losses which can be the main contributor to the overall total. It was interesting to note that the surveys identified the typical resource savings that can be achieved as a percentage of total purchase costs are: • Raw Materials 1% - 5% £££ • Energy 5% - 15% ££ • Water 5% - 30% £ Effective Waste Control Maintaining effective waste control is by definition an ongoing process. The successful approach is to identify and prioritise cost saving opportunities. This involves the segmentation of the supply chain to create a loss map which formulates the areas of risk and opportunity. Once created the data provides a rich picture of variance and control, enabling prioritisation of actions. The prioritisation can be by any number of factors including for instance; risk, return on

investment, scarcity of resources, compliance and / or statutory requirements. The results of the surveys beg the question “If these savings are available from waste reduction why has there not been more attention paid to it?” Communication up, down and across an organisation is difficult without an agreed format, involving readily understandable and prioritised data. Data is also often complex to interpret and comparison of performance within sectors has also been difficult without having access to anonomised data and industry wide metrics. Greater Opportunities The availability and use of these metrics now provides greater opportunities to identify and quantify the value of waste reduction in a structured and prioritised manner. Furthermore, cloud technology delivers a low cost means of gaining access to disparate data, understand it and the actions required. Meaningful insight enables action. In house expertise continues to juggle the demands of customer service, quality and performance, which can leave detailed analysis of operational waste as a low priority. External skills should be considered in order to complement existing skills, accelerate delivery and to enable capability gaps to be identified and bridged over time. The benefits to stakeholders for reducing the cost of waste are significant wins in financial and sustainability terms. Don’t waste the opportunity; implement business improvement through product waste management. The bottom line really will benefit. For further information E-mail Will.todd@carbonarchitecture.co.uk or visit www.carbonarchitecture.co.uk. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

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I WATER SERVICES

REMONDIS Aqua – Creating Ideas to Meet the Challenges of the Future ermany-based REMONDIS Aqua is a G leading specialist in all aspects of water management services including water supply and wastewater treatment. REMONDIS Aqua has over 25-years of experience in operating and therefore designing innovative solutions to develop new treatment facilities, to improve existing plants as well as to recycle valuable resources from wastewater and waste streams. The company’s customers within the food and drink industry range from large dairies to breweries, the flavour industry and juice makers, including Oerlemanns Foods, DMK Deutsches Milchkontor, Valensina, WILD and Oettinger Brauerei to name a few. REMONDIS Aqua provides tailor-made solutions for its customers

and takes over operational responsibility for their water management, leaving customers free to focus on their core business. International Operations REMONDIS Aqua is part of the international REMONDIS Group. With a turnover of over Eur 6.4 billion and employing more than 30,000 people, REMONDIS Group is one of the world’s largest privately run water and environmental services companies and pro- REMONDIS Aqua has installed its RE2ENERGY® system at vides services for about 30 million Oettinger Brauerei. people. With its subsidiaries and associated companies, REMONDIS oper- activities are currently focused on the marates in 34 countries on four continents. kets in Turkey, Benelux, India, Poland, REMONDIS Aqua’s international water Spain and other European countries. Panel One:

The REPHOS® Process Recovers Phosphorus From Industrial Wastewater One of REMONDIS Aqua’s customers operates the size of coarse sand. one of the most modern and highest performThis special structure is ideal for the use as ing cheese and whey factories in Germany. a fertilizer. Furthermore, the REPHOS® prodHowever, the production processes result in uct dissolves in water very slowly. The phosthe accumulation of wastewater containing phorus, therefore, is gradually released into organic matter and high concentrations of the soil and lasts for longer. phosphorus. Standard biological methods are REMONDIS integrated this process into an unable to recover the phosphorus from the overall multi-phase concept for its customer. water. In the factory, the organic matter is first Chemical precipitation with iron is not an removed from the wastewater – before the option here as this would result in large volwater undergoes the REPHOS® procedure – umes of sewage sludge, the need for huge The crystals have the best possible shape – tiny white grains and transformed into biogas. To make this amounts of chemicals and high operating about the size of coarse sand. possible, REMONDIS built a combined heat costs. Moreover, the metal binds the nutrient and power plant on the factory grounds and so tightly that, were it to be used in a fertilizer on fields, it would not be the electricity generated from this is fed into the grid. Once the wastewater released into the soil. Indeed, the iron compound would actually remove has undergone the REPHOS® procedure, it is treated again so that it can folmore phosphorus from the soil. low its natural course and join the river. The customer needed a novel solution and commissioned REMONDIS with REMONDIS has successfully applied for a patent for this process. It can the task of finding one now be used in all industrial areas which have a high concentration of phosBy carrying out intensive research work, REMONDIS developed a model phorus in their wastewater, for example in facilities producing starch or food that satisfied both ecological and economic aspects. At its core is REPHOS®, oil. a process that uses an optimized method of MAP precipitation (magnesium, The method is to be further developed so that it can also be used for ammonium, phosphate). By adding salts, a compound of magnesium with wastewater with small amounts of phosphorus. ammonium and phosphate is released from the sewage sludge in crystal form To further phosphorus recycling, REMONDIS Aqua has already taken the that contains high concentrations of phosphorus. Thanks to the special feanext step and introduced another innovation. Its TetraPhos® process is an tures of this process, the substance does not need to be dewatered. And, economical and highly innovative process for recovering phosphorus from above all, the crystals have the best possible shape – tiny white grains about sewage sludge ash and is now available for use.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

Providing a Competitive Edge REMONDIS Aqua offers many other “Our main objective as one of the leadbenefits and advantages to its cusing service providers in the business is tomers. to support our customers in their pro“When our customers hand over the duction process and growth strategy in operation and with it their complex order to help them achieve a competitasks to REMONDIS, they also autotive edge,” says Dennis Bernhardt, matically transfer all the planning, Head of Sales/Industrial Water operational and cost risks involved to Management at REMONDIS Aqua. our company. This is certainly one of “Whether planning, financing, building the main reasons why an ever growing or operating facilities - we can provide REMONDIS Aqua provides tailor-made solutions for its number of companies are opting to our customers with clean and efficient customers and takes over responsibility for their water work with REMONDIS Aqua,” water management systems and closed management. remarks Dennis Bernhardt. “Thanks material life cycles. The whole of their to our years of experience of operating water management system is in safe and industrial wastewater, has been developed facilities in a whole range of sectors, we professional hands when they work with us specifically for the food and drink indus- are able to offer our customers bespoke – from us drawing up initial process-inte- try. This technology has been successfully concepts to fulfil their needs, something grated concepts all the way through to the deployed at one of the most modern and we have demonstrated many times over in long-term management of facility opera- highest performing cheese and whey facto- the food and drinks industry.” tions. Moreover, we not only invest in ries in Germany – see Panel One. He elaborates: “We ensure that our cussuch projects, we also assure operational Another example of REMONDIS tomers' production activities are run as responsibility and guarantee costs.” Aqua’s innovation capability is the efficiently as possible every single day by REMONDIS offers its customers all the RE2ENERGY® system, which enables operating their water supply and wasteadvantages of a large international group customers to use the organic residue in water treatment facilities in the best and combined with the character and reliabili- their wastewater to produce energy on most reliable way. This is reflected by the ty of a family-run company. “We are pur- site. One of Germany’s leading suppliers fact that we guarantee treatment targets suing a long-term growth strategy and are of fruit juices and soft drinks is currently will be met throughout the whole of the not interested in projects that are aimed at benefiting from this system – see Panel contractual period.” short-term success. Thanks to the group's Two – as is Oettinger Brauerei, one of the A further benefit is the financial securinetwork of activities in 34 countries across largest privately owned and most modern ty that such an agreement provides to the four continents, REMONDIS Aqua is breweries in Germany. customer as costs can be planned able to provide all types of industrial busithroughout the whole of the contractual nesses with the innovative water supply Benefits For Customers period. Moreover, customers have greater and wastewater treatment services they In addition to its capacity for innovation planning flexibility thanks to need at short notice, no matter where in and its high level of expertise in designing REMONDIS' bespoke financing conthe world they may be based,” points out solutions to meet specific challenges, cepts. J Dennis Bernhardt. He adds: “As REMONDIS does not Panel Two: have its own plant construction company in the group, REMONDIS Aqua is free to choose whichever process it feels is best RE2ENERGY® System Uses Organic Residue in and select the best available technology Wastewater to Produce Energy on Site and so is always able to develop bespoke One of the leading suppliers of fruit juices and soft drinks in solutions for our customers.“ Innovative Processes In addition to ensuring the smooth running of its customers’ facilities, REMONDIS Aqua also manages to reduce costs by implementing its own special processes or through procedural optimization. REMONDIS Aqua’s business involves the continuous operation and management of water supply and wastewater treatment facilities with the REMONDIS’s own personnel on location. This means the facility should meet a certain minimum size so that both partners can benefit from reduced costs throughout the co-operation period. Over the years, REMONDIS Aqua has developed various innovative processes, many of which are now protected by patent. For example, the REPHOS® process, which recovers phosphorus from 56

Germany produces high quality chilled fruit juices and premium smoothies at its site. Rapid expansion has meant that the site’s production capacity has had to be extended and a new concept developed for the plant’s wastewater treatment system. Having searched for a suitable partner, the company opted to work together with REMONDIS Aqua and its anaerobic wastewater treatment concept run according to its RE2ENERGY® system. This process unites highly efficient levels of treatment with the best possible use of the energy found in the contents of the wastewater. This in turn guarantees top quality sustainable wastewater treatment. The biogas recovered from the treatment process is used in the fruit juice production process to generate steam. It substitutes, therefore, the natural gas that was previously used and, by being a renewable source of energy, helps to achieve significant CO2 savings and advance climate protection. REMONDIS Aqua was responsible for the construction of the facility and operates it since it was completed. A contracting business model has been used for both projects, with the framework conditions being perfectly adapted to fulfil the requirements of the client.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

I EFFLUENT TREATMENT

Biogas Generation From Industrial Effluents With Anaerobic Bioreactors – Part Three By WEHRLE Umwelt GmbH astewater treatment that actually earns money? This has come true, W for instance, for a meat & bone meal producer in Germany: the biogas generated from the plant’s effluent by the anaerobic bioreactor is being treated and runs a Combined Heat and Power (CHP) plant that produces more electricity than the factory needs and thus can be sold. Different types of anaerobic bioreactors are available for different types of effluents. Not only the possibility of energy production makes this technology quite attractive, also the reduction of surplus sludge (a disadvantage of aerated systems in comparison) saves a considerable amount of costs. But, of course, there are two sides of this coin: anaerobic bioreactors make only sense if the COD load is big enough. At the same time these bioreactors are not as efficient in eliminating COD as aerobic bioreactors are and often require a further treatment step to achieve discharge limits in many countries. Also, the operation of an anaerobic bioreactor is not as simple as the nearly single handed operation of a modern Membrane Bioreactor since the process requires a rather stable effluent quality and could be easily disturbed by an elaborate use of the wrong disinfectants in the factory’s production. Additional equipment is needed to handle the generated biogas. Even though the use of anaerobic

bioreactors is somewhat fashionable and the possibility to generate energy is attractive, the conditions and expectations for this technology should be clearly laid out before investing. If all conditions are right, anaerobic bioreactors can be an optimal technology to reduce the carbon foot-print with little to no excess sludge and to generate Anaerobic Bioreactor with biogas renewable energy. It is advisable, generation, Sonac Lingen / however, to choose a supplier Germany (animal food production). that can offer a range of different picture: WEHRLE Umwelt GmbH. anaerobic and aerobic processes. This way assures that you get the right process combinations and are not pushed into a costly compromise. Part IV: “Water & Material Re-use in the Food & Beverage Industry” in the next edition. J

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FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

WEHRLE Umwelt GmbH info@wehrle-umwelt.com www.wehrle-umwelt.com See our company video:

I ENERGY EFFICIENCY & SAFETY

Steam Traps – Assets or Liabilities? Paul Bough of Enersol Flomar, outlines the importance of steam traps within a steam system, something that is often overlooked. team trap performance within a steam S system is critical to safety and energy efficiency. In practice however, steam traps are often ignored. The fact is that the lack of understanding of their operation can – and does – result in greatly increased operational costs, which reduce the very productivity gains the traps were intended to deliver.

Paul Bough is the Managing Director of Enersol Flomar, who carry out Boiler House Risk Assessments alongside Steam and Hot Water Training Courses.

All steam traps must be able to perform the following three functions: • hold back steam • remove condensate • remove air and non-condensable gases. There are many types and manufacturers, and unless the site engineer has had sufficient training to understand how to size and select the correct steam trap for any given operation or application, the selection of the ideal trap becomes something of a lottery. Even when the ideal steam trap is specified, it should be borne in mind that the typical service life, will be in the region of four years. Even that average lifespan entails a 25% failure rate by trap population and if no regular maintenance or test-

ing procedure is in place, this failure rate can only increase year on year. Just as a tyre will eventually fail by the very nature of its function, so it is with steam traps. The main causes of failure are blockages due to contamination or traps leaking and blowing live steam, usually caused by erosion from wear and tear Blocked traps prevent drainage and can create a significant safety or operational issue. Whereas leaking or blowing traps, although they may not affect the efficiency on process equipment, will increase fuel costs significantly. They can also impart back pressure into the system which in turn reduces the efficiency of other traps. The Consequences of Failure Taking an example of a system with a trap population of only 100, the typical status of the traps would be six blowing, six leaking, six blocked and seven at low temperature. The average leak rate from a blowing trap is approximately 15kg/hr or around 130 tonnes of steam per year. Depending on whether or not the trap is returning condensate to the hot well or not, the loss in energy will be in the region of £10 to £25 (Eur11.6 to Eur29) per tonne of steam, which equates to £1,300 to £3,250 per year. Therefore, six blowing traps could be losing anything from £7,800 to £19,500 a year. We also have to consider the six leaking traps, which will add £3,900 to £8,750 to the bill. Traps that are blowing live steam into

the system can introduce water hammer, which is dangerous to both plant and personnel; something that must be avoided at all costs, in line with the pressure systems safety regulations. Blocked or dirty traps compromise and even prevent the drainage of condensate. If fitted on process equipment, a failure like this would probably be noticed and would be repaired or replaced. However, if it was fitted to an overhead steam main or line drain trap, it would result in wet steam being supplied and a reduction in plant efficiency. Unless there was a procedure in place, wet steam would go undetected. So What’s the Solution? The system should be surveyed, and the typical cost for the 100 trap system used as our example would be £2,000. The costeffectiveness of this is self-evident. Secondly, all engineering personnel who are responsible for the selection, installation, testing, maintenance and operation of steam systems should attend an independent training course. In summary, steam traps become a liability because of: • Insufficient training • Poor maintenance • Absence of test procedures. They are an asset when: • A testing regime is in place • A maintenance regime in place • Personnel are adequately trained. For more information, see inside front cover of this issue. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

I SUSTAINABILITY

Sustainable Growth For Sustainable Profits – The Sustainable Food & Beverage Manufacturing Conference – Motor Cycle Museum, Birmingham – 23rd October, 2014 ustainability is no longer an optional S add-on for food manufacturers and their suppliers. Climate change and shrinking resources mean a responsible approach is called for – and shareholders and customers want to know what is being done to safeguard food supplies and the interests of

future generations. The Sustainable Food & Beverage Manufacturing Conference will bring together key stakeholders from all sectors of the food and beverage manufacturing, retail, food service and supply chain. The event will be held at the Motor Cycle

Museum, Birmingham, on the 23rd of October. The challenge for the food and drink industry and others throughout the sector is to continue to achieve economic success whilst reducing carbon emissions, energy usage, water usage, environmentally

Conference Programme • 08.00: Registration and Welcome Coffee + Networking in Exhibition Area • 09.00: Opening Remarks by Chairman Martin Chilcott, CEO of 2degrees • 09.05: Headline Sponsor Presentation • 09.30: How Heineken are meeting their 2020 Global Sustainability Goals: Michael Dickstein, Global Manager Sustainable Development at Heineken International. • 09.50: Elevator Pitches: An important aspect of the conference is learning about new technologies that help create a more sustainable food and beverage business. Spread over the day each exhibitor will present a 1 minute elevator pitch to introduce themselves and their business. • 09.55: Building a Sustainable Dairy Supply Chain: Paul Flanagan, External Relations Director at First Milk • 10.15: Elevator Pitches • 10.20: Sustainability challenges facing the bakery sector: Gavin Milligan, Group Sustainability Director at William Jackson Food Group • 10.40: Elevator Pitches • 10.45: Q&A and panel sessions: Reducing the Carbon Footprint of the UK Food and Beverage Manufacturing Sector • 11.15: Coffee Break & Networking • 11.45: Aylesbury Case Study, Creating a Zero Carbon Dairy: Richard

Laxton, Global Sustainability Manager at Arla Foods • 12.05: Elevator Pitches • 12.10: Water Stewardship, Consumption and Reuse: John Durkin, Environmental and Sustainability Manager at ABP Food • 12.30: Elevator Pitches • 12.35: Reducing Food Waste: Mark Little, Head of Food Waste Reduction at Tesco • 12.55: Elevator Pitches • 13.00: Lunch & Networking • 14.00: Roundtable Discussions and Worktables. • 14.30: Life Cycle of Bread Case Study- SKF • 14.55 Elevator Pitches • 15.00: Dairy Crest Sustainability Case Study: John O’ Maoileoin, Head of Corporate Responsibility at Dairy Crest • 15.20 Coffee Break and Networking • 15.50 Nestle Sustainability Case Study: Inder Poonaji, Head of Sustainability at Nestlé UK • 16.20: Greening the Scottish Whiskey Industry: Speaker to be confirmed, Diageo • 16.40: Q&A and panel sessions: Reducing Water Consumption of the UK Food and Beverage Industry • 17.10: Closing Remarks from Chairman. • 17.15 Close of Conference and Farewell Coffee and Networking

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

unfriendly packaging, water and wastewater treatment etc. The UK food and beverage manufacturing sector has committed to a number of targets in areas such as carbon emissions, food waste, water conservation, packaging reduction, supply chain optimization and energy reduction. The speaker line up is drawn from senior management throughout the food and bev-

erage industry who have delivered quantifiable eco results and can also offer interested parties a clear pathway to developing a sustainable manufacturing facility. Delegates will attend who have direct and indirect responsibility for sustainable manufacturing facilities. Sustainability makes good business sense. Food and drink companies can play a major role in ensuring the sustainability of

the food supply chain. Hence the food and drink industry is committed to supporting sustainable practices to protect and promote natural resources. It is also committed to working in partnership with key suppliers to develop uniform, science based methodologies to assess a food or drink product’s environmental impact, asking how this can be best communicated to the consumer. J

I CONFERENCE PREVIEWS

Continuous Retorts & SegraPak Join Forces in Major Chilled Food Sector Sustainability Project The inability of some chilled prepared meal manufacturers to switch from short shelf life to extended shelf life, via mild ‘in pack’ pasteurisation, can result in in store wastage of up to 20%, with further waste incurred in the home as their short shelf life meals run out of life. Reduction to around 2% wastage is possible with a relatively small increase in shelf life; and it is with this aim in mind that two Northern companies have decided to work together. Continuous Retorts Ltd offer chilled meal pasteurisation lines with steam energy savings of 60% and water savings of nearly 100% (compared to current batch retort technologies) as well as offering real

Existing retail short shelf life pouched meal on left with extended life twin SegraPak pouch on right.

improvements in quality and nutritional values Segrapak Ltd has a patented twin pouch specifically designed to keep the sauce away from the carbohydrate during pasteurisation and storage, which only mixes in the microwave minutes before the meal is served to guarantee superb quality. For further information contact david.lambert@ continuousretorts.com. J

42 Technology Offers Innovative, Sustainable Process Development International food and beverage manufacturers looking for help developing innovative processes to deliver game-changing products, new levels of efficiency and sustainability are increasingly calling on Cambridgeshire-based 42 Technology. The consultancy has a long track record of success, as well as established relationships with some of the world’s top brands and helping to drive innovation in categories such as beer and cider, soft drinks, confectionery, chocolate, cheese and dairy, along with new packaging formats. The company’s dedicated manufacturing practice – led by Frank Tully (pictured) has a powerful blend of pragmatic engineering, rigorous problem analysis and broad technology understanding. Clients benefit from blue-sky thinking to radically reduce

costs, wastage, energy, water use, and labour intensity but always delivered in a risk-managed way. Recent cases include: developing a unique range of chocolate products; reducing energy and water use in manufacturing new coffee products; cutting material wastage on packaging lines; and transforming high-cost, inefficient batch-processes into a continuous, lean system. For further information see www.42technology.com. J

E-CO2 – Delivering Sustainability Programmes For Processors and Retailers E-CO2 are an agri-environmental software and consultancy company specialising in producer level environmental assessments and industry reporting across multiple species. To date E-CO2 have carried out more than 4,500 producer consultancy visits throughout Europe. E-CO2 was the first company globally to receive PAS 2050 accreditation from the Carbon Trust for their agricultural software and assessments. E-CO2 deliver sustainability programmes for processors and retailers that are practical, straight forward and most of all, effective. Through innovative software and mobile ‘apps’ E-CO2 can drive sustainability and provide detailed reporting and benchmarking data for the food industry. E-CO2 offer clear, concise consultancy advice to producers that can demonstrate the financial benefit of improvements in efficiency and environmental performance, to help develop and maintain sustainable supply chains. For further information contact E-CO2 at Email enquiries@eco2global.com, Tel +44 (0) 1270 522 645 or visit eco2-global.com. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

I SUSTAINABLE LUBRICATION

Sustain Your Business ustainability within any industry has the S potential to deliver significant operational expenses if implemented and managed correctly. By taking a sustainable approach to asset management you can extend equipment life, improve efficiency, reduce carbon emissions and ensure legislative compliance. With a 50 year heritage, WP Group’s Industrial Solutions division is an industry leader in lubrication management. Working in partnership with the ExxonMobil and alongside industry leading companies, WP can deliver bespoke service offerings to: 1. Extend asset life and reduce operational expenses 2. Increase energy efficiency and reducing carbon emissions 3. Reduce inventory complexities and max-

imise efficiencies 4. Ensure legislative compliance. WP uses the highest quality Mobil lubricants proven to extend drain and service

intervals, improve efficiency and decrease operational expense. Mobil SHC™ Series have preferential endorsements from more than 2,500 Original Equipment Manufacturers. In a recent performance study, Smurfit Kappa saved over £2500 on a single application when the switch was made from mineral oil to fully synthetic Mobil SHC 600. By lowering traction and improving the viscometrics of the fluid, an average of 6.5% less energy was required to power the gearbox. This modification improved energy efficiency, reduced carbon emissions by 17.6 tonnes, decreased operating temperature and prolonged lubricant and equipment life. With stringent legislation surrounding lubrication usage and handling, it is vital that companies are aware of their legal

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

obligations. Mobil SHC lubricants are produced in facilities that have earned an ISO 22000 certification. These lubricants are also H1 registered and comply with Halal and Kosher dietary law allowing for complete traceability. This year, ExxonMobil’s Equipment Builder Group, is celebrating its 100th anniversary. The Group specialises in working alongside leading Original Equipment Manufacturers in more than 150 countries around the world to develop high-performance lubricants to improve the safety, environmental awareness and productivity of operations. By implementing a managed lubrication programme, companies have the potential to extend asset life, improve efficiency, enhance performance and cut operational expenses. From comprehensive site surveys, to advanced Mobil technology and engineering expertise, the benefits speak for themselves. For further information visit www.wp-industrial.co.uk. J I SUSTAINABILITY

Projective Delivers Substantial Energy and Water Savings rojective is an indepenP dent engineering company specialising in energy and water reduction in the food and beverage industry. Utilising its own inhouse Process Energy and Process Water toolset, Projective’s engineers and consultants can analyse your energy and water use from the process requirements up back through the utilities plant and to your import meters. This holistic process driven approach is unique to Projective and has proven to deliver substantial energy and water savings of over 25%. Being independent means Projective has no interest in selling you equipment you don’t need. Many food and beverage facilities have grown organically as product lines change with little consideration of the impact the change has on the site services. Often a review of the processes and services highlight simple optimisation projects to recommission the facility back to its most economical operating point with no or little new asset investment. Projective services do not stop at identifying savings, the company’s teams of design engineers and project managers are able to fully design your solutions and manage the construction to CDM standards throughout the globe. Visit www.projectiveltd.co.uk or call 01252 360400 to find out more. J FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

I ENERGY MANAGEMENT

Rotork Electric Valve Control Reduces Energy Costs in the Food and Beverage Industry rior to the introduction of the Rotork P CVA valve actuator, the modulating performance of electric equipment could

and configuration is performed using a Bluetooth® enabled PDA or PC running Rotork Enlight software which is freely downloadable from the Rotork website. Every CVA incorporates an onboard data logger, enabling operational data such as valve torque profiles, dwell times, actuator events and statistics to be downloaded for detailed investigation and diagnosis. After analysis, any required configuration changes can be uploaded into to the actuator. Digital control bus connectivity options include Hart and Foundation Fieldbus protocols, facilitating enhanced installed economy as well as giving the CVA the increased ability to dovetail into existing asset management systems. The all-electric design, which can be specified for singlephase AC or DC supplies, also simplifies the process of retrofitting actuators onto existing valves.

not match the performance of pneumatic control valves. CVA actuators have introduced continuous, repeatable modulating electrical control with a programmable fail to position option. Operating on an industry standard 4-20mA control signal or digital bus, the resolution, repeatability and hysteresis performance is quoted at <0.1% of full scale, offering suitability for the most demanding applications. Mechanical features include Rotork’s well-proven ‘double-sealed’ enclosure, whereby internal electrical components are permanently protected from the effects of the operating atmosphere. The IP68 dust tight, watertight and temporarily submersible enclosure is universal to all models in the CVA range, including those with hazardous area approvals. On loss of mains power, built-in super-capacitors allow the actuator to move the valve to a desired position, programmable as open, close, any intermediate position or stay-put.

A typical Rotork CVA electric control valve actuator installation in a boiler plant room.

‘Non-intrusive’ Communication Technology CVA actuators utilise Rotork’s innovative and well established ‘non-intrusive’ communication technology for actuator programming and adjustment. Actuator set-up 66

Increasing Efficiency and Reducing Energy Costs Today, innovative Rotork CVA electric control valve actuation technology is assisting household names in the food and beverage industry to increase efficiency and reduce energy costs. A project at an international manufacturer of foods, home and personal care products aims to double production in ten years without increasing its carbon footprint. The plan to increase efficiency and reduce energy costs includes the upgrading of boiler plant and the introduction of CHP (Combined Heat and Power) technology. Where this has been implemented it has already achieved significant results. Part of the plan involves saving the on-going cost of providing and maintaining an instrument air supply by replacing traditional pneumatic control valve actuation with electric actuators to perform modulating and failsafe valve duties. The adoption of Rotork CVA technology has not only reduced the cost of energy consumption but also improved the performance of the temperature control system. The switch to electricity has led to a decrease of at least 50% in energy costs, which has been achieved with no loss of

A Rotork engineer confirms the accurate performance of a control valve using data stored in the Rotork CVA actuator’s data logger.

performance or reliability. Further reductions will accrue due to reduced maintenance and improved process performance. Overall, the well designed CHP system is having a significant impact on the plant’s carbon footprint. CVA technology is also improving the performance of production processes. Since installing and acting on the information produced by an Energy Monitoring system, Coca-Cola Enterprises (CCE) has so-far reduced electricity consumption at its Wakefield site, the largest soft drinks production plant in Europe, by 13% since 2009. An important part of the plan involves saving the on-going cost of providing and maintaining an instrument air supply for traditional pneumatic control valve actuation. At Wakefield the introduction of the CVA on the bottle filling plant has demonstrated significant savings in energy costs without any deterioration in performance during production and improved performance during the CIP (Clean in Place) mode. For more information, please visit www.rotork.com/en/product/index/process controlactuators. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

DAIRY

Groupe Lactalis Continues International Expansion With a presence in almost 510 countries, privately-owned French dairy giant Groupe Lactalis is continuing to expand its global reach and recently entered the massive Indian market. ounded in France in 1933 by cheesemaker Andre Besnier, Lactalis has developed into one of the world’s largest dairy groups with annual sales of Eur16 billion. The business is still family-run. In addition to cheese, the product range now encompasses milk, cream, butter, chilled dairy products, dairy ingredients and powders, and the business owns some of the best know French and international brands such as President, Galbani and Parmalat. Accounting for a third of group sales, cheese – including Camembert, mozzarella, Swiss cheese and an extensive range of regional specialities - remains the company’s core business. President is sold in more than 145 countries and contributes more than Eur1.6 billion of turnover and Galbani is sold in more than 100 countries and generates about Eur1.4 billion of group sales.

External Growth Lactalis has based its external growth on developing its brands, particularly President, and on a strategy of acquisitions both in France and abroad. Growth has been achieved through a policy of creating value added through the development of strong brands based on high quality massmarket consumer goods. The group’s family structure has favoured a policy of selffinancing that has preserved its independence. Lactalis currently employs more than 61,000 people and operates 200 factories across the globe. It is the world’s third largest dairy group measured by dairy turnover behind Nestlé and Danone, according to Rabobank.

The Besnier-owned family business has expanded rapidly, both organically and through a series of key acquisitions. The first major stage of its international development started in 1990, when Lactalis linked up with Belgian dairy co-operative Walhorn Molkereï and purchased the British company D BroughGourmet Foods, a small importer and packer of speciality cheeses. This heralded the start of the group’s expansion in the UK where its business now incorporates Nestle Chilled Dairy, Rachel's Dairy, and the Lactalis McLelland Group of companies. In 1998 the purchase of Nestle's Italian subsidiary, Locatelli, provided Lactalis with a foothold in the Italian mozzarella market. In France, the acquisition of Ladhuie added milk-based desserts to the range of chilled products. Name Change Since adopting the Lactalis name in 1999, the group has continued to strengthen its domestic and international presence. The group's position in the French soft cheese market was strengthened by the takeover of the Bel Group's activities in the sector in 2002. The following year, the purchase of the Kraft Group's Italian cheese-making subsidiary gave Lactalis the number two position in the Italian market, while in France Lactalis diversified its portfolio with the purchase of Cema, a specialist in butter and spreads. In 2006, Lactalis became the world’s second largest cheese company following the acquisition of Galbani, the leader of the cheese market in Italy and number one for Italian-style cheeses in Europe. The same year, Lactalis and Nestlé decided to create a common fresh dairy product subsidiary in Europe, called Lactalis Nestlé Produits Frais (LNPF), covering nine European countries - France, Belgium, Luxembourg, the UK, Ireland, Spain, Italy, Portugal and Switzerland – with rev-

enues of approximately Eur1.5 billion. A watershed was reached in 2011 when Lactalis became the world’s largest dairy company after the Eur3.4 billion acquisition of 83.3% of Parmalat, the leading Italian dairy group. Based in countries where Lactalis had little activity, Parmalat provided unprecedented opportunities for further international development.

Move into India In recent times, Lactalis has increased its focus on emerging markets. Earlier this year, Lactalis entered the dairy market in India following the acquisition of Tirumala Milk Products, the second largest private dairy company in South India. India is the world’s largest producer of milk and milk products. Although financial details of the transaction were not disclosed, the deal is believed to be worth between $250 million and $300 million. The deal is the largest dairy transaction in India. Founded in 1996, Tirumala has a processing capacity of 1.66 million litres per day across seven plants. It has expanded rapidly since raising capital by selling a 20% stake to private equity firm Carlyle Group in 2010. During Carlyle’s involvement, Tirumala has grown revenues by two and a half times and more than quadrupled profits. Indeed, Tirumala provides a strong platform for Lactalis to develop as a market leading national brand. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

I BREWING

Cost Management Programme Helping to Drive Profitable Growth at Heineken Heineken expects to achieve the targeted Eur625 million in savings from its current TCM2 cost management programme this year. he savings will be re-invested in supporting the brewing group’s brands and innovation activities to enable it to further develop markets and segments. Operating 165 breweries in over 70 countries and employing about 85,000 people, Heineken is Europe’s leading brewer and the second largest globally by revenue. The brewer produced 195.2 million hl of beer in 2013 (consolidated beer volume plus attributable share of beer volume from joint ventures and associates).

Rene Hooft Graafland, chief financial officer of Heineken.

In addition to its flagship Heineken brand, which is the world’s leading international premium beer, the group’s global brand portfolio includes Desperados, Sol, Affligem and Strongbow apple cider. Indeed, Heineken has over 250 international premium, regional, local and specialty beers and ciders in its portfolio Cost Management TCM2 is a three year time cost management programme running from 2012 to 2014 which had already saved close to Eur500 million by the end of last year and should easily attain the Eur625 million target during the current financial year. However, cost will continue to be a focus area for the company.

“Cost cutting never stops,” points out Rene Hooft Graafland, chief financial officer of Heineken. “Yes you can say the low hanging fruits are done, but there are always opportunities to increase your productivity and to become more efficient.” Footprint Rationalisation Heineken has largely completed its footprint rationalisation, having closed 46 breweries in the last ten or 12 years in Europe. “That footprint is pretty much where it is - within the breweries we can still further optimise and work on productivity improvements,” he says. “But we are now addressing also in a very big way things outside the supply chain, procurement is a big area.” The Netherlands-based brewing giant has created the Heineken Global Procurement Company, which has brought about 70% of the group’s spend under central management. “Another area where we can make strong progress is in financial shared services, we have put our transactional shared services of Europe into a centre in Krakow. We have now 18 countries migrated into it, the last six will be done this year,” says Rene Hooft Graafland. Indeed, an intensified focus on driving cost efficiencies is expected to result in new restructuring opportunities across the Heineken group. However, as a result of ongoing productivity initiatives, Heineken expects an organic decline in its total number of employees in 2014. Margin Improvment Heineken has also been concentrating on improving the performances of its recent acquisitions. It has completed three major acquisitions – Scottish & Newcastle, FEMSA and Asia Pacific – in the last five years. “If you look at brands, marketing, footprint and cost, these things help us to run businesses which we acquire in a better way,” he explains. “We always say in the company the most important thing you have to do is to grow your businesses organically. Only if you can grow your businesses organically do you have a good reason to

expand your footprint. But if you are not able to add value to the business which you buy, you have no reason at all to further enlarge your footprint.” For example, margins at UK-based Scottish & Newcastle have been improved by over 700 basis points since the acquisition. “We see now that our UK operation is above the European average and is still not at the end,” he says. Heineken has also substantially increased profitability at FEMSA and Asia Pacific. Top Line Growth Heineken’s sales growth has been disappointing over the past two years but with the economic environment improving and input costs stabilising, this is likely to change.

“I think as a company with the things we’re doing, we need to be able to future grow the top line and that with the gradual margin improvement this should lead to further profitability.” Rene Hooft Graafland adds: “We have a strong footprint, a footprint geared towards emerging markets, two thirds of our volumes coming out of high growth markets and that is promising for the future. And we combine that with a very strong focus on cost. That should lead to a better top line performance and as I said with a gradual improvement on margins over time.” J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

MATERIALS HANDLING

Dry Running System Plast™ Conveyor Components Help HEINEKEN Brew a Better Future With Waterless Bottling Conveyors in Zoeterwoude Plant eineken N.V.’s global sustainability H strategy, known as “Brewing a Better Future,” produced a company-wide reduction of 20 percent in water use between 2008 and 2013. Playing a role in that improvement are System Plast™ NG™ conveyor chain/belts and Nolu®-S wear track from Emerson Power Transmission Solutions. The ultra-low-friction components, which are being deployed in phases at Heineken’s Zoeterwoude brewery, eliminate the need for water and chemical-based lubrication on the filling lines – including those where abrasive particles from aluminum cans, party kegs and returnable glass bottles have been a problem in the past. According to managers at the brewery, the dry running conveyor is producing a cascade of sustainability improvements with a cleaner, quieter, more energy-efficient and reliable plant. “We have experienced a wide variety of gains from the System Plast dry running conveyor,” says Cok Duivenvoorden, Technical Line Manager at Zoeterwoude. “Specifically, we have improved plant safety and hygiene with dry equipment and floors. Maintenance is easier because of the cleanliness and better access where drip trays have been removed. We have reduced costs for water, lubricating chemicals and wastewater discharge. Dry

operation is easier on conveyor bearings and frames, yet still reduces energy consumption because of the low-friction components. System Plast NG chain lasts up to five times longer than low-friction acetal in some of our applications. And when installed to replace worn-out conveyor, the new chain pays for itself in as little as a year.” A Joint Goal to Reduce Water Use in Beverage Processing One goal of Heineken’s “Brewing a Better Future” sustainability program is to reduce water consumption by at least 25% by 2020, and both Heineken and Emerson are pursuing dry conveying solutions as members of the Water Footprint Network. The

network is a global organization of businesses, governmental agencies and environmental groups that promotes the transition to sustainable use of fresh water resources through increased awareness of how production and consumption of goods affect fresh water systems. While reductions in energy use are a large part of sustainable operations, reductions in water use may be even more critical to corporate sustainability in many countries. The impact in emerging nations is greatest, and some may need to import water in the next five years. According to Dick Overtoom, Emerson Vice President of Sales & Marketing for System Plast in Holland, traditional soapand-water operations can use two to three times more water in processing than goes into the finished product. “By changing to dry running operations, these plants can save money in water, water reclamation, and soap, while improving worker safety,” says Overtoom. “System Plast chain and wear strips are a proven solution for water reduction being used globally by an increasing number of food and beverage processing plants. System Plast has a strong history of industry collaboration and deep knowledge of customer pain points, priorities and cultures, enabling us to be a val-

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

MATERIALS HANDLING

ued member of the team.” First System Plast Application at Heineken Proves Abrasion Resistance The Zoeterwoude operation is just one of Heineken’s 165 breweries that are spread over 70 different countries. This state-of-the-art plant in the company’s home country is one of the top ten in the world for output, producing approximately 11.5 million hectoliters (303.6 million gallons) per year. The plant brews Heineken and Amstel beers for the domestic market and export. Its eight lines process returnable and new glass bottles from 0.2 to 0.7l (7 to 24 ounces), party kegs of 5l (1.3 gallons), and aluminum cans from 0.3 to 0.7l (10 to 24 ounces) volume. The lines run 24 hours per day, six days a week, at speeds of 20 to 100 m/min (66 to 328 fpm), in a room at ambient temperature. Zoeterwoude was an early adopter of Total Productive Maintenance, which complements the corporate sustainability policy, according to Plant Manager Martin Pozsgay. “Sustainability goes hand-in-hand with TPM,” he says. “The most efficient, lowest cost plant is often the one that is safest and cleanest, because operations, inspection and maintenance have all been made easier. Dry floors and equipment, and conveyors without drip trays, all contribute to this, helping to control our Total Cost of Ownership. Zoeterwoude’s bottling lines were originally equipped with stainless steel chain or various types of plastic chain and belt requiring soap-and-water lubrication, but the plant began testing dry conveying with System Plast NG chain and Nolu-S guides in 2004. Initially, NG chain replaced acetal on a combiner/inliner, where it demonstrated superior resistance to wear from aluminum oxide particles by lasting five times longer. Dry Running Conveyor Reduces Energy Requirement 11% in Heineken Test Zoeterwoude’s first significant conversion to NG in 2007 was on stainless steel mass bottle conveyors between a pasteurizer and labeler on line 3. This line runs at 80,000 bottles per hour with five types of new glass bottles between 30 and 35 cl (10 to 12 oz). Amperage measurements showed no increase in power to run dry with NG chain. When Nolu-S wear strips were added, the power requirement actually

dropped 11%. The NG chain also reduced noise from over 90 dBa to less than 80 dBa in specific areas. After proving its wear resistance and dry-running energy efficiency, NG chain became the first choice for plant-wide upgrades. System Plast NG chain is a high-performance engineered thermoplastic with a low coefficient of friction, providing optimum wear resistance, reduced plate wear and reduced pitch elongation. NG material is suitable for high-speed and dry running conveyor applications, where it lowers power consumption and noise. Nolu-S wear strips and guides enable reduced-lubrication or lubrication-free, high-speed conveyor operation. They are made of a unique compound of UHMWPE with a solid lubricant that dramatically reduces the coefficient of friction, maintains UHMW characteristics, and has higher thermal conductivity. Nolu-S helps reduce noise, energy consumption, squeaking, and chain pull/belt fatigue. The combination of NG chain and Nolu-S wear strips has proven to deliver significantly longer service life than the usual LF acetal/UHMWPE combination, sometimes as much as five times. Partial Installation Already Saving Approximately 200 cu m of Water Per Week The upgrade to NG belt/chain and NoluS wear strips is being implemented throughout Zoeterwoude on new projects and existing conveyor sections during line overhauls or when problems arise with acetal LF chain. In early 2013 the Zoeterwoude plant started up a return glass bottle line running dry after the bottle washer. System Plast, Heineken and the OEM cooperated closely on solutions because this was a new technology for return glass bottles. The line was built with NG modular belts and Nolu-S wear strips, along with several design improvements for this application. Throughout installation, start up and

operation, System Plast has been making life cycle visits to measure the performance of the products installed. All parties are satisfied with the result and would build like this again, with the addition of dry running conveyor before the bottle washer as well. Well over 250 meters of conveyor have been upgraded so far, with the widest sections 10 lanes across (850 mm/32.5 in) and the narrowest sections one lane (85 mm/3.125 in). More significantly, dry running NG chain and belt have demonstrated excellent resistance to abrasion from aluminum oxide and glass particles, miscellaneous debris, and chemicals in some of the plant’s most demanding applications. These include a line handling return 0.33l glass bottles – which often carry abrasive debris – and another line handling 5l party kegs, where low friction and chemical resistance are critical. The switch to dry operation is already saving energy on the conveyor drives and approximately 200 cu m (7,000 cu. ft) of water per week. The weekly savings of approximately Eur1,000 for the water and treatment is one tangible part of a larger series of advantages that comes from having cleaner, quieter, dryer equipment and facilities. TPM inspections are easier without drip trays. Safety, hygiene, and plant noise levels are improved, too.

Emerson produces System Plast conveying chain and a variety of other drive components that aid in water reduction in the food and beverage industry. These include products from SealMaster, Browning, Morse and McGill. To learn more about how System Plast conveyor solutions can help you achieve your plant goals, visit www.emerson-ept.com/ Beverage or contact one of the company’s global application engineers. An interactive page-flip version of the System Plast catalog is also online at www.emersononlinecatalog.com. Printed copies can be ordered at http://www.emerson-ept.com. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014

New Products With Almonds Grow 35% Across Multiple Categories in 2013 ccording to the latest Innova Market A Insights Global New Products Report, almonds outpaced overall food and nut introductions around the world in 2013, climbing 35 percent, compared to a 10 percent increase in 2012. As the number one ingredient nut for eight years running, almonds continue to lead new product

introductions around the world and over multiple categories, widening the gap between other nuts. Almonds have maintained their position as the leading nut type in global new products since 2006, and with 7,893 product introductions in 2013, almonds also maintain the largest share (35 percent) of total nut products introduced last year. In 2013, Europe led all other regions in 2013 almond introductions with 3,922 new products in market. Around the globe, almonds are the top nut introduced in bakery, cereal, dessert and ice cream products and are the second

most popular nut in snacking. The snacking category, however, has experienced a record 52 percent increase in global almond introductions, making snacks the category with the highest worldwide growth in 2013 (followed by the bakery and cereal sectors with 39 percent and 37 percent growth, respectively). Confectionery remains the leading sector for new almond introductions, with 30 percent global share in 2013. Europe leads as the region that introduces more almond products than any other, with a 45 percent share of new product introductions globally. In 2013, 3,425 new products with almonds were launched in Europe, a 31 percent increase from 2012, and almonds are now growing at a faster rate than hazelnuts in this region. Indeed, the European region accounts for more than half of global almond confectionery introductions, and also leads in private label introductions with a 25 percent share globally. “Almonds continue to grow in popularity every year and really stand out in nutritious snacking,” says Lu Ann Williams, Director of Innovation at Innova Market Insights. “A fit into so many of the top trends such as natural, simple, better-foryou and clean label, it’s no surprise that almonds are a go-to ingredient for top manufacturers today.”

The California almond community is committed to sustainable almond farming using economically viable and researchbased production practices to ensure a nutritious, safe and stable food product. More than 6,000 growers in California farm 940,000 acres (840,000 crop bearing) to provide more than 2 billion pounds of almonds – virtually 100 percent of the US supply, and about 80 percent of the world’s almonds. For more information on formulating with almonds, visit www. almonds.co.uk/food-professionals. J

Cargill Appoints New Managing Director, Chocolate EMEA & Asia argill’s Europe, Middle East and Africa C (EMEA) and Asia cocoa & chocolate business has appointed Inge Demeyere as

Inge Demeyere is Cargill’s new Managing Director, Chocolate EMEA & Asia.

its new Managing Director, Chocolate. Inge Demeyere began her career working in the vegetable oils sector and joined Cargill from Vandemoortele in 1998 as a purchasing manager. Following a range of roles in Cargill’s European refined oils business, Inge Demeyere started in the company’s cocoa & chocolate business in 2009 as Risk Manager, later moving into the role of Commercial Director Chocolate. Inge Demeyere comments: “This is an exciting time to become the new Managing Director, Chocolate because not only are we experiencing strong cocoa, sugar and dairy market volatility but at the same time

we are also growing the business, by expanding our facilities in Rouen, Berlin and Mouscron. I look forward to taking on this role, to working to develop an even deeper knowledge of our customers’ needs so we can add even more value and innovation.” Inge Demeyere reports directly to Jos de Loor, President of Cargill Cocoa & Chocolate. Jos de Loor says: “Inge brings to her new role a broad knowledge of the cocoa and chocolate business, with her experience in supply chain, pricing and risk management. This knowledge, allied to our R&D expertise, will meet our customers’ need to differentiate their products and make them stand out from the crowd.” J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2014