F&db sept:oct 2013

September/October 2013

Refresco Gerber – Creating a €2.3 billion business

Food & Drink Business Website:

www.fdbusiness.com

C o n t e n t s

- 40 R ETAIL M ARKET

- 3 M ERGERS & A CQUISITIONS Coverage of British and international deals.

UK food and groceries to be worth over £200 billion by 2018.

- 7 C OVER S TORY

- 47 M ARKET F OCUS

Refresco Gerber – Creating a €2.3 billion business.

PAGE 3

Heiner Kamps, CEO, Theo Muller.

- 11-13 F RUIT J UICE

Convenience of ready meals irresistible for UK consumers.

P AGE 17

Ranjit Singh, CEO, 2 Sisters Food Group.

British cheese tastes broaden.

R EGULARS

Innovation key for squeezed European fruit juice industry.

Bottling & Packaging. . . . . . . . . . . 14, 37-39

Juice Summit 2013 - 1 & 2 October 2013 – Brussels.

Processing & Manufacturing . . . . . 15, 21-24

Ecolean – A lighter and smarter approach to packaging . . . . . . . 14

PAGE 36

Peder Tuborgh, CEO, Arla Foods.

How Idhammar’s OEE System and CMMS benefits the food and drink industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

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Ronald Kers, CEO, Muller UK & Ireland Group.

- 17 C ONVENIENCE F OODS 2 Sisters Food Group introduces new senior management structure.

Materials & Ingredients . . . . . . . . . . . . 25-28 Energy & Environment. . . . . . . . . . . . . 30-33 PAGE 40 Quality & Safety . . . . . . . . . . . . . . . . . 42-46 TwistDx – Revolutionising DNA testing . . . . . . . . . . . . . . . . . . . . . 45

Joanne DenneyFinch, CEO, IGD.

- 25 F OOD I NGREDIENTS Managing Director: Colin Murphy Editor: Mike Rohan

Frankfurt welcomes the world to Fi Europe & Ni 2013.

Group Operations Manager: Sylvia McCarthy Senior Sales Executive: Paul Lees Production Manager: Sylvia McCarthy

PAGE 7

Hans Roelofs, CEO, Refresco.

- 35 & 36 D AIRY

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Arla Foods sets new standards in efficiency and sustainability.

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Arla Foods’ strategy delivers increased earnings.

- 37 PACKAGING

PAGE 11

Tasty menu at Packaging Innovations London 2013.

Andrew Biles, President, AIJN.

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FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

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GSK to Sell Lucozade and Ribena to Suntory For £1.35 Billion Pharmaceutical and healthcare group GlaxoSmithKline has agreed to sell its nutritional drinks brands Lucozade and Ribena to Suntory Beverage & Food, the Japanese consumer goods company, for £1.35 billion in cash. Annual sales of the two brands were approximately £0.5 billion in 2012. It is expected that the transaction will be completed by the end of the year, subject to regulatory approvals.

GSK’s Consumer Healthcare business has been increasing its focus around a core portfolio of healthcare brands, with a particular emphasis on emerging markets. As part of this, the company initiated a strategic review of Lucozade and Ribena in February 2013 and subsequently announced its decision to divest the brands, subject to the realisation of appropriate shareholder value.

The net proceeds of the transaction after tax, fees and costs are estimated to be approximately £1.3 billion. The net profit will be excluded from core operating profit and EPS in 2013. The proceeds will be used to reduce debt and for general corporate purposes.

The transaction is an asset deal that will be completed on a cash and debt free basis. SBF will acquire global rights to the brands and GSK’s Coleford manufacturing site, which is located in the Forest of Dean in the UK. The vast majority of employees at the site and those working on Lucozade and Ribena in commercial and R&D functions will transfer to SBF under the provisions of English employment law. In Nigeria, GSK will continue to manufacture and distribute Lucozade and Ribena under licence from SBF.

SBF is a leading global soft drink company, headquartered in Japan and listed on the Tokyo Stock Exchange, with an integrated platform across four key regions: Japan, Europe, Oceania and Southeast Asia.

SBF has an extensive product portfolio and in 2012 was the number 4 supplier of soft drinks globally and second in Japan. In Europe, SBF sells carbonated drinks such as Orangina and Schweppes and fruit juice Oasis.

SBF is a core company of Suntory Group, which was founded in 1899. With global consolidated sales of over £12 billion in 2012, Suntory has a range of businesses encompassing alcoholic beverages, wellness, food, restaurants and flowers with approximately 200 companies and 29,000 employees across Japan, Europe, Asia Pacific and the Americas.

Muller Acquires Nom Dairy UK German dairy group Theo Muller has strengthened its position in the UK with the acquisition of Shropshire-based yogurt producer Nom Dairy UK for an undisclosed sum.

Operating from a state-of-theart yogurt production facility at Telford, Nom Dairy UK has a turnover of £43 million per annum. Of course, Muller is already the UK’s leading yogurt manufacturer, with major brands such as Muller Corner, Mullerlight and Muller Rice.

The move secures employment at the site and will provide a platform from which Muller can develop its presence in the UK private label yogurt market.

It builds on recent acquisitions in the UK by Muller UK & Ireland Group including the fresh milk processor Robert Wiseman Dairies and a chilled desserts facility at Minsterley, Shropshire. The group is also building Britain’s largest butter

manufacturing facility at Market Drayton, Shropshire, with first production expected in the autumn.

Part of NOM, the leading dairy products company in Austria, NOM Dairy UK was established in 2008, following investment of £60 million in a new dairy at Telford to produce own label yoghurt for the major British multiple retailers.

Heiner Kamps, chief executive of Theo Muller, says: “This acquisition underlines our commitment to growing our presence in the UK, which along with Germany and the US, is a

Heiner Kamps, chief executive of Theo Muller.

core market for Muller. We believe that there are strong opportunities in the UK private label yogurt sector and the Telford facility will help us to realise our plans to provide customers with great products in this important market.”

Ronald Kers, chief executive of Muller UK & Ireland Group, remarks: “We want to be the biggest and best dairy company in the UK and by acquiring this excellent facility we can increase the range of private label yogurt products made with milk from British farms, which in turn can reduce the UK’s dependence on imported dairy products. We

Ronald Kers, chief executive of Muller UK & Ireland Group.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

are ambitious for the future and we very much look forward to working with the team at Telford and our customers to realise the significant potential of this facility.”

Bernard Matthews Attracts New Investor Rutland Partners, the specialist turnaround and restructuring investor, has completed an investment in Bernard Matthews Holdings alongside the existing family interests to strengthen the business and support its future growth and development. Based in East Anglia, Bernard Matthews is the market leading producer of turkey in the UK operating across 50 farms and four processing facilities. The business breeds, raises and processes about 7 million birds per annum in the UK and supplies the market with 1.5 million fresh birds over Christmas.

Bernard Matthews operates a fully vertically integrated business model owning the entire supply chain from ‘farm to fork’ for both primary markets (eg. fresh turkey) and secondary markets (eg. cooked meats). In addition, Bernard Matthews has branded value added meat processing businesses in Germany and Hungary.

Despite enjoying an important market position in the UK poultry industry with a strong brand, Bernard Matthews has faced some trading challenges in recent years. David Joll, its former chief executive until 2006, who has recently been brought back into the business as executive chairman will continue in the role following Rutland’s investment.

David Joll comments: “It has been well documented that we have been looking into a range of funding options to help develop the business, but we wanted a partner who understood the company and were committed to helping us grow.

Rutland fit this model perfectly, as from the outset they have seen real potential in the business. With Rutland’s investment, restructuring skills and support the business will be in a 3

M E E R R G G E E R R S S M

strong position to invest in its farming and operational assets.

In addition, we will continue to focus on business improvement combined with product innovation and investment in our brand.”

Rutland Partners is reported to have invested over £20 million for a significant stake in the food group.

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

longstanding heritage.

Altia’s partner brands represent both local and international brands from all over the world, including Codorníu, DrostdyHof, Hardy’s, Jack Daniel’s, Bowmore, Nederburg, Raven swood and Robert Mondavi.

Altia has annual net sales of about Eur500 million and the total workforce is approximately 1,100.

Green Light For Royal Unibrew’s Acquisition of Hartwall Royal Unibrew’s acquisition of the Finnish brewery Oy Hartwall has been approved by the Estonian competition

Altia Completes Cognac Deal Finnish group Altia has completed the acquisition of Larsen Cognac from Remy Cointreau for an undisclosed price. .Founded in 1926 by Jean Larsen, Larsen is one of the major producers of AOC Cognac with a unique range of premium products. Cognac Larsen is known as the ‘Cognac of the Vikings’. Its core range of products includes a VS, VSOP and XO. This strong, widely recognized cognac brand with heritage reinforces Altia’s position in the Nordic alcoholic beverage business, complements Altia’s brand portfolio and enhances the group’s offering in the cognac category. Cognac Larsen has a significant market share in cognac category in the Nordic countries and the main destination of exports is Asia. 24 employees and production facilities in Cognac have been transferred to Altia.

Altia is the leading wine and spirits company in the Nordic and Baltic countries. Altia’s own brands such as Renault, 1Enkelt, Blossa, Chill Out, Grönstedts, Koskenkorva, OP Anderson and Xanté have a strong market position and a

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Kevin Havelock, Unilever president for refreshment says: “T2 is a fast growing premium tea business with great potential. Unilever is the biggest tea company in the world with brands like Lipton – one of Unilever’s ‘billion-plus’ brands – available in more than 70 countries. This will allow us to bring the benefits of scale and access to new markets to the T2 business and for both businesses to share tea category expertise. This deal will also bring a premium tea business to complement our portfolio that we can leverage in a similar way to other recent Unilever acquisitions.”

FrieslandCampina Sells German Regional Brands to ODW Frischprodukte

authorities. The acquisition is in line with Royal Unibrew’s strategy of being a focused and strong regional brewery player with leading positions in the markets for beer, malt and soft drinks, including soda water, water and juices, ciders, and long-drinks (RTD) in the Nordic and Baltic countries.

The acquisition allows Royal Unibrew to expand its position as the second-largest brewery group in the Nordic and Baltic countries and to broaden and strengthen its earnings base, as well as to expand its portfolio of own brands. The transaction is based on an assessed enterprise value of DKr3.3 billion, and the acquisition price is DKr2.8 billion (Eur375 million).

Unilever to Acquire Australian Tea Business Unilever is acquiring T2, a premium Australian tea business, for an undisclosed amount. T2 generated sales approaching A$57 million (Eur40 million) for the 12month period ending June 30 2013. With 40 stores, T2 is Australia’s leading tea retailer, offering the country’s largest range of premium, tea and tea wares from all around the globe.

FrieslandCampina Germany has sold its two regional brands Mark Brandenburg (milk, butter, yoghurt, quark and cheese) and Milchreiter (yoghurt) to ODW Frisch produkte. The transaction will allow Friesland Campina Germany to focus on its main brands, which include Landliebe, Optiwell and Tuffi.

ODW Frischprodukte had already acquired the Elsterwerda plant, where the Mark Brandenburg and

Milchreiter brands are manufactured, from Friesland Campina in 2010. The company's product range is marketed primarily in Brandenburg and in Berlin. Friesland Campina and ODW Frisch produkte will continue their already close co-operation in matters of production. Both sides have agreed not to disclose the price or other details of this transaction. The sale has been approved by the Federal Cartel Office.

Errigal Seafood Consolidates Leadership Position Errigal Seafood has strength-

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

ened its position as Ireland’s largest seafood processor with the acquisition of Kilmore Fish Co, also known as CKI, based in Kilmore Quay, County Wexford. The two companies have collaborated closely in recent years, and the new merged entity will combine over 80 years’ experience in seafood processing and export operations.

The newly-combined enterprise employs over 200 employees at its two sites in Donegal and Wexford with a combined turnover in excess of Eur34 million. In Wexford, the new company will trade as Kilmore Seafood. Kilmore and Errigal both specialise in fresh and frozen shellfish for the European, US and Asian markets, and have complementary product portfolios Kilmore Seafood and Errigal Seafood intend to strengthen and develop wellestablished relationships with current suppliers and customers. The combination will allow the merged operation to offer a broader product range to its customers, improved production and logistical capabilities, and world-class quality assurance systems, all considered critical in international fresh food markets.

Currently both companies supply fresh and frozen seafood products across Europe, the United States and Korea, and future plans include expansion into other Far Eastern markets.

The new combination of companies will involve some streamlining of activities, but will not involve any job losses, and Kilmore’s existing management team, led by Mairead Roche, will continue to grow and develop the company’s business as part of the new group structure.

COVER STORY

Refresco Gerber – Creating a €2.3 Billion Business The agreed merger between Refresco and Gerber Emig will create a leading pan-European bottler of soft drinks and fruit juices with production sites in nine countries, pro forma annual revenues of €2.3 billion and EBITDA of almost €160 million.

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he merger is highly complementary for both businesses. Refresco is the larger of the two companies. This is reflected in the ownership of the merged entity with Refresco shareholders taking 70% of the equity and Gerber Emig shareholders a 30% stake.

Founded in 2000, Refresco is a leading European bottler of soft drinks and fruit juices for retailers and branded players with production in the Benelux, France, Germany, Iberia, Italy, the UK, Poland, and Finland.

The company achieved a turnover of Eur1.54 billion and adjusted EBITDA of Eur115.5 million in 2012 Hans Roelofs, chief executive of Refresco, from volume sales of 4.9 bil- who will become chief executive of lion litres. Refresco offers an Refresco Gerber. extensive range of product and packaging combinations from 100% fruit juices to carbonated soft drinks and mineral waters in carton, PET, Aseptic PET, cans, pouches, and glass. It is headquartered in Rotterdam, the Netherlands and employs about 3,000 people.

Headquartered at Bridgwater in the UK, Gerber Emig is a significant European bottling company specialising in fruit juice and juice drinks. Tracing its history back to 1919, the company’s private label production is complemented by contract manufacturing for branded players. The business had volume sales of 1.5 billion litres, revenue of Eur801 million and EBITDA of Eur43.8 million in 2012. Gerber Emig operates five well invested production plants across the UK, France, Germany and Poland. It employs about 1,700 staff.

Refresco and Gerber Emig are continuing to operate independently until completion of the merger, when. integration into one corporate structure will commence.

Completion of the proposed merger between Refresco and Gerber Emig, which is subject to the approval of competition authorities, is expected take place before the end of the third quarter of 2013, according to Hans Roelofs, chief executive of Refresco, who will lead the combined business – Refresco Gerber.

“Gerber Emig and Refresco are highly regarded industry players with complementary know–how, geography, products and technology,” says Andrew Biles, group chief executive of Gerber Emig. “The

new group will be a logical combination for Gerber Emig and all stakeholders providing greater scale and an enhanced capability for industry innovation. I am looking forward to making the most of the opportunities that come with being part of a broader European group.”

Pan-European Business The merger will create a leading pan-European bottler of soft drinks and fruit juices to serve retail and branded customers. Refresco Gerber will benefit from a significant presence in all the major soft drinks product categories in Europe, broader product and packaging mix and enhanced supply chain capabilities.

Fruit juices account for 94% of Gerber Emig’s sales with functional still drinks and ready to drink teas making up the balance. Refresco has a broader product portfolio – fruit juices and carbonated soft drinks generate 32% and 26% of sales respectively with functional still drinks (12%), ready to drink teas (11%), water (9%) and energy drinks and others (95) also featuring.

Refresco Gerber will have a well balanced product portfolio. Fruit juices at 56% of sales will be the largest element of the combined business, followed by carbonated soft drinks (16%). The rest of the product mix will consist of functional still drinks (8%), ready to drink teas (8%), water (5%) and energy drinks (5%).

Refresco Gerber will be able to provide customers with a comprehensive product and packaging portfolio and total supply chain solutions. The combined business will also be well positioned to exploit the ongoing growth in the European private label market.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

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Geographic Footprint The combined group has a complementary geographic footprint. Refresco’s largest markets are Benelux (which generates 30% of sales), Germany (22%), France (16%), Iberia (12%) and Italy (10%). Gerber Emig’s sales are generated chiefly in two markets - the UK (50% of sales) and Germany (38%) with France (7%) and Poland (5%) contributing the remainder.

Refresco Gerber’s sales will be spread across eight major markets – Germany (29%), Benelux (19%), UK (19%), France (13%), Iberia (8%), Italy (6%), Poland (4%) and Finland (2%).

Hans Roelofs comments: “We are excited about combining forces with Gerber Emig. As one company, Refresco and Gerber Emig will be in a better position to follow its customers’ international growth and to address industry opportunities and challenges. Sharing best practice and innovation, the combined company will blend the best talents and capabilities of both businesses. It will offer customers more choice, greater proximity and increased market access.”

Upon completion of the merger Hans Roelofs will become chief executive of the new group and Andrew Biles will join the senior management based at the head office in Rotterdam.

As one company, Refresco Gerber will have greater opportunities to invest in innovation, to achieve growth and to optimise business performance. Innovation has been central to the development of both Refresco and Gerber Emig. For instance, between 8% and 10% of Refresco’s annual revenue is generated from new product and packaging innovations.

Buy and Build The merger with Gerber Emig is in line with Refresco’s strategy of maintaining and further growing its position as the preferred bot-

tler of soft drinks and fruit juices to retailers and A-brand customers across Europe. Refresco has developed by focusing on healthy organic growth and on highly selective acquisitions, which contribute to improved customer service, economies of scale, and cost effectiveness.

Indeed, Refresco is convinced that consolidation is crucial to success in the highly competitive soft drinks and fruit juices industry.

“The combination of our two companies will lead to a leading pan-European bottler of soft drinks and fruit juices for retailers and branded players in Europe. I am excited about creating a platform which will optimize our position and enhance our scale, product offerings, customer services and innovation capabilities,” remarks Hans Roelofs.

The Netherlands-based soft drinks and fruit juices manufacturer has a proven track record in pursuing a ‘buy and build’ strategy, to broaden its European presence, expand its product range, and add bottling capacity. Recent acquisitions of this nature include Spumador, the largest Italian producer of carbonated soft drinks and water, and Taja, a Polish private label manufacturer of carbonated soft drinks and water.

Refresco Gerber will face a challenging business environment until the recessionary conditions in Europe abate. However, the prospects for the European private label soft drinks industry generally are encouraging and the combined business is expected to benefit from the fundamental growth drivers of private label. J

I SOFT DRINKS

Mixed Flavours Preferred as Producers Cut Costs ccording to research by Canadean, almost all new soft drinks A products launched in 2012 were mixes of at least two flavours. Mixed flavours provide an opportunity for producers to lower costs by using less expensive flavours as part of the mix, while keeping products interesting and new for consumers. This is especially true in the main juice-containing categories (juice, nectars and still drinks), where the important single flavours, orange and apple, saw large drops in 2012, while ‘mixed fruit’ flavour saw growth in volume.

Looking at the top ten chart of fastest growing juice, nectars and still drinks (JNSD) flavours in Europe in 2012, only one was a single flavour.

Varying the flavour mix can be an inexpensive way of attracting new consumers, even in countries where consumers have rather conservative tastes. This particularly applies to the juice and still drinks categories, perhaps because mixes of fruits are not seen as ‘different’ enough to deter even the most conservative consumer.

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In addition to attracting new consumers, mixed flavours are more economical to produce than single variants. The specific mix of flavours is not always considered important by consumers, so producers have room to formulate mixes in accordance with the price of raw materials.

According to Canadean analysts, consumers in Portugal do not place importance on the particular flavour mix and are “moving toward mixed flavour products and away from single flavours”. To replace traditional orange juice, some producers have developed elaborate citrus mixes, for example in France, where flavour mixes are seen as more sophisticated and Andros’s mixed orange flavour juices performed well.

Using mixed flavours also offers the opportunity to incorporate superfruit elements such as aronia and various berries. Many such mixes saw growth in 2012, and this is expected to persist into 2013 as the health and wellness trend continues. Apple is a popular choice for mixing with superfruits due to its lower price, such as apple/aronia and apple/berries. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

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FRUIT JUICE

Innovation Key For Squeezed European Fruit Juice Industry Consumption of fruit juice and nectars in the EU continues to fall with volume sales slipping by 3.3% in 2012 to 10.4 billion litres following a 2.1% drop in 2011. hile the decline in consumption appears to be accelerating, the market fundamentals for a return to long-term growth remain promising and opportunities for adding value are being exploited by fruit juice and nectars producers. Per capita consumption in the EU at 20.6 litres is still below the 27.2 litres in North America, suggesting scope for further expansion.

Within the European region, there is a marked divergence in per capita consumption, which stands at 23.1 litres in Western Europe against 13.2 litres in Eastern Europe.

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Accounting for 25% of total fruit juice and nectar consumption in the EU 27, Germany is by far the largest market, ahead of France at 16%, followed by the UK, Spain and Italy. The top five markets generate just over 70% of volume sales in the EU. Orange remains the most popular juice type and carton packaging still dominates the European market.

Squeezed European fruit juice and nectars producers are being squeezed between escalating input costs, such as high energy and commodity prices, and an intensely competitive retail market, with sales pressurised by weak consumer confidence.

“The average EU consumer who is our main customer continues to have a tough time. The economic woes of Europe are well chronicled and recovery seems rather remote despite political rhetoric,” says Andrew Biles, president of AIJN (European Fruit Juice Association) and chief executive of Gerber Emig Group. “Consumption of juice is challenged and our industry needs to turn this trend around.”

AIJN is the representative association of the EU fruit juice industry, defending and promoting the interests of both processors and packers. Founded in 1958, the AIJN is headquartered in the heart of the Brussels European quarter.

While overall consumption of fruit juice and nectars is presently in decline, the NFC and chilled juice sectors are growing.

Indeed, some brands are pursuing opportunities in juice and also in single serve products for the ‘on the go’ market.

Abundance of Opportunities Andrew Biles adds: “Nature and ingenuity continue to provide an abundance of opportunities for juice. The future of our industry lies not in the past but is in front of us – today and tomorrow. Over to us all to ensure our consumer makes good informed choices about the products we offer.”

The market fundamentals for fruit juice and nectars remain sound, with innovation by producers helping to maintain consumer interest in the category. Fruit juice and nectars, which are perceived by consumers as ‘natural’ products with functional benefits, are ideally suited to the growing concern about health and wellness in both developed and emerging markets.

New Product Development According to Canadean, juice and nectars

Andrew Biles, president of AIJN (European Fruit Juice Association) and chief executive of Gerber Emig Group.

offer significant potential for new product development focusing on the healthy, natural ingredients and vitamin content, with the opportunity to cover a range of price brackets.

The ongoing consumer interest in healthy lifestyles, coupled with an ageing population in many countries, provide good opportunities for increasing market segmentation. Premium can be added to a product by emphasising its ‘health’ and ‘naturalness’, nutritional value/benefit or by highlighting its organic status or regional heritage. Furthermore, fruit juice and nectars continue to offer significant potential for value growth through the channelling of new investment behind value-added segments such as enhanced juices offering functional benefits and targeted at specific consumer groups, says Canadean.

Single flavoured orange juice remains the number one flavour in all regions of the world with the exception of East Europe, accounting for one-third of global juice and nectars consumption; but this popularity is waning. Increasing sophistication in consumer taste, travel, tourism and access to

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

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try remains challenging with harvest yields subject to unpredictable weather and jumps in commodity prices squeezing producers’ profit margins, innovation and communication remain crucial to raising consumer awareness of the benefits of fruit juice consumption. According to Canadean, lifestyle

changes and consumer nutritional requirements in countries with an aging population base will continue to offer increasing potential for new product development in juice blends, and pack formats, to respond to different consumption occasions and needs. J

Juice Summit 2013 – 1 & 2 October 2013 – Brussels

information is spawning a growing knowledge of exotic juices, superfruits and vegetables and their potential benefits, says Canadean. Producers are responding by experimenting with new combinations of juice and vegetables and ‘value-added’ targeted functional offerings.

According to Canadean, innovation focused on provenance can also appeal to the sustainability and carbon footprint concerns of consumers, whilst marketing of transparency of origin/purity and production process offers opportunities for premiumisation. Adding strap lines to packaging such as ‘made from Algarve oranges’ can enhance local appeal and positioning.

Canadean points out that the locally sourced aspect with a homely traditional/’back to nature’ feel is also being targeted by producers, such as in EckesGranini’s Hohes C Hemische Fruchte range with combinations of fruits that were once widely grown at home.

Product innovation focusing on developing flavour mixes is expected to continue, allowing producers the opportunity for managing production costs, and also to highlight the functional benefits flavour mixes can offer consumers.

AIJN Activities In addition to providing ongoing daily support to members, AIJN is in the process of establishing a Fruit Juice Corporate Social Responsibility Platform with the EU Commission. “The Platform’s main goal will be to disseminate good practice amongst all juice stakeholders and give greater visibility to CSR activities of enterprises thus increasing our responsibility and sustainability image of the sector,” remarks Andrew Biles. The AIJN is also continuing to lobby for the fair reduction of import duties and has been successful in this regard with tropical concentrates and purees, saving industry significant amounts of money.

“The time of abundant cheap raw materials is over so this work is ever more important.

In addition we are responding to many initiatives on proposed food legislation relevant to our members,” says the AIJN president.

Outlook While the outlook for the fruit juice indus-

Juice Summit 2013 is a one and a half day conference organized by AIJN in conjunction with IFU (International Federation of Fruit Juice Producers), the SGF (the independent industrial self-control platform) and EQCS (the European Quality Control System). The Summit is being used by the leading fruit juice organisations to provide a genuine and dynamic forum for all industry players and their suppliers worldwide. The Juice Summit, organised by and for the industry, is non-profit driven and will allow all companies active in the sector to participate at affordable costs.

“It will assemble worldwide suppliers, bottlers and customers in the juice industry at both senior and junior levels. This is an important summit for the industry, by the industry and for the sole benefit of the industry,” says Andrew Biles, president of AIJN. The Summit will be followed by a seminar on Corporate Social Responsibility in the fruit juice industry. This seminar will mark the commencement of the Fruit Juice CSR Platform – a project aiming to establish an effective platform to facilitate a broad dialogue between companies and the relevant stakeholders, such as the raw material suppliers, on all issues pertaining to CSR in the European fruit juice industry. AIJN is part of the consortium responsible for this project, which is co-funded by the European Commission.

The Juice Summit will be the place where the key industry players and their worldwide suppliers meet, exchange ideas, discuss business opportunities and strengthen ties.

Agenda The agenda will address hot and emerging issues and provide forward looking and stimulating views on the future of the juice industry.

Sessions/Topics at the Juice Summit include: • Market outlook for the main commodities; • The market for juices, nectars and juice drinks in Europe; • Impact of the EU CAP reform on the fruit processing and fruit juice industry; • Main challenges for the fruit juice bottlers in Europe and the US; • What are the best strategies to grow the Juice & Nectar consumption?

• The Fruit Juice Corporate Social Responsibility Platform. Addressing the European Commission’s objectives to integrate social, environmental, ethical and human rights concerns into the juice business operations.

Top level speakers or panelists for the Juice Summit include: • Andrew Biles, CEO Gerber Emig Group, UK; • Stephan Büttner, Chairman of the Management Board, Austria Juice, Germany; • Kees Cools, Executive Director Business Unit Fruits & Vegetables, Doehler Group, Germany; • Peter Hahn, Global Head of Juice for Louis Dreyfus Citrus, Brazil; • Brendan Harris, Chairman and CEO Froosh, Sweden; • Georg Häusler, Head of Cabinet of EU Agricultural Commissioner Ciolos, Belgium; • Thomas Hinderer, Chairman of the Management Board, Eckes-Granini Group, Germany; • Iain McLaughlin, General Manager of the Global Juice Center, Coca Cola Company, US; • Emily Neill, CEO Canadean, UK. Key industry players in attendance include: GerberEmig, Coca-Cola, Riha Wesergold Getranke, Conserve Italia, Rauch Fruchtsafte, Rynkeby, Citrosuco, Cutrale, Juver, Florida’s Natural, Doehler, Parmalat-Santal, Tropicana, Targid, FrieslandCampina, Eckes-Granini, Refresco, Louis Dreyfus, Maspex and many more.

Summit Expo will be opened at 12.00 on 1 October 2013 and will last until 18.00 on 3 October. For further information visit the event website - www.juicesummit.org/2013.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

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I PACKAGING SOLUTIONS

Ecolean – A Lighter and Smarter Approach to Packaging colean specialises in developing and manE ufacturing modern lightweight packaging which meets consumer demand for convenience and concern for the environment.

The company supplies complete packaging systems for the dairy and liquid food industries.

Ecolean’s total packaging solutions are helping manufacturers to comply with increasingly stringent quality, safety and environmental performance standards.

Headquartered in Sweden, Ecolean was founded in 1996 and has developed into a global business with sales in more than 30 countries.

The company’s packaging systems are suitable for filling pasteurised products in different package sizes. Ecolean also offers aseptic packages that preserve the quality of the product’s content. Ecolean supplies a range of packaging sizes to meet customers’ various requirements - from portion packs (200-250 ml) to bigger sizes (500ml, 750ml and 1000 ml).

Complete Packaging Solutions Ecolean provides complete packaging solutions incorporating packaging material, packaging, and filling machines. Indeed, the Ecolean ‘package’ has been developed with the whole package life cycle in mind.

“It is designed to be convenient for the producer, the retailer and the consumer,” points out Louise Hobroh, Marketing Manager at Ecolean. “We support our customers all the way from production to the store shelves with technical and marketing expertise.”

Ecolean has been at the forefront of many of the developments in lightweight packaging technology in recent times, especially in meeting the growing interest in flexible and aseptic packaging, which is continuing to replace rigid structures due to cost and environmental factors. Although PET bottles have a large share of the fruit juice and soft drinks market, Ecolean has been successful in developing a transparent flexible package as an alternative to PET. Unique Shape The Ecolean package is characterised by a unique shape that stands out on the shelf, helping brand owners to differentiate their 14

products in store. “It offers consumer convenience and environmental concern in one. It is easy to open and has a convenient air handle,” explains Louise Hobroh. “When it is emptied, it becomes flat as an envelope and takes less space in the waste bin. Weighing nearly 50% less than conventional juice and dairy cartons and bottles have a positive effect throughout the whole package life cycle.”

Leading brands owners, including Orangina Schweppes France, Engro Foods in Pakistan and Bright Dairy in China, are successfully selling dairy or juice products in Ecolean packaging to retailers and consumers. “Orangina Schweppes wanted an aseptic flexible package for their market and found that Ecolean suited them perfectly.

Engro Foods wanted a unique aseptic package to distinguish their products from competitors, and Bright Dairy a solution with high food safety and quality service which they found in Ecolean.”

She elaborates: “With our unique packaging solutions combining convenience and environmental concern, brand owners have the possibility to stand out from competitors.”

Latest Innovations The Swedish packaging specialist has a strong track record of new product development, enabling it to keep pace with changing consumer and customer requirements.

Ecolean is currently launching three new innovations - Ecolean Air Aseptic Clear, SnapQuick and Ecolean Air Aseptic 750 ml.

Ecolean Air Aseptic Clear Ecolean is expanding its portfolio with the addition of Ecolean Air Aseptic Clear, a range of transparent aseptic packages. The packages have the same benefits as Ecolean’s other packages and are suitable for all kinds of non-carbonated soft-drinks such as lemonade, ice tea etc.

“With a big disposable printing area the producer decides how much to show of the product and how much to hide behind the printing,” says Andreas Jeppsson, Sales Director of Ecolean. “Being one of few suppliers on the market offering transparent aseptic packages makes Ecolean an excellent choice to be unique on the store shelves.”

Ecolean packages are easy to grip and pour from.

SnapQuick A new feature for Ecolean’s family size packages (500, 750, 1000 ml) is the convenient reclosing device SnapQuick. “There is a growing demand on convenience of packages and Ecolean constantly develops innovations to meet these requests,” he remarks.

Ecolean Air Aseptic 750 ml Ecolean’s newly developed Air Aseptic 750 ml package is suitable for smaller households and helps to avoid unnecessary food waste.

“The package is not too big and not too small. It has a great face display perfect for high quality print,” adds Andreas Jeppsson.

“The package is filled in the same filling machines as our 500 and 1000 ml packages which opens up many marketing opportunities for our customers.”

Juice Summit 2013 Ecolean will attend and sponsor this year’s Juice Summit in Brussels between 1-3 October 2013. The event is organised by AIJN in conjunction with SGF International, EQCS and IFU. Ecolean’s sales team will be present to discuss opportunities provided by the company’s latest innovations in lightweight packaging. For further information, visit www.ecolean .com. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

I PROCESSING SOLUTIONS

Your Success is Bucher Unipektin’s Priority leading position. The company operates with high motivation and flexibility to serve its customers. Based on technological and economic needs as well as on new market-trends, Bucher Unipektin develops innovative solutions and products for its markets. Thereby ecological aspects are respected.

Bucher Unipektin’s business unit is operating globally. Own sales and service organisations in Switzerland, Austria, Poland, Russia, New Zealand and China provide competent and quick assistance for clients.

Bucher Unipektin’s quality commitment strives for uninterrupted availability of its machines, long service-life and minimized maintenance requirements. The certification of Bucher Unipektin’s

Press station for fruits and berries with hydraulic HPX presses.

ucher Unipektin’s Beverage TechnolB ogy business unit is your competent partner and supplier of machinery and equipment for processing fruit and vegetables into juices or juice concentrates, for concentrating milk or producing milk powder and for vacuum drying of malt, coffee and other natural extracts.

High quality products and services have positioned Bucher Unipektin as the world's market leader in fruit juice processing equipment. Bucher's fruit reception lines are designed to satisfy the most rigorous standards of hygiene in cleaning the raw material. Then highly sophisticated mills ensure optimised mash preparation.

With its drainage system, the Bucher hydraulic press with a self-optimising control system gives a maximum juice yield with very low sediment content. Equipped with organic, ceramic or metal membranes, Bucher's cross-flow membrane filtration systems produce clear and stable juices, while adsorption and ion exchange systems improve the long-term stability of the products. The multistage vacuum evaporators come with integrated distilla-

tion columns for aroma recovery.

This line of products is complemented by vacuum and freeze drying systems that are designed in particular for producing malt beverages, coffee, instant soups and natural extracts and allow products to be dried gently to retain their flavour.

Bucher Unipektin is also a well-recognised supplier for the dairy industry with evaporators for the production of milk and whey protein powder.

First Class Products and Services

First class products and services are fundamental to Bucher Unipektin’s market

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

processes according ISO 9001:2000 supports the attainability of these targets.

For further information contact Bucher Unipektin AG, Murzlenstrasse 80, CH8166 Niederweningen. Tel +41 44 857 23 00, Fax +41 44 857 23 41 or visit www.bucherunipektin.com. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

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If you missed us at the Total Exhibition in June, why not ask for our free on-site evaluation/presentation

I

CONVENIENCE FOODS

2 Sisters Food Group Introduces New Senior Management Structure To facilitate the additional scale and to meet the new challenges following three major acquisitions in the past two years, 2 Sisters Food Group has changed its leadership structure. he UK convenience food and poultry processor has crested two new roles - chief operating officer, Protein and chief operating officer, Chilled, Ambient and Frozen - both reporting directly to chief executive Ranjit Singh.

Chris Walker, group procurement & supply chain director, has been appointed to the role of chief operating offices, Chilled, Ambient and Frozen. 2 Sisters is currently recruiting to fill the position of chief operating officer, Protein.

T

Development Headquartered in Birmingham, 2 Sisters was established in 1993 by Ranjit Singh, and is one of the largest privately owned food groups in the UK and Europe. The enterprising business has evolved from a small scale frozen retail cutting operation into a world class food group, serving the retail, food service and manufacturing sectors.

Having diversified from its core business and expanded internationally, 2 Sisters now enjoys strong market positions in the poultry, red meat, chilled, bakery and frozen food categories. It focuses on delivering the highest quality product to its customers at the lowest cost. 2 Sisters operates 47 sites in the UK and Ireland, six in Holland and one in Poland. The group’s

Ranjit Singh, chief executive of 2 Sisters Food Group.

annual sales are now over £2.3 billion following the acquisitions of Northern Foods and Brookes Avana in 2011.

UK customers include Aldi, Asda, British Airways, Costa, Co-op, Harrods, KFC, Lidl, Marks & Spencer, Morrisons, Sainsburys, Tesco and Waitrose. Although predominantly a private label manufacturer, 2 Sisters also produces a number of branded products including Fox’s biscuits, Goodfella’s pizza, Matthew Walker Christmas puddings and Green Isle vegetables.

Transformational Deals While Ranjit Singh had developed 2 Sisters into a formidable poultry operation, the business has increased dramatically in both scale and diversity over the past two years with the completion of three major purchases - Northern Foods, Brooks Avana and VION’s UK poultry and red meat business.

In early 2011, 2 Sisters successfully completed the £342 million acquisition of Northern Foods, one of Britain’s largest convenience food processors. Northern Foods’ chilled business incorporated sandwiches, salads and ready meals operations, while its branded division combined the group’s frozen and bakery activities including Fox’s biscuits, Goodfella’s pizzas,

Donegal Catch fish, Green Isle vegetables, McDougalls and Holland’s pies, and Matthew Walker puddings. Northern Foods’ customer base encompassed all of the UK’s major food retailers and a number of discount retailers along with some food service operators.

The integration of Northern Foods into 2 Sisters created a £2 billion turnover powerhouse within the British convenience foods market. The acquisition was arguably the most significant in the UK food industry since Premier Foods’ purchase of RHM in early 2007. Indeed, 2 Sisters has now overtaken Premier Foods as the UK’s largest domestic food processor.

In late 2011, 2 Sisters purchased Premier Foods’ loss-making Brookes Avana business, comprising RF Brookes chilled foods and Avana Bakeries, for £30 million in

“As our business grows, I am keen to ensure we have a team that is responsive to our customers’ needs and is shaped in a way that is fit for the future.”

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

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Restructuring The restructuring of the senior management team with the creation of the two new posts to oversee the group’s Protein and Chilled, Ambient and Frozen operations will allow 2 Sisters to adapt to its additional scale and diversity. “As our business grows, I am keen to ensure we have a team that is responsive to our customers’ needs and is shaped in a way that is fit for the future,” comments Ranjit Singh.

“Therefore, I am making these changes to the senior leadership team because it strengthens the business and puts the customer even closer to the heart of everything we do. These new roles will help give greater focus to our operational delivery and bring additional expertise within our product categories.”

cash. Brookes Avana supplies chilled convenience products, including ready meals, accompaniments, chilled pizza and pies.

Avana is one of the UK’s leading suppliers of high quality bakery, cake and dessert products.

VION UK Deal The purchase of VION’s loss making UK red meat and poultry business for an undisclosed price marks 2 Sisters’ third major deal in the past two years. With annual sales of about £1 billion (60% in red meat and 40% in poultry) the VION acquisition adds capacity in poultry to 2 Sisters to accommodate future growth, while the entry into red meat allows it to serve more meal occasions. Although the VION business, which employs 5,500 people, is currently loss making, Ranjit Singh is confident of delivering improvement with a turnaround plan over the next two years.

The VION UK poultry sites are at Coupar Angus and Cambuslang in Scotland, at Llangefni and Sandycroft in Wales and at Basildon, Witham and Eye in England. The red meat sites acquired are McIntosh Donald at Portlethen in Scotland, St Merryn Foods at Merthyr in Wales, along with the St Merryn operations at Victoria and Bodmin in England.

Ranjit Singh comments: “At 2 Sisters, we put the customer at the heart of everything we do and in line with our customers’ strategies, these businesses will help us to shorten the supply chain for consumers and meet growing demand for British sourced food. Our immediate focus will be to improve performance, as we have successfully done with our previous acquisitions.” However, while integration of VION will substantially increase 2 Sisters’ turnover it will also weaken profitability and margins during the turnaround period.

Chilled, Ambient and Frozen Business The group’s Chilled, Ambient and Frozen business is made up of four divisions covering the chilled, frozen, biscuits and bakery categories.

The Chilled division produces a range of products including puddings, ready meals, soups, sandwiches, wraps, salads, chilled pizzas, sushi and prepared chicken products. Brands include the Matthew Walker Christmas puddings as well as a whole range of retailer own label products. There are a number of sites in the division all over the UK serving customers including the major retailers.

The biscuits division produces the Fox’s branded range from its three sites for all major retailers. Retailer own label biscuit products are also produced in this division.

The frozen division produces frozen pizza, vegetables, pies and fish and includes the brands Goodfella’s, Holland’s Pies, McDougalls Pies, Green Isle and Donegal Catch in its portfolio. The division supplies to all major retailers with Holland’s Pies also selling product via fish and chip shops and sports stadiums.

2 Sisters’ bakery division was created following the acquisition of Brookes Avana.

Brookes Avana’s three locations at Leicester, Rogerstone Park and Avana in South Wales make ready meals, accompaniments, chilled pizza, pies, cake, desserts and puddings. From January 2013, 2

Sisters introduced a new bakery division, also including Gunstones Bakery and The Pizza Factory with the remainder of the Brookes Avana business falling under the chilled division.

As the newly appointed chief operating officer, Chilled, Ambient and Frozen, Chris Walker has full responsibility for 2 Sisters’ chilled, ready meals, biscuits, bakery and frozen trading divisions, while retaining his remit for procurement and supply chain. Chris Walker has had an outstanding 32-year career within retail, starting at Asda before working for almost 20 years at Morrisons. As senior trading director for Fresh Foods at Morrisons, he was instrumental in developing the retailer’s vertical integration manufacturing model. 2 Sisters’ divisional managing directors Colin Smith (biscuits); Eddie Power (frozen); Simon Wookey (chilled) and Veepul Patel (bakery) are now reporting directly to Chris Walker.

Protein Business The 2 Sisters Protein operations encompass its UK and international poultry operations along with its newly acquired VION poultry and red meat interests.

The UK poultry operation consists of primary sites where chickens are delivered from nearby farms and cutting sites where the portioning, deboning and filleting of

“I am making these changes to the senior leadership team because it strengthens the business and puts the customer even closer to the heart of everything we do.

These new roles will help give greater focus to our operational delivery and bring additional expertise within our product categories.”

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

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sites) and McIntosh Donald in Aberdeenshire.

2 Sisters is currently recruiting for a chief operating office, Protein – a role which encompasses all poultry, added value poultry and red meat operations in the UK and Holland. Divisional managing directors Aart Voets (European poultry), Steve Ellis (UK & 2 Sisters Poultry), Jose Peralta (red meat) and Olivier Goudineau (added value) will eventually report to the chief operating officer, Protein. chicken takes place. The UK poultry division supplies to a range of retailers as well as food service businesses and food manufacturers. Though the majority of output is private label products, there are some brands including Buxted and Devonshire Red. The UK poultry business has been significantly expanded by the VION acquisition and 2 Sisters is currently integrating the additional processing sites.

2 Sisters’ European poultry interests comprise six sites in Holland and one in Poland, which produces fresh and frozen poultry and supply to industry, manufacturers and retailers.

The VION acquisition has also marked 2 Sisters’ entry into the red meat processing. 2 Sisters red meat business comprises four sites including St Merryn Foods (3

20

Outlook Looking ahead, Ranjit Singh expects trading conditions to remain difficult as inflation continues to squeeze consumer spending power. The VION acquisition will dilute margin for some time and consumers’ reaction to horsemeat in beef related ready meals will also impact 2 Sisters’ performance in its 2013 financial year. 2 Sisters reports its full year results at the end of October.

“Despite the tough environment, we believe we are taking the right actions to

improve margin by addressing product and customer mix and by implementing our turnaround plan for the VION acquisition following unconditional clearance by the OFT,” says Ranjit Singh. “By putting our customers at the heart of everything we do and driving efficiency, we will continue to make progress.” J

“By putting our customers at the heart of everything we do and driving efficiency, we will continue to make progress.”

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

I LEAN MANUFACTURING

How to Systemise Sustained Beneficial Change Without Causing Panic

By Roy Green, Managing Director of Harford Control nowing what systems you need to K install is an important step, but knowing how to implement them with maximum buy-in from your team is essential in order to deliver and sustain the anticipated benefits.

It is a well established belief that manufacturing operations automate to reduce the head count and this belief doubtless has its origins as far back as the industrial revolution.

Though some automation does undoubtedly speed up production processes, and thereby increase efficiency whilst reducing unit production costs, other reasons for the implementation of automated systems will include the elimination, or at least minimisation, of human error, avoidance of lapses in concentration and errors of judgement.

A well implemented system should ensure that the business runs to optimal efficiency and effectiveness 24/7, whatever the manufacturing complexity. It’s the effectiveness of this system that ensures nothing is left to chance, overlooked, or forgotten. It’s this same system that guarantees quality consistency, total compliance, conformance to plan and optimal efficiency in operations such that the only returns are happy customers wanting more.

Such manufacturing optimisation, operational discipline, visualisation and cost effectiveness can never be achieved by the more typical information fragmentation and departmental informational silos where everyone has a bit of the picture (their bit)

Factory Screen – Real Time.

but nobody has the full picture and, even where they do, it’s paper based or in some other disconnected database where it’s impossible to see the priorities which, if visible and acted upon, could have the most dramatic impact upon performance improvement (more for less).

Neither will even the best, real time, integrated and paperless system on its own be sufficient to drive sustained performance improvement.

Experience has taught us that integrated systems ideology will only deliver/exceed the anticipated benefits if it is solidly backed by effective support, training and coaching. Some might refer to this as consultancy and with the content, depth and breadth of our support programme that’s probably true, but it’s all part of our standard methodology for turning systems into solutions.

What we do know is that for systems projects to succeed and deliver healthy ROIs, they have to be sophisticated enough to cover all manufacturing risks and variables, whilst remaining so simple and intuitive in use that anyone can get the best from them with a little training, coaching and support.

Driving out the fear that so frequently sabotages systems implementation has to begin with the initial discussions and effective communication of the reasons for change and how continuous improvement protects rather than destroys jobs.

Interdepartmental barriers need to be broken down so that senior management,

middle management and factory floor operational personnel all see the same objective information and can take improvement actions with confidence.

When we first installed our systems within Dairy Crest it quickly became clear that the expected improvements could only realistically be achieved and sustained if everyone from the top down was involved. This is why, before we installed any systems we had, at each site, our break-out and vision meetings with each management team, such that everyone knew and understood the objectives and expectations. We jointly trained other teams to obtain better cross functional buy-in. The results during the past three years have been dramatic, with compliance issues eliminated, greater quality consistency, efficiencies improved by more than 10% and significant reductions in materials and labour wastage, whilst simultaneously eliminating factory floor paperwork.

At one site alone the savings have been in excess of £2 million per annum.

The foregoing is really little more than a snapshot of Lean/Six Sigma in action.

Through our knowledge transfer and support, certain tools such as SPC and Process Capability, were used to reduce variation and improve consistency (Six Sigma) whilst other tools, such as OEE and SIC were used to become more Lean or, put another way, the pursuit of an optimal combination of effectiveness and efficiency. J

Information Prioritisation.

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I LEAN MANUFACTURING

How Idhammar’s OEE System and CMMS Benefits the Food and Drink Industry here is an increasing pressure on compaT nies within the food and drink industry to produce as much as possible with current production facilities, whilst keeping costs as low as possible.

In recent years, many smaller food manufacturers have either gone bust, or have become sufficiently weakened to then be susceptible to hostile takeovers from some of the industry’s giants. But efficient use of OEE and CMMS systems have already enabled many manufacturers to weather the storm, and indeed to strengthen their profits and their bottom lines. The result shows that OEE, CMMS and the food industry are an ideal pairing for optimising production cost reduction.

Idhammar is a well-established, international provider of manufacturing management systems. Idhammar systems enable fully automated, semi automated and manual capture of production and maintenance related data. Operators, team leaders and manager are able to understand exactly where losses and inefficiencies are occurring – something that isn’t possible using more traditional

spreadsheet and paper based systems.

Quality Assurance, Continuous Improvement and Manufacturing Excellence managers who are responsible for identifying areas for improvement on manufacturing lines will benefit from comprehensive trend reports. Production managers and team leaders need access to data in real-time, enabling monitoring and prompt response to any downtime events. Real-time management systems are expected to capture production rates, line stoppage details, run time and down time.

Idhammar systems allow for greater transparency in the manufacturing process. In an industry where regulations are regularly tightened and legislation compliance is mandatory, Idhammar systems ensure that all maintenance activities, production losses and batch traceability records are saved: essential for external audits, internal management and year-on-year comparisons.

Idhammar Systems, one of the world’s leading suppliers of OEE and CMMS software, has successfully enabled significant cost reductions and improved ROI to be realised at many food industry manufacturers including: Premier Foods, Chivas Brothers, Unilever, Smurfit Kappa, Findus, InBev, Uniq and 2 Sisters Food Group.

Idhammar’s CMMS and OEE systems are proven to work: • A bottling plant increased output from 250 to 280 bottles per minute, a 12% increase resulting in a reduction from 113 hours to only 77 hours for the same output.

• One leading food manufacturer calculated that a 1% improvement in its OEE score equated to a saving of over £800K per annum. The company was forecasting a 13% improvement in the 15 months following implementation of the OEE software.

• Another leading food manufacturer was able to significantly reduce its power consumption, thereby reducing its gas bill by an enormous £456,000 per annum.

To find out more about arrange a free demo or to speak with one of our specialists, please visit our website: www.idhammarsystems.com or call on 0117 9209400. J

Speed Up Weighing Processes With Efficient Data Integration fficient data transfer between a PC and a E weighing terminal increases productivity and provides improved documentation traceability. Effective data integration software offers: • Easier regulatory compliance • Reduced input errors • Simplified data updating.

METTLER TOLEDO's application note Efficient Data Integration explains how you can synchronise data easily with the ICS9 food scale range.

By using the new DatabICS database software, existing article and transaction data can 22

be updated simply and quickly. Article data such as product names, target weights and tolerance values can be exchanged between a PC and individual scales at the touch of a button.

The ICS range offers fast and simple weighing, checkweighing and manual classifying in hygienically sensitive food environments. The scale line has been specifically develeoped for applications in the food industry.

Download the new application note on efficient data integration from www.mt.com /ind-ics-applications. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

I SLICING & DICING

New Log End Slicer From Grote rote Company G has introduced its newest slicing system – the Log End Slicer. Designed specifically to slice product log ends discarded from high speed deli meat log slicers, the Log End Slicer allows large volume slicing operations to recover additional usable slices from every meat log sliced.

This unique slicing system produces usable, high quality slices from log end transition pieces that would otherwise require rework, storage, or manual slicing. Grote’s Log End Slicer has the capacity to handle and process log ends from two or more high speed slicers, and can be programmed to slice through entire log ends or automatically eject the small caps.

An easily removable carry-out conveyor transports each slice away from the slicer for depositing into a customer-supplied bulk storage bin or tote. Designed to meet today’s stringent industry sanitation standards, the Log End Slicer is completely portable and guarding is hinged to allow easy access for cleaning, maintenance, and blade change.

An optional sanitation cart is also available to store all removable components during cleaning and storage periods. With more usable slices and no additional labor, the Log End Slicer offers today’s slicing processors a tremendous payback opportunity.

For further information contact Grote Company on Tel +44 1978 362243 or visit www.grotecompany.com. J

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I SLICING & DICING

In-house Blade Manufacturing by TREIF cutting machine can only be as effective A and precise as its blade. After all, the blade is the core of every cutting machine.

So that it is even better TREIF is now manufacturing the blades itself. In the area of blade manufacturing, TREIF’s qualified experts make sure that you will receive everything from a single source.

Thanks to the excellent harmonisation between blade and machine, ideal cutting conditions, consistent quality and process reliability are achieved. Stainless steel blades are produced at the highest manufacturing level combining precision and durability.

Benefits include: * Ideal cutting conditions, consistent quality * High degree of process reliability * Machine and blade from one source * Blade optimised for individual cutting requirements.

TREIF UK has recently moved to new premises in Ellesmere Port (Cheshire),

south of Liverpool. For further information contact: TREIF UK Ltd, Genesis House, Poole Hall Road, Poole Hall Industrial Estate, Ellesmere Port, Cheshire CH66 1ST. Tel +44 (0) 151 3506100, Fax: +44 (0) 151 3506101, E-Mail: arthur.pynenburg@treif.com. J

I FREEZING & CHILLING

British Firm Scoops Major Ice Cream Contract From Thailand’s Minor Dairy hailand’s premier ice cream firm is T investing in bespoke processing equipment from UK-based freezing and chilling system manufacturer Starfrost. Minor

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Dairy produces a variety of premium ice cream products for food service outlets across the Thai and international markets.

The company was looking for a high capacity freezing system to increase ice cream production at its processing facility near to Bangkok. Minor Dairy required an efficient in-line freezing system capable of achieving the long retention time needed to harden large containers of ice cream.

Starfrost’s UK engineering team has custom designed a Double Drum Helix Spiral freezer for Minor Dairy with a processing capacity of 1,500 kg/hr. The Helix Spiral features a 620mm wide stainless steel mesh product conveyor belt and two rotating drums, each with 10 spiraling tiers.

The bespoke Double Drum Helix Spiral system is designed to process ice cream in 6kg plastic and paper containers, at a rate of 25 cans every six minutes.

The product enters the freezer at a temperature of minus 4 degrees Celsius. Each container of ice cream is then hardened to minus 25 degrees Celsius.

The Minor Dairy system is the latest Starfrost freezer designed for a leading food manufacturer in Thailand. Starfrost has recently supplied freezing and chilling systems to Thai processors for tropical fruits and poultry. For further information visit www.starfrost.com. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

I

FOOD INGREDIENTS

Frankfurt Welcomes the World to Fi Europe & Ni 2013 ith the global food ingredients market W forecasted to grow by 2.7% in 2013, the industry is set to flourish and meet the

the ingredients and solutions you are looking for.

requirements of ever changing consumer trends. Given this development, as well as the population growth and the increasing affluence of the developing world, the food ingredients industry has become an intensely dynamic landscape. With the relentlessness of the Euro crisis, finding the best business partners in this industry has become more important than ever.

To help food and beverage producers find the most innovative ingredient providers, UBM Live is organising the 2013 edition of Fi Europe & Ni, taking place on the 19-21 November in Frankfurt, Germany. Being the industry staple for over 25 years, Fi Europe is the leading platform to source innovative ingredients, aid in market share growth and nurture business networks.

Leading Ingredients Manufacturers Extending over 3 halls at Messe Frankfurt, the exhibition will showcase the latest product developments and innovations from the world’s leading ingredients suppliers and solution providers, including Dohler, Roquette, Cargill, Brenntag, Tate & Lyle, ADM, FrieslandCampina, Barry Callebaut, DSM, Naturex, BASF, CNI, Fortitech, Rousselot, Beneo, and many more.

The event has an unrivalled line up of more than 1,300 world class exhibitors, all offering solutions for innovative food and beverage applications. Attracting a global audience of over 26,000 attendees from all aspects of the food industry, FiE only occurs every two years and is not to be missed.

Whether seeking to incrementally improve existing products and systems or radically innovate through new technologies and new business processes, Fi Europe is the place to be on the 19-21 November 2013!

Show Highlights Building on the success of last Fi Europe edition, this year the show promises even more innovation and learning opportunities. 73% MORE educational features will be available onsite, and with140 NEW exhibitors booked, you are sure to discover

Seminar Sessions The 25-minute seminar sessions are free to attend and will inform visitors about the latest innovations, developments and news.

Key exhibitors will present new product applications, cutting edge technology and practical insights. Alongside these, a variety of educational seminars will be provided by Mintel throughout the event.

Industry Insight Theatre As Fi Europe is aiming to educate and share innovative ideas alongside the traditional exhibition, this year a new feature has been added to the program - 30 minute content rich workshops and educational seminars will present the latest trends and innovations impacting the industry. These workshops are presented by leading associations, research companies and scholars such as NVC, Euromonitor, EAS, GOED, Canadean, Leatherhead, Food Valley and more. Reserve 1-to-1 sessions with a market intelligence analysts and vertical specialists from leading market research companies such as Euromonitor, Leatherhead and Mintel.

FiE Excellence Awards (New Categories) The FiE Excellence Awards 2013 celebrates the very best innovations, companies and people in the food ingredients community.

This is an opportunity for entrants to gain powerful media exposure and to differentiate themselves amongst competitors.

The awards cover a wide range of categories including: Bakery, Beverage, Confectionery, Dairy, Snacks/On-The-Go, Savoury/Meat, and Sustainability Initiative

of the year. The Awards ceremony will culminate in The Most Innovative Food Ingredient Award (decided from the winners of all the categories). All nominated products will be displayed onsite at FiE 2013 Awards Zone for all to see and learn more about.

New Product Zone The New Product Zone produced in association with Innova Market Insights, showcases 36+ new products highlighting recent launches from exhibitors at the forefront of innovation in the food and beverage industry. It is the perfect opportunity to give new products a proper introduction to the market for all to see. A popular area for visitors and press, this feature has become a trendsetting spot for the food industry.

Food ingredients Europe Conference The three-day conference, divided into 20 modules, addresses the most important issues faced by the food industry today.

Each module will feature a line-up of expert speakers from leading food and beverage manufacturers, ingredients suppliers and research organisations. 70+ speakers include senior managers from Mars, EFSA, Marlow Foods, Marks & Spencer, Cocofina and more.

No matter where you are located or in what sector you operate, Fi Europe & Ni is the must attend event for the food and beverage industry. It is a unique platform to meet existing and potential suppliers, learn about the latest trends and developments, acquire priceless industry knowledge and explore endless networking opportunities.

Please visit the Fi Europe & Ni website www.fi-europe.eu for more information. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

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Clean Label Replacement Key to Cutting Dairy Costs ndustry experts predict that dairy prices Iweather, will continue to increase due to global supply issues in the feed markets and strong demand from developing countries, but leading GB-owned starch specialist Ulrick & Short claims that replacement clean label, non-GM ingredients are a simple option to offset the costs.

Consumers are demanding shorter labels, and dessert producers in particular require ingredients to actively improve functionality, shelf-life and appearance. As the number of consumers looking for a simple, easily-understood ingredient statement grows, the open declaration is becoming increasingly important for food producers.

Functionality is also very important as products must not only look attractive, but taste good and provide increased shelf-life.

Consumers are constantly looking for indulgence and creamy textures but without the associated calories, the most com-

mon question being: is there a lighter option that will taste as good? Replacing quantities of milk protein and fats with a clean label starch equivalent ensures the same look, mouthfeel and texture whilst reducing fat content and costs.

In its most recent development project, Ulrick & Short has carried out extensive research into improving the nutritional content of cheesecakes whilst reducing the cost of production, developing a starch to replicate viscosity, clean up the label and lower the production cost – with added benefits. When frozen and subsequently thawed, cheesecakes often produce a layer of water on the top; incorporating a replacement clean label starch ingredient removes this side-effect.

Another project has the aim of making improvements to low fat yogurt, which can

lack taste and body. The cost of dairy protein can be significantly reduced by partially replacing it with starches, with the added benefits of improving texture and reducing fat. This technique can also be replicated with other dairy products such as soft cheese. For further information contact Ulrick & Short on Tel +44 (0)1977 620011 or visit www.ulrickandshort.com. J

EU Commission Approves Barry Callebaut’s Health Claim he EU Commission has approved T Barry Callebaut’s health claim submission on cocoa flavanols, following the positive Scientific Opinion issued by the European Food Safety Authority (EFSA) in July 2012. Barry Callebaut received the right to use the health claim that “cocoa flavanols help maintain the elasticity of blood vessels, which contributes to normal blood flow” – the first in the cocoa and chocolate industry. Barry Callebaut was able to provide evidence that the daily intake of 200 mg of cocoa flavanols (provided by 2.5 g ACTICOA® cocoa powder or 10 g ACTICOA® dark chocolate) supports a healthy blood circulation by helping to maintain the elasticity of the blood vessels.

Barry Callebaut now has the proprietary right to use the cocoa flavanols claim within EU countries. The claim can be used for cocoa beverages (with cocoa powder) or for dark chocolate providing at least a daily intake of 200 26

mg of cocoa flavanols. Barry Callebaut will be able to use the claim for its ACTICOA® cocoa and chocolate products which retain most of the cocoa flavanols naturally present in the cocoa bean Barry Callebaut’s customers who use ACTICOA® cocoa and chocolate products can apply the claim on their products and packaging. With this, they will be able to differentiate their offerings from other

products on the market. Barry Callebaut sees new market potential to use the cocoa flavanols claim for – among others – applications in chocolate drinks, products using dark chocolate and even for the pharmaceutical industry.

In July 2012, Barry Callebaut was the first company in the EU to obtain a positive Scientific Opinion on a health claim on cocoa flavanols by EFSA. Since 2005, the company has carried out more than 20 human clinical studies examining various impacts of cocoa flavanols on the human body functions. For these studies, Barry Callebaut used products made through its own developed ACTICOA® process. The company’s specific ACTICOA® process is the outcome of years of research into ways of preserving cocoa flavanols. Barry Callebaut succeeded in maintaining up to 80% of the cocoa flavanols which would otherwise be destroyed for the most part during the conventional chocolate-making process. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

I

APPOINTMENTS

Cargill Reshapes its Cocoa & Chocolate Sales Team to Move Closer to Customers argill’s cocoa & chocolate business C has reshaped its sales team, to create a more customer-driven operation, under

Emiel van Dijk (centre) Sales & Marketing Director, Cargill Cocoa & Chocolate, and his team.

the leadership of newly-appointed Sales & Marketing Director, Emiel van Dijk.

Emiel Van Dijk, who joined from Cargill’s European refined oils business, led the reshaping of the sales function.

He explains: “This initiative has been driven by our belief that by getting closer to our customers we can create genuine partnerships to make them even more successful. This new structure allows us to increase our engagement with customers, to understand and meet their needs more fully, with greater agility and efficiency.”

The 75-strong sales team, which

includes a number of new appointments, is now organised in seven geographical clusters rather than on product lines.

This brings the sales team physically nearer to customers, facilitating closer relationships. It also enables each sales person to have a more in-depth understanding of specific market requirements.

“A further benefit for customers is that they will now be served by a single person offering our total product portfolio – from butter and liquor to cocoa powder, chocolate, and coatings and fillings,” concludes Emiel Van Dijk.

The new customer-aligned sales structure operates worldwide, with North and South America already operating regional teams under regional sales leadership. J

New Chairman Appointed to Carbery Group est Cork-based Carbery Group has W announced the appointment of Donal Tobin, a dairy farmer from Rosscarbery, as

wealth of experience and expertise which will enable Carbery Group to develop further in the years ahead, building on the very solid foundation which has been laid for the organisation by outgoing Chairman Derry Connolly. His previous experience as a vice-chairman of Carbery and Chairman of Lisavaird will stand to him in this new

role and the management team look forward to working with him.”

Donal Tobin has a Diploma in Dairy Chairman to the board. Donal Tobin has Herd Management & Company Corporate been Chairman of his local co-op Lisavaird Governance, and a keen interest in GAA since 2008, vice-chair of Carbery Group and rowing. Donal Tobin is married to since 2011, and chair of the company’s Marie and has four children. audit committee. Donal Tobin has taken Carbery is a leading international manuover from Derry Connolly, and facturer of value-added ingrediwill support the management team ents, flavours and cheese. in delivering its strategy and vision.

Headquartered in County Cork, Commenting on his new role, Ireland, Carbery has production, Donal Tobin says: “I was delighted R&D, service and marketing to accept the appointment and capabilities in Europe (Ireland, look forward to seeing Carbery High Wycombe), the USA and Group continue its growth phase.

Brazil.

We are committed to paying a The Carbery product range has leading milk price and are currentdeveloped to include over twenty ly ensuring we are well prepared well-known cheeses, including for 2015 and the abolition of milk Dubliner, added-value ingredients quotas. This will guarantee that we and flavours for many sectors of provide a top quality product, prothe food, beverage and nutrition duced to the highest standards industries. With a heritage stretchfrom a pasture based sustainable ing back over forty years, Carbery West Cork-based Carbery Group has announced the appointment of system.” is still at the forefront of innovaDonal Tobin, a dairy farmer from Rosscarbery, as Chairman to the Dan McSweeney, CEO of tion. For further information visit board.

Carbery Group, says: “Donal has a www.carbery.com. J FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

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Cargill Launches New Risk Management Tools to Help Customers Manage Cocoa Price Volatility argill’s cocoa and chocolate business, one C of the leading players in the global cocoa and chocolate market, has launched three new tools in its portfolio of Price Risk Services to help customers more easily manage price risk.

These new protective structures, CocoaPacer, CocoaPacer Cap and CocoaRange Cap are designed to help protect customers from volatility when pricing their cocoa ingredients. For example, they can offer protection within ingredient purchase contracts against sudden increases in cocoa prices, yet preserve the potential benefit of a discount if the price falls before physical shipment.

Cargill is one of only a handful of companies to offer price risk management for cocoa and chocolate ingredients, and is the only global cocoa and chocolate company to offer a dedicated Price Risk Services programme.

Customer Risk Manager Tom King explains: “Cargill has been trading agricultural commodities around the world since 1865, so managing price risk is part of our

heritage and a strength we can share with our customers to help them become even more successful. Our CocoaPacer, CocoaPacer Cap, and CocoaRange Cap

products are the latest addition to our -‘family-’ of risk services. They are straightforward, transparent and can be clearly explained – so customers spend less time and energy debating an array of risk management decisions. These pricing structures are embedded in existing physical contracts of our customers.”

Cargill’s protective structures offer an

additional approach to managing price risk when sourcing ingredients; they should be used as a complement to traditional pricing approaches currently used by our customers.

An important feature is to provide customers with a hedge benefit, which can limit the uncertainty and anxiety associated with making a traditional pricing decision. Price risk management is about determining the appropriate balance of risks in light of an organisation’s business objectives.

“Because of continued cocoa price volatility, many food manufacturers are coping with extraordinary uncertainty when managing price risk exposure to cocoa and chocolate ingredients. We feel that, by combining our risk management discipline with our knowledge of the cocoa and chocolate sector, we have developed a consistent and methodical approach to managing price risk that is of real benefit to our customers,” concludes Tom King.

For further information, please visit: http://www.cargillcocoachocolate.com/riskservices/protective-structures/index.htm J

New Book on Cereal Grains to Help Food and Beverage Industries niversity College Cork (UCC) U researchers have produced a book on cereal grains that will be a useful resource for the food and beverage industries. Cereals represent a staple food for nutrition and significantly affect health.

The demand for processed cereals in the human diet is increasing.

Consequently, they are of major importance to the food industry. The population explosion in developing countries is unprecedented in the history of the human species, as are its repercussions on the economic trend of the cereal market.

The book, ‘Cereal grains for the food and beverage industries’, represents a comprehensive collection of material relating to cereal grains, ranging from the economic impact of the grains, to their applications in food and beverage products, whilst also providing an indepth investigation of grain morphology, 28

grain constituents, and globally applicable food processing technologies. The authors of the book are Dr Emanuele

Dr Emanuele Zannini (left) and Professor Elke Arendt of UCC.

Zannini and Professor Elke Arendt of the School of Food and Nutritional

Sciences, UCC. The book reviews the major cereal species with the obvious starting point of wheat and triticale, with subsequent descriptions of rye, barley, and oats, as well as other major species including rice, maize, sorghum, and millet. It continues with a discussion of the economically relevant pseudo-cereals buckwheat, quinoa, and amaranth.

It is intended that this book will be a useful resource for ingredient manufacturers, cereal scientists, food technologists, marketing personnel, nutritionists, food chemists, food and nutrition policy makers, and health care professionals, as well as those interested in grain sciences, and working in or studying the food and beverage industries. The book is published by Woodhead Publishing Ltd in its Series in Food Science, Technology and Nutrition No. 248 and costs Eur205. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

I ENERGY EFFICIENCY

High Energy Losses in Cold Stores are a Thing of the Past is a world premiere, it revolutionizes door Iofttechnology in cold stores and sits at the top deep-freeze doors with an extremely low heat transfer - the EFA-TK-100 featuring EFA-AFM. With the development of this product Efaflex has designed a high-speed door that sets new standards for equipping deep-freeze areas in cold stores.

In the light of climate change and rising raw material prices, there is a growing trend towards developing low-energy products and equipment to improve the energy balance of companies. With a heat transfer of down to 0.74W/mÇK at dimensions 3000 x 3180mm, this low-energy door from industrial high-speed doors specialist Efaflex achieves more than any other deep-freeze door has achieved so far. A dynamic door blade and AFM spiral track (Active Framework Mechanism) ensures the door blade remains pushed against a seal around the door frame when closed, and thereby

seals off the deep-freeze area practically hermetically.

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

the door blade, the floor and the individual laths of the door blade. High-speed doors between deep-freeze areas down to -30°C and areas at 0°C must be especially well insulated and tight.

The excellent insulation of the EFA-TK100 featuring EFA-AFM is achieved for the first time using 100 mm-thick EFATHERM laths. The laths are individually fixed to the hinge chains. Accordingly, the laths exert no force since the rollers only need to bear single laths. This ensures a long life of the motors and makes the laths individually changeable.

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

AET deliver biomass-fired boilers and combined heat and power or power plants between the sizes of 25 – 170MWth. Our plants are characterized by: • High fuel flexibility • High availability (+99%) • High boiler efficiency (+92%) • Very low maintenance costs High fuel flexibility The AET Combustion System enables the Use of many biomass fuels – separate on in Combination. The biomass fuels can originate from forestry, agriculture, residual products from process industries or is based on industrial waste.

Aalborg Energie Technik a/s Alfred Nobels Vej 21 F DK-9220 Aalborg Oe. Telephone: +45 96 32 86 00 fsl@aet-biomass.com, The Helius CoRDe-Rabobank biomass CHP plant in Scotland burns wood and distillers grain.

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FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

www.aet-biomass.com

I ENERGY EFFICIENCY

Testo Thermal Imaging – Preventative Maintenance Made Easy untons is a proud ISO accredited family firm established in M 1921 which has grown to be an international name and specialist in the supply of healthy malts, malt extracts, flours and flakes and other malted ingredients to the food, baking and drinks industries. This calls for regular quality checks and close supervision of engineering processes which has lead Muntons to recognise and adopt the notable features and benefits that Testo thermal camera technology can offer in the food processing industry.

The maintenance and reliability of this engineering has been placed in the dedicated hands of AV Technology Ltd and their resident engineer Russ Parry who is best placed to set the scene. “We were looking for a non-invasive inspection tool and thermal imaging absolutely fitted the bill. We looked at all of the major names and decided on Testo because it provided the best combination of functionability with affordability and it has proved to be a wise and very flexible choice.”

He continues: “The Testo camera is used for easy and comfortable access in situations as variable as steam traps, electricity panels, bearings and motors. It allows us to carry out our own surveys quickly and accurately for fault diagnosis and root cause analysis.

We have six people trained for the product and they have all found it logical and easy to use for on-going mechanical assessment of all of the machinery, with the super resolution being especially practical, and the process improvements are very evident. It really is a simple case of point and view with major impact on time, operating costs and safety and it has certainly met our expectations in practice.” J FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

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I AIR QUALITY

Cargill’s New Vehicles Cut CO2 Emissions For its Cocoa & Chocolate Business argill’s cocoa & chocolate business has C introduced two new Eco-Combi trucks to replace three conventional vehicles – reducing CO2 emissions from transport by 30 per cent. The vehicles are being used to transport the company’s Gerkens® cocoa powder on 3,250 journeys per year, from Cargill’s plant in Wormer, the Netherlands, to its ultramodern 50,000 square metre warehouse facility operated by DSV in the port of Amsterdam.

The new vehicles mean that 2,000 fewer journeys per year are now undertaken – 3,250 compared to 5,250 previously – which means a reduction of 100,000 kilometres per year travelled.

“As well as lowering CO2 emissions, and reducing fuel use by 30 per cent, residents in the Wormer area are also pleased with the reduced number of vehicle movements,

which has created a more pleasant environment,” explains Karel Seinen, Logistics Manager, Cocoa, for Cargill Cocoa & Chocolate.

The Eco-Combi vehicles are longer than the vehicles they replace, 25 metres compared to 18 metres. They are also heavier,

and have upgraded braking systems and adapted axles to aid steering and turning.

“Our old vehicles had a 50-tonne maximum weight limit, which meant we could transport 25 tonnes of powder. The new ones have a 60-tonne limit, but can transport 40 tonnes of powder as a result of better weight distribution across the increased length,” continues Karel Seinen.

“Safety is extremely important to Cargill and we undertook a thorough trial before purchasing the vehicles. We also researched the safety records of such vehicles in other countries, which demonstrated that Eco-Combi trucks actually have a better safety record than conventional heavy vehicles.

“The move to Eco-Combi trucks is working well for us, producing the environmental benefits which we seek as well as cost savings,” concludes Karel Seinen. J

Data Monitoring – Easy, Versatile and Precise he T&D Corporation has released a new data logger model for the European market to T facilitate CO measurements inside manufacturing plants and public or agricultural buildings. The wireless CO recorder RTR-576 from T&D Corporation is a three-channel data 2

2

logger designed to simultaneously measure and record CO2 concentration, temperature and humidity.

Monitoring CO2 levels enables users to identify under-ventilated areas – the source of most air quality complaints – and allows the necessary steps to be taken to maintain optimum air quality. The logger can also help to identify energy saving options in over-ventilated spaces.

With its internal NDIR sensor, the new model achieves CO2 measurements from 0 to 9,999 parts per million. Automatic atmospheric pressure adjustment for each location ensures that CO2 measurements are stable and accurate. Humidity and temperature from 0 to 99 per cent relative humidity and -30 to 80° Celsius are captured by a high precision sensor. The data logger can store up to 8,000 data sets at arbitrarily chosen intervals, and its specialist software enables data from all three channels to be viewed simultaneously in graph or table form.

The RTR-576 also features flexible recording and battery operation.

In combination with a networked RTR 500 series base station, the RTR-576 enables users to upload current readings to the T&D WebStorage Service and to monitor them via a PC or mobile device from anywhere in the world at any time. The necessary software and a storage capacity of up to 20 MB on the company owned server come free of charge. Depending on the base station model and data collector being used, communication via USB or LAN networks is possible.

There is growing awareness throughout Europe of the need to monitor CO2 levels within buildings to help determine indoor air quality (IAQ), and recommended guidelines exist for public buildings such as schools and office facilities. Areas with poor ventilation can lead to an increase in CO2 levels, which can cause concentration disorders as well as health problems.

Monitoring CO2 and climatic conditions like temperature and humidity is also important for buildings that house valuable goods, such as museums, greenhouses, processing areas and livestock barns. For further information, visit www.tandd.com. J FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

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I DAIRY

Arla Foods Sets New Standards in Efficiency and Sustainability Arla Foods’ new £150 million dairy at Aylesbury, on the outskirts of London, is the world’s first zero carbon milk processing facility. xpected to be completed in October, the new dairy, which will eventually be able to process a billion litres of fresh milk every year, will set new standards for fresh milk processing in the world. As the most efficient, fresh milk processing facility of its kind, the Aylesbury dairy directly supports Arla’s Arla is the UK’s number one in fresh liquid milk. philosophy to deliver the highest possible returns to its farmers. As a supports its commitment to sustaining zero carbon dairy, the site is also central to British dairy farming as the new dairy will Arla’s sustainability strategy. process only British milk.

The UK is Arla’s largest market, generThe new dairy site at Aston Clinton, ating about a quarter of group sales. Arla Aylesbury, was selected after in-depth is, of course, Europe’s largest dairy co- consideration of several potential sites, operative and the world’s sixth largest due to its optimum location between the dairy company. It has 12,250 dairy farmer farmers supplying the milk and the cusowners, of which 1,600 are British. tomer base in the south east of England.

Assessing the facility’s environmental impact has been of paramount imporUK Growth Establishing a one-billion litres fresh milk tance at all stages of the construction dairy is in line with Arla’s ambitious UK from design through to completion, and growth strategy and environmental ambi- the most advanced processing technolotions, and its long-term policy of improv- gies have been incorporated along with ing performance in standard milk. It also cutting edge renewable energy solutions in order to help fulfill Arla’s ambition for the dairy to be the most environmentally advanced in the world.

The entire production process, incorporating milk intake and storage, pasteurization, making the bottles on site, packaging and refrigeration prior to dispatch, has been optimized to minimise energy use. For example, the 9,000 sq m milk refrigeration section of the dairy has been designed to face north in order to minimise the impact of solar heat, and the various As the most efficient, fresh milk processing facility of its kind, the processes have been located as Aylesbury dairy supports Arla’s philosophy to deliver the highest close as possible to reduce possible returns to its farmers. pipework runs. The Aylesbury

E

dairy incorporates a total floor area of 6.5 hectares.

Water Usage and Energy Efficiency Water usage at the plant – a litre of water is normally required to process a litre of milk – has been reduced through the introduction of rainwater harvesting and water reclamation to significantly raise water efficiency well above the industrial average.

Anaerobic digestion (AD) and combined heat and power (CHP) technologies are key features of the new facility’s waste management and energy efficiency regime. The AD plant can handle up to 500,000 litres of waste water a day to produce renewable energy for the CHP generator.

The Aylesbury energy centre has a power output of 8.2MW - 4MW of electricity used to partially power the factory and 4.2MW of heat. A measure of the success Arla has achieved in its sustainability objectives for the new Aylesbury dairy is reflected in the fact that the facility has attained BREEAM ‘excellent’ rating.

Additional energy savings are achieved by delivering the milk to the pasteurization area by gravity and blow moulding the plastic bottles for the packaging process on site before delivery by a ‘hole in the wall’ operation to the filling hall.

On site bottle production is currently used at a number of Arla’s other sites, but the operation at Aylesbury is the first on this scale in the dairy industry. The new facility provides total flexibility, allowing Arla to react quickly to changing customer requirements.

Blow moulding and handling plastic bottles with the lowest energy consumption possible, will not only assist Arla’s zero carbon ambition but also provide its customers with the lowest carbon fresh milk packaging available in the UK.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

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Arla Foods’ Strategy Delivers Increased Earnings

Milk Packaging Innovation Innovation in milk packaging will play a crucial role in helping Arla UK to achieve its CO2 reduction targets while also improving efficiency and competitiveness without compromising on quality and functionality. Packaging - Arla UK uses around 800 million plastic bottles every year – is responsible for approximately 30% of the total annual CO2 emissions of the business.

Arla UK is adopting a new environmentally friendly bottle, which weighs just 34 grammes and contains 15% recycled plastic. The innovative, ultra-light design will ensure a reduction in packaging weight of more than 3,000 tonnes per year.

The bottle is in line with Arla’s Designto-Value programme under its Strategy 2017 development plan. The new bottle, which sets new standards in eco-friendly design in the UK, is an example of how Arla is endeavoring to lead the way in the global dairy industry.

An even lighter bottle has been developed for the new dairy at Aylesbury. The aim is to reduce the weight by 20%, while increasing the proportion of recycled plastic to 30%. Indeed, Arla has become a pioneer in the dairy industry for packaging innovation.

UK Market Leader Arla is the leading dairy company in the UK with a turnover of about £2.1 billion and a milk pool of 3.2 billion litres. It is the UK’s number one in fresh liquid milk, butter and spreads and dairy ingredients and the UK’s largest cheese manufacturer.

Its major UK brands – Lurpak, Anchor and Cravendale – are all ranked among the top 100 grocery brands in the UK. Arla’s UK business has been recently strengthened by last year’s merger with British dairy co-operative Milk Link. The UK business generated 25% of Arla’s 36

Arla Foods has posted significant growth in earnings, revenue and profit for the first half of 2013. The effect of last year's mergers and acquisitions are beginning to be realised and the company has also capitalised on the upturn in the global market for dairy products.

For the first six months of the year, Arla increased revenue by 19% to DKr35.7 billion (Eur4.8 billion).

The increase is being driven by organic growth in Arla’s core and growth markets in addition to the effect of last year's mergers and acquisitions, particularly in the UK and Germany.

The milk price paid to Arla's owners was increased Peder Tuborgh, chief executive of Arla three times during the first half of the year, and a fur- Foods. ther increase is due in September. Arla’s Performance Price for the first half year increased to DKr2.87 per kg of co-operative owner milk (against DKr2.64 per kg for the equivalent period in 2012). Net profit of DKr1.05 billion for the first half of 2013 is double that delivered for the first half of 2012 and is in line with the group's target that its profit is equivalent to 3% of its revenue.

“Arla has delivered a strong performance in a global market which, generally, has been characterised by higher prices due to milk production being unable to match the growth in demand. We have strictly adhered to our corporate strategy both inside and outside Europe, and in the first half of 2013 this has enabled us to increase the milk price paid to our owners three times, which has increased earnings for farmers,” says Peder Tuborgh, chief executive of Arla Foods.

Last year, Arla undertook two major mergers, resulting in it now being the largest dairy company in the UK and the third largest in Germany. The benefits of the two mergers are now beginning to show, including increased production efficiencies and enhanced product portfolios, both of which further strengthen Arla's position in Europe.

“The process of integrating the Arla is now the largest dairy company in the UK and the third companies with which we have largest in Germany. merged is progressing faster than expected, and the positive results that we intended are now beginning to be realised. In less than a year, we have succeeded in increasing the profitability of the additional billions of kilograms of milk that we are now processing as a result of the mergers, and this is strengthening the combined earnings from our core business in Europe,” says Arla's chief financial officer Frederik Lotz.

Arla expects to realise revenue of DKr73 billion for the 12 months of 2013 and a Performance Price of just under DKr3.00 per kg of co-operative member milk. The profit for the year is expected to be the planned 3% of revenue, which will amount to DKr2.2 billion.

group revenue of DKr63 billion in 2012 and is predicted to account for 26% of the DKr73 billion revenues expected in 2013.

As Aylesbury comes on stream, Arla will phase out its existing dairy and distribution site at Ashby-de-la-Zouch and transfer volume to the new dairy.

Raw milk will begin to be transferred from Ashby from October 2013 with the site scheduled for closure in April 2014, with the loss of up to 370 jobs.

Expanding UK Ownership Arla is currently looking to expand its UK milk pool by a further 500 million litres by 2017, by recruiting new farmers as well as through the expansion if its existing supplying farms.

Arla is in the process of strengthening its co-operative status in the UK by

expanding British ownership from a current level of 1,600 farmers to about 3,200 from 1st January 2014. J

Arla Foods is in the process of strengthening its cooperative status in the UK by expanding British farmer ownership.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

Tasty Menu at Packaging Innovations London 2013 ood and drink companies will have plenF ty to see at Packaging Innovations London. The show, at the Business Design Centre on 1 & 2 October, has grown significantly on last year, with 165 exhibitors, four packaging areas, a packed learnShops programme, and plenty of show floor ‘theatre’ in the form of The BIG Packaging Debate, one-to-one advice and the Lions’ Lair.

First and foremost, visitors head to the show to get inspired – to spot new ideas, concepts and suppliers from right across the packaging supply chain, and there’s plenty of inspiration in store for visitors attending the 2013 show.

Show Exhibitors The Alexir Partnership has teamed up with Ennstal Milch to show-launch the new Cartocan® into the UK market. The Cartocan® is the first and only cylindrical packaging format made from carton board to be filled aseptically with liquid and have an extended shelf-life of up to 12 months unchilled. This environmentally-friendly alternative is aimed at premium products in the drinks industry, covering all sectors other than carbonated.

Simply Cartons, one of the UK's most innovative carton manufacturers, will be launching TriFold at the show. TriFold takes pick and place cartons to the next level, giving all-round visibility something that hasn't been possible before as a onepiece pack.

ITC Packaging will be demonstrating its latest development with Laboratorios Ordesa, for the baby food industry; a cap that improves the hygienic and safety features of powdered milk tins. The new cap,

which is more air-tight than usual powdered milk caps, also incorporates a dispensing spoon inside the cap for consumer convenience – effectively doing away with the search for the missing spoon inside the powder.

For brands road testing new concepts, Firstan Cartons is showcasing its new mock-up services, which help all marketing and packaging professionals visualise a product in its packaging prior to launch.

Innovia Films will demonstrate its collaboration with Sappi Europe. By combining their respective compostable substrates, Innovia Films’ NatureFlex™ and Sappi’s Algro® Nature, the end result is a compostable high performing material with an alternative combination of technical properties that meets the EU Packaging Directive coming into force in 2014.

Start-up food and drink companies should visit the Design Activity stand. The company, whose client list includes Bassetts soft & chewy vitamins and Kenco coffee, will outline how it has been helping SaVse Smoovies in the early stages of its development by using design to help SaVse Smoothies advance its business.

Berry Place will be showcasing its unique metal collector’s box, which it helped create for Belvedere Vodka. The clever design means the container doubles as an ice-bucket once the 992 mini-bottles of vodka are removed. The boxes are constructed out of tin and feature bespoke vacuum-metalised lids and ringpulls.

Additionally, ’Gmund for Food’ will be promoted on the GMUND stand, a natural paper that has been tested and certified safe for contact with foodstuffs.

Available in a wide variety of designs and colour groups, it is suitable for use as high-quality packaging for products such as organically grown tea, muesli, Belgian pralines, coffee and point-of-sale confectionery.

Fine food manufacturers will also want to check-out the Stribbons stand, where the company will be demonstrating a range of luxury packaging concepts.

Keeping it green, Direct Source Packaging Co, which produces packaging products designed for repeated use by customers to increase brand exposure, will be launching a new variety of environmentally conscious materials at the show.

Tinware Direct has re-launched PRESSITIN and will be displaying the new and improved tamper proof tin at the show. The manual sealing tin can allows users to seal a can with a simple but ingenious push-on closure. The tins can now be designed and labelled to any company’s requirements to enhance shelf standout.

Show Features Innocent Drinks, Unilever, T-Tox, Defra, ZigguratBrands and Bombay Sapphire – plus many more – will all be sharing their packaging secrets at the show. The packed two-day learnShops programme will see experts from major global brands exploring the very latest thinking, technologies and trends in the global marketplace.

Clover Abbott, Packaging Technologist at Innocent Drinks, will explain how packaging has been instrumental in the business, from demonstrating it values, communicating with consumers and selling its products.

Packaging can be a real opportunity for smaller brands to make a big statement.

Johnny Harris, Director at T-Tox, an exciting new 'Loose Leaf Tea' company, will consider how far packaging goes in defining your brand, and will draw on his own company’s experiences to illustrate the challenge

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

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of finding innovative packaging on a budget.

Sarah Lyons, Global Marketing Executive at Bombay Sapphire and Oxley, and Dominic Burke, Creative Director at Webb deVlam, will be joining forces on ‘Bringing Bombay Sapphire to life through design’.

SunBites, the fastest growing brand from Walkers, has achieved a 500% sales uplift in less than three years. In his talk ‘Designing for better profits in the Better-For-You category’, Adrian Collins, Managing Director at ZigguratBrands, will look at how packaging has helped deliver this dramatic performance.

Stephen Pugh, Head of Food Labelling, Food Policy Unit at Defra, will be giving an insight into Defra’s thinking and government policy on food labelling.

BIG Packaging Debate Always a popular show feature is the BIG Packaging Debate, where a panel of pack-

aging professionals debate the topic ‘Online sales will kill packaging design’ at 15:30, on Tuesday 1 October.

As Internet shopping becomes set to change the way consumers shop for a long time to come, the debate tackles how packaging design is going to have to adapt to meet the consumers’ and retailers’ needs. It will question if packaging design as we know it is dead, and what role packaging designers will need to take on in the future.

With a panel of packaging experts debating and answering questions from the audience, each side of the subject will be represented and discussed as they thrash out the controversial topic.

This year’s panel of speakers includes: Innocent Drinks, who will be representing a brand’s perspective; Marks & Spencer, who will be providing a retail viewpoint; putting forward the designer stance will be Design Activity; and Faraday will be representing the consumer insight angle.

Chairing the debate is Kevin Vyse from the Institute of Packaging Professionals UK. Packaging Innovations London is colocated with Luxury Packaging and the Brand & Design Village, featuring all the latest packaging designs, solutions, trends and developments. The Contract Pack area of the show also provides the perfect place to meet professional outsourcing partners.

To visit for free register at www. easyFairs.com/PI-London. J

Space Saving Logistics – The Next Frontier For Corrugated Packaging n today’s challenging economic climate, Isupply logistics managers are scrutinising their chains in an effort to drive down costs and meet environmental objectives through improved efficiency in the transportation, handling and storage of products.

Transportation is a major cost factor for all logistics managers. However, with modern innovations from corrugated, industry is offering extremely space-efficient packaging which is leading to better use of pallets, resulting in fewer vehicles on the road.

Boxes need to be designed to fill lorries from floor to roof. If every single lorry on the road were filled to complete capacity, the savings in fuel costs and CO2 emissions would be huge. Corrugated can adapt itself to various-shaped products, no other packaging material has such flexibility.

Confederation of Paper Industries (CPI) confirms that the UK corrugated packaging industry is making a significant investment in new technologies that are providing innovative packaging solutions to help streamline logistics operations.

Industry is increasingly making use of the opportunity for the height of corrugated cases to be calibrated to specific products, making it possible to carry far more on a pallet. A study by Ceres Logistics (Study to 38

consider the comparative cost of corrugated cases and reuseable plastic containers, 2007) using sugar snap peas as an example, found that for exactly the same number of items per tray, corrugated is 33% more space efficient than returnable packaging in other materials, saving 141 lorry journeys.

Lightweight papers and new flutings are key developments enabling more efficient logistics management. For many years the corrugated packaging industry in the UK has been instrumental in driving down waste within the supply chain. It is a pioneering force in sustainable, lightweight, recyclable packaging that does not compromise the integrity of the products, but ensures that they arrive still in perfect condition.

While corrugated companies have been developing lightweight papers for years, new

types of fluting are a more recent innovation, designed to allow the required compression strength to be achieved while reducing the space necessary to contain the product.

CPI’s Director of Packaging Affairs, Andy Barnetson, says: “The industry is focusing on managing the production process in such a way that it only uses the minimum amount of fibre to do the job. It’s really all about utilising lorry and shelf space more effectively; fewer vehicles mean less fuel miles which all contributes to a greener economy.”

Corrugated has stood the test of time because it has proved to be a hugely flexible packaging medium. It is not only economical, but also has a superb environmental record – over 80% of the material is recycled, saving an area the size of Greater London from landfill every four months.

During the last decade, the industry has initiated corrugated packaging weight savings without impairing protective or structural qualities and the drive for even greater efficiencies continues. New developments in engineering have lead to new types of structural products such as corrugated pallets, which offer huge economic and other advantages. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

TOTAL Success For Advanced Dynamics’ Labelling Solutions dvanced Dynamics, a leading specialist A in feeding, wrapping and labelling solutions, believes the economy may be finally turning the corner after successfully exhibiting its range of high quality equipment at TOTAL 2013 in June.

Over the three days Advanced Dynamics showcased its Pack Leader solutions for labelling everything from medicine bottles to lipsticks – and was encouraged by the positive reception visitors gave the PL-521 Horizontal Wrap Around labeller and the SL-301 Shrink Sleever, both making their show debuts.

Business was also brisk around the ELF range of desk-top labellers, with post show orders already received for the entry level ELF-20 and ELF-50, ideal for smaller production runs. Also on show was the PRO-625 for accurately labelling bottles at high speed regardless of shape or size.

Advanced Dynamics’ managing director, Malcolm Little, says: “It was a very good show and business is flying from it. There was a fantastic buzz at the NEC and that reflects well on the state of the industry.

We are excited at the interest shown in the PL-521 and shrink sleever, while the ELF

desk-top labellers have generated some positive enquiries.”

For challenging shapes nothing can beat the PL-521 for labelling of slim, non-freestanding cylindrical containers such as vials, test tubes, lipsticks and mascaras,

even those outside the normal diameter and length range. The machine’s angled motor conveyor ensures accurate labelling by securing the product on its side as it moves through the label head.

The SL-301 can shrink full or partial tamper evident sleeves up to 300 bottles a minute. Its tamper evident capability makes it perfect for a diverse range of products from soft drinks to jams and

medical bottles. The SL-301 comes with an integrated fill feeder for correct positioning on transport rollers.

Suitable for a variety of sectors, including pharmaceuticals, cosmetics, toiletries, homewares and food and drink, Advanced Dynamics’ exceptionally accurate and robust labelling machines can be stand alone or integrated into a line for a variety of container sizes, cartons and bottle shapes.

Malcolm Little concludes: “Advanced Dynamics is the sole UK distributor of Pack Leader’s range of eye-catching labelling systems, so we were thrilled to demonstrate the machines at TOTAL. The PL-521 and SL-301 will transform bottle labelling in this country and the show provided an outstanding platform to present the exciting benefits of these fabulous machines.”

Pharmaceutical, toiletries, cosmetics and food manufacturers are becoming increasingly aware of the economic and production benefits that affordable and high quality labelling can bring to their operations – TOTAL was an ideal event to demonstrate the amazing versatility of Advanced Dynamics’ equipment. J

Dumpy Doesn’t Have to Mean Frumpy! he design team at Measom Freer think so, they are T pleased to announce the addition of a new 300ml size to their popular stock Dumpy bottle range. The name of these bottles perfectly describes the shape of this cute looking round bottle, manufactured from stock in clear PVC. The collection is available in 30ml (Ref 6114) with 18mm R4 neck, 60ml (Ref 6216) with 18mm R4 neck size & NEW 300ml (Ref 6183) with 28mm R4 neck size. Originally designed as an amenity bottle, the range has proved so popular that larger sizes are now being introduced starting with the 300ml and a 150ml size is to be added shortly.

Measom Freer also stock a wide range of caps and closures to fit these bottles including flip and disc caps, spray, gel & lotion pumps and tall, spouted and dropper caps. Screen printing in one or several colours is also available to complete the desired look.

For further information contact Measom Freer on Tel +44(0)116 2881588, Fax +44(0)116 2813000, E-mail sales@measomfreer.co.uk or buy online at www.measomfreer.co.uk via pc or tablet. J FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

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I RETAIL MARKET

UK Food and Groceries to be Worth Over £200 Billion by 2018 also expect food discounters, like Aldi and Lidl, to continue to do well and build on their recent stellar performance.

They have improved shopper perceptions by effectively communicating the quality and value for money of their products, while also expanding the range of items they sell to help shoppers complete more of their weekly shop there.

Nearly a third (32%) of shoppers tell us they will use food discounters more in the year ahead compared to almost a quarter (24%) in September 2010.” J

he UK food and grocery market is set T to be worth £206 billion by 2018, which represents an increase of over a fifth (21%) from its current value of £170 billion. The figures form part of IGD’s latest research, which also shows that online, discounters and convenience are the fastest growing parts of the market: While superstores and hypermarkets generate the most sales of any type of grocery format, they will grow at a considerably slower rate in comparison to the top three formats.

Joanne Denney-Finch, chief executive of IGD, comments: “The ‘hot three’ areas of online, convenience and food discounters are the ones to watch – collectively accounting for more than £3 out of every £4 of growth in UK grocery over the next five years. Both online and convenience retailing are reaping the rewards of our changing lifestyles. With more of us owning smartphones and tablets, online grocery shopping is becoming more popular.

Retailers are also introducing more convenient and flexible services, such as temperature controlled ‘click & collect’ lockers for shoppers to pick up their groceries at a time and place that suits them.”

Convenience stores are also benefiting from a cultural shift towards shopping ‘little and often’. They are increasingly

Joanne Denney-Finch, chief executive of IGD.

providing products tailored to specific locations rather than a ‘one size fits all’ approach. With their sales set to rise by over £10 billion over the next five years, IGD is forecasting convenience to bring in the biggest cash growth of any type of grocery retailing between 2013 and 2018 Joanne Denney-Finch continues: “We Format

Value - Year to April 2013

Value - Year to April 2018

Change in value - 2013 to 2018

Online Food discounters* Convenience Superstores and hypermarkets (over 25,000 sq ft) Small supermarkets (3,000 to 25,000 sq ft) Other retailers** Total

£6.5 billion £9.5 billion £35.6 billion

£14.6 billion £18.6 billion £46.2 billion

123.7% 96.3% 29.8%

£74.1 billion

£80.1 billion

8.2%

£34.9 billion £9.2 billion £169.7 billion

£37.4 billion £9.0 billion £205.9 billion

7.3% -1.7% 21.3%

*This includes all sales of Aldi and Lidl, and grocery sales of principal high street discounters **This covers specialist food and drink retailers, food sales from mainly non-food retailers and street markets

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FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

QUALITY

& HYGIENE

Chasing Food Allergens ood allergies affect 1-3% of the whole F population and 5-8% of children. Even minor exposure to a food allergen in the milligram range can cause symptoms from mild skin rashes to a fatal anaphylactic shock. Food Allergens contribute to the largest cause for food product recalls due to incorrect labeling.

Cross contamination during the production process often occurs, so that residues of food allergens from different products may be present. Thus Allergen management needs to be an integral part of HACCP system and GMP. Testing for allergens on-site at the manufacturing point of food is a need for hazard prevention and quality control.

Lateral Flow Test Kits like AgraStrip速 are easy to use, accurate, and affordable food allergen detection systems that allow on-site testing of food, environmental swabs and rinse waters. Results can be read in approximately 10 minutes which is critical

42

in today's food production for the real-time decisions needed.

For confirmation of rapid on-site results ELISA technology is often the method of

choice. The newly developed, state-of-theart capsules technology for Allergen ELISA assays cuts down extraction to a minimum of only 1 minute. Furthermore the same

extract can be used for testing different allergens with the AgraQuant速 F.A.S.T. ELISA test kits. With this allergen solution it is possible to save time and increase lab productivity.

For those food manufacturers that are not able to perform Allergen Testing inhouse Romer Labs UK Ltd based in Runcorn, Cheshire offers an UKAS ISO 17025:2005 accredited analytical service for food allergen analysis to serve the food manufacturers in the local market by highest confidence in the accuracy of results. Food Allergen analysis is a key capability and builds upon their expertise as Romer Labs Competence Centre for allergen method development.

Romer Labs速 is the leading company in food allergen testing solution. Its broad range of innovative products includes a large portfolio of ELISA and Lateral Flow test kits for allergens, as well as Analytical Services worldwide. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

QUALITY

& HYGIENE

Labcell Introduces Innovative Dip-style Digital Refractometer abcell has added the Atago Pen Pro dipL style digital refractometer to its range of instrumentation for the food and drink industries. This high-quality, fast and accurate instrument is believed to be unique in that it can be dipped into vessels without product samples having to be removed for testing. In non-homogeneous products, the

mix can be stirred with the ‘pen’ refractometer until the reading stabilises on the integral display.

Very easy to use, the Pen Pro refractometer generates readings in around 2 seconds and, because readings are continuous, any inhomogeneity can be readily identified.

The measurement range is 0.0 to 85.0% Brix with an accuracy of +/-0.2%.

Temperature-compensated Brix measurements can be made in any liquids, sauces or pastes with temperatures of 10-100 degrees C. Because the entire instrument is waterproof, it can be simply rinsed under the tap

before the next reading is taken. A further useful feature is the patent-pending ELI (External Light Interference) technology that provides a simple warning if ambient light might interfere with the reading – in which case, the instrument can simply be shielded by hand.

The Atago Pen Pro digital refractometer is available for rapid delivery from Labcell, complete with a calibration certificate if requested. A data sheet can be downloaded directly from the Labcell website at www.labcell.com or contact the company with specific enquiries by telephone on +44 (0)1420 568150 or email mail@labcell.com. J

Eurofins and Danone Form Long-term Strategic Partnership urofins Scientific, the global leader in E food, environment and pharmaceutical products testing services, has entered a milestone outsourcing agreement with Danone.

As part of the agreement, Eurofins will take over Danone's laboratory for infant nutrition analysis, Central Laboratories Friedrichsdorf (CLF), in return for an exclusive supplier contract for all infant nutrition analyses for Danone and Milupa, its infant nutrition arm in Germany, which will represent at least Eur30 million in revenues over five years. Under the agreement, CLF will continue playing a central role in Danone's infant and clinical nutrition quality control

organization, and in providing Danone and its suppliers access to Eurofins' world-class food testing capabilities.

As the global reference for food testing, including nutritional analysis, Eurofins, through CLF, will be able to provide Danone and its partners with the highestquality of analytical service, with the efficiency of a specialized laboratory, allowing

them to focus on their core businesses. As one of the leading producers of baby food products worldwide, Danone has a strong reputation for quality and safety. This outsourcing agreement is therefore a confirmation of Eurofins' high standards of service and reliability.

The agreement strengthens Eurofins' footprint in nutritional analysis, and allows the group to develop CLF as its competence center for baby food analysis. CLF was previously the in-house laboratory of Milupa within the Danone Baby Nutrition division, and has been performing analyses and quality assurance for them for at least 17 years. J

Precautionary Labelling For Allergens – New Guidance mportant new guidance on allergens will Icross–contamination help companies assess the level of risk of of their products, and take appropriate labelling action as a result, so benefitting consumers who have food allergies. Some 1–2% of adults and 5–8% of children have been reported to have a true food allergy.

Very small amounts of an allergenic foodstuff can cause a severe or even fatal reaction, so food–allergic individuals adopt strict

avoidance diets to prevent the consumption of food allergens. As a result, family, friends and care-givers are also likely to modify their food purchasing habits. It is therefore vitally important that correct allergen information is conveyed to consumers. One area of concern for the food industry relates to accurately communicating the risk of any cross-contamination of a food product with allergens (precautionary labelling, such as 'may contain').

A new guideline document from

Campden BRI – Food allergens: practical risk analysis, testing and action levels (Guideline 71) – includes a systematic approach to aid identification of cross-contamination risk factors. It discusses the circumstances where the use of the 'Action Level' concept may be applicable when conducting a risk assessment to determine the need to include precautionary labelling. For further informartion contact Campden BRI on Tel +44(0)1386 842048. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

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QUALITY

& HYGIENE

TwistDx - Revolutionising DNA Testing NA is the blueprint for life, with all livD ing things, be they plants, animals, fungi or microbes having their own, unique set of instructions. Unlike the binary code (0 and 1) found in computer code, DNA code is written using four letters (A, C, G and T). This means that scientists can develop highly specific tests to detect a short string of DNA letters (known as a sequence) that is only found in a given type of animal or plant (for species authentication testing or allergen detection), and bacteria or virus (for pathogen detection).

Traditional DNA tests are especially powerful because they can turn a single molecule of the DNA sequence being searched for into trillions of copies in a matter of hours. For pathogen detection, DNA tests are thus a good compromise between the slow speed, but high sensitivity of culturing bacteria or viruses and the rapid speed, but relatively low sensitivity of antibody-based tests such as ELISA. For species authentication or allergen detection, where culture is not possible, DNA tests have the speed and sensitivity to compete with antibody tests.

formed on the factory floor using relatively inexpensive devices. The RPA biochemistry delivers Real Time PCR-like sensitivity for DNA detection, but with reaction times of 10 minutes or less instead of several hours.

Additionally, the RPA biochemistry works on relatively crude samples, so for many applications, there is no need for a DNA extraction and clean-up step.

Species Authentication

Recent meat adulteration scandals have brought into focus the need for simple, rapid, species authentication tests. The traditional DNA testing technology, Real Time PCR, typically takes 2-3 hours to run including extracting and cleaning up DNA from a sample. Additionally, the machines required to run PCR tests are large and expensive and so are normally confined to centralised laboratories. The current paradigm for DNA tests for species authentication or allergen detection is to sample a product and then ship it to a central laboratory for testing – a workflow that significantly increases the time taken to perform a test, making the test costly and inefficient.

RPA Biochemistry

TwistDx has developed a technology called Recombinase Polymerase Amplification (RPA) that removes these inefficiencies, allowing testing to be per-

Winter 2013 sees the launch of TwistDx’s first species authentication test, for Red Snapper - a high value species that is often fraudulently substituted by the closely related Mutton Snapper. Users simply need to swab the fish they are testing, dip the swab in buffer and add buffer to the test. The test runs on a handheld device for ten minutes before the user places it in a cassette and waits a few minutes for a yes/no line to appear, rather like a pregnancy test.

Also launching in winter 2013 will be kits for fluorescently detecting horse and pig DNA. Initially these will be for R&D purposes only, but TwistDx hope to transition

these to certified testing products as soon as possible.

Pathogen Detection

Pathogen detection by Real time PCR follows a similar work flow to that for species authentication or allergen detection, but because exquisite sensitivity is needed, samples are added to nutrient broth and cultured overnight to grow the pathogens being tested for. Originally such cultures would have been spread onto specific agar plates and grown overnight again to confirm the presence or absence of the pathogen. The introduction of Real time PCR negated the need for this plating as some of the original culture could be taken and DNA extracted and tested in a matter of hours.

RPA biochemistry still requires the initial culturing step to grow the pathogen, but the subsequent testing can be performed much faster because reaction times are typically <10 minutes and there is no need for a DNA extraction and clean up step – the pathogens can be crudely burst open and added directly. This will shave valuable hours off the time it takes to give samples the all clear. TwistDx currently offers R&D tests for Salmonella, Listeria monocytogenes and Campylobacter spp, but is looking to produce certified versions as soon as possible for use in the real world.

For more information on how TwistDx will revolutionise the DNA testing field for food, and to learn more details about the RPA biochemistry visit www.twistdx.co.uk. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

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QUALITY

& HYGIENE

Authenticity Testing Services From Campden BRI your product what it says it is? Is the rice Ithesbasmati?

Is the burger really beef, and is fish finger really cod? These types of questions require a range of different techniques to determine the answers - including chemical and biochemical analysis, DNA fingerprinting, various forms of spectroscopy and microscopic evaluation.

Legislation and your customers demand that you know the answer. Campden BRI has a wealth of expertise in matters ranging from fruit juice adulteration to genetic modification. Amongst the many services Campden BRI offers are: * Meat speciation. * Fish speciation.

* Variety identification - rice, wheat. * Oils - adulteration of olive oil with hazelnut oil, DNA approach, oil authenticity. * GMO free. * Pasta - adulteration with common wheat. * Frozen versus fresh meat. * Connective tissue in meat products. * Coffee adulteration. * Herb and spice adulteration and

authenticity. * Starch authenticity. * Fruit identity. * Chocolate composition and identification of type.

For further information about our food authenticity testing services email information@campdenbri.co.uk or call +44(0)1386 842000. J

Eurofins Launches Comprehensive Fish Testing Services urofins has launched a full service package E offering a comprehensive range of analytical testing for the fish industry including

of fish and seafood products.

Eurofins is one of the largest commercial service providers for DNA sequencing and

DNA-based fish speciation and all parameters to ensure the overall quality and safety of fish and aquacultural products.

Eurofins offers a rapid and reliable testing of fish species by PCR-RFLP allowing highquality repeatable results and through its German competence centre further fish and aquaculture products testing services to respond to the growing demand across the food chain for authenticity and traceability

hence can offer fish species determination at very fast, industry-leading turnaround times.

EU regulations prohibit the mixture of different fish species in one consumer product sold. However, the high prices of certain fish species have often resulted in cheaper species being mixed in, somewhere along the supply chain. Mislabelled fish and seafood may in some cases also present health risks as they are sometimes species-specific. Food-borne illnesses and allergic reactions are some of the possible health risks especially for sensitive groups. J

New Technology Helps to Safeguard Food Supply Chain uddy Boots, quality assurance and comM pliance software specialists, has launched a new product that helps businesses within the food supply chain ensure its suppliers and their growers meet the requirements set out by customers. Greenlight Supplier Approval is a cloud-based solution that has been designed specifically for the food industry to help manage and simplify the whole supplier approval process. It is a collaborative tool that enables businesses and their suppliers to easily access, record, search and share all of the important data relating to the approval status of a supplier, so they can all share the task of supplier compliance.

With all of this information held in a cen46

tralised, secure location, businesses are able to map their supply chains from grower to retailer, providing visibility and clear transparency of who is in their supply network, where they are located and what products they are supplying to whom. All data is crossreferenced according to individual retailer audit requirements, giving businesses assurance that the produce meets the compliance protocol of the end customer.

Automatic validation of data, which triggers alerts and notifications, ensures the supply chain remains approved at all times, whilst reducing the burden and risk of managing and maintaining the data manually.

Muddy Boots’ Managing Director,

Jonathan Evans, comments: “Incidents like the horsemeat scandal expose the complexities of our supply chains, and even though you may have confidence in your internal operations, it’s often your suppliers that make you vulnerable. Greenlight Supplier Approval offers a comprehensive but really easy way of managing your supplier compliance data; it puts you in control so you can have total confidence that your supply chain is always meeting the required standard.”

Muddy Boots works with many leading international brands including Marks & Spencer, Unilever, Waitrose, Ben & Jerry’s and Coles, Australia. For more information visit www.muddyboots.com. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

I MARKET FOCUS

Convenience of Ready Meals Irresistible for UK Consumers ccording to ‘Ready Meals 2013’, a new A Market Report Plus by market intelligence firm Key Note, the UK market grew by 5.7% in 2012. This was due to continued demand for convenience foods and product innovation.

The UK has one of the most advanced ready meals industries in the world. It is

made up of two principal sectors - chilled and frozen. Chilled ready meals account for more than half the market. Moreover, the sector grew at more than twice the rate as frozen ready meals in 2012.

Nevertheless, its growth rate slowed in 2012, while that of frozen ready meals accelerated.

Chilled ready meals have traditionally been perceived to be of better quality than their frozen counterparts. However, efforts by manufacturers are gradually changing this trend. In addition, the lower cost of frozen ready meals appeals to cash-strapped consumers who are prioritising value.

Flavour is playing a major role in maintaining market dynamism. New recipes and dishes inspired by various ethnic cuisines are being launched into the market. Consumers are eager to try the latest ready meals and manufacturers want their products to stand out on saturated retail shelves. Moreover, there is a niche in the market for children's ready meals.

There is also a demand for healthier ready meals as part of a balanced diet. Vegetarian options, Free-From variants and ready meals made with natural ingredients have all been introduced in recent times.

In January 2013, the ready meals industry was rocked by the horsemeat scandal.

Nevertheless, Key Note expects that the ready meals market is set to make a full recovery. Although it is forecast to decline in value in 2013, it is expected to return to growth in 2014 and is likely to supersede its pre-horsemeat scandal value by 2015.

Overall, between 2013 and 2017, the ready meals industry is forecast to rise by 20.2%. J

British Cheese Tastes Broaden ritish cheese tastes are broadening out B latest retail sales data can reveal. While British Cheddar and Stilton still hold their own as shopping basket staples nowadays shoppers are also picking up what not so long ago were considered fancy continental cheeses.

Sales of varieties such as Manchego, from Spain, Comte, from France, and Taleggio, from Italy, are soaring, making continental cheese the fastest growing area of the UK cheese market.

In the last year, sales of continental cheeses have grown by 8% (Kantar data July 2013) which for a market worth £375 million is strong growth.

At Tesco, the UK’s biggest seller of cheese, the trend is even more pronounced with demand

up by 13%. The most popular continental cheeses in the last year have been: * Chaource – sales up 350% * Comte – sales up 180%

* Langres – sales up 160% * Cave Aged Emmental – sales up 120% * Ossau-Iraty – sales up 60% * Reblochon – sales up 50%.

Tesco cheese category buying manager David Chamberlain says: “During recent harder times people have entertained more at home and that has led to shoppers trying new cheeses as well as picking up their British favourites like Cheddar and Stilton. While the likes of Brie, Camembert, Emmental, Gruyere and Gouda are all established top sellers and have graced the cheeseboards of UK cheese connoisseurs for many years, it’s lesser known varieties such as Chaource, Comte and Reblochon which are starting to win new fans in the UK.” J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013

47

I SAVOURY SNACKS

Pastinos – A True Taste of Italy, Wherever You Go

P

astinos is a truly unique, real Italian gourmet snack that is made from 100% pasta, fried and seasoned with a range of typically Italian flavours. Since its launch in late 2012, Pastinos’ popularity has been steadily increasing and is a welcomed addition to the premium snack category, since Pastinos represents real innovation in snacking. It is pasta, not potato in disguise.

Pastinos was originally launched in the format of 150g sharing bags. Available in five unique mouth-watering Italian flavours: Originale, Sicilian Lemon and Cracked Black Pepper, Tomato and Basil, Arrabbiata and Chianti and Olive, proving to be a success with more flavours in the pipeline.

In July 2013, the proprietors of Martorana Snacks, the company behind Pastinos, Guiseppe (Joe) Martorana and Chef Roberto Perini were delighted to offer a new smaller format of 40g bags to the already popular 150g bags Pastinos range. “We created a unique product and now we have a new range of packs in smaller sizes to complement our idea,”

says Roberto Perini, “from our launch in November we have seen interest in Pastinos increase throughout the UK and now into mainland Europe.”

Why Italian?

Italian food is the most popular foreign food in the UK with 47% of the population choosing to eat pasta, above Chinese, French and Indian. Italy is also the fifth most popular holiday destina48

“One thing we noticed during trials was what a great crunch durum wheat has over traditional potato snacks,” explains Roberto Perini, “and by using natural flavours for the seasoning, has made the product beautiful to taste.”

Guiseppe Martorana comments: “At last we’ve been able to see our idea turn into reality, it has been a long journey, but a worthwhile one.”

Roberto Perini elaborates: “There were times when we thought Pastinos would never happen, but we’ve ended up with a product that I’m sure even our parents would be proud of!”

tion for the UK public, which is why Guiseppe Martorana and Roberto Perini wanted to capture the essence of Italy in their new venture.

Both have a real passion for Italian food and both come from traditional Italian family backgrounds. Guiseppe Martorana, a successful businessman born in Sicily is also a restaurateur and has fond memories of his early years with his family: “Food was always central to our family, and in typical Italian tradition was quite simple really, but always used the finest ingredients. I wanted this concept to become inherent to our range of pasta snacks, we insisted we used all natural ingredients in the making of Pastinos.”

While Roberto Perini, after months of discussing, planning and developing the idea for Pastinos, saw his dream brought to life: “I had a vision five years ago; the most famous Italian food is pasta, wouldn’t it be great if you could eat pasta while cycling, walking, running or in fact eat pasta anywhere.”

Pastinos - At a Glance Pastinos don’t just look and taste great; they have the following attributes too: - Use all natural ingredients - Suitable for vegetarians - Lower fat than a typical potato crisp product - Contain no artificial colours or flavours - No added MSG and contains no hydrogenated fat - Cholesterol-free - A low GI carbohydrate.

Pastinos are available throughout the UK and for further information contact: Martorana Snacks on Tel 01992 801 299 or visit www.martoranasnacks.com for stockists and wholesalers. J

Development Pastinos is made from essentially a tube of 100% durum wheat that has been shallow fried at a high temperature, to achieve the consistency required for consumption as a tasty snack. Once fried, the tubes of pasta are seasoned with a range of classically Italian flavours that consumers instantly recognise.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2013