August/September 2013
Danone to restore competitive edge in Europe
Food & Drink Business Website:
www.fdbusiness.com
C o n t e n t s
- 38 B REAKFAST C EREALS
- 2 M ERGERS & A CQUISITIONS
Bright international outlook for Weetabix.
Coverage of British and international deals.
- 5 C OVER S TORY Danone to restore competitive edge in Europe.
- 45 D AIRY PAGE 5
Emmanuel Faber, COO, Danone.
- 10-17 S USTAINABILITY
Greek phenomenon stirs up the yoghurt market.
P AGE 25
Barry Henry, Rabobank Ireland.
R EGULARS
Scotch whisky industry goes green.
Bottling & Packaging. . . . . . . . . . . . 8, 46-48
North British Distillery wins national recognition for AD.
Aseptic Packaging – Steaming up the germs . . . . . . . . . . . . . . . . . . . . . . . . 46
Diageo sets new benchmark for environmental sustainability.
Environment & Energy. . . . . . . . . . . . . 14-17 Successful start of new biomass fired co-generation plant . . . . . . . . . . . . . . . 14 ENER-G offers custom designed AD and CHP solutions with no capital outlay. . 15
PAGE 31
Denise Morrison, CEO, Campbell Soup Company.
PAGE 5
- 18 I NGREDIENTS & C ONSUMER F OODS
Franck Riboud, CEO, Danone.
Processing & Manufacturing . . . . . . . . 29-35 Dramatically reduce processing times with PDXTM Reactor. . . . . . . . . . . . 33
Solid performance by Kerry Group. Quality & Safety. . . . . . . . . . . . . . . . . . . . 36 Is stainless steel the answer to improving public attitudes towards food hygiene? . . 36
PAGE 38
- 20-23 P ROJECT M ANAGEMENT
Logistics & Distribution . . . . . . . . . . . . . . 39
Giles Turrell, CEO, Weetabix.
Capital investments always need to deliver value for money. Managing Director: Colin Murphy Editor: Mike Rohan Advertising: Sylvia McCarthy
- 25 F INANCE Financing the Irish food and agri sector.
. Senior Sales Executive: Paul Lees
PAGE 13
Production Manager: Sylvia McCarthy
David Gosnell, President of Global Supply, Diageo.
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- 28 P IZZA
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- 31 S OUPS , S AUCES & R EADY M EALS Campbell Soup Company to sell European business. PAGE 18
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M E E R R G G E E R R S S M Morrisons Expands Food Production Business UK supermarket group Morrisons is to acquire its first banana ripening site in Boston, Lincolnshire so it can control better the quality of Britain's most popular fruit. The acquisition will allow Morrisons to offer improved quality and consistency, as well as taking greater control over the bananas' maturity. Customers tastes vary considerably with some preferring to buy their bananas with a tinge of green in order to ripen them at home, while others want more yellow, mature bananas that are sweeter and can be eaten straight away. Controlling the process will allow Morrisons to ripen the fruit slower, meaning it is sweeter and lasts longer in the home. Morrisons will continue its tradition of working closely with growers by sourcing a larger number of its bananas directly from dedicated growers. These green, or unripened, bananas will now be ripened at the in house facility rather than via a third party. Bananas are one of the topselling items at supermarkets in the UK and the move to acquire the facility from Del Monte will give Morrisons a direct, secure supply, achieve a cost saving and the ability to improve the consistency of the quality of its bananas in store. The acquisition is a joint venture with Global Pacific, a well established trading partner of Morrisons, whose expertise in exotic fruits will ensure the operation is a success. The 58,000 sq ft factory is nine years old and was operated by Del Monte until November 2011, when it ceased operation. The opening of the former Del Monte site in Boston will create up to 80 new jobs in the area, when the site becomes operational in the autumn.
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Global Pacific will run the site on behalf of Morrisons. Morrisons is the only UK supermarket to own manufacturing sites including abattoirs, bakeries, produce packing, a fish factory and a flower factory where almost a quarter of the food it sells is produced. The acquisition of this banana facility is the sixth addition to Morrisons' manufacturing business since 2010, following on from meat factories in Deeside and Winsford, a produce site in Worsley, FlowerWorld in Derby and the Grimsby fish factory.
Morrisons is the only UK supermarket to own manufacturing sites including abattoirs, bakeries, produce packing, a fish factory and a flower factory - where almost a quarter of the food it sells is produced.
Investcorp Acquires Tyrrells Potato Crisps For £100 Million Investment group Investcorp has agreed to acquire Tyrrells Potato Crisps, the manufacturer of premium crisps and snacks, from private equity firm Langholm Capital for £100 million. Founded at Tyrrells Court Farm, Herefordshire, in 2002, Tyrrells is recognised for its tasty hand cooked potato and vegetable crisps as well as exciting range of premium snacks, including popcorn and savoury nibbles. Available across an array of UK distribution channels, Tyrrells has also expanded internationally, with markets such as Germany, France, the Netherlands and North America today accounting for approximately 20% of group turnover. The company employs 270 people and generates in excess of £100 million in retail sales value Carsten Hagenbucher, principal in Investcorp’s European corporate investments team, comments: “The premium
snacks market is very dynamic and attractive. Tyrrells' offering is unique and the business has an excellent position in the UK and a rapidly growing international footprint. We are excited about partnering with Tyrrells' entrepreneurial management team to accelerate the international expansion and to build a world-class business.” David Milner, chief executive of Tyrrells, says: “Investcorp's wealth of experience in supporting premium businesses executing their ambitious growth strategies will be invaluable. At Tyrrells, we have exciting plans to leverage our differentiated, high quality brand both at home as well as abroad. Investcorp is the ideal partner to help us all at Tyrrells Court Farm accelerate our growth momentum. This transaction marks the busiest period in Investcorp's 30 year history for its European Corporate Investment team. Over the last 18 months, the team has invested in six portfolio companies, including the Scandinavian luxury brand, Georg Jensen, and leading oil services provider, Hydrasun.
Danone Supports Continued Yogurt Growth in the US Danone has acquired YoCrunch in the United States for an undisclosed sum, Founded in 1985, YoCrunch makes yogurt with crunchy toppings packaged separately, in part through licensing agreements with wellknown national brands such as M&Ms and Oreo. With net sales of $110 million and sustained double-digit growth in recent years, the company is now the market leader of the yogurt with toppers segment. The acquisition will advance Danone’s ambition to further develop yogurt consumption by
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
notably expanding the various ways in which Americans can enjoy yogurt. It will strengthen its offer in the US by widening its range of products. The move will also enable Danone to benefit from YoCrunch’s unique expertise in compartmentalized packaging, developed in the company’s plant in Naugatuck, Connecticut.
Campbell Completes Danish Acquisition US-based food group Campbell Soup Company has completed the acquisition of Kelsen Group for an undisclosed sum. Kelsen is a producer of quality baked snacks, including the Kjeldsens and Royal Dansk brands, sold in 85 countries around the world. Based in Norre Snede, Denmark, Kelsen is a market leader in the assortment segment of the sweet biscuits category in China and Hong Kong, where growth in sweet biscuits is outpacing the growth of the $60 billion global sweet biscuits market.
Campbell will operate Kelsen as a standalone business, reporting to Luca Mignini, president of Campbell International. Senior members of Kelsen’s management team, including Brian Rønsholdt, chief executive of Kelsen Group, will continue to lead the business. Luca Mignini says: “The acquisition of Kelsen, with its strong brand awareness in China and Hong Kong, is an ideal complement to Campbell’s global baked snack businesses and a platform for additional growth for Campbell in key emerging markets.”
Diageo Receives Approval to Become Sole Shareholder in Chinese Business Diageo has received approval from the Chinese authorities to acquire the remaining 47% stake in Sichuan Chengdu Shuijingfang Group Company
M E E R R G G E E R R S S M (SJF Holdco) owned by its Chinese partners. As a result, SJF HoldCo will be converted from a joint venture into a wholly foreign-owned enterprise owned by Diageo. On completion, Diageo’s indirect interest in the Shanghai-listed company, Sichuan Shuijingfang Co, will rise from 21.05% to 39.71%. The total consideration for the 47% of SJF Holdco will be approximately £233 million. Gilbert Ghostine, president of Diageo Asia Pacific, says: “This is a milestone in the journey we began with our partners six years ago. As the controlling shareholder in Shuijingfang, Diageo will continue to work with the senior Chinese management to build Shuijingfang into the leading international Bai Jiu brand. I have every confidence in the long-term future of the Bai Jiu category in China.”
AAK Acquires Unipro in Turkey AAK, one of the world-leading producers of high value-added vegetable oils and fats, has acquired Unipro from Unilever for an undisclosed price. Unipro is a leading supplier of oils and fats to the industrial and bakery markets in Turkey and the surrounding region. Founded in 1990 and located in Istanbul, Unipro employs approximately 37 people and had revenues of approximately SEK700 million (Eur82 million) in 2012. The acquisition of Unipro includes ten established brands, a core management and sales organization, all related knowhow and the Unipro company name for bakery and industrial fats. AAK has entered a 5 years toll manufacturing agreement with Unilever relating to the supply of Unipro products. “AAK will strengthen its presence in the 16th largest economy in the world which also has a strong real GDP growth. This
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is AAK’s next step in its strategy of increasing focus on growth markets,” says Torben Friis Lange, senior vice president of AAK. “This acquisition will serve as a platform for increased AAK sales of semi-speciality and speciality products in Turkey and the Middle East,” says Arne Frank, president and chief executive of AAK Group. The acquisition is subject to approval by the competition authorities. The impact on AAK’s 2013 operating profit is expected to be limited.
Former Premier Head Linked With Lucozade Bid Michael Clarke, the former chief executive of Premier Foods, is reported to have joined international private equity group Kohlberg Kravis Roberts (KKR) to advise on making a £1.5 billion bid to acquire iconic British and international soft drinks brands Lucozade and Ribena from UK-based global pharmaceutical and healthcare group GlaxoSmithKline. The disposal is part of GSK’s efforts to reshape its business, improve strategic focus and enhance its growth profile. Michael Clarke resigned suddenly as head of Premier Foods at the start of the year after only 18 months in the job and part way through a turnaround programme. He was replaced by Gavin Darby. KKR is expected to face stiff competition from other private
equity groups, such as Blackstone and Lion Capital, in bidding for Lucozade and Ribena. Other private equity suitor could include Bain Capital, CVC Capital Partners and Onex of Canada. Trade buyers believed to be considering bids including Suntory, the Japanese drinks giant, and UK-based AG Barr, which recently had a proposed merger with Britvic rejected.
portfolio. Headquarters in Sao Paulo, Balkis operates two production facilities in Santo Antonio do Aracangua and Juruaia. In 2012, Balkis reported net revenues of about 45 million reais (Eur16 million). The Eur24 million acquisition has been conducted through Parmalat’s Lactalis do Brasil subsidiary. Parmalat repored a 14% increase in net revenue to Eur2.59 billion for the first half of 2013, helped by strong performances in Australia and Latin America.
Parmalat Expands Brazilian Business Italian dairy group Parmalat, which is part of France-based Lactalis, has acquired Brazilian company Balkis Industria e Comercio de Laticinios (Balkis) to strengthen its gourmet cheese
Michael Clarke.
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
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COVER STORY
Danone to Restore Competitive Edge in Europe Danone is trying to revitalise its flagging European business while continuing to expand in its other global markets.
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perating more than 180 production plants and employing about 100,000 people globally, Danone is one of the largest and fastest growing food companies in the world. The group’s products are sold on five continents and it achieved sales of Eur20.9 billion in 2012. The group has four business lines - fresh dairy products, baby nutrition, waters and medical nutrition. Danone is the world number one in fresh dairy products and this business accounted for 56% of group sales in 2012. Ranked number two worldwide, Danone’s baby nutrition business contributed 20% of group Emmanuel Faber, vice chairman sales last year. The waters division is Danone. second in the world by volume and generated 18% of group sales in 2012. Accounting for the remaining 6% of group sales, Danone’s medical nutrition business is the European leader in this field. Danone has evolved from generating 60% of its sales almost exclusively in four markets in Western Europe to a position where 60% of its current sales emanate from outside of Europe. “Between 2007 and 2012 we have actually increased the number of our regular Danone product consumers by 50% from 600 million to 900 million regular Danone consumers around the world now,” points out Emmanuel Faber, vice chairman and co-chief operating officer of Danone. However, Danone’s sales and profit margins have been in long term decline in Europe (excluding CIS), in stark contrast to rapid growth elsewhere in the world. Danone’s business outside of Europe is divided into two regions - CIS & North America and
Franck Riboud, chairman and chief executive of Danone.
ALMA (Asia-Pacific/Latin America/Middle East/Africa). These two regions delivered sales growth above 12% in 2012 and continuous margin improvement of 80 bps on a like for like basis. Sales in Danone’s European business fell by 3% and margins decreased by 190 bps last year. Regaining Competitiveness in Europe Earlier this year Danone launched a two-year rehabilitation plan for Europe in order to reduce general and administrative costs, resulting in the shedding of 900 jobs. “In the and co-chief operating officer of 26 European countries where we do business, we have to simplify operations, generate synergies and create shared resources to avoid duplicating structures or relying on processes that don’t work for the local market,” explains Franck Riboud, chairman and chief executive of Danone. The restructuring is expected to generate savings of around Eur200 million in Europe by 2014. Combined with ongoing productivity programmes, the plan will free up resources to make Danone’s products and brands more competitive. Encouraging Top Line Growth In addition to tackling its cost base and simplifying its organisational structure to improve speed to market, Danone has also been making changes to encourage top line growth across its European operations. “We have reinvested money in the recipe, in the formulation, and in the quality of the ingredients of our products across the range, whether that’s weaning food in baby food or fresh dairy or aqua juices;” says Emmanuel Faber. Danone has also been repackaging many of its products. For example, the introduction of the Kiss cup pack in the yogurt cat-
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
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egory has increased product visibility and differentiation in-store and resulted in some of Danone’s brands growing by 10-20% since the change to the new packaging. Similarly, Danone has been investing heavily in product innovation to differentiate its offering from competitors. Danone has adjusted the pricing of its products in accordance with the tough trading environment and poor consumer sentiment across Europe. “We’ve been embarking on specific promotion programs across Europe to address these issues rather than price decreases,” Emmanuel Faber remarks. Promotions ensure the visibility of the products and maintain the frequency of purchase with less loyal shoppers, so ensuring expansion of the Danone consumer base in Europe.
Transitional Year 2013 is a transitional year for Danone as it implements its cost reduction and management restructuring plan designed to regain its competitive edge and adapt its operations to the current economic environment in Europe, where consumer confidence remains fragile, especially in certain regions. Simultaneously, Danone is continuing to build its brands and its organisational structure in other regions of the world to ensure sustained growth into the future. Danone’s growth regions of CIS & North America and ALMA will build further on the 60% proportion of group sales delivered in 2012 as Europe continues to decline until the rehabilitation programme bears fruit. Emmanuel Faber comments: “There will be a continued decline in sales and decline in margin in Europe in 2013 until gradually but only at the very end of this year the savings plan will start to kick in. This plan will be fully in place by the end of 2014. So it means basically that 2013 and 2014 will be years of transition for our European businesses, during which the remaining 60, 61, 62, 63% of our businesses will continue to deliver both superior top line growth and margin improvement overall.”
generate free cash flow of Eur2 billion, excluding exceptional items which will mostly relate to the costs of its restructuring in Europe. “We continue to believe that this free cash flow is basically what allows us to create the future for Danone and we are therefore very committed to continue to operate one of the best in class – in the consumer goods industry at least - cash conversion cycles,” says Emmanuel Faber On Course Danone has made a promising start to achieving its targets. The French food and beverages group increased sales by 6% to Eur11.06 billion in the first half of 2013, reflecting a 3.5% growth in sales volume and a 2.5% rise due to price/mix effect. Overall trading operating margin remained in line with targets, declining by 49 bps to 13.34% as lower sales in Europe continued to impact on group profitability, while margin outside Europe continued to rise. Free cash-flow in the period amounted to Eur714 million excluding exceptional items. “With sales up 6% in the first half, Danone is off to a strong start in 2013 in an economic and consumption context that remains difficult in Europe and in some cases volatile in emerging countries,” comments Franck Riboud. “In Europe, simplifying our model and reducing costs remain a priority. Our organisational adaptation plan is now being deployed, right on schedule, with the first benefits expected from the second semester onwards. Meanwhile, adjustments to our product portfolio are beginning to pay off.” The Danone chairman and chief executive continues: “In emerging markets and in North America, our profitable growth drivers are fully operational. In these markets, we are continuing to build our brands and our organisations, while at the same time laying the groundwork for future growth.” Franck Riboud concludes: “Our teams at Danone are tackling the second half of the year with the same energy, attitude and ambition, focusing on building a group with strong, sustainable and profitable growth for 2014 and on meeting our 2013 targets.” J
Financial Targets Danone has set a number of financial targets for 2013 and beyond. It is aiming to achieve like-for-like sales growth of at least 5% and to restrict its overall trading margin decline, as improvements in growth markets are offset by falls in Europe, to between 30 and 50 bps from the figure achieved in 2012. Danone is also aiming to 6
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
DOSOMAT Cup Filling and Closing Machines From Hermann WALDNER ALDNER GmbH & Co. KG is a W member of the Waldner group of companies which employs approximately 1,100 employees all over the world. In the past 100 years Hermann WALDNER GmbH & Co.KG has become a specialist in the business fields of DOSOMAT cup filling and closing machines, Process Systems and Water Technology. After a detailed review, DANONE at Aldaya in Spain has decided to use WALDNER’s reliable DOSOMAT filling and
closing machine to fill the product YOLADO. The high-quality technology and the long-term experience of WALDNER were essential for their decision. With the DOSOMAT cup filling and closing machines WALDNER’s customers fill liquids, pasty or powdery products or products with particles in pre-made cups or pouches. The applications include dairy processing and meat products, beverages, delicatessen and pet food as well as in the cosmetic and pharmaceutical industry. Some examples of products to be filled are: natural yoghurt, yoghurt with fruits, yoghurt with muesli, cream, quark, fresh cheese and processed cheese, delicatessen salads of various types, coffee powder, soups and sauce pastes, dressing sauces, mayonnaise, mustard, butter, margarine, spreads, honey, jam, jelly, pâté, pet food, cosmetic creams, etc. The DOSOMAT cup filling and closing machines stand out due to their modern servo technology, high flexibility, excellent
performance and above-average efficiency. For filling sensitive products under hygienic, low germ but also sterile conditions these machines are very appropriate. The machines can be used for a capacity range between 1,000 and 100,000 packages per hour, depending on the customer’s demands. The filling machine, type UNIMAT, or the tray sealing machine TRAY SEALER as well as the final packaging solutions COMBI PACKER also belong to the portfolio of the packaging machines. For further information contact Hermann WALDNER GmbH & Co. KG, 88239 Wangen/Germany at www.dosomat.de. J
M&H and Delta Create the First Non-aerosol Oil Sprayer elta Industries approached M&H Inc D to help create a unique product with the ability to atomize cooking oils completely free of any aerosols. M&H was briefed to produce a custom shaped bottle designed by Michael Graves Design Group to complement the new Delta Evo Trigger Sprayer which provides a metered dose, allowing portion control and consistency. M&H manufactured the distinctive PCTG bottle in-house. The 238ml fl oz bottle was produced in trans amber which immediately communicates and the graph-
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Spiroflow Launches Enhanced C1 Bulk Bag Filler piroflow, world-leading manufacturer of conveying and weighing systems, has announced an SIdeal upgrade to one of its most popular weigh fillers for pallet handled bags – the C1. for low to medium volume use where bulk bags filled on pallets are moved by forklift truck, the new C1 facilitates dust-free, accurate filling of up to 20 bulk bags per hour. Its base is directly mounted on an approved load cell weigh platform and the required weight can be pre-set for automatic cut-off. The platform includes a vibration facility for an even, accurate fill and effective compaction – perfect for handling products that aerate and resulting in a stable load for both storage and transportation. Boasting modular construction for ease of modification, the new C1 now features automatic height adjustment for different sized bags. Its inflatable neck seal ensures a dust-free environment and minimises product waste, and removing the filled bags has been made even speedier with the addition of a roller conveyor to complement the automatic bag loop release facility. For more information on Spiroflow’s products and services visit www.spiroflow.com or call +44 (0)1200 422525. J 8
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
I SUSTAINABILITY
Scotch Whisky Industry Goes Green A significant proportion of the £2 billion capital investment by Scotch whisky distillers in new production facilities to meet growing global demand is in the introduction of waste management and energy efficiency technology. s a long-term business, the Scotch whisky industry is showing its commitment to sustainability and maintaining a pristine environment by launching an ambitious Environmental Strategy in 2009. On the energy front, distillers have committed to sourcing 20% of primary energy requirements from non-fossil fuel by 2020 and 80% by 2050. Generating energy from distillery byproduct biomass, anaerobic digestion of effluent and fuel switching are key to the industry meeting its renewables targets.
generate electricity, produce animal feed and drastically cut carbon emissions. A joint venture, part-owned by Diageo, Edrington, Chivas Brothers, Inverhouse, John Dewar's, Campari and Ben Riach, it will process around 130,000 tonnes of distillers’ by-products annually from 16 Speyside distilleries. The facility will generate enough electricity to power 9,000 homes (see Page 14). Another project of this nature The Scotch whisky industry is showing its commitment to is at Edinburgh-based North sustainability and maintaining a pristine environment. Improving Efficiency and Reducing British Distillery, which is cutting Carbon Emissions its carbon dioxide emissions by 9,000 using ENER-G's CHP technology (see For example, the recently opened £60.5 tonnes per year through the use of anaero- Panel One). While the majority of the million Helius CoRDe biomass/feeds com- bic digestion (AD) technology, which will energy will be used within the distillery's bined heat and power facility in Rothes in convert by-products from the distillation manufacturing processes, displacing existSpeyside is using distillery by-products to process into biogas for generating electricity ing natural gas supplies to the steam boiler system, the remainder will be sold into the National Grid. Panel One: North British Distillery Wins National Recognition For AD Owned by Diageo and Edrington, North North British Distillery and HydroThane UK have won a major industry award for an anaerobic digesBritish Distillery is one of the largest tion (AD) project - developed in partnership with biogas digester specialist ENER-G. The project Scotch grain whisky producers in Scotland, recently won the ‘Best integration of AD into a food and drink business’ category in the AD & Biogas with its output used in the production of Industry Awards 2013. blended Scotch whiskies, including brands The £6 million green technology project has reduced the distillery's carbon dioxide emissions by such as J&B, Johnnie Walker and The approximately 9,000 tonnes per year. The project introduced high rate anaerobic digestion to help Famous Grouse.
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North British Distillery provide a sustainable solution to a bottleneck in the back-end production process. This comprises a by-products plant producing Distillers Dark Grain pellets for animal feed. Instead of investing in additional energy intensive evaporation capacity to process the liquid byproducts from the distilling process, a decision was made to install an anaerobic digestion plant which, conversely, produces renewable energy in the form of biogas. By using HydroThane's ECSB (External Circulation Sludge Bed) high rate anaerobic digestion technology to process a third of the post distillation liquor, North British Distillery has reduced the load on its existing energy intensive evaporation plant - increasing productivity while reducing energy demand. The AD plant is capable of treating 27,000 Kg of Chemical Oxygen Demand (COD) per day and produces up to 24,000 MW hours of renewable energy in the form of biogas. A high efficiency 500 kW ENER-G combined heat and power system and a 1,000 kW steam boiler convert the biogas into steam and electrical energy for use on-site. These two energy streams dramatically reduce the distillery’s reliance on the use of fossil fuel based energy inputs from the national gas and power grids. A water treatment plant uses two large aerobic bio reactors and micro-filtration membrane technology to process the effluent stream from the AD plant. This significantly improves the quality of the post-treated water before being discharged to the local sewer, enabling up to 40% of the total volume to be recycled within the distillery. This represents a considerable saving, considering that the distillery uses an average 20 million litres of water per week.
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£65 Million Bioenergy Plant As part of its recent £105million investment programme to expand its Cameronbridge Distillery in Fife, Diageo spent £65million on the construction of a cutting-edge bio-energy plant. The bioenergy facility is the first in the world to combine biomass combustion, anaerobic digestion and water recovery. The bio-energy plant has been built and is run in partnership with energy management company Dalkia. Cameronbridge Distillery is the largest alcohol beverage distillery in Europe, with the capacity to produce over 100 million litres of high quality single grain Scotch whisky each year and 40 million litres of gin and vodka. In Perthshire, Tullibardine Distillery is to become the first whisky distillery in the
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
AET deliver biomass-fired boilers and combined heat and power or power plants between the sizes of 25 – 170MWth. Our plants are characterized by: • High fuel flexibility • High availability (+99%) • High boiler efficiency (+92%) • Very low maintenance costs High fuel flexibility The AET Combustion System enables the Use of many biomass fuels – separate on in Combination. The biomass fuels can originate from forestry, agriculture, residual products from process industries or is based on industrial waste.
Aalborg Energie Technik a/s Alfred Nobels Vej 21 F DK-9220 Aalborg Oe. Telephone: +45 96 32 86 00 fsl@aet-biomass.com, The Helius CoRDe-Rabobank biomass CHP plant in Scotland burns wood and distillers grain.
www.aet-biomass.com
Panel Two: Diageo Sets New Benchmark For Environmental Sustainability Diageo’s new £65 million bio-energy faciliin renewable energy development in ty at its recently expanded Cameronbridge Scotland. Distillery powers the distillery by recycling Apart from the £65 million spent the natural co-products of distillation. on the bio-energy plant at Built and run in partnership with energy Cameronbridge, Diageo has also management company Dalkia, the bioinvested in the latest renewable enerenergy plant marks a global first in terms gy technology at its new Roseisle of combining renewable energy and water Distillery in Speyside – the first new treatment technologies with the potential malt whisky distillery to be built in to make the distillery one of the world’s Scotland for 30years. Incorporated on most environmentally sustainable. the site is a bio-energy plant which Indeed, it is also the first time that the turns distillery co-products into enertechnologies have been applied on this gy. CO2 emissions at the distillery are scale in the drinks industry. Diageo used reduced by approximately 13,000 similar renewable energy technology when tonnes through direct savings on fuel it built a new rum distillery in the US used for steam raising. Virgin Islands and there are plans to use As part of its recent £105million investment programme to expand its Renewable energy is generated similar technology at other sites around Cameronbridge Distillery in Fife, Diageo spent £65million on the from liquid and solid by-products – a construction of a cutting-edge bio-energy plant. the world in the future. mixture of barley husks, yeast and The Cameronbridge bio-energy plant water - produced during distillation generates renewable energy from ‘spent wash’ – a mixture of wheat, malted barand dust and rootlets from the maltings germination process. This is separated ley, yeast and water - produced during distillation. The spent wash is separated into liquid, producing energy in the form of biogas through anaerobic digestion, into liquid and dried solids. The liquid is then converted, via anaerobic digesand dried solids which form a biomass fuel source. Diageo’s total investment at tion, into biogas and the dried solids form a biomass fuel source. Roseisle was £45 million in total, with the renewable energy portion representAccording to David Gosnell, Diageo’s President of Global Supply and ing £17million. Procurement: “Cameronbridge Distillery is a global flagship for Diageo, repreOther key renewable investments by Diageo include a £6 million biomass senting the scale of our ambition for the sustainable growth of our business. plant using distillery draff at the Glenlossie Distillery (Speyside). The plant genThe distillery is at the forefront of innovation in renewable energy and sets a erates 3.4 MW of thermal energy, provides 50% of energy demand for the site, new benchmark for environmental sustainability in distilling, not just in and reduces CO2 emissions by 6,000 tonnes. Scotland, but on a world stage.” At Dailuaine Distillery (Speyside), Diageo has spent £6 million on an anaerobic digestion plant using distillery draff and pot ale, to generates 0.5 MW of £100 Million Investment biogas to a CHP unit. The facility provides 40% of electrical demand for the Environmental sustainability is central to Diageo’s whisky production invest- site, reduces CO2 emissions by 250 tonnes and provides bio-fertiliser for farms, ment programme in Scotland. Indeed, Diageo has invested nearly £100 million while clean water is discharged into the Spey River.
world to have its by-products converted into advanced biofuel, capable of powering vehicles fuelled by petrol or diesel. The independent malt whisky producer has signed a deal with Celtic Renewables, an Edinburgh-based company which has developed the technology to produce biobutanol from the by-products of whisky production. Scotch Debut by Green Investment Bank Meanwhile, the Green Investment Bank,
Anaereobic digestion facility at North British Distillery.
which was launched in November 2012 by the UK Government to invest in sustainable projects, has made its first investment in the Scotch whisky industry. The Green Investment Bank is participating in a £1.2 million investment for the installation of a biomass boiler at Tomatin Distillery near Inverness. The new boiler at Tomatin replaces a high maintenance, inefficient oil fired boiler. Fuelled by Generating energy from distillery by-product biomass, anaerobic sustainably sourced digestion of effluent and fuel switching are key to the industry wood pellet fuel, meeting its renewables targets. the new boiler is expected to cut CO2 emissions single malts are currently sold in over 40 by over 96,500 tonnes over the export markets. 20 year life of the investment. In addition to supporting the Other Environmental Targets green economy and reducing Other 2020 targets in the Environmental carbon emissions, switching to Strategy for the Scotch whisky industry a biomass boiler will save include: a 10% reduction in packaging Tomatin a significant amount weight; 40% packaging from recycled mateon its energy bills. The whisky rials; all product packaging being reusable produced at the distillery is or recyclable; and no packaging operations used in a range of blends and its waste-to-landfill. J
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
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Successful Start of New Biomass Fired Co-generation Plant he Helius CoRDE biomass plant in T Spreyside, provides for costs savings by more efficient energy use while supplying steam for production, injecting electricity to the national grid, and saving 64,000 tonnes of CO2/year. Successful reliability and performance trials have taken place at the Helius CoRDe plant in Rothes, a joint venture between renewables specialist Helius Energy, the Combination of Rothes Distillers (Cord) and Rabo Project Equity, a division of Netherlands-based Rabobank that specialises in backing renewable projects. Operations have officially started at the plant that produces 8.4 MWe, enough electricity to power 9000 homes, 73.2 tons per hour of pot ale through the evaporator plant and liquid animal feed from the byproducts of whisky distilling. The plant conditions and burn solid residues from the malt whisky distilling process, known as draff, together with clean wood. Annual fuel input will be approximately 115,000 tons of wet draff from local distilleries and 60,000 tons of uncontami-
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nated wood chips. Power will be exported to the grid and heat will be utilised for draff fuel drying as well as the whisky process. The plant will generate revenues from index-linked gate fees received for processing distillery residues, electricity sales and sales relating to the plant's Renewables Oblig-ation Certificate (ROC). Income will also flow from the sale of pot or Spey ale syrup to the animal feed market, largely throughout the UK. The plant, which employs 22 staff in a town of 1500 people, has been supplying the grid over the course of its commissioning phase in recent months. CHP Project Aalborg Energie Technik (AET) was appointed by Helius Energy for the complete turnkey design, supply, erection and commissioning of the biomass CHP project. This incorporated all elements of the plant from fuel reception, handling and storage systems through to flue gas treatment system only with the exception of civil works below ground level. At the heart of the plant are the AET Combustion System and AET boiler. The unique AET fuel dosing and combustion technology provides the optimal combustion conditions and results in low emissions, high boiler efficiencies, high plant availability and low maintenance costs. Helius, whose main shareholders include land owner Alastair Salvesen, who holds a 25.79% stake, Angus MacDonald and family (17.7%) and Stagecoach co-founder Ann Gloag (9.78%), says it would save about 46,000 tons of carbon dioxide a year, compared with a coalfired facility of similar size.
It also expects to reduce a further 18,000 tons of CO2 a year by closing the existing gas-fired Cord facility at the same site. Second Biomass Plant The Helius CoRDe plant is the second biomass plant built by AET in the UK. The first was a 15 MWe power only plant at Western Wood in Port Talbot in Wales. This has been operating very successfully since 2008 utilising clean wood and recycled wood, showing very high performance and availability figures. According to Frank Lund, sales manager at AET, it is obvious that companies in the food and drink industry will increasingly look into the option of using co-generation in order to improve competitiveness: • Obtain a higher energy efficiency • Turn traditional waste streams into revenue • Reduce carbon footprint • Support the companies sustainability policies For further details contact Frank Lund, AET Sales Manager on + 45 96 32 86 00. J
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
I WASTE MANAGEMENT & ENERGY EFFICIENCY
ENER-G Offers Custom Designed AD and CHP Solutions With No Capital Outlay o help food and drink processors tackle T escalating energy and water effluent costs and carbon taxes, renewable energy
heat incentives and reduction of any effluent or waste disposal charges, so a client can receive between 20% and 50% of the benefit without investing any of their own capital,” explains Scott Tamplin, Director of AD Development at ENER-G. ENER-G’s solutions are suitable for food and drink processors across a variety of sectors including brewery, soft drinks,
specialist ENER-G is offering to design, install and operate an integrated Anaerobic Digestion (AD) and combined heat and power (CHP) system for clients at no capital cost to them. This provides an additional, reliable income stream for businesses. The AD process produces biogas from process waste, which is high in methane content and is ideally suited to drive a CHP engine to generate both heat and electricity. This type of combined waste management and energy efficiency system immediately reduces the user’s energy costs and carbon footprint. Based in Salford, Greater Manchester, ENER-G has extensive experience in designing, manufacturing, installing, financing and operating CHP systems for a variety of AD plants across the UK and Europe. Drawing on this expertise, ENER-G is offering integrated and tailor-made outsource solutions to the food and drink industry, so eliminating the need for capital investment by the client. This entails assessment of ENER-G biogas generation system at North British Distillery. the client’s process waste by an independent laboratory to ascertain the AD distilling, dairy and bakery. Processing technology best suited to the waste stream. facilities of all sizes can be accommodated, ENER-G is independent and so can select but the minimum requirement is a liquid the best option from the myriad of AD effluent stream of at least 3,000 Kg of technologies and equipment suppliers on COD (Chemical Oxygen Demand) per day. the market. ENER-G will then provide the CHP system and design, install, operate and own Award Winning the complete plant. The duration of the One of ENER-G’s recent projects at the contracts being offered by ENER-G are North British Distillery in Edinburgh, for 10, 15, 20 or 25 years. which was implemented in conjunction with AD technology company Benefits HydroThane UK, recently won the ‘Best “The benefits we are offering with this integration of AD into a food and drink outsource build-own-operate model is that business’ category in the AD & Biogas clients receive an independent assessment Industry Awards 2013. of their waste and the right AD technology A joint venture between Diageo and to suit their needs. ENER-G will share the Edrington, the North British Distillery is benefits of the feed-in tariff and renewable one of the largest grain whisky producers
in Scotland. The £6 million green technology project at the site has reduced the distillery's carbon dioxide emissions by approximately 9,000 tonnes per year. The AD plant is capable of treating 27,000 Kg of COD per day and produces up to 24 000 MW hours of renewable energy in the form of biogas. A high efficiency 500kW ENER-G CHP system and a 1 000 kW steam boiler convert the biogas into steam and electrical energy for use on-site. These two energy streams dramatically reduce the distillery’s reliance on the use of fossil fuel based energy inputs from the national gas and power grids. Other projects completed recently by ENER-G within the UK food and drink industry include a 500 kW biogas generator at a malt whisky distillery in Scotland and 190 kW unit at a dairy in Somerset. Barriers to AD and CHP Usage So what are the barriers to further adoption of AD and CHP technology within the food and drink industry? “Predominantly lack of knowledge and also the high level of capital expenditure involved,” Scott Tamplin replies. He continues: “Because we are an engineering company with extensive experience in renewable engineering and renewable energy systems, we can offer clients a complete package incorporating AD and CHP. We are an independent company and so can make decisions quickly. We make the whole system bankable because we have a portfolio of established investors who are prepared to invest in ENER-G because of our track record and history.” He adds: “So we have quick access to capital and because we are technology agnostic and independent, we choose the AD technology that is best suited to the client’s factory.” For further information visit www. energ.co.uk/biogas. J
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
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I SUSTAINABILITY
Diageo Partners With Dalkia to Complete New £65 Million Bio-energy Plant iageo’s new £65 million bio-energy D plant at Cameronbridge Distillery in Fife has been built and is being run in partnership with energy management company Dalkia. The bio-energy plant has the capacity to generate over 30 Mega Watts (MW) of energy meeting up to 95% of the site’s energy needs by recycling the entirely natural co-products of distillation. Generating Renewable Energy The bio-energy plant generates renewable energy from ‘spent wash’ – a mixture of wheat, malted barley, yeast and water – produced during distillation. The spent wash is separated into liquid and dried solids. The liquid is then converted, via anaerobic digestion, into biogas and the dried solids form a biomass fuel source. In the new plant circa 3,500 cu m/day of spent wash are dewatered through 12 large belt presses. The pressed cake is transferred to a dual fuel boiler where it is burned with the biogas on site to produce steam. The liquid filtrate is passed through an anaerobic digester where biogas is extracted. The biogas is then also transferred to the same dual fuel boiler. The steam produced is used to drive a turbine and generator producing some 5.5 MW of electrical energy.
British Prime Minister, David Cameron MP, recently visited the Cameronbridge Distillery where Diageo has completed a unique renewable energy facility which powers the distillery by recycling the natural co-products of distillation.
The water recovery facility has the capacity to recover 30% of water from the distilling process, reducing the volume of water used and significantly improving the quality of the water discharged from site. Global First The new plant represents a global first in terms of combining renewable energy and water treatment technologies with the potential to make the distillery one of the worlds most environmentally sustainable. The facility will for the first time integrate sustainable technologies – including anaerobic digestion and biomass conver-
sion – on a commercial scale. It is believed to be the largest single investment in renewable technology by a nonutility company in the UK, and is set to reduce annual C02 emissions at the site by approximately 56,000 tonnes (equivalent to taking 44,000 family cars off the road). The facility will provide 98% of the thermal stream and 80% of electrical power used in the distillery. Adoption of this technology at Scotland’s largest whisky distillery has enabled Diageo to meet its global reduction target in respect of C02 emissions. J
Key Features of the Bio-energy Plant at Cameronbridge Distillery After passing through the turbine, the steam is piped back to the distillery where it is used for heating and CIP purposes. Once the organic matter in the filtrate has been converted into biogas the liquid passes through several other processes namely an aeration stage, micro filtration and a reverse osmosis plant. At this point the RO permeate water is reused as boiler feed and for the plant and certain distillery CIP processes. 16
* The bioenergy facility is the first in the world to combine biomass combustion, anaerobic digestion and water recovery. * The bioenergy plant has the capacity to generate over 30 Mega Watts of energy meeting up to 95% of the site’s energy needs by recycling the entirely natural co-products of distillation. * The bioenergy plant has the capacity to reduce carbon emissions by 56,000 tonnes annually – the equivalent to the amount of energy needed for 10,000 homes a year. * The water recovery facility has the capacity to recover 30% of water from the distilling process, reducing the volume of water used and significantly improving the quality of the water discharged from site.
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
I SUSTAINABILITY
We Use Carbonostics Emblem Launches With Equal Exchange to Demonstrate Commitment to Sustainability in the Food Sector wo pioneers in the food industry - sus- "The 'We Use Carbonostics' their brands; and, T tainability metrics developer, Bluehorse emblem delivers the first truly 4. Communicate this commitAssociates, and US fair trade market leader, realistic option to do just that: ment to internal and external Equal Exchange - have joined forces to unveil a new emblem. The newly launched ‘We Use Carbonostics’ emblem provides a more accessible option to food and drink companies that wish to demonstrate a significant commitment to sustainability without the burden or risk of publishing quantitative measurements reflecting environmental impacts. "While the debate around the how and why of environmental labeling rages on, most companies find their organizations in limbo. They may not be ready to, or see the benefit of, publishing their measurements, but they do want to demonstrate their commitment to sustainability," explains Bluehorse Associates President Sara Pax.
this badge of honor emblem communicates to both internal and external stakeholders that the company is working on their sustainability challenges in a committed and informed way." By using ‘We Use Carbonostics’, food companies commit to: 1. Operate with a strategic and active commitment to sustainability; 2. Conduct environmental impact measurement analyses with Carbonostics at a facility, product or organizational level; 3. Apply Carbonostics' results to drive more informed decisions about the operational practices of their businesses and
stakeholders by using the ‘We Use Carbonostics’ emblem. The ‘We Use Carbonostics’ emblem and commitment program is the fruit of a pilot program between Bluehorse Associates and Equal Exchange. The pilot revealed that an alternative to labeling or publishing environmental impacts could be beneficial to small-to-medium sized food sector companies to express that they are actively working on their sustainability challenges. To learn more about the benefits of using the ‘We Use Carbonostics’ emblem, visit www.carbonostics.com. J
Making the Most of Waste to Energy Opportunities
he use of alternative fuels is growing. T With take-up in Europe demonstrating what can be achieved, and driven by developments in carbon-neutral technology, more Irish organisations are recognising the value of bio-fuelled, cogenerated on-site power. Combined Heat and Power (CHP) plants are often fuelled by natural gas, which is clean, consistent in quality, and often cheaper than alternative fuels. However, a CHP plant can also operate on biogas, landfill gas, liquid gas, propane, biomass, diesel and bio-diesel. The commitment of countries such as France, Germany and Italy to reduce carbon emissions and improve energy efficiency levels has led to the growing use of ‘waste’ and biomass fuels. On-site CHP and waste-to-energy CHP, in particular, are a viable route to similar energy efficiency, cost reduction and environmental improvement for Ireland too, because natural energy and carbon efficiencies embodied in gas or oil-fired CHP are enhanced with the use of a carbon-neutral fuel. The growth of waste-to-energy and biofuelled CHP in Europe are being driven by the escalating price of fossil fuels, the need to recycle and the need to reduce carbon dioxide emissions. The ‘spark gap’ (between gas
and electricity prices) has driven more organisations to turn to more efficient and costeffective means of on-site energy generation. Coupled with this is a growing awareness of waste management as a key business operation, fundamental to cost efficiency. Minimising waste to landfill by utilising onsite by-products to fuel cogeneration plants provides a solution that reduces reliance on carbon fuels and simultaneously diverts a waste stream from landfill. Now the environmental performance of on-site generation through CHP plants is
being enhanced by technologies that enable the use of discarded materials to be burnt in the process of generating electricity. This is providing a viable option for seeking to improve environmental performance and deliver energy cost efficiencies. While CHP has been widely recognised by the large scale industrial and healthcare sectors in Ireland for some time; the market is now evolving to generate heat and power onsite, not only from biogas created through Anaerobic Digestion, but also from landfill gas, bio-liquid and biomass. J
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
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I INGREDIENTS & CONSUMER FOODS
Solid Performance by Kerry Group Kerry Group, the global ingredients, flavours and consumer foods producer, is sustaining the strong business development and growth momentum achieved in the final quarter of 2012 into its current financial year with solid growth in interim trading profit and further margin improvement. erry’s core ingredients & flavours business specialises in developing and supplying technology-based ingredients and taste solutions and pharma, nutritional and functional ingredients for the food, beverage and pharmaceutical markets globally. This part of Kerry’s activities accounts for about 70% of group revenue and an even higher proportion of trading profit. The balance is contributed by Kerry’s consumer foods business, which supplies added value chilled foods to Ireland and Great Britain in both the branded and private label sectors. Headquartered in Tralee, County Kerry in Ireland, Kerry Group operates 150 manufacturing sites, employs 24,000 people across its operation in 24 countries, and sells its products in 140 countries worldwide.
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Encouraging Results In spite of a relatively sluggish overall market environment, particularly in developed markets, Kerry achieved a solid financial performance in the first half of 2013, with encouraging results across its ingredients & flavours and consumer foods business segments. Group sales revenue rose by 1.1% to Eur2.9 billion and trading profit increased by 9.8% to Eur267 million. Adjusted earnings per share in the period increased by 11.7% to 108.9 cent. Continuing business volumes increased by 2.7% and pricing increased by 1.8% ? broadly offsetting input cost inflation of approximately 4%. Ongoing added value business development which is improving product mix, coupled with the benefits accruing through the 1 Kerry Business Transformation Programmes and the positive impact from exiting non-core business activities, contributed to a 70 basis points improvement in the group trading profit margin to 9%. This reflects an 80 basis points improvement in trading margin in ingredients & flavours to 11.1% and a 30 basis points improvement 18
Kerry has commenced construction work on a Global Technology & Innovation Centre in Ireland, involving investment of €100 million.
in consumer foods’ margin to 7.7%. Ingredients & Flavours The ingredients & flavours business achieved good underlying value growth through innovative product developments in all end-usemarkets and channels driven by Kerry’s complete technology positioning. Sales revenue grew by 4.1% on a reported basis to Eur2.16 billion reflecting 2.9% like-for-like growth. Continuing business volumes increased by 3.9% and pricing increased by 2%. Trading profit grew by 11.6% to Eur239 million. Consumer Foods Kerry’s consumer foods division is in the process of refocusing its business model on its core offerings. Consequently, whilst the underlying core business sales performance was encouraging, divisional revenue on a reported basis decreased by 5.8% to Eur830 million and 4.5% on a like-for-like basis. Continuing business volumes decreased by 0.3% and pricing increased by 1.2%. Trading profit decreased by 1.8% to ?64 million but the division’s trading margin improved by 30 basis points to 7.7%.
“The group achieved a strong financial performance in the first half of 2013 and continued to invest in enhancing the quality of our businesses,” says Stan McCarthy, chief executive of Kerry Group. “Our global ingredients & flavours technologies and core consumer foods businesses are performing well. We remain confident of achieving our growth targets for the full year and delivering 7% to 11% growth in adjusted earnings per share to a range of 250 to 260 cent per share.” Investment in Innovation Kerry has commenced construction work on its new Global Technology & Innovation Centre in Ireland, involving investment of Eur100 million. Based at Naas in County Kildare, the new facility will serve as a key focal point for Kerry’s customer engagement activities, providing customers with access to the group’s complete breadth and depth of technologies, scientific research, innovation and applications expertise across the food, beverage and pharmaceutical markets. The development marks the largest single investment in food innovation ever by a company in Ireland. J
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
I PROJECT MANAGEMENT
Capital Investments Always Need to Deliver Value For Money Going forward the UK and global food and drink sector requires continuous improvement in product and process innovation, manufacturing efficiency, food safety and value for capital investments. legg Food Projects has a team with the expertise and experience to meet these challenges. The company has a proven track record in delivering large-scale and smaller schemes to cater for the concept, design and delivery of improved production facilities in the food and drink industry. Many food and drink producers no longer carry in-house resource that has the time or experience to step away from the day to day business pressures to focus on capital projects that deliver manufacturing improvements.
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Clegg Food Projects is a growing company which is there to meet its clients’ needs. It has benefited from significant repeat business from satisfied customers and is attracting many new clients too. Expertise in the concept, design and delivery of improved production facilities has grown in specialist, independent organisations. Nottingham-based Clegg Food Projects is a perfect illustration of this. Over £500 Million Worth of Projects Since it started in the early 1980s, Clegg Food Projects has delivered over £500 million worth of projects right across the UK in all sectors including dairy, bakery, ready meals, poultry, meat processing and brewing and across all manufacturing settings – ambient, chilled and frozen to both branded and own label businesses. The key attributes that Clegg Food Projects offer are a clear understanding of food and drink production and storage operations, best 20
practice in the delivery of projects and knowledge of how the capital investment will impact on the future operation of the site once the project is completed. The role taken by Clegg Food Projects can be tailored to suit a client’s needs. Early involvement is recommended with a full feasibility, design, engineering and construction capability available. The service can be split with involvement at any point in a project’s evolution and delivery to suit a food or drink producer’s needs. An integrated approach combining feasibility studies, design capabilities for factory layouts, process and building services and the methods by which an investment will be delivered provides clients with significant benefits. Clegg Food Projects has a range of skills within the team that can be utilised, in particular feasibility studies to review the benefits associated with different options and their relative costs for implementation. This helps clients select the best solution before committing significant investment. Early Involvement is Critical Early involvement in capital investment planning by a specialist such as Clegg Food Projects is critical in achieving the best possible outcome. With a team which has experienced construction managers and services engineers from the food and drink industry, the impact on the project implementation process and long term operation of the site can be understood, again before the project gets under way. Capital investments in the food and drink industry always need to deliver value for money; margins in food production remain tight. Value engineering exercises led by the Clegg team can realise significant capital and operating cost savings, again early stage involvement offers the best potential solution with a flexible approach to ensure the delivery of best value Current trends among the food and drink industry are for modification, expansion or improvement of existing
facilities as companies seek to get the maximum output and efficiency from their current resource. The understanding and experience that Clegg Food Projects offers in this situation is invaluable in understanding what it is possible to achieve and also how the project can be delivered whilst the safe, efficient production of food and drink continues throughout.
Export Opportunities The UK’s reputation in food and drink production and Clegg Food Projects experience in delivering capital projects for many years is now providing opportunity to export these skills and knowledge. Many of the world’s emerging markets are looking to the UK for support in delivering high quality facilities for the safe and efficient production of food and drink to their local markets whose expectations are increasing rapidly. Clegg Food Projects is providing its design, knowledge and management services to these new markets, including a major new food investment in the Middle East. Clegg Food Projects experience and expertise is key to its success, but rather than resting on its laurels it is meeting the demand for product and process innovation, manufacturing efficiency, food safety and value for capital investment that the UK and global food and drink sector requires. With this mind set, Clegg Food Projects will continue to deliver the very highest standards into the future for new and existing customers alike. J
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
I PROJECT MANAGEMENT
A Refreshing Approach to Construction s a high care construction company with considerable expertise A and experience in delivering projects within the sensitive environments of the food industry, TSL Projects has rapidly become one of the premiere design and construction specialists delivering first-class results in new build, refurbishment, fit-out and extension projects throughout the UK and Ireland. As part of the Tonroe Group, TSL has successfully worked with a number of blue-chip clients, and major producers including Unilever, Andros, Mars Chocolate, Alpro, British Sugar, Bowmans Ingredients, Dawn Meats, English Provender Company, Heinz, Walkers Snack Foods, Anglo Beef Processors and the Jersey Dairy Company. TSL has grown strongly in recent years and added a range of design and engineering skills to its portfolio in the Mechanical, Electrical, Structural, Process and Civil design disciplines. This enables TSL to undertake all aspects of a project from initial sketch
through detailed design, construction and commissioning. Additional in-house front end services include steel fabrication and erection, Stripout and equipment relocation. TSL brings a fresh approach to construction, focusing on working closely with its clients and contract partners to design and deliver fast track projects in an open, inclusive, predictable and non-contractual way. The company’s collaborative way of working from developing initial budgets to construction, equipment relocation and commissioning is at the heart of TSL’s success - in short, a philosophy of ‘Start Right – Stay Right’. For further information telephone 0845 330 7311 or visit www.tslprojects .com. J
Maceo Design and Management Delivers to Client Expectations and Requirements aceo Design and Management is a multidisciplinary Engineering M and Project Management Company, which specialises in the delivery of projects of all sizes and complexities within the food industry throughout the UK, Ireland and overseas. From internal refurbishments of existing buildings, GMP offers upgrades and intricate bespoke design solutions, through to complete engineering procurement and construction management (EPCM) of green field sites. Maceo Design and Management has the team and the capabilities to successfully deliver, from the simplest to the most complex of projects efficiently and cost effectively. The senior management have been involved in the industry for over twenty years and continue to establish and maintain excellent working relationships with some of the most recognisable names in the industry. From bakeries to liquid milk, soft drinks to convenience foods Maceo has the experience, expertise and resources to deliver to client expectations and requirements. The company’s services include Project
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Management, Integrated Engineering Design, Building layout design, Process Design, Civil, Structural Engineering design, Building Services & Electrical Design, 3D Visualisations & Animations and Construction Management. From its bases in the UK and Ireland, Maceo Design and Management continues to grow its client base through Eastern and Western Europe and Africa and strives to continue to provide excellent services to clients. J
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
I PROJECT MANAGEMENT
Booth Smith Food Technology – Tackling Complicated Food Projects omplex food processes and food projects C need experienced food technologists and professional food project engineers. Based at Ingleby in Derby, Booth Smith Food Technology specialises in providing Food Product Development & Project Management Services. For that food installation which you cannot buy “off the peg” food businesses need a
team who can design it using a wealth of specific process know-how gained by first hand career experience. Booth Smith will ensure it is procured, installed and commissioned in a food factory environment which meets all accreditation standards and produces the food products according to the specifications of the client’s or BSFT NPD technologists at the capacity specified at the outset. The Booth Smith firm in over 40 years has established good credentials to design the best process for food products at the right price and capacity, installed in a factory layout with fit-out to meet top food standards. Many projects are based on original NPD work by BSFT team technologists. Before investment starts BSFT group consultants will ensure the process is stateof-the-art appropriate to the scale of manufacture. This often includes a feasibility study report and layouts to check that every aspect of the operation will be carefully planned using food technology experts with first-hand knowledge of all process parame-
ters appropriate to the client’s food products. BSFT will report estimated investments costs and will assist owners to implement the project and help to control budgets. Excellence of designs and technology selection is based on participation by the BSFT team of top experts and engineers in most food categories including Bakery (Cake, Bread & Biscuits), Dairy, Recipe Dishes, Chilled Foods, Snacks, Sauces & Dressings, Confectionery, Bagged Snacks, Convenience Foods, Ingredients, Frozen Foods, Dry Mixes, Meat, Poultry, Oils & Fats, Soft Drinks, Coffee & Tea and many more. Projects completed include biscuits & sweets, sushi factory, poultry factories, tomato paste and ketchup, snack plants, dry mix desserts, and many more. See www.foodtechnology.co.uk for more information. J
Chalcroft Goes Grocontinental halcroft Construction has completed a C £5 million warehouse project for West Midlands specialist haulage and storage company, Grocontinental. The new 4,000 sq m frozen warehouse built by Chalcroft at Grocontinental’s headquarters in Whitchurch, Shropshire, will increase the company’s frozen storage capacity by 13,000 pallets and will take the total storage capacity up to 143,000 pallets. Food products will be stored at temperatures as low as -28°c in the new facility. Linda Grocott, Joint Managing Director for Grocontinental, says: “The new warehouse is part of our £12 million investment programme for 2013 which will also see the renewal of our entire vehicle fleet to keep pace with the latest in vehicle technology and economy.
“Chalcroft understands the complexities and demanding nature of construction work in the food sector and has proved to be proactive and reliable long term partner, helping Grocontinental to maximise operational efficiency.” Chalcroft Construction, whose expertise includes building food factories as well as upgrading distribution facilities, works collaboratively with clients to provide bespoke
solutions for a diverse range of construction needs. “Collaboration is key,” says Mark Reeve, Managing Director of Chalcroft Construction. “By working closely with construction partners right from the early stages in design all the way through to completion, the industry can take advantage of the wealth of experience present in the construction sector, making significant cost savings and increasing operation efficiency.” Chalcroft Construction handles a wide range of projects from simple refurbishment to multi-million pound factories. J
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
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I FINANCE
Financing The Irish Food and Agri Sector By Barry Henry, Head of Loan Products Group, Rabobank Ireland ecent business developments by Food & Agri companies in Ireland have lead to a greater need for financing products in the sector. This has generated opportunities, challenges and increased attention from banks, and a need to develop innovative structures to cope with the greater financing requirement.
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Increased Financing Needs The Irish F&A sector has had a run of successful years, driven by beneficial commodities markets, strong export growth, and increasing overseas consumer demand. The sector has seen substantial growth over the period since 2008, when many other industrial sectors have been suffering declines. Irish F&A exports have grown from Eur7.1 billion in 2009 to Eur8.1 billion in 2010, Eur8.9 billion in 2011, and Eur9.2 billion in 2012. The UK was the destination for 42% of all Irish agri-food exports in 2012, 31% went to Continental EU, while the remaining 27% went to international markets. The latest estimates of our agri-food and drink exports in 2012 by sector is as follows: • Dairy products and ingredients (30%) • Beef (21%) • Prepared consumer foods (15%) • Beverages (14%) • Seafood (6%) • Pigmeat (5%) • Edible horticulture (3%) • Poultry (2%) • Sheep and sheepmeat (2%), and live animals (2%), (Statistics: Bord Bia, Rabobank). This growth has led to an increasing need for capital to finance investment in fixed
assets and increased working capital needs. While the industry itself has provided part of this capital through retained earnings, the greater part of the investment need has been met by debt. The increased earnings have lead to an increase in credit quality through a strengthening of balance sheets. There has also been an increase in the international spread of the large Irish players, further underpinning the financial strength of the larger companies in the sector. Financial institutions have shown an
Barry Henry, Head of Loan Products Group, Rabobank Ireland.
increased interest in F&A banking to try to meet the greater debt needs from a strengthening sector. While Irish banks have seen their own problems, the F&A banking sector has seen significant growth, and an increase in interest from international banks. Emerging Financing Structures While traditional funding structures have remained dominant, banks have modified existing lending products and developed new instruments to meet the increased demand for debt capital. The sector has seen an increase in debt raising in the US private placement market. This market provides debt of longer tenors than those available in the bank market. While the historically higher margins demanded by the sector are now coming more into line with the bank market, the greater flexibility offered via bank debt still makes banks an attractive source of funds
for the corporate. The public bond markets have also seen an increase in issuance from Irish F&A corporates. There is a developing opportunity for larger, well rated Irish F&A companies to raise capital in these markets at attractive pricing, driven by investor appetite. Increasing bank margins and a desire to match debt structures to financing needs have led to an increase in securitisation and receivables financing transactions. The ability to match the seasonality of working capital makes this a very attractive financing instrument. This has also led to increased interest in commodity financing. Corporates are taking advantage of ownership structures where the bank acquires the relevant commodity and sells it on to the company on an as-needs basis, passing on costs-of-carry in the on-sale price. The industry has also seen the emergence of a number of industry-specific deals, such as a recent Rabobank led transaction for the dairy industry, which takes a sector wide approach to funding companies linked by participation in similar business lines. These types of transactions are complex and need significant development time from the parties involved. Local Presence Growth in the F&A sector is providing significant expansion opportunities for banks. While there are a number of developing capital sources - the increasingly well used USPP market and potential in the public bond markets – the flexibility of bank debt, means there will always be a role for bank financing. However there are a number of challenges that banks must face, necessitating the need for a local presence in order to establish marketing leads and to understand the complexities of the credit issues of the sector. J
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I FOCUS ON IRELAND
Irish Food & Drink Exports Continue to Grow The value of Irish food and drink exports has increased by over 8%, or €370 million, during the first six months of the year, relative to the same period last year. ccording to Bord Bia (the Irish Food Board), the increase was driven by a particularly strong performance in beef exports – up by 15% - accounting for almost 40% of the total growth. Other strongly performing categories were prepared foods (+15%), and dairy (+4%), while pigmeat (+9%) and beverages (+4%) also recorded solid growth. Aidan Cotter, chief executive of Bord Bia, comments “The export figures for the first half of the year are particularly impressive at a time when overall exports have fallen by some 6%. Last year, Ireland’s food and drink exports surpassed the Eur9 billion mark for the first time and the prospects for the remainder of 2013 remain broadly positive with a strong demand for dairy and beef, combined with a more robust prepared foods performance and further steady growth in beverages.”
A
Beef Sector The performance of Irish beef exports in the first half year has been particularly striking, comprising a volume growth of almost 10% and price growth of 5%, driving the value of beef exports to reach almost Eur1.1 billion. The higher volume, which is set to continue through this year and into 2014, was anticipated, and follows a cyclically low volume in 2012. The price growth reflects prime Irish cattle currently reaching 109% of corresponding EU prices, up from 98% at the beginning of the year. “This has been driven largely by strong demand from the UK, Ireland’s largest beef market, during a period strongly marked by the contamination of processed beef products and issues of consumer trust,” Aidan Cotter points out. The resilience of the beef market may
also be associated with the strong demand for cattle from the Bord Bia Quality Assurance Scheme, whose membership has now risen to 36,400 producers. Today, some 85% of Irish beef production is being sourced from approved farms, up from 78% in 2012, with applications for membership in the year to date up by 135% to 5,700. The sharp rise reflects a doubling of the bonus paid by beef processors for cattle from approved farms. Dairy & Prepared Foods Stronger global dairy product Irish beef exports achieved volume growth of almost 10% and prices, which in most cases were price growth of 5% in the first half, driving value sales to almost more than 20% ahead of year Eur1.1 billion. earlier levels, helped offset lower milk intake due to poor grazing conditions growth in mushroom exports to leave edifor much of the spring. Irish dairy exports ble horticulture and cereal exports at increased by Eur55 million to exceed Eur108 million, 5% below year earlier levEur1.3 billion. Prospects for the immediate els. period ahead remain positive with much The value of pigmeat exports was boostthereafter depending on the level of supply ed by an increase of more than 10% in response to the current strong global prices. average pig prices, which helped offset a Despite the ongoing competitive chal- drop of 1% in output levels, to reach lenges faced by prepared foods exporters Eur250 million. The recent softening in the value of trade recorded a rise of 15%, global grain prices has also brought some on the disappointing levels recorded in the welcome relief to pig producers. first half of 2012, to reach approximately Stronger sheepmeat output, particularly Eur730 million. Trade was driven by a in the first quarter helped offset a weakenstrong increase in the value added dairy ing in lamb prices. Overall, the value of products to emerging markets. exports was 8% higher at Eur105 million,.
Beverages Beverage exports recorded further steady growth led by whiskey and cream liqueurs. For the period January – June, the value of exports is estimated to have increased by 4% to reach Eur555 million. Seafood recorded modest export growth of 2% over the period, following strong double digit increases over the previous two years. Tighter supplies across some key species and more stable prices led to exports growing marIrish dairy exports increased by Eur55 million in the first half to ginally to Eur275 million. exceed Eur1.3 billion. Weaker cereal prices offset some
Export Destinations The UK accounted for over 41% of total food and drink exports during the first half of 2013 driven mainly by higher meat and dairy exports. Exports to other EU markets recovered from a difficult period in 2012 to account for almost 33% of exports up to the end of June as increased meat, dairy, prepared foods and beverage exports boosted trade. Stronger competition from European markets resulted in a slight decrease in the share of trade with international markets; however exports to Asia recorded double digit growth increasing by 15% to reach Eur270 million. J
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
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I PIZZA
Opportunities For Retail Pizza to Expand Consumer Base The UK retail pizza market is proving resilient in the face of the continuing poor economic environment and weak consumer confidence. owever, underlying market growth has been chiefly driven by commodity inflation and the chilled pizza sector. Indeed, chilled pizza’s value share overtakes frozen last year, according to Mintel. Pizza brands have been struggling to overcome the rising popularity of retailer own-label products, which have traditionally been dominant in the chilled pizza sector but have also been gaining ground in the frozen sector, as consumers become more willing to try these products. Although more than a third of pizza buyers are guided by whatever pizza is on special offer - pizzas featuring an ‘economy’ claim tripled between 2011-12 - consumers have also shown a willingness to ‘trade up’ to higher quality products like stone baked pizzas. A recent market development has been the introduction of ‘stuffed crust’ pizzas, while ‘thin & crispy’ pizzas have continued to show strong growth. Indeed, over a fifth of consumers perceive thin crust as healthier that thick crust pizza. The two leading branded players in the UK retail pizza market are Dr Oetker (with its leading Chicago Town Pizza brand) and 2 Sisters Food Group (owner of the Goodfella’s brand). 2 Sisters Food Group is
H
a relative newcomer having only entered the frozen pizza market in 2011 following its £342 million acquisition of Northern Foods, including the Green Isle Foods pizza business. The Goodfella's brand has been fighting back with extra thin and deep pan product launches following a sales decline in 2011. However, one major branded player, McCain Foods, the creator of McCain Pizza Fingers and Micro Pizzas, withdrew from the frozen pizza market in 2012 because of poor volume sales. Sound Base Pizza is now firmly established as a staple food in the UK with high household penetration and 70% of adults using pizza. Regarded as a good value meal option by more than half of its purchasers, pizza is well placed in the present economic climate. However, pizza consumption is not benefiting from the UK’s aging population demographic – only 44% of the over-65 age group eat pizza compared to an adult average of 70%. The retail pizza market is facing intensifying competition from the pizza restaurant and delivery channel, which has grown by about 20% in the past five years. Manufacturers of take-home pizza have responded by launching takeaway style ranges and incorporating side dishes in the box. New Product Development Mintel identifies a number of tangible NPD opportunities to potentially encourage stronger volume growth of pizza and expand the user base. “These include a clear demand among parents for pizza designed for children, strong interest in gluten-free and microwaveable pizzas and – in the wake of the horsemeat scandal – an appetite for British-sourced meat in toppings, peaking among the lower usage yet
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fast-growing over-65s demographic,” explains Alex Beckett, senior food analyst at Mintel. According to Mintel, pizza manufacturers face a series of challenges to sustain long-term growth. Manufacturers need to improve the consumer health perceptions of frozen pizza, which has traditionally been regarded as inferior to chilled pizza. Retail pizza manufacturers could also benefit from copying developments within the takeaway/delivery sector and applying them to in-home pizza products. Given the heightened consumer interest in food provenance, pizza markers have the opportunity to highlight the source of the various ingredients used, such as the cheese and various toppings. Frozen and chilled pizza manufacturers also need to explore new product development areas to reinforce usage among families.
European Market In terms of volume consumption, the UK is the second largest pizza market in Europe, behind Germany but ahead of third ranked Spain. Ireland has the highest per capita consumption in Europe, pushing Germany and Belgium into second and third places respectively. The relative strength of the frozen and chilled pizza segments varies enormously throughout Continental Europe. In Germany, for instance, frozen pizza is dominant with a market share of about 95%, and likewise in Italy and Ireland where frozen pizza accounts for 85% of total sales in each country. However, in Spain the chilled segment is pre-eminent with a market share of over 80%. J
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER, 2013
I CUTTING, SLICING & DICING
International Communication Design Award For New Weber Control System he power control system for the range of T Weber slicers and infeeders has been granted a prestigious ‘Red Dot’ award in recognition of its outstanding design and simple operation for high-performance slicing lines. The Weber range, available in the UK and Ireland from Interfood Technology, is widely acknowledged as a leader in slicing technology. The Weber Power Control system, launched earlier this year at the IFFA trade show, was one of 6,800 products from 43 countries submitted to the 2013 Red Dot Design Awards, one of the world’s largest design competitions. Weber Power Control won its Red Dot in the Communication Design category, illustrating how the complexity of the Weber slicers and infeeder lines is overcome through a simple graphics-based touchscreen operating system. Jim Sydenham, Joint Managing Director
Customers at IFFA 2013 discuss the launch of the new Weber Power Control system which has now received the coveted Red Dot Design Award.
of Interfood Technology, says: “Flexibility is key to many slicing operations and the many different functions and options available in the Weber range is certainly one of its major selling points in that this allows the slicer to be configured to meet the needs
of very specific slicing criteria. However, it is vitally important that this can be achieved easily, without the technology becoming too difficult for the operators to work with.” The most important machine performance indicators are provided on screen to the operator, such as portion capacity, yield, giveaway and portion weights. The operating interface also guides the operator through pre-set trouble-shooting procedures to follow, if required, with the capability for easy adaptation of the power control system to meet customers’ specific requirements. Weber Power Control will initially be adopted on the Weber 906 slicers due for delivery early in 2014. It will then be rolled out during 2014 to the other machines in the Weber range, as well as being available as an upgrade option for the many Weber machines which are already operating in food processing applications throughout the world. J
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
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I CUTTING, SLICING & DICING
The World's Greatest Range of Food Cutting Technology Under One Roof REIF is a leading international business T in the field of food cutting technology. The company develops and builds innovative machines, production lines and systems exclusively for cutting and slicing food (slicing, dicing and portion cutting machines). With over 350 employees worldwide TREIF offers customers Industry solutions, as in slicing to a preselected fixed weight for deli meats or meat portioning bone-less or bone-in at a fixed weight. TREIF also offers solutions for shops, supermarkets and canteens. Whether for meat, sausage, cheese, bread and confectionery, for cutting cubes, strips or slices, TREIF has got an answer for every application. TREIF maintains four highly specialised Competence Units, which combine the world's greatest range of food cutting technology under one roof: Dicing, Portion Cutting, Slicing and
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Bread Cutting. One of the innovations is the portion cutting machine FALCON hybrid fresh meat edition. The machine specializes in slicing fresh beef and pork (boneless or
FALCON hybrid fresh meat edition.
bone-in) to an exact weight or to a set thickness. The 4D camera system for measuring the products joins forces with topspeed computer technology which is the basis for yield-optimised slicing.
TREIF UK’s new premises.
Welcome to TREIF UK
Since the acquisition of TREIF UK, by TREIF Maschinenbau GmbH in Oberlahr Germany, there has been a huge investment in the UK, TREIF UK’s team is now operating from a first-class new facility, to provide the very best levels of service to customers, old and new. TREIF is holding an open day on the 12th of September, at the new 14,000 sq ft premises with a state-of-the-art temperature controlled food cutting centre. All customers and potential customers are welcome from 09.30 onwards on the 12th of September to see the live demonstrations. For further information, visit www.treif.com. J
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
I
SOUPS, SAUCES & READY MEALS
Campbell Soup Company to Sell European Business S-based Campbell Soup Company is in final and U exclusive negotiations for the potential sale of its business in Europe to private equity firm CVC Capital Partners. CVC has made a firm offer to purchase the business incorporating Campbell’s national brands of soups, sauces and simple meals, including Liebig and Royco in France, Erasco in Germany, Bla Band in Sweden and Devos Lemmens and Royco in Belgium. The proposal also includes the sale of four plants in Puurs, Belgium; Le Pontet, France; Lubeck,
Denise Morrison, president and chief executive of Campbell Soup Company.
Germany; and Karpalund, Sweden. The proposed transaction does not include the export of Pepperidge Farm products throughout Europe or Campbell’s products in the United Kingdom or the Middle East or Africa. It also does not include Kelsen Group, which will continue its operations in Denmark and the export of its products to countries in Europe and throughout the world. Campbell Europe is headquartered in Puurs, Belgium and employs around 1,300 people. In fiscal 2012, the business generated annual net sales of approximately $530 million. Steven Buyse, senior managing director of CVC Capital Partners, says: “Campbell Europe is a strong business with iconic brands, experienced management and dedicated employees. CVC is committed to successfully growing the business further and to supporting its leading brand portfolio.” The transaction is subject to the information and consultation of employee representatives and to the clearance by the relevant European competition law authorities. Campbell anticipates that the proposed sale would be completed in the first quarter of its fiscal 2014. J
CVC has made an offer to acquire certain
European
activities
(excluding the UK, Ireland, Middle East and Africa activities) of the Campbell Soup Company.
Convenience of Ready Meals Irresistible For UK Consumers ccording to ‘Ready Meals 2013’, a new A Market Report Plus by market intelligence firm Key Note, the UK market grew by 5.7% in 2012. This was due to continued demand for convenience foods and product innovation. The UK has one of the most advanced ready meals industries in the world. It is made up of two principal sectors - chilled and frozen. Chilled ready meals account for more than half the market. Moreover, the sector grew at more than twice the rate as frozen ready meals in 2012. Nevertheless, its growth rate slowed in 2012, while that of frozen ready meals accelerated. Chilled ready meals have traditionally been perceived to be of better quality than their frozen counterparts. However, efforts by manufacturers are gradually changing this trend. In addition, the lower cost of frozen ready meals appeals to cashstrapped consumers who are prioritising value. Flavour is playing a major role in maintaining market dynamism. New recipes
recent times. In January 2013, the ready meals industry was rocked by the horsemeat scandal. Nevertheless, Key Note expects that the ready meals market is set to make a full recovery. Although it is forecast to decline in value in 2013, it is expected to return to growth in 2014 and is likely to supersede its pre-horsemeat scandal value by 2015. Overall, between 2013 and 2017, the ready meals industry is forecast to rise by 20.2%. J and dishes inspired by various ethnic cuisines are being launched into the market. Consumers are eager to try the latest ready meals and manufacturers want their products to stand out on saturated retail shelves. Moreover, there is a niche in the market for children's ready meals. There is also a demand for healthier ready meals as part of a balanced diet. Vegetarian options, Free-From variants and ready meals made with natural ingredients have all been introduced in
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER, 2013
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I SOUPS, SAUCES & READY MEALS
Dramatically Reduce Processing Times With PDXTM Reactor - Process 1000KG of Tomato Sauce in 6 Minutes ramatically reduce cooking/processing D time for soups, sauces and ready meals whilst at the same time improving quality. The PDXTM reactor can mix, heat, induct powders, pump and homogenise simultaneously with unequalled performance. Since Olympus Automation’s acquisition of PDXTM in April 2013, the results have been quite staggering: • Greencore have been able to double sauce output, producing 10 batches in the same time it took to produce 5. • RF Brookes have realised improved product quality, increased throughput and reduced energy costs. • Larco Foods have reduced production time for their soups and sauce by more than 50% • Health benefits are generated from the improved mixing process that allows certain ingredients such as salt to be reduced with zero taste difference.
because of the highly demanding nature of the food industry; the PDXTM Reactor is a step change in the production of soups sauces and ready meals. Greencore have made substantial savings by using the PDXTM reactor; 10 batches can be produced in the time it used to make 5 with significant labour savings. Furthermore, compared to traditional methods, the PDXTM Reactor has a very high rate of energy transfer and energy consumption has been reduced by up to 40%, realised at R.F. Brookes in the production of ready meals and sauces. “PDXTM technology has made a substantial difference in improving our efficiency of sauce production. We are typically producing 10 batches in the time it used to take 5 with significant labour savings,” says Martin Tranmer, Group Engineering, Greencore. Increased Quality
How It Works
The PDX TM Reactor is essentially an extremely advanced steam injector cooker. It can be used in the production of water based liquid food products such as soups, sauces and ready meals. For cooking sauce and soups in a vessel, a PDX TM Reactor would be situated on a lance within the vessel and controlled via the Plc. Steam is injected into the reactor and due to the contouring of the reactor; a supersonic vortex is created that sucks ingredients through; heating and mixing simultaneously at incredible speeds. Using the PDXTM Reactor 1000kg of bechamel sauce can be made in 17 minutes, or 1000kg of Tomato Sauce in 6 minutes with no requirement to pre-slurry ingredients such as starch or gum, there is also no requirement for external homogenisation. Other sauces such as sate and ready meal mixes can also be processed. The fast processing times and superior mixing leads to savings in a number of key areas for food producers. Exceptional Efficiencies
Food producers are consistently searching for greater efficiencies
A major issue in traditional production methods is that meat and vegetables chunks in ready meals and sauces are damaged and become mashed and squashed. The PDXTM Reactor has no moving parts so a superior particulate integrity is achieved for soups and sauces containing fruit, meat and vegetables. Additionally, with a PDXTM Reactor there is no product burn on as there are no contact heat surfaces, meaning sauces taste better and cleaning time is significantly reduced. At one of the largest seafood companies in Japan producing bechamel sauce cleaning down-time was reduced to single
figures thanks to the elimination of burnon. Ingredient Reduction
Superior mixing and direct entrainment into the In-Line PDXTM reactor allows for the reduction of ingredients as all powders are fully integrated into the fluid and simultaneously mixed, heated and homogenised. Rather than having clumps of powders such as flour or gum, all are integrated evenly and fully homogenised. There are obvious economic benefits to ingredient reduction but health benefits can be achieved with reductions in ingredients such as salt. As high salt consumption has been recognised as a major world problem, because of its links to heart disease, this presents a major selling point for producers and retailers. “We have also seen an increase in the flavour profile of our product which will lead us to the possibility of reducing ingredients such as salt, spices and flavour enhancers making our products healthier for our customers,” says Jan Kusters, Manufacturing Director, Larco Foods. Health Benefits
Global health officials have called for a 30% salt reduction target, and given the increased consumer reliance on ready meals, soups and sauces, the food industry has been put under increased pressure to reduce salt content of products. The PDXTM Reactor gives the opportunity to maintain the taste that consumers have come to expect whilst at the same time reducing the amount of certain ingredients. For further information on the innovative PDX TM Reactor and its applications in food, please visit www.olympus-automation.co.uk or call +44 (0)1733 394700. J
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
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I FLOORS, WALLS & CEILINGS
The Importance of The Right Floor he floor you select for your hygienic T manufacturing or processing environment is critical as it provides the base on which everything you manufacture is made, therefore if you specify and have the best flooring system installed then it will give you many happy years of service life and can minimise future disruption to your manufacturing operations if there is a failure. Kemtile have been installing food grade floors and drainage for the food and drinks industry for over 30 years. They know and
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understand the industry and its constraints and undertake new build contracts as well as refurbishment and shutdown work. The two most suitable types of flooring systems are heavy duty polyurethane resin floor screeds which have been specified by the food industry and are still highly regarded for food production areas. Properties include - wide range of colours; good antislip properties; good drainage and excellent thermal shock and resistant to chemicals. The other is an industrial ceramic floor tiling such as Argelith of Germany. These are fully vitrified, 18mm thick and are pressed to provide tight tolerances and low water absorption. They are available in a hexagonal or rectangular shape and come with various surface finishes. But the tiles are only one part of the installation story which is critical. Kemtile install all their tiles using the Kagetec sonic vibration method in a bonding or epoxy bed. This ensures a strong adhesion to the base mater-
ial; provides a very level hard wearing monolithic floor, resistant to temperature changes and chemicals. It is also easy to repair. Kemtile also install Wiedemann-Technic stainless steel drains and channels. Protectorseal hygienic wall and ceiling cladding. Kemtile now have an office in Eire in Cork so call 0861716856 for a quote or visit their web site www.kemtile.co.uk or ring +44 (0)1925 763045. J
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
I FLOORS, WALLS & CEILINGS
FloorTech® – Achieving Exceptional Results on Hygiene, Safety and Production Timeframes of the key challenges for any “is One food and beverage manufacturer total hygiene monitoring,” says Tony Lehane, MD of FloorTech® International. Based in Cork, Ireland for over 20 years, FloorTech® boast an impressive list of food and drink clients including Danone, Dairygold, Lakeland Dairies, Dawn Meats, Diageo, Bulmers, Heineken and Kerry Group. “FloorTech’s® range of Trazcon® PMMA flooring systems have achieved astonishing results in recent, on site, ATP testing,” says Sean Walsh, Technical Director. He explains: “Following surface cleaning and sanitisation, plant walls and floors will usually look clean, but are they free of all microorganisms and residues? The answer is probably not. This is why ATP (Adenosine Tri-Phosphate) testing is being widely adopted by most of the major food and beverage manufactures as a check on cleanliness. FloorTech achieved these superior test results because our Trazcon® PMMA flooring systems have closed-pore and seamless finishes that will not allow the proliferation of fungus and bacteria.” “Another key challenge for the food and beverage industry is to try and minimise downtime for our clients,” says Tony Lehane. “FloorTech® is also leading the way on this one as our Trazcon® Décor systems cure in just one hour. Our clients are amazed by the results compared to traditional flooring systems where production may be down for anything between seven to ten days. We are continuously completing contracts for large food and drink manufacturers where we prep the area on day one, we install the floor that night and the client has full access the next morning to a fully cured and finished floor.” And plans for the future? “FloorTech® is committed to continuous R & D that not only meet but anticipate future client challenges for the food and drinks industry,” replies Tony Lehane. FloorTech ® currently has offices in the Republic of Ireland, Northern Ireland and the UK. For more information please contact their Head Office in Cork, Ireland, Tel: +353 (0) 21 435 1560, Email: info@floortech.com ATP testing. or visit www.floortech.com J FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
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QUALITY
& HYGIENE
Is Stainless Steel the Answer to Improving Public Attitudes Towards Food Hygiene? ith the latest results from the FSA’s W Public Attitudes Tracker having just been published for May 2013, now more than ever it’s clear that food safety issues are a major worry for the public. As in previous waves of the biannual tracker, the top two food safety issues concerning respondents were food hygiene when eating out (40%) and food poisoning (30%). Couple these general concerns with the fact that food health scares are becoming more frequent in European headlines, and it’s no wonder there is a lead to calls for increasing regulation in the industry. So what can hard-pressed manufacturers and processors in the food and drink industry do to ensure problems don’t occur in their supply chain? A great starting point is to get the basics right and make sure that all food contact materials are fit for purpose; being hygienic, durable and easy to clean. Unsurprisingly, stainless steel is the material of choice.
Knee operated two station wash trough sink with fixed pedestal.
Steve Mallett, managing director at Teknomek - the UK’s leading manufacturer of stainless steel hygiene furniture and equipment - says there's never been a more important time to pay attention to good hygiene. “Amidst recent shocking news concerning poor hygiene in food and drink establishments, maintaining strict hygiene standards is a vital practice in gaining, and keeping, customers’ trust,” Steve says. “In environments such as kitchens, the 36
Teknomek desk standing computer console.
advantages of using stainless steel are huge. In particular, the ease with which stainless steel products and furniture can be kept spotlessly clean ensures that bacterial contamination is kept to an absolute minimum,” he explains. With hygiene at the heart of Teknomek, the company’s standard 304-grade stainless steel, with a self-healing film, is an essential material in preventing contamination. Alongside nickel, this film - a protective layer of chromium oxide - allows any surface to retain its hygienic properties even when damaged. “There’s stainless steel and there’s stainless steel,” says Steve, “we only use 304 and 316 grade, so customers know they’ll get quality corrosion resistance with products that’ll deliver great service for many years.” Despite the recurring media activity on food safety, there are no specific European or UK regulations for the use of stainless steel in the food industry. However, the FSA, in partnership with local authorities, is rolling out the national Food Hygiene Rating Scheme in England, Wales and Northern Ireland and the Food Hygiene Information scheme in Scotland. The schemes encourage businesses to improve hygiene standards, with the overarching aim being to reduce the incidence of foodborne illness. Teknomek is a member of the British Stainless Steel Association and also follows guidelines produced by the European Hygienic Engineering & Design Group (EHEDG), a consortium of equipment manufacturers, food industries, research institutes and public health authorities. EHEDG’s prin-
cipal goal is to promote safe food by improving hygienic engineering and design in all aspects of food manufacture. For Teknomek, this means ensuring all products are designed for ease of cleaning and manufactured with hygienic TIG welds. During production, great care is taken to protect all surfaces to ensure there are no pits or scratches that could lead to future hygiene problems, with all cut edges are deburred and polished. “If the grade of stainless steel is correctly specified for the application, corrosion shouldn’t be encountered. Surface finish and condition is very important to the successful application of stainless steels. Smooth surfaces not only promote good cleansibility, but also reduce the risk of corrosion. Stainless steel is naturally hygienic as it has an inert surface and can be cleaned easily,” Steve says. Continuing, he stresses the additional benefits from using a British supplier: “The ‘Made in Britain’ tag isn’t about patriotism, it’s about practicality – from order and manufacture in our Norwich factory to delivery in the UK will be no more than 5-10 days, with low transport costs.”
Teknomek static table with multi bar shelf.
Teknomek’s standard range comprises over 1,500 products covering personal workplace, mobile and static storage, waste bins, dispensers, sinks, wash troughs and taps. A bespoke service is also available from its inhouse design service. The company’s experienced customer service team is always on hand to advise either over the phone or in person, to ensure that customers get the most cost-effective high quality stainless steel solutions to meet their hygiene requirements. For further information contact Teknomek on Tel +44(0)1603 788833 or visit www.teknomek. co.uk/www. teknomek.fr. J
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
QUALITY
& HYGIENE
I HYGIENIC PLANT & EQUIPMENT
New ASPEN Stainless Product Innovations – Anti Backflow Valves SPEN Stainless, which is part of Canal Engineering, has A designed and manufactured stainless steel solutions for drainage systems to eliminate foul water and debris returning back up a drainage system and into a working environment, providing a hygienic and clean room environment. ASPEN has released an innovation of the anti backflow valve. The latest innovation of a polypropylene ball valve works with the differing water level in the outlet. When a blockage occurs along the drainage system the rising water and debris floats the ball to connect with the chamfered opening of the stainless steel valve sealing the outlet subsequently indicating a blockage down stream.
Recently installed in a food and drink industry facility where hygiene is essential, the anti backflow valve is working to its full potential providing manufacturing with a safe, clean and hygienic working environment from day to day. Further to this latest innovation, ASPEN Stainless has designed a full range of anti backflow valves that are suited to the specific requirements of a drainage system; • Anti backflow Gully to replace existing gullies • Vertical anti backflow valve that suits existing ASPEN Outlets • Anti backflow valve attachment to fit onto existing pipework • In-line valve to suit new and existing drainage systems • Valve fitment at the end of new and existing channels. Canal Engineering has a heritage of design innovation, quality manufacture and efficient installation that stretches back to its formation in 1924. Canal Engineering incorporates four separate divisions - CANAL Architectural, specializing in innovations in metalwork and fabrication, ASPEN Stainless, a supplier of hygienic plant and equipment, AJAX Safe Access and IMPERIAL Contract Services. J FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
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I
BREAKFAST CEREALS
Bright International Outlook For Weetabix Now part of Bright Food Group of China, Weetabix Food Company is accelerating its international growth while consolidating its position within the UK breakfast cereals market. perating manufacturing sites at Mutually Beneficial Kettering, Corby and AshtonThe acquisition is mutually beneficial under-Lyne in England, Weetato both parties. It provides Bright Food bix is the second largest branded with access to a trusted brand to reasplayer by value in the UK ready-to-eat sure Chinese and Asian consumers cereals and cereal bars market. In addiabout food safety and quality. Weetabix tion to the market leading Weetabix benefits from having immediate access brand, the company’s portfolio also to the vast Chinese market and particuincludes household names such as larly the growing middle classes through Weetaflakes, Oatibix, Oatiflakes, Bright Food’s nationwide distribution Seriously Oaty, Ready Brek, Weetos and network. Alpen, the leading UK muesli brand. “The Weetabix brand will have access To complement its strong brands portto all of Bright Food's distribution folio and market position, Weetabix is channels, including our more than also the second largest manufacturer of 100,000 retail outlets, which will allow own label cereals for retailers in the UK. it to be brought to Chinese households Weetabix has developed a strong intermore quickly,” says Wang Zongnan, national presence with operations in Weetabix is continuing to invest in new product development chairman of Bright Food. Of course, North America, South Africa, Germany activity, such as the launch of Weetabix Golden Syrup. Bright Food will make some changes or and Spain, and exports to more than 80 adjustments to ensure that Weetabix is countries around the world. Weetabix was launched in 2010, and Kellogg with its more palatable to Chinese consumer employs about 1,800 people worldwide. Nutri-Grain range introduced last year. tastes. Indeed, the deal has resulted in New Product Development International Expansion exchanges between the two companies on Like other UK breakfast cereals manufac- Weetabix is now majority owned by Bright technology research and development, turers, Weetabix has had to contend with Food. The Chinese group purchased a 60% including cooperation in personnel trainrising raw material prices, which have stake in Weetabix from private equity firm ing and product development. undermined profit margins, and a highly Lion Capital in May 2012. The deal, which Giles Turrell, Weetabix chief executive, competitive market-place. Weetabix has includes a provision for Bright Food to says: “While the company's focus has been responded by maintaining a tight control acquire full ownership in two years, valued on reinforcing and building on our leadon costs while continuing to invest in new Weetabix at £1.2 billion. ing position in the UK, I believe there are product development activity, such as the The acquisition has provided Bright also substantial opportunities to further launch of Weetabix Golden Syrup. Made Food with entry into the UK and other grow the business internationally, in with 100% wholegrain wheat, Weetabix global food markets. Indeed, the transac- North America, Asia and beyond.” J Golden Syrup, which is high in fibre, low tion marks the largest overseas in salt and fortified with vitamins and Iron, acquisition by a Chinese comwas voted Product of the Year in the Cereal pany in the food and beverage category for 2013, by Woman’s Own mag- sector. azine. The deal reflects Bright Earlier this year, Weetabix entered the Food’s strategy of buying UK breakfast biscuit category with the famous international brands, introduction of its On The Go range with developing advanced technolthree variants - Milk & Cereal, Apple with ogy and taking strong competa hint of Cinnamon and Fruit & Fibre - itive positions in each of its supported by a £6 million media support markets. Bright Food is comcampaign including national TV advertis- mitted to driving forward the ing, PR, sampling and digital activity. global growth and success of Weetabix has now joined other internation- the Weetabix business, with a al groups Mondelez International (formerly focus on the potential in Asia Weetabix has entered the UK breakfast biscuit category with the introduction of On The Go. Kraft Foods) with its Belvita range, which and, particularly, China.
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FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER, 2013
Weetabix Signs New Four-year Deal With LPR he UK’s best-selling cereal brand, T Weetabix, has signed a new four-year deal with Europe’s second largest pallet pool operator, LPR. The contract extends the existing three-year working relationship and will ensure Weetabix’s cereal products continue to be transported on LPR’s distinctive red pallets – more than 850,000 pallet movements per year.
LPR’s ability to tailor its service to customer needs was a key factor in extending its contract with Weetabix. As part of the initial deal in 2009, LPR set up a pallet processing facility at Weetabix’s Burton Latimer depot. LPR invested £160,000 in the site in late November 2011, increasing capacity for sort and repair to more than 25,000 pallets per week. A Weetabix source comments: “We are very pleased to be extending our contract with LPR. Their business model, which uses the same logistics provider as we do, enables transport optimisation, as the pallets are returned to the on-site sort and repair facility. In addition, pallet quality is consistently high.” Jane Gorick, managing director at LPR UK, adds: “LPR prides itself on its flexibility, adapting its services to meet the individual needs of its customers. Indeed, the
Jane Gorick, managing director at LPR UK.
growing number of blue chip FMCG clients such as Weetabix, committing to LPR demonstrates that our approach of flexibility, quality and reliability is essential in the modern business environment.” J
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
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I BEVERAGES
Drinktec – The ‘World's Leading Trade Fair For the Beverage and Liquid Food Industry’ rinktec 2013 takes place at the Messe D Munchen exhibition centre in Munich, from September 16th to 20th. Drinktec is
• Restaurant and catering equipment, supplies and mobile facilities.
the most important trade fair for the sector, where manufacturers and suppliers from all over the world - global companies and SMEs alike - meet up with all sizes of producers and retailers of beverages and liquid food products. Drinktec 2013 is expected to attract around 1,400 exhibitors from over 70 countries and approximately 60,000 visitors from more than 170 countries. Within the sector drinktec is regarded as the number one platform for launching new products on the world market. At this event manufacturers present the latest technology for processing, filling, packaging and marketing all kinds of beverages and liquid food - raw materials and logistics solutions included. The themes of beverages marketing and packaging design round off the portfolio.
Supporting Program Drinktec has much to offer, not just in terms of the presentations by the exhibitors. For example, brand new in 2013 is ‘The Innovation Flow Lounge’, a networking platform for discussing ideas and trends in beverages marketing. And in the drinktec Forum, insiders will be talking about current themes in technology, markets and marketing. Also, visitors to drinktec can have a ringside seat when the European Beer Stars and the World Champion Beer Sommelier are announced.
Exhibition Areas Drinktec 2013 will incorporate the following exhibition areas: • Process technology for the production / processing of beverages, milk and liquid food • Filling and packaging technology • Process automation, engineering, control and IT solutions • PETpoint (PET technology for beverages and liquid food) • Containers, packing materials, equipment and closures • Raw materials, agents and additives • Energy systems, water and waste water • Marketing 40
Innovation Flow Lounge The new networking platform aims to bring marketing experts and technology specialists together in conversation, and to provide marketing themes with a forum at drinktec. Various formats for discussion and action are being organized to promote communication and exchange. On each of the four days of the show, there will be a different theme at the Innovation Flow Lounge: Drinktec Forum What does the future hold in the world of beverages and liquid food, not just in terms of technology, but also marketing? Answers to this will be provided in the drinktec Forum in Hall A2. The first day of the show is dedicated to beer. The question being asked is: Which way forward for breweries? Other theme days take the subjects of packaging, nutrition, hygiene and product quality. Special Area New Beverage Concepts This is an absolute must for product developers and marketing experts from breweries, soft drinks producers, SMEs, dairies and liquid food manufacturers. The ‘Special Area New Beverage Concepts’ in Hall B1 is an interactive marketplace where experts from the manufacturers will be presenting and explaining new sweetening, coloration and aroma strategies. Integrated into this platform is a catering area where innovative drinks can be tested on the spot.
The "Special Area" is presented and clearly marked in the section where raw materials, additives and agents are on show. European Beer Star This top-ranking competition attracts the very best beers from all over the world. The only condition of entry is that the beers must have their origins in Europe. From more than a thousand entries, a jury of 100 beer experts and sommeliers from around the globe select the ones that appeal most to their taste buds. Beverage Innovation Awards @ drinktec In 2013 the Beverage Innovation Awards will once again be presented at drinktec, as was the case four years ago. A total of 27 prizes will be presented in six categories (Drinks, Brands and Business, Ingredients, Packaging, Sustainability, Marketing and Communication). Brewers Meeting Point/Craft Brewers Lounge At drinktec, brewers and all those interested in beer have two real hotspots for communication, exchange and contacts and for tasting beers from all over the world. The first is the Brewers Meeting Point in Hall B1, held in cooperation with the Bayerischer Brauerbund. One of the attractions here for visitors is the chance to take part in exclusive sampling sessions. And the second is the Craft Brewers Lounge in Hall A5. Here European brewers can meet up with and engage in discussions with members of the US Brewers Association. J
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
HALL B3 STAND 402
Plastic Technologies, Inc.
Are you faced with packaging challenges you aren’t exactly sure how to solve? Do you know how your packaging decisions are impacting the environment? Would you like to be better able to project shelf-life for your products? Do you need a trusted and experienced testing service provider? Can your employees benefit from training on a broad variety of packaging subjects? For the past three decades, Plastic Technologies, Inc. (PTI) has been recognized worldwide as the preferred source for plasticbased packaging development. Brand owners and suppliers partner with us to create commercially-viable, marketdifferentiating packaging containers at an accelerated pace. Our extensive “concept to commercialization” process includes package design, rapid prototyping, material evaluation, testing, etc. The company is also a global leader in recycling studies and the use of recycled materials for packaging applications. Its state-of-the art pilot production and testing capabilities, coupled with PTI’s technical knowledge, enables the company to offer package development services which are unrivaled. Its confidential approach to every project insures that projects details stay private. Please let us know if we can provide assistance through our Yverdon-les-Bains, Switzerland or Holland, Ohio, U.S. state-of-the-art facilities.
Switzerland United States +41 24 423 9530 +1 419 867-5400 info@plastictechnologies.com http://www.plastictechnologies.com/ FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
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I BREWING
Engineering Growth at Box Steam Brewery Family owned and run Box Steam Brewery is exploiting the opportunities presented by the growing popularity of craft beer in England and abroad. ox Steam Brewery recently reported its busiest month ever, having racked up its first series of consecutive 50 barrel brews. The craft brewery is now producing enough beer to fill around 2000 casks of ale each month. The enterprising brewer has also recently rebranded its bottled beer range (see Panel), launched a new fine, dining beer and is introducing a new seasonal ale for the Autumn.
B
run two popular local free houses - the Cross Guns at Avoncliff, and the Inn at Freshford. In order to keep pace with escalating demand, the brewery moved to new, larger premises in Holt, near Bradford-onAvon, in December 2011. Increased Production The move has allowed Box Steam Brewery to significantly increase production of its handcrafted real ales such as Tunnel Vision and Derail Ale; and was prompted by impressive year on year sales growth since the company was first established in 2004. The extra capacity is supporting the company’s ambitions for continued growth and has enabled it to drive greater distribution across the UK - and particularly in the South West. Reflecting the quality and originality of
its products, Box Stream Brewery has won a string of awards for its beers over the years, gaining recognition in both the UK and overseas markets. The company’s CAMRA and SIBA multi-award winning beers are delivered throughout Wiltshire, Somerset, Bristol, Gloucestershire and Oxfordshire. Whilst the local market is the most important to the company, it has also developed overseas sales. Box Steam Brewery is now exporting its Premium Ales to, amongst others, Canada, Cambodia, Taiwan, Albania and Australia in response to growing customer demand. Only its bottled products are currently being exported but Box Steam Brewery is also looking at ways to make its beers available in draught internationally. J
Full Steam Ahead
Box Steam Brewery produces artisan, handcrafted real ales, available in both bottle and cask. The inspiration for the beers is taken from Isambard Kingdom Brunel, the famous 19th Century engineer. Not only did he design and build the Great Western Railway from London to Bristol and the Box Tunnel near the original brewery site, but also several other famous local landmarks including the Clifton Suspension Bridge. This sense of local heritage is very important to Box Steam Brewery in marketing its beers. Founded in Wiltshire in 2004, the regional craft brewer was acquired in 2006 by the Roberts family who also own and 42
Over the past few years, packaging specialist Chesapeake Bristol has honed its services to the independent brewery market, building a large client base and a coveted reputation for quality and innovation. The latest brewery to benefit from the site’s dedication is Box Steam Brewery, a successful brewer based outside Bath. As Box Steam Brewery increased its presence in Tesco and Majestic Wines, the brewer needed a brand refresh that would create wider appeal, increase recognition and – ultimately - boost sales. Box Steam Brewery worked with Bristol-based marketing agency, Different Kettle, to re-invigorate the look of its brand. They wanted to maintain the brewer’s identity of hand-engineered artisan beers inspired by the genius of Brunel whilst creating a suite of materials that stood out on the shelves. The Box Steam Brewery logo reflects the Brunel inspiration - featuring his top hat with a rising plume of steam. Along with the logo, each beer was assigned a specific colouR - differentiating each individual product whilst making it clear they are part of a family. The new branding allows the consumer to make an informed purchasing decision and build loyalty to Box Steam Brewery. Martin Usher, business development manager at Chesapeake Bristol, says: “We were able to advise Different Kettle on the various print and finishing techniques available to them so the new labels delivered maximum shelf impact. We achieved this by using contrasting varnishes and exacting print quality.” Kevin Newbold, marketing director at Box Steam Brewery, says: “This was a radical step for us. Making a decision about changing what has been a successful brand is never easy - especially for a small, independent brewer. But we were delighted with the entire process: the technical advice from Chesapeake, the design input from Different Kettle and, of course, the final product.”
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
I DAIRY
Greek Phenomenon Stirs Up the Yoghurt Market Europe’s major yoghurt manufacturers are targeting the fast growing US market but face stiffening competition at home.
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n contrast to the mature European market where sales growth has slowed and the major branded players are facing rising competition from private label products, the US yoghurt market is expanding rapidly, part fuelled by the phenomenal growth in popularity of Greek yoghurt. Indeed, strong growth in the US market is expected to continue well into the future as US per capita consumption of yogurt is generally less than half that of Europe. UK Market The UK yoghurt market grew by 5% in 2012 to reach sales of £1.8 billion. Growth has been driven by the increasing health consciousness of consumer, innovation with the introduction of a stream of new flavour varieties and the rising popularity of functional foods. The UK yoghurt market is dominated by overseas players – Muller of Germany and French and global food giant Danone, while Austrian dairy group NOM Dairy is a relative newcomer, having launched its first British brand in 2009 following the opening of a new £60 million production facility in Shropshire.
Danone and Muller each control about 24% of the UK yoghurt market. Muller is by far the leading brand, whereas Danone relies upon a few key brands such as Activia, Actimel and Shape. Muller has been successful in protecting its market leadership and promoting growth in the yoghurt category through investment in innovation, advertising and an emphasis on local production and natural ingredients. However, value growth in the UK yoghurt market is expected to slow as stiffening competition, characterised by widespread price promotions, undermines unit price increases. Indeed, a similar scenario exists across Europe
where economic uncertainty and weak consumer sentiment is adversely impacting on sales and profits. US Focus Major European yoghurt producers such as Danone and Muller are now looking to the US to help boost sales and profit growth. Danone is well established in the US – it ranks number two behind Yoplait (51% owned by US-based General Mills) - but has been stepping up its activity of late. For example, Danone recently entered a joint venture with Starbucks Coffee Company, the world’s leading coffee retailer. Danone and Starbucks will develop a selection of new, healthy specialty yoghurt products for sale in Starbucks stores and in grocery channels. The alliance reflects Danone’s ambition to expand yoghurt consumption in the US, and extends Starbucks health and wellness offerings under the company’s Evolution Fresh brand. A new portfolio of Evolution Fresh, Inspired by Dannon branded ready-to-eat Parfait Greek yoghurt products will be co-created by Starbucks and Danone for exclusive distribution in the US. Starbucks will offer the products through its stores in spring 2014, and Danone in grocery channels in 2015. Danone has also recently strengthened its position within the US yoghurt market and extended its offering with the acquisition of YoCrunch, the leader in the yoghurt with toppers segment. Muller entered the US market last year in partnership with PepsiCo. The joint venture business - Muller Quaker Dairy - has now opened a new $206 million state-of-the-art yoghurt manufacturing facility in Batavia, New York. The new 350,000 sq ft facility can produces approximately 120,000 cups per hour. Now producing Muller Corner, Muller Greek Corner and Muller FrutUp varieties, the new facility is serving as a national production and distribution center for Muller yoghurt. The Greek Yoghurt Phenomenon A feature of the US yoghurt market is the phenomenal growth of the Greek yoghurt sector. Greek yoghurt now accounts for more than 25% of the $4.1 billion US
yoghurt market compared to just 1% in 2007. The production process of traditional Greek yoghurt is distinctive by having a whey removal stage before fermentation. This straining process results in thick, creamy yoghurt with a high protein content. Although Greek yoghurt has a relatively high fat content, fat-free and low fat varieties have been introduced and are proving popular with health conscious consumers.
The Greek yoghurt sector in the US is now worth over $1 billion. Sales in Europe are about Eur400 million but are expected to surge as consumers are persuaded of the benefits of the product. The top two Greek yoghurt producers in the US, Chobani and Fage, have been investing heavily in new capacity. For example, Chobani recently opened the world’s largest yoghurt factory in Idaho – a 1 million sq ft facility – following investment of $450 million. Chobani and Fage are also competing with each other in the UK yoghurt market. Indeed, Chobani has intimated that it is considering establishing a manufacturing facility in the UK. Greek company Fage has been exporting its Total brand to the UK since 1983 and has dominated the Greek yoghurt sector. However, this sector is now attracting the attention of other players such as Muller, Danone (with its Oykos, and Danio ranges) and Yoplait. J
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
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I ASEPTIC PACKAGING
Steaming Up the Germs ackaging food under aseptic P conditions can also be accomplished even without the use of chemicals; namely, with a completely natural method that employs “steam aseptic” technology. The requirements that consumers place on food have changed greatly in recent years. Today’s customers are more health conscious when it comes to making purchases and place greater value on freshness. For industry this means that hygiene standards have clearly increased. Products have to be manufactured and packaged with care and maximum germ reduction and, at the same time, not suffer any loss of quality outside of the cold chain. Often methods that employ hydrogen peroxide are used for sterilization of the packaging materials. However, a technology that physically sterilizes packaging materials, ensures quality and prolongs shelf life is “steam aseptic”. The name reveals the crucial detail – sterilization is carried out through the use of steam. A natural medium, free of pollutants and available at most food manufacturing companies in any case. The steam system guarantees a germ reduction of >log4, which is equivalent to one non-sterile cup among 10,000 cups at most. The sterilizing effect is solely based on the action of damp heat. Since no additives are required, the value added in production also increases. Sterilized By ‘Saturated Steam’ Yet how does steam aseptic work? The principle is quite simple: At the first workstation the base film is sterilized at approximately 150 degrees centigrade for a short retention period by means of saturated steam – comparable to the direct action of an UHT unit – and then passed on in a
sterile tunnel with sterile excess air pressure. Successive preheating of the base film then takes place over several machine cycles as well as deep-drawing into a water-cooled form by means of servo-driven pre-forming stamps and compressed air and filling of the cups. The cover film is likewise sterilized by means of saturated steam before the cups are hermetically sealed. Only then does the chain of cups leave the sterile tunnel. During the entire process the temperature, pressure and process times are constantly checked and stored in the control system in a manner that is reproducible. Apart from sterilization of the packaging materials and the closed path through a sterile tunnel the dosing units also fulfill all of the aseptic requirements so that complete sterility is ensured. Thus, for example, the machines are equipped with Cleaning-in-Place dosing (CIP) for fully automatic cleaning without disassembly. Then Sterilization-in-Place (SIP) is used, which ties in the CIP process with general sterilization. For the greatest possible product flexibility dosing systems are used that make it possible to fill several components such as, for example, for whipped pudding or different flavors in respective 100 ml cups per work cycle. All of 100,000 Cups per Hour One aim in particular was kept in mind with development of the steam aseptic machines; namely, creation of a technical solution to meet user requirements with the
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greatest efficiency and profit maximization for customers. In order to achieve this the machines in the TAS series (“Thermoforming Aseptic”) cover all of the required capacity ranges. Depending on the cup size, machines are available with between 6- and 48-fold format design. With a machine cycle rate of up to 40 cycles per minute a packaging output of approximately 14,000 to 115,000 cups per hours is possible. In addition, engineers constantly develop further improvements, particularly with regard to increased operating safety, including for packaging materials sterilization. A current example of this is provided by the extensive investigations that employ flow simulation and aim at optimum introduction of the medium into the steam chamber, precise distribution and the best possible operation for even greater productivity. OYSTAR Hassia is a globally operating company in the OYSTAR Group. The
company develops and designs high-quality forming, filling and sealing machines (FFS), including the TAS series. OYSTAR Hassia is the only supplier of cup forming, filling and sealing machines that is able to employ steam aseptic technology and uses such a system. Various independent institutes have already confirmed the safe aseptic operation of all TAS machines designed and built in accordance with 3A specifications; among other things, with several FDA (Food and Drug Administration) approvals in the USA. For further information visit www.oystar.hassia.de. J
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
New Premises Continue the Riggs Autopack Success Story taff at Riggs Autopack have S started work in their impressive new factory in Nelson, Lancashire, following the company’s move across town. The company, which is part of the Fort Vale Group, has re-located from Southfield Street to Premier Mill, Brunswick Street. Established in the 1930’s, they manufacture high quality depositors and filling machines for the food production industry. They supply food producers of varied type and size with clients ranging from start-up companies and cottage industries, through to multi-national groups and international factories. Over the years, Riggs Autopack's equipment has improved the production processes for a large number of food manufacturers, and helped them meet growing demand for their goods. The Lancashire firm take great pride in their machine range and excellent customer service. They are a Rolls Royce plc approved supplier, member of the PPMA, and a proud ISO 9001:2008 registered firm with BenchmarQ Gold customer satisfaction accreditation. In 2011 and 2012 they received two highly prestigious awards, that being Company Of The Year and Industry Excellence by Business and Industry Today.
Providing a friendly and professional service, they employ an experienced and highly skilled team of 28 staff encompassing sales, design, production, research and development, parts supply, service and maintenance. The move gives Riggs Autopack, the room to further expand, win new orders, and potentially recruit more personnel in key areas. The new unit, which covers 50,000 square feet, has been specifically refitted throughout by The Fort Vale Group for Riggs Autopack’s use, with the installation of new offices, meeting and exhibition rooms, training area, shop floor production, product testing and machine demonstration. A new Mori Seiki CNC lathe with ‘Y’ axis has also been purchased and installed to
help Riggs Autopack manufacture complex components, and extend their work with some of the biggest names in the food industry on a national and international level. Riggs Autopack has become a UK market leader with an excellent reputation, and already a preferred supplier to Kerry Foods. They are hoping to secure further similar agreements by providing high quality food production equipment to accurately fill a huge variety of container types and size with liquid, semi-liquid and suspended solid products. “Having more manufacturing space will allow us to further expand and bring some of the sub-contracting work back in-house that we’ve previously put out in the past,” explains Riggs Autopack General Manager Nigel Matthews. “By doing this, it will allow us to create jobs and employ more people from the local area.” He adds: “Riggs Autopack is a people and team driven company, and it’s due to the right people being recruited in the right departments that we owe our success.” For further information contact Riggs Autopack on Tel +44 (0)1282 440040, Email info@autopack.co.uk or visit www.autopack.co.uk. J
Skanem Bags Many Prestigious Awards at FINAT 2013 kanem has won a total of three awards, S and received 12 commendations in the 33rd Label Awards competition, held at FINAT 2013. The FINAT 2013, Annual Congress was held in the second week of June, in Munich. 52 companies from 29 countries worldwide participated, and a total of 245 entries were submitted. The Awards were judged by an international and unbiased jury. At the FINAT congress, Skanem Scandinavia was also handed the ‘Honorable Mention Award’ for ‘Excellence in Technical Achievement in Printing’. This was awarded to Skanem Scandinavia last year at the World Label Awards. Skanem President and CEO, Ole Rugland says: “Congratulations to Skanem Scandinavia and Skanem Poznan for the
awards at FINAT 2013. I would also like to congratulate Skanem Liverpool and Skanem Willich, for being nominated in several award categories. I am proud that we have done well at the awards. This
shows that Skanem is moving in the right direction of customer focus and technical excellence.” Details of the Awards and categories are as follows: World Label Awards: * Skanem Skurup, Scandinavia for Giva Grass GTI (Honourable Mention Award for Excellence in Technical Achievement in Printing, 2012) FINAT Category Awards: * Skanem Skurup, Scandinavia for Önos Äppelmos (Category: Marketing/End-uses – Food Products) * Skanem Poznan, Eastern Europe for Buwi (Category: Marketing/End-uses – Household) * Skanem Poznan, Eastern Europe for Eveline BB (Category: Printing Processes – Non-adhesive labels/tags). J
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013
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International Strategic Alliance For KM Packaging and Ispak pecialist packaging supplier KM S Packaging Services has expanded its strategic alliance with Istanbul-based Ispak, part of the international manufacturing group Kibar Holding, to further develop the supply of confectionery and dairy aluminium foil based flexible packaging to the UK, US and Australian markets. Food packaging specialist KM has recently launched a number of new innovative solutions for lidding and luxury confectionery coupled with the recent expansion of its commercial team. Ispak, a long-established supplier of foil based flexible packaging, is a sister company of Assan Aluminium which produces rolled aluminium foil at the same manufacturing site in Istanbul. The product range includes rotogravure printed unsupported foils, extrusions and laminates and heatseal coated foils and benefits from the vertical integration of the Assan and Ispak companies on foil supply. The new alliance will maximise the two companies’ respective strengths: Ispak in manufacturing and KM in logistics, supply chain management and local technical expertise. Both companies have reputations for technical innovation and a range of international accreditations endorsing quality, environment and hygiene standards. The new link builds on an already well-established trading relationship in flexible packaging between UK food com-
panies and Turkish flexible packaging manufacturers. KM Packaging Commercial Director
Graham Holding explains: “The international confectionery market is always looking for a point of difference, a new texture or finish that will stand out on the shelf. Food manufacturers also demand rapid turnaround and, of course, top quality print and reliable production and delivery. By combining the strengths of Ispak – with whom we have partnered for some time – and KM Packaging we can easily meet the demands of key players in the UK and International markets, helping to fill the gap that has been created by the closure of other European manufacturers. “It’s not so much that there’s a ‘new kid on the block’ as our combined experience in these markets adds up to several decades. KM already serves customers - from small food companies to major corporates - across the UK and Europe and as far afield as Canada, North and South America, Australia and New Zealand. We’re just delighted that strengthening the relationship with Ispak will enhance our offering and output and enable us to effectively service an even wider market.” KM Packaging has an international reputation for product development, constantly launching innovative, high-performance new packaging products. For more information contact +44 (0) 1832 274944, email contact@kmpack.co.uk or visit www.kmpack.co.uk. J
Redpack ‘Lazy Suzy’ Outfeed aintaining their leading position as flow wrapping machine M innovators, Redpack have designed an integral Lazy Suzy rotary turntable in place of the conventional conveyor outfeed. The new turntable combined with Redpack’s latest NTS top seal flow wrapping machine has a combined footprint that saves in the region of 1 metre of valuable floor space. The power supply, turntable controls, safety guarding and emergency stop are integrated with the flow wrapping machine. According to Redpack: “Floor space is nearly always at a premium especially on Harvesting Rigs and busy Packing areas. The new NTS/Lazy Suzy flowrapper saves floor space, gets rid of trailing cable hazards and integrates operator control and emergency stop at the turntable.” For further information contact sales@redpack.co.uk or call 01603 722280. J 48
FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2013