F&DB Europe Sept 2012 issue

September 2012

Heineken – Leading in Western Europe

Food & Drink Business Website:

www.fdbusiness.com

C o n t e n t s

- 3 M ERGERS & A CQUISITIONS

- 26 S UPPLY C HAIN

Coverage of British and international deals.

New PwC survey identifies leading edge supply chain practices.

- 35 D AIRY

- 5 C OVER S TORY

PAGE 3 Roger White, ceo, AG Barr.

Heineken – Leading in Western Europe.

First Milk – Investing for the future.

P AGE 9 Stein Oiom, ceo, TINE.

R EGULARS

- 9 D AIRY

Processing & Manufacturing . . . . . 11, 28-29

TINE invests to enhance efficiency and competitiveness.

Bottling & Packaging15, 16, 27, 38-42 & 48

- 13 B AKERY Record sales as Finsbury Food Group breaks £200m barrier.

PAGE 13 John Duffy, ceo, Finsbury Food Group.

Quality & Safety. . . . . . . . . . . . . . . . . . . . 20 PAGE 3 Bob Kunze-Concewitz, ceo, Campari.

- 17 B ISCUITS

Storage & Logistics . . . . . . . . . . 30-34 & 37

Information Technology . . . . . . . . . . . . . . 37

Rebranded Burton’s Biscuit Company has clearer focus.

Energy & Environment . . . . . . . . . . . . . . . 44

- 19 P ROCESSING & PACKAGING

PAGE 35 Bill Mustoe, chairman, First Milk.

Managing Director: Colin Murphy Editor: Mike Rohan Sales Director: Ronan McGlade

IPA 2012 - 21-25 October 2012 - ParisNord Villepinte, France.

PAGE 3 John Bryant, president & ceo, Kellogg Company.

- 21-24 F OCUS ON I RELAND

Advertising: Susan Doyle, Neela Desai, Mark Davies and Sylvia McCarthy . Senior Sales Executive: Paul Lees Production Manager: Susan Doyle

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- 25 D EVELOPING M ARKETS Considering your growth markets strategy – China.

PAGE 5 Didier Debrosse, president, Heineken Western Europe.

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M E E R R G G E E R R S S M Britvic and AG Barr Hold Merger Talks UK soft drinks groups Britvic and AG Barr are in preliminary discussions about a possible merger. A merger would create one of the leading soft drinks

Roger White, chief executive of AG Barr.

companies in Europe, with a strong portfolio of market leading brands. Discussions are at an early stage but agreement has been reached with respect to certain key aspects of a merger.

It is agreed that Britvic shareholders would own 63% and AG Barr shareholders 37% of the enlarged group's share capital.

The board of directors of the enlarged business would be drawn equally from the boards of both companies. Roger White, chief executive of AG Barr, would become chief executive of the combined group.

& &

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

position in long life and flavoured milk.

Campari Acquires Jamaican Rum Maker Italian drinks group Campari is acquiring Lascelles deMerc ado, a rum producer based in Kingston, Jamaica, for $414.8 million (Eur330 million). LdM produces leading Jamaican rums, including Appleton Estate, Appleton Special/White, Wray & Nephew and Coruba, and also owns a successful local consumer products distribution business.

This transaction marks the third largest acquisition in Campari’s history and positions the group as a leading producer of premium rum globally. In the last twelve months ending June 30, 2012 LTM achieved total pro-forma sales of $277.0 million (Eur208 million) and a pro-forma EBITDA of $27.7 million.

Bob Kunze-Concewitz, chief executive of Campari, comments: “When completed, this acquisition will give a further boost to the internationalisation of Gruppo Campari, further expanding our business outside of Italy, as well as strengthening our largest and most profitable business, the Spirits segment.’

EU Approves Arla Foods and Milk Link Merger The proposed merger between Arla Foods and Milk Link has been completed following regulatory approval by the European Commission. The approval has been given subject to Arla implementing a remedy to address the Commission’s concerns relating to a perceived reduction of competition in the UK long life milk market.

Arla has committed to divest Milk Link’s milk drinks business at Crediton. This business includes Crediton dairy, which produces all of Milk Link's long life milk, long life cream, extended shelf life milk and flavoured dairy drinks and fresh bulk cream. Arla Foods UK’s long life milk business, based at its Settle creamery, will not be affected by the remedy and will retain an established market

Bob Kunze-Concewitz, executive of Campari.

chief

The Coca-Cola Company Strengthens its Position in the Middle East The Coca-Cola Company has completed the acquisition of approximately half of the equity in Aujan Industries beverage business, one of the largest independent beverage companies in the Middle East. The $980 million transaction was initially

announced in December 2011.

The transaction allows The Coca-Cola Company to expand its portfolio in the juice sector.

The Coca-Cola system, which currently employs more than 40,000 people across the Arab world, announced in October 2011 that it will invest $5 billion in the Middle East and North Africa region over the next ten years.

Kellogg Company Enters Joint Venture in China Kellogg Company and Wilmar International, Asia's

John Bryant, president and chief executive of Kellogg Company.

leading agribusiness group, have formed a 50:50 joint venture for the manufacture, sale and distribution of cereals, snacks and savory snacks in China.

Wilmar's wholly-owned subsidiary in China, Yihai Kerry Investments, will participate in the joint venture.

Wilmar will contribute infrastructure, supply chain scale, an extensive sales and distribution network in China, as well as local China market expertise to the joint venture. Kellogg will contribute a portfolio of globally recognized brands and products, along with deep cereal and snacks category expertise. The joint venture will use the Kellogg's and Pringles brands.

“China's snack-food market alone is expected to reach an estimated $12 billion by yearend, up 44 percent from 2008,” points out John Bryant, Kellogg Company's president and chief executive. “This joint venture positions our China business for growth and fundamentally changes our game in China.”

Intersnack Eyes KP Snacks Intersnack, the private German

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

snacks group, is reported to be considering making a bid for KP Snacks, United Biscuits’ snacks division. With annual sales of Eur1.5 billion and employing 6,000 people, Inter nack is one of the largest manufacturers of savoury snacks in Europe.

Operarting four factories and employing about 1,500 people, KP Snacks is the second largest bagged snack company in the UK and has shown consistent top and bottom line growth for the last five years. Its portfolio includes household brand favourites such as McCoy’s, Hula Hoops, KP Nuts and Skips.

United Biscuits’ current joint owners, private equity companies Blackstone Group and PAI Partners, recently separated UB into two distinct businesses – one focused on biscuits and the other on bagged snacks – prior to disposal of the two units.

Dole to Dispose of Two Businesses For $1.7 Billion US-based Dole Food Company has agreed to sell its worldwide packaged foods and Asian fresh produce businesses to Itochu Corporation of Japan for $1.7 billion in cash. The transaction is in line with Dole’s strategic business review process with the cash proceeds being used to reduce debt and for restructuring.

Dole Worldwide Packaged Foods produces canned pineapple, canned pineapple juice, fruit juice concentrate, fruit in plastic cups, jars and pouches, fruit parfaits, healthy snack foods and frozen fruit. Dole Asia Fresh Produce grows, sources, ships and distributes consistently high-quality fresh fruit and vegetables principally in Asia. The combined revenue of these businesses totaled approximately $2.5 billion in 2011 with adjusted EBITDA of about $190 million. The agreement provides Itochu with exclusive rights to the Dole trademark on packaged food products worldwide and on fresh produce in Asia, Australia and New Zealand.

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COVER STORY

Heineken – Leading in Western Europe Cost Savings and further development of its strong brands through product and marketing innovation are behind Heineken’s continued growth in the mature and declining beer markets of Western Europe.

W

ith 25 breweries, five non-brewing Challenging Market Environment production sites and two malteries Due to the weak economies of most of its main across the region, Heineken is the national markets, however, Heineken Western largest brewer in Western Europe.

Europe faces an extremely challenging trading Incorporating operating companies in ten environment, characterised by fragile consumer countries, Heineken Western Europe leads the confidence, declining beer consumption and a beer markets in the Netherlands, the UK and general shift away from the more lucrative onItaly and holds number two positions in premise to the highly price-sensitive off-premise Belgium, Finland, France, Ireland, Portugal, channel.

Spain and Switzerland.

Heineken Western Europe sold 45.4 million Western Europe is still the biggest of the hectolitres of beer last year, up slightly on 2010 global brewer’s five regions. Although a mature as growth in France, Italy and Ireland exceeded beer market, Western Europe generates 45% lower volumes in Portugal, Finland, the UK, of Heineken group revenue (from 27.6% of Netherlands and Belgium. However, this consolidated beer volumes) and 35% of EBIT Didier Debrosse, president of Heineken Western growth was offset by lower volume sales of Europe. (beia). cider, soft drinks and third party products to Heineken Western Europe increased EBIT leave total consolidated volumes down by 1.2%. (beia) by 2.6% to Eur962 million on revenues of Eur7.75 billion in Better pricing, improved brand mix and the benefit of TCM cost 2011. Indeed, under the leadership of Didier Debrosse, president of savings resulting in lower fixed costs allowed Heineken Western Heineken Western Europe, the business continues to deliver robust Europe to increase EBIT (beia) by 2.6%. profit growth, achieving a CAGR of 7% in organic EBIT (beia) durFor instance, despite falling beer ing the 2006-2011 period. and cider volumes in the UK, Didier Debrosse joined the Dutch brewing giant’s French sub- Heineken still managed to increase sidiary, Brasseries Heineken, in 1997 as sales and marketing manag- EBIT (beia) due to business simer, before becoming general manager and in 2002 was appointed plification initiatives, the benefit of chief executive. The following year, Didier Debrosse was promoted cost saving programmes and better to managing director of Heineken France and in October 2005 he pricing. Although its beer volumes assumed his present position as regional president. declined by 2.8% in 2011, “Western Europe is a big and quite resilient beer market despite Heineken managed to grow ahead the crisis,” he points out, “Western Europe is also a large and resilient of the overall UK beer market due profit pool.” to the strength of the Heineken Heineken Western Europe’s combined markets represent a profit brand which grew by 17% and the pool of about Eur2.2 billion. The close geographical proximity of launch of Foster’s Gold.

Heineken’s ten country markets in Western Europe is a key advanSimilarly, in the Netherlands tage for the brewer. Diddier Debrosse explains: “Heineken’s Western EBIT (beia) was higher as lower European footprint is unique – not so much because we are number revenue were more than offset by one or number two but fixed cost savings. because we have that position locally combined with the Strong Brands fact that we are very close to While Heineken is the group’s each other and therefore we global brand, the Dutch brewer can benefit from scale. In also has a strong portfolio of local brands in Western Europe, such as beer, scale matters.”

Birra Moretti in Italy, Pelforth in France, Cruzcampo in Spain, He adds: “As a conse- Sagres, the leading national beer brand in Portugal with a 43% marquence, we manage Western ket share, and Foster’s, the number one lager brand in the UK offEurope as one entity but with premise market. a very strong local focus. We “We are a strong believer in local brands because the consumer can benefit from global scale and customer are still very much local and therefore we have to conand the fact that we are close tinue investing behind these local brands. It is also a way to get to the market.” scale,” says Didier Debrosse.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

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“Because we have a very strong portfolio of local brands, we have been able to develop a global brand – Heineken,” he remarks. “What we would like to do is roll out a second one called Desperados.”

Introduced in France in 1995, Desperados has benefited from relentless investment behind the brand and has increased its share of the French offpremise market from 5.8% in 2005 to 8.2% in 2011.

The Desperados brand grew strongly (up 27%) in 2011, driven by sales in France and the success of new introductions in the Netherlands, Belgium, Spain, Switzerland, Ireland and Portugal.

Cost Savings Successful total cost management has been central to Heineken Western Europe’s ability to continue to support its brands while investing in innovation to meet changing consumer demands.

Heineken Western Europe has realised over 50% of the Eur1.1 billion total cost savings achieved under the group-wide TCM programme from 2006 to 2011. The region will also be a key contributor to TCM2, Heineken’s new cost saving programme for the period 2012 to 2014.

“Western Europe has been leading the way in the Heineken group showing how to cut costs. We have cut something like Eur600 million since 2006,” he says. “Cost cutting is always on the agenda.”

Didier Debrosse adds: “Cost management and cash management are deeply embedded into this part of the organisation.”

Transformational Year Heineken Western Europe has been able to deliver steady profit growth, even since the economic crisis started in 2008.

“I will never forget 2008,” he remarks. “We moved from a patchwork of strong local positions to a strong regional leadership position thanks to the acquisition of Scottish & Newcastle and Eichhof in Switzerland. The bad news is we have seen the UK being under tremendous pressure in 2008 and we have seen the crisis rising in Europe since September 2008. So it was quite bumpy to integrate the two businesses in such an environment.”

According to Didier Debrosse, the former Scottish & Newcastle UK business has now been turned around and restructured to make it more efficient, and is almost attaining the average level of profitability enjoyed by Heineken in Western Europe.

Cider Having become the UK and global leader in cider following the acquisition of Scottish & Newcastle in 2008, Heineken now plans to develop the cider category across its markets in Western Europe.

However, it has come under intensifying pressure in its main market of the UK and has responded by recently relaunching its Strongbow brand. The brand is also spearheading the Dutch brewer’s attempts to grow its cider sales in continental Europe.

“We introduced Strongbow in Italy last year and in the Netherlands this year to learn how to roll out this category and the brand in other markets. It will take time to create a new category when one doesn’t already exist,” he says.

To further its ambitions of growing the cider Heineken became the UK and global leader in category in Western cider following the acquisition of Scottish & Europe, Heineken recent- Newcastle in 2008.

ly acquired Stassen, a leading international cider producer located in Aubel, Belgium.

In addition to its strong innovation and R&D capabilities and facilities, the acquisition of Stassen provides Heineken with cider making capacity in continental Europe.

Top Line Growth Heineken Western Europe is focusing on driving top line value growth. It aims to achieve this through better category, brand and channel management.

As the leader in many of its markets, Heineken plans to grow the category by making beer more exciting for consumers through innovation in product, packaging and marketing. “It is all about establishing a category vision – to reach an agreement with customers to define a joint view of the kind of business we can do together. What we intend to do with the beer category going forward is to grow the category more in value than in volume and more in profit than in value,” he comments. Of course, Heineken intends to increase its market share faster then it expands the beer category.

In terms of channel management, Heineken is trying to exploit new opportunities for its drinks in the declining on-premise market, such as the growing eating out trend. In the expanding off-premise channel, Heineken is seeking closer collaboration with retailers.

For example, in France it has successfully initiated a series of partnerships and promotions with retailers such Carrefour in the supermarket off-premise channel. Indeed, Carrefour has benefited from increased beer sales and extra shopper traffic through its stores.

“We have been able to take a disproportionate share of this category, becoming the leader, and we have improved profitability as well,” says Didier Debrosse. “We want to have a joint business plan with retailers, global, regional or local, because that is the Heineken plans to develop way of developing the category and the the cider category across business going forward.” The idea is to its markets in Western repeat what has worked well in France in Europe. other countries.

Heineken also plans to leverage the strength of its wholesale business in Western Europe, which has revenue of Eur2.2 billion and serves 170,000 customers including 60,000 in France, 38,000 in Spain and 33,000 in Italy. “We are the only brewer in Western Europe with such a big network,” he points out.

Heineken Western Europe intends to manage this business more effectively in future, not just as a logistics operation for its beer production units but in order to secure improved outlet reach and product availability in the high value on-premise channel. Indeed, the beer and wholesale businesses have now been split in the Netherlands.

Continued Profit Growth Didier Debrosse stresses that despite the tough economic climate Western Europe remains a large and resilient beer market and that is extremely profitable. “I don’t believe profitability will drop going forward – on the contrary. We have a strong and leading position almost everywhere both global and local. We are a key contributor to the group in terms of costs savings and cash enabling the group to invest in growing market.”

The president of Heineken Western Europe concludes: “We have a proven track record of delivering consistent profit growth in a challenging environment. We are focusing on top line development using our route to market expertise and capabilities. In a nutshell, I really believe in Europe.” J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

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I DAIRY

TINE Invests to Enhance Efficiency and Competitiveness In line with its strategy to deliver the best milk price to its dairy farmer members while developing its product range to meet changing consumer demands, Norwegian dairy co-operative TINE has been investing heavily to improve efficiency throughout its supply chain. he centre piece of this cheeses, yoghurts, sauces, investment programpuddings and flavoured me is a new fully automilks. To supplement its mated 25,000 sq m dairy portfolio, TINE also dairy at Jaeren involving manufactures other prodinvestment of NOK1.39 bilucts such as juice and ice lion (Eur186 million). The cream. The group operates new dairy at Jaeren will subsidiaries in Sweden, replace four dairies in this Denmark, England and region, which are being the US. phased out over the course of Last year TINE celebrat2012. ed its 130th anniversary.

The new dairy at Jaeren is Stein Oiom, chief executive of TINE. TINE can trace its roots to one of four major capital 1656, when the first dairy investment projects being undertaken by co-operative in Norway and Northern TINE along with a new warehouse in Oslo, Europe was founded with 40 members and development of a churnery and spray-drying consisted of a dairy building and a cowshed facility in Verdal, and a new a warehouse at for 100 cows. In 1881, due to the increase in the dairy at Tunga outside Trondheim.. dairy farming, the first nationwide co-operaTINE is investing about NOK1.8 billion in tive - Den Norske Meieriforening (the upgrading its plants at Verdal and Oslo.

Norwegian Dairy Association) was formed.

With a turnover of NOK19.4 billion The forerunner of the current TINE busi(Eur2.6 billion) last year and employing ness was established in 1928 with the aim of more than 5,500 people, TINE is Norway’s organising the export of Norwegian dairy biggest producer and exporter of dairy prod- products. ucts and also the country’s largest food manufacturer.

TINE Jaeren TINE Jaeren will process 200 million litres of milk annually and is expected to generate an efficiency improvement in operations of more than 30%, while also being flexible enough to handle an increase in new product development activities. TINE launches about 50 new products per year.

The Jaeren dairy will chiefly produce white cheese, butter and margarine, as well as processing the whey into food ingredients.

The new facility has been designed to optimise all stages of production and logistics TINE has been investing heavily to improve from ingredient supply, processing and efficiency throughout its supply chain. packing to transportation, maturation control, storage and the delivery of finished As a co-operative, TINE is owned by goods.

15,000 Norwegian dairy farmers who annuThe state-of-the-art factory is now one of ally supply it with 1.4 billion litres of cow’s the most modern, environmentally-friendly milk and about 19 million litres of goat’s and future oriented dairies within the milk. The milk is processed into more than Nordic region. Environmental considera200 different products which are sold under tions were taken into account in designing the TINE trademark, including various the Jaeren plant, which features reduced types of milk and butter, almost 70 different energy consumption and lower emissions.

T

Energy consumption is expected to be reduced by 34% and CO2 emissions by 38% compared to the four existing plants the new dairy is replacing.

Improving Efficiency and Profitability The state-of-the-art dairy at Jaeren along with the other development projects will enable TINE to adapt to meet an increasingly demanding market environment as competition both at home and abroad intensifies.

“We live in a world of frequent, fast-paced change,” says Stein Oiom, chief executive of TINE. “It is becoming increasingly important to operate efficiently to achieve stronger competitiveness in a market that is becoming more and more challenging. This entails that we must set clear priorities and implement necessary measures to adapt. Each day our attention is devoted to improvement and optimisation in all work processes along the entire value chain.”

He adds: “We are setting ambitious goals for financial results and growth, both nationally and internationally. This is to ensure profitability for TINE's 15,000 owners and a sustainable future for Norwegian milk production and good jobs for our 5,500 employees.”

TINE is Norway’s biggest producer and exporter of dairy products and also the country’s largest food manufacturer.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

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Stein Oiom elaborates: “TINE has a long value chain from pen to table, and many phases and processes must continually be reviewed to identify potential opportunities to reduce costs. In this connection TINE has set one paramount goal – efficiency and cost reductions must never be at the expense of the high quality of TINE's brands.”

Streamlining Operations Prior to the current investment and rationalisation programme, TINE had already been streamlining its dairy processing operations to improve productivity and to benefit from economies of scale. Extensive reorganisation has cut the number of dairies from 120 in 1990 to 40 at the start of 2012.

In seeking to enhance efficiency across its entire supply chain, TINE is also working at farm level. TINE’s raw materials are currently sourced from about 11,000 sites.

“The milk producers who own TINE, operate small farms compared with other countries,” Stein Oiom points out.

“Profitability is under constant pressure, and the farmer must therefore continually assess measures for operating more efficiently.

TINE's consultants advise the milk producer with good suggestions for operating in a more cost-efficient manner, or contribute advice as regards other technical issues.”

As a dairy co-operative, TINE’s primary objective is to ensure that its dairy farmer

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TINE has been steadily expanding its export sales since the start of the 1960s. The Norwegian cheese Jarlsberg accounts for over 80% of its total exports.

owners achieve the best possible milk price over time. TINE increased group operating income by 2.9% to NOK19.4 billion last year. However, following restructuring costs, related to the decommissioning of five dairies and one terminal, and other exceptional items, group operating profit declined

by NOK13 million to NOK1.18 billion in 2011.

International Expansion In addition to consolidating its leadership

position in its domestic market, TINE is also building a strong international presence.

Indeed, TINE's goal is for an increasingly larger share of revenues to come from dairy operations and the sale of specialty cheeses in markets outside Norway.

TINE has been steadily expanding its export sales since the start of the 1960s. The Norwegian cheese Jarlsberg accounts for over 80% of its total exports. Available in many markets globally, Jarlsberg is now the most sold foreign cheese in the US and Australia - the brand’s largest export markets. TINE’s goal is to be the preeminent specialty cheese brand leader in selected international markets.

Because TINE is a relatively small player in the international dairy market, it concentrates on the premium segment. A key step in TINE’s recent international expansion was its acquisition of UK-based dairy business Ilchester Cheese Company in autumn 2008.

In 2011, TINE increased revenue at its international dairy operations by 1.1% to NOK1.9 billion. On a constant currency basis, the growth was 4.9%. However, following a NOK20 million write down of goodwill related to the acquisition of its Norseland subsidiary in the UK, TINE’s international dairy business posted an operating loss of NOK19 million in 2011, down from a profit of NOK20 million in 2010. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

I DAIRY

SPX Brings a Unique Skill Set to the Table in Norway PX is close to celebrating the start of S production of a WPC 80 processing and whey permeate plant as well as a butter and spread processing plant at the new Tine dairy in Jaeren in south-west Norway.

Key to each plant is extreme flexibility based on world-class design and engineering expertise. A similar project in Verdal near Trondheim is currently in commissioning.

TINE is the largest dairy group in Norway, producing Norwegian and Jarlsberg cheeses as well as various kinds of butter, spreads, WPC 80, permeate powder and skim milk powder. SPX will provide and install the whey processing centre and whey permeate powder plant at the new dairy, as well as the state-of-the-art margarine processing section.

World Leaders Join Forces

“The acquisition of Anhydro and Gerstenberg Schroeder by SPX turned out to be an added advantage for TINE,” says Dairy Manager Torbjorn Gjerde. “We now have access to an even wider spectrum of

Fluid Bed Permeate Plant.

design and engineering competences plus the efficiencies that come from global crossdiscipline collaboration within SPX.” Uninterrupted WPC 80 Processing for up to 30 Days

The new WPC 80 processing line employs preheating and an Anhydro brand spray dryer to concentrate the whey protein fraction into WPC 80 in a continuous, highcapacity process.

“A specially designed preheating process means the WPC 80 plant can produce 400 kg of finished product an hour on a continuous basis for up to 30 days. The flexible

cooling system, a lactose crystallisation system, a modified conical spray dryer with a crystallisation belt and a final fluid bed dryer.

“Flexibility is also the keyword for the permeate lines in that the design also enables them to be used for production of whey and skim milk powders,” Peter Rosenmejer adds.

Butter, Spreads and Liquid Margarine

Perfector scraped surface heat exchangers.

design also enables the production of skim milk powder,” Peter Rosenmejer, SPX Flow Technology Manager, Process Design and Costing, explains.

The whey and permeate plants are due to come on stream in late 2012/early 2013.

Non-caking Permeate Powder

The Anhydro turnkey permeate lines include all interior utilities as well as electrical installation from the main panel.

Designed for maximum sustainability and cost savings, the permeate process features specially designed systems that save energy, water and chemical consumption.

With a capacity of 2,750 kg/h of non-caking permeate powder, the lines are designed for 20 hours of continuous production of permeate as a cost-efficient milk source for processed cheese, as a filler in other dairy products and as an ingredient in low-fat products with high nutritional value.

Each plant comprises a 2stage Anhydro evaporator system together with an integrated heat and hold system, a 2-stage flash

The Gerstenberg Schroder brand margarine section in Jaeren came on line in May, 2012, and features a number of low-pressure Consistator® scraped surface heat exchangers for pasteurisation and remelting of margarine emulsion. A Perfector scraped surface heat exchanger takes care of cooling and crystallisation of margarine emulsion.

The process line produces margarine spreads with 80 and 40 per cent fat content and has a capacity of 4,000 kg an hour.

“TINE required extreme flexibility,” SPX Flow Technology Sales Manager, Erik Dons Sorensen, explains. ”In addition to margarine production, it can also function as a chiller to produce prim butter, a Norwegian dulce de leche. And later on the plan is to use the Perfector® for production of liquid margarine.”

The line complies with all TINE dairy standards and its flexibility enables product remelting, recycling and regeneration.

Openness and Attention

Consistator® scraped surface heat exchanger.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

“One of the things we now take for granted when working with SPX Flow Technology is their proactive approach, personal attention and focus on our special needs,” Torbjorn Gjerde concludes. “Together with their professional expertise, these have ensured the timely completion of a highly complex project.” J 11

I BAKERY

Record Sales as Finsbury Food Group Breaks £200 Million Barrier Finsbury Food Group has exceeded the £200 million turnover barrier for the first time and achieved strong bottom line growth, as the UK manufacturer of cake, bread and gluten free bakery goods continues to invest in growth areas and improved efficiency. eflecting significant organic sales up 9.2% to £152.4 million last growth across all its divisions, year from both UK and export marand despite the impact of kets. Sales at the bread and free from commodity and cost infladivision rose by 10.0% to £54.9 miltion, Finsbury Food Group increased lion, driven by strong growth in the revenue by 9.4% to £207.4 million fresh gluten free market, Vogel's and adjusted profit before tax by bread brand growth and fresh free 11.6% to £6.5 million for the 52 from own label in the speciality weeks ended 30 June 2012. bread market.

Finsbury Food Group is the secThe cake division encompasses ond largest manufacturer of ambient subsidiaries Lightbody of Hamilton packaged cake (excluding in-store and Memory Lane Cakes. Based in bakery) in the UK, a market valued Finsbury Food Group is the second largest manufacturer of ambient Scotland, Lightbody employs around at £914 million. The group is also packaged cake (excluding in-store bakery) in the UK, a market valued 1,100 people and is the UK's largest the market leader in the supply of at £914 million. supplier of celebration cakes with gluten free baked goods to the UK's Disney, Nestle and Thorntons prodmultiple grocers.

Focus on Efficiency Improvement uct within its portfolio. It also produces a Finsbury Food Group’s speciality cakes Affordability for consumers is essential and wide range of small cakes, slices and in and breads portfolio is well balanced Finsbury Food Group continues to focus store bakery (ISB) bites, a number of which between branded and retailer own-label on internal efficiencies and productivity are under licensed brands including products. Retailer own label account for initiatives to lessen the rising commodity Thorntons, and Weight-Watchers. about 58% of revenue with the remainder price impact on consumers.

Memory Lane Cakes is based in Cardiff, generated by licensed brands controlled by “Restructuring measures in recent years employs around 800 people and is the leadFinsbury Food Group, such as have generated exceptional cost savings ing manufacturer of the UK retailers' preWeightWatchers, Disney, and Nestle and across the business. Over the last 12 mium own label cake ranges. It also proThorntons confectionery. months, with such savings primarily duces under a number of brands notably The group has also developed a growing realised, efficiency measures moved centre Nestle, WeightWatchers and Thorntons. export trade through its 50% owned sub- stage,” points out John Duffy, chief execu- The last financial year has seen continued sidiary Lightbody Europe and now gener- tive of Finsbury Food Group. “We are con- new product development and launches ates about 14% of sales from continental stantly striving to reap the scale benefits of and factory efficiency improvements.

Europe. our businesses, becoming more efficient in the use of raw materials. Stringent efforts have been made to remove non valueadded processes in all our factories, squaring the circle of keeping costs down to offset the rising price of raw materials.”

He adds: “We have also tried to do things differently, using ingredients in a more inventive fashion. One prime example was the creation of a higher value Disney Car cake, a distinctive product enjoying prime position on supermarket shelves.”

R

John Duffy, chief executive of Finsbury Food Group.

Divisional Performance The cake division continues to grow with

Martin Lightbody, non-executive chairman of Finsbury Food Group.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

13

The bread and free from division of their in-line checkweighing sysconsists of three production operatems and as he explains: “In-line tions. United Central Bakeries (UCB), checkweighing is not just a complibased in Bathgate near Edinburgh, ance tool for legislation but a brand employs around 180 people and manprotection necessity. When you put ufactures a range of gluten free bakery your name to a product, you want it products and morning goods. The to have in the box what it says on it. year saw significant growth from the The only way to guarantee that, is to branded free from fresh bread brand check every pack is within your including new lines to enhance the expected tolerances - manual weighrange. ing becomes impractical and costly.”

Based in Hull and employing “Setting up products and reporting around 90 people, Livwell continues on the production from a central PC to deliver new products into the free gives the management team the from market. This business operates opportunity to review and maintain under a combined commercial team their production without sifting with UCB. Finsbury Food Group’s speciality cakes and breads portfolio is well through paperwork or relying on Nicholas & Harris, based in balanced between branded and retailer own-label products. ‘word of mouth’ reporting.”

Salisbury, employs around 270 people “We pride ourselves on the reliabiland produces a range of speciality bread short-term focus is on integrating and ity of our kit giving maximum uptime. We products to UK retailers. Its focus is on growing the existing businesses, it also then back that quality and robustness up 'clean label' breads, rolls and buns has been plans to expand in the longer term through with a team of over 35 fully trained service strengthened following its acquisition of bolt-on acquisitions as opportunities arise. engineers across the UK, all carrying full Goswell Enterprises in June 2009 and with “Finsbury Foods has a successful track sets of spares on their vehicles to ensure it a number of licensed brands including record of acquiring high-quality, innova- that when things do go wrong, the disrupVogels and Cranks. These were relaunched tive food businesses. Historically, our tion is minimised.” in October 2010 and sales on each have acquisition skills have been demonstrated For Nicholas & Harris the benefits of grown in excess of 30%. to good effect, investing in business that the Vantage systems have been very rapid. provide a strategic fit and helping those As their MD Simon Staddon concludes: Challenging Times businesses grow,” says Martin Lightbody. “The Stevens check-weighers have brought Finsbury Food Group, like other bakers, “As and when the time is appropriate, I a number of important improvements to faces rising input price inflation, which is feel confident we will demonstrate those our production. The reduction in paperimpacting adversely on operating margins, skills once again.” work has been significant and we can now coupled with weak spending by consumers.

Meanwhile, Finsbury Food Group is easily access the comprehensive and specif“Business has never been more of a chal- continuing to concentrate on enhancing ic data relating to particular batches at the lenge. Steering a major bakery group efficiency and competitiveness across its touch of a button.” through the stormy seas of an economic operations as it adjusts to changing market “This not only allows us to demonstrate downturn was never going to be painless,” demands. For example, Nicholas & Harris due diligence to our customers, but also comments Martin Lightbody, non-execu- is benefiting from improvements to pro- provides us with a much clearer real-time tive chairman of Finsbury Food Group. duction after working with Stevens Group, picture of what is going on during the “Despite the ongoing reality of a recession- the weighing and traceability solutions manufacturing process.” ary environment, our trading performance provider, for a number of years. bears witness to the fruits of hard work across the group.”

Weighing and Traceability Martin Lightbody continues: “We oper- Solutions ate in a treat category. People want to Stevens supply Checkweighers, Metal come down the cake aisle and purchase our Detectors, Average Weight, Recipe and products for themselves and their families. Traceability Systems plus a comprehensive They are willing to be engaged; they want after sales Service Package across the to see something new, bakery goods that Finsbury Food Group. are appealing and affordable.”

Three high speed ‘Vantage’ In-Line Finsbury Food Group has responded by Checkweighers supplied by Stevens Group developing products designed to engage have been playing a crucial role for the last and excite consumers. It has increased 5 years at specialist cake and bread manuspend on category management initiatives, facturer Nicholas & Harris, at their Nicholas & Harris have also recently conducting market research and trialling upgraded bakery in Salisbury. Such has ordered four Stevens Recipe Formulation new products with the specific aim of stim- been the success of these devices that three Systems to further aid process control and ulating consumer awareness. more In-Line Checkweighers have now traceability on minor and major ingredient weigh up. They also have three Compupak “Our major customers actively value our been ordered. input. They are looking to us as a large The Checkweighers, which have integral 6 Systems in use to help reduce product bakery group to help them find ways of in-feed and out-feed conveyors, are used to give away and wastage. refining and improving their product range weigh a variety of breads including fruit Toby Hawkins concludes: “We are natuto generate growth,” says Martin loaves. The units are capable of offering rally delighted that Nicholas and Harris Lightbody. weighing speeds in excess of 200 items per continue to invest in our systems and we minute with the utmost precision, and are confident that with our expanding inOutlook each weigher is fitted with a high speed air house Product and Software development expertise, we will continue to offer all our Finsbury Food Group has developed blow reject system and reject bin. through a series of acquisitions supported Stevens’ UK Sales Manager Toby clients tailored solutions which meet their by organic growth. While the group’s Hawkins is very positive about the benefits needs now and in the future.” J 14

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

I PACKAGING DESIGN

Win with Eye-Catching Retail Ready Packaging ompetition on the shelf has never C been so intense, says DS Smith Packaging - the company which ser-

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.

vices 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

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

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

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I SEAFOOD

Marine Harvest the First to Change From PP to APET With Faerch’s New MAPET II Packaging eafood group Marine Harvest is the first S organisation to use MAPET® II, the revolutionary new packaging material from specialist manufacturer of quality plastics trays and containers for the food industry, Faerch Plast. Featuring similar properties as APET/PE, MAPET® II is produced from just one material, MONO amorphous polyethylene terephthalate or MAPET®, which seals easily and more securely than its predecessor, MAPET I and offers improved transparency for greater visibility of the product.

Faerch Plast is supplying Marine Harvest (Benelux) with MAPET II trays for packing fresh fish products for one of its customers, retailer Albert Heijn.

Phillippe De Bie of Marine Harvest

explains: “Our customer wanted to redesign their packaging to create a uniform look and feel across its entire poultry, red meat and fish product ranges. A major requirement of the re-design was that the trays had to be completely transparent in order to convey the freshness of

the products.”

He continues: “It was obvious from the beginning that APET, which is not always easy to seal but has excellent clarity, had to be used. So, our best option by far was the new MAPET II, with its excellent sealability and improved transparency. Plus the new trays are more rigid than PP, do not deform, transport well and comply to HACCP rules.”

Because MAPET II is a recyclable mono material produced from recycled packaging, it presents increased benefits to the environment as well as cost-savings against a more expensive, non-recyclable laminate.

For further information contact, Faerch Plast on Tel +44 (0)20 8254 2300 or visit www.faerchplast.co.uk. J

Crown Conveyors (UK) Ltd does not simply design & manufacture high quality conveyors.

We work with our customers from inception to conclusion to engineer conveying solutions to achieve optimum productivity.

Moving your business forward from inception to conclusion & even after that For fast solutions check out our standard modular range Aqualine and Rotaline normally dispatched 10-14 days from order, ready to run.

Tel: 01179671370 mail@crownconveyors.com www.crownconveyors.com 16

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

I BISCUITS

Rebranded Burton’s Biscuit Company Has Clearer Focus Currently part way through a three-year £25 million investment programme to improve efficiency and extend its innovation capabilities, Burton’s Biscuit Company continues to expand its market share both domestically and internationally. ith annual sales of over £340 million and employing more than 2,000 people, Burton’s Biscuit Company is the second largest biscuit manufacturer in the UK. The company operates three main production facilities at Llantarnam in Wales, Edinburgh in Scotland and Blackpool in England, a chocolate refinery in Moreton and central distribution hub in Liverpool. Burton’s Biscuit Company is a firmly established international player, particularly across its core markets of the UK, Ireland, France and North America.

The company produces iconic and muchloved brands including Cadbury Biscuits (made under licence), Jammie Dodgers, Maryland Cookies and Wagon Wheels.

Further strengthening of these ‘power brands’ is at the core of Burton’s Biscuit Company’s development strategy.

W

Fresh Approach The company has been under new ownership since 2009 following a £331.9 million buyout by its lenders CIBC and Apollo Global Management. A new management team and fresh development strategy were subsequently introduced to rejuvenate the business.

“Under a newly appointed senior leadership team, Burton’s Biscuit Company developed a fresh approach to taking the business forward and is delivering sustainable growth in a challenging economic market,” explains Ben Clarke, chief executive of Burton’s Biscuit Company, who joined the business in October 2009. “As a focused leader in the biscuit market, our corporate strategy over the

Burton’s Biscuit Company operates three main production facilities at Llantarnam in Wales, Edinburgh in Scotland and Blackpool in England.

past two years has been underpinned by four key principles - innovation, quality, pace and a focus on expanding our international footprint.”

He elaborates: “This strategy is focused on investing in our ‘power brands’ for growth, driving efficiency throughout our supply chain, growing our market share at home and abroad and further enhancing our R&D capabilities. With a renewed focus on driving innovation in the marketplace through our ‘power brands’, we launched some truly groundbreaking and award-winning new products, such as Maryland Big & Chunky cookies, Toffee Dodgers and the Cadbury biscuits range to name but a few.”

Rebranding To reflect its strategy of being a focused leader in the biscuit market, the company (formerly called Burton’s Foods), has recently undertaken a corporate rebranding and changed its trading name to the Burton’s Biscuit Company in November 2011. “As the only UK company that focuses solely on biscuits, our rebrand (new name, logo and approach) further supports our transformative business strategy, which has seen us deliver strong results over the past two years,” he says. £25 Million Investment Early last year, the company announced a £25 million capital investment and rationalisation programme spread over three years, including £5 million on chocolate enrobing and robotics at the Edinburgh site and £2 million on chocolate moulding at Llantarnum. However, the programme also entailed the closure of a factory at Moreton with the loss of 342 jobs and further redundancies elsewhere.

“The capital investment programme enables us to invest in our production capabilities with state-of-the-art technology and equipment – helping us further grow our ‘power brands’ through new products and formats.

Along with improvements to our manufacturing capabilities, a significant proportion of this is being invested in employee training and up-skilling across our production sites.”

He adds: “Continued investment in our ‘power brands’ has seen them grow substantially in 2011. For instance, in the UK,

Cadbury biscuits remain the number one brand in premium chocolate biscuits, Maryland Cookies are the number one cookie brand and Jammie Dodgers are the number one children’s brand.”

Premium Position According to Ben Clarke, the UK biscuit market, which is valued at £2.1 billion, is performing relatively well against other categories. “The premium end of the biscuit market, in which many of our brands operate and enjoy a dominant position, presents the greatest opportunity for growth – both domestically and internationally,” he point out. “The overall biscuit category has continued to grow over the past few years, but within that, the premium end of the market has exceeded overall category growth substantially.”

However, in response to the consumers trend of buying value brands more often and in greater volumes, Burton’s Biscuit Company is also relaunching its Lyons’ Biscuits range The wide variety of biscuits in the range, along with highly competitive pricing and promotions, will help retailers to capitalise on this trend.

International Development The Burton’s Biscuit Company chief executive sees major potential in further expansion overseas. “The circa £30 billion international biscuit market represents a significant growth opportunity and we’ve been up-weighting our international distribution capabilities to capitalise on this,” he says. For instance, the UK biscuit producer has recently signed agreements with international retailer Walmart and Canadian retailer Loblaws to expand its presence throughout North and South America and further projects are underway to strengthen its position in other markets. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

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I PROCESSING & PACKAGING

IPA 2012 – 21-25 October 2012 – Paris-Nord Villepinte, France Featuring more than 400 exhibitors, IPA 2012, which runs from October 21st to 25th at the exhibition centre of Paris-Nord Villepinte, is the European event for food and beverage manufacturers looking for innovative and high-performance processing and packaging equipment and machinery. he 2012 IPA exhibition will give pride of place to eco-responsible production.

The aim is to present an economically viable pilot plant where all the processing steps have been studied to respect the environment. The staging of an eco-friendly food factory will serve as an example for food companies that wish to invest on sustainable production and green property.

T

Tomorrow’s Food Factory Eco-design is seen as the way forward by manufacturers anxious to address the regulatory, economic, ecological and social changes impacting their operations. Addressing their concerns, for the first time at the show IPA will be introducing the ‘eco food factory’ - a renewable energy and energy efficiency showcase to help food manufacturers visiting the show to make the right decisions.

All the green technologies applicable to food manufacturing will be presented in a large dedicated area at the entrance to Hall 5B, featuring:

• Panels with diagrams presenting work carried out by the Ecoval technology cluster (eco-design and promotion of co-products) and Sustainable fluid management (energy efficiency, water, refrigeration) for food manufacturers, in partnership with ACTIA. • A model eco-factory designed by CETIAT; an interactive representation of a virtual ecoefficient plant, and key methods for optimising environmental performance; the basis for building a full-scale environmentally

sound facility.

• The winning products from the IPA Innovation Awards.

• Panels giving examples based on the experiences of manufacturers engaged in ecodesign projects in several fields of activity.

ADEME has produced fact sheets describing specific achievements of businesses in the area of sustainable development. Several examples will be on show, including energysaving installations, biomass boilers and anaerobic digesters. For each example, there will be a full technical and financial breakdown.

The flagship exhibit will be the SOJAMI eco-factory, with photos, videos and other multimedia sources.

A number of other special events will be part of IPA 2012.

Innovation and Research Forum Innovation is strategic in the food processing industries as it makes it possible to increase productivity, stand out from competitors, or recover added value in moving toward less commoditized products. Technological innovation is very dependent on regulatory constraints, and often enters the food industry through processes, ingredients, equipment and services developed upstream by suppliers.

The Innovation Research Forum offers a European conference cycle freely open to all visitors, providing a unique opportunity to keep updated with the latest R&D work and innovation dedicated to the food processing industries.

The Innovation Research Forum 2012 will cover topics addressing tomorrow's concerns.

It will present the latest work in the fields of process innovation, packaging, energy efficiency and food safety.

The following themes will be addressed, among others: • Public research to boost innovation in companies • The new environmental challenges facing the food industry • Reducing water and energy consumption in the food industry: competitiveness factors • Energy management and efficiency

• Cold chain management • Water and effluent management • Innovative solutions for food wrapping and packaging Innovation Competition The IPA Innovation Competition reflects the latest process engineering technologies. The aim of the competition is to bring focus on the strength of innovation on the food industry as demonstrated by the equipment, solutions and technologies offered by exhibitors at IPA. Every year nearly 150 new products are declared by the IPA exhibitors. The IPA Innovation Competition incorporates the following award categories: • Quality and Hygiene Award • Processes Award • Monitoring and equipment Award • Eco-innovation” Award Two Complementary Exhibitions IPA 2012 will again run in conjunction with SIAL. These two exhibitions complement each other to offer the largest food marketplace in the world. The co-location has ‘innovation’ as a unifying theme. SIAL represents the largest food observatory with more than 985 products showcased in the Trends & Innovations Area, and on the equipment side, IPA highlights the strength of innovation in the food industry.

Indeed, innovation is the primary reason for visiting with 70% of SIAL visitors seeking new products and/or suppliers. The two shows highlight that although product innovation is driven by consumer needs, it would not be possible without technological advances in process engineering. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

19

QUALITY

I

& HYGIENE

IPA PREVIEW

Filtration Solutions For Becoming EU 10/2011 Compliant Are you ready for the changes in EU legislation concerning the use of plastics within critical manufacturing processes? he new legislation replaces the existing T 2002/72/EC plastics directive, meaning that there is a new need for food manufacturers to ensure that any plastic materials used in the food and ingredient manufacturing processes are not hazardous to human health, where there is the possibility of contact with food.

Timeline of What to Expect

been proven that Tetratex Contact has significantly lower migration levels than the threshold limit.

With production costs increasing, the benefits of reclaiming product are a vital step in further improving plant cost optimisation.

Tetratex Contact®

Tetratex Contact® ePTFE membrane uses surface filtration which is a far more efficient and effective method of filtering dust particles. The membrane ensures that the majority of fine dust can be Compliance documents should be easily cleaned down by the based on migration testing using: existing filter unit cleaning • Currently authorized food and test simulants OR food and test mechanism. The dust can simulants established in the then be collected as part of legislation. the existing filter unit dust collection mechanism and re-used.

Compliance documents should be based on migration testing using: • Food simulants and test conditions established in the legislation

Many manufacturing processes require the filtration of expensive ingredients, particularly in food and ingredient processing.

Traditional filter materials use depth filtration as their method of filtering fine, airborne dust particles created during the process. With this method, much of the filtered product will be impregnated within the filter media and is therefore a migration risk and potentially difficult and expensive to reclaim. In this instance the filters would need to be removed and cleaned for the product to be extracted adding further cost to production.

Reducing Contamination Risks

Tetratex Contact ePTFE membrane filter media is believed to be the only EU & FDA compliant filtration solutions for food and ingredients manufacture. These specialised filtration products enable safe product reclamation without fear of contamination from the filter media. From tests conducted in accordance with the EN1186 standard, it has 20

Food & Ingredient Manufacturing Processes

Tetratex ePTFE membrane can provide an array of benefits to manufacturing processes and add significant value through: 1. Production Savings - increased system airflow can be achieved through reduced filter pressure drop, significantly reducing the cost per tonne of product 2. Reduced Energy Consumption - maintains airflow at a reduced filter differential pressure (DP) therefore energy absorbed by the fan is reduced 3. Reduced Downtime - Tetratex requires less frequent cleaning providing longer bag life

and fewer bag changes 4. Reduced Emissions – near-zero emissions to help comply with environmental and workplace health standards and regulations Tetratex Contact ePTFE filter media for food and ingredient processing equipment applications can be reliably integrated into many processing filtration applications. The majority of these applications require the filtration media to come into contact with products manufactured for human consumption; including conveying, grinding, drying etc., with a maximum operating temperature of 250°C. Each and every food processing application is different and carries with it a specific set of challenges. A host of factors can influence the performance of any given fabric filter, but the selection of an appropriate filter media is critical. Tetratex Contact filter media, compliant to EU regulation 10/2011 and in accordance to FDA CFR 21 § 177, can meet the high demands of a variety of filtration processes for food contact applications.

More information about the latest development in food manufacturing can be requested from www.tetratex-products.com. Alternatively come along to stand G025 at the IPA exhibition and we will be happy to discuss how we can help you achieve compliance. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

I FOCUS ON IRELAND

Irish Food and Drink Industry Highlights its Green Credentials Sustainability and innovation are being placed firmly at the centre of food and drink production in the Republic of Ireland as the export-focused industry seeks to differentiate its products in international markets and capitalise on the country’s ‘green’ image. s the country’s largest indigenous manufacturing sector, the food and drink industry is central to the Republic of Ireland’s export-led economic recovery. The Irish food and drink industry has an annual gross output valued at over Eur24 billion, exports worth in excess of Eur8.8 billion and supports almost 270,000 jobs. It accounts for about two-thirds of manufacturing exports by indigenous companies and sources more than 70% of its inputs domestically, compared with 30% for manufacturing in general.

The Irish food industry has traditionally been strong in meat processing and dairying but has also developed a sophisticated convenience food sector as well as an international expertise in food ingredients.

Brewing and distilling are key strengths on the drinks side.

A

Strategy For Growth In order to exploit the full potential of the Irish food and drink industry as a driver of economic growth, the Irish Government has developed a strategy for major expansion up to 2020. Launched in June 2010,

Aidan Cotter (right), chief executive of Bord Bia, chairman of Bord Bia.

Food Harvest 2020 proposes ambitious growth targets for a forward looking, consumer-focused food and drink industry over a ten years period, based on innovation and sustainable development.

A central theme of Food Harvest 2020 is to build on the clean green image of Irish food production as a basis for competing in premium quality food markets internationally. Key tar- Bord Bia has launched a comprehensive national sustainability gets include increasing development programme entitled 'Origin Green'. the value of primary output in the agriculture and fisheries sector by Irish food and drink exports outside of Eur1.5 billion (a 33% increase); growing Europe grew by 20% to reach almost value added sales by Eur3 billion (a 40% Eur2.2 billion last year. increase) and achieving food and drink However, rising input costs combined exports of Eur12 billion (an increase of with price volatility in international mar42%) by 2020. kets are currently adversely impacting on Irish food and drink exports. For example, Record Exports dairy product prices are now 25% lower In 2011, the value of Irish food and drink than their peak in March 2011. exports rose by 12% to reach a record level “Notwithstanding the consequent slowof Eur8.85 billion, down in export values this year, which Indeed, the sector comes after a 25% increase over the previaccounted for 25% of the ous two years when they rose to Eur8.85 rise in Ireland’s total billion, the underlying trend for Irish food export revenue. While and drink exports remains strongly positive the UK, as Ireland’s and well on track to meet the targets set in nearest neighbour, Food Harvest 2020,” comments Aidan remains the largest mar- Cotter, chief executive of Bord Bia, the ket for Irish food and Irish Food Board. drink products, accountIn 2012, the strongest performing export ing for about 41% of categories are expected to be meat, seafood, exports, other overseas edible horticulture and to a lesser extent, markets are being suc- beverages. Exports to international markets cessfully cultivated both have been performing strongly, rising by throughout Europe and almost 10% to date this year, boosted by beyond. significant increases in sales to Asia, North Sales to European mar- America and to a lesser extent Africa. kets, other than the UK, According to Aidan Cotter, the volatility were worth Eur3 billion that now characterises world food markets with Michael Carey, in 2011 and accounted (Continued on page 24) for 34% of all exports.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

21

Innovate for your future The FCCA programme will help you achieve this.

For more information please visit www.exportfoodanddrink.org and check out the FCCA.

You can also contact the Irish Exporters Association Ltd on 01 6622064 or alternatively you can send an e-mail to foodandrink@irishexporters.ie.

Food Chains for Competitive Advantage is an Ireland Wales European Regional Development project made possible through a financial contribution from the European Regional Development Fund Ireland Wales (INTERREG 4A) Programme 2007-2013.

I FOCUS ON IRELAND

Innovative NPD Support Programme For Irish Food and Drink Industry The Irish Exporters Association, in collaboration with Bord Bia, has created a fresh new approach to new product development (NPD) for Irish food and drink manufacturers. ntitled Food Chains for Competitive Advantage, the newly introduced programme has been developed to assist small to medium food and drink companies in addressing key market opportunities through innovation in new product development and branding in the food chain. The programme provides a complete package of assistance for each participating company through delivery of tailored NPD project management assistance and practical workshops that will ultimately lead to the development of new products in a range of Irish SMEs that will be relevant in today’s market place.

The programme is being run by the Irish Exporters Association in Ireland and they are working in partnership with Menter a Busnes in Wales, who are delivering a similar programme for Welsh SMEs. With over 50 years experience in the Irish and international arena, the Irish Exporters Association (IEA) is the only national body that exclusively represents the needs of Irish exporters. Food and Drink Export Ireland, a division of the IEA, aims to assist food and drink companies to grow, develop and gain new export markets and also provides an excellent base for networking among food and drink companies.

it remains a vital part of the Irish economy.

Prospects for the sector remain bright with exports expected to grow by 40% over the next decade driven by global demand and strategic advantages arising from the end of the EU milk quota restrictions.

E

Vital Role “The agri-food sector is playing a vital role in expanding our exports and in the recovery of the Irish economy. However, the industry operates in a very competitive marketplace, driven by trends in health, well-being, convenience and quality. To compete successfully, Irish companies must offer new, innovative, added –value products, in line with customer trends and market demands,” says John Whelan, chief executive of the Irish Exporters

Pictured left to right: Bernard Coyle, Chairman of the Irish Exporters Association Food and Drink Council, with Simon Baily, Head of Unit for the Ireland Wales Programme at the Southern and Eastern Regional Assembly, and Michael Murphy, Director of Markets, Bord Bia at the launch of the Food

Chains

for

Competitive

Advantage

Programme.

Association.

Michael Murphy, Director of Markets, Bord Bia, adds: “This is an opportunity for ambitious businesses to increase their competitiveness at home and abroad. Food Harvest 2020 has set an ambitious target of increasing food exports to reach Eur12 billion. To reach this target, Irish food and drink companies need to continually innovate and develop new products, services or processes that meet the market needs.

Innovation and NPD are fundamental to growth in any business.”

The food and drink sector is the traditional backbone of Irish exports. In contrast to the chemical, pharmaceutical and ICT sectors, Irish-owned companies are more dominant in the food and drink sector than foreign multinationals.

The Irish food and drink sector accounts for approximately half of all exports from indigenous-owned firms. Because of the highly labour intensive nature of the sector

Innovation “Innovation in the product line adds value to the customer experience, keeps your business relevant to buyers internationally and at home, but also projects an image of superior quality that justifies a premium price,” points out Bernard Coyle, Chairman of The IEA Food and Drink Council. “However, innovation and the new product development that goes with it continue to be a challenge, with costs, leadtime and economic uncertainty the biggest barriers.”

The new Food Chains for Competitive Advantage programme will support 25 Irish food and drink companies to create and launch a range of new products for the export market and will assist innovative companies to overcome some of the barriers to more rapid new innovative products creation and release to market.

The IEA is encouraging all interested companies to contact Jacqueline Cumiskey (JacquelineCumiskey@irishexporters.ie), Programme Manager, IEA’s Food and Drink division for more details on how to apply for this fund assisted programme.

Food Chains for Competitive Advantage is an Ireland Wales European Regional Development project made possible through a financial contribution from the European Regional Development Fund Ireland Wales (INTERREG 4A) Programme 2007-2013.

The programme is aimed at companies within the INTERREG region which covers the following counties in Ireland: Meath, Dublin, Kildare, Wicklow, Carlow, Wexford, Kilkenny, Waterford, South Tipperary and the adjacent counties of Cork and Kerry.

This article reflects the views of the author only and not those of the Programme Authorities. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

23

Irish Food and Drink Industry Highlights its Green Credentials –

(Continued from page 21)

As the country’s largest indigenous manufacturing

progress reports. In turn, Bord Bia will promote, communicate and develop trade awareness of the Origin Green programme among buyers, international media and relevant stakeholders in key export markets “Environmental sustainability is an increasingly important issue for many international food and drinks companies, and equally can underpin a national image for Ireland based on our mild maritime climate, plentiful supplies of water and grass based production,” points out Simon Coveney TD, Minister for Agriculture, Food and the Marine. “There is a strong correlation between the measures needed to improve environmental sustainability, and those needed to reduce production costs and improve profitability at farm and company level. It is not enough to say that you have a clean, green product, you must be in a position to prove this through a credible means of measurement. I believe that the development of such sustainability programmes is an essential element in the growth strategy for the food sector.”

will be sourced from signed up members to the programme before the end of 2014, and 100% by the end of 2016. Companies accounting for almost 50% of the Republic of Ireland’s food and drink exports have now signed up to Origin Green.

Among the 60 companies that have enrolled for Origin Green are market leaders such as Kerry Foods, ABP Foods, Diageo, Carbery, Dawn Meats, Kepak, Irish Distillers and Glanbia. Each company is now charged with developing a sustainability plan that will be independently verified, before they can benefit from the use of the Origin Green branding and marketing materials.

sector, the food and drink industry is central to the

Research Results To support the development of Origin Green, Bord Bia commissioned extensive underlines the importance of the Irish food trade research with leading retailers, food industry’s commitment to sustainability as manufacturers and food service organisaa differentiator. tions including M&S, Sainburys, Unilever, McDonalds and Subway. The research, Sustainability currently being undertaken by PriceBord Bia launched a comprehensive nation- waterhouseCoopers (PwC), has shown that al sustainability development programme sustainability is now more deeply engrained in June 2012. Entitled 'Origin Green', the in retailers' commercial strategies than ever programme is designed to help Ireland before and increasingly they see sustainabilbecome a world leader in sustainably pro- ity criteria as becoming a critical requireduced food and drink. ment of suppliers looking to do business.

Origin Green is a voluntary programme They view sustainability as helping them with participating food and drink manufac- boost the efficiency of their supply chain turers committing to develop a sustainabili- while also driving brand reputation and securing supplies over the longer term.

Aidan Cotter comments: “Retailers are looking for suppliers that can align with their commercial strategies and offer them a point of difference.

Our research has highlighted the significant opportunities that exist if the Irish food and drink sector can demonstrate its commitment to delivering continuous improvement. With Origin Green, we can effectively The Irish food industry has traditionally been strong in meat begin to add proof and assurance to processing and dairying but has also developed a our sustainability claims, and provide sophisticated convenience food sector as well as an the evidence that international expertise in food ingredients. our export customers are looking ty plan, in conjunction with Bord Bia, set- for.” ting out clear targets in key areas such as emissions, energy, waste, water, biodiversity Targets and CSR activities. Once approved, suc- Building on existing work cessful members will be entitled to use the being undertaken at priOrigin Green logo as part of their trade mary production level, marketing, communications and customer Origin Green has set a relations. Each year, participants will be target that 75% of Irish required to submit independently verified food and drink exports Republic of Ireland’s export-led economic recovery.

24

Simon Coveney TD, Minister for Agriculture, Food and the Marine.

SGS Group, one of the world’s leading inspection, verification, testing and certification companies, has been appointed to provide verification services for Origin Green. Bord Bia has also now launched an international targeted communications programme to build awareness of Origin Green and Ireland as a source of sustainably produced food.

Innovation To encourage further innovation within the industry, Bord Bia in collaboration with the Irish Exporters Association has just launched a fresh new approach to new product development (NPD) for Irish and drink manufacturers. The programme, entitled Food Chains for Competitive Advantage, is geared to support Irish food and drink companies in creating and launching a range of new products for the export market.

It aims to assist small to medium food and drink companies in addressing key market opportunities through innovation in new product development and branding in the food chain. The programme provides a complete package of assistance through delivery of tailored one to one mentoring and workshops that will lead to the development of new products in a range of Irish SMEs. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

I DEVELOPING MARKETS

Considering Your Growth Markets Strategy – China

By Ann O’Connell, Partner, Corporate Strategy, PwC, and Chris Brown, Senior Manager, Growth Markets, PwC rish food and drink produce is prominent in the UK, mainland Europe and US. This follows from many years of hard work and export success. Yet these traditional markets account for an ever shrinking proportion of the global market for premium and imported foods.

Invariably this means a number of growth opportunities, from Africa to Asia.

Look past the current hype, and China is an obvious example for food and drink exporters with long-term potential. Already the world’s second largest economy, according to the PwC publication ‘The World in 2050’, it will overtake the US economy in purchasing power parity terms by 2018. It is little surprise then that according to the PwC 2012 CEO Pulse Survey, 32% of Irish business leaders are planning to target China in the next year.

But where do you start?

Without an Irish diaspora or common language, China may appear remote.

Despite our best efforts, general awareness of Ireland in China lags that of larger European countries. Scandinavian seafood, Australian beef, Scotch whisky, French water, and New Zealand dairy already lead the way. But across any number of food and drink products, ‘Irishness’ has the potential to be sold as safe, healthy, and

I

premium quality. The very fact that Ireland is less well known in China than Germany or Australia presents a great opportunity to create and contribute to a premium image of green, organic Ireland. From mineral water to whiskey, potato snacks to porridge oats, opportunities abound.

While huge income disparities continue, there are now over 100 million ‘middle class’ urban consumers in China and this number is set to grow. Concentrated in a handful of cities, they are concerned with the safety and quality of their domestic food chain. Those who can afford it are often happy to pay a premium for imported produce. This has led to a tiered approach, both in terms of the channels that serve different segments of the Chinese consumer, and in the business model of Western food companies. For example, this includes arms-length distribution agreements through to product and management localisation, even to the extent that China becomes a global centre for global Growth Market innovations. As summarised in the diagram below, this tiered system takes on a very different scale from European markets.

While at present only around 10% of China population can afford the occasional imported food purchase, this still represents significant opportunities across several mar-

Ann O'Connell, Corporate Strategy Partner, PwC.

ket positions, from high-margin/lower-volume produce, through to localised mass market offerings.

Framing the Opportunity But given China’s huge scale, it can be daunting to know where to start. Which business model to aim for? How much to customise your products and marketing?

Which company structure or which distributor? How will shipping costs and trade tariffs impact end price and margins? How will you fund the venture and how will you extract cash and profits? Are you going to rely on local recruits or secondees from the existing group? The key to all of the above is advanced planning and getting the right people by your side.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

25

Whatever your scale or product, there are a number practical steps when approaching China or any other Growth Market: from doing your initial ‘homework’ on which Growth Markets to prioritise, through the steps of sizing the opportunity and challenge, right down to on-the-ground imple-

mentation, as shown in the diagram below: A structured Approach For Growth Markets If you’re interested in getting more out of Growth Markets like China, contact our team.

Ann O’Connell, Partner, Corporate Strategy, ann.oconnell@ie.pwc.com, +353 1792 8512; Chris RB Brown, Senior Manager, Growth Markets & China Desk, chris.rb.brown@ie.pwc.com, +353 1792 8012. J

I SUPPLY CHAIN

New PwC Survey Identifies Leading Edge Supply Chain Practices oom for improvement and using nextR generation technologies are some of the key messages from the latest Global Supply Chain Survey from PwC (Pricewater houseCoopers).

Erratic macroeconomic cycles along with disruptions caused by natural disasters have made supply chain management both more difficult and important to business success.

To adapt to this dynamic environment, executives are actively managing their supply chains utilising strategic and operational levers at their disposal to transform vulnerabilities into competitive advantage.

“Leaders are investing in next-generation supply chain capabilities that enhance profitability while meeting the needs of individual customers,” says PwC Ireland’s Partner for Supply Chain, Garrett Cronin.

“Responsive supply-chain configurations not only drive performance, but allow companies to serve their customers seamlessly in turbulent market conditions.”

According to PwC’s just launched Global Supply Chain Survey, there are six key findings that define leading edge supply chain practices: • There is room for improvement - less than half of survey respondents say their companies view the supply chain as a strategic asset. Supply chain leaders deliv26

Pictured launching the survey left to right are Catherine Phelan, Supply Chain Director, Mars Ireland; Garrett Cronin, Consulting Partner, PwC and Gordon Colborn, PwC UK Head of Supply Chain.

er both better than average financial results and customer responsiveness.

Leaders enjoy a 2X profitability advantage as compared to laggards, and a 17-point on-time delivery percentage advantage. It starts with recognition of the supply chain as a strategic asset.

• Interest in next generation technologies and sustainability is growing. More than half of survey respondents said they are implementing or plan to implement new tools for process automation or transparency. More than two-thirds think sustainability will play a more prominent

role in supply chains in the future.

• Leaders focus on best-in-class delivery, cost and flexibility to meet increasingly demanding customer requirements. The two factors that create the highest value are maximising delivery performance and minimising supply chain cost.

• Leaders have a clearly defined go-to-market approach, and 83% of leaders tailor their supply chains to meet the needs of different customer segments. Laggards are more apt to take a ‘one-size-fits-all’ approach with fewer supply chain configurations.

• Leaders often outsource production and delivery, but retain global control over core strategic functions such as new product development, sales and operations planning (S&OP) and procurement.

• Supply chain leaders in both mature and emerging markets invest heavily in advanced capabilities that differentiate them from their competitors.

This year’s Global Supply Chain Survey 2013 is the ninth such survey conducted by PwC, and covered 503 supply chain executives from a broad range of industries in Europe, North America and Asia. The full report on the survey can be found at www.pwc.com/GlobalSupplyChainSurvey2 013. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

Measom Freer Goes Metric easom Freer has added 2 new sizes to its popular Metric bottle range - the 60ml M and 1 litre options are UK manufactured in clear PVC with other materials and colours available to order. The range now consists of 17 sizes ranging from 2.5 ml to 1 litre, with Measom Freer also stocking a wide variety of caps, closures and pumps to complete the product. Whether you are looking for a dropper cap for food colouring, a screw cap bottle for sauces and seasoning or a more functional gel/spray pump for oils, Measom Freer has a huge variety of closures available from stock. Why not try the company’s new ecommerce website where you can order direct from stock for a fast, efficient delivery.

Contact the Measom Freer Sales Team to find out more about how these great value bottles can enhance your brand image and shelf presence. In addition, the compamy’s stock packaging has a minimum order quantity of just a single box which means minimal lead-times, optimising your cash flow and stock management. For further information contact Measom Freer on Tel +44 (0)116 2881588, Fax +44 (0)116 2813000, sales@measomfreer.co.uk or you can now buy online at www.measomfreer.co.uk. J

Kliklok Demonstrates Packaging Equipment to Food Companies liklok held a series of ‘Open Days’ in K September at their premises in Bristol, showcasing their range of automatic packaging machines to major food producers.

Among the equipment being demonstrated

was Kliklok’s Collating Robotic Loader and Race Track system, fully integrated with their SFR end load cartoner, automatically picking, grouping and packing collations of flow wrapped cereal bars at up to 150 cartons per minute For those wanting to see a higher speed end load cartoner, Kliklok was able to demonstrate their CELOX model. This award-winning machine continues to lead the way in the competitive and demanding world of food packaging. In recent months, Kliklok has installed several of these machines to pack a variety of products like flow wrapped burgers, muffins, cupcakes,

crackers, pizzas and biscuits.

One machine demonstration that proved popular was Kliklok’s CERTIWRAP wraparound cartoner. The company has installed over 70 of these machines throughout the world to sleeve a variety of products using many different carton styles.

With a proven history of expertise and success in automatic packaging machinery, Kliklok’s Open Days were the perfect opportunity to showcase their impressive range of equipment to the food industry.

For further information or to view the Kliklok range of equipment, contact Michelle Newman at Kliklok International or visit www.kliklok-int.com. J

Five More Redpack Frictionless Flowrappers edpack Packaging Machinery has R won orders for a further five P325SFI machines for flow wrapping apples without a tray. Packers are impressed by the new Frictionless Infeed that avoids product damage when apples, or delicate fresh product, is transported to the wrapping module.

Hard infeed product pushers, so often the cause of product bruising, have been discarded and a moving conveyor bed and side guides have been added, this newly designed infeed gently transports

product through the product infeed into the wrapping module. A further design feature enables the product infeed pitch to be adjusted without additional change parts accommodating collations of 4, 6, 8, and 10 apples and product grading variations.

According to Redpack, The P325S-FI trayless flow wrapping machine saves cost, reduces packaging waste and the frictionless infeed transports produce collations without damage. For further information contact Redpack on Tel 01603 722280, Email sales@redpack.co.uk. J FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

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I FLOORS, WALLS & CEILINGS

Hygienic, Decorative, Slip-Resistant Resin Flooring From John Lord

ohn Lord is a leading manufacturer and J contractor of resin flooring and ceramic vibration tiling and has a track record of highly successful projects for Premier Foods, Tulip Meats, Samworth Brothers, Molson Coors Brewing and Cotts Beverages among many others.

With an exclusive range of polyurethane (Uragard), epoxy (Epigard) and MMA/acrylic (Acrigard) resin flooring products, a ceramic vibration tiling system (Vibrogard) and hygienic drainage systems (Aspen), John Lord has developed an enviable reputation within the food processing and manufacturing sector.

The range encompasses the following features: * Smooth or Anti-slip * Anti-static * Chemical resistant * Wear and Impact resistant * Temperature resistant * Gloss or Matt * Seamless * Sterile and Hygienic * Decorative * Hardwearing.

As the UK manufacturer of all their own resin flooring formulations, the company’s experienced technical department is able to offer bespoke colours, colours matches and alternative finishes. To discuss your specific project please contact John Lord & Son Ltd, Bury, Lancs. BL8 2RS on Tel +44 (0)161 764 4617 or via enquiries@johnlord.co.uk. J

Hygiene Top of the Bill For Unilever lowcrete has secured a major coup at F Unilever’s new manufacturing plant in Durban, South Africa, with the installation of a number of the company’s seamless epoxy and polyurethane resin flooring systems. The new plant is home to world famous dry food brands including Knorr,

Robertson’s, Knorrox, Aromat and Rajah and has been designed under a ‘green’ construction programme that has considered sustainability at every stage of the development, including the floor space.

Aside from the environmental requirements, it was crucial that the flooring

Bespoke Solutions From Veitchi Industrial Flooring eitchi Industrial Flooring is part of and is V backed by the strength of the Veitchi Group, established in 1917. It has grown to become one of the most respected, leading and progressive flooring contractors in the UK. It provides bespoke flooring solutions to the construction industry and end user clients with a long history in food and drink processing establishments and related sectors. Veitchi are pioneers in the application of resin floor finishes and operate nationally providing a supply and installation service from our offices in Glasgow and Rugeley, Staffordshire.For further information contact resinfloors@ veitchi.com or visit www.veitchi.com. J 28

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

systems chosen in the final specification could meet Unilver’s rigorous hygiene requirements while at the same time offer speedy installation times so as to allow follow-on trades’ early access to the site. On top of this, all flooring materials specified had to be suitable for application onto a suspended slab built on compacted clay as well as onto ‘green’ concrete.

After a thorough consultation with Flowcrete South Africa’s Technical Team, a number of resin systems were chosen to provide a floor finish across different zones of the 22,000m2 manufacturing plant Firstly, Flowcrete’s Flowcem DPM was applied over the concrete slabs at 2mm to provide a smooth damp-proof membrane layer that would control moisture levels within the substrate over time without causing damage or defects to the final floor finish.

Flowcem DPM was the key to solving a number of issues and potential problems related to rising damp with ‘green’ screeds, the fast track program and the high moisture levels in the newly laid concrete.

Following the application of the

damp-proof layer, 20,000m2 of Flowcrete’s self-levelling, solvent-free epoxy floor coating system, Flowshield SL, was installed in all general warehousing and manufacturing areas as well as in all staff locker and changing facilities.

Flowshield SL is a popular flooring choice, particularly within the food and beverage industry, where it provides an attractive, resilient and robust surface with a smooth impervious finish. Its seamless properties also prevent the build-up of dirt, dust and bacteria in cracks, crevices and joints, making the floor easy to clean and sterilise – a crucial factor in the hygiene industries.

A number of other systems from Flowcrete were specified for more specialist areas of the site, including 500m2 of Flowcrete’s antistatic resin coating, Flowshield ESD SL, which was applied in the raw materials area to provide a

safe, static-free and chemical resistant finish Flowcrete’s hardwearing, hygienic polyurethane coating, Flowfresh HF, was nominated for us in kitchen and shower areas. Popular for being able to destroy 99.9% of all surface bacteria thanks to the inclusion of the antimicrobial additive, Polygiene®, with the resin matrix, Flowfresh HF is able to provide a nonslip, germ-free and highly durable floor finish.

For the staff canteen, Flowcrete’s decorative quartz flooring system, Peran STB was chosen to create a vibrant and welcoming platform underfoot, whereas for the site’s external loading bay, Flowcrete’s waterproof deck coating system, Deckshield ED was selected for its ability to withstand heavy traffic and impact.

Although currently only in start-up phase, the new Indonsa facility has the ability to become Unilever’s largest savoury and dry-food plant globally when it reaches full production capacity in the first quarter of next year.

The Indonsa plant also serves as great showcase for Flowcrete’s flooring materials, highlighting how a number of different flooring systems from just one manufacturer can be used to meet the different service requirements that are often found under one roof. For further information visit www.flowcrete.com. J

I OEE SYSTEMS

HYGIENIC SEAMLESS RESIN FLOORING

Production Monitoring Systems From London Electronics

Delivering the best possible industrial flooring by working hand in hand with you to select the most suitable specialist resin system for all food and beverage processes.

ondon Electronics makes flexible and easy to use production L monitoring systems, designed to help you get the best out of your plant and

• Production areas • Chill stores • Workshops • Packing and Despatch All John Lord projects are backed by a 'Total Responsibility Package' a 10 year product and installation guarantee that means total peace of mind for you

To discuss your specific floor project please contact us on 0161 764 4617 or enquiries@john-lord.co.uk.

John L. Lord & Son Ltd, Lancashire BL8 2RS | www.john-lord.co.uk

teams. You can see live data for your lines, so that you can act instantly if a problem should occur. This is essential in lean manufacturing environments, where a fast response to any drop in efficiency is critical.

Suited for these applications and more:• Calculating true live OEE on production lines • Logging reasons for stoppages • Charting OEE over time, so you can see trends • Calculating production line down time.

You can simply display the live production data on large overhead boards, or you can save the data in a database, to allow graphing and general data analysis. See www.london-electronics.com for more details. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

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STORAGE

LOGISTICS

I TEMPERATURE CONTROLLED STORAGE & LOGISTICS

Reed Boardall Group – The Frozen Revolution he Reed Boardall Group is T expanding. Already the UK’s largest single-site frozen food con-

portion of customers are smaller businesses which enjoy the cost efficiencies of the outstanding storage solidator, the company’s state-ofand transport consolidation on the-art cold storage and transport offer. facility alongside the A1(M) in Reed Boardall’s service philosoNorth Yorkshire is growing to keep phy is summed up by one of its pace with demand. advertising straplines: “We call it The Group stores and transports constant replenishment – you’ll call thousands of tonnes of essential it never out of stock.” If goods are foods for the nation’s supermarkets, not on the shelves, they won’t sell, round-the-clock – more than 2 miland that, according to Reed lion pallet-loads every year.

Boardall, means consolidating a Food manufacturers from across wide range of product to keep Some of Reed Boardall’s double-deck refrigerated vehicles on the Britain, Europe and even further supermarkets constantly stocked road. afield trust Reed Boardall to get with goods to sell. It’s an obvious their products to retail outlets on time, on the company works with many household- idea that, as anyone in the business knows, budget and in prime condition. And while name volume producers, a significant pro- is far from simple to deliver.

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FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

STORAGE

While many operators work from multiple sites around the country, Reed Boardall successfully demonstrates the value of its single site philosophy. One super-efficient storage and transport hub produces the same benefits for manufacturers of all sizes.

And Reed Boardall handles an impressive range of products with around 3,200 stockkeeping units.

This combination of volume and product range enables Reed Boardall to supply and deliver complete orders, large or small, to supermarkets, food wholesalers and food service companies – what the customer wants and when they want it.

The business is growing because its highly-technologised, environmentally-efficient

LOGISTICS

An aerial view of the cold store and transport hub at Boroughbridge, North Yorkshire.

cold stores and vehicle fleet enable it to achieve this feat every day of the year, delivering frozen foods in exactly the volumes

needed by the retailers served by Reed Boardall’s customers. Reed Boardall keeps them in stock, round-the-clock. J

Star Delivers Another Cool Solution For Logistics Firm lobal logistics specialist Kuehne + Nagel G has invested in another environmentally efficient chill store cooling system from Star

Azanechiller system enabling an operating temperature of +2 degrees Celsius in the chilled goods chamber.

Working to a strict time schedule, Star precommissioned and performance tested the Azanechiller system at its Glasgow manufacturing facility to reduce installation time on site at Brinklow. Group company Star M&E

Refrigeration. Kuehne + Nagel required a new refrigeration plant as part of an extension to a chilled storage facility at its Brinklow site, near Milton Keynes. The distribution centre handles food and drink logistics for one of the UK’s leading supermarket chains.

Following the success of previous cooling projects at other UK sites, Kuehne + Nagel approached Star to design and build an environmentally conscious, robust and reliable refrigeration plant for the new chill store. Star worked in partnership with the main building contractor for the expansion project to deliver a turnkey cooling solution for Kuehne + Nagel.

A world leader in cooling and heating system innovation, Star designed and built a high efficiency refrigeration A compact ammonia packaged Azanchiller from plant incorporating two of its Refrigeration.

Azanechillers. The compact ammonia packaged chillers supply cooling to the new Solutions was awarded the role of mechanical multi temperature chill store, with a and electrical contractor, including main low 56,000sqft chamber for chilled goods and a voltage panel works, lighting for the two 45,000sqft produce chamber for fresh fruit chambers, fire alarm and alterations to the and vegetables. Each temperature controlled ventilation system. chamber has a throughput of around 30 The Kuehne + Nagel system features two tonnes per hour. air-cooled Azanechillers with ammonia as priStar combined the new Azanechiller system mary and glycol as secondary refrigerant. with an existing refrigeration plant to give Each unit has a cooling capacity of 400kW Kuehne + Nagel the flexibility to operate the and features a low ammonia charge of less two chambers within the new chill store at than 0.45kg/kW. The Azanechillers are locatdifferent temperatures. The existing plant ed externally, mounted on concrete plinths allows the fresh produce chamber to operate adjacent to the existing plant room. at +9 degrees Celsius, with the new As an environmentally conscious natural

refrigerant with zero global warming and ozone depletion potential, ammonia overcomes concerns over HFCs. Waste heat from the Azanechillers is recovered for defrosting the evaporators in the new and existing refrigeration plant.

Azanechiller is a complete refrigeration package, ideally suited to temperature controlled storage as well as food processing, building services and process cooling. Only an electrical supply and flow/return pipework is required to provide cooling. This reduces site installation and commissioning time, whilst also avoiding the need for a plant room.

Suitable for cooling both water and glycol, Azanechiller was developed by Star for environmentally conscious end users. Azanechiller typically offers a 30% increase in performance compared with standard HFC chillers. Its Star packaged design and careful component selection result in an ultra low refrigerant charge, with all ammonia contained within the chiller and sited outside the warehouse or production facility.

Azanechiller is available as an air-cooled or water-cooled unit with cooling capacity from 200kW to 850kW. When it comes to designing energy efficient cooling and heating systems, Star is a natural innovator. Star works with strategic partners across the globe to deliver low carbon, cost saving solutions. For more information, phone Star Refrigeration on 0141 638 7916, email star@star-ref.co.uk or visit www.star-ref.co.uk. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

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STORAGE

LOGISTICS

I TEMPERATURE CONTROLLED STORAGE & LOGISTICS

Customer-focused Supply Chain Solutions From Norish orish is one of the leading providers of N third party temperature controlled warehousing and logistics services to the UK food and drink industry, including importers, manufacturers, wholesalers, retailers and distributors. Founded in 1975 and listed on the London Stock Exchange since 1986, Norish operates from eight strategically located sites and provides in excess of 75,000 racked pallet spaces, of which 60,000 are temperature controlled Employing 130 people, Norish provides supply chain solutions for customers on a local, regional and national basis. All sites offer storage (including bonded), handling, de-vanning, picking and packing, cross-docking and distribution with freezing and other temperature controlled services available from the cold stores. Norish's sophisticated Warehouse Management and IT Systems enables clients to access reports via the Internet, so providing real time data to support their sales and/or production planning processes. Many clients have chosen to link their SAP systems into Norish, to automate the order process with electronic file transactions. However, Norish is keen to stress that the traditional lines of communication, where you can speak to the people at the site who look after the goods are also offered!

Norman Hatcliff, Managing Director of Norish, explains: “At all of our sites we have experienced management teams with short lines of communication, meaning that we can take quick decisions which are essential in such a fast moving market. What we are able to provide is a storage and logistics service solution for manufacturers who are looking to control their inbound supply chain, from either UK, European or global manufacturing, accurate stock control, responsive service and an understanding of how a supply chain works.

“We are experienced in understanding our customers’ supply chain issues and potential pinch points. We work with them to solve

these issues proactively and by delivering timeliness of response in respect of inbound and outbound goods and preparation and production of good quality reports. We tend to figure quite heavily in the middle of a manufacturer’s supply chain, whereby we will be holding raw materials, or work in progress and to a degree some finished packed stock pre-secondary distribution.”

Customer-focused The company’s development strategy centres on building long term relationships with customers through anticipating and responding to their changing needs and the provision of a quality service. Norish is committed to ongoing investment in information technology and warehouse optimisation as a key means of maintaining its competitive edge.

Indeed, the multi-temperature warehousing and logistics company is well known throughout the UK food and drink industry for its superior performance, and the dedication and professionalism of its employees.

“We are very responsive to our customers’ requirements. We understand what customer service is about and we are able to deliver solutions to our customers without fuss,” says Norman Hatcliff. “We are flexible, approachable, very customer focused and we get the job done.”

Norish operates across the full spectrum of the food and drink industry. “We provide a myriad of solutions to our wide range of customers. We have 323 live accounts covering all aspects of the food and drink industry from customers who might spend £200 a year to those that would spend £2 million,” he adds.

For example, Norish is currently handling all the drummed stock of fruit juice concentrate for a soft drinks manufacturer. This entails assembling loads and delivering product straight into the customer’s manufacturing units. “We are on short lead times to make sure their production lines keep running,” he points out.

He adds: “We also provide warehousing and picking services for a manufacturer of frozen ready meals, which are distributed to NHS trust hospitals. Orders are electronically received by Norish by 3pm each day, picked and assembled overnight and outloaded for delivery early the next morning.”

The latest development at Norish’s Brierley Hill site, which has recently benefited from a £1.25 million refit, is that it has gained approval to handle the export of pigmeat to China. Brierley Hill is one of only two sites to gain this approval in the United Kingdom.

Market Pressures Norish has had to rapidly adapt its services to meet the changing requirements of customers adjusting to the current challenging trading environment. “With the economic pressures that we have all been experiencing over the past few years, we are seeing, understandably, a drive and a desire from our customers to move their stock levels down so that they can reduce working capital,” comments Norman Hatcliff. “The lead times on supply chains are becoming much shorter and we as operators therefore need to be very flexible in our ability to provide the service to our customers. That means we have to work harder, be more responsive and provide intelligent solutions.. These are areas where we are able to succeed because of the experience that we have and the systems that we operate.”

Work Ethic Norish has a vast amount of expertise and experience within the temperature controlled storage and distribution business. The average service of its management team is 12 years with 275 years of experience in cold storage and warehousuing.

“We have a strong and dedicated team in Norish with a wonderful work ethic, where we consistently deliver a great service and enjoy being part of our customers supply chain. It is quite unique in this day and age, after all ‘People do Buy People’ and we have very good people,” the Norish Managing Director concludes. J

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LOGISTICS

I DAIRY

Modernising Dairy Logistics: Opening Up a Wealth of Possibilities

By Mike Ellis, Divisional Director, Bibby Distribution he margin erosion associated with the T production and processing of milk is significant; and while the value of raw

turning raw milk into the highest-value end product.

milk is increasing at a rate of knots, the value of the product the milk goes into – particularly bottled milk – isn’t. So the big questions being asked by dairy companies invariably are: • How can we improve efficiency?

• How can we reduce the cost to serve?

Consolidation of the farming industry and a reduction in raw milk production has changed the cost model typically expected of supply and demand. This is now, to a greater extent, being determined by suppliers of the raw product Nowadays, milk is also being transported further in its raw form than that of years ago when there were more, smaller, processing plants located in the middle of milk fields or near dense populations. The growth trend for fewer and bigger manufacturing plants, more strategically located, now means the raw milk is moving further afield to be turned into something of a higher value.

Perhaps that is where we need to focus our efforts; because cost-efficiencies in transport can free-up resources elsewhere in the supply chain, and can result in tangible environmental benefits.

It’s all about modernising the industry’s approach to the movement of milk (and other bulk liquids for that matter). By embracing new technologies, being open to new techniques, focusing on optimising peak demand fulfilment and creating greater efficiency in transport operations, there are a wealth of

34

benefits which could really unlock the potential for achieving that all-important competitive edge.

Breaking Tradition For Greater Reward Logistics providers are usually asked a very simple question: how much will it cost to move my product from point A to point B? If asked in this way, the same response will be given time and time again: the cost of the truck, the cost of fuel, plus associated labour.

What we want customers to do is either ask a different question OR be open to an answer they weren’t expecting.

Thinking geographically, is it time for dairy companies to pool together and streamline the logistics process based on location? This would be an advantageous move as opposed to sending several hauliers to collect from the same milk field and passing each other numerous times per day. Can cost-efficiencies be gained by working together and dividing the cost? With technology-based systems this is now possible.

By putting logistics in the hands of third parties who have the expertise and willingness to apply a technology-based efficient logistics solution - who should also be able to guarantee costsavings over a sustained period of time – customers are better equipped to focus on

Fill Empty Running With the Help of Modern Technology Using a milk tanker to transport other compatible products is something which has been fervently resisted in the dairy industry for some time; however with modern technology and tanker washing systems, there is no reason why this shouldn’t be a viable option to fill empty return legs – increasing capacity, and adding considerable value and margin generation. If there is a necessity to transport raw milk over long distances to realise the highest market value, why not bring another product back to reduce cost? Other forwardthinking organisations have adopted this approach and are currently reaping the benefits to the tune of several million pounds.

There is always a way to do things differently and challenge convention; dairy logistics is no exception. Possibly the best way to improve efficiency and reduce the cost to serve is to allow logistics providers to break from tradition, apply technology to the supply chain and offer you a more modern approach to fulfil your requirements. So, don’t ask the same question – or if you do, be open to an answer you weren’t expecting.

That’s what ‘Logistics without limits’ is all about.

For further information contact Mike Ellis, Divisional Director, Bibby Distribution on Tel +44 (0) 151 794 1074. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

I DAIRY

First Milk – Investing For the Future With the completion of the merger between Milk Link and Arla Foods, First Milk is now the only major dairy company owned by British farmers. irst Milk supplies and markets 15% of the milk produced in the UK. It is an integrated dairy business involved in milk supply, cheese production and ingredients development.

F

First Milk supplies and markets 15% of the milk produced in the UK.

As a dairy co-operative, First Milk’s main strategic objective is to maximise the returns to its farmer shareholders by creating an added value food business through growing its brands and diversifying its product and customer base.

Expansion into the Food Sector First Milk recently secured a £120 million refinancing deal, provided by Lloyds TSB Commercial Finance and Barclays, to fund its expansion into the food sector over the next three years. Lloyds TSB Commercial Finance and Barclays had also offered £130 million in funding to the co-operative in 2009 to finance its long-term expansion into functional foods.

First Milk has completed a number of recent deals to broaden its product range and enter new market sectors. In September 2011, it established a strategic joint venture with New Zealand-based Fonterra to produce premium whey proteins to go into functional food products for consumers across Europe. The two dairy farmer co-operatives are combining their intellectual property and industry expertise to add value to the whey streams at First Milk’s Lake District creamery in Cumbria.

First Milk is also involved in joint venture with partners Milk Link and Arla

First Milk is Britain's biggest Cheddar cheese specialist, supplying one in four of all packs of Cheddar sold. The cheese range also includes Red Leicester, Double Gloucester, Mozzarella, Mascarpone and Cottage Cheese. In addition to supplying retailer own-label products, First Milk has developed a strong brands portfolio including Mull of Kintyre and the Lake District Cheese Company.

The dairy co-operative is also a major producer of a variety of dairy ingredients including skimmed milk powder and high value whey protein concentrate.

Based in Glasgow, First Milk has operations across the UK, with creameries in Cumbria in England; Pembrokeshire in Wales; the Kintyre peninsula and Isle of Arran as well as a major dairy in the East Coast of Scotland. Its cheese packaging is First Milk is Britain's biggest Cheddar cheese specialist. also based in Wales.

Bill Mustoe, chairman of First Milk.

Foods at Westbury Dairies in England, which processes up to 2 million litres of milk per day into skimmed milk powder, cream and butter.

In May 2012, First Milk took another step into the premium functional food sector with the acquisition of sports nutrition company CNP Professional for an undisclosed sum. Headquartered in Manchester, CNP Professional sells a broad range of products for the sports nutrition market.

In June 2011, First Milk strengthened its presence in the UK and international cheese markets with the purchase of Kingdom Cheese and Kingdom Dairies, both based in Fife in Scotland. In addition to producing a comprehensive range of award-winning cheddars, First Milk can now offer its customers a selection of cottage cheese, soft cheese, mozzarella products and creams.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

Robust Financial Performance First Milk delivered a robust performance and solid financial results for the year to 31 March 2012. Pre-tax profits increased from £7.2 million in 2011 to £13.3 million but £9.6 million of this figure relates to the profit made on the sale of First Milk’s shareholding in Robert Wiseman Dairies, which has been acquired by Mullar Dairy (UK).

Group turnover increased by 35

1% to £579 million Net debt rose during the year by £3 million to £47 million, mainly as a result of increased stocks required to facilitate the growth in the sales in the company’s Lake District Cheese brand, investments at manufacturing sites and the acquisition of Kingdom Cheese and Kingdom Dairies, but reduced in February 2012 following the sale of the Wiseman stake.

North Wales cheese-packing plant – Maelor.

First Milk is also installing a brand new cheese-making facility at its existing site in Campbeltown on the Mull of Kintyre. The new factory will allow for increased production and provide processing efficiencies. The investment will also secure the future of 38 dairy farms and 100 jobs on the Scottish peninsula.

“We’re squeezing more value Eventful Year out of the supply chain by “2012 has been quite a year for First Milk has developed a strong brands portfolio including Mull of Kintyre and doing things smarter or getting the British dairy industry. The the Lake District Cheese Company. involved in other sectors. This Germans have now got their is all with one over-riding soliname above the door at Wiseman’s East abroad, focused on excellent customer tary aim – to improve returns we can Kilbride HQ and the Danes at Arla are service and partnerships that ultimately pass back to our farmer shareholders,” in charge at Milk Link,” says Bill give us the ability to pass back better says the First Milk chairman. J Mustoe, chairman of First Milk. “On returns for farmers and that mitigates one side it’s a positive that international some of volatility of the global market.” players see that value, but on the other side I know there is disappointment Investment among many British farmers that they First Milk is continuing to invest at all now have reduced options if they want its production sites to drive efficiencies. to access value and control their own It has invested £15 million at its Lake destiny.”

District Creamery to increase branded Bill Mustoe continues: “Our drive is cheese production and to enable it to all about building an added value food produce whey protein concentrate as part company that can generate a range of of the partnership with Fonterra. First new income streams at home and Milk has also made investments in its

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FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

Cooper Software – The Systems Integration Specialist ooper Software specialises in providing C integration services and bespoke system development for the food industry. The ISO9001 accredited company’s products and services are designed to make the process of regulation, compliance and audit easier whilst delivering operational and production efficiencies, leading to considerable savings.

Cooper Software uses the unique software technology it has developed to seamlessly connect users’ internal IT with the IT of their suppliers and customers. They provide easy to use front end applications designed around its customer’s business flow, enabling multi step, sometimes very manual transactions to be automated in a single button press or barcode scan.A number of their products have been specifically designed for the food industry.

The company’s BRAVO software provides business to business supply chain integration (EDI) between customers and supermarkets (such as ASDA, Tesco, Marks & Spencer’s, Waitrose) and other retailers, online shopping, banks, and freight forwarders. BRAVO incorporates Automated Order Receipt, ASN and Delivery Note, Bank Payment Processing and Shop Site Integration.

Cooper Software has also developed its ACQUIRE system; an automated data collection system, featuring a library of off-

Frank Cooper, managing director of Cooper Software.

the-shelf transactions (50+) covering all aspects of operations, including warehouse, manufacturing, production, packaging and shipping. It also facilitates the design and implementation of a best practice, end to end wireless and bar-coding system.

Cooper Software has worked as a techni-

STORAGE

cal partner for First Milk for several years.

The relationship started when the IT expert was asked to look at First Milk’s production processes to enable the dairy co-operative to achieve two main objectives: * Simplify the process of traceability, so that at all stages within the cheese packing process from cutting to packing (including integrating weighing and labeling) to delivery – regardless of routing – are captured automatically, audited and reported on. * Use systems to better make use of the offcuts (cheese that is not individually packed for the supermarket), to increase the profitability of the production.

Cooper Software is now delivering its leading edge ACQUIRE Automated Data Collection System across multiple sites within the First Milk Group.

"Cooper Software is providing us with a simple and effective solution which will save our staff a significant amount of time.

The delivered system made compliance and quality assurance automatic and the supporting information was easily accessible," says Group IT Manager, Brett Bridgwater.

"They worked through the full process with us and helped us define our requirements and provided friendly support throughout the process." J

LOGISTICS

PHS Teacrate Invests Million in RTP Boost For Retailers series of multi-million pound investA ments by a leading returnable transit packaging (RTP) specialist is helping food and non-food retailers survive the recession by providing cost-effective logistic solutions and supply chain stability. PHS Teacrate has defied the difficult, economic situation by investing in its infrastructure, including a transport hub in Bristol serving the South West, environmentally friendlier vehicles offering reduced haulage costs and a new online presence for greater access to products. The ambitious company’s modern national fleet now operates out of eight depots nationwide giving fast and reliable delivery of plastic crates and trays to anywhere in the country.

In addition, forward thinking PHS Teacrate has purchased the manufacturing tooling from Rehrig Pacific UK to exclusively produce its range of plastic crates and trays for the home and European markets. Purchasing Rehrig manufacturing tooling will also help PHS Teacrate penetrate new markets. As part of this strategy, the company is launching a dedicated new website for suppliers, producers and retailers of food and non-food items.

By making these significant investments, PHS Teacrate is offering producers and retailers of any size reduced logistic costs by providing a much greater choice of RTP from a single supplier, along with the option of renting crates which saves on storage space and capital

outlay. The company already handles millions of trays and crates every year, counting famous high street names among its client base. For further information contact PHS Teacrate on Tel +44 (0)20 8282 0000 or visit www.teacrate.com. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

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I BEVERAGES

Quality, Innovation and Efficiency Light the Way to a Brighter Future Andrea DelGrosso, Managing Director at Sidel UK talks to Food and Drink Business about today’s beverage market — and argues that economic downturn can bring opportunities to companies smart enough to seize them.

Food and Drinks Business (F&DB): With the UK in double-dip recession, ongoing problems in the Eurozone and sluggish global recovery, is there anything positive to take out of today’s market?

Andrea DelGrosso (AD): It’s been a very clear view of industry trends. tough three years for everyone, and we’ve Increasing the price of products is now witnessed the most hostile beverage busi- more difficult to achieve — something I’ll ness environment that I can remember. come back to later — so there is a renewed But there is light at the end of the tunnel. focus on internal efficiency, innovation If we take a look at the market just five and quality to generate higher sales and years ago, it was a very different place to where we are now. There was less of a focus on efficiency: with high returns, raw materials may not have been sourced from the most cost effective and high quality suppliers; healthy margins helped to absorb lost productivity owing to unreliable bottling operations; and delays in delivery were offset by strong demand.

Today, these are luxuries that no company can afford. A survey from Lloyds Banking Group showed that the average UK household had £34 less to spend in June 2012 than they did in June 2011. What money consumers do have is largely taken up by essentials such as the mortgage and utilities, which means competition for the pound in people’s pocket is incredibly fierce. This severely limits opportunities to raise prices, precisely at the time when the cost of raw materials is rising.

Margins are being squeezed. But, Sidel is seeing that many companies are working hard to eliminate the dead wood, to become leaner, profitefficient organisations that can squeeze every last ounce of margin from their products.

F&DB: How is Sidel seeing this reflected in the beverage industry?

AD: Sidel is a benchmark supplier Andrea DelGrosso, Managing Director of Sidel UK. of bottling solutions and so we have a 38

margins. These are tenets that should guide companies during boom as well as bust.

From Sidel’s perspective, we’re seeing a focus on innovation that delivers real value in bottling solutions. Forward thinking companies are looking to suppliers who deliver a return on investment over the short, medium and long term. This is borne out by the fact that 2012 is proving to be a strong year for Sidel, which provides high quality and value bottling solutions.

F&DB: What does this mean in terms of what producers need from their bottling solutions?

AD: With such a tight squeeze on margins, Sidel has identified four key factors that producers need to drive efficiency.

1.Reliability is a big theme. When every penny — and every second — counts, unscheduled downtime can be the difference between profit and loss, and ultimately, business survival or failure. At Sidel, reliability means delivering the optimum results in a dependable and consistent manner.

2.Flexibility is similarly important.

It’s a fast moving market with the need to meet rapidly changing consumer tastes. Switching from product to product demands the quickest possible turnaround time, so that lines are running at maximum capacity for the maximum amount of time for maximum productivity. At Sidel we strive to give our customers what their production requires, while ensuring the integrity and longevity of their product packaging.

3.Maintenance and cleaning are major factors too, critical to both efficiency and food safety. There’s

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

no point to deliver a solution that works perfectly for a month but then needs a week of maintenance or cleaning downtime to keep it running safely. When Sidel introduces an innovation into its portfolio, it has gone through a design process where the first questions are, is this easy to maintain and is it easy to clean?

4.After sales is perhaps the biggest change in need. A decade ago, many producers simply bought the machine and were largely left to get on with it by their supplier. It’s not an approach that Sidel has ever followed because we know that our customers see the significant value in what we bring after the solution has been installed.

Sidel’s leadership in after sales comes from the fact that we have always been interested in the customer and not just the solution. We take a holistic view, listening to and learning from customers so that bottling is carefully aligned to specific

nities for external growth?

AD: As I’ve said, external growth and price increase are difficult, but it’s certainly not impossible. Sidel sees three key areas where producers can help to build sales.

Firstly, with static overall demand in many markets, successful producers are focusing on high growth segments. One of the biggest trends is towards beverages associated with health and well-being, and the industry is paying attention.

A recent study from Innova Market Insights showed that in the 12 months to June 2012, over 58 per cent of the soft drinks launched globally had some kind of health association . Another 2012 study from the British Soft Drinks Association shows that sports and energy drinks grew by 10 per cent in the past year. Sidel is helping its customers to exploit this sector by renewing its portfolio so that solutions take advantage of the latest technologies and can easily cope with new product development.

The latest Sidel Combi Predis™ combines bottle blow moulding, filling and capping in a single system.

business objectives; an ideal solution for one customer might not be the optimum for another. And it delivers bottom line benefits that can seriously improve precious margins: we recently audited one customers’ nine-year-old bottling line, increased production efficiency from 58 per cent to 88 per cent, dramatically cutting cost per case.

In addition, we have invested in the best engineers and technicians and put them at the disposal of our customers. When customers need support, it’s always there and in most cases we are able to be at their plant within few hours from the call, delivering the highest possible service quality.

Innovative bottling solutions that can deliver on these four factors go a long way to helping producers to maximise efficiency and widen margins.

F&DB: Where does Sidel see opportu-

Secondly, with developed markets maturing and most affected by economic downturn, the developing world is still a place where healthy growth is achievable.

Euromonitor International sees Brazil, China, India, Indonesia and Mexico leading the way in terms of soft-drink volume growth. China alone is forecast to account for over 62 per cent of global growth in vegetable/fruit drinks between 2011 and 2016.

And finally, mergers and acquisitions will deliver new growth areas for companies set on expansion. Buying brands is often a very fast and effective way of increasing market share, as well boosting economies of scale and reducing dependency on a small number of customers. It’s a trend that is well established and is set to continue.

F&DB: Has the first casualty of the

drive for efficiency been producers’ commitment to softer business priorities such as sustainability and the environment?

AD: Smart producers know that real sustainability and environmental initiatives actually save money and are fundamental to efficiency. They’re hard-headed business realities. Indeed, we are seeing many of our customers ramping these programmes up, rather than reeling them in because they deliver strong ROI. Sustainability and the environment are all about using as few resources, both renewable and non-renewable, as possible — and maximising productivity on those that are essential. That sounds like good business to Sidel and we are continually innovating to minimise our customers’ environmental footprint and optimise resource use. PET bottle lightweight is just one example where we’re helping our customers to be both responsible and efficient.

Another example where sustainability and efficiency come together is the latest Sidel Combi Predis™, which combines bottle blow moulding, filling and capping in a single system. It replaces bottle rinsing using water and chemicals with ‘dry preforms decontamination’ using hydrogen peroxide. Whilst it ensures the highest standards of product quality and hygiene, it also offers significant environmental benefits, eliminating the need for water and creating no effluent. It saves the 250 cubic metres of water and 200 litres of chemicals used daily in a traditional aseptic bottling line. As well as resource efficiency, Sidel Combi Predis™ cuts annual operating costs by 30 per cent when compared to traditional dry bottle decontamination.

F&DB: So, to sum up, Sidel is optimistic for the future?

AD: Now is the time for consolidation in the beverage industry. This doesn’t mean reactive and timid strategies— in fact it’s just the opposite. Producers who are proactive — investing in solutions that better match their businesses — will both weather the continuing storm and hit the ground running when real recovery kicks in.

Our customers thrive because they take the longer view and Sidel supports them with a clear commitment to quality, innovation and efficiency — because Sidel is “A Better Match”. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

39

I LABELS

Fix-a-Form – Market Leading Multi-page Leaflet Labels From Denny Bros n-pack promotions are one of the O most frequently used methods of differentiating products in order to boost sales and win new customers for brands to get closer to. Everyone is looking at driving promotional activity online and that’s where multi-page labels score so highly.

Fix-a-Form from Denny Bros is the market leading multi-page leaflet label helping to communicate large amounts of text on-pack including brand benefits, cross-range product details, and multi-lingual information. Incentives such as competitions, inserts, vouchers, scratch-off panels, SMS text promotions, and collectables all help to win over the hearts and minds of those with spending power.

More than ever brands are looking to be

bigger, bolder and more outstanding. Not just in terms of shape and form but in terms of the giveaways and prizes that are on offer, especially when the promos are linked to the web and SMS texting.

New ideas and a greater selection of shapes and materials are available; and while a square shape is sometimes right for a product, there are also circles, hexagons, rectangles, teardrops, and almost any contoured-shape to fit in synergy with the

existing packaging design.

Add Unique Random Numbers to any Fix-a-Form and you have all the excitement of instant win promotions professionally delivered on-pack. A variety of materials can be used including premium grade paper and paper as lightweight as 45gsm to create the perfect multi-page leaflet. Printing can even be on highly innovative synthetic material which is durable enough to work on products where paper is not an option.

Brand owners are looking to use their packaging to provide solutions and tangible benefits - and that is why Denny Bros is manufacturing Fix-a-Forms for a wider range of industry sectors than ever before. J

Russell Farm Produce Communicates the Right Message With Episys ussell Farm Produce, producers of high quality vegetables to R the food industry, is using the Ultimate™ labelling system from Episys, the global information technology solutions and services company, to ensure clear and consistent labelling of all pallets shipped to suppliers.

Russell Farm is committed in growing and producing high quality vegetables such as potatoes, onions, leeks, carrots and celery where they produce and distribute to the food industry and companies that make cooking sauces.

The business is benefitting from the use of the Episys Ultimate™ labelling software to create all the labels for the outer cases of products that are shipped to suppliers.

Julie Welbourne, office administrator at Russell Farm Produce, says: “We have been a client of Episys for over nine years now and are still extremely happy with the service and support that they provide us when it comes to our labelling requirements. At our farm in Cambridgeshire, we grow, peel and supply onions and vegetables to companies who use our produce in sauces. It’s crucial to our business that all pallets containing fresh produce clearly show what’s inside and displays important information such as when it was produced and the best before date.” J 40

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

I LABELS

Etiquette Labels Celebrates 21 Years in Business tiquette Labels is celebrating a landE mark 21 years as the UK’s independent experts in labels and labelling. Since its establishment in 1991, the North Walesbased manufacturer has been providing complete labelling solutions for some of the UK and Europe’s most prestigious producers and as a result has gained an outstanding reputation throughout the industry for quality and service.

With an extensive and diverse portfolio of products that includes printed primary labels, plain labels, printers and consumables, software, industrial label applicators and print and apply machinery to name a few, Etiquette has ensured continuing and successive growth.

Director Tom Bunce says: “Etiquette is very proud to be celebrating 21 years in business and to be enjoying continued growth during what has been a tough few years for our industry is really quite and achievement. We started with just one plain label press and two staff and now 21 years later we have our own 2-acre modern production facility, over 35 talented and dedicated people in our workforce and are

servicing industries worldwide.”

Tom Bunce and Co-Director Christiane Gough initially founded Etiquette after identifying a need in the labelling industry for a company specializing in plain labels and consumables for barcoding that would satisfy the burgeoning outer-case labeling requirement demanded by major producers of the time. Etiquette quickly established itself as a quality manufacturer and as a result began to receive requests from customers to begin printing colour selfadhesive labels. With investment in Mark Andy printing presses production increased and though mainly supplying to the food industry, Etiquette soon diversified into providing primary labels for industries including automotive and defence, toiletries and cosmetics, logistics and agrochemical amongst others.

Concurrently, the company also began developing its own range of industrial label applicators and print and apply labelling systems enabling Etiquette to deliver complete, bespoke solutions to any customer requirement. Director Christiane Gough believes it is this emphasis on satisfying customer demand that has driven Etiquette through its last two decades in business She says: “We continue to invest in new equipment, people and technologies and I believe our success can be attributed to a focus on customer service and support throughout the supply chain and an independent ethos that gives us real stability. It is this attitude that has got us to where we are now and I am certain it will secure an increasingly bright future for Etiquette and our customers.” J

I SLEEVES

Kliklok Sleeves GU Desserts

liklok has completed the successful installation of their K Certiwrap C150 sleeving machine at Noble Foods, packing a range of delicious GU dessert mini-pots.

In 2010, Noble Foods acquired the premium dessert company Gu Puds, and now produces a complete range of miniature chocolate pots, cheesecakes, and fruit puds. Kliklok worked closely with Noble Foods to design the C150 wraparound cartoning machine to exactly suit their production requirements, to sleeve three different sizes of dessert pots, in single packs and triple packs. The project included integration with a Geysell feeder to apply a small wrapped spoon to the lid of the ‘singles’ pack prior to the carton being wrapped around and glued at the base. The project also included the integration of a Wolke inkjet coder.

The C150 was designed for Noble Foods with a scroll infeed system, ideal for the smooth transfer of the round pots through to the machine sleeving process at up to 150 cartons per minute. With the benefits of icon-based HMI touch screen controls, patented rotary carton feeder, powered carton hopper, and quick size change facility – the C150 provides the reliability and flexibility that Noble Foods needs for their growing range of products, as well as the reassurance of continual production efficiency, with minimal down-

time, reduced maintenance and low running costs.

For further information or to view the Kliklok range of equipment, contact Michelle Newman at Kliklok International or visit www.kliklok-int.com. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

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Zeller Proves Crucial Closure Choice he Crucial Sauce Company of T Birmingham has selected Zeller Plastik UK, a global closure systems company, to supply 31mm hinge dispensing closures with induction heat seal liners for its extensive and ever growing range of sauces, condiments and dressings for the food service and selected retail sectors. The closure caps both the round HDPE 1 litre catering and 500ml retail packs.

The Crucial Sauce Company was established in 2001 and has invested heavily in new product development over the past ten years to create versatile innovative original recipe sauces ranging from staples such as ketchups, brown sauce and mayonnaise to spicy ethnic varieties developed for caterers

and consumers alike for use as table sauces, dips, dressings, marinades and cooking ingredients.

Gabe Gabriel, MD of The Crucial Sauce Company, comments: "When we first started

purchasing from Zeller Plastik UK, our orders were for single pallets which lasted us weeks but more recently, we order multiple pallets weekly. We have enjoyed growing with Zeller Plastik UK and are proud to say that we have grown over 200% in three years and Zeller have helped us to achieve this with their commitment and great customer service."

The generously sized retail pack has been a runaway success competing with the famous brands on the shelves of chip shops, frozen food stores, convenience stores, large independents, butchers shops and farm shops nationwide.

For further information contact Zeller Plastik UK on Tel +44 1603 894800 or visit www.gcs.com. J

Payne’s Wide Width Message Tape Offers Quick and Colourful Promotions eading provider of packaging solutions L Payne is seeing increased interest from manufacturers looking to integrate promotions within their pack design. The high colour graphics and sophisticated gravure print of Payne’s wide width message tape ensure maximum impact and enhance the product’s overall appearance as it appears to be an integral part of the pack design.

The colourful design possibilities also boost on-shelf presence and influence the decision making of buyers at the point of purchase.

Wide-width message tapes can be applied on their own or integrate successfully with Payne’s extensive range of printed tear tapes for no-knife easy opening of the pack.

These opening tear tapes also provide additional communication opportunities with the ability to print messages or codes to 42

drive online or SMS promotions.

Recently, Payne’s wide width message tapes were used in the consumer goods market in the USA, to support a sales-grabbing promotional campaign on pack.

To change the packaging would have been costly and time-consuming, but adding Payne’s wide-width message tape to the outside of an existing pack meant they could quickly run a fixed-term promotion without needing a full redesign.

Payne’s wide-width message tape is also an ideal message medium for markets including wrapped and bagged foods. It means manufacturers can run fixed-term promotions and communications, or quickly change between them, without needing a full redesign.

Food giant Kraft has also used Payne’s 30mm wide width message tape, to deliver an on-pack promotion across its Club Social crackers range in Brazil.

Kraft wanted the eye-catching tape to carry a colourful promotional message, referring purchasers to a website where they had the chance to win an iPhone 4. The print possibilities of the Payne tape meant the promotion was eye-catching and helped improve the on-shelf impact of the product.

A further consideration in choosing tape from Payne, part of the Coated & Security Products division of Filtrona plc, was that

production line speeds would be unaffected by the application of the message tape.

For further information contact Payne on Tel +44 (0)115 975 9000 or visit www.payne-worldwide.com. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

I MEAT PRODUCTS

Walkers Midshire Foods Leads Premium Sausage Renaissance Leicester-based Walkers Midshire Foods is one of the leading manufacturers of premium sausages and traditional hams in the UK. ndeed, Walkers Midshire Foods has been at the forefront of the renaissance of the quality sausage that is capturing an ever increasing percentage of the total British sausage market. The company is part of Samworth Brothers, the family-owned chilled foods group which employs over 8,000 people across its 13 businesses located in Leicestershire and Cornwall.

Samworth Brothers runs each of its sites as autonomous businesses in order to respond as quickly as possible to customers' needs, with each business linked by the group’s common culture of 'People, Quality, Profit'. This allows the people closest to the customer to make important decisions speedily and accurately, so that all staff can directly influence customer service and the performance of their business.

Walkers Midshire Foods employs over 700 people and supplies a number of the major UK retailers including Tesco, Waitrose and Morrison’s, as well as catering outlets and sister companies within Samworth Brothers.

Walkers Midshire Foods was established as an independent business in 1996, born out of the success of Walkers Charnwood Bakery, a leading producer of high quality own label and branded pies, and one of the country's few bakeries specialising in the production of the authentic Melton Mowbray Pork Pie.

I

fruits and other exotic ingredients.

Walkers Midshire Foods also manufactures a range of hams and other cooked meats. Traditional immersion, or dry curing techniques are used to capture the real flavour and texture of the meat. Drawing on its skills in curing, decorating, flavouring and glazing natural hams, Walkers Midshire Foods has developed a leading position within the premium ham market. J

Significant Investment Since becoming independent, Walkers Midshire Foods has grown organically, investing significantly to expand the facilities at its site in Leicester. The latest factory expansion, involving capital investment of £3 million, was completed earlier this year. Other recent projects include the installation of a new £3 million effluent treatment plant in 2009 and expansions to ham and sausage production in 2008 and 2007 resectively. Well over £20 million has been spent on expanding the site in the last ten years.

Investment in bespoke equipment, often designed in house, has resulted in Walkers Midshire Foods being one of the most efficient and largest producers of premium natural cased sausage in the world.

The company’s team of skilled butchers debones prime, fresh cuts of 100% British pork to be filled into natural casings in the traditional way. In addition to a wide range of regional sausage recipes and traditional favourites, the company also makes a selection of seasonal products.

The in house team of chefs develops new recipes by carefully combining the coarsely chopped meat with seasonings from the company’s on-site blending facility, and using a wide range of fresh vegetables,

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

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I BOILERS

First Steam Generators at Heinz are Babcock Wanson’s ESMs abcok Wanson ESM Steam Generators - the first Steam B Generators to be used by HJ Heinz - have been installed into the food company’s Dundalk facility in Ireland as part of a strategy to reduce energy consumption. Producing frozen ready meals primarily for the UK, Heinz’s Dundalk plant is a large steam user, using steam in the cooking process and to heat water for wash down.

The plant had been using a large old firetube boiler but, as part of an ongoing plan to improve energy efficiency across all operations including the steam boiler system, the decision was made to switch to two Babcock Wanson ESM 7000 sequence conBabcok Wanson ESM Steam Generators have trolled Steam Generbeen installed into HJ Heinz’s Dundalk facility ators complete with in Ireland. high efficiency Economisers. These have been installed into a new custom built boiler house.

Heinz’s Dundalk plant has already recently achieved certification under the Energy Agreements Programme (EAP) to IS393:2005 and is expecting further efficiency improvements with the ESM Steam Generators in place. In addition, the ESM7000s will also better match the steam load than the previous system was able to accommodate.

Meanwhile, yeast production company Lallemand GB has installed two Babcock Wanson BWD fire tube boilers with integral economiser and BW72H control system into its Felixstowe plant – the largest fresh yeast production facility for the UK baking industry. The BWD60 Lallemand GB has installed two Babcock boilers replace the exist- Wanson - BWD fire tube boilers with integral ing three-pass fire tube economiser and BW72H control system into boilers in the main plant its Felixstowe plant. room.

The other key element to the boiler configuration was the use of Babcock Wanson’s prestige BW72H control system which greatly alleviates the normal demands of running a steam boiler with its in built self checking controls and minimal testing needs. This has enabled the company to both manage its complex steam demand pattern while helping to reduce costs. J 44

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

I BOILERS

Torishima (Europe) Projects Delivers Best in Class Energy Centres hile the Olympic flame has long since W flickered out, Torishima (Europe) Projects is busy creating its own legacy in

ing times, companies are focusing on steam and hot water systems to future proof their businesses against fuel costs, improving efficiencies, as well as reducing their carbon footprint.”

offering in the marketplace. This ensures full integration of the required kit and relevant processes – leading to a simplified delivery structure and even more robust and efficient systems.”

TEP is well on the way to emulating the Toris hima parent company’s impressive double digit growth over the last 10 years, resulting in a turn over of over US$600 million per annum.

the specialist field of renewable energy – a fact noted by the Business and Industry Today and Society and Living Magazines, who bestowed the honour of ‘Company of the Year 2012’ on the Wiltshirebased firm.

TEP are turnkey specialists in the delivery of steam, hotwater and associated process plant, delivering best in class energy centres to the water/waste/renewables, food, health and process sectors. All capabilities - including design and project management - and engineering disciplines are maintained in house.

A typical Torishima turnkey energy centre used in the food and beverage industry.

Control and Heat Recovery Systems Alongside proven expertise in conventional boiler house design and delivery, TEP has a particular specialism in biogas utilisation systems and offers unique control and heat recovery systems to deliver efficient and robust assets for its clients. TEP has been involved in some of the most high-profile and demanding projects in the sector to date and has a fully developed supply chain which has proved its competitiveness over recent awards and certainly offers value against established brands operating in this sector.

TEP has had pleasing early successes with a number of leading brands, recently refurbishing a soft drinks supplier’s boilerhouse and steam systems at a plant on the outskirts of London. The project helped deliver robust processes to support the peak production period during the Olympics, which will result in double-digit energy saving in this area of the company’s operation because of increased boiler efficiency, heat recovery and associated practices.

Business Development Manager, Guy Forrest-Hay, states: “During these challeng-

Expansion TEP’s success is reflected in an imminent move to new premises in Westbury, Wiltshire. With a footprint of 15,000 square feet the new site is able to house a training centre that will up-skill the engineers of the future, whilst also accommodating the company’s expanding workforce and significant R & D programme in its drive to bring much needed innovation to the area of energy centre operation, maintenance and optimisation.

The recent acquisition of MGR Fluid Power in Leamington, a major provider of specialist hydraulics systems solutions, has extended the company’s reach even further.

MGR’s impressive and diverse client base includes Formula 1 racing teams and involvement in the most recent ride to be unveiled at the country’s leading theme park. A strategic alliance has also been formed with world leading boiler outfit ICI Caldaie, which Guy Forrest-Hay believes has further strengthened their position in this niche market.

He comments: “Having the capability to provide a complete boilerhouse is a unique

Future Developments Talking about TEP’s future developments, Guy Forrest-Hay adds: “We want to continue to implement the business within our key sectors, whilst developing our offering into the Middle East and South America where Toris hima is already recognised as a leading brand.

“We want to bring forward much-needed new innovations to the marketplace, which will include a revised intelligent control system - due to be launched to the industry in the summer of 2013 - and further enhancements to boilers that will increase efficiencies to over 98% and deliver immediate bottom line savings for our clients.” J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

“Having the capability to provide a complete boilerhouse is a unique offering in the marketplace.

This ensures full integration of the required kit and relevant processes – leading to a simplified delivery structure and even more robust and efficient systems.”

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FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

47

I PACKAGING INNOVATION

Colour Splash From DS Smith Packaging Pushes Sales and Brand ID For Weetabix S Smith Packaging Fordham has D worked very closely with cereal category brand leader Weetabix to support the positioning of a range of products for supply to the cash and carry sector.

Using the latest high quality post print (HQPP) technology, the team at DS Smith were able to develop prints that reflect and support a new range of shopper packs, replacing the original one or two colour prints.

The increased impact of the packaging, which includes products from the Weetabix and Alpen range, helps to provide a visual cue in the warehouse, creating stronger brand presence which compliments the brands focused marketing campaign to drive market share, and supports activity to promote the brand names through various media including TV commercials.

Barry Hart, Sales Manager at Fordham, confirms how: “DS Smith Packaging has

helped deliver a pack that creates strong recognition through the supply chain, which reflects the consumer pack well.

We are extremely pleased with the results achieved through the new outer packs and have already received great feedback.’’ J

DS Smith’s New Pack Challenge All Wrapped Up For Kendal Mint Cake endal Mint Cake, produced by Romney’s of Kendal, is now K ranked as one of the world’s most travelled sweets. When the brand needed a packaging transformation they turned to DS Smith Packaging to develop a more flexible and improved fine flute display unit.

The original shrink wrapped, litho printed solid board, has now been replaced with a much stronger and improved offer. The new unit supports the brand by positioning the quality of the product through the use of white liners, white fluting and high quality two-colour print.

The DS Smith, fine flute corrugated material, CartonFlute, has helped ensure a high quality print finish, which compliments the product with its crisp and clean finish.

Designed with a crash lock base to help with the packing process, the pack also has a glued display header to help promote the product instore on shelf or at till side.

John Barron, Managing Director of Romney’s, confirms that, “we are delighted with the results of the pack and look forward to extending the range of products supplied to us by DS Smith Packaging Belper.” J

Packaging Services Management Honoured With Global Award by Ford Motor Company Smith Packaging business, ADS Packaging Services Management (PSM),

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has been honoured by Ford Motor Company as one of its Top Performing Suppliers for Excellent Service and Outstanding Support in 2011.

The packaging company was one of only two UK businesses to be awarded at the Ford World Excellence Awards in the United States.

Tony Johnson, General Manager of PSM, was in the USA to receive one of the 36 World Excellence Awards. He said: “PSM is a small team but this award shows that we can deliver service at a level that global companies recognise. Our relationship with Ford continues to deliver excel-

lent service and savings to its business, and has actually been the launch pad for our business offering in Europe.”

Acting as the first tier supplier, PSM provides a single point of contact for any business requiring packaging products, services and supplies (including contracted and mandated suppliers) with easy access to DS Smith Packaging’s products and services, allowing customers to focus on their core business.

Tony Brown, Group Vice-President, Ford Global Purchasing, thanked each supplier for its dedication and hard work throughout 2011. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2012

SOME OF OUR PRODUCTS

Is one of Ireland's most established Engineering companies with years of experience in the manufacture of Equipment dedicated to the

Meat, Dairy & Hygiene Industry

Mitchelstown, Co. Cork. Ireland.

Phone: 00353-25-84279 • Fax No: 00353-25-84888 E-mail: smisco@eircom.net