Food and Drink Business July 2012

July 2012

Tough challenges facing Europe’s ₏956 billion food and drink industry

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C o n t e n t s

- 3 C OVER S TORY

- 53 D AIRY

Tough challenges facing Europe’s €956 billion food and drink industry.

Dairy Crest refocuses on the UK.

- 5 -

- 54 M ERGERS & A CQUISITIONS

B EVERAGES

PAGE 3

Bright outlook for squeezed European fruit juice market.

Jesus Serafín Perez, President, FoodDrinkEurope.

- 7 S USTAINABILITY

Iba 2012 - A unique opportunity for bakers and confectioners.

Iba 2012 Previews.

Mark Allen, ceo, Dairy Crest.

R EGULARS

Coca-Cola Hellenic cuts CO2 emissions with advanced energy efficient power.

- 9-15 B AKERY & C ONFECTIONERY

Coverage of British and international deals.

P AGE 53

Energy & Environment. . . . . . . . . . . . . . . 8 Processing & Manufacturing . . . 11-16, 25-31 PAGE 5

Andrew Biles, President, European Fruit Juice Association.

Carlos Brito, ceo, Anheuser-Busch InBev.

Materials Handling . . . . . . . . . . . . . . . . 22 Bottling & Packaging . . . . . . . . . . . . 33-42 Logistics & Distibution . . . . . . . . . . . . 43-45

- 17 B REWING & D ISTILLING

PAGE 54

Materials & Ingredients . . . . . . . 47-50 & 56

PAGE 55

Patrick Coveney, ceo, Greencore.

Diageo investing over £1.1 billion in whisky and beer production.

Managing Director: Colin Murphy Editor: Mike Rohan Sales Director: Ronan McGlade Advertising: Susan Doyle, Neela Desai, Mark Davies and Sylvia McCarthy

PAGE 17

- 19 B REWING

Paul Walsh,.ceo, Diageo.

British brewing Renaissance at Molson Coors.

. Senior Sales Executive: Paul Lees Production Manager: Susan Doyle

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

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- 20 D AIRY Dairygold confirms €120 million phased investment programme.

PAGE 19

- 49 M ARKET F OCUS Healthy outlook for nutraceutical products.

Jim Shaw, head, supply chain strategy, Molson Coors (UK).

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FOOD & DRINK BUSINESS EUROPE, JULY 2012

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COVER STORY

Tough Challenges Facing Europe’s €956 Billion Food and Drink Industry Europe’s food and drink manufacturing industry is gradually losing ground in international export markets as its competitive position with regard to productivity and investment in R&D is declining compared to rivals in the global trade arena.

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ith a turnover of Eur956.2 billion, Europe’s food and drink industry is the largest manufacturing sector in the EU, accounting for 16% of the turnover of manufacturing in the 27 member area. It is also the largest employer within the EU manufacturing industry, generating 4.1 million jobs and many more jobs indirectly, according to FoodDrinkEurope, the body representing the interests of Europe’s food and drink manufacturers at the EU level.

FoodDrinkEurope works with European and international institutions, in order to contribute to the development of a legislative and economic framework addressing the competitiveness of Jesus Serafín Perez, industry, food quality and safety, consumer pro- Europe. tection and respect for the environment.

FoodDrinkEurope's membership consists of 26 national federations, including three observers, 26 European sector associations and 19 major food and drink companies.

Although Europe boasts some of the world’s leading food and drink manufacturers, and consolidation continues to gain momentum, the industry remains highly fragmented with 274,000 companies in operation, 99.1% of which are small or medium-sized. Indeed, SMEs generate almost half of the industry’s turnover and just under two thirds of the number of jobs.

Engine For Growth Given its scale, Europe’s food and drink manufacturing industry will play a crucial role as an engine to drive EU economic recovery through meeting the needs of the region’s 500 million consumers and by developing export sales.

“In terms of extra-EU trade, the European food and drink industry exported products to the value of Eur65.3 billion in 2010. All categories of products experienced doubledigit export growth, most notably, dairy products with a 27% increase compared to 2009,” points out Jesus Serafín Perez, who was With a turnover of Eur956.2 billion, Europe’s food recently appointed Preand drink industry is the largest manufacturing sident of FoodDrink sector in the EU. Europe for a second

term of three years. “With regard to consumption of food and drink, households spent on average 13% of their expenditure on food and non-alcoholic drinks in 2010. This is second only to expenditure of 23.2% on housing, water and energy combined.”

Declining Competitiveness However, the 2011 FoodDrinkEurope Competitiveness Report, published by FoodDrinkEurope, shows that Europe’s food and drink sector is lagging behind its main competitors. Indeed, the competitive position of the EU food and drink industry has not President of FoodDrink improved on that of previous years with regard to production value, labour productivity, investment in R&D and export market shares. “The EU is underperforming compared to its traditional competitors (such as the US) and is faced with enormous growth in production values from emerging markets (eg China),” states the report.

This dwindling competitiveness in global terms is reflected in the European food and drink industry’s shrinking export market share worldwide and rising sales of food and drink imports into Europe.

Food and drink imports into Europe were worth Eur22.2 billion in 2010, up 9.3% on 2009.

So how can competitiveness be restored given that many costs, such as energy and raw materials prices, are beyond the control of manufacturers?

“Although the EU continues to lead as the world’s largest food and drink exporter, it is true to say that the EU market share of global exports of food and drink products has been slowly declining over the last number of years (down from 20.1% in 2001 to 17.8% in 2010), mostly to the benefit of emerging economies such as Brazil, China, Thailand and Argentina,” Jesus Serafín Perez replies.

“Competitiveness can be restored by ensuring a more businessfriendly regulatory environment underpinned by a strong Internal Market within the EU, securing access to new markets through trade agreements, promoting higher levels of R&D which is then translated into successful innovations to market, enhancing labour productivity and boosting levels of production value are all necessary ‘success factors’ in order to increase the growth potential of Europe’s food industry.”

Jesus Serafín Perez elaborates: “In addition, mainstreaming sustainability in the food sector is a key way to manage the cost of energy and raw materials and to face future competitiveness challenges.

Sustainability makes good business sense for the future competitiveness of the food industry and actions and opportunities to develop more

FOOD & DRINK BUSINESS EUROPE, JULY 2012

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sustainable sourcing practices and greater resource efficiency initiatives along the food chain are outlined in FoodDrinkEurope’s recently published report – ‘Environ mental Sustainability Vision Tow-ards 2030 -Achievements, Chall enges and Opportun ities’.”

private R&D investment,” he says. “Increasing research and development (R&D) investment has crucial importance in helping Europe’s food industry move forward and to help manufacturers remain competitive worldwide.”

Key Challenges European food and drink manufacturers of all sizes are facing similar problems. Access to finance and rising costs, including agricultural raw materials, energy, and other inputs, in an increasingly volatile commodities market are two key challenges for food and drink manufacturers.

The European food and drink sector is the largest Jesus Serafín Perez points out that access to finance is particuemployer within the EU manufacturing industry. larly of relevance for SMEs within Europe’s fragmented food industry. He advocates: “The need for a better regulatory frameInvestment in R&D work and a more coherent approach to policy-making, taking into EU food and drink investment in R&D has traditionally been low account feasibility, economic impacts, simplification measures compared to other EU manufacturing industries and other coun- and competitiveness proofing, etc.” tries’ food sectors, points out the 2011 The European food and drink industry is FoodDrinkEurope Competitiveness Report. also faced with “unfair commercial practices Higher investment in R&D is required to along the food supply chain.” He adds: boost levels of innovation in Europe’s food “These are being addressed now under the and drink industry.

EU High Level Forum for a better function“According to 2007 data, R&D accounts ing supply chain, headed up by DG Enterprise and Industry of the European for 0.38% of EU food and drink industry Commission.” output. This figure on R&D and innovation A further problem is “discriminatory food indicates that food and drink companies’ taxes, which place the entire burden of obelevel of investment has been relatively stable sity and other NCDs on specific categories over the past few years, despite the economic of products. These taxes are unfounded by downturn. Out of the top 1000 companies investing in R&D in all the sectors of the Europe’s food and drink industry will play a crucial sound science and are being used as a mechEU economy in 2010, 37 food and drink part as an engine to drive EU economic recovery anism to raise funds for governments in the companies invested a total of Eur2.3 billion, through meeting the needs of the region’s 500 current economic climate,” the President of which corresponds to a 2.2% of total EU million consumers and by developing export sales. FoodDrinkEurope concludes. J

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FOOD & DRINK BUSINESS EUROPE, JULY 2012

I BEVERAGES

Bright Outlook For Squeezed European Fruit Juice Market The €26 billion EU fruit juice and nectars market returned to value growth in 2011 after two years of decline. he market value was estimated to have increased by some 4% last year, while consumption declined by 2.2% to 10.7 billion litres (11.8 billion litres when Norway, Switzerland and Turkey are included).

However, the EU fruit juice and nectars market is expected to decrease slightly in volume by 1.9% in 2012, according to the AIJN 2012 Liquid Fruit Market Report.

Active for over 54 years in Brussels, the AIJN (European Fruit Juice Association) is the representative association of the EU fruit juice industry, defending and promoting the interests of both processors and packers. The report, prepared by Canadean, is published bi-annually by the AIJN. It provides an overview of the fruit juices and nectars market and key developments across the EU 27 countries plus Norway, Switzerland and Turkey.

Accounting for 26% of consumption, Germany is the largest market within Europe, followed by France, the UK, Spain and Italy.

Orange remains the most popular juice and nectar flavour, accounting for close to 40% of total consumption. The EU fruit juice industry is an international business, processing and packing fruit juice raw materials, such as orange, grapefruit, pineapple, cranberry and guava, sourced from around the globe. Carton packaging domi-

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The market fundamentals for fruit juice and nectars remain sound, supported by innovation by producers.

nates the European market with a volume share of 65%.

Challenges In common with the food and beverage industry as a whole, European fruit juice and nectars producers have had to contend with escalating energy costs and rising commodity prices during a period of weak consumer confidence. For example, commodity prices, especially apple and orange which have more than double during the past two years, are at record high levels.

“The fruit juice industry needs not only to assist the consumer to make an informed choice to include fruit juice as part of a healthy, well balanced diet but also to strive to keep our products cost- and price-competitive,” says Andrew Biles, President of the AIJN. “To this end, the AIJN is co-sponsoring a programme of research into health claims that can be made on citrus juices both in Europe and the US.” He continues: “We also continue to explore ways to reduce import duties on the juice products we need to import into the EU. In 2011, the industry paid about Eur500 million in customs duties, and the consumer about Eur5 billion VAT (sales tax) on our products. These seem to be large and illogical penalties for the consumer to pay on 5-a-day products that the EU seeks to encourage its population to include in a healthy diet. A conundrum to be solved both at EU and national levels.”

Market Fundamentals The market fundamentals for fruit juice and nectars remain sound, supported by innovation by producers. According to the report, fruit juice and nectars continue to offer significant potential for value growth through the channelling of new investment behind value-added segments such as enhanced juices offering functional benefits and targeted at specific consumer groups.

Furthermore, the ongoing consumer interest in health and wellness and the ageing population in many countries offer good opportunities for increasing market segmentation. Targeted positioning and marketing, emphasising product ‘health’ and ‘naturalness’, nutritional value/benefit or, for example, organic status or regional heritage will all add premium, says the report.

Product innovation has focused on developing flavour mixes and this is expected to continue, allowing producers the opportunity for manFOOD & DRINK BUSINESS EUROPE, JUY 2012

Andrew Biles, President of the European Fruit Juice Association.

aging production costs, and also to highlight the functional benefits flavour mixes can offer consumers. For instance, a number of apple/berry combinations were added to existing ranges by both branded producers and private label suppliers in Germany and the UK during the first quarter of 2012.

Another market trend in a number of EU countries in 2011, with France and the UK leading the way, was a shift in consumer purchasing to more premium product, which is boosting volume and share of the chilled juice and NFC (not from concentrate) segments.

Outlook While a volume dip of 1.9% is projected for 2012 in the EU fruit juice and nectars market, the rate of decline is expected to continue to decelerate, with the market stabilising by 2015 and recording marginal growth by 2017, according to the AIJN. EU fruit juice and nectars consumption is forecast to stand at 10.3 billion litres by 2017. Although some of the more mature markets, such as Germany and the UK, are predicted to see some shrinkage in per capita levels by 2017, Turkey is forecast to achieve an increase of more than 30%, albeit off a low base.

However, the overall outlook for the European juice and nectars industry is positive.

Volumes will remain under pressure in the short to medium term but value gains should continue, driven by innovation in premium and functional products in particular, concludes the report. J 5

I SUSTAINABILITY

Coca-Cola Hellenic Cuts CO2 Emissions With Advanced Energy Efficient Power Coca-Cola Hellenic has installed advanced energy-efficient power generating capacity at its plant in Ukraine that will reduce CO2 emissions by more than 40% and will increase energy efficiency by more than 32% versus traditional power generation. he Combined Heat and Power (CHP) plant, which is located at the Coca-Cola Hellenic bottling facility in Kyiv region, was introduced in partnership with ContourGlobal, an international provider of efficient energy solutions. ContourGlobal has invested approximately Eur18 million in the project.

With electrical capacity of 6MW, the CHP plant supplies highly efficient clean electricity, heat, chilled water and CO2 for the soft drink production process. It is the only ‘quad generation’ plant in Ukraine.

Natural gas is the primary source of fuel for the twin Jenbacher engines which generate electricity. As they turn, they create heat which is captured to produce hot water for production use. This then passes through absorption chillers to provide chilled water.

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have pledged to build a total of 20 CHP facilities in different countries by 2015.

This marks the biggest CHP programme in the beverages industry and is expected to reduce global carbon emissions by 250,000 tonnes each year on completion.

Sustainable Manufacturing In addition to its new CHP units, CocaCola Hellenic has also installed 5.2 MW of solar energy rooftop panels on its Italian bottling plants and is undertaking a geothermal energy recovery project under its alternative energy strategy.

The soft drinks group has also made strong progress in the areas of waste management and water stewardship as part of

its commitment to sustainable manufacturing across the 28 countries in which it operates.

87% of production waste is now recycled or recovered, and landfilled waste has dropped 65% despite a 55% higher production volume. In 2011, the company met its longstanding goal to ensure that 100% of all wastewater in its 28 countries of operation is treated to levels that support aquatic life. To achieve this, it operates 44 purpose-built on-site effluent treatment facilities.

In addition, absolute water use declined in 2011 for the third consecutive year, and has decreased by 6% since 2004.

Consequently, the company’s operational water footprint today is 58% smaller than it was in 2004 - despite increasing sales volume of 55% in the same period. By 2020, Coca-Cola Hellenic aims to reduce its relative water consumption by 40% and its operational water footprint by 75% versus 2004.

High Efficiency The use of combined electricity, heat and cooling generation guarantees high efficiency in environmental, technical and Soft Drinks Giant financial terms.

Coca-Cola Hellenic is the second-largest Keith Sanders, regional director at bottler of products of The Coca-Cola Coca-Cola Hellenic, comments Company in terms of volume with “Coca-Cola Hellenic is strongly comsales of more than 2 billion unit mitted to innovation and to the concases. It has broad geographic foottinued development of new techprint with operations in 28 countries nologies that minimise our environserving a population of more than mental footprint. The CHP facility 570 million people. Coca-Cola represents our responsibility to the Hellenic offers a diverse range of environment, to the region and to non-alcoholic beverages in the the community where we operate.” sparkling, juice, water, sport, energy, Commenting on the CHP inaugutea and coffee categories. ration George Nizharadze, senior Coca-Cola Hellenic increased net vice president of ContourGlobal sales revenue by 1% to Eur8.85 bilSolutions, says: “This is the eighth lion for 2011 but volumes fell by project of its kind which we have 1%. Despite overall volume and net built, commissioned and are going to sales revenue remaining similar to the operate in partnership with Cocaprevious year, the continuing adverse Cola Hellenic. This represents our Picture at the inauguration of the CHP facility at Coca-Cola impact of commodity costs and percommitment and capability in the Hellenic’s bottling plant in Kyiv region are (from left to right): Mirna sisting economic challenges across development and operation of innov- Velagic, CFO of Coca-Cola Beverages Ukraine; Andriy Bublyk, GR most of the group’s territories, comative cogeneration for industrial part- and Communication Manager of Coca-Cola Beverages Ukraine; bined with unfavourable country mix ners interested in long term, efficient, Walter Gordon, GM of TCCC Ukraine; Sergiy Pugach, Warehouse and foreign currency impact resulted reliable and environmentally friendly Manager of Coca-Cola Beverages Ukraine; Viktor Yanukovich, in a 21% decline in comparable President of Ukraine; Constantinos Spanoudis, GM of Coca-Cola EBIT to Eur541 million and net sources of power generation”.

Working in partnership, Coca- Beverages Ukraine; and Petro Ivanenko, Head of Brovary Region profit plunged 27% to Eur330 milCola Hellenic and ContourGlobal State Administration. lion. J FOOD & DRINK BUSINESS EUROPE, JULY 2012

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I SUSTAINABILITY

Improved Carbon Footprint With Sustainable CO2 Technology he majority of soft drink bottlers are T focusing on environment aspects when investing in sustainable technology and improved carbon footprint. The impact on the natural environment from the burning of fossil fuels has brought increased attention to technologies that capture carbon dioxide from flue gas.

A number of projects are in development around the world that aim to utilise more energy efficient absorption processes for the capturing of carbon dioxide from flue gases. These pilot projects are for very large scale carbon capture and storage applications.

However, for smaller scale carbon capture applications, Union Engineering already has developed and supplied fully proven and commercialised technologies and is constantly improving this technology for the recovery of carbon dioxide from flue gases.

The technology can be used in a number of applications where the benefits are truly cleantech, meaning that the technology will improve operational perfor-

mance, productivity, and efficiency while reducing costs, inputs, energy consumption, waste, and pollution.

The Capture Process With capture plants from Union Engineering, carbon dioxide can be recovered from any gas stream based on the combustion of fossil fuels, including coal, heavy fuel oil-fired steam boilers, and natural gas-fired combustion engines. Moreover, the technology can be used to capture carbon dioxide from nonpower generation sources, like lime kilns.

Supply of Beverage CO2 Since carbon dioxide is a volatile product it can only be transported over relatively short distances. The cost associated with the transport of carbon dioxide is often a significant part of the delivered cost to the end-user. Being able to produce high purity carbon dioxide on-site, therefore, can offer significant cost reductions.

An example of an industry where onsite production of carbon dioxide offers great benefits is the carbonated beverage industry. As in other energy intensive industries, bottling plants often establish their own utility supply systems so as to avoid the hassles from power cuts and other supply constraints.

In many bottling plants around the world, these utility systems are not integrated. A typical beverage producer that requires CO2 has a boiler for generating steam and hot water, a facility for power generation, and a distributor that delivers carbon dioxide.

The Environmentally Perspective The CO2 produced offsite may be made by combustion processes that utilise fossil fuels or as a byproduct of a process that uses fossil fuel combustion, such as an ammonia plant. These multiple utility systems each have associated costs that drive up the total cost of production and create a

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FOOD & DRINK BUSINESS EUROPE, JULY 2012

large carbon footprint. With capture system technology from Union Engineering, utilities can be integrated by means of simple gas engines.

A small on-site power plant run on natural gas, diesel, or heavy fuel oil engines can provide all of the above mentioned utilities from the same fuel input. Power is produced by a generator on the engine.

Steam and hot water are generated by a heat recovery boiler system on the hot flue gas, and carbon dioxide is recovered from the same flue gas.

Combining the generation of these critical utilities into one common system significantly increases the total efficiency rate of the utility system and will significantly reduce the environmental footprint from the facility.

With on-site production, the beverage manufacturer has greater control of carbon dioxide supply and full control of a very critical bottling parameter, namely the quality of the final liquefied carbon dioxide.

The Advantages When comparing the conventional combustion CO2 plant with the Cleantech Technologies from Union Engineering, there are several advantages such as: • Optimized performance including lower total energy consumption; • Cogen concept with high level of integration; • Green profile.

Union Engineering is a leading supplier of CO2 technologies including CO2 recovery plants, CO2 generating plants, CO2 extraction plants, and consultancy services for CO2 technologies.

The company has subsidiaries in China, Brazil, Dubai, Singapore and the US and has delivered over 600 plants to more than 100 countries. For more information, visit www.union.dk. J

I BAKERY & CONFECTIONERY

Iba 2012 – A Unique Opportunity For Bakers and Confectioners Taking place from September 16-21 in Munich, iba 2012 is considered by many to be the most important trade fair in the world for the bakery and confectionery industry. ore than 1,100 exhibitors will offer M insider information about new features and innovations in the industry. Iba will cover twelve exhibition halls with a combined floor area of 132,000 square metres.

Iba facilitates small, medium and largescale enterprises in finding out all about the innovations and trends in the bakery and confectionery industry. It will be attended by trade visitors and decision-makers from the bakery and confectionery trade, from the bread, cake and pastry sector, from restaurants and catering companies.

Around 80,000 visitors are expected who will be provided with a complete overview of the market.

Iba’s unrivalled diversity covers all aspects of the baking-and confectionery industry, giving everyone a truly unique experience.

Indeed, it is an opportunity that only comes along every three years.

Market Leaders

action throughout the show.

“The best way to look at iba is to see it as one big bakery – here you can find everything, from raw materials to sales counters.

It is a great starting point for the fair's main focal points, which range from ingredients, production techniques, packaging, logistics and process optimisation to shop layouts and a range of bought in products, in particular coffee,” explains Dieter Dohr, chief executive and president of GHM, the show organisers. “Once again, visitors can expect to discover the many new developments across all sectors that are set to shape and influence the baking industry for the next three years.”

When planning iba, the trade fair organisers have taken great care to ensure that there are market leaders located in each of the twelve halls. This even spread of highquality suppliers, the 'who's who' of the industry, ensures that visitors will find an interesting range of stands in each of the halls. The two trade fair entrances (west and east) also promise a constant flow of visitors.

A unique feature for industry visitors is that each of the new technologies can be seen in action at the fair. Visitors will be able to watch live demonstrations, not only of energy-efficient machines for the preparation of dough and patisseries, but of production lines and ovens as well.

Manufacturers will be on-hand to explain just how well their equipment performs and how energy efficient their technologies are.

Complete Range

At iba you can see the entire range of products used by bakers, confectioners, caterers and cafe owners. This international platform comprehensively showcases market trends and demonstrates the challenges of tomorrow’s ideas to its visitors. Everyone can see, smell and taste the competition at this extraordinary event. Visitors can see live demonstrations of production lines as well as equipment for traditional bakers in FOOD & DRINK BUSINESS EUROPE, JULY 2012

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I IBA 2012 PREVIEW

Sanimix – Mixing at the Highest Level ith its new Sanimix mixer MRMA, Buhler is setting W the benchmark for an unparal-

lessly welded and therefore completely gapless. No cavities exist where any product leled homogenous product blend. might settle. In combination Whether you are mixing powwith Bühler’s well-proven ders, flakes, or granular products stainless steel design, the – the horizontal mixing process of mixer meets the most rigorous the Buhler Sanimix is synonysanitation standards. And of mous with an unparalleled homocourse the machine is geneous product blend, achieved absolutely low-maintenance: within an extremely short mixing easy to operate, easy to clean, and discharging time. Available as and easy to maintain. a paddle or chopper mixer, the With the new Sanimix Sanimix mixer MRMA is optiMRMA, Buhler offers its cusmally equipped to handle both tomers a sturdy yet elaborate dry and specialty mixes. Its high-capacity mixer that unique trough geometry comexceeds state-of-the-art sanitaWith its new Sanimix mixer MRMA, Buhler sets the benchmark for an bined with reliable mixing tools tion. At Buhler’s Grain unparalleled homogenous product blend. ensures consistent and repeatable Technology Center in Uzwil, high blending accuracy. Even Switzerland, customers can when adding shortening, liquid or block procedure, while the discharge flap with its run trials on paddle and chopper mixfats. large opening allows an emptying time of ers. Find more information on just seconds. With four machine sizes, two www.buhlergroup .com/sanimix.

High Throughput Capacity surface finishes and multiple options, cusFor further information contact Michael Guaranteed tomization to individual requirements are Tremp, Produktmanager Grain Milling, An outstanding mixing performance is the easily possible.

CH-9240 Uzwil, Switzerland on Tel +41 standout feature of the Buhler Sanimix.

71 955 27 09, Fax +41 71 955 66 11, EThe horizontal mixing process provides a Ultimate Sanitation mail michael.tremp@buhlergroup. com or fast mixing cycle and remarkable blending The entire inside of the mixer is seam- visit www.buhlergroup.com. J gramme. This 250-square-metre platform will feature storage specialists, small and medium-sized coffee-roasting businesses, as well as manufacturers of coffee machines – many of them appearing at iba for the first time – who will be showcasing their latest products.

The areas of packaging and process optimisation are gaining increasing importance in the baking industry. Consequently, an Larger Selection

increasing number of manufacturers of hygienic, eco-friendly and low-material packaging are also choosing to take part in iba. In addition, companies will be presenting packaging which enables food quality to be preserved for longer. The entire packaging area will be expanded to include machines that cover all steps of the manufacturing process, from process optimisation through to automation and logistics. J

In 2012 industry visitors will find an even larger selection of stands on offer, especially in the fields of packaging, process optimisation and coffee/take-away products.

Exhibitors will be showing just how a snack range can be expanded in a few simple steps, and also how you can meet the growing demand for coffee among customers.

The 'Coffee, Cake & more' exhibition is a new addition to this year’s iba proFOOD & DRINK BUSINESS EUROPE, JULY 2012

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I IBA 2012 PREVIEW

Brabender: Swiss School of Milling Acquires Latest Measuring Technology he Swiss School of Milling (SchweizT erische Müllereifachschule St. Gallen (SMS)) moved to its new location in the Teufener Strasse in March. One of the highlights was the generous enlargement of the milling technology centre and laboratory. The opening of these new facilities coincided with the start of a new course for technology-oriented and production-oriented management personnel.

"By cooperating with the School of Commerce (Gewerbliche Schule) in Hoppenlau, Stuttgart, our school offers students the opportunity to not only obtain the classic master craftsman's diploma (Meisterbrief), but also the coveted diploma in milling technology (Dipl.

Müllereitechniker SMS) - all in 10 months," said institute director Michael Weber during a handover ceremony for three machines containing the most recent Brabender technology for his laboratory: "With these new devices, we are optimally equipped to prepare our students for future assignments in the field of laboratory technology. For example, with the new Micro Viso-Amylo-Graphs, the increasingly important field of baking mixtures can be

Sponsorship "with a handshake": Institute director Michael Weber (left) and Brabender sales manager Markus Lons with the hightech trinity for flour analysis in the new laboratory in St. Gallen.

dealt with innovatively in our courses."

The sponsoring partner of this new hightech trinity for amylograms, farinograms and extensograms is Brabender, a leading international group in the field of measuring technology. For sales manager Markus Lons, it was a special moment when he personally started the "newest generation of machines for the newest generation of millers" on-site - the first analysis program was executed with a single press of the enter

key.

"Our latest technology incorporates network-capable software that opens up new applications with a high number of practical benefits for students later on in their careers," explained Löns in St. Gallen: "In this manner, whether analysis or measurement techniques are concerned, they will be able to work according to both standard international methods as well as according to individually generated product specifications."

“This is especially important at the School of Milling, because here we not only train technical experts for the field in the German-speaking area - the School, with its range of courses taught in English, also prepares students for management positions in the diverse fields of grain processing around the world. For example, the students in the last course came from 15 different nations.

For its international clientele, institute director Michael Weber has formulated a global educational motto: ‘Prepared for the Future’ – ‘Powered by Brabender’,” added Markus Lons, hinting at his company's contribution through the sponsorship of the new laboratory equipment. J

BRABENDER® – Where Quality is Measured n 1923 BRABENDER® Elektromasch Ifounded inen GmbH, located in Duisburg, was by engineer Carl Wilhelm Brabender. The foundations for growth and success were laid.

Nowadays BRABENDER® incorporates four independent units and employs more than 350 people all over the world.

It is one of the leading manufacturers in its product range.

The BRABENDER® group consists of: • BRABENDER® GmbH & Co. KG, Duisburg - Manufacturer of measuring instruments for the plastics and food industry; • BRABENDER Technologie KG, Duisburg - Manufacturer of feeding systems; • BRABENDER Messtechnik® GmbH & Co. KG, Duisburg - Manufacturer of online viscosity- and moisture testing instruments for process engineering;

• CW BRABENDER® Instruments Inc, South Hackensack, New Jersey, USA Manufacturer of measuring instruments for the plastics and food industry.

Close contact to the customers never was a foreign concept for BRABENDER®, but an integral part of the company’s philosophy. Carl Wilhelm Brabender recognized this in good time and established the FOOD & DRINK BUSINESS EUROPE, JULY 2012

Institute for Flour Physics in 1934. Since that time hundreds of customers a year are trained on BRABENDER® instruments.

Quality and reliability of BRABENDER® instruments are the central thread of the company’s history. Last but not least, this was proved by the certification to DIN EN ISO 9001 in 1995.

World-wide the BRABENDER® service team is doing its utmost with competence and care to ensure that the company’s instruments are always working to the customer’s satisfaction, even after many years of operation.

BRABENDER® has remained young and innovative for over 80 years.

The legacy of Carl Wilhelm and Martha Brabender is the obligation for BRABENDER® to proceed along its chosen way with confidence and persistence, for the advantage of its customers. J 13

I IBA 2012 PREVIEW

Iba 2012 – “Discover the WP Treasures” ith the claim “Discover the WP W Treasures” – the WP BAKERYGROUP presents numerous innovations for the modern production of high quality baking products at this year’s iba exhibition in Munich, Germany.

The WP BAKERYGROUP offers perfectly integrated processes to artisan and industrial bakers. The ten companies who form the group are all specialists in their particular business field. Combined, they guarantee the smooth performance of all production steps and their coordination, starting with dosing and mixing to dividing and moulding, laminating, cooling up to baking and instore baking.

The new quality labels CleanTec, Green Energy, SmartControl and Baking Quality, as well as the new business areas WP green and WP Food are part of numerous innovations presented by the WP BAKERYGROUP at this year’s iba expo.

At first sight, the striking labels show the special quality standard of the WP machines, lines and concepts. “A treasure is something precious and special. This is what we want to present to our customers at iba, a unique experience for all senses,” says Jurgen Horstmann, owner of the WP BAKERYGROUP. The treasures are versatile. One can be the WP Kemper Evolution line for the production of fat reduced donuts. The line reduces the

with the CO2-neutral burning of naturally finished wood pellets. “Ovens, which are marked with our GreenEnergy label, save money for the baker. At the iba 2012, we will demonstrate live, that energy which has been produced once, should not just vanish but can be used for further operation”, says Ulrich Hirsch, Product Manager Ovens.

SmartControl – Easy and Standardized Operation For WP Machines

Quality Label CleanTec: The visible label CleanTec is the symbol for machines with special hygienic design.

amount of scrap dough to a minimum.

Another treasure is the bread crust – nice and crispy due to the Aroma Method and the performance of the Matador ovens. More treasures are hygiene, usability and energy efficiency which are emphasized by the new WP quality labels.

CleanTec - Machines With Hygienic Design

At this year’s iba exhibition, WP presents another step of their CleanTec philosophy: the automation of dough production with connected cleaning, increased use of water and innovative component packages which are specially designed for increasing hygiene standards. “Especially in the process of cleaning, we put high emphasis on the transfer of knowledge. How a machine is correctly and time effectively cleaned according to hygienic standards can be taught through descriptive films and instruction material which we supply,” says Henk Snellink, CEO of WP Haton.

At iba, the newest SmartControl innovations will be presented, such as the further development of the Navigo control, the operation software Oven Control and the INUS control for roll lines. “Corresponding to the claim ‘think process’, the WP BAKERYGROUP looks at every single step of the baking goods production, as well as the operation of production lines, as an integrated process. Standardized user interfaces for an increasing number of machines are the distinguishing mark of the new WP operation philosophy,” says Adrian van Dillen, Technical Managing Director at WP Kemper.

BakingQuality – Baking With Unique Quality

Machines or lines, which bakers can produce special quality with, are marked with the BakingQuality label. A historic example is the WP Matador oven. Since the 1950s, the Matador has set the standard in baking.

Bakers in more than 130 countries use the oven in order to produce state-of-the-art crusts and taste. At iba, the traditional oven will shine in a new light. This high level of baking can also be achieved in in store baking – with the Matador store. The ‘little’ brother of the traditional WP Matador will also be displayed in a complete new, surprising look. J

GreenEnergy – Minimal Energy, Maximal Efficiency

WP Matador: The Matador oven with its Zyklotherm heating system is a good example of efficiency because it needs up to 30 percent less energy than comparable ovens.

Bakeries belong to the most energy intensive businesses in the artisan field. The ovens have the highest amount of energy consumption with 50 to 70 percent. At iba, the WP BAKERYGROUP presents systems which save and use energy more efficient. The Matador oven with its Zyklotherm heating system is a good example because it needs up to 30 percent less energy than comparable ovens. The energy balance of the WP Pellador ovens convinces FOOD & DRINK BUSINESS EUROPE, JULY 2012

WP Kemper Evolution line: Due to the patented stamping system, donuts can be produced with up to 30% less scrap dough compared to conventional production systems.

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I CONSTRUCTION

Mechanical Engineering Services From Buttimer Ireland uttimer Ireland provides flexible, worked both in Ireland and abroad. Its B dependable, competitive, consistent and overseas projects have been mainly for quality mechanical engineering services to selected industries with a primary focus on project management, engineering, procurement, manufacturing, installation, commissioning and start-up plus maintenance support services.

E Buttimer & Co. Ltd, part of the Buttimer Group, was founded in 1978 by Edward Buttimer who still chairs the Buttimer Group, which has its head office at Cahir, Co. Tipperary, Ireland. The company has developed specialised skills in materials handling, mechanical and pneumatic conveying, bulk storage bins, silos and feed hoppers for grain, mining ore, coal, quarry products etc. The company has significant experience in the design and fabrication of Process Tanks and Pressure Vessels, Mobile and Static Ship Unloading Hoppers and other Dockside Loading and Unloading equipment, Passenger Boarding Bridges and Road and Rail Bridges.

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Buttimer Ireland has focused on the growing and changing economy in Ireland and overseas and has constantly altered its Product and Service offering to suit the changing requirements of its customers in the various industry sectors served over past 34 years.

E Buttimer & Co Ltd has recently been awarded a contract for the Raw Materials Handling project for the Diageo Brewery Development at St James’s Gate, in Dublin.

Over the years Buttimer group have

FOOD & DRINK BUSINESS EUROPE, JULY 2012

existing customers for whom successful projects had been completed in Ireland resulting in the company being asked to complete projects at locations outside Ireland.

In 2005 the company set up Buttimer Poland to service the Polish and surrounding Eastern European markets. Drawing on the experience from its Irish operations Buttimer Poland offers its vast wealth of experience into new and expanding markets, developing the engineering skills of local engineers, allowing the business to operate independently while being supported from Ireland when necessary.

Buttimer Ireland is certified to ISO9001:2008 Quality Management System and has a very strict attitude to Health & Safety policy where safety of their employees, their clients and others who may be affected by its operations is of utmost importance. J

I BREWING & DISTILLING

Diageo Investing Over £1.1 Billion in Whisky and Beer Production Diageo is investing heavily in its Scottish and Irish production facilities to support the continuing growth of its whisky and beer export businesses. ince the start of 2012, the global drinks group has announced a £1 billion investment plan in Scotch whisky production over the next five years to meet growing global demand for its brands along with a Eur153 million (£130 million) expansion and modernisation programme at its famous St James’s Gate Brewery in Dublin, which is the home of Guinness.

Scotland and Ireland are key production hubs within Diageo Global Supply, which is responsible for 85% of total group drinks output and employs about 40% of Diageo’s total workforce. Diageo Global Supply is organised into four production centres Europe Supply, America Supply, Global Beer Supply and Asia Supply.

depending on the progress of specific projects, but the overall commitment is expected to total over £1 billion over the five years.

S

Paul Walsh, chief executive of Diageo.

Diageo’s network of distilleries, packaging facilities and storage and distribution warehouses in Scotland is by far the largest element within Europe Supply. Ireland, as the main export centre for the Guinness brand, is similarly central to the operation of Global Beer Supply. Diageo’s Irish brewing operations not only supply its home markets of Ireland and Great Britain but also export to international destinations.

About a third of Diageo’s global brewing volumes are produced in Ireland.

Diageo’s spirits supply operations in Scotland produce almost 50 million cases of leading brands of Scotch whisky and white spirits and over four million cases of ready-todrink brands annually. The business is export oriented with around 85% of Diageo’s production in Scotland sold overseas.

Diageo’s new £40 million distillery at Roseisle in which was opened in 2010.

Supporting Growth in Scotch A major new malt distillery will be built as part of the investment in Scotland, alongside a programme of major expansion at a number of Diageo’s existing distilleries.

Detailed plans will also be developed for a second new distillery which will be built if global demand for Scotch is sustained at expected levels. The company also plans to invest in substantial new warehousing capacity to house the millions of additional litres of Scotch whisky which the distillation investment will produce.

“Over recent years our brands have achieved remarkable, sustained global growth. Scotch whisky is Scotland’s most celebrated manufactured export, led by brands like Johnnie Walker, resonating with consumers from Boston to Beijing,” says Paul Walsh, chief executive of Diageo.

“We expect that success to continue, particularly in the high growth markets around the world.” The £1 billion spend on Scotch whisky production during the next five years builds on the foundations already laid down by Diageo over recent years through sustained investment in both production assets and in maturing Scotch inventories.

Over the five year period Diageo plans to invest over £500 million in the construction of the distillation and warehousing capacity. This increased production capacity also requires Diageo to commit £500million in working capital for the maturing spirit which will be laid down over the next five years. The exact total investment figures may vary over time FOOD & DRINK BUSINESS EUROPE, JULY 2012

Developments in Beer The Eur153 million investment programme in Ireland is being phased over two years and will entail regenerating the St James’s Gate site into a brewing centre of excellence. A new brewhouse facility is being constructed along with Speyside, a new grain intake building and associated silos. The existing fermentation plant will also be extended. The new brewhouse will have an annual capacity of approximately 7 million hectoliters, representing an increase of 40% on the current maximum capacity.

However, the plan also involves the centralisation of all Diageo’s Irish brewing activities at the Dublin site. This will entail the closure of smaller breweries at Kilkenny and Dundalk.

“The decision to consolidate to the St James’ Gate site is fundamental to delivering the competitiveness necessary for the long term sustainability of our brewing in Ireland,” explains David Gosnell, president of Diageo Global Supply. “This is a significant investment and an expression of confidence by Diageo in our Irish operations.”

When the consolidation process is finally completed at the end of 2013, Diageo’s only Irish brewing facility outside Dublin will be a small plant in Waterford producing Guinness ‘essence’, which is shipped to almost 50 breweries worldwide for production of the famous stout brand. J

An artist’s impression of the new brewing centre of excellence at St James’s Gate in Dublin.

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MACHINERY OVERHAUL INSTALLATION MAINTENANCE AND FABRICATION ELECTRICAL AND DATA NETWORKING INSTALLATION AND MAINTENENCE Mechanical and Electrical Engineers MECTEK MECHANICAL SERVICES LTD

Mectek Mechanical Services Ltd are a mechanical and electrical engineering company with in-house design, project and direct service capabilities.

Based in Burton upon Trent, Staffordshire the company delivers various engineering projects across the U.K. Mectek Mechanical Services Ltd specialise in the installation, maintenance and fabrication of material handling equipment, process control systems, associated steelwork and general fabrication.

Mectek Mechanical Services Ltd electrical and data networking division specialise in all aspects of industrial and commercial installation including CAT6, fibre optics and AV. Mectek Mechanical Services Ltd can undertake mechanical engineering client requirements from concept to design to installation and commissioning.

Core services include Project Management, Mechanical Engineering Design, Bespoke Manufacture and On-site Labour.

Mectek Ltd Unit 1 Willows Court, Lancaster Park, Newborough Road, Needwood, Burton-Upon-Trent DE13 9PD Telephone: 01283 575694 Email: info@mectek.co.uk

I BREWING

British Brewing Renaissance at Molson Coors Molson Coors (UK) has commenced a £75 million brewery transformation programme with the majority of the investment targeted at its site at Burton on Trent, the traditional home of English brewing. olson Coors is the UK’s second largest brewer with almost 20% of the beer market. Its portfolio of brands includes Carling, the UK's best selling lager for three decades, Coors Light, Grolsch, Worthington's, Caffrey's, Cobra, Corona, Doom Bar, Singha and a range of speciality beers.

Molson Coors (UK) operates four brewing facilities and employs over 2,000 people.

The company’s main brewing sites are at Burton-on-Trent, Tadcaster and Alton.

The company also owns Sharp’s cask ale brewery in Rock, Cornwall. Molson Coors (UK) acquired Sharp’s Brewery for £20 million in February 2011.

for 2013. The new energy centre, which will provide steam and refrigeration, will also be built next year, helping to reduce the brewery’s environmental impact. The yeast handling area will be expanded and beer vessels installed in 2014.

M

Brewing Renaissance Also in 2011, Molson Coors (UK) began the transformation of its Burton Brewery by investing an additional £15 million per year over a five years period as part of the group’s ‘Brewing Renaissance’ programme.

The Burton Brewery produced 1.3 billion pints of beer last year.

Burton on Trent is the traditional home of English brewing. William Worthington commenced brewing in the town in 1744 followed by his fellow Englishman William Bass in 1777. The Worthington and Bass brewing businesses merged in 1927. Bass

Molson Coors is the UK’s second largest brewer with almost 20% of the beer market.

Jim Shaw, head of Supply Chain Strategy & Change at Molson Coors (UK).

Brewers, which had expanded its brewing interests in Burton on Trent with the purchase of Carlsberg’s brewery in the town in 1998, was acquired by Coors Brewing Company in 2002.

The investment programme at the Burton Brewery is designed to equip the site to meet the changing needs of customers and drinkers. An obsolete maltings tower has now been demolished and removed to create space for a new state-ofthe-art energy centre. Work has commenced on new packaging facilities to improve the brewery’s flexibility and performance and innovation capabilities.

“Two state-of-the-art packaging operations will meet the future needs of customers and consumers,” says Jim Shaw, head of Supply Chain Strategy & Change at Molson Coors (UK). “A shrink wrap packaging facility is now fully operational adding a boost to our flexibility and capability. Later this year work will begin on the creation of a new bottling line too.”

Construction of a new beer processing area and refrigeration facilities is scheduled FOOD & DRINK BUSINESS EUROPE, JULY 2012

Britain’s Best Brewery “We are embarking on a journey to build Britain's best brewery,” Jim Shaw explains.

“The investment will ensure we continue to innovate to meet the future needs of customers and consumers. Innovation is key to ensuring we continue to delight drinkers for years to come. With the launch of products such a Carling Zest this year, we have demonstrated we are looking to the future.

The investment will have structural benefits too, boosting our brewery’s capability, flexibility and overall performance.”

He continues: “Furthermore, being recognised for World Class Corporate Responsibility is important to us. The redevelopment programme will bring environmental benefits and contribute towards our goal of saving 2 billion pints of water and to reduce energy usage by 20% by 2020.”

Molson Coors (UK) is transforming its Burton Brewery by investing an additional £15 million per year over a five years period.

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The Burton Brewery produced 1.3 billion pints of beer last year.

Benefits Molson Coors (UK) is already reaping some of the benefits from the investment programme at Burton Brewery. Carling is now packaged in film instead of cardboard following investment in a new state-of-theart canning line, which has the capability and flexibility to support the company’s plans to help drive innovation in the beer category. Selected packs feature a carry handle on larger pack sizes which will help increase the efficiency of stock replenishment for customers and make the product easier to handle for shoppers.

The move to packaging in film is set to

further increase the brewery’s environmental performance by reducing the weight of secondary packaging by 63% and cutting carbon emissions by 4%. As well as the carbon and weight benefits, ink coverage has been restricted to less than 5% of the overall packaging weight so the film can be 100% recycled.

“Our Burton Brewery is the biggest in the UK and the significant investment will allow us to set standards for efficiency, whilst allowing us to continue to innovate.

This is a significant investment, which underlines our commitment to continuing Burton’s rich brewing heritage, and all our efforts are focused on its success,” he remarks. “Our investment in Sharp’s Brewery is also well underway which includes an expansion of the brewery’s capacity and a state-of-the-art anaerobic digester which will recycle the waste products of the brewing process and convert it into energy to power the brewery.”

Cask Beer Investment Sharp’s Brewery is being expanded under a £5 million investment programme. Molson Coors (UK) acquired Sharp’s Brewery including the Doom Bar ale brand in order to expand its cask beer portfolio.

With over 8.6 million cask beer drinkers in the UK and cask beer representing 15% of on-trade beer volume (its highest share

Sharp’s Brewery is being expanded under a £5 million investment programme.

of on-trade beer for over a decade), the addition of Doom Bar alongside the developing Worthington’s family of ales allows Molson Coors (UK) to add further choice to its beer range. The acquisition of Sharp’s Brewery followed Molson Coors (UK)’s launch of the William Worthington’s Brewery in December 2010. Constructed in listed buildings at the National Brewery Centre, the William Worthington’s Brewery produces well-known Worthington’s brands such as Worthington’s White Shield, Worthington’s Red Shield as well as a range of Worthington’s Seasonal Ales and other limited edition brews.

Sharp’s Brewery has progressed well under Molson Coors ownership, increasing beer volume sales in 2011 by 43% to 117,517 barrels and the workforce by 18% to 112 people. The flagship Doom Bar brand, which accounts for about 80% of Sharp’s Brewery’s sales, grew by 22%. J

I DAIRY

Dairygold Confirms €120 Million Phased Investment Programme airygold Co-op, D one of Ireland’s largest dairy processors, has confirmed its post EU quota strategy. As a farmer owned cooperative Dairygold has committed to accept all the milk that its Members would produce post quota.

Dairygold’s milk suppliers have forecast a 63.5% increase in milk production from 941 million litres in 2011 to 600 million litres a year extra by 2020.

In order to facilitate the expected increase, Dairygold is planning a phased investment of Eur120 million over the next eight years to incrementally expand its weekly processing capacity by 18.5 million litres by 2020.

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Dairygold’s product strategy is firmly established in cheese and dairy ingredients and its expanded product profile will focus on these core products. Dairygold’s three existing processing sites at Mitchelstown, Mogeely and Mallow have capacity for varying degrees of expansion. Sweating these existing facilities makes absolute sense for Dairygold as they offer established infrastructure, which will reduce the capital cost of expansion.

FOOD & DRINK BUSINESS EUROPE, JULY 2012

Dairygold is already investing from its existing cash reserves to increase its weekly processing capacity by 4.3 million litres (15%) by 2014. This comprises expansion at its speciality cheese plant at Mogeely and its Cheddar plant at Mitchelstown, the latter is one of the largest in Britain and Ireland.

Dairygold plans to invest Eur120 million to add another 18.5 million litres weekly capacity up to 2019.

This will comprise of an upgrade of the existing dryer in Mitchelstown and the development of two 7.5 tonne/hour dryers in Mallow, one in 2015 and one in 2019 or earlier if required. J

Tel: (01977) 882000 Email: enquiries@constar.net Website: www.constar.net

Bulk Handling Solutions From Mectek Mechanical Services ectek Mechanical Services specialise in M the installation, maintenance and fabrication of materials handling equipment, process control systems, associated steelwork and general fabrication. Based in Burton upon Trent, Staffordshire, the company delivers various engineering projects across the UK. Established in 1999, Mectek’s core work is the maintenance and refurbishment of mechanical bulk handling materials systems within the brewing, malting, food and quarry industries. The company supplies site based teams to run preventative and pro-active maintenance tasks for its clients.

Mectek also undertake turn-key and refurbishment projects which range from service work to complete rebuilds of large mechanical machinery. This work is supported by the company’s workshop facilities, which enable Mectek to manufacture spare parts in house, fabricate replacement components and rebuild motor gearboxes and hydraulic and pneumatic equipment.

Mectek's screw division is able to manufacture screw conveyors up to 300 tonnes per hour and press flights up to 1200mm in diameter with on-site erection commissioning development and design. Most spare parts are available within 24 hours of order.

Mectek's workshop-based fabrication division is able to manufacture all aspects of steelwork ranging from precision machining, lathe and mill work to stainless steel bespoke conveyors and structural steelwork.

Mectek is able to supply loan labour including fitters, welders and electricians and is able to provide project management for in-house CDM projects.

A recent project completed by Mectek entailed the design and build of a new inner slew ring for the tower kiln at Molson Coors’ Shobnall Maltings at Burton upon Trent.

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Design and Build Project at Molson Coors Drawing on its 25 years of experience in the movement of all kinds of materials in a wide range of industries, Mectek has developed particular expertise within the food and drink processing sector. A recent project completed

by Mectek entailed the design and build of a new inner slew ring for the tower kiln at Molson Coors’ Shobnall Maltings at Burton upon Trent. The existing slew ring had become worn and caused excess friction, which resulted in multiple failures to the drive system. The ring was not repairable, so Mectek designed a new support system which would allow ease of maintenance and replaceable parts.

The structure was fabricated and assembled in Mectek’s workshop. It comprised of 20 fabricated petals which bolted together and in turn bolted to the concrete core. On the petals sat 20 support rollers and 10 guide rollers.

The rollers were machined from stainless steel and sat in a galvanised steel carriage. On top of the rollers sat a ring beam, fabricated from a structural hollow section, which was fabricated in four sections and bolted together. A replaceable wear strip was then bolted to the ring beam.

The whole structure weighed approximately 10 tonnes, and when in operation had to support 160 tonnes and revolve without excess friction The installation required minimum down time and a precise method of supporting the 100 tonne floor while the support ring was replaced. To do this Mectek designed and built another support ring which would bolt to the beams of the floor and six jacking stools. Using a synchronised jacking system Mectek was able to lift the floor and support the weight while the supporting structure was replaced.

The jacking system allowed for the floor to be lifted accurately and level, and to be able to be continually monitored while the work was carried out.

FOOD & DRINK BUSINESS EUROPE, JULY 2012

The old support structure was then removed, and the ring beam assembled around the core. New beam supports were bolted into place and the ring beam lifted up using chain hoists.

Each stage of the installation required purpose build lifting attachments to position the sections safely into place.

When all the component parts had been fitted the jacks were lowered and the floor sat on the rollers. The project was completed in 16 days

Mectek’s expertise within the food industry is illustrated by its work at the Meadow Foods.

Work at Meadow Foods Mectek’s expertise within the food industry is illustrated by its work at the Meadow Foods, the UK’s leading independent dairy group, which specialises in supplying milk and dairy ingredients to food manufacturers.

Mectek was contracted to overhaul the chocolate crumb conveyor system at the Meadow Foods plant in Yorkshire. The work involved removing four Redler drag chain conveyors from site, completely stripping them down, shot blasting and painting the casings and rebuilding the drives and bearings, re-installing them on site and fitting new haul chains. The project was undertaken in a two week shutdown period.

Mectek has also repaired a damaged chocolate crumb mixer at Meadow Foods. The unit was built in the 1930’s and the manufacturer no longer existed. The machine had to be stripped down and rebuilt. Many of the component parts had to be manufactured. New 1200mm diameter bevel gears were made and all the moving parts were rebuilt.

For further information contact Mectek Mechanical Services on Tel +44 (0)1283 575 694 or visit mectek.co.uk. J

I MEAT, POULTRY & FISH

Morrisons Investing Heavily in Meat and Seafood Processing n line with its plans to become the UK’s IMorrisons, largest fresh food manufacturer by 2015, Britain’s fourth largest food retailer, is investing substantially in its meat and seafood production sites. Morrisons aims to complete a £200 million investment in the expansion of its manufacturing food arm by 2013. The investment will mean it will buy more fresh food directly from farmers than its rivals.

The expansion programme includes a £21 million investment to increase the company’s capacity at its abattoir in Colne, Lancashire. Morrisons is the only retailer to buy livestock from the farm and process them at its abattoirs in Colne, Spalding, Lincolnshire and Turriff, Aberdeenshire.

The expansion at Colne will mean an extra 6,000 pigs will be processed at the site every week, raising capacity from 24,000 a week up to 31,000. Meat from the abattoir will be shipped into the recently acquired

Morrisons fresh meat packing facility in Winsford, Cheshire, cooked meat production in Deeside, North Wales, and some pies and pastries produced at Morrisons’ Farmers Boy site in Bradford.

The 105,000 sq ft meat processing facility in Winsford was acquired from Vion Food UK, part of the Netherlands-based meat cooperative. The site is a centralised fresh pork and lamb retail packing plant which has the capacity to expand into beef products and increase its overall existing production.

Morrison recently took full control of the Farmers Boy (Deeside) factory after purchasing a 49% stake for an undisclosed price from UK pork processor Cranswick.

Farmers Boy produces 1.5 million packs of sliced ham and poultry products a week from its 175,000 sq ft factory and employs 600 people. The business was acquired by Morrisons and Cranswick in July 2010 but has been substantially expanded since fol-

lowing investment of about £30 million.

Morrisons is also moving into seafood processing in order to deliver quality fish into its stores. The company is converting a factory in Grimsby by equipping it for seafood production by the end of 2012. As a result, Morrisons will be the only major food retailer to source fish direct from the quayside and process it for sale across the country.

Vion Food UK is currently Britain’s biggest manufacturer of fresh food, with Morrisons the second largest. J

Vion Food UK to Upgrade Northern Ireland Plant Musgrave, Samworth Bros and Dew Valley.

With the enhanced processing equipment in place the Vion facility in Cookstown will continue to underpin the future sustainability of the Northern Ireland pig industry.

Vion Food UK produces and processes high quality beef, lamb, pork, bacon and

chicken as well as a wide range of convenience products such as sausages, cooked meats and added value cooked chicken. It has extensive facilities across the UK from farms and hatcheries to primary production, processing and packing. Vion Food UK is part of the Netherlands-based Vion Group. J

Healthy Farm Doubles Production Capacity With Meyn-Ishida ion Food UK is investing £11.5 million to ealthy Farm, one of the leading producers of high quality food products in Russia, has recentV enhance its processing facilities at Hly invested in the first Meyn-Ishida poultry processing solution in the Ural region. With a Cookstown in Northern Ireland, with the cre- total capacity of two 6,000 birds per hour processing lines Healthy Farm doubles its current proation of 164 new jobs. The Cookstown facility is the largest pig processing site in Northern Ireland and the Republic of Ireland, and among the largest in the UK, producing pork, sausages, bacon and cooked meats.

The company’s investment will enable it to install new equipment, which will improve animal welfare and increase processing capacity. The enhancements will also allow the site to become more efficient and increase profitability.

As well as selling its products under the Cookstown brand the company, which currently employs over 700 people, supplies major customers such as Marks & Spencer, Tesco, Sainsbury, ASDA, Henderson Group,

duction capacity to 152,000 birds per day. This increased capacity in combination with a stateof-the-art multihead weighing and batching line will allow Healthy Farm to further strengthen its market position.

Meyn will install a complete new processing line and will also extend the existing line installed

by Meyn in 2009. The new universal multihead weighing & batching line from Ishida will provide a sophisticated solution for all steps in the packaging process. The renewed high-tech plant will be running by the end of 2012.

Meyn-Ishida combines the highly sophisticated expertise of Meyn in poultry processing, with the unique know-how and experience in weighing, grading and end-of-line equipment from Ishida to offer a full range of wall-to-wall solutions. The strategic alliance has already been awarded several high value international contracts, including fully integrated plants in Saudi Arabia (Almarai), Russia (Miratorg, Valujki, Tambov), Chile (Ariztia) and Poland (Wipasz). J FOOD & DRINK BUSINESS EUROPE, JULY 2012

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info@stephan-uk.co.uk

+44 (0)845 456 0823

I MEAT, POULTRY & FISH

Stephan UK Offers Improved Processing Efficiency tephan Machinery has been specialising S in designing and building machines and plant for food production processes for nearly 60 years, supplying many leading food brands with customised machinery that supports their production processes and enhances efficiency. In February 2011, Stephan Machinery GmbH joined the IMA Group.

The Stephan brand is a leader in the worldwide food industry in applications such as dairy, convenience food, bakery & confectionery and meat & fish processing.

The company is proud of its reputation for producing high-quality dependable

machinery and systems. The Stephan range of machines covers all food processing areas: cutting and size reduction, mixing, emulsifying, heating (direct & indirect) cooking, UHT processing, cooling (indirect), flash-cooling, creaming, dispersing, suspending, granulating and milling. The Stephan range of equipment is renowned for producing short batch times with high degrees of repeatability and high levels of product quality.

The equipment range spans small-scale units for laboratory or NPD application through to full scale batch, semi-continuous and continuous processing systems.

Stephan UK has been providing a full sales and after-sales service for customers within the UK and Ireland for almost 10 years and is proud to be representing Stephan Machinery GmbH and IMA Industries. Stephan UK provides a complete service - new machine sales, refurbished machines, machine hire, spare parts, engineering, servicing and repairs. The Aftersales Department is able to offer tailor-made solutions for preventative maintenance with continuity of production a priority.

As part of their on-going commitment to processing efficiency Stephan is constantly developing cost effective, energy efficient processes to reduce cycle times and enhance product quality.

Customers are welcome to visit the Stephan Machinery Test Centre in Hameln, Germany, where there are full facilities for conducting machine and product trials, to meet customer specifications. J

Camb Machine Knives – A Cut Above the Rest amb Machine Knives is a family C owned and run knife manufacturing and supply company, offering the full range of replacement poultry processing knives to suit: STORK, MEYN, LINCO, SYSTEMATE, SIMMONS, BIRO, Cope and Cope, DAPEC, CANTERELL, MYCOM, BAADER, GAMCO, plus many more .

The range includes all knives from the kill line to evisceration through to the cut up lines and finally to the packing lines.

Camb Machine Knives offers replacement knives for packing machines such as

cessing, red meat processing, cheese and dairy products.

All the company’s food processing/packaging knives are manufactured from food grade stainless steel in grade 440B and 420 in addition to the standard stainless steel.

Camb Machine Knives offere coatings that can enhance the life of the blades: Titanium nitride(TIN) and Teflon style coatings. Camb Machine Knives is the largest manufacturer/supplier of poultry processing knives in the UK. J MONDNI, SEALPAC, PRO-SEAL, PACKAGING AUTOMATION, MULTIVAC, MAP, MODERN, ORIC, SANDIACRE, BOSCH, ILAPAC, CRYOVAC, TIROMAT, ROVEMA, PFM, OMORI to name just a few.

Camb Machine Knives are seasoned exported with agents and customers in over 25 countries worldwide. The range is not limited to the poultry industry but covers all food production and packaging including bakery, confectionery, fruit and vegetables, ready meals, white meat proFOOD & DRINK BUSINESS EUROPE, JULY 2012

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BAM Contractors – Delivering Sustainable Irish Infrastructure and Building Projects stablished in 1958, BAM Contractors (formerly Ascon), a registered Irish E company managed by Irish professionals,

track renewal project in Northern Ireland.

covers the entire spectrum of construction activity. Operating companies include: BAM Civil; BAM Building; BAM Property; BAM PPP; BAM Rail; and BAM FM. BAM Contractors employs over 2,000 people directly and indirectly and its turnover for 2011 was Eur230 million.

BAM Contractors is a wholly owned subsidiary of Royal BAM Group of the Netherlands, which had a turnover in excess of Eur7.9 billion in 2011 and employs in excess of 27,000 people.

Royal BAM Group, ranked fifth in the league of top European contractors, continues to expand in its home markets of The Netherlands, United Kingdom, Ireland, Belgium and Germany and target opportunities internationally through its global operating company BAM International.

The group, a publically quoted company listed on Euronext Amsterdam, applies best practice and good governance procedures to manage risk at all levels of its business.

BAM Contractors’ operating company BAM Building ranks among the top two building contractors operating in Ireland and has carried out projects of the largest scale for the most prestigious of clients.

BAM Civil is the largest civil engineering contractor in Ireland. Projects include PPP motorway schemes, transportation, water & wastewater, marine and rail projects.

BAM Contractors is heavily involved in sustainable Irish infrastructure and building projects, particularly in the healthcare and food, educational, transport, water and waste sectors. It is an innovative company with the proven ability to drive efficiency through the construction process. As a business partner, it has the ability to de-risk construction for private and public clients by offering flexible funding arrangements.

Through its parent, BAM Contractors has access to the resources – Human, Financial and Technical – of BAM Group, including all of its operating companies.

By managing a low level of working capital and the ability to maintain a high level of cash, the company has generated a strong base to support the on-going working capital requirements of its business and a strong base to generate a consistent flow of new projects.

Recent and Current Projects

Recent projects completed by BAM

Food Industry Specialist

Contractors include the Engineering Building at NUI Galway; the NPRO Phase 1 Projects at Beaumont and St James’ Hospitals, Cill Ronain Harbour Development, the Curraheen Hospital and the Castleisland Bypass.

Current projects include: a 7,000 sq m office development for US company, Quest Software in Cork, to cater for Quest’s growing business needs in Europe - more than 300 jobs will be created during the construction phase; A new Centre of Applied Science for Health comprising offices, laboratories, post graduate and postdoctoral areas, social spaces and conference room and associated ancillary spaces for IT Tallaght; refurbishment and extension of the Communication Workers Union Head Quarter Building in Dublin City and the complete modernisation of Dublin City Council water treatment plant at Ballymore Eustace, while maintaining it in full operation.

BAM Property is development partner with Heineken Ireland for the regeneration of the Beamish and Crawford Cork city centre site - planning permission was recently awarded for a 6,000 seat event centre on the site. It also has in progress a major residential and mixed use development at Carrigtwohill, Cork.

BAM Rail, established in Ireland in 2008 provides a comprehensive rail construction service exclusively for the ‘All Island’ market and has recently completed the LUAS Line A1 Tallaght to Citywest and is currently working on the Coleraine to Derry FOOD & DRINK BUSINESS EUROPE, JULY 2012

Because of the group’s strong cash position, BAM Contractors took a strategic decision to restructure its borrowings in order to remain outside of NAMA. To realise this strategic objective, the directors of BAM Contractors took absolute control of all its property assets in 2010. The restructuring was financed by the company’s own funds and with funds from Royal BAM Group Treasury Division.

BAM Contractors Group is certified to SafeTcert and the ‘International Safety Rating System’ of Det Norkse Veritas, Level 6, ISO 9001:2000 for Quality Management and ISO 14001: 2004 for Environmental Management. J 27

I LEAN MANUFACTURING

Complexity Simplified in FMCG he UK food and drink industry handles T enormous complexity every day to create the huge range of options which tempt us from virtually every supermarket shelf.

All the supermarkets in constant competition for market share try to outdo each other with new products, new flavours, special offers and lower prices.

Only very rarely do supermarkets agree to pay higher prices for their products, whilst demanding consistently high quality levels, on-time deliveries every time, in smaller batches. The supermarket suppliers, on the other hand, are faced with higher raw material costs, higher salaries, higher energy costs, short batch runs and more frequent product change overs.

This means that if the supermarket suppliers continue to do what they have always done in the management of such increasing demands and complexity, they are likely to continue to get more of what they don’t want: more quality issues, more non-conformances, higher reject rates, more batch rejections, more waste, reduced efficiencies and punitive fines for non-compliance.

Total Compliance

Clearly, if the supermarket suppliers are to stay in business and to thrive, then they have to find ways to guarantee total compliance 100% of the time, including ontime deliveries, but at lower manufactured cost.

Roy Green, Managing Director of Harford Control says “We believe these converging dynamics can only be cost effectively achieved where the product packers are prepared to look at doing things differ-

Best of the Best OEE.

Production Schedule download from ERP.

ently in order to minimise risk, reduce wastage and reduce the overall cost of their manufacturing operations. This is often talked about but very little in evidence, principally because it means a radical change away from paper based systems and significant investment in automation, real time information management, prioritisation, visualisation and information distribution.

“Without such investment, operators, faced with the day to day management of such complexity, will continue to make costly mistakes, and to blame people for making such mistakes when trying to handle such complexity, is like blaming people for being human.”

the elimination of coding and labelling errors, increased quality consistency, improved operational discipline, reduced materials wastage, better manpower and materials utilisation and improvements in efficiency/OEE by as much as 40%.

“One of our clients recently shared with us that by directly acting upon the prioritised information generated within the system, they were able to reduce product changeover times from one hour and 28 minutes to just 26 minutes!”

Roy Green concludes: “All our evidence to date suggests that the successful management of complexity, coupled with sustained performance improvement is highly dependent upon real time, accurate information, made highly visible to all stakeholders. When this happens and operational personnel begin to see the benefits in action, then the all important buy-in for such systems accelerates and quickly becomes the new standard. When this happens, paper-based systems permanently become a thing of the past and forests are saved.” J

Continuous Performance Improvement

He elaborates: “During the last five years, we have seen an increase in the use of integrated and automated systems which, at their best, will largely remove the incidence of operator error by automatically setting up whole production lines and, Top Losses by Time. through the same system, analysing and prioritising actual line performance in real time. Making real time informa“Making the simple tion highly visible through powerful modern metrics such as OEE headlines complicated is commonplace; the top production losses and thereby making the complicated helps to drive continuous performance improvement. The net result of all of simple, awesomely simple, this is total compliance, 100% of the time, at lowest manufactured cost. that’s creativity.” Charles “Where we have already helped comMingus. panies to achieve these objectives, we have seen complete transformations in FOOD & DRINK BUSINESS EUROPE, JULY 2012

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I LEAN MANUFACTURING

Implementing an OEE Solution at Robert Wiseman Dairies (Bridgwater) obert Wiseman Dairies processes and R delivers over 30% of the fresh milk consumed in Britain, every day. With an investment of over £80 million the company commenced production at its latest dairy at Bridgwater in Somerset in December 2008. The company now employs in excess of 4,800 staff across six dairies and fifteen distribution depots throughout the United Kingdom and the 325,000 sq m dairy at Bridgwater is capable of processing 500 million litres of milk per year.

alert specific personnel in real-time of particular incidents and events on the production lines.

Implementation

The Issues

As part of its ongoing initiative to drive efficiencies across the supply chain, Robert Wiseman Dairies decided to invest in an OEE (Overall Equipment Efficiency) Program. Having initially developed an inhouse OEE software solution for the older dairies, with the opening of the Bridgwater dairy the business decided to investigate OEE software solutions from specialist software providers.

Critical to the success of the Bridgwater investment was the early achievement of the plant’s efficiency goals, so the OEE initiative was implemented as part of a ‘Lean Toolkit’ and a SMART (Specific, Measurable, Achievable, Realistic, Time based) Continuous Improvement Program In order to support the delivery of the dairy’s efficiency goals, the business decided that it needed a ‘best-of-breed’ OEE Performance Management solution and following the development of an in-depth business requirements specification, Robert Wiseman Dairies chose OEEsystems’

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PerformOEE™ Performance Management Solution to be implemented at the Bridgwater dairy.

The Solution

According to the RWD’s Project Manager, Andy Anderson,“the primary reasons for choosing to work with OEEsystems was the powerful, graphically-rich software, PerformOEE™, combined with the impressive expertise and track-record of their Operational Improvement Consultants and Technical Team. Early on in the engagement OEEsystems developed an in-depth understanding of our business, both technically and operationally, and demonstrated a solution to meet both our existing and future business requirements.”

PerformOEE™ from OEEsystems is the premier Manufacturing Intelligence and Operations Performance Management solution, used by the world’s leading progressive manufacturing companies as their preferred application for managing real-time operational performance improvement.

Providing actionable information for Lean Manufacturing, Six Sigma and other Operational Excellence programs, PerformOEE™ delivers real-time Production Performance Improvement based on accurate, real-time Manufacturing Intelligence.

For the Bridgwater solution, OEEsystems also installed ACCELERATE™ - DMAIC Project Management software to manage the projects which are identified by the PerformOEE™ software. Also installed is MyAlert™, a communications module to FOOD & DRINK BUSINESS EUROPE, JULY 2012

At the Bridgwater dairy PerformOEE™ was installed on all the production lines over a period of twelve weeks and integrates with the equipment PLC’s, the in-house LPS (Line Production System) as well as the CMMS software from Mainsaver.

Andrew Rice, Technical Director of OEEsystems comments: “Our PerformOEE™ software is designed to be configured to a wide range of business environments – high volume, high mix, in both harsh and regulated (GMP) environments.

While the technical implementation in RWD is impressive, the real challenge is to ensure that the software is configured to identify the operational performance losses and establish the true root causes of OEE losses. We worked closely with the RWD team to integrate the software with their Daily Operations and Continuous Improvement Program.”

A goal of the implementation was to minimise the requirements on the Line Operators to enter data into the system, always a challenge for real-time data collection systems. For the online Operator Interface (HMI), OEEsystems chose DLoG IP67 rated terminals with wall-mounted large-screen plasma screens used to display the performance of each line.

Andrew Rice notes: “We want Line Operators to be able to use the software in real-time to drive operations improvements and not to be distracted by the need to

enter data into the system. Smart system configuration allows us to pick up work order details, good/reject quantities and different types of changeovers without Operator intervention. In fact in the RWD implementation we have built our detailed knowledge of the dairy operation into the software, allowing it to provide advance warning of potential OEE losses and ensuring that the Line Operators take action to prevent these losses.”

The Results

After an initial twelve months working with OEEsystems, the Bridgwater dairy is delivering impressive improvements. OEE improvement has increased by more than 10% and is on track to deliver the same

again over the next twelve months. Pete Twiss, Site Manager at Bridgwater comment: “PerformOEE™ is fully integrated into our daily operations, morning meetings, shift handovers, short-interval control and Engineering and Operations Reviews. The software quantifies opportunities, identifying and tracking projects to deliver improvements and the OEEsystems team has helped us deliver improvement projects and train our teams on operational improvement and problem solving techniques.”

testing and acceptance phases and to develop agreed OEE performance criteria with the suppliers of new production equipment. J

The Future

OEEsystems’ PerformOEE™ software continues to evolve and the team at Robert Wiseman Dairies in Bridgwater continue to drive requirements for more detailed reporting and new performance reports.

In a technologically complex and advanced processing plant, the company is also using the PerformOEE™ software to enhance and improve the production control logic and to optimise the interaction of different pieces of equipment on the line.

And the company plans to use OEE as a metric to benchmark the performance of new equipment during the commissioning,

Kinnerton Confectionery Selects Aras Enterprise PLM innerton Confectionery, Britain’s K largest independent manufacturer of chocolate and novelty confectionery, has selected Aras enterprise PLM to drive productivity, improve efficiency and optimise product development. The Aras PLM solution suite will support Kinnerton’s large and diverse product portfolio through their Concept to Launch Process, workflow and process management, and product costing.

Kinnerton Confectionery specialises in character merchandising and produces private label and novelty confectionery for Britain’s largest retailers as well as many famous brands. Committed to innovation and never standing still, the company produced 20 million Easter eggs in 2012 and develops more than 400 new products a year.

“We were looking for a solution that would streamline our new product development process and enable us to release

new products into production on time. We also needed to move away from a multitude of documents to a single accurate source of product information and we wanted to be able to track the status of projects and deliverables against defined processes,” says Matthew Davies, programme manager at Kinnerton.

“Aras Innovator is the platform that enables us to meet these objectives,” he adds. “The technology is very flexible and does not require large investment in specialised technical resources to deploy. I had previously associated PLM systems with engineering-based industries but we have found that PLM is highly appropriate to any CPG (consumer packaged goods) and Food and Beverage companies that are engaged in product development,” Peter Schroer, president of Aras, comments: “Like many FOOD & DRINK BUSINESS EUROPE, JULY 2012

food and beverage companies, Kinnerton must manage very complex custom processes and short seasonal product cycles while maintaining extremely stringent health, regulatory and compliance requirements. Aras’s unique combination of advanced functionality and highly flexible, easy to use technology provides Kinnerton and companies like it with a strategic competitive advantage in a highly competitive market.”

Aras is a leading provider of enterprise open source Product Lifecycle Management (PLM) software solutions.

Customers include Motorola, Freudenberg, GE, Hitachi, Lockheed Martin, Textron and TEVA Pharmaceuticals. For additional information visit www. aras.com. J 31

Introducing the perfectly portable cow

Barrier for UHT Milk Pouch EVAL™ EVOH adds protective gas barrier properties to UHT milk pouches. 1 mm of EVAL™ has the same barrier as a 10 m wall of LDPE! With such high performance, milk stays fresher longer (without cold chain), reducing waste and saving energy. Light weight and safe in use, packaging materials and costs are reduced without compromising on function.

Last but certainly not least, EVAL™ resins are recoverable and recyclable. We may not have created a portable cow, but with EVAL™, the barrier UHT pouch may be the next best thing.

Learn how EVAL™ helps optimize packaging at www.eval.eu

I UHT PROCESSING

The UHT Milk Pouch – Optimising Packaging With EVAL™ EVOH magine a plastic wall that is 10 metres thick. Not very much is going to get Ithrough a barrier like that. Now imagine that the same protective function can be realised with only 1 mm. With EVAL™ it can. In fact, it normally takes just a few microns of this EVOH copolymer to create an amazingly effective gas and aroma barrier.

EVAL is usually coextruded with standard PE, PP and PS to make a coextruded “multilayer sandwich” structure, which can be laminated to support films. In the case of flexible food packaging, the EVAL layer may be as thin as 2-8um (thus a very thin sandwich indeed). Yet this extremely small amount of packaging material provides the functional gas and aroma barrier to the entire structure. This protects freshness, prolongs shelf life and reduces waste.

Improved Efficiency With EVAL, transparent all plastic-structures can offer real alternatives to aluminium foil, glass and metal, without having to compromise on function. Packaging containing EVAL can be adapted to just the right size, shape and proportion, making packing, transport and distribution as efficient as possible. In other words, lighter weight and smarter designed packaging means fewer trucks on the road for the same amount of value. Energy consumption is more efficient, and costs are reduced.

A good example of optimised packaging is the barrier UHT milk pouch.

5-layer film structure.

EVAL can add the required gas barrier properties to structures made of renewable materials, like PLA, paper or cartonboard.

In addition to oxygen, EVAL is proven to provide an outstanding barrier against the migration of MOSH and MOAH mineral oil dyes that may be present in recycled paperboard, protecting packaged food.

EVAL is well aligned with trends in the Sustainability movement, which increasingly focus on avoiding waste while minimizing the amounts of materials used.

Packaging is necessary to avoid waste, but the packaging itself should be optimised: it must retain its function, but reduce environmental impact as much as possible at all stages of the packaged product’s life cycle.

Optimised Packaging A good example of optimised packaging is the high-barrier UHT milk pouch. The package itself is a multilayer flexible pouch that contains a black layer to protect against light, and an EVAL barrier to project against oxygen gas and outside odours. The milk is sterilized at high temperature, and the EVAL provides the necessary protection to ensure freshness for a shelf life of at least three months, and distribution without cold chain.

Getting rid of the cold chain requirements opens up entirely new markets, since special infrastructure highand distribution within only a few days are not longer necessary. Even FOOD & DRINK BUSINESS EUROPE, JULY 2012

where they exist, no cold chain and minimized packaging means less energy use and lower lifetime footprint for the product.

Better yet, the packaging costs are lower than those of many alternatives, making the product more affordable (especially important in developing markets). The small amounts of all-plastic packaging waste including EVAL can enter normal plastic recycling streams or be safely recovered for energy production. In the future EVAL may be produced from renewably-sourced raw materials that will not disrupt global food chains.

World Leader EVAL EVOH resins and films are products of Kuraray Co. The world’s first commercial EVOH, production began in Japan in 1972, and has grown rapidly. Since then new sites have been built in the USA (serving the Americas) and Belgium (serving Europe, Africa, Middle East). All three sites have technical development centres that help with the optimisation of packaging structure design. Kuraray remains the world’s leading company in EVOH production and development.

EVAL was originally designed to help make packaging efficient, convenient, safe and affordable. After 40 years of development, EVAL continues to help optimise packaging without compromising on function.

For further information contact Kuraray (EVAL Europe nv) at Email info@eval.be or visit www.eval.eu. J 33

I UHT PROCESSING

First Europe-wide Life-cycle Assessment For UHT Milk Packaging recent, Europe-wide life-cycle assessment A conducted by the Institute for Energy and Environmental Research (IFEU) has confirmed that, compared to disposable HDPE and PET bottles, carton packs for UHT milk have a significantly better environmental profile ? particularly with respect to CO2 emission, use of fossil resources and consumption of primary energy. In the 1litre format, carton packs generate 34 per cent less CO2, use 56 per cent less fossil resources, and consume 30 per cent less primary energy compared to HDPE multilayer bottles; when compared to disposable PET bottles, these figures are 45 per cent for CO2, 57 per cent for fossil resources and 36 per cent for primary energy.

The comparative, independently verified study of the environmental impact of those UHT milk packaging solutions with the greatest market relevance in Europe sees the good performance of the renewable main raw material and the resource-efficient use of materials as the key factors contributing to the carton pack’s positive results. Carton packs are already manufactured by around 75 per cent from wood, a sustainable, completely renewable and bio-based resource.

Throughout its life cycle, every product has demonstrable environmental impacts – and so packaging does. Life-cycle assessments help to obtain credible, scientifically proven and reliable facts on these impacts. Michael Hecker, head of Group Environment, Health & Safety at SIG Combibloc: “Our objective was to obtain valid facts about the environmental performance throughout the life-cycle of all current market-relevant packaging solutions for UHT milk. In Europe, alongside carton packs the prevalent packaging solutions include HDPE and PET multilayer bottles in the 1,000 ml volume. In light of this information, we commissioned the Institute for Energy and Environmental Research in Heidelberg to carry out a comparative, Europe-wide life-cycle assessment studying the environmental impacts of these packaging systems – naturally, in accordance with the ISO Standards 14040ff for life-cycle assessments.”

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Comprehensive Environmental Profile In the latest life-cycle assessment, all key factors and processes within the life cycles of the various packaging solutions that are of relevance for the product’s environmental performance were evaluated: beginning with the extraction and refining of the raw material used to make the packaging, through the processes of manufacturing and transporting the finished packages, the packaging of the beverage, and distribution up to the retailing stage, right up to the recycling or disposal of the packaging after use. At each stage of the product life-cycle, the key environmental impact categories relevant to the resource and the emission-related categories were investi-

gated and evaluated.

In terms of resources, factors such as the consumption of fossil resources, the amount of primary energy used and the use of nature are looked at. With respect to emissions, it is the criteria relating to climate change measured in CO2, the particulate loading of the air and the eutrophication and acidification of soils and watercourses that are of interest.

At present, the key environmental impact categories world-wide are emission of greenhouse gases, consumption of fossil resources and use of primary energy sources.

Main Criteria: Material and Quantity The results of the current study show clearly that the environmental impacts produced by a UHT milk packaging during the packaging life-cycle are determined first and foremost by the material from which the packaging is manufactured, and how much of the FOOD & DRINK BUSINESS EUROPE, JULY 2012

material was used. In this context, the current life-cycle assessment proved that the carton pack offers significant benefits - with respect to the use of resources and in terms of greenhouse gas emissions.

The specific properties and the composite structure of the carton pack have a beneficial effect in nearly all of the environmental impact categories and especially in all the important ones like ‘Consumption of fossil resources’, ‘Use of primary energy sources’, and ‘CO2-emission/climate change’.

Compared to 1-litre HDPE multilayer bottles (the UHT milk packaging solution that has the greatest market relevance in Europe after the carton pack), the carton pack generates 34 per cent less CO2, uses 56 per cent less fossil resources and consumes 30 per cent less primary energy; when compared to disposable PET bottles, these figures are 45 per cent for CO2 emissions, 57 per cent for fossil resources and 36 per cent for primary energy.

Above all, the resource-efficient use of raw paperboard, which is manufactured using a high fraction of renewable energy, and the low weight of a carton pack contribute significantly to its favourable environmental performance. Carton packs use significantly fewer fossil resources than HDPE and PET bottles, because the carton is manufactured by around 75 per cent from pulp fibres obtained from wood, a renewable resource.

For this reason, in the 'Use of nature' environmental impact category, the carton pack lags behind the packaging solutions manufactured from fossil resource-based raw materials. In contrast to finite resources, however, with responsible forest management, there can be a constant supply of this renewable raw material.

Another positive effect is that with sustainable forest management, wood is carbonneutral and therefore does not alter the CO2 balance of the atmosphere. The reason for this CO2-neutrality is that while they are growing, trees extract carbon dioxide from the atmosphere and store it. When they later burn or decay, they release exactly the same quantity of CO2 that they absorbed during their lifespan. J

I PACKAGING INNOVATION

Continued Success For DS Smith Packaging at EFIA 2012 wards continue to flow into DS Smith A Packaging with the recent presentation of Gold, two Silvers and a highly commended accolade from the European Flexographic Industry Association (EFIA).

The competition recognises outstanding flexographic printing, and adds to the high tally of awards DS Smith has received over recent months from WorldStar, Starpack and UK Packaging Awards.

The Gold went to DS Smith Packaging Clay Cross for a highly impactful Jaffa Yard pack used in the major supermarkets during the Christmas period. The wide web four

colour pre-print on clay coated paper used water based inks and a registered varnish.

DS Smith Packaging Featherstone picked up a Silver award with a visually striking effect for Seabrooks Crips. The five colour print replicates a superb product shot and background texture that depicts a traditional potato sack. It demonstrates how DS Smith’s R-Flute® board is capable of being post printed in five colours to the highest standards.

Tony Foster, Sector Director, comments: “It is always a great honour to receive awards on behalf of our customers and their

brands. We have lots of skilled people making good use of our PackRight business tools, turning ideas into commercial innovations. At DS Smith Packaging we are focused on helping customers succeed at the point of sale, whilst reducing cost and carbon in a sustainable manner. It’s how we Make Ideas Happen.” J

Award of Excellence For DS Smith Packaging S Smith Packaging is delighted to receive the Starpack Award for Excellence for a D presentation pack designed and produced for Laithwaite’s Wine to package its Hugh Johnson wine selection. The 100% recyclable pack came as a result of Laithwaite’s request for a postal pack for fulfilment and supply of wine for internet sales.

The pack specifically developed to replace wood, provides space efficiency and excellent presentation of 6 wine bottles. The bottle is protected by the corrugated fitments which incorporate an anti-slip coating to prevent product slippage. This means the bottle stays firmly in place for the product label to be ‘on view’ to the consumer.

Branding is visible on the sides and top of the pack for identification and the pack features an easy opening device for the recipient of the delivery.

Terry Morgan, Market Development Director, DS Smith Packaging, comments: “This is a great example of supply chain efficiency coupled with improved presentation, it's innovation tailored to the customers’ marketplace and is fundamental to what we do at DS Smith. We are delighted to receive a total of five Starpack awards on behalf of our customers. The awards are a recognition of the hard work and talent of our design and technical teams.” J

Zorba Dips into the Benefits ten year partnership sounds like A a long time, and it is, but it is clear to see Zorba has packed in a great deal working with DS Smith Packaging since 2002. Zorba Delicacies Ltd is a specialist food company that has continued to expand ever since it was established in 1976, thanks in part to the supermarkets high demand for premium dips, spreads and sandwich fillings.

Tony Foster, Sector Director for DS Smith Packaging, confirms: “We are proud to have worked closely with Zorba Foods

for such a long time, our focus has been on optimum performance and on developing packs and automated packing systems for Zorba’s state-of-the-art production facility, based in Ebbw Vale.”

FOOD & DRINK BUSINESS EUROPE, JULY 2012

The breadth of the DS Smith offering means that the two companies have enjoyed many successes from major installations of a total of six tray erectors and two robotic packers, to development of retail ready packaging formats and several primary sleeves that are recognised as a leading pack style in the chilled product category.

It is clear that whilst Zorba ‘Brings flavour to life’, DS Smith Packaging ‘Make Ideas Happen’ for its customers - from factory floor to retail store! J 35

AutoCoding Systems Goes Dutch aving recently become a H Distributor in the Netherlands for AutoCoding Systems Ltd, Videojet Technologies BV hosted a Coding Integrity Seminar to highlight the importance of automatic date coding and packaging verification. AutoCoding Systems, an experienced Systems Integrator in this sector, and Videojet Technologies BV, leading provider of coding and marking solutions, were joined by speakers from the Food Safety Consortium, Tulip Ltd and SICK BV. The seminar, held at the unique DeFabrique venue in Utrecht, was attended by over 30 companies, mainly from the food and beverage sector, who were interested in learning more about coding integrity solutions and the associated benefits.

Coding Integrity The seminar was opened by Videojet General Manager, Alex Lever, who briefly explained what was meant by coding integrity - “ensures the correct message and variable data is printed in the correct place with the correct product packaging.” He described the financial implications resulting from errors in date coding or incorrect packaging such as cost of wasted materials, labour and production, as well as the less tangible damage to a company’s reputation. This was further emphasised by quotes from two major retailers: • “A large number of our product withdrawals are down to coding errors. It is essential that we have absolute confidence in our on-pack coding,” Head of Technical, ASDA (Wal-Mart).

• “At Sainsbury we are committed to the supply of safe and quality food.

Traceability is essential. Removing errors from the supply chain reduces wasted product and packaging, which helps to ensure products are affordable.

It also has to be good for the environment,” Head of Product Safety, J Sainsbury plc.

Dr Vivien Maitland, Ambient & Non Food Technical Manager of the Food Safety Consortium (the FSC) discussed the importance of coding integrity from a retailer’s point of view. The FSC is a nonaccredited auditing company providing food safety services exclusively for Marks 36

& Spencer and their global supply base.

Dr Maitland explained how coding and packaging integrity had grown in importance over the last few decades due to an increase in both the complexity of food packaging and many products sharing similar packaging. She cited numerous examples of product recalls from the Food Standards Agency (FSA) due to incorrect date coding, incorrect allergen labelling and incorrect packaging. To counter these problems, Marks & Spencer has introduced their own Code of Practice against which the FSC audits are carried out.

Mike Hughes, Managing Director of AutoCoding Systems Ltd, continued the Coding Integrity theme by giving a brief introduction to the company and identifying the main reasons for companies using their packaging line automation solutions.

Business Benefits With in excess of 200 lines installed in the UK, AutoCoding Systems’ customers are already enjoying numerous business benefits such as increased speed and reliability of line set-up, reduced job changeover time, reduction in human errors and the ability to manage complexities in packaging formats, as well as complying with various retailer codes of practice. A short practical demonstration given by AutoCoding Systems’ Technical Director, Robin Eatch and Solutions Engineering Manager, Stewart Lightfoot, illustrated the simplicity of the system to manage customers, orders, production lines, etc as well as the ease of use of the line terminal interface to set up the line devices and start a job.

This demonstration was followed by FOOD & DRINK BUSINESS EUROPE, JULY 2012

Peter Houthuijzen, Sales Manager of SICK BV who gave a brief outline of the versatility of scanning and inspection equipment and the successful partnership between AutoCoding Systems and SICK, particularly in the UK. The SICK equipment integrates seamlessly with the AutoCoding system and the wide range of SICK sensors and scanning products have been used extensively by AutoCoding in their packaging automation solutions.

The final speaker, Lorna Eddy, Barcode/Production Systems Manager of Tulip Ltd, considered coding integrity from a manufacturer’s point of view.

Tulip Ltd has been an AutoCoding Systems’ customer for many years and has implemented their coding and packaging integrity solutions across many lines in numerous sites. Lorna explained the process Tulip Ltd went through before choosing a coding and packaging verification system. The main motivation for buying a solution from AutoCoding Systems was the ability to utilise their existing hardware and software, where possible. Important too was having one master database that managed and controlled multiple devices on many lines, as well as fully satisfying Tulip’s specific date coding and packaging stipulations.

All of this, of course, had to be accomplished cost effectively. AutoCoding Systems satisfied these requirements and worked with Tulip to achieve their desired implementation within budget.

Following the presentations, visitors were able to discuss their specific circumstances and opportunities with Videojet, AutoCoding and SICK representatives as well as have a closer look at the demonstration line.

Mike Hughes commented: “We have been delighted with the positive response from the delegates. Coding and packaging integrity is a relatively new initiative in the Netherlands, but today we have illustrated the quantifiable business benefits it offers. We are sure that our partnership with Videojet Technologies BV will only serve to enhance their already successful product portfolio, as well as extend our reputation and customer base in the Benelux region.”J

National Flexible too Hot to Handle! he demands on packaging performance can sometimes T be high, especially in the food industry – and a new project for ovenable panninis to be served on commercial airlines was no exception. The panini needed to be re-heated inside the wrapper from a frozen state in a conventional oven, which required a high performance food-grade film able to withstand prolonged exposure to high temperatures without breaking down. In addition, the airlines wanted the film to be printed with a full colour photographic image to enhance the visual appeal of the product.

The pannini manufacturer commissioned film packaging specialists National Flexible for the project who are well-known for their expertise in the field of converting ovenable films for this type of application.

Working with their technical team they were quickly able to specify a suitable film and had knowledge of specialist inks that

would be ideally suited.

The special food-grade inks are able to withstand extremes of temperature (both hot and cold) and are resistant to moisture.

They have a consistent lay-down which allows for excellent image clarity when printing and the strength of their bond to the film ensures that there are no problems with ink-lift, cracking or flaking – even for surface printed films.

“This was a challenging project on several

levels,” says National Flexible’s marketing manager Andy Smith. “Fortunately we have a strong background in this area so we were able to make recommendations to the customer, which saved them a lot of time in the development and testing process. This meant that we helped them to fast-track the whole project and they could supply their customer more quickly.”

National Flexible are the UK’s largest distributor of polypropylene, laminates and special films.

Their custom factory is purpose built to be compliant with the latest BRC standards for food-grade packaging, and they have become well known as the preferred supplier of packaging films for the food, bakery, snack, confectionery and contract packing industries. For further information contact National Flexible on Tel +44 (0)1274 685566, E-mail sales@nationalflexible.net or visit www.nationalflexible.co.uk. J

Allen Customer Installs New 53XL Thermal Coder ith more than a hundred year’s of W blending and roasting coffee behind it, specialist company Ferns Coffee is definitely in business for the long haul and, as such, was keen to invest in quality marking equipment for its Basingstoke production line when its 30-year old printer needed replacing. It made perfect sense, therefore, to choose the new 53XL80 thermal transfer coder from leading supplier of high performance coding and marking equipment, Allen Coding Systems.

Justin Slawson, managing director of Ferns Coffee, explains: “We opted for the 53XL80 thermal transfer coder for a number of reasons, including the fact that it has a bigger print area than other models, plus it offers many of the advanced features of more expensive alternatives. It can also contend with a number of different applications and print a variety of

information such as fixed and variable text, data and graphics, bar codes, real time, sell-by dates, batch numbers, prices and source codes.”

FOOD & DRINK BUSINESS EUROPE, JULY 2012

Other benefits of the 53XL range include excellent print quality at 300 dpi; cassette ribbon loading; 600-metre ribbon capacity; print speeds of up to 40 packs per minute and the ability to cope with a potential increase in business and extra capacity if required.

As with other models in the wellproven 53 range, Allen Coding’s 53XL offers reduced maintenance and type changes, which results in lower running costs. This versatile and accurate thermal transfer coder represents an ideal choice for businesses looking to upgrade from hot foil technology.

Allen Coding is part of the ITW Coding & Marking Division which comprises Allen Coding Spain, Norwood, Diagraph, Trident and AC Codiergeraete. For further information contact Allen Coding Systems on Tel +44 (0)1438 347770 or visit www.allen coding.co.uk. J 37

Maximise Profit Margins, Minimise Packaging Waste With Trayless Flow Wrapping anufacturers of products that require M overwrapping for protection and to retain freshness are faced with two significant challenges. One is to reduce their environmental footprint to a minimum and the other is to cut costs. Both of these challenges have to be accomplished whilst providing customers with tough, attractive packages that not only provide the required protection but also promote brand image.

Redpack Pepper infeed.

Millions of tons of Polypropylene film are used to wrap billions of flow wrapped products every year. In many instances a carrying tray or punnet is also required to transport product through a flow wrapping machine.

If even a fraction of a gram of packaging material in each package can be saved the overall effect provides sizable benefits for the environment as well as giving lower packaging costs which in turn means higher profit margins for the manufacturer.

A significant trend can be seen in the move towards flow wrapping product without a carrying tray or punnet to bring immediate and significant savings in both packaging material and packaging costs. However the challenge to flow wrapping machine manufacturers is to ensure that the product is not damaged or bruised as it progresses 38

through the packaging machine. A range of sophisticated infeeds that can transport product to the wrapping module without damage have been developed and improvements have been made at the transfer point where the product passes from the infeed mechanism to the wrapping film.

A further innovation has seen the flow wrapping machine seam crimp and reel handling mechanism inverted, this arrangement is generally referred to as a Top Seal or Inverted flow wrapping machine and is most effective for delicate and difficult to transport products. The inverted design also enables further diversification of the product infeed arrangement so that it can be tailored to specific product/production needs.

Further film savings are achieved by designing the flow wrapping machine so that it will only flow when product is placed onto the infeed, if no product is detected the wrapping module stops so no empty bags are produced. This feature can be combined with product detection that causes the machine to alter the bag length to suit the length of the product, leeks, for example, can have significant length variation but with a “cut to length” arrangement the bag length is always just long enough. Both “no product no bag” and “cut to length” features achieve significant savings in film wastage.

Redpack Packaging Machinery is one of the companies that are leading the way in “Trayless” flow wrapping development. Over the last 16 months 60% of Redpacks machine production has been for wrapping product without trays and they have built an impressive portfolio of machine configurations.

Their latest triumph is leaving a rosy impression on apple growers and packers.

Apple growers have been demanding a flow wrapping machine that can wrap apples without a tray and in a format to suit supermarket shelves. However apples are notori-

Redpack HTS-BM Top Seal Flow Wrapping Machine

FOOD & DRINK BUSINESS EUROPE, JULY 2012

Redpack P325S trayless tomato flow wrapping machine with tomato feeder.

ously easy to damage and bruise so have to be handled very carefully “soft packaging” as it’s known in the trade. Redpacks P325S with “Frictionless Infeed” (P325-FI) has been developed to provide damage free transportation of fruit along the infeed and transfer onto the wrapping film.

As a further improvement Redpack have configured the P325-FI product infeed so that apples can be collated in “Soldier Packs” of 4, 6, 8 or 10 without the need for infeed change parts, pitch variation is carried out by a simple handwheel adjustment and with wrapping speeds of around 60ppm the growers and packers will be doubling the packing speed compared to their old packing method.

According to Redpack’s marketing manager: “Apple packers are very excited about the new P325S frictionless infeed flow wrapper because it doesn’t damage the fruit, can be easily adjusted for different size packs, doubles their packaging speed and saves them money on their packaging materials. You could say that it’s a real windfall for them” Of course it’s not just apples that can be wrapped on the P325-FI - other fruit of similar size, pears, oranges, lemons, etc will benefit from this new machine configuration.

It can be seen that working with a machine builder, such as Redpack, to develop trayless packaging for their products can provide real benefits for growers and packers It will help them to make a positive contribution towards the environment and to their company’s profitability by making savings in packaging material usage.

Additionally there may be a bonus from improvements in packaging speed and machine versatility that can provide a fast payback on flow wrapping machine investment.

For further information contact Redpack Packaging Machinery at Sales@redpack .co.uk or visit www.redpack.co.uk. J

I PACKAGING DESIGN

Win with eye-catching RRP ompetition on the shelf has never been so intense, says DS C Smith Packaging - the company

its primary value is its ability to take out cost and carbon in the supply chain through effective pack design. Simply, by making better use of space more can be loaded onto pallets, reducing the number of lorries needed for deliveries.

For DS Smith Packaging customers, what happens in store is a big part of the conversation. RRP has to be easy to identify, simple to open, the right size to fit the shelf and help to make replenishment quick to achieve optimum sales rates. Waste reduction and time efficiency in store, says DS Smith Packaging, should not be underestimated.

which services thousands of food and drink customers ranging from large international brands to small businesses.

But a huge advantage in the fight for the attention of the shopper can be delivered through Retail Ready Packaging (RRP).

By complementing the primary and secondary pack to positively influence shoppers at the point of purchase, RRP can ensure that the product is presented in the best possible way in that final contact point.

Visual Disruption The power of RRP is perhaps best described as ‘visual disruption’. Whether reinforcing brand positioning, driving impulse sales, visual disruption in an increasingly confused category or making new promotions succeed; RRP has the power to deliver value from the factory floor to retail store. In short, more sales, lower supply chain costs, efficient packaging operations and less waste.

With its first patent in RRP registered

16 years ago DS Smith Packaging, whose customer portfolio includes the likes of Cadbury, Seven Seas and Nestle, has led the way in RRP from the beginning. The company has become a hub of innovation in the industry with its Impact & Innovation Centre in Ely showcasing

continuing advances in the market in response to trends and customer needs without using any more packaging material than necessary.

Recent examples include Tiltmaster, which displays products on a backwards tilt enhancing visibility on shelf, the ShelfMaster range which can be packed on equipment intended for traditional cases and R-Flute®, a type of corrugated fluting offering an excellent print surface and protective performance in transit. The latter has seen leading FMCG brands experience a significant reduction in handling and storage costs since board thickness is 20 per cent less, resulting in more packaging being able to be delivered per pallet and per vehicle and a need for less warehouse space. Kellogg’s, for example, on just one product line, received 911 fewer pallets of inbound packaging, equating to a massive 24 full loads per year.

Effective Pack Design Effective RRP pack design tackles many themes, among them look and feel, helping shoppers navigate a fixture, controlling colour and identification, using sales space for optimum range, reducing stock outs and driving availability. But for many manufacturers FOOD & DRINK BUSINESS EUROPE, JULY 2012

The Future So, what does the future hold for RRP and DS Smith Packaging? The company envisages enhanced integration between RRP, primary pack design and POS. Early participation in planning and concept work with marketers is crucial in the delivery of well-scheduled and cost effective campaigns that effectively use every aspect of customer promotion.

Investment in innovation will also stay top of the agenda as shopper marketing evolves, says the company, with cost and

carbon reduction a key requirement for all new products.

Increasingly it seems that what used to be the humble brown box has now become part of the brand. J 39

I CONTRACT PACKING

Comprehensive Range of Services From Speedpak peedpak, the Dublin-based contract packing specialist, is a S“We key supplier within the Irish food and drink industry. are professional, fast and very competitively priced. We We are professional, fast and very competitively priced.

We place a very strong emphasise on quality and customer service.

We have an exceptional track record and have been operating very successfully since 1995.

We are a member of Guaranteed Irish.

Customers know that when they buy a product or service from us they are also supporting Irish Companies and Safeguarding Irish Jobs.

We are a socially responsible business and support our local community in a variety of ways.

If you would like to contact us in relation to any of our services you can call us on (01) 867 1707/2774 and ask to speak to one of our experienced Sales Team. Alternatively you can email us directly @ info@speedpak.ie or via the Contact Us section of our website www.speedpak.ie

YOUR LOCAL CONTRACT PACKING SPECIALISTS We provide the followingmanufacturing support services Bag Sealing | Polybagging | Drilling | Shrinkwrapping | Twin Packing | Shrink Sleeves | Labelling | Barcoding | Multipacking into retail size packs | Collating | Gluedotting/DS tape | Mail Insertion | Promotional Kits | Light Assembly | Label Printing | Storage

place a very strong emphasis on quality and customer service,” says Patrick McCarthy, Operations Manager of Speedpak.

“We have an exceptional track record and have been operating very successfully since 1995 from our premises at Clonshaugh Business & Technology Park, Dublin 17 which is ideally located close to the M50 and Dublin Port Tunnel.”

To give an example, one of Speedpak’s major customers is a leading specialist distribution and manufacturing group, which supplies a wide range of packaging products to its customers in the grocery and Patrick McCarthy, Operations food trade. Speedpak proManager of Speedpak. vides this customer with a total re-packaging solution by breaking down bulk quantities into pre-determined pack sizes and preparing them for re-sale.

This operation includes shrink wrapping, provision of identification labels, bar-coding, re-packing to customer requirements and quality management. A short term storage facility is also provided allowing the customer to access finished products on a call off basis.

By managing these activities Speedpak allows its client to concentrate on customer service and the development of new products. Speedpak is very happy to provide references from its many loyal and satisfied customers “Customers know that when they buy a product or service from us they are also supporting Irish companies and safeguarding Irish jobs,” he adds J

Units 5-7, Clonshaugh Business & Technology Park,Dublin 17, Ireland T: 01 867 1707 F: 01 867 1727 E: info@speedpak.ie W: www.speedpak.ie Reg. in Dublin No.: 234022, VAT No.: IE 8234022K.

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FOOD & DRINK BUSINESS EUROPE, JULY 2012

I CONTRACT PACKING

Alexir Partnership Shortlisted for BPIF Excellence Award in Innovation lexir Partnership, a leading direct food filling and packing the dried food content A contact contract packers and carton at its co-packing facility. manufacturer, has been shortlisted for a Alexir Partnership was recently awarded a BPIF Excellence Award in Innovation for the development and production of the latest launch from Premier Foods - the Batchelors Deli Box. In a category dominated by plastic pots, Batchelors wanted shelf presence for its range of pot snacks.

The ‘Deli Box’, developed for exclusive use

by Premier Foods, delivers excellent shelfpresence, practical use, fantastic branding and crucially stands out from the crowd.

The Deli Box concept ensures fitness for purpose combined with the ability to be packed at speed on the production line.

The resulting product can safely hold boiling water; prevents the contents leaching into the board; is sealed to avoid contamination in the supply chain but also opens easily for the consumer. Most of this product category is traditionally packaged in 100% plastic containers. The Deli Box range is made using virgin fibre board from I

sustainable forests and is widely recyclable in the UK. Batchelors has re-branded its entire range and the new Deli Box enables this branding to be displayed 360 degrees. This is a huge benefit against the traditional pack format which can only be branded on face and top.

From concept to shelf The Alexir Partnership conceived, designed and manufactured the packaging, as well as blending,

INNOVATION

I

Putting the 'Piing' into Packaging ntelligent Packaging Iafter Solutions is celebrating the new Piing microwavable ready meal range was awarded the 2012 Tesco Values Award for Innovation in chilled ready meals. IPS manufactured and supplied the microwaveable Desto pot for the range.

The Piing ready meal range marks the first launch of the microwavable version of IPS’s Desto cup, taking this innovative packaging format into a new product category. The Desto cup is already well established in the dairy and horticultural markets.

The combination of lightweight plastic inlet and paperboard sleeve offers the benefits of both materials. IPS produced the plastic inlet in transparent Polypropylene (PP) making it suitable for hot fill, freezing and microwave reheating. The inlet also acts as a moisture and gas barrier, ensuring the product integrity. The paperboard sleeve is completely recyclable and offers excellent design potential with reverse printing and cut out windows for increased product visibility, a big plus for the marketeers.

IPS’s Desto cup also ticks all the environmental boxes with a huge 66% reduction of plastic content when compared to conventional, injection moulded pack formats. The combination of plastic inlet and paperboard sleeve makes onward recycling quick and easy. J

Starpack Award of Excellence for the Batchelors Deli Box. The Starpack judges commented on its “fantastic stand-out against round plastic pots” and praised the “excellent design, use of material and branding - allowing great graphics & shelf presence.”

Tom Sene, sales director at Alexir Partnership, says: “We are thrilled to have partnered the Premier Foods team on this project, the results speak for themselves as it is a true representation of how, when combined, the Alexir partnership play a key role with its clients when bringing a new product to market.”

Jon Burton, brand director at Batchelors, comments: “We are excited about this new launch which combines innovative packaging with a strong brand and can help to grow the Pot Snacks category by attracting women to use pot snacks more frequently.” J

PET

Graham Packaging Increases PET Production Capacity at Etten-Leur id summer has traditionally been a busy period for M PET producers and having won some significant high volume customers Graham Pack-aging was able to increase production capacity at its Etten-Leur facility with the installation of a new blowmoulder.

The blowmoulder became available at short notice from one of the Graham Packaging sites in the US, and the type of machine perfectly fits with the two new account wins. Roeland Marijnissen, Graham Packaging EttenLeur's plant manager, says: “We are very busy at present, so the chance to get the pre-used machine from our colleagues in the US has meant we can increase production much quicker than having to wait for a new machine to arrive.”

The Graham Etten-Leur plant produces both custom designed and standard PET bottles for the food, dairy and beverage sectors. J

FOOD & DRINK BUSINESS EUROPE, JULY 2012

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Cost Effective Tooling From Faerch Plast Puts Pie in the Sky For Pork Farms hen Pork Farms, a leading UK producer W of pork pies and other savoury snacks, needed a new CPET tray that would fit in with its existing production line, the company consulted specialist manufacturer of quality plastic packaging for the food industry, Faerch Plast. Pork Farms was rewarded with brand new packaging at a cost-effective price due to the use by Faerch Plast of existing tooling.

Pork Farms, which already uses a 12-compartment tray produced by Faerch Plast for its Christmas party range, required a six-compartment tray for its mini quiche selection.

Paul Leese, chief engineer from Pork Farms’ Palethorpes factory in Market Drayton, comments: “A major consideration was the need for the new packaging to conform to our existing carrier plates. Faerch Plast was able to create a design that allowed two trays to fit side by side in one carrier plate. They did this using an insert tool to one of their existing tools, which significantly reduced the cost of tooling for us.”

The black 650micron CPET trays, which can be baked in the oven or microwave, contain three mini quiche Lorraines and three cheese and onion quiches, and have just been launched into two

major UK supermarket chains.

Pork Farms has also just started to use perforated APET trays manufactured by Faerch Plast for sausage rolls sold by Tesco supermarkets.

Pork Farms’ site in Shaftesbury is also using similar Faerch Plast packaging for Mini Eggs and Southern Fried Chicken Straws sold at Tesco stores.

Since it was established in 1989, Faerch Plast has built an unrivalled reputation for high quality plastics packaging products, supplying major blue chip customers in the ready meals, fresh meat, cold foods and snacks, and ambient food sectors with a wide range of containers and trays produced from PS, CPET, APET, PP, PLA, MAPET® and AMPET®.

Danish parent company Færch Plast has opened a state-of-the-art manufacturing facility in the North East of England. A large part of its production for the UK market will be moved to the new Durham-based plant as part of an on-going strategy to secure costs, improve efficiencies and minimise its environmental impact. For further information contact Faerch Plast on Tel +44 (0)20 8254 2300, Fax +44 (0)20 8254 2301, Email uk@faerchplast.co.uk or visit www.faerchplast.co.uk. J

Sainsbury’s Celebrates Queen’s Jubilee With RPC upermarket giant Sainsbury’s selected S containers from RPC for a range of vintage-style confectionery and snacks to celebrate HM The Queen’s Diamond Jubilee in June. The 760ml standard PET vases were supplied by RPC Blackburn in a clear polymer which allowed Sainsbury’s to maximise the colourful contents, and reflected the traditional feel of the limited edition range.

They were crowned with a gold 89mm cap supplied by RPC Halstead.

Sainsbury’s introduced a 14-item heritage range for the Jubilee, including jars of vintage sweets such as Liquorice Allsorts and Dolly Mixtures in the RPC vases, as well as preserves, soft drinks and beer. The labels were based on historic Sainsbury’s packaging and the retailer’s early poster designs. J

Quaffer – Something Completely Different From M&H &H worked with Quaffer-UK to M help create its new Quaffer - a Double Bubble Shot Glass with built-in

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chaser element. Quaffer-UK commissioned M&H to create this bespoke custom moulded shot glass in clear PET to enable the different coloured liquids to be viewed with the added benefit of being unbreakable. It measures 50ml on the bottom and 25ml on top and the liquids stay separated until consumed. These glasses have been launched in Yates bars throughout the country.

Darren Hulme of Quaffer-UK says: “Our aim was to create a unique shape which was attractive and functional so that it delivered the best shot possible.

We worked with M&H to create the FOOD & DRINK BUSINESS EUROPE, JULY 2012

Quaffer Double Bubble Shot Glass which is the most user-friendly shape around and enhances the whole customer experience.”

M&H has a full custom moulding service for exclusive designs and virtually everything is conducted in-house, on site – from concept design, through toolmaking, production, artwork and decoration.

In addition the company has a portfolio of over 1,200 standard products offering cost-effective packaging solutions.

For further information contact M&H Plastics on Tel +44 (0) 1502 715518, Email marketing@mhplastics.com or visit www.mhplastics.com. J

I COLD STORAGE TECHNOLOGY

High Energy Losses in Cold Stores are a Thing of the Past It is a world premiere, it revolutionises door technology in cold stores and sits at the top of deep-freeze doors with an extremely low heat transfer: the EFA-TK-100 featuring EFA-AFM. With the development of this product Efaflex has designed a highspeed door that sets new standards for equipping deep-freeze areas in cold stores. n the light of climate change and rising raw Itowards material prices, there is a growing trend developing low-energy products and equipment to improve the energy balance of companies. With a heat transfer of down to 0.74W/mÇK at dimensions 3000 x 3180mm, this low-energy door from industrial high-speed doors specialist Efaflex

achieves more than any other deep-freeze door has achieved so far. A dynamic door blade and AFM spiral track (Active Framework Mechanism) ensures the door blade remains pushed against a seal around the door frame when closed, and thereby seals off the deep-freeze area prac-

tically hermetically.

Unlike other high-speed spiral doors, the spiral box of the EFATK-100 featuring EFA-AFM is mounted on the outer, warm side of the door. This protects it against increased wear due to cold. Unlike EFA-ISO-K, contact surface heaters are employed, installed in the seal strips around the frame, the lath seals and the contact edge strip, heating the contact surfaces to the door blade, the floor and the individual laths of the door blade.

High-speed doors between deepfreeze areas down to -30 C and areas at 0 C must be especially well insulated and tight. The excellent insulation of the EFA-TK-100 featuring EFA-AFM is achieved for the first time using 100 mm-thick EFATHERM laths. The laths are individually fixed to the hinge chains. Accordingly, the laths exert no force since the rollers only need to bear single laths. This ensures a long life of the motors and makes the laths individually changeable.

FOOD & DRINK BUSINESS EUROPE, JULY 2012

The TLG infrared door light grid, a worldwide unique and fully self-monitoring safety system, can be integrated into the new Efaflex deep-freeze door. Even more features can be easily integrated for greater safety, such as approach area surveillance, laser scanners and an additional external light grid. J

World’s first: Efaflex deepfreeze door hermetically seals deep-freeze areas.

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I TEMPERATURE CONTROLLED LOGISTICS

Quality Logistics From Virginia Transport irginia International Logistics is a famiV ly-run business based in Virginia, County Cavan, 80 kilometres northwest of Dublin.

The company has been in existence for over 30 years, and over that time has seen its fleet grow to over 65 articulated trucks and 250 trailers.

Virginia International Logistics strives to both consolidate its current position as a

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market leader in the provision of quality logistics and to explore further expansion opportunities with other potential customers.

Services Virginia International Logistics is committed to providing a first class personal and professional service whilst also offering the best logistical solution, tailored specifically to each customer. The company specialises in national and international temperature controlled, dry freight and containerised transport. It also offers accredited warehousing facilities.

Virginia International Logistics has been heavily involved in the transportation of food and drink produce (temperature controlled and ambient) throughout Ireland, the UK and Continental Europe. It currently works for a wide mix of food and drink exporters and importers throughout Ireland, the UK and Continental Europe.

FOOD & DRINK BUSINESS EUROPE, JULY 2012

Virginia International Logistics currently services the following countries for customers: * UK * Norway, Sweden & Denmark * Holland, Germany, Belgium * France, Spain, Portugal * Italy * Eastern European Accession States.

Virginia International Logistics’ commitment to quality is reflected in its ISO 9001:2000 accreditation.

All work undertaken for customers is carried out in a professional manner and to the highest standards.

The Fleet Virginia International Logistics currently operates a state-of-the-art fleet of articulated tractor units and trailers, which consists of the following: * Over 65 modern tractor units, all of which integrate to Virginia International

Logistics’ GPS/SPRS Tracking & Fleet Management System. They are all part of a 3–5 year replacement programme, depend-

ing on their working environment. * Over 70 refrigerated trailers, ranging from Standard Splits, Multi-temps, Double Deck and Railers. All fridges have remote temperature recording equipment, allowing live temperature readings to be monitored in real time, via the GPRS * Mobile network. * Over 100 curtainsiders and euroliners. * Over 80 fixed and sliding skeletal trailers, suitable for 20', 40' and 45' containers. * Tankers and flat trailers.

Contact Ray Cole on Tel +353 86 248 9418 or ray.cole@virginia-transport.ie to

discuss any prospective business you may have or to receive a competitive quotation. J

Bernard Matthews Awards Storage and Distribution Contract to Norbert Dentressangle ollowing a competitive tender process, the F UK’s largest turkey farmer and supplier, Bernard Matthews, has appointed Norbert Dentressangle to manage its frozen and seasonal fresh national storage and distribution operation.

Established in the 1950s, Norfolk-based Bernard Matthews Farms now employs more than 2,000 people, farms over seven million turkeys each year and supplies a wide range of fresh and frozen turkey products to many of the major grocery retailers and foodservice providers. The new contract recognised Norbert Dentressangle’s ability to

In support of the new operation, Norbert Dentressangle has invested £1.5 million in new facilities and is employing advanced communications and order tracking systems to provide operational transparency and control.

The company’s advantageous twin-centre solution, combined with its service focus, food industry competence and commitment to continuous improvement were major fac-

tors in Bernard Matthews’ decision.

Richard Hall, Bernard Matthews’ Supply Chain General Manager, saye: “Norbert Dentressangle put forward a highly compelling solution, supported by robust and detailed operational plans, a proven track record and the backing of a large and highly professional international organisation, all of which gave us absolute confidence to select them as our partner.” J

I AUTOMATION

Egemin Sets Foot on Mexican Soil With AGVs gemin has signed a contract with La Costena, a Mexican producer of canned foods.

E Egemin is to install a new AGV system in the La Costena warehouse close to Mexico City. Seven laser-guided AGVs will transport pallets of chillies between the packing lines

Bernard Matthews Farms now employs more than 2,000 people, farms over seven million turkeys each year and supplies a wide range of fresh and frozen turkey products.

deliver an innovative solution to meet Bernard Matthews’ current requirements, along with further improvements through the continued development of the partnership.

Operating 24/7/365, Norbert Dentressangle is providing frozen and chilled storage and consolidation services within its shared cold stores at Easton and Lowestoft and is responsible for the picking and delivery of orders to around 500 delivery points throughout the UK and Ireland, typically on a Day 1 for Day 2 basis.

and the distribution area.

The new system will be installed without interrupting production on the existing system and will increase supply and dispatch capacity by up to 15%. The contract is valued at approximately Eur1 million. The installation is scheduled to start in March 2013 and will take approximately two weeks.

“It was our guarantee that the move from the old to the new system would not disrupt normal operation that won us the contract,” says Yves Gazin, global strategic solutions manager at Egemin. “Our plans ensure that everything can be done at once while production continues on the old system.”

The new system consists of seven laser-guided Load Transfer Vehicles (LTVs), each equipped with two roller conveyors at top and bottom. The top roller conveyors transport full pallets containing packed cans to the distribution area. The bottom roller conveyors carry empty pallets from the distribution area to the packing lines. This gives La Costena up to 15% more transport capacity using the same equipment. The existing routes can be optimised at any time and La Costena can also add new routes, allowing the AGVs to be used more flexibly.

One of Egemin’s specialisms is supplying the food sector. La Costena is the biggest producer of red peppers and tomato puree in Mexico. For further information visit www.egemin.com. J FOOD & DRINK BUSINESS EUROPE, JULY 2012

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I NATURAL COLOURS & FLAVOURS

Kalsec Shows Leadership in Natural Colours and Flavours Food and drink processors globally are turning increasingly to the use of natural colours and flavours in response to growing consumer demand for natural and authentic products. alsec, the US-based international proK ducer of natural colours, flavour extracts, antioxidants, hop extracts and nutritional ingredients for the food, beverage, and pharmaceutical industries, is at the forefront of this development.

The company’s products are derived from natural herbs, spices, vegetables and hops, and are translated into easy-to-use liquids ideal for most formulations. Indeed, Kalsec is the only company whose expertise and resources encompass a full line of allnatural, innovative products and solutions.

Over the last 50 years, the family-owned company has developed into a global expert not only in spice and herb extraction, and has pioneered breakthrough products and processes in antioxidant management and colour stabilisation. The

introduction of innovative products such as Herbalox® Seasoning and Durabrite® high stability colours are just two examples of Kalsec developments which have had a major impact.

World Leader Kalsec currently operates in over 70 countries worldwide. As a leading global producer of herb and spice extracts, Kalsec provides one of the largest ranges of culinary extracts and natural colours backed with unsurpassed stability and technical expertise.

According to Paul Filby, Vice President International Business, Kalsec, the growing

For example, the company recently introduced a range of ethnic solutions for Middle Eastern foods and stable natural red colours for food and beverage applications.

“Since Kalsec extracts are standardised based on a variety of quality parameters, manufacturers are assured consistency not often found in many products derived from nature.” He adds: “Kalsec’s vast research provides insight into how its products perform which in turn gives customers assurance of performance.” interest in natural colours and flavours by European food and drink manufacturers is being driven by two key factors.

“Awareness of the Southampton study suggesting a link between hyperactivity and the use of certain food colours has increased consumer concern and added to regulatory and labeling activities,” he explains.

Additionally, Paul Filby indicates that “increased demand for ethnic foods has evolved to require more regional and authentic spice blends.”

Advantages and Benefits Because of its expertise in producing extracts from herbs and spices found in nature for uses in a variety of food and beverages, using Kalsec as an ingredients partner provides a number of advantages and benefits for food and drink processors.

“Kalsec has developed unique technology to stabilise colours useful in very difficult and susceptible food and beverage products. This provides food and beverage manufacturers new product development opportunities as well as alternatives to synthetic colours currently found in food and beverage products,” Paul Filby points out.

In response to the growing consumer demand for simpler and more natural products, Kalsec is continuing to expand its offering of natural colours, herb and spice extracts and natural antioxidants as well as providing more solutions in making natural products with improved stability.

FOOD & DRINK BUSINESS EUROPE, JULY 2012

Sustainability Sustainability is becoming increasingly important to consumers and food and drink manufacturers. Kalsec has been a pioneer in the sustainable sourcing of natural ingredients and consequently plays a major role in this regard within the international food and drink processing industry.

“For over 50 years, Kalsec has been supplied by nature and in response has developed ingredients using ethical, safe and environmentally sustainable practices,” says Gary Augustine, Executive Director of Marketing, Kalsec. “As a global citizen, we continually develop goals to respect and nurture the environment and the communities from which we derive our livelihoods. Kalsec develops specific goals include reducing water consumption, energy and the recycling of packaging.” J

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I MARKET FOCUS

Healthy Outlook For Nutraceutical Products Increasing consumer concerns about healthy living are continuing to drive strong growth within the $35 million nutraceutical products market in Europe. erived from a combination of the words ‘nutrition’ and ‘pharmaceutical’, the term nutraceutical was first used by Dr Stephen DeFelice, founder and chairman of the Foundation for Innovation in Medicine in the US. He defined nutraceutical as “a food (or part of a food) that provides medical or health benefits, including the prevention and/or treatment of a disease.”

The definition has been broadened to encompass functional ingredients such as vitamins, minerals, amino acids, fatty acids and probiotics. Nutraceutical products now incorporate isolated nutrients, dietary supplements and specific diets to designer foods, herbal products and processed foods such as cereals, soups and beverages which are claimed to optimise health and nutrition.

Frost & Sullivan divides the nutraceutical market into two segments - functional food and beverages, and dietary supplements.

erlands and Sweden have emerged as the major nutraceutical innovation hubs, while Great Britain and Spain have become key test markets for new products.

D

Surge in Growth The global nutraceutical market is currently experiencing a surge in growth, according to Frost & Sullivan. Between 2002 and 2010, the global nutraceutical industry grew at an annual average growth rate (AAGR) of 14.7%. Frost & Sullivan expects the industry to maintain comparable growth until 2015, driven by rapid expansion in India, China and Brazil.

The present consumer preoccupation with health and wellness is fuelling growth in the nutraceutical products and nutraceutical ingredients markets. Chiefly used in functional foods and dietary supplements, Frost & Sullivan defines nutraceutical ingredients as natural bioactive, chemical compounds that have health promoting, disease preventing or medicinal properties.

European Market France and Germany are the two largest nutraceutical markets in Europe followed by Italy, Switzerland and the UK (see Table).

Driven chiefly on the basis of health claims, the $35 billion European nutraceutical products market is currently dominated by dietary supplements, which account for about two-thirds of sales, with functional food and beverages holding the balance.

The market is relatively fragmented with small and medium sized businesses dominant, resulting in lower advertising and marketing expenditure, which has limited mar-

The nutraceutical industry in Europe is sharply focused on innovation and new product development.

ket growth despite the growing consumer interested and awareness in food content and nutrition.

Market growth in Europe has been driven mainly on the basis of ingredients rather than the finished product, which is reflected in the larger market share held by dietary supplements, although this segment is now approaching maturity.

European consumers are showing a distinct preference for natural food and drink products and this is reflected in a growing number of new functional foods and beverages, which are advertised chiefly on the basis of being free of additives and preservatives. As well as using natural ingredients, new product development is also tending to centre on health claims in order to maximize market penetration.

Focus on Innovation According to Frost & Sullivan, the European region encompasses some of the biggest names in the global nutraceutical industry, both in terms of product manufacturers and ingredient manufacturers. The nutraceutical industry in Europe is sharply focused on innovation and new product development.

Consequently, R&D spend has increased from 0.24% of the industry turnover in 2004 to between 0.8% to 1% in 2010. Due to its emphasis on product and ingredients innovation, the European market is central to the further development of the global nutraceutical industry.

Although developing nations such as India, China and Brazil have become key sourcing destinations for agri-based raw materials, Europe has evolved into a nutraceutical ingredient hub, according to Frost & Sullivan.

Within Europe, Germany, the NethFOOD & DRINK BUSINESS EUROPE, JULY 2012

Ingredients Development In addition to the shift towards natural ingredients, instead of synthetically manufactured ones, nutraceutical ingredients customisation is also moving to new delivery mechanisms and disease/condition specific formulations. Ingredients are also being developed to suit specific geographical regions and specific target groups. According to Frost & Sullivan, “nutraceutical manufactures have finally gauged that the one size fits all theory does not work in this market and products need to be customized to appeal to specific demographics within not only regional but also country-wise populations.”

The European market is also characterised by increasing consolidation, as reflected by DSM’s recent acquisition of Martek Biosciences and Dupont’s acquisition of Danisco. The major European nutraceuticals manufacturers are also seeking to become dominant globally through acquisitions.

Outlook Frost & Sullivan expects the European nutraceutical market to achieve a CAGR of 5.7% between 2010 and 2015. The main growth drivers will be the ageing population, the rising cost of healthcare and an increasing number of distribution channels, allowing greater accessibility.

However, growth will be hampered by the slow pace of regulatory approvals for health claims due to a heavily regulated market and a cluttered products market due to existing fragmentation. The high cost of product development and advertising resulting in increased product costs will be a further constraint. J $35 Billion European Nutraceuticals Market by Country Country Market Share France 24% Germany 20% Italy 12% Switzerland 12% UK 8% Others 24% Source: Frost & Sullivan Analysis

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Sunflower Lecithin From Cargill – An Alternative Emulsifier For Chocolate and Cocoa Products emand for sunflower lecithin is rising and is most marked in chocolate confectionery D and bakery products. From 2010-2011 the amount of sunflower lecithin used in chocolate confectionery increased by more than 60% – a growth rate which is forecast to continue in 2012. It is natural, safe, allergen-free and eco-friendly, and provides an alternative to soy-based products.

Cargill Cocoa & Chocolate has sunflower lecithin available as an alternative emulsifier across all product lines from cocoa powder to chocolate, including coatings and fillings.

“Developed through our T-Model for innovation, Cargill’s sunflower lecithin has been produced by Cargill Cocoa & Chocolate and Cargill Texturizing Solutions combining their knowledge and expertise to provide customers with a safe product they can trust, backed by comprehensive support,” says Rens de Haan, marketing and communications director from Cargill Cocoa & Chocolate. For more information email cocoa_chocolate@ cargill.com. J

First Official Validation of Positive Effect of Cocoa Flavanols arry Callebaut has become the first company in the EU to receive a positive B Scientific Opinion on a health claim on cocoa flavanols from the European Food Safety Authority. The European Food Safety Authority (EFSA) has issued a positive opinion on the company’s health claim dossier submitted by Barry Calleabaut last year.

Barry Callebaut received a health claim that “cocoa flavanols help maintain endothelium-dependent vasodilation which contributes to normal blood flow.” The company was able to provide evidence that the intake of 200 mg of cocoa flavanols (provided by 2.5g of high-flavanol cocoa powder or 10g of high-flavanol dark chocolate) positively influence blood circulation in the human body.

Since 2005, Barry Callebaut has carried

out more than 20 human clinical studies examining various impacts of cocoa flavanols on the human body. For these studies, the company used cocoa powder and chocolate products made through its own developed ACTICOA® process which results in high-flavanol cocoa products.

Barry Callebaut’s specific ACTICOA®

process is the outcome of years of research into ways of preserving cocoa flavanols. The company succeeded in maintaining up to 80% of the cocoa flavanols which would be destroyed for the most part during the conventional chocolate-making process.

If the EU Commission further approves the health claim, Barry Callebaut will have the right to use the cocoa flavanols claim for five years within EU countries. The company’s customers using its high-flavanol cocoa products would be able to apply the claim on their products and packaging, enabling them to differentiate their offerings from other products on the market and gain useful competitive advantage. Barry Callebaut sees considerable market potential for – among others – applications in chocolate drinks, cereal bars and biscuits. J

New Study Reveals Benefits of Multi-micronutrientfortified Milk and Cereals ilk and cereal products fortified with M iron and a combination of other micronutrients are more likely to help reduce iron-deficiency anaemia in children than foods fortified with iron alone, according to a new study commissioned by Nestle. Researchers from the Winterthur

50

Institute of Health Economics in Switzerland analysed the combined results of 18 published trials involving a total of more than 5,400 children.

They found consumption of milk and cereal products fortified with iron and other micronutrients - such as zinc and vitamin A - were associated with a significant increase in the level of haemoglobin in young children’s blood. Anaemia - the state of having too few red blood cells and therefore too little haemoglobin - is commonly caused by a lack of iron in the diet.

The researchers found single iron-fortified products increased haemoglobin levels significantly more than similar non-fortified products. However, multi-micronutrient-fortified milk and cereals produced even more significant increases in haemoFOOD & DRINK BUSINESS EUROPE, JULY 2012

globin than their single iron-fortified counterparts.

Young children and pregnant women are particularly vulnerable to iron deficiency because they need higher levels of the mineral for growth. The consequences of longterm lack of iron in the diet can include impaired mental development in children, decreased physical work capacity and impaired immune function.

The study was commissioned by Nestle and the Nestle Nutrition Institute. Nestle has more than 140 years’ experience in improving the micronutrient profile of food products through fortification. The company’s first fortified product was an iron-enriched version of its founder Henri Nestle’s original infant cereal ‘Farine Lactee’, launched in 1867. J

I PALLETISING/DEPALLETISING

Flexible Solutions From Goliath Packaging Systems oliath Packaging Systems has a palletisG ing/depalletising solution to suit your budget, available floor space, product type and output requirements. There are three different solutions available: Gantry Robot Compact, versatile robot picks products from an in-feed conveyor and precisely places onto the pallet. The gantry robot is quick and easy to install in an existing pro-

duction environment, being fully factory tested before delivery using your pre-supplied products and pallet patterns. With cutting-edge IPC control, it takes no more than 30 seconds to switch to a previously saved palletising programme, while new pallet patterns can be quickly generated using optimisation software such as CAPEPACK®.

The Gantry Robot, is available with sin-

gle, double or multiple palletising positions within a single framework, requires minimal maintenance, is easy to access and is delivered equipped with safety fencing and interlocked access door(s). All types of cases, even heavy and bulky ones, can be stacked to 2700 mm load height in order to fully maximise your shipping efficiency.

Pallet Loader Offered where the gantry or articulated arm robot may not suit the particular process requirements, the Layer Palletiser supports the underneath of the product at all times during row and layer formation stages and

The Articulated Arm Robot Where the gantry robot is deemed less suitable, the articulated arm robot is a tried and trusted solution to your higher speed single or multi-lane palletising requirements onto one or more pallets. Generally

rated at up to 20 cycles/minute at 160Kg maximum payload, the articulated arm robot is a heavy-duty solution to your more demanding applications.

also during the critical product transfer stage to the adjacent pallet. Cartons are pushed by an operator directly onto the stripper plate of the pallet loader according to the desired pattern. With high speed and multi-lane palletising capabilities, the Layer Palletiser is a reliable partner in a busy production environment. Products handled include cases, sacks, trays, drums, buckets etc.

Goliath works with international partners to bring the best palletising solutions to the Irish marketplace. For further information contact George O’Leary, Goliath Packaging Systems on Tel 067 37893; Mobile 087 1222816; E-mail info@goliath.ie or visit www.goliath.ie. J

I FLOW WRAPPING

Redpack Length Extensions Provide Pack House Satisfaction edpack Packaging Machinery is currently assembling two P325 R flow wrapping machines with product infeeds that are 10metres and 8 metres long. One is a repeat order for a P325E flow wrapping machine with 10 metre infeed to wrap punnets of grapes; it will provide enough space for up to six operators weigh and pack stations.

When the grapes are packed an unwrapped lidded punnet the flowrapper is used as a production conveyor and the punnets pass through without being flowrapped but allowing a labeller on the product outfeed to apply a label to the lid.

The second P325SFI stainless steel flow wrapping machine is for flowrapping trayless apples in 4-6-8-10 “soldier pack” formation. The 8 metre frictionless infeed allows plenty of room for up to 6 operators to load apples and the front of the infeed guarding can be swung away to allow full access to the pusher mechanism and drive chains for hygienic clean down. For further information contact Redpack Packaging Machinery on Tel +44 (0)1603 722280, Email sales@redpack.co.uk. J

FOOD & DRINK BUSINESS EUROPE, JULY 2012

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I DAIRY

Dairy Crest Refocuses on the UK With the disposal of its St Hubert French branded spreads business Dairy Crest will be a broadly based dairy business solely focused on the UK. t Hubert is being sold for Eur430 million (£344 million) to Montagu Private Equity. Dairy Crest purchased St Hubert in January 2007 for Eur370 million (approximately £248 million). Since its acquisition Dairy Crest has increased the revenue and EBIT for St Hubert by 35% and 45%, respectively. For the year ended 31 March 2012, St Hubert generated EBITDA of Eur48.1 million and EBIT of Eur46.1 million. The gross assets of St Hubert at 31 March 2012 were Eur169 million.

Although St Hubert has been a successful purchase, consistently increasing its market share and profitability, Dairy Crest has been unable to make the additional synergistic acquisitions in Continental Europe that it originally envisaged.

On completion of the disposal, Dairy Crest will remain a broadly based dairy business entirely focused on the UK with strong brands including Clover and Country Life spreads; Cathedral City (the UK’s leading cheese brand) and Frijj flavoured milk drinks. The proceeds from the deal will leave Dairy Crest virtually ungeared.

announce milk purchase price cuts.

However, Dairy Crest has since deferred the implementation of the 1.65p/litre price cut by two months (from August 1st to October 1st) following widespread opposition from British dairy farmers to a number of proposed price reductions by major UK dairy processors.

S

Dairy Crest management has set a medium term target

of

3%

return

on

sales

from

its

underperforming Dairies division.

“Over the coming months, with a strengthened balance sheet, we will be able to consider a wide range of opportunities including synergistic acquisitions in the UK,” says Mark Allen, chief executive of Dairy Crest. “This will allow us to employ the same brand-building skills that have contributed to the strong growth of our UK brands and St Hubert's success.

However, we will only do this within strict financial criteria and where an

Mark Allen, chief executive of Dairy Crest.

acquisition would add value for shareholders.”

Broadly Based Business Dairy Crest’s broad dairy business has been a major strength in the current economic climate as a poor performance by the Dairies division, which is one of the UK’s major suppliers of liquid milk to retailers and the doorstep market, has been off-set by the group’s other activities in cheese and spreads. Dairy Crest’s medium term strategy is to improve the performance of its Dairy division through efficiency improvements under a £75 million capital expenditure programme, while continuing to build on the success of its branded foods business.

Dairy Crest along with rivals Arla Foods UK and Robert Wiseman Dairies (now part of Muller Dairy UK) have seen their liquid milk margins squeezed over the past 18 months through a combination of strong resistance to price increases by retailers and higher farmgate and energy costs.

Dairy Crest management has set a medium term target of 3% return on sales from its underperforming Dairies division, which processes about 1.7 billion litres of milk a year. Dairy Crest plans to rationalise its operations and will reduce capacity with the closure of two dairies – Aintree and Fenstanton.

Lower returns from commodity cream markets prompted Dairy Crest to recently FOOD & DRINK BUSINESS EUROPE, JULY 2012

Building Strong Brands In line with its strategy of increasing the proportion of added value sales and improving the quality of its earnings, Dairy Crest is continuing to develop its four key brands. Dairy Crest’s UK branded business continues to do well. Total sales of its four core brands (Cathedral City, Country Life, Clover and Frijj) increased by 15% in the first quarter compared to the same period last year, as Dairy Crest increased marketing investment behind them. Indeed, all four brands are to feature on television for the first time during the first half of the year.

Having achieved £20 million of annualised cost reduction initiatives during its last financial year, Dairy Crest is also committed to making further efficiency savings of £20 million this year and is on track to meet this target “Our focus at the start of the year has been on doing the right things to restore our Dairies business to a satisfactory level of profitability as well as to continue to grow our brands and we are pleased with the progress we are making,” says Mark Allen. “At the same time we are taking another significant step in the evolution of Dairy Crest by following through our strategic decision to dispose of St Hubert and refocus on the UK.” J

The Eur430 million disposal of St Hubert will allow Dairy Crest to refocus on the UK.

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Heineken to Acquire Asia Pacific Breweries Heineken has made a S$5.1 billion (US$4 billion) offer to buy the stake held by its joint venture partner, Fraser & Neave, in Asia Pacific Breweries, one of the fastest growing beer groups in Asia and owner of the Tiger brand. In accordance with the Singapore Code on Takeovers and Mergers, when the conditions of the offer are satisfied, Heineken will make a mandatory general offer for all the shares of APB not already owned by Heineken for a maximum consideration of S$2.4 billion.

Heineken’s offer is in line with the company’s strategy to expand its presence in emerging markets and follows transformational deals in recent years that have included the acquisition of the brewing operations of FEMSA in Mexico and Brazil, the partnership with United Breweries in India and acquisitions and capacity investments in Africa.

If agreed, the offer will strengthen Heineken’s platform for growth in some of the world’s most exciting and dynamic economies with fastgrowing populations. The deal will give Heineken direct access to a number of important markets, including Cambodia, China, Indonesia, Malaysia, New Zealand, Papua New Guinea, Singapore, Thailand and Vietnam.

Jean-Francois van Boxmeer, chairman and chief executive of Heineken.

AB InBev Consolidates Global Leadership With $20.1 Billion Acquisition Anheuser-Busch InBev has agreed to acquire the remaining stake in Mexican brewer Grupo Modelo that it does not already 54

business, will serve as chief executive of the new business unit, which has been renamed Molson Coors Central Europe.

Molson Coors Central Europe employs approximately 4,100 people, operates nine breweries and sells its marketleading brands in the Czech Republic, Serbia, Croatia, Romania, Bulgaria, Hungary, Montenegro, Bosnia-Herzegovina and Slovakia. The acquisition includes Staropra-men, the business unit’s flagship brand with sales in more than 30 countries worldwide.

Carlos Brito, chief executive of Anheuser-Busch InBev.

own for $20.1 billion. The combination is expected to yield annual synergies of at least $600 million and add the Corona brand to the AB InBev’s portfolio.

The agreement is a natural next step given AB InBev’s existing economic stake of more than 50% in Grupo Modelo and the successful long-term partnership between the two companies. The combined company would lead the global beer industry with roughly 400 million hectoliters of beer volume annually and 2012 estimated revenues of $47 billion. Its operations would span 24 countries with a workforce of 150,000 people.

“Grupo Modelo has been one of our most important partners for more than 20 years and we are very pleased to evolve our long and successful relationship into this combination,” says Carlos Brito, chief executive of Anheuser-Busch InBev. “There is tremendous opportunity from combining two leading brand portfolios and further expanding Grupo Modelo’s brands worldwide through AB InBev’s extensive global distribution network.”

Molson Coors Completes €2.65 Acquisition Molson Coors Brewing Company has completed its previously announced acquisition of StarBev for approximately Eur2.65 billion. Mark Hunter, chief executive of Molson Coors UK & Ireland

Mark Hunter, chief executive of Molson Coors Central Europe.

Premier Foods Completes £41 Million Disposal Premier Foods has completed the disposal of its vinegar and sour pickles business, including the Sarson's, Hayward's and Dufrais brands to Japan-based Mizkan for a cash consideration of £41 million. The disposal represents a further step in Premier Foods’ strategy to prioritise investment behind its eight ‘power brands’ and divest selected, non-core businesses.

For the year ended 31 December 2011, the vinegar and sour pickles business had reported revenues of £34.0 million and EBITDA of £6.2 million. The gross assets of the business being sold as at 31 December 2011 were £31.7 million. The proceeds of the sale will be used to pay down debt.

McCain Foods to Acquire Leading European Chilled Potato Producer International frozen foods

FOOD & DRINK BUSINESS EUROPE, JULY 2012

group McCain Foods intends to acquire CelaVíta, a subsidiary of Bieze Food Group, a leading Dutch producer of chilled food products. CelaVíta is a leading European chilled potato producer and the market leader in the Benelux with over 300 employees. Its product portfolio includes whole baby potatoes, cut, sliced, diced and mash potato, both natural and seasoned.

Upon completion of this acquisition, CelaVíta will become a full subsidiary of McCain Foods Holland, a subsidiary of McCain Foods. The proposed acquisition will strengthen McCain’s core potato business and open opportunities to better serve customers with a more diverse range of product solutions.

Remy Cointreau Enters Scotch Whisky Market Remy Cointreau UK, a wholly owned subsidiary of Remy Cointreau Group, has agreed to acquire Bruichladdich Distillery Company, the Islay single malt Scotch whisky distiller. The transaction marks the French drinks group’s first move into the premium single malt Scotch whisky market, a category experiencing strong growth all over the world, especially in the very high-end segment.

This deal furthers Remy Cointreau’s long term value strategy, geared to investing into international premium spirits with strong ‘savoir-faire’. Total transaction value amounts to £58 million, comprising of £48 million for the acquisition of the entire share capital of Bruichladdich and estimated debt of £10 million that Remy Cointreau will assume.

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Pernod Ricard Selling Danish and German Brands For €103 Million Pernod Ricard is disposing of its Danish aquavit brands Aalborg and Brondums, the German brand Malteserkreuz Aquavit and the Danish bitter brand Gammel Dansk to ArcusGruppen, a leading player in the production, sale and distribution of wine and spirits in the Nordic region. The Eur103 million deal also includes the sale of the Aalborg production plant in Denmark.

The disposal is in line with Pernod Ricard’s strategy to focus on its priority brands. The closing of the transaction is subject to approval by the relevant competition authorities and is expected to be completed by the third quarter of the financial year 2012/13.

Cranswick Expands Cooked Meats Business UK food processor Cranswick has acquired Kingston Foods for an undisclosed sum. Kingston is a producer of premium cooked and roasted meat products and at 27 January 2012 had gross assets of £3.7 million. The acquisition of Kingston strengthens Cranswick’s cooked meat production capabilities, further diversifies its product range in a growing market and broadens the group’s customer base.

Patrick Coveney, chief executive of Greencore.

form a critical part of the supply network for a significant new multi-regional contract gain in Food to Go with a national food service chain.

Schau is a producer of fresh sandwiches and sushi as well as fresh entrees and other ready to eat items, sold through both the convenience store and grocery retail channels. It has an established modern facility in Chicago and a new high quality start-up facility in Jacksonville.

For the year ended December 2011, it had revenues of $32 million (£20.5 million).

Patrick Coveney, chief executive of Greencore, says: “Schau, along with Marketfare, will allow us to take a strong step forward in executing the next stage of our US strategy.

Greencore now has a Food to Go platform in the US that will not only enable us to better serve our existing customers, but also to support what is a significant and exciting new business opportunity.”

Irish Dairy Board Strengthens UK Food Ingredients Business

Greencore Makes Further Platform Acquisition in the US Greencore has further strengthened its business in the US with the acquisition of HC Schau & Son, a fresh food manufacturer with facilities in Chicago, Illinois and Jacksonville, Florida. The acquisition, which is worth up to $19 million, will

The Irish Dairy Board (IDB) has acquired The Cheese Warehouse, a UK-based cheese ingredients company. This strategic acquisition will further strengthen the IDB’s position in the UK food ingredients and food service sectors, a key market for Irish dairy exports.

Established in 2004, The Cheese Warehouse operates from well invested facilities in North Shropshire where it custom formulates a range of cheese solutions for both food service and food manufacturing

customers. It has grown consistently to achieve a turnover of about Eur38 million for the year ended 29 February 2012.

Kevin Lane, chief executive of IDB, comments: “This acquisition is consistent with our strategy to develop and enhance routes to market for valueadded Irish dairy products. The Cheese Warehouse complements our existing cheese ingredients business located close by in the UK and will significantly increase our presence in the UK cheese ingredients and food service sectors.”

Glanbia Expands Nutritional Ingredients Business With US Acquisition Glanbia, the international nutritional solutions and cheese group, has acquired Aseptic Solutions, a US beverage manufacturer and co packer, for $60 million (Eur50 million). The acquisition is funded through Glanbia's existing banking facilities.

enhances the Glanbia portfolio by complementing and enhancing existing ingredient solution capabilities.

Danone Expands in Morocco With €550 Million Acquisition Danone is paying Eur550 million to increase its stake from 29.2% to 67% in Moroccan dairy company Centrale Laitiere. Danone has held its 29.2% shareholding since 2001.

Centrale Laitiere is Morocco's leading dairy products company with nearly 60% of the market.

It has sales of around Eur600 million in a fast-growing market and operates the country's largest distribution platform with 30 storage hubs serving 70,000 points of sales. The deal represents a key step in Danone’s development in Morocco. It will allow the French food and beverages group to invest more in a market with major potential, and thus support growth of the local dairy industry.

Emmi Strengthens its International Business

ASI was founded in 2004 and is a manufacturer and co-packer of nutritional and dietary beverages including vitamin shots, protein shakes and 100% natural fruit juices. The business operates from a state-of-the-art facility in Corona, California and employs 175 people.

The acquisition of ASI is aligned with Glanbia's nutritionals growth strategy and will strengthen Glanbia Nutritional Ingredient Technologies by expanding its end-to-end solutions capability as an ingredients supplier, formulator and end product manufacturer. Aseptic Solutions capability is focused on key high growth trends in nutritional markets for sustainable, natural foods with nutrient integrity. The acquisition

FOOD & DRINK BUSINESS EUROPE, JULY 2012

Swiss dairy group Emmi has further strengthened its international business by increasing its stakes in Kaiku Corporacion Alimentaria in northern Spain (from 42.6 % to 66 %) and Diprola in France (to 63 %). In the medium term, Emmi's strategy is to increase the share of sales generated by its international business from 30% to 50%. This growth is to be achieved organically and through acquisitions.

By increasing these two stakes, Emmi is taking a further significant step forward in its internationalisation.

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Off the Shelf Chocolate – Another Step Towards a Sustainable Future For Cocoa and Chocolate he successful Off the Shelf Chocolate T range from Cargill’s Cocoa & Chocolate business is now available with the UTZ Certified label – which for the first time brings certified sustainable chocolate within reach of customers using smaller amounts of chocolate.

Harry Venema, commercial director chocolate for Cargill explains: “We launched Off the Shelf Chocolate to offer our most popular chocolate to customers who want the great taste of Cargill and require smaller amounts – starting from just a single pallet. Now as a leader in sustainability, and in response to customer demand, we are making our Off the Shelf dark, milk and white chocolate available with the UTZ Certified label. This brings high quality certified sustainable chocolate within reach of our smaller yet valued chocolate customers for the first time, enabling them to offer their consumers products with the reassurance that beans have been cultivated sustainably.”

Sustainability is currently the leading trend in food products generally, as well as chocolate. This is illustrated by the fact that in 2011 over 10,000 new food products making a sustainability claim were

launched in the EU, compared to just over 5,000 in 2009. Chocolate products are also moving in this direction, with the number launched making a sustainability claim almost doubling over the same period, from 938 in 2009 to 1,770 in 2011 When buying sustainable chocolate from the Off the Shelf range Cargill’s customers can be confident they are helping farmers who are part of the Cargill Sustainable Cocoa Program. The UTZ Certified label serves as an impartial guarantee for manufacturers and consumers that the cocoa farmers, cooperatives and farmers’ organisations have been subject to thorough third party auditing.

The world leading Cargill Sustainable Cocoa Program works to secure the longterm sustainability of cocoa production.

It improves the lives of cocoa farmers and their families by helping to increase incomes and supporting community projects, so contributing to poverty reduction. In its Farmer Field Schools Cargill has been training cocoa farmers for more than 10 years and helps tens of thousands of farmers increase yields, improve quality and adopt more sustainable practices.

Commenting on the new Off the Shelf range, Daan de Vries, field director of UTZ Certified, says: “Many larger chocolate users have responded to the growing sustainability trend, but until now smaller users have found it more difficult to access sustainable chocolate.

Inclusiveness is an important objective of UTZ, which means the program should be accessible to all sizes of farmers and chocolate makers.”

To find out more go to www.cargillcocoachocolate.com/Our%20Products/choc olate_offtheshelf.shtml at www.cargillcocoachocolate.com or email cocoa_chocolate @cargill.com. J

DuPont Nutrition & Health Unlocks the Potential of Par-baked Bread uPont Nutrition & Health has a D longer, fresher, more appealing shelf life in store for Europe’s fastgrowing, par-baked bread sector. A collection of ingredient solutions targets the specific fresh-keeping needs of parbaked bread after each of the two bakery processes prior to consumption.

With annual EU sales growth tipped to reach 4.5 percent up to 2014, according to GIRA market research, parbaked bread is a valuable business proposition for the European bakery industry. The solutions overcome some of the biggest parbake challenges that bakers face.

Among the core contributions is the capability to attain thin, tender crusts with longer-lasting crispness after the final bakeoff. For bakers, this represents a victory over 56

common crust defects, particularly the hard brittleness of white bread and leathery toughness of fibre bread. DuPont™ Danisco® enzymes, supported where necessary by lecithin, provide the solution.

Meeting another need, DuPont has run successful trials with a solution to extend the shelf life of bread stored at ambient temperature after the initial par-baking.

FOOD & DRINK BUSINESS EUROPE, JULY 2012

POWERFresh® Bread 9740 and DIMODAN® HP 45, ingredients from the DuPont™ Danisco® range, maintain a soft, moist crumb with optimum resilience for up to 20 days.

“Par-baked bread involves quite different and complex processing challenges compared to conventional bread production. While extending shelf life, we have to maintain the bread’s appearance, stability and volume right through to and beyond the second baking. These are requirements that our package of par-baked solutions also tackle,” explains Frank Schuhmann, bakery application specialist.

DuPont shares its par-baked knowhow and solutions in the latest issue of bakeryperformance.com, the online knowledge resource for the bakery industry. J