October 2016
European dairy processors invest for future growth
Food & Drink Business Website:
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C o n t e n t s
- 48 P ROCESSING & PACKAGING
- 3 M ERGERS & A CQUISITIONS
Cibus Tec - 25-28 October, 2016 – Parma, Italy.
Coverage of British and international deals.
- 51 C EREALS
- 5 C OVER S TORY European dairy processors invest for future growth.
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Irene Rosenfeld, CEO, Mondelez International.
Rabobank Global Dairy Top 20.
s revitalised demand for hot cereals and premiumisation enough to ward off potential cereal killers?
P AGE 13
Ronald Kers, CEO, Muller Group.
Pioneer Foods expands UK presence.
- 54 S NACKS
- 15 C ONFERENCE & E XHIBITION
Over 40% of young consumers snack regularly.
Dare to Dairy at the IDF World Dairy Summit 2016 – October 16-21 – Rotterdam.
R EGULARS
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Marjan SkotnickiHoogland, President, AIJN.
Processing & Manufacturing16-20, 30 42, 43, 46, 53
- 23-30 F RUIT J UICE
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Healthy outlook for squeezed EU fruit juice and nectar market.
Paul Bulcke, CEO, Nestlé.
Dairy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16-20 CPM Wolverine Proctor - A total solution supplier for breakfast cereal manufacturers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Materials & Ingredients . . . . . . 29, 30, 54-56
Global juice drink consumption to rise by 5% a year.
Beverage Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
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Tetra Pak sees growth opportunities for 100% juice.
Bottling & Packaging . . . . . . . 34, 41, 44, 49
Ranjit Singh Boparan, CEO, 2 Sisters Food Group.
Managing Director: Colin Murphy Editor: Mike Rohan Group Operations Manager: Sylvia McCarthy
- 31 R EADY M EALS
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Demand for convenience drives UK sales in ready meals.
Roelof Joosten, CEO, Royal FrieslandCampina.
Advertising: Ian Stewart & Rachel Howard Production Manager: Sylvia McCarthy
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2 Sisters Food Group to create world’s most advanced poultry processing plant.
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Kevin Lane, CEO, Ornua.
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M E E R R G G E E R R S S M Mondelez International No Longer Pursuing Combination with Hershey Mondelïz International has ended discussions with The Hershey Company, the US-based confectionery and snacks manufacturer, regarding a possible combination of the two companies. The board of Hershey rejected a $23 billion cash and share bid from Mondelez made a couple of months ago. Mondelez is reported to have sweetened the offer but to no avail. “As the world's leading snacking company, we remain focused on successfully executing our strategy to deliver both sustainable top-line growth and significant margin expansion and are well-positioned to continue to deliver value to our shareholders,” says Irene Rosenfeld, chairman and chief executive of Mondelez International. “Our proposal to acquire Hershey reflected our conviction that combining our two iconic American companies would create an industry leader with global scale in snacking and confectionery and a strong portfolio of complementary brands. Following additional discussions, and taking into account recent shareholder developments at Hershey, we determined that there is no actionable path forward toward an agreement.” Hershey is controlled by a charitable trust which owns 81% of the company.
Irene Rosenfeld, chairman and chief executive of Mondelez International.
Bernard Matthews Gobbled Up by 2 Sisters Foods Group Chief Bernard Matthews, the UK’s leading turkey producer and the country’s largest poultry brand, has been bought out of administration in a pre-pack deal by
& &
A C C Q Q U U II S S II T T II O O N N S S A
Ranjit Singh Boparan, founder and chief executive of 2 Sisters Food Group, Britain’s largest grocery market supplier. Bernard Matthews has been struggling for some time. The company reported losses of approximately £8.5 million in 2013/2014 and for the year ended 28 June 2015 pre-tax losses were £3.7 million as turnover declined from £306.8 million to £276.7 million. Owner Rutland Partners, the specialist turnaround and restructuring investor, recently appointed Price Waterhouse Coopers (PWC) to look at possible buyers for the turkey producer. Rutland Partners first invested in Bernard Matthews alongside the existing family interests in 2013. However, on the 20 September 2016, Deloitte was appointed as administrator of Bernard Matthews along with certain subsidiaries. The subsequent prepack sale to Ranjit Singh Boparan is expected to safeguard all 2,000 jobs at Bernard Matthews.
Refresco Completes Acquisition of Whitlock Packaging Refresco Group, the leading European bottler of soft drinks and fruit juices for A-brands and retailers, has successfully completed the acquisition of Whitlock Packaging, a large scale US bottler. The acquisition of Whitlock enables Refresco to create a new growth platform in North America with return and synergy potential, similar to Europe. The purchase price is US$129 million (Eur117 million), on a debt and cash free basis. This represents an EV/adjusted EBITDA multiple of 7.3x and is in line with the average multiple paid by Refresco. The acquisition is expected to be earnings accretive in the first full year of consolida-
tion. Refresco financed the transaction via the existing syndicated term loan facility.
Rémy Cointreau’s strategy to accelerate the move upmarket of its brand portfolio, whereas for Lucas Bols, Passoa would expand its global brands segment, adding a complementary, world famous name.
Carr's Flour Mills Sold in £36 Million Deal Carr's, the UK-based agriculture, food and engineering group, has disposed of Carr's Flour Mills, its food division, to Whitworths Holdings, a leading British flour milling business, for a gross consideration of £36 million and net consideration of £24.9 million after adjustments for working capital and net debt in the business at completion. The disposal will support Carr’s ambition to achieve growth and development in line with its strategic goal of being an international company at the forefront of innovation and technology across both of its remaining businesses of agriculture and engineering.
Rémy Cointreau in Negotiations to Form Joint Venture With Lucas Bols Rémy Cointreau and Lucas Bols have entered into exclusive negotiations with a view to forming a joint venture, based in France, to operate and further develop the global activities of the Passoa brand, the passion fruit liqueur. Under the proposed joint venture, Rémy Cointreau would contribute all Passoa operations, including trademarks and inventory, while Lucas Bols would contribute both its know-how and expertise in the liqueur and cocktail business, as well as working capital. Lucas Bols would assume operational and financial control of the joint venture. The project forms part of
FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
Kettle Foods Takes Complete Control of Metcalfe’s Skinny International snack foods producer Kettle Foods has completed the acquisition of Metcalfe's skinny by purchasing the remaining 74% interest in the leading UK premium popcorn brand. Kettle Foods had initially acquired a 26% stake in the business from Metcalfe in January 2016. Metcalfe was founded in 2009 by Julian Metcalfe, the cofounder of Pret A Manger and founder of itsu. The UK popcorn market is one of the fastest growing categories within the UK snack food industry, growing by 45% over the last two years as consumers increasingly seek out better-foryou snacking options. The addition of a leading premium popcorn brand, Metcalfe's skinny popcorn®, to the UK's leading premium chip brand, KETTLE Chips, reflects Kettle Foods' ambition to evolve into a more widely based premium snacking leader in Europe. Kettle Foods is part of US-based Snyder’s-Lance. Snyder's-Lance manufactures and markets snack foods throughout the US and internationally.
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COVER STORY
European Dairy Processors Invest For Future Growth Merger, acquisition and joint venture activity within the European dairy industry is gathering momentum as some processors attempt to strengthen their respective positions in both domestic and international markets, while continuing to invest in developing value added products and in improving efficiency.
T
he imbalance between supply and demand within global dairy markets, associated with increased milk production in Europe following the abolition of EU milk quotas in April 2015, combined with a slowdown in exports to
The imbalance between supply and demand within global dairy markets is resulting in downward pressure on prices and volatility.
Paul Bulcke, chief executive of Nestlé – the world’s largest dairy company.
emerging markets, particularly China, and the Russian trade embargo is resulting in downward pressure on prices and volatility. In the first half of 2016, growth in milk production outstripped global demand for dairy products. Worldwide milk production during this period increased by an estimated 2% compared to the first half of 2015, while milk production in the European Union grew by 4%. This imbalance impacted both world market prices and the
revenue prices of dairy products in the EU during the first half of 2016. Dairy Market Performance Skimmed milk powder prices dropped below the intervention level of Eur1,698 per ton and 296,525 tons of skimmed milk powder were removed from the market in the first half of 2016 (on a temporary basis) after intervention by the European Commission. Furthermore, 33,795 tons of skimmed milk powder was temporarily stored under the EU’s Private Storage scheme. Similarly, the European butter market also had a temporary supply surplus which resulted in a 16% fall in prices in April compared to January. As butter exports increased, aided by the low prices, and more butter was temporarily removed from the market (up to 107,000 tons in late June) in response to the EU’s Private Storage scheme, butter price slightly recovered to Eur3.11 per kilo in the second quarter of 2016. The cheese market was also affected. The Hannover quote for foil cheese fell under the historic Peder Tuborgh, chief executive of Arla Foods. low of Eur2.20 in January 2016, down to Eur1.95 per kilo in March and April. Between early May and late June, the Hannover quote increased to Eur2.30 per kilo of cheese. Whole milk powder prices exhibited similar fluctuations. Prices decreased by 18% to Eur1.72 per kilo between January and late April but subsequently recovered to Eur2.03 per kilo by the end of June. Prospects For the Second Half Fortunately, the market outlook is improving as milk prices appear to have bottomed out but the trading environment remains challenging. While it remains uncertain what the impact will be of measures by the European Commission to reduce milk production in the EU or the possibility of voluntary restrictions by dairy co-operatives and producer associations, worldwide supply of milk in the second half of 2016 is expected to decrease
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France’s representation in the Top 20 to four companies. Germany has two companies – privately-owned Muller Group (15th) and farmers’ co-operative DMK (16th). Other leading European dairy companies include Mlekovita, Poland’s largest dairy group; Hochwald and Molkerei Ammerland of Germany; Valio, the market leader in Finland; TINE, the leading dairy co-operative in Norway; Berglandmilch, the Austrian dairy co-operative; and Dairy Crest, a leading British branded dairy products business with a growing presence in functional ingredients.
compared to the first half of the year. However, due to the limited purchasing power in many oil-exporting countries, political instability in some countries, the slowdown in demand for dairy products in China and the ongoing Russian trade embargo on EU dairy products, global demand for dairy products is likely to show only a modest increase over the second half year of 2016. The tough market Roelof Joosten, chief executive of Royal environment is accelFrieslandCampina. erating the pace of mergers, acquisitions and joint ventures within a European dairy industry that is already fairly concentrated with over 70% of the region’s milk processed by just twenty dairy companies. Global Dairy Top 20 Europe’s ten largest dairy groups, by turnover, feature prominently in the Rabobank Global Dairy Top 20, with Switzerlandbased Nestlé (1st), Lactalis (2nd) and Danone (3rd), both of France, commanding the top three places – See Table. Dairy cooperatives Royal FrieslandCampina of the Netherlands and Arla Foods (Denmark/Sweden) are ranked respectively 6th and 7th, followed by Netherlands/UK-based Unilever (12th), which is the world’s largest ice cream producer with a global market share of about 27%. Sodiaal (14th) and Savanecia (formerly Bongrain - 19th) take
Difficult Year According to Rabobank, 2015 proved to be a difficult year for the world’s largest dairy companies, with the strong US dollar and currency volatility, together with low commodity prices, reducing turnovers for most of them. “The big story in this year’s top 20 list of dairy companies—based on turnover—is the shrinkage of the overall size of the pie,” points out Kevin Bellamy, global dairy strategist at Rabobank. “Low dairy commodity prices and currency movements have had a dramatic downward effect on company sales values.” In US dollar terms, the Global Top 20 companies posted combined dairy sales of $194 billion in 2015, down 13% year-on-year. However, in euro terms, the collective turnover of the Top 20 improved 4% year-one-year - a clear indication of how much the euro weakened against the US dollar in 2015. As growth in China slowed, the world’s largest dairy companies started to look for new regions to develop with Africa becoming a target. There were 14 deals in Africa in 2015, with further deals in 2016, according to Rabobank. This compares with only three deals recorded in Africa in the whole of 2014. Tough Trading Environment Arla Foods is one of the Global Top 20 companies which saw turnover decline in 2015 and the challenging global market conditions have again negatively affected performance in the first half of 2016, with group revenue falling by 5.3% to Eur4.9 billion, compared to the corresponding period in 2015. According to Arla Foods, increasing milk volumes across Europe generated downward pressure on market prices in the first half of 2016, and global milk prices reached the lowest level for many years. However, the outlook for the second half of 2016 is positive, and
Damien Lacombe, president of Sodiaal.
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process significantly higher volumes of milk into basic dairy products that we could not sell at a profit in the market. This is visible in the 17 percent decrease in both profits and milk price for the member dairy farmers.”
Dr Sil H van der Ploeg, chief executive of Meggle.
Arla Foods maintains its full-year expectations regarding profit and anticipates improvements in its milk price to farmers. Arla Foods was able to deliver on its commitment to process all the milk that its farmer-owners supply – milk volume was up by 1.9% in the first half - and through innovation to process and sell this in the most profitable market channels, so maximising the price the company can pay to farmers. “Our dairies have effectively processed 119 million kg extra milk from our owners and our commercial teams in all markets have proactively ensured that this extra volume has been sold into retail and foodservice channels, avoiding it being used for the production of less profitable commodity products. This is crucial at a time when Arla and our farmer-owners continue to be challenged by the global market decline,” explains Peder Tuborgh, chief executive of Arla Foods. Arla Foods posted a profit of Eur124 million for the first half year corresponding to 2.5% of revenue, compared to 2.3% in the same period last year. For the full year, Arla Foods is projecting revenue to be within the Eur9.5-9.8 billion range and the profit share to be within the target range of 2.8-3.2% by year-end. Arla Foods expects a more stable market situation in the second half of 2016. “Looking at the second half of 2016, we see a positive trend taking hold as the milk production is declining again in Europe and prices are starting to go up. This will be a much welcomed development for Arla and for our farmer-owners,” says Peder Tuborgh.
Ongoing Capital Investment Europe’s major dairy companies are continuing to invest in additional processing capacity and new technology to handle the growth in milk production from dairy farmers more efficiently and to make products to meet the changing tastes of consumers. For instance, having invested Eur600 million in 2015, FrieslandCampina spent Eur215 million in capacity, replacement, quality, safety and sustainability in the first half of 2016. The Dutch dairy co-operative brought a number of new production facilities on stream in the first half of this year, including a plant for producing milk powder and infant nutrition at FrieslandCampina Ingredients in Borculo in the Netherlands; and increasing capacity for infant nutrition at FrieslandCampina Ingredients in Beilen, also in the Netherlands. New investment projects, designed to contribute to improving profitability and processing the milk of the member dairy farmers, are scheduled in late 2016 and in 2017. These are all based in the Netherland and include the expansion of the packaging line for infant nutrition at Beilen; the renovation of the canned condensed milk production line at the plant in Leeuwarden; investment in whey processing at Borculo; and expansion of cheese production capacity at Gerkesklooster.
Glanbia Ingredients Ireland is planning a major expansion to its cheese plant in
Revenue Down at Royal FrieslandCampina Royal FrieslandCampina has also reported a drop in revenue and profit in the first half of 2016 due to losses incurred on milk powder and cheese as it processed a significant increase in milk production from its member dairy farmers. Revenue fell by 2.2% to Eur5.52 billion and profit by 16.7% compared to the first half in the previous financial year. Due to the 11.9% increase in milk production in the first half of 2016, the Dutch dairy co-operative was forced to sell basic dairy products such as milk powder, foil cheese and butter at below cost. The milk price paid to member dairy farmers decreased to Eur30.24 per 100 kilos of milk against Eur36.48 in the first half of 2015 due to the lower guaranteed price for raw milk and the lower value creation. However, Royal FrieslandCampina did achieve growth in volume in infant nutrition in China and South-East Asia, dairy-based beverages in South-East Asia and Eastern Europe and ingredients, with improved results. Roelof Joosten, chief executive of Royal FrieslandCampina, comments: “We can look back on a special first half year. FrieslandCampina is doing well in Asia and with ingredients, realising a fine 2.3 percent growth in volume with added value products. Due to the increased milk production, we had to 8
Wexford entailing investment of Eur35 million.
Further Developments in the Netherlands Danone is also investing heavily in the Netherlands. The world’s third largest dairy company is spending Eur240 million on building a state-of-the-art plant at Cuijk for its Early Life Nutrition business. Intended to capitalise on strong and growing demand for Danone’s international brands, including Aptamil and Nutrilon, for both standard and specialized products, the new factory is due to start production in late 2017. It represents Danone’s largest investment in its European production capabilities and will double its capacity in the Netherlands with output being exported to more than 80 countries globally. As part of its ‘Danone 2020’ development plan, the French food and beverage giant has been restructuring its European Fresh Dairy products business to regain its competitive edge and also reviewing its business model in China for its Early Life Nutrition products. Also in the Netherlands, Oranje Nutrition, a subsidiary of the Chinese group Anhui Fortune Investment, is investing Eur30 million in a new baby milk powder factory at Heerenveen. Production will be sold in the Chinese market.
FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
French Dairy Industry Meanwhile, Lactalis is reported to be In France, the co-operative sector is continuing planning to invest Eur54.3 million at its to res-tructure, according to CNIEL, the umsite in Retiers, to develop high added brella organisation for the French dairy indusvalue dairy ingredients, and Eur14.2 try. Eurial and Agrial have completed their million at its milk plant at Vitre. merger to become the second largest dairy coThe biggest single investment is by Les operative in France with 2.7 billion litres of Maitres Laitiers du Cotentin. Supported milk collected, inc-luding 55 million litres of by the European Investment Bank, the organic milk, a turnover of Eur2.3 billion and dairy co-operative is building a new employing over 4,000 people across 22 indusdairy processing plant at Meautis in trial sites. Normandy at a cost of Eur116 million. The country’s lar-gest dairy co-operative, Sodiaal, has just merged with Co-operative Germany Laitiere de Haute-Normandie. With 4.8 billion In Germany, a number of major investlitres of milk collected, Sodiaal is Europe's ments are being made in the dairy ingrethird-largest dairy co-operative and the world's dients sector. Müller Group is investing fifth largest. Eur200 million in a new whey processSodiaal is planning to diversify its activities ing plant as it continues to expand and and will invest Eur600 million under a six year upgrade its site at Leppersdorf. plan to increase output and to sharpen its comElsewhere, Meggle has recently petitiveness. Sodiaal has also announced a new opened new spray drier facility at its site development strategy – Sodiaal 2020 – with the in Wasserburg to increase lactose proobjective of adding value to the milk of all duction capacity following investment of members to guarantee them a market price, and In Ireland, LacPatrick is constructing a new Eur35 million. Frischli is also investing to increase and share the company’s profits long Eur40million spray drying plant at Artigarvan. in the construction of a drying tower for term. milk powder at its site in Rehburg. The “We are keen to seek out added value in countries where dairy investment of Eur25 million is the largest made by the familyproduct consumption is growing. For exports, our co-operative owned company since it was established more than a century ago. model is essentially based on products manufactured from our Discount retail group Lidl is planning to open its own ice members’ milk,” says Damien Lacombe, president of Sodiaal. cream production facility at Ubach-Palenberg near Aachen. “The notion of critical mass will be crucial if we are to continue Project North Pole entails the construction of a Eur200-250 milfollowing our major customers and counterbalance the effects of lion, two-storey factory with 10 production lines to manufacture volatility.” Lidl own brands under the Gelatelli name.
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FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
worldwide. A key element of Ornua’s growth strategy is to significantly increase sales of the Kerrygold brand from present retail sales of about Eur750 million to Eur1 billion. Kerrygold Park will ensure a world-class supply chain to support both this growth target and the further development of the brand. Kerrygold Park will have the capability to produce new butter products and formats not currently available in Ireland. Kerrygold Park will also house the ‘Green to Gold’ Customer Innovation Centre, which will be a key destination for international customer visits to Ireland. Kevin Lane, chief executive of Ornua, comments: “Kerrygold Park is core to our ambitious plans to develop the Kerrygold brand from a butter brand to a dairy brand. Not only will the new facility significantly enhance our production, it also greatly improves our innovation capability and our ability to deliver premium dairy products to consumers around the world. This is the most effective way of securing value for Irish dairy farmers.”
Kevin Lane, chief executive of Ornua.
Ongoing Investment in Ireland Having invested Eur580 million in new dairy processing capacity between 2012 and June 2014 in preparation for the abolition of EU milk quotas in April 2015, Irish dairy processors are still enhancing their production facilities. Glanbia Ingredients Ireland, the number one dairy ingredients company in Ireland, is planning a major expansion to its cheese plant in Wexford entailing investment of Eur35 million. Processing 2 billion litres of milk and exporting dairy products to over 60 countries, GII is a 60:40 joint venture between Glanbia Co-operative Society and Glanbia plc, the publicly quoted global nutrition company. As well as increasing GII’s cheese processing capacity, the investment will deliver a valuable whey stream for the sports nutrition sector, which is one of Glanbia’s key market platforms. GII has already invested Eur235 million across its milk processing plants at Virginia (County Cavan), Ballyragget and Belview (County Kilkenny) in the past three years. The result of a merger between Ballyrashane and Town of Monaghan Coops in July 2015, LacPatrick is constructing a new Eur40million spray drying plant at Artigarvan. Due to commence commercial operation in April 2017, the new facility is designed to have one of the lowest carbon footprints of its kind in Western Europe and its innovative processing technology, including a pioneering evaporation and spray drying tower, will produce advanced dairy ingredients for the international market. Headquartered in County Monaghan, LacPatrick processes 600 million litres of milk annually delivered by over 1,000 dairy farmers and has a turnover of Eur360 million.
Switzerland In Switzerland, Nestlé recently completed a SFr82 million (Eur75million) investment to expand its infant products factory
New Global Home For Kerrygold Ornua, Ireland’s largest exporter of dairy products, has officially opened Kerrygold Park, a Eur38 million state-of-the-art Kerrygold butter production and packing facility at Mitchelstown in County Cork. The production facility will have a capacity of up to 50,000 tonnes of butter per annum and will initially employ 65 people. Ornua exports to over 110 countries FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
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at Konolfingen. The new state-of-the-art facility will produce infant formula to meet increasing demand from consumer in 90 countries. The investment has reinforced the Konolfingen site’s position as Nestlé’s world centre for children’s milks, cereals, probiotics and specialised food for infants and children. Nestlé’s Produce Technology Centre focusing on the development of infant formula, dairy products and medical nutrition is also based at the Konolfingen site. Muller Group to Invest £100 Million in UK Business Having significantly enlarged its UK business following the £80 million acquisition of Dairy Crest’s dairies business, Muller Group plans to invest a further £100 million over and above normal planned expenditure in its British operational, innovation and marketing capabilities over the next 18 months. Muller’s UK liquid milk, dairy ingredients and chilled yogurt & desserts business is seeking to unlock an additional £700 million of category growth in the UK dairy sector by 2020. Employing about 10,000 people, Muller UK & Ireland comprises two distinct business units - Muller Milk & Ingredients and Muller Yogurt & Desserts. Capital projects will include installing new filling lines and further upgrading the capacity and capabilities of existing production facilities at Muller Yogurt & Desserts and Muller Milk & Ingredients. The investment programme is designed to consolidate Muller’s industry leading capabilities in liquid milk, cream, butter, ingredients, yogurt and chilled desserts. “The Muller brand is already ahead of Coca-Cola and Cadbury’s Dairy Milk in the top 10 most purchased fast moving consumer goods brands in the UK, picked from supermarket shelves 207 million times each year,” points out Ronald Kers, chief executive of Muller Group. “Now we want to use our lead-
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Ornua, Ireland’s largest exporter of Irish dairy products, has officially opened Kerrygold Park, a Eur38 million state-of-the-art Kerrygold butter production and packing facility.
ership position in dairy to rev up the engine and work collaboratively with our customers and of course our farmers to delight consumers and realise the untapped potential that exists to grow this amazing category.” Muller Group believes that better shopper and consumer understanding coupled with new investment in improving the capabilities of its fresh milk, cream and milk drinks business could unlock category growth of £470 million by 2020, marking a major turnaround in a sector valued at £3.3 billion per annum but in decline by 2% value year on year. Refocused Dairy Crest The disposal of its dairies business leaves Dairy Crest focused on its spreads, butters, cheese and whey activities. Dairy Crest has
FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
invested £45 million to manufacture demineralised whey powder, a base ingredient in infant formula, from the whey generated at its cheese making factory at Davidstow in Cornwall. Dairy Crest has also spent £20 million at its Davidstow site to manufacture galacto-oligosaccharide (GOS), a lactose-based prebiotic, widely used in infant formula. Dairy Crest is currently celebrating its 20th year as a public company. Since it was originally floated in 1996, Dairy Crest has evolved from a supply-driven, commoditised business to a lean, branded and added value business. The present business derives nearly all of its income from its market-leading brands and added value products, including Britain’s favourite cheese brand Cathedral City, which has grown from retail sales of just £12 million in 1996 to almost £300 million today. Mark Allen, chief executive of Dairy Crest, says: “I’m very proud that twenty years on from our original listing, Dairy Crest continues to thrive as a listed British dairy company. During that period we have adapted and taken bold decisions to transform the business and ensure that our future prospects are more exciting than ever. Our strategy of de-risking the business and pursuing sales in branded and added value markets continues to work. Our market-leading brands and growing presence in new, high growth markets through our infant formula business will underpin future growth and attractive returns for shareholders.”
Muller Group plans to invest a further £100 million over and above normal planned expenditure in its British operational, innovation and marketing capabilities over the next 18 months.
the whey and lactose generated by A-ware’s plant. Other recent joint ventures within the European dairy industry include an alliance between DMK Group and Arla Foods to create ArNoCo. Based at DMK's Nordhackstedt site in Germany, ArNoCo processes the whey produced by the cheese-making
Joint Ventures To market the output from its investment in demineralised whey powder and GOS production at Davidstow, Dairy Crest has formed a joint venture with New Zealandbased Fonterra Co-operative Group, which is the world's leading dairy exporter and ranks fourth in the Global Top 20. Fonterra has been steadily increasing its influence in Europe. It recently opened its first wholly owned and operated dairy ingredients plant in Europe, as part of a strategic partnership with Dutch cheese manufacturer Royal A-ware. The new site at Heerenveen in the Netherlands consists of two plants working in tandem - A-ware’s facility produces cheese for its customers in Europe, while Fonterra’s plant processes
Ronald Kers, chief executive of Muller Group.
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Arla Foods. Having recently merged with DOC Kaas, the Netherlands’ second-largest cheese manufacturer, DMK Group has been steadily internationalising its business and exports now account for about 40% of turnover.
Mark Allen, chief executive of Dairy Crest.
operation – around 700,000 tonnes every year – to make whey protein concentrate and lactose, which is marketed by
Ice Cream Alliance Nestlé is in the process of combining its ice cream business in Europe and Africa with that of UK-based R&R Group, which is owned by private equity firm PAI Partners. The new joint venture, Froneri, will be headquartered in the UK and will operate primarily in Europe, the Middle East (excluding Israel), Argentina, Australia, Brazil, the Philippines and South Africa. The new company will combine Nestlé and R&R’s ice cream activities in the relevant countries and will include Nestlé’s European frozen food business (excluding pizza and retail frozen food in Italy), as well as its chilled dairy business in the Philippines. “This is an exciting growth opportunity in a dynamic category,” points out Paul Bulcke, chief executive of Nestlé. “Froneri will capitalise on complementary strengths and innovation expertise, combining Nestlé’s strong and successful brands and experience in ‘out-of-home’ distribution with R&R’s competitive manufacturing model and significant presence in retail.” Nestlé and PAI will have equal equity interests in the joint venture. Cheese Joint Venture TINE, Norway’s largest farmer-owned dairy co-operative, is planning to construct a new Jarlsberg cheese production facility in Ireland in partnership with Dairygold, the Irish dairy co-operative. Planned to commence in 2019, the new facility will be developed alongside Dairygold’s existing speciality cheese facility at Mogeely in County Cork. The Irish Government through Enterprise Ireland is support the project. Jarlsberg is a mild, semi-soft cow’s milk cheese of Norwegian origin which resembles Swiss Emmental cheese. TINE has operated a Jarlsberg partnership with Dairygold in Ireland for over ten years. Having undertaken a strategic review of Norwegian export of Jarlsberg, TINE decided to invest in Ireland and to further strengthen the sales and marketing of Jarlsberg in international markets. TINE is also planning a new Eur90 million dairy at its plant at Bergen in Norway. J
Nestlé is in the process of combining its ice cream business in Europe and Africa with that of UK-based R&R Group.
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FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
I CONFERENCE & EXHIBITION
Dare to Dairy at the IDF World Dairy Summit 2016 – October 16-21 – Rotterdam ‘Dare to Dairy’ is the theme for the IDF World Dairy Summit 2016, which is expected to attract about 1,500 participants from all over the world to Rotterdam between October 16th and 21st.
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eld annually by the International Dairy Federation, the World Dairy Summit is the top meeting of the global dairy industry. The major challenge for the global dairy sector is how to help nourish a growing population in a sustainable way. While dairy will continue to be an important source of safe and sustainable nutrition in the years to come, this can only be achieved in close and open collaborations with the global community, including both governmental and non-governmental organizations.
Programme There is no doubt that differences of opinion on the role of dairy in nutrition and sustainability do exist. Therefore the IDF has devised the programme for the World Dairy Summit 2016 to facilitate a dialogue on how dairy can sustainably contribute to feeding 9 billion people. This dialogue is not only with stakeholders from within the global dairy sector, but also includes views from outside. Topics to be addressed in the programme include: • Economics (including economic sustainability) in the sector; • Nutrition; • Sustainability; • Food safety;
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Farming and Farmers; Dairy development; Technology; Standards; Marketing/communication. Not only will these topics be dealt with in their own right, but also various crossovers between these areas have been programmed as the dairy industry’s challenges are becoming more and more multi-factorial complex topics. At occasions in the programme, there will be a speaker presenting a challenging view on a topic reflecting the opposing views in the outside world. In the programme there is also a farmer’s event presenting the farmers’ views. The three days of sessions will close with the Declaration of Rotterdam which is a comprehensive statement on how the dairy sector is going to respond to the various challenges as set by the Sustainable Development Goals of the United Nations. Of course there will also be time for social interaction during the Welcome reception and during the Gala dinner which will be held at inspiring locations.
ronment & biodiversity. Dairy science & technology takes the largest share of the posters, representing about half of the total number. The large number and wide variety of topics promise to bring about very interesting poster sessions during the Summit. Poster presentations will be easily accessible during the conference. Dutch Dairy In order to maximize interaction between all participants during the first three days of the Summit, the Technical Tours are scheduled after the sessions. An attractive Technical Tours programme is scheduled showing the best of the Dutch dairy sector, which has been in the forefront of developments in the global dairy industry for decades. Participants can gain an insight into innovative farming techniques, discover the Dutch cattle breeds or learn about the high-class research and education being conducted in the Netherlands. J
Poster Sessions More than 130 posters have been accepted to participate in the poster sessions during World Dairy Summit 2016. These cover a wide range of topics ranging from marketing and economics to food safety, farming and enviFOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
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Quality Control of Milk and Milk Products With FTNIR Spectroscopy T-NIR spectroscopy allows a rapid and F efficient analysis of the major parameters fat, protein, dry matter, and lactose as well as more specialized special parameters such as salt and pH. It is utilized today in many companies for analysis of solid and pastelike products, such as milk powder, cheese, butter or yogurt. These products are measured without time-consuming sample preparation in diffuse reflection. The optimal solution for analyzing raw milk and liquid milk products is a combi-
Award-winning MPA with sample module LSM for the analysis of solid and liquid dairy products.
nation of the FT-NIR spectrometer MPA with the Liquid Sampling Module LSM, which allows semi-automatic sample feeding and auto-cleaning routines of the system. The LSM is a dual system, i.e. depending on the product and its viscosity the sample can either be pre-treated by the homogenizer or directly fed into the flow cell by a peristaltic pump. This will significantly extended the service life of the homogenizer without having to make hardware adjustments. In terms of accuracy and repeatability, the FT-NIR analysis is comparable to the traditional FT-IR systems, but has significantly more options. Not only milk, but also liquid derivatives of milk and milk products can be measured independently of the formulation with the same instrument. Even very viscous samples such as condensed milk and concentrates can be analyzed easily due to the large optical path length of the flow cell (1000 um). The combination of MPA and LSM can handle sugar containing products such as yogurt drinks, flavoured milk and even products with high fibre content such as cat milk.
Analyzing cheese with FT-NIR using the integrating sphere.
In addition to the different types of milk, following sample types can be analyzed: • Whey and whey concentrates • Whey protein and lactose concentrates • Cream and whey cream • Permeate and Retentate • (Sweet) Condensed milk • Milk and yoghurt based drinks • Melted ice cream. Bruker Optics offers a simple and reliable solution for the milk-processing industry together with ready-to-use calibrations for milk and dairy products. J
Thirsty For New, Green Ways of Saving Water? n the light of the severe and escalating Ifocus worldwide water crisis and increasing on water consumption, Tetra Pak Filtration Solutions has spotlighted a number of focus areas, which can reduce the water intake of dairy and food processing facilities considerably. The new opportunities have spurred the opening of a Water Competence Center in Silkeborg Denmark. In many countries around the world, clean drinking water is extremely scarce, and this shortage makes it problematic for dairy and food processing plants to consume huge volumes of fresh water. However, implementing various green technologies such as RO concentration of milk and purification of process water will help save water and reduce the need for fresh water intake considerably. With the new Water Competence initiative, Tetra Pak Filtration Solutions wishes to inspire dairy and food processing companies to new, greener ways of thinking. New ideas, which will save water 16
and at the same time secure growth opportunities – despite soaring prices of water and increasing regulatory requirements to water consumption and wastewater discharge, which often stand in the way to growth. One very important aspect of reusing and recycling cleaned process water is food safety, and many countries have strict requirements to process water for reuse. One of the tasks of Tetra Pak Filtration Solutions’ Water Competence experts is to map local legislation and requirements to recovered process water around the world. Only by having thorough knowledge of such legislation can the Center provide professional advice to customers with respect to their particular regulatory framework, always with food safety as the main mission. Hence, the overall goal of the Water Competence Center is to create maximum value for customers, delivering sustainable and profitable process solutions, which walk hand in hand with FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
Tetra Pak’s promise: ‘Protects What’s Good’. Tetra Pak Filtration Solutions is Tetra Pak’s center of excellence for membrane filtration, formed by the merger of DSS Silkeborg, Filtration Engineering, and Tetra Pak Filtration Systems in 2012-13. J
I DAIRY
Innovative Self-priming Pump Does Double Duty For Dairies By Allan Bruun, Industry Manager, Dairy, Market Unit Food, Alfa Laval re you looking for a self-priming pump A that improves energy efficiency and reduces noise levels, as well as meeting the lat-
matter the duty point.
est hygienic design standards? Using airscrew technology, the Alfa Laval LKH Prime sets a new standard in self-priming pump technology. Based on the Alfa Laval LKH premium range of centrifugal pumps the Alfa Laval LKH Prime is specifically constructed for pumping liquids containing entrained air, making it an excellent choice as a CIP return pump. The Alfa Laval LKH Prime is 40 percent more energy efficient and operates at noise levels 80 percent below conventional liquid-ring pumps. As all pumps in the LKH family, the Alfa Laval LKH Prime is EHEDG certified and authorized to carry the 3-A symbol. Versatile and efficient, the Alfa Laval LKH Prime is therefore of interest to dairy owners and operators who are concerned with: • Reducing energy consumption • Improving the work environment • Reducing installation costs.
The Alfa Laval LKH Prime also contributes to a better work environment. It reduces the noise emission level by up to 80 percent compared to conventional liquid-ring pumps. With a noise level of a mere 74dBA, the Alfa Laval LKH Prime efficiently eliminates the need for these protective measures.
Reducing Energy Consumption
The hydraulic efficiency of the Alfa Laval LKH Prime reaches over 50% (Image 1). This means the Alfa Laval LKH Prime offers an added advantage over liquid-ring pumps, which typically reach efficiencies of approximately 30 percent. Its high efficiency is easily attainable at a wide flow range, which translates into substantial savings no
Improving the Work Environment
Reducing Installation Costs
While the Alfa Laval LKH Prime is primarily designed for CIP return duties, the hygienic design means it may also be used to pump dairy products. For instance, the Alfa Laval LKH Prime is a reliable pump for emptying milk tanks. Because of the pump’s ability to handle both CIP return liquid and dairy products, it is possible to eliminate the need for a separate liquid-ring pump. The Alfa Laval LKH Prime combines the gentle product treatment and hygienic design of the LKH range with the liquid-ring principle. In many cases, this can reduce the number of pumps required for an installation from two to just a single pump. Reducing the installation costs from two liquid-ring pumps to one Alfa Laval LKH Prime pump results in: • Lower capital investment, one pump instead of two • Lower piping, cabling and automation costs • Lower spare parts and service costs. Service is a key element of any Alfa Laval offering and the commonality of spares, including the shaft seal, in the LKH range translates into reduced spare parts inventory and fast maintenance.
housing the airscrew. The resultant liquid ring creates a water seal between the airscrew hub and the top of the canister (3). An air column is created between the airscrew hub and the liquid ring (1). The air column is separated into air pockets by the airscrew and then forced into the impeller’s suction stage. Some of the priming liquid recirculates over the recirculation pipe (2). Air is removed until the content is just a few percent and no pockets are generated. The pump then acts as a traditional centrifugal pump, transferring the liquid from the suction stage (4) through the discharge (5). When there is no air present, the canister and recirculation loop have no function and are completely filled with liquid. The liquid passes through the canister into the impeller’s suction stage. Here again, the pump acts as a traditional centrifugal pump, transferring the liquid through the discharge at a higher velocity and pressure. To learn more visit: www.alfalaval.com/lkhprime J
Working Principle
As the pump starts up, a liquid ring is formed in the pump head canister (image 2) and the recirculation pipe is filled (2), thereby achieving the initial prime. This liquid ring is formed in the space between the diameter of the inlet pipe, and the outer diameter of the offset canister FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
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Gemak Equips New Village Dairy Yogurt Plant arlier this year, Gemak was awarded a E contract to manufacture and commission a state-of-the-art continuous yogurt processing plant at Llaeth y Llan, Village Dairy where Gareth Roberts and his family have been producing superb, award winning yogurts since the ‘80s. Plenty of hard work and perseverance has helped create a beautiful Welsh yogurt that people throughout Great Britain love eating!
The new plant is in operation, capable of a fully automated continuous blending and processing of 3000 l/h yogurt. The plans for the new plant come on the back of a successful growth in Village dairies fruit yogurt market. Village Dairy General Manager, Owain Roberts says: “We are very excited about our new plant and opportunities it brings to our business. With the new plant we have been able to achieve consistent and repeatable quality, exacting recipes, better controls and advanced data accumulation, improved efficiency and better yields with a much faster output rate. Gemak has delivered on every promise. We have visited Gemak at their new production plant and were very impressed with their quality, manufacturing, level of engineering and their experience in dairy processing. They also offered the quickest lead time and most competitive prices in the market.”
recipes can be entered consecutively at the start of the shift into the Scada system with the desired quantity and destination vessels for a non-stop processing shift with continuous recipe change-overs. With the touch of a button the system weighs and accurately feeds the necessary ingredients into a mix vessel, blends, dehydrates, homogenises, pasteurises, holds and cools before sending the recipes with desired quantities into preselected vessels for fermentation. The yogurt is than cooled to the desired temperature and fed to bespoke design ribbon blenders for fruit addition followed by very gentle, accurate and effective blending without impacting on the viscosity of yogurt. From here the yogurt is packed into tubs. Gemak also supplied 2 CIP units for raw and finished, raw milk reception unit and water chiller.
General view of mixing and pasteurisation.
Benefits
The new application removes a timely process of pre-mixing and preparing of the blends for the base prior to pasteurisation with a new in-line automated liquid and powder recipe blend process in-line with
Fully Automated
The fully automated processing plant incorporates a continuous inline yogurt mix preparation and pasteurisation system for different recipes. A number of 18
Fermentation room.
FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
the continuous pasteurisation. The benefits of the new system to Village Dairy are reduced labour with 60% reduction in energy use, 70% increase in processing speed, 60% improvement in process controls, monitoring and recording. Kursat Uysal from Gemak UK says: “Village dairy is very well known and admired for their superb yogurt quality that they developed and perfected over the last 30 years with a loyal customer base. I am also one of those customers so you can imagine the pressure. “We were given the task not only to design and commission a fully automated turnkey yogurt processing plant with improvements in all areas which we have a lot of experience and know how in but also to match/improve on the current product quality, taste and viscosity. We are very pleased to have lived up to our customer’s expectation and delivering on our promise. Gemak specialise in process solutions for the dairy industry and has manufactured and installed over 300 turnkey dairy plants around the world since 1986.” J
I SPRAY DRYING
European SprayDry Technologies Introduces ESDT15 Development and Small Scale Production Spray Dryer ehydrated food and powdered dairy products have seen their D markets grow for many years, with new and improved products appearing on our shelves daily. One common factor linking all products is the extensive development and testing they undergo. European SprayDry Technologies, based in the United Kingdom, has recently introduced an additional model to their highly successful pilot scale spray dryer range. The model ESDT15 is an innovative spray dryer designed specifically for product development and small scale production. The ESDT15 is harmonised to other models within the pilot scale range, being an all stainless steel appliance from feed tank to powder collection and only requires an electrical and compressed air supply to start production. The machines comes in food grade finish with 316 stainless steel wet contact surfaces and dry contact surfaces, support frame, access platforms, hand railing and ladders all 304 stainless steel as standard.
The model ESDT15 is an innovative spray dryer designed specifically for product development and smalll scale production. An upgraded version in pharmaceutical execution is also available to suit the higher standards of material, finish and documentation required by this manufacturing sector. Standard execution includes primary air/powder separation via cyclone with optional secondary containment reverse jet bag filters available for all model types. Other options include explosion venting and CIP cleaning nozzles. The unit includes a feed vessel, peristaltic feed pump and twofluid atomiser plus automatic clean-out needle, exclusively designed and manufactured for European SprayDry Technologies. Process air is drawn into the system and filtered through G4/EU4 pre filters and F8/EU8 main filters. Process air heating is provided by an electrical heater. Product discharge is achieved using a high efficiency cyclone to separate the product from the conveying air stream, with finished product collected in receptacles. A single fan is located on the units exhaust. Both exhaust fan and feed pump are supplied with variable speed control. The control system can be supplied as either Allen Bradley or Siemens PLC. Industrial Monitors
European SprayDry Technologies continue to utilise Hope Industries range of Industrial monitors with a 23� touchscreen as standard. The standard model is complete with temperature transmitters positioned on the inlet duct, chamber cone and exhaust duct and pressure transmitters on the atomiser air pressure and 20
ESDT 15 standard model for development and small production spray drying.
inlet air filter health monitor. The chamber is self-supporting with access provided to the profiled chamber door and roof mounted atomiser via access platforms, hand railing and vertical ladders. Upgrades are available for additional platform areas and stairs. This model ESDT15, like all models in the ESDT pilot scale spray dryer range, is supplied with a 12 month spare parts kit and a 12 month warranty as standard. First Installation
The first ESDT15 will be installed in the UK at the beginning of October 2016 with further orders secured for delivery to both UK and mainland Europe. The pilot scale range of spray dryers are a recent addition to the established ESDT equipment portfolio which includes large scale bespoke production spray drying plants. Evaporators, continuous vibratory fluid beds and agglomerators are available to compliment both the pilot scale and production scale spray drying range, for more information visit www.spraydryer.com or contact Gareth Hine, Director of Sales on 07740 175272. J
The first ESDT15 will be installed in the UK at the beginning of October 2016 with further orders seecured for delivery to both UK and mainland Europe.
FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
I FRUIT JUICE
Healthy Outlook For Squeezed EU Fruit Juice and Nectar Market Although EU fruit juice and nectar consumption fell again last year to 9.6 billion litres, the rate of decline is slowing and the market is expected to stabilise by 2021 at around 9.36 billion litres, as producers successfully promote the health and functional benefits of these drinks to consumers. U per capita consumption of fruit juice and nectar was 18.9 litres in 2015, with Germany still the largest market at 29.4 litres per head, according to the 2016 Liquid Fruit Market Report, prepared by Canadean for the AIJN (European Fruit Juice Association), the representative association
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Marjan Skotnicki-Hoogland, President of AIJN.
ence for premium fruit juice over standard variants. Although total EU consumption fell in 2015, certain segments of the market, such as 100% fruit juice, showed positive developments. Chilled juice consumption rose by 2% last year and the NFC (not from concentrate) segment was up by 4.4%. These premium juices are considered by consumers to be healthier and more natural than ambient and from concentrate juices. According to Canadean, consumers are willing to pay more of a premium price for products that are perceived as offering higher quality and/or a health benefit. Indeed, the growth in NFC and chilled juice in the EU reflects current consumer concerns regarding health awareness and wellness and a growing interest in ‘good for me’ and functional products.
the most popular flavour in EU markets, flavour mixes are now second. Flavour mixes offer consumers variety as well as perceived nutritional and functional benefits. Indeed, flavour mixes provide producers with an opportunity to expand their product ranges to meet consumer demands for innovation and functionality. By emphasising natural sourcing as well as the functional and health benefits of fruit juices and nectars, producers are starting to overcome the negative consumer perceptions, particularly around sugar content. The European fruit juice and nectars industry has in recent times suffered from negative media coverage highlighting the high natural sugar content of fruit juices and the implications for consumers in terms of obesity and tooth decay.
New Market Niches Producers willing to invest in product development and consumer insight will be in a position to successfully capitalise on new market niches. While orange remains
AIJN Juice Campaign To counter this unwarranted consumer perception, the AIJN has launched a panEuropean PR campaign to support the industry and to highlight the positive
of the fruit juice industry in the EU. Poland is the key driver of fruit juices and nectars in the eastern region of the EU but overall EU volume sales are being hit by the ongoing shift by consumers towards alternative beverages, which they perceived as healthier, in the key markets of Germany and France. Furthermore, profit margins for fruit juice and nectar producers are being undermined by high raw materials and logistics costs within a highly competitive EU soft drinks market, where consumers are still highly price sensitive. Producers are being forced to adapt to the changing lifestyles of consumers, as they abandon traditional mealtimes such as breakfast, once a core consumer occasion for fruit juice, in favour of on-the-go consumption. Premium Fruit Juices However, consumers are showing a prefer-
EU per capita consumption of fruit juice and nectar was 18.9 litres in 2015, according to the 2016 Liquid Fruit Market Report, prepared by Canadean for the AIJN.
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goodness of fruit juice, using scientific evidence and world-renowned scientists to speak on our behalf. Everyone in the value chain counts, irrespective of size,” says Marjan Skotnicki-Hoogland, President of AIJN. AIJN’s Juice Campaign is being run across at least 14 countries in its first phase. It is being funded by Citrus BR members from Brazil, representing a significant part of the world’s orange juice market, and bottlers in Europe along with additional contributors from the packaging industry.
The AIJN wants consumers to see fruit juice as a key part of a healthy diet and to understand the benefits which it brings.
aspects of fruit juice and the role it can play in a healthy lifestyle. The overall aim of the campaign is to change people’s behaviour regarding fruit juice. Founded in 1958, AIJN represents the industry from the fruit processors to the packers of the consumer products. The AIJN office is situated in the heart of the Brussels European quarter. The AIJN wants consumers to see fruit
juice as a key part of a healthy diet and to understand the benefits which it brings. By using credible science, the AIJN intends to accelerate positive media coverage and ultimately, to create solid foundations which will enable growth for the entire European fruit juice industry. “It is time for the industry to skilfully rebalance the conversation based on facts, making sure that everyone is aware of the
Under Threat “The fruit juice industry is under threat. Our natural product, 100% fruit juice, is becoming a scapegoat for the global obesity epidemic and consumption of excess sugar,” says Gaynor Ferrari, AIJN Campaign Director. “The positive messages and benefits of fruit juice are no longer being heard. Myths about fruit
juice are being propagated across Europe and blaming fruit juice over-consumption is an easy win for governments that may have their own targets for sugar reduction. Some countries have already taken fruit juice out of national five-a day guidelines, and others are considering this or a sugar tax on fruit juice later this year.”
• There is never any added sugar in 100% fruit juice. • Glycemic index levels of fruit juices are typically low and comparable to that of the fruit from which they are made. Gaynor Ferrari continues: “Our industry mission with this campaign is to regain the positive image of fruit juice and, of course, to ultimately give consumers a reason to buy 100% fruit juice. Our campaign hopes to rebalance the debate so that it is no longer one-sided. We want the positive health benefits of fruit juice to be heard once again, using science and evidence to back up what we say. This means talking to the people who influence the debate – scientists, health professionals, government and the media – before we speak directly to consumers.”
Fruit Juice Facts The AIJN’s Juice Campaign is based around five key facts about fruit juice: • Drinking fruit juice can help you increase your daily fruit and vegetable intake. • 100% fruit juice can contribute to a healthy diet, since it is a source of essential nutrients. • 100% fruit juice can help children become used to the taste of fruit and vegetables, which may lead to longterm positive health choices.
Way Forward According to Canadean, a way for the industry to compete with alternative beverages is by emphasising the natural, vitaminrich source of fruit juice with all its health benefits, while diversifying portfolios to include premium products. By developing premium products and new segments like coconut water and cold-pressed fruit juice, producers have the opportunity to move consumption occasions away from the traditional ones such as breakfast towards hydration, nutrition and indulgence moments.
Gaynor Ferrari, AIJN Campaign Director.
Sustainability “Sustainability is also a key topic, not only for us at AIJN but in the overall business sphere as well, with more companies understanding the need and benefits of sustainable practices,” points out Marjan Skotnicki-Hoogland. “At AIJN, we do this through our Juice CSR Platform, which has been active since 2013 and is a leader in this field.” She elaborates: “The Platform provides a neutral and collaborative environment, ensuring that CSR opportunities and challenges are dealt with together, focusing on hotspots in particular country/crop combinations. The growing number of Platform members ensures that these are tackled in a multi-stakeholder manner with involvement from representatives from the entire value chain – from farmers to NGOs.” 2016 Juice Summit AIJN, along with its partners IFU and SGF, is co-organising the fourth annual Juice Summit, which will be held at the Hilton Hotel in Antwerp, Belgium, from 12–13 October, 2016. The Juice Summit is the leading, annual conference for fruit juice executives from all over the world. It started in 2013, as a way to provide a genuine and dynamic forum for all industry players and their suppliers worldwide. The Juice Summit is organised by and for the industry, which makes it a unique experience in this field. The Juice Summit attracts global suppliers, bottlers and customers to what has become a must-attend conference. J
Global Juice Drink Consumption to Rise by 5% a Year lobal fruit juice and drink consumption exceeded 80 billion G litres in 2015, representing 10% of overall soft drink volume, according to a new report from specialist food and drink consultancy Zenith International. Sales were up 4% during the year, with growth in Africa, the Middle East, Asia Pacific and Latin America offsetting declines in the mature markets of North America and West Europe. The market is forecast to rise by an annual 5% over the next 5 years to 105 billion litres in 2020. “The juice drink market is becoming increasingly diverse, with future advances, particularly in North America and West Europe, dependent on innovative and original products,” comments Zenith Market Intelligence Director Esther Renfrew. “Manufacturers now recognise innovation is imperative in order to gain or maintain success.” The 2016 Zenith Report on Juice Innovation identifies 8 key areas of product development initiatives since 2014 – original flavours/ingredients, new textures, vegetable juices, cold-pressed juices, reduced/low/no sugar, functional offerings, premium positioning and child-oriented. “In recent years, the main new product development trends have involved new processing methods, refined product positioning and
ingredient emphasis on both flavour and function. Our 2016 Juice Innovation report serves as an ideal reference for any company seeking to create or expand a presence in the market,” Esther Renfrew concludes. Among other points highlighted in the Zenith report: • Fruit drinks are the leading segment, accounting for around 50% of consumption in 2015. • 100% juice consumption per person is highest in North America and West Europe, whereas Asia Pacific is the biggest market, amounting to 40% of global sales. J
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Tetra Pak Sees Growth Opportunities For 100% Juice The market for 100% juice should return to growth despite the global economic slowdown and the recent debate around sugar, according to Tetra Pak’s 100% Juice Index report.
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he combination of emerging growth hot-spots and slowing decline in established markets is stabilising 100% juice and bringing it back to growth going forward to 2018. Insights from the report show that 100% juice remains a significant part of the average consumer diet, with more than 40% of people drinking it every day. Furthermore, consumers say that they are willing to pay a premium for juices that they associate with healthy choices. These findings indicate great potential for 100% juice. Growth will come from products that meet consumer needs focused on health and out of home consumption, trends particularly strong with Millennials - the most influential generation of consumers yet. The industry has already responded with innovation in three key areas; vegetable nutrition, ‘all natural’, and speciality 100% juice. Vegetable Nutrition Vegetable blends, where vegetables and fruit are combined, lowering the natural sugar content and adding health benefits, are now the fourth most popular 100% juice flavour globally. New product launches using vegetables as an ingredient tripled in 2015 compared with 2012.
All Natural Over the last six years, not from concentrate (NFC) juice has gained market share compared with reconstituted products, rising from 25% in 2009 to almost 30% in 2015. New launches for products that make ‘all natural’ claims have seen a compound annual growth rate of 25% between 2012 and 2015 – especially those with no additives and/or preservatives. Speciality 100% Juice More than 60% of consumers globally say they are interested in products with proven health benefits. As well as adding vegetables into the mix, producers are increasingly offering ‘fortified with’ or ‘vitamin-enriched’ 100% juice. For example, in 2015 fortified 28
Orange juice in Tetra Brik® Aseptic carton with HeliCap™ 27.
products with functional health benefits in immunity, heart health, digestion, bone health, brain health and beauty made up two thirds of new product launches. Dennis Jönsson, President and CEO of Tetra Pak, comments: “It is good to see that brands globally are turning the challenges presented by changing lifestyles and the sugar debate into opportunities. They are driving growth in the 100% juice category with new products that capture the imagination of consumers, stretching beyond traditional fruit juices such as orange and apple, to a range of inventive vegetable blends, and new fruit flavours, creating endless possibilities for new recipes. As ever, the key to success is innovation, offering the right product at the right time to meet the modern consumers’ needs, and, just as importantly, capturing their attention and making a connection with them.” Emerging Markets The Tetra Pak report also highlights great potential for 100% juice in emerging markets, with remarkable growth already taking place in China and Brazil, and other hot-spots in countries such as Malaysia, India and Indonesia. Marjan Skotnicki-Hoogland, President of AIJN, says: “The launch of the 2016 Tetra Pak 100% Juice Index, a category report packed with global insights, is a great way to help the industry understand the opportunities available to them, and position juice as part of a healthy and nutritious diet.” The Tetra Pak 100% Juice Index report is based on market insights through the company’s partnership with customers around the globe, as well as recent research findings from 7,000 consumers in seven countries. More information on 100% juice and the full report can be found at www.tetrapak.com/juiceindex. J
FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
I BEVERAGE CONCEPTS
Code of Nature® Meets Provenance onsumers around the world love the taste of nature. Consequently, naturalness is generally popular, both in C mature and emerging markets. Symrise has always followed this trend closely and has conducted an extensive naturalness study. It then consolidated its resulting expertise into its strategic platform CODE OF NATURE® and developed beverage concepts that are attractively based on naturalness. Within its study, Symrise has analyzed naturalness from many different perspectives: consumer needs, expert knowledge, cutting-edge technologies, application areas etc. The Next Dimension One of the key dimensions of naturalness, Symrise has discovered, is Provenance, local sourcing and variants (of fruits, spices and herbs). Here it has identified strong consumer interest. Food and beverages containing ingredients with local and regional origins or fruit variants (such as Antonowka apple) are growing ever more popular. This development is based on many reasons: 1. The Next Level of Conscious Consumption Consumers driven by conscious consumption are interested in short transportation routes, regional production, better taste and, for sure, high quality. Further, they want to be able to track the promise of “naturalness”. Being able to do so supports trust in the product. It also reassures consumers that the industry is treating its sources and resources responsibly. 2. A Welcome Variety to Mainstream Consumers who are looking for a broader variety than offered by mainstream products seek out new or unknown tastes combined with high quality. They expect an orange from Spain to have a different taste profile than an orange from Florida. For fulfilling these needs, fruit and spice varieties play a major role, as does the diversity of taste. Provenance Concepts To create Provenance-based concepts Symrise wanted to first understand which key ingredients consumers associate with which
countries of origin. These were the key questions Symrise asked: What are the key ingredients (fruits, spices, herbs) consumers allocate to their own country? Or which ingredients do they link to other regions in the world? Symrise’s latest representative survey covers exactly these questions. Cornelia Weiblen, Marketing Director Beverages EAME, states: “Based on our representative survey, we have gained insights from consumers from eleven countries around the world, covering more than 30 ingredients and their perceived country of origin. We have also gained extensive knowledge about those eleven countries and their native fruits, spices and herbs. This allows us to create concepts based on consumer perceptions regarding a specific ingredient’s origin.” Knowing the different associations of consumers in various countries towards (the same) ingredients, Symrise can also help creating a country or regional beverage range that meets the expectations of consumers in terms of local ingredients. For example, if you ask a Brazilian where to locate an orange, they might give a different answer than an Egyptian. Symrise explores key flavor tonalities even more in detail. For example, it offers a variety of mango flavors from Asia, covering various tastes from Alphonso to Totapuri. Symrise has developed these flavors in collaboration with its team from Asia and additionally verified them with local consumers. Regional varieties are also available for apples – including European and Russian apple types – ranging from Antonovka to Topaz. All those flavor varieties are available as natural versions. Symrise uses only the best natural ingredients – directly derived from the fruit or botanical ingredient that gives the flavor its name. They all belong to the umbrella brand CODE OF NATURE® where Symrise has combined its expertise in botanical processing and applied all traditional and unique novel separation technologies along with its decades of experience in selecting only the finest natural raw materials. Code of Nature® – It stands out. Naturally. J
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Juice Preservation Technologies and the Latest Trends By Katarina Ternstrom rowing consumer demand for products that are natural, healthy G and environmentally friendly is driving interest in new preservation technologies that can deliver these attributes, while also lowering the impact on the environment and reducing production costs. Here’s a quick guide to some of the technologies in thermal and non-thermal preservation technologies, for a more detailed factsheet visit tetrapak.com/juiceindex. Preservation Options
As we all know, food preservation techniques are designed to kill microorganisms, or restrict or prevent their growth and it is important to have the confidence of a long proven track record of delivering food safety at a commercial level.
When using thermal preservation technologies, the temperature itself is used to secure microbial deactivation and therefore ensure food safety. At Tetra Pak, we recently introduced a new approach to pasteurization that reduces the temperature of the second step,
of the two-stage process from 95°C to 80°C, without compromising the safety of the juice produced. The result is an energy saving of up to 20%. Other options are Ohmic heating which uses an electrical current and is a rapid preservation method; and Microwave heating uses electromagnetic waves of certain frequencies. Non-thermal preservation can only achieve commercial sterility with water products, unless the process is combined with heat. High Pressure Processing is a preservation technology that requires a pressure of 300-1000 MPa to inactivate microorganisms. Ultraviolet light (UV-C) treatment is commercially used for disinfection of water and it is possible to use for clear juices; and Pulsed Electric Field (PEF) is a process based on short electric pulses at high intensity. Clearly it’s important that the preservation process parameters used ensure microbial deactivation and are well proven and established. Equally, ensuring that long-standing technologies are not standing still in this area. We continuously test current and new technologies and research trends, always looking for the best options for our customers that can apply the highest standards of food safety. Preservation technology is at the heart of processing, and is essential for ensuring safe and nutritious products, which is even more important today as health and wellness becomes an increasing focus. J
Doehler – ‘We Bring Ideas to Life’ ll successful products have the same A foundation: an exceptional idea! With a staff of over 500 in Research & Development, Doehler is an important driver of innovation in the food and beverage industry. The company is a leading producer, marketer and provider of technologydriven natural ingredients, ingredient systems and integrated solutions for the food and beverage industries. “WE BRING IDEAS TO LIFE.” briefly describes Doehler’s holistic and strategic approach to innovation. This comprises market intelligence, trend monitoring, the development of innovative products and product applications,
advice on food safety and microbiology, food law as well as Sensory & Consumer Science. Multi-Sensory Experiences®: Doehler's guiding principle throughout the entire value chain!
The driving force behind every one of Doehler's product developments is a passion for making “the best of nature” even better and creating extraordinary multisensory product experiences. Doehler maintains this multi-sensory approach throughout the entire supply chain, from growing high-quality raw materials in a sustainable way to processing them using cutting-edge technologies and developing customised natural ingredient solutions, tailored to the product applications of individual customers. Natural Ingredients & Customised Solutions
In addition to a broad portfolio of highquality fruit & vegetable ingredients such as NFC juices, purees, juice concentrates, cells and pieces, Doehler offers a comprehensive portfolio of natural ingredients 30
FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
consisting of: natural flavours, natural colours, health & nutrition ingredients, cereal ingredients, dairy & dairy-free ingredients, speciality ingredients, dry ingredients and ingredient systems. As Doehler has been focussed since its foundation on food & beverages, the company knows the exact specific technological requirements of each application. Doehler delivers ingredients tailored to the product application and assists customers throughout the subsequent phases of conceptualisation and implementation: from customer-specific product range considerations to analyzing potential, right through to technological questions. For further information visit www. doehler.com. J
I READY MEALS
Demand For Convenience Drives UK Sales in Ready Meals he UK ready meals market is continuing its recovery from ‘horsegate’, one of the biggest food scandals in British history, according to business intelligence provider Key Note. Following the revelation, market value plummeted but the industry has bounced back with growth returning to the marketplace, in particular in the sectors most damaged, such as frozen ready meals. Much of this growth is attributable to the heightening climate for convenience; driven by accelerating lifestyles it has been key to growth as consumers increasingly prioritise quick and easy meal solutions, or, in other words, ready meals. The industry has neatly harnessed this phenomenon, exploiting the peaked interest across all levels of the industry to give rise to a diverse and bustling marketplace.
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Health-conscious An increasingly health-conscious consumer base continues to shape the industry, as the episodic nature of concern isolates new areas of interest in waves from year to year. In recent times, two contemporary issues have emerged — processed meat and sugar. Concern regarding processed food has increasingly pervaded food industries over past years; however now the focus has turned more explicitly to processed meats. Moreover, this concern is set to proliferate in line with a recent publication by the World Health Organization (WHO), which appears to confirm fears, directly implicating processed and red meats as primary causes of cancer and heart disease, two of the most prominent killers in the UK.
innovation will be of equal importance, as new product development (NPD) is imperative to truly unlock this extensive potential. Ultimately, growth will be determined by ongoing polarisation, diversification and premiumisation, and the ability of these forces in exploiting developing market conditions. Key Note forecasts market value growth of 15.7% between 2015 and 2019. J
The development of this market force is forecast to open some interesting new areas for growth in ready meals in line with changing eating habits. Similarly, sugar concern has exploded with increased exposure, driven by mounting political pressure in line with the worsening obesity epidemic. Retailers have internalised this angst, exploiting the market force through a plethora of ranges stressing the nutritional qualities of their meals and the controlled levels of sugar, fat and salt in products, as the industry assimilates to changing consumer behaviour. Continued Growth Overall, Key Note expects the UK ready meals market to continue to rise in value year-on-year. Much of this will be down to ready meals’ inherent satisfaction of the convenience criteria; however, FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
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I PROCESSING & PACKAGING
PACK EXPO International – The Main Event For Processing and Packaging Innovations in 2016 ith more than 2,000 exhibiting comW panies occupying over 1.1 million sq ft, PACK EXPO International is believed to be the world’s largest, most comprehensive processing and packaging trade show in
2016. Held from November 6th to 9th at McCormick Place, Chicago in the USA, the event will attract over 45,000 visitors, including about 7,000 international buyers from more than 130 countries. The immense show floor is packed with full-scale machinery in action and neverbefore-seen technology, offering solutions for more than 40 vertical markets, includ-
ing all types of CPGs - all under one roof. PACK EXPO International also incorporates free educational opportunities that include the Innovation Stage, the Food Safety Summit Resource Center and Reusable Packaging Learning Center as well as exhibitors’ in-booth offerings. There are also Pavilions dedicated to containers & materials, confectionery, processing and reusable packaging. The show floor buzzes with machinery in action, interactive learning hubs and networking lounges. More than any other event in North America, PACK EXPO International offers attendees the chance to see technologies in motion, meet with packaging suppliers, explore technology for their industry and get ideas from other markets, including: • Baking & Snacks
• • • • • • • • • • • • • •
Beverages Chemical & Industrial Confectionery Container Manufacturing Dairy Electronics Fresh Produce Fruit & Vegetables Grain, Mill, Cereal Household Products Meat, Poultry, Seafood Personal Care Pharmaceutical & Medical Devices Prepared Foods. The Innovation Stage presents free, 30minute seminars all day, every day while the show floor is open. These supplier-led presentations introduce visitors to exciting technologies and techniques. The Food Safety Summit Resource Center offers free presentations, information and one-on-one consultations with experts, addressing critical food safety issues and compliance. J
Avoid Product Recalls With Code Assurance and Packaging Verification From AutoCoding Systems – Booth E-10114 AutoCoding Systems Ltd, spepackaging will always be corcialist in packaging line rect. Data relating to your automation, will be demonstratproducts, customers and packing their world class code assuraging line devices are stored in ance and packaging verification a central database. At the start solution at this year’s Pack Expo of a production run, all releexhibition. vant information is securely Visitors to the AutoCoding deployed to the line devices stand, E-10114, will be shown with minimal human intervenhow to avoid the risk of product tion. Packaging lines are autorecalls due to mislabelling or matically set up reliably and incorrect coding. The Autoquickly, job changeover times Coding system sets up and conare reduced and the risk of trols packaging line devices, human error is negligible. including coding and labelling Visitors will also be able to equipment, barcode scanners, see the latest version of the checkweighing and metal detecLoma TRACS Reporting Tool tion equipment, irrespective of AutoCoding automatically sets up and controls coding and scanning equipment. which monitors the performanufacturer. mance of Loma/Lock checkIncorrectly coded, labelled or packaged goods can result in not only seriweighers and metal detectors. Information relating to contaminant detection ous health risks, but severe financial losses, product and packaging waste, as rates, weight and overfill data can be accessed, enabling inefficiencies to be well as the less tangible damage it may cause to a company’s reputation. identified quickly and appropriate action to be taken. For further information With an AutoCoding solution you can be sure your coding, labelling and visit www.autocodingsystems.com.
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FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
I PACKAGING INNOVATION
Stellar Turnout at London’s Only Packaging Exhibition his year’s Packaging Innovations and T Luxury Packaging London had it all, with speakers from the House of Commons to the Los Angeles packaging design community, visitors from the world’s leading brands and retailers, and exhibitors launching everything from innovative new packaging products to brand new packaging companies. With visitor numbers up it really was a case of quality and quantity. Visitors to the show included Lucozade & Ribena Suntory, Harrods, Dairy Crest, Burberry, Adidas, Avon, and Chanel, with many exhibiting and visiting brands booking stands live on the showfloor, resulting in an 84% uptake for next year’s show.
The exclusive two-day event, which took place at London Olympia, on 14 & 15 September 2016, opened with a keynote session by Mark Pawsey, MP and Chair of the All Party Parliamentary Packaging Manufacturing Group, who commented: “The UK packaging manufacturing industry has a turnover of £11 billion, generating 85,000 jobs, which is 3 per cent of the UK’s total manufacturing workforce. This shows just how important the role of packaging is within the UK, it does not get the credit it deserves, so I am here to stand up and say well done.” He added: “Looking around it’s clear to see just how fantastic the level of innovation on show is. We have innovative products, high end and high quality offerings, which to me shows the industry to be in great health. One of the greatest challenges the packaging industry faces is turning these ideas into mass-market products. This show is a fantastic shop window into 34
the future of packaging, but we must ensure these innovations go on to change the way we work.” Meanwhile, the first ever UK edition of The Dieline Conference explored a mixture of packaging and branding topics, from major names including Coca-Cola, The Hershey Company, Wagamama and Elmwood, all presenting the very latest cutting-edge subjects currently challenging the world of design. Conference Programme The highly rated two-day conference programme, included speakers from Britvic, Young’s Seafood, Neil Farmer Associates, Iggesund and Milroy’s of Soho. With innovation at the heart of the show, it was no wonder that The Great Innovation Debate was packed out. Chaired by Stefan Casey, Business Innovation Manager at The Retail Institute, commented on the debate: “Once again sustainability has come across as a big part of innovation, as consumers are looking for simplicity in design combined with honesty. They want to know where their products are coming from – are they ethically made and environmentally friendly – as a result brands are trying close loop recycling, and by applying cir-
FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
cular economy principles from the onset to product design and packaging, it’s driving brands to be more innovative giving them a competitive edge.” Back by popular demand was The Drinks Report, which saw Catherine Monahan, Founder and CEO of Daemon and Genius, look at creating an emotional link between the consumer and the product. She said: “We mustn’t fit in; we must stand out! Have you done your homework? Has your brand got integrity? Can you stand up and shout about your product? If the answer is no, then you are doing something wrong. We must take our ‘tribe’ on a journey, and to do this we must fully understand what we want to achieve first.” New Products As well as a show stopping line up of speakers, more than 170 exhibitors presented their latest products and services with over 100 new product launches. New products to market included Swedbrand’s next generation technology of bag-in-box wine, called Topflow; Segura’s latest cloudbased software and KTEC Group’s new LX500e Color Label Printer. The next Packaging Innovations show will take place on 1 & 2 March 2017 at the NEC, Birmingham. For anyone interested in exhibiting, more information can be found at www.easyfairs.com/PIUK or via the Packaging Innovations team on 020 8843 8800. J
I INTERNATIONAL FOCUS
Challenging Times For Leading Nordic Food and Beverage Groups The Nordic region is home to some of Europe’s largest food and beverage companies, particularly within the dairy, meat, brewing, seafood and bakery sectors. enmark-based Arla Foods is the Nordic region’s biggest food and beverage group and is also the world’s seventh largest dairy company, measured by turnover. Danish Crown, also headquartered in Denmark, is the world’s leading exporter of pork and Denmark’s biggest cattle slaughterhouse business. Carlsberg Group is Europe’s second largest brewer, behind Heineken, and ranks fourth globally. Marine Harvest is one of the top seafood companies in the world, and the world’s largest producer of Atlantic salmon. Lantmannen Unibake is one of Europe’s leading bakery groups with expertise in both frozen and fresh products. Operating 35 bakeries in 21 countries, Lantmannen Unibake is owned by Swedish farmers through the Lantmannen Group. Indeed, many of the major food and beverage processors in the Nordic region have developed strong international businesses. The biggest Nordic food and beverage groups are listed in the Table.
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adversely affected by the Russian trade embargo. Carlsberg Group is also encountering difficult trading conditions in its main markets in Eastern Europe, particularly Russia. Valio, which is Finland’s largest dairy processor, is trading in similarly challenging conditions. The dairy co-operative collects and processes about 85% of all the raw milk produced in Finland. The company has established subsidiaries in Russia, Sweden, Estonia, Latvia, Lithuania, the USA and China. Indeed, Valio is the biggest food exporter in Finland. However, Russia was the company’s biggest export market.
Capital Investment Projects Like their counterparts elsewhere in Europe, the biggest dairy companies in the Nordic region have been preparing for the Declining Exports post-quota era by investing heavily in new However, the major Nordic food and drink processing capacity and technology to hanprocessors are facing intensifying competi- dle the anticipated increase in milk production in their domestic and regional retail tion from dairy farmers. For example, Arla markets, which is putting pressure on Foods has reinforced its position as a global prices, at a time of declining export sales leader in natural whey ingredients with the due to the Russian trade embargo and a recent opening of a new Eur40 million slowdown in some emerging markets, such facility at Nr. Vium in Denmark for the as China. production of dairy protein hydrolysates, For example, Danish Crown has been which are used to create ingredient solutions for applications in the infant, clinical and sports nutriTop Food and Beverage Companies in tion categories. Having already invested heavithe Nordic Region ly in its manufacturing based and supply chain in recent years, Company Sector Head Quarters TINE, which is Norway’s Arla Foods Dairy Denmark Danish Crown Meat Denmark biggest producer and exporter of Carlsberg Beverages Denmark dairy products, is planning a new Valio Dairy Finland Eur90 million dairy in Bergen. HKScan Meat Finland In the meat sector, HKScan is Marine Harvest Seafood Norway building a new poultry plant at Leroy Seafood Norway Rauma in Finland. Valued at Lantmannen Unibake Bakery Denmark Eur80 million and scheduled for Orkla Foods Consumer Foods Norway completion at the end of 2017, Familjen Dafgard Meat Sweden the project is one of the largest production investments in FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
TINE, which is Norway’s biggest producer and exporter of dairy products, is planning a new Eur90 million dairy in Bergen.
HKScan’s history. HKScan produces pork, beef, poultry and lamb products, processed meats and convenience foods under strong brand names. Its home markets are Finland, Sweden, Denmark and the Baltics, but the group also exports to close to 50 countries. FoodTech – November 1-3 – Herning, Denmark The Nordic region’s and Northern Europe’s leading trade fair for food technology, FoodTech, will take place from 1-3 November 2016 in MCH Messecenter at Herning in Denmark. The last time the event was held, in 2014, FoodTech was visited by more than 8,000 highly qualified decision makers. FoodTech 2016 incorporates a wide activities program including: • EHEDG World Congress on Hygienic Engineering and Design, 2-3 November 2016 • FoodTech Challenge • International DAIRY Contest • International FOOD Contest • Conferences and seminars • Demonstration of production lines for small and medium-sized companies • FoodTech Award. J 35
I POULTRY
2 Sisters Food Group to Create World’s Most Advanced Poultry Processing Plant 2 Sisters Food Group, the UK’s largest grocery market supplier and one of the leading privately owned food groups in the UK and Europe, is investing £45 million to upgrade its site at Scunthorpe to create the world’s most advanced poultry processing plant. he investment will introduce new robotic cells to create a fully automated process that will increase the capacity of the site by a third to 2.4 million birds a week. The investment will future-proof the Scunthorpe operation, securing over 1600 jobs at the site, as well as improving animal welfare, quality and presentation of the finished product. The upgrade is a critical part of the £150 million poultry investment programme “that will completely revolutionise our supply chain end-to-end,” says Ranjit Singh Boparan, founder and chief executive of 2 Sisters Food Group. “We are aiming to further align our poultry business with the needs of our customers, creating world class facilities utilising state-of-the-art technology, and driving efficiency.” The £150 million investment programme was launched at the end of 2015 and is being phased over three years, to create a worldclass and industry leading estate for poultry manufacturing. The improvements in animal welfare that are part of this investment come on top of a £10 million programme to reduce campylobacter levels in poultry, which have been praised by the Food Standards Agency and have won the approval of major customers.
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biggest facility of its kind in Europe at over 800,000 square feet and processing 900,000 birds per week for fresh, frozen and value added categories. Feed mills, hatcheries and farms were constructed at the same time as the factory to ensure an extensive local agricultural base was in place in close proximity to the factory to keep animal trans- 2 Sisters Food Group is investing £45 million to portation to a mini- upgrade its site at Scunthorpe to create the world’s mum and to optimise most advanced poultry processing plant. bio-security. Today the site processes 1.8 million birds per week for a number of major retailers.
consumed in the UK and also supplies to continental Europe.
Protein Division 2 Sisters Food Group produces around a third of all the poultry products consumed in the UK and also supplies to continental Europe. In addition to poultry, 2 Sisters Food Group’s Protein division also incorporates red meat operations. With sales of £2.209 billion last year, the Protein division is the anchor of 2 Sisters Food Group’s business. 2 Sisters Food Group’s other two divisions are Chilled and Branded. The Chilled division generated sales of £596.5 million in 2015. The Branded division, which encompasses Fox’s biscuits, Goodfella’s pizzas, Donegal Catch fish, Green Isle vegetables, McDougalls and Holland’s pies, and Matthew Walker puddings, achieved sales of £391.8 million last year.
World Class Facility The investment at Scunthorpe is the largest since the site was built in 1988. “The project has taken many months of planning and our goal has always been to build a truly world class facility, using the very latest technology to ensure the highest standards of animal welfare, bio security and product quality for our customers,” says Dan Whillock, general manager of 2 Sisters Scunthorpe. The Scunthorpe site opened in 1988 and at the time was the
£55 Million Investment in Meal Solutions 2 Sisters Food Group’s investment plans also include a £55 million development programme for
2 Sisters Food Group produces around a third of all the poultry products
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‘Chilled Ready Meals’ sector is growing at roughly 3% per annum, and our chilled division is outpacing that growth. It will also create significant opportunities to improve the way we operate as a business whilst also helping to safeguard and potentially create jobs in all our factories.” The investments in 2 Sisters Food Group’s poultry and chilled ready meals operations are in addition to a recent £4 million investment to increase frozen pizza capacity.
Ranjit Singh Boparan, founder and chief executive of 2 Sisters Food Group.
its Meal Solutions operations, which will create further capacity across all four sites and put the company at the forefront of developing the next generation of ready meals. The Meal Solutions business produces a range of products including ready meals, soups and sauces. It is wholly focused on own-label products, and predominantly produces ready meals and soups and sauces for Marks & Spencer out of four factories Pennine Foods in Sheffield, Rogerstone in South Wales, Carlisle and Grimsby. The majority of the investment will be used to completely rebuild Pennine Foods, with the remainder being allocated to refurbish and expand capacity at both Rogerstone and Carlisle. Continual Investment Pennine is a purpose-built site, originally established in 1986, which has now reached full capacity. A £38 million rebuild will develop best in class commercial and operational processes to support continued innovation, expand capacity and drive further profitability. The strengthened operational platform will enable 2 Sisters Food Group to continue to grow its position as the market leader in ready meals production in the UK. To avoid disruption for customers, work at Pennine Foods is being phased with some capacity transferring to both Rogerstone and Carlisle. The transferred capacity will remain at those sites creating the opportunity for new ranges to be produced at Pennine Foods once work is completed at the end of 2017. The refurbishment programme will help safeguard up to over 800 jobs at Pennine Foods. The planned investment is designed to provide sufficient capacity to support continued innovation and drive further profitability. Simon Wookey, divisional managing director at 2 Sisters Food Group, comments: “Our investment in the Ready Meal Chilled Division is fully supported and welcomed by our customers. We continue to see an opportunity to drive further market share growth in the ready meal sector supported by a new state-of-the-art factory in Sheffield.”
Acquisition of Bernard Matthews Meanwhile, Ranjit Singh Boparan has just bought Bernard Matthews, the UK’s leading turkey producer and the country’s largest poultry brand, out of administration in a pre-pack deal. Bernard Matthews has been struggling for some time. The company reported losses of approximately £8.5 million in 2013/2014 and for the year ended 28 June 2015 pre-tax losses were £3.7 million as turnover declined from £306.8 million to £276.7 million. Bernard Matthews recently sold its German subsidiary, Bernard Matthews Oldenburg (BMO), to Union Holdings & Co, with the proceeds being used to reduce Bernard Matthews’ group debt by Eur14 million. Owner Rutland Partners, the specialist turnaround and restructuring investor, subsequently appointed Price Waterhouse Coopers (PWC) to look at possible buyers for the turkey producer. Rutland Partners first invested in Bernard Matthews alongside the existing family interests in 2013.
Ranjit Singh Boparan has just bought Bernard Matthews, the UK’s leading turkey producer and the country’s largest poultry brand, out of administration in a pre-pack deal.
However, on the 20 September 2016, Deloitte was appointed as administrator of Bernard Matthews along with certain subsidiaries. The subsequent prepack sale to Ranjit Singh Boparan is expected to safeguard all 2,000 jobs at Bernard Matthews. “This famous 65-year old brand had been operating in a challenging market for some time,” points out Dan Butters, who is handling the administration at Deloitte. “We are pleased that all the jobs have been preserved, and the company can make a fresh start with new owners.”
2 Sisters Food Group’s investment plans include a
Chilled Ready Meals Sector Simon Wookey adds: “On average the
£55 million development programme for its Meal Solutions operations.
Transformational Deals Having established 2 Sisters Food Group in 1993, Ranjit Singh Boparan has developed the business from a small scale frozen retail cutting operation into an international, diversified food group through a combination of organic growth and acquisitions. 2 Sisters Food Group has increased dramatically in both scale and diversity over the past five years with the completion of three transformational purchases - Northern Foods, Brooks Avana and VION’s UK poultry and red meat business. In early 2011, 2 Sisters Food Group suc-
FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
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sify its portfolio. Brookes Avana supplied chilled convenience products, including ready meals, accompaniments, chilled pizza and pies, while Avana was one of the UK’s leading suppliers of high quality bakery, cake and dessert products. The purchase of VION’s loss making UK red meat and poultry business in 2013 for an undisclosed price marked 2 Sisters’ entry into the red meat sector allowing it to serve even more meal occasions. With annual sales of about £1 billion (60% in red meat and 40% in poultry) the VION acquisition added capacity in poultry to 2 Sisters Food Group to accommodate future growth. 2 Sisters Food Group first entered the turkey market in April 2016 with the purchase of Irish business Grove Farms. J The purchase of VION’s loss making UK red meat and poultry business in 2013 for an undisclosed price marked 2 Sisters’ entry into the red meat sector.
cessfully 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. In late 2011, 2 Sisters Food Group purchased Premier Foods’ loss-making Brookes Avana business, comprising RF Brookes chilled foods and Avana Bakeries, for £30 million to further diver-
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2 Sisters Food Group has developed from a small scale frozen retail cutting operation into an international, diversified food group.
FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
I POULTRY
GT2e Brings Speed and Flexibility to New Lines eat sealing specialists Proseal has played a key supporting role in H the development of the new production facilities at 2 Sisters’ Scunthorpe factory. The ambitious cutting and retail packing project is able to deliver 1.2 million birds per week, and it is therefore vital that every part of the line can deal with this high throughput. Proseal’s involvement has seen the company supply 12 of its latest automatic, large capacity, high-speed GT2e inline tray sealers with free flow gas flushing for MAP (Modified Atmosphere Packaging) packs. Designed to accept randomly spaced trays from any conveyor and able to be fully integrated with other line equipment, the GT2e features Proseal’s pioneering and innovative Eseal® technology. High Performance This high performance, high precision electric seal system delivers an increased seal force of 600% while reducing compressed air usage by 92%. This enables manufacturers to achieve the high quality seal reliability demanded of the retail sector while at the same time achieving valuable cost savings and sustainability benefits.
conveyor belts, and an auto-lock film reel holder. A user-friendly menu-driven control panel provides step-by-step prompts for easy operation. Equally important, the GT2e has the flexibility to perform any style of heat seal to a pre-formed tray, including atmospheric, MAP, VMAP, Skin, Skin Plus and Skin Deep. Customers can simply select the format types they require and these can be added to or taken off at any time. This allows food manufacturers to change their pack formats in line with customer demands without having to invest in new equipment. Capable of up to 14 cycles per minute for gas flushing, the GT2e has the speed, flexibility and reliability to meet the requirements of 2 Sisters’ new world-class facility. J
Another unique feature is the machine’s Pro-Motion high accuracy tray infeed system, which uses following motion and intelligent buffering technology to enable trays to feed continuously into the sealer without stopping. An auto-detect product flow monitoring system regulates the speed of the infeed conveyor according the amount of trays being supplied. This typically increases speeds by up to 30%. Rugged Construction Like all Proseal equipment, the GT2e offers a rugged construction to food industry approved hygiene standards with full wash-down protection. The company’s established ‘Auto Tool’ connection system enables tool changes to be carried out in around five minutes, while downtime is further minimised by the use of quick-change FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
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I SLICING & DICING
New Weber Slicer Launched eber launched a new addition to its W range of slicers at the recent IFFA 2016 event, the shop window for developments in the global meat industry. The S6 offers high performance in a compact design which makes it ideally suited to applications where space is limited. Despite a machine width of only 1,300mm, the S6 offers an extra-wide slicing throat which can accommodate products up to 500mm wide. This capacity, plus many of the integrated features within the S6, had previously only been available on machines requiring a much larger area in which to operate. It features Weber’s involute blade, a durable and precise blade technology, which is produced at Weber’s own in-house blade facility. It can operate with all Weber blade sizes, from the R365 through to the largest R515. The open design of the S6 utilises some of the design principles of the already high-
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ly successful 906 series to ensure excellent visibility along with fast cleaning and optimised changeover times. Combined with its compact footprint, this makes it a flexible and highly efficient solution for many applications. Ease of operation and maximised machine uptime is ensured through a quick-change system, requiring no tools,
FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
for the blade, the shear bar and the gripper head. The new, fast in-line loading system optimises loading times and ensures secure transport of the product. Weber slicers start with the entry level 305 a highly flexible and cost effective machine in a small footprint. At the top of the range of slicers from Weber is the 905 having a slicing throat capable of cutting up to 620mm wide. Also new from Weber are two new Compact Loaders – the CCA-400 and the CCA-500 - both incorporating Weber’s high speed in-feeding technology. Like the S6, the design is based on a compact footprint, with a modular approach to ensure the loaders are fully adaptable to meet a wide range of applications. Again, easy access and optimum hygiene are ensured through an open design for the two models which operate with packaging machine film widths of up to 590mm. J
I SLICING & DICING
New GEA DualSlicer 1850 Improves Performance and Productivity EA has launched a new version of its recently introduced G DualSlicer, but with an extended machine length: the DualSlicer 1850. The DualSlicer 1850 is a high performance, three-stage, twindrive, portioning conveyor modified with a cross directional drive for the creation of special portion types, e.g. cross-shingle, zig-zagshingle, etc. It is also available with an interleaver, two-lane up to four-lane, which enables film rolls to be changed without stopping the machine. The GEA DualSlicer 1850 can consecutively slice two or four calibrated logs, such as round sausage, or two uncalibrated logs of (Emmental-type) cheese, cooked ham or raw ham. Mechanically similar to the very high capacity GEA MegaSlicer, it delivers consistent slice quality from GEA’s patented idle-cut rotor technology, which has been further developed to ensure constant slice thicknesses, even with softer products. An adjustable rotor head, and the newly-developed involute R470 blade, guarantees smooth cutting and optimum cutting results. Automatic product loading from the rear is fast, reliable and protects the product. Low Give-away, High Product Utilization and More On-weight Portions
The slicer benefits from having independent drives for each of its two grippers and an adjustable rotor head that work in combination with a new three-stage-portioning conveyor. This configuration adjusts slice thickness on the fly, and results in fewer
Short loading times and high output mean that the GEA DualSlicer 1850 is easily integrated into fullly automated lines.
Cheese slicing with the GEA DualSlicer 1850.
idle cuts. The independent drives lead to high product utilization thanks to very low give-away and a high rate of on-weight portions, mainly in combination with the GEA OptiScan system, where two logs will be simultaneously scanned via x-ray technology. Hygienic design is in accordance to USDA guidelines, and provides excellent access from all sides. Sloped surfaces ensure that water drains off easily during cleaning, belts and conveyors are easily dismounted, electrical and pneumatic units are separated from the food area, and optimum access is provided to the entire product contact area for inspection and cleaning procedures. New Interleaver For High Performance Slicing and Easy Operation
The new interleaver is designed to meet the growing demand for higher speed, easy operation, reliability and ease of maintenance. It enables film rolls to be changed and jams to be cleared without stopping the slicer. The GEA petented shear edge design allows blade speeds of up to 1000 rpm with a stable paper shoot-out. Optimized For In-line Integration
Short loading times and high output mean that the GEA DualSlicer 1850 is easily integrated into fully automated lines. It is optimized for working in combination with a GEA ShingleLoader, GEA Check 4000, GEA OptiScan (which analyzes the density and cross-sectional area of natural products), and GEA PowerPak thermoformers. J
GEA DualSlicer 1850.
The GEA DualSlicer 1850 can consecutively slice two or four calibrated logs, such as round sausage, or two uncalibrated logs of (Emmental-type) cheese, cooked ham or raw ham. FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
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I PROTEIN
FFP’s Second Ovenable Packaging Seminar FP’s second high-temperature packaging F seminar brought together delegates from major retailers and food producers across every protein category. Ovenable packaging has grown in scale and scope – on the back of the massive expansion in roast-in-bag whole chicken, oven bag versions of fish, pork, beef and lamb dishes have been launched, and new products, formats and opportunities are developing all over Europe and the world. Speakers included Dr Mark Dawes of DuPont Teijin Films, who took delegates through some of the science of polyester films, and Dr Alistair Irvine of Smithers Pira who discussed the all-important topic of food contact testing and compliance. Craig Jameson, FFP’s Technical Director, explained an integrated approach to product launch and on-going supply, with a focus on efficiency savings through a formal audit process. On a linked subject, Simon
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Delegates were treated to a range of top quality roast-in-bag recipes.
Millar of Ulma Packaging Machinery gave delegates an insight into packaging line styles and best practice. Gary Tee of FFP shared FFP’s insights and vision of the future of ovenable packaging. Finally, Development Chef David King of King Innovations showed delegates just what mouthwatering results can be achieved
FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
using roast-in-bag. Dishes included a Greek-style rustique pork afelia, a classic Italian porchetta and a delicious bourbon glazed gammon roast, all cooked in ovenable packaging. FFP Packaging Solutions is a leading flexible packaging manufacturer, supplying award-winning, innovative printed and plain films and laminates across a wide range of convenience food categories. Specialities include Estercook, market-leading ovenable, Roast-In-The-Bag packaging that has transformed sales across a wide range of protein categories and is a significant tool in the fight against campylobacter food poisoning in chicken. Esterpeel has, for thirty years, been a benchmark in technical excellence in the heatseal lidding area. FFP’s print and lamination is fully colourmanaged, and the company is recognised across Europe for its excellent print quality. For further information www.ffppkg.co.uk. J
I VALUE ADDED TAX
To VAT or Not to VAT? By Ciaran Hurley of CKH Fiscal Services n Ireland, there are four different rates of Iproducts. VAT that may apply to food and drink The three most important are Zero rate, Reduced rate (13.5%) and Standard rate (23%). There is also a Second Reduced rate of 9% which applies to certain food and drink products in the hospitality sector. The continued increase in the production of new specialty food and drink products over recent years has led to a situation where the VAT treatment of many of these products is no longer as clear cut as it was in the past. For example, we now have a huge array of snack foods that are borderline products between Standard VAT (23%) rated savoury foods and Zero VAT rated conventional foods. The same applies to products that may be regarded by Revenue as confectionery and to liquid products that are border-line between Zero rated food and Standard rated beverages.
Some of us will recall a famous case from the 1970’s when the UK VAT authorities ruled that Jaffa Cakes were chocolate coated biscuits liable to the Standard VAT rate. The manufacturers argued that they were cakes and eligible for Zero VAT. The Courts eventually agreed that Jaffa Cakes were cakes and should never have been liable to VAT to Standard VAT. VAT rate issues, similar to the Jaffa Cakes case, have increased hugely since the 1970’s due to the proliferation of new products – especially in the areas of health foods, snacks, confectionery and beverages. VAT Rates The VAT rates applicable to food and drink are fairly straight forward for most types of products. In summary, basic food products qualify for the Zero VAT rate while most drinks are liable to Standard VAT. There are numerous exceptions. For example, tea, coffee and milk all qualify for the Zero VAT rate while Standard VAT applies to savoury products, confectionery and chocolate biscuits, as well as to most beverages. Problems The problems for industry stem from Revenue’s interpretation of what constitutes a savoury product, a confectionery item or a beverage. The two most important tests are how the product is manufactured and how it is held out for sale. The latter test has become increasingly relevant in recent years. For example, a product may now be regarded as confectionery by Revenue even though it does not meet the accepted definition for a conFOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
Ciaran Hurley.
fectionery as a sweetened food that is eaten with the fingers. Similarly, Standard VAT applies to savoury foods and Revenue considers this to cover ready to eat foods that are salty or spicy. Liquid products are another big grey area. Everybody understands that soup is consumed as food and for this reason it properly qualifies for the Zero VAT rate. Conversely, smoothies are consumed as beverages and are liable to Standard VAT. The issues arise for liquid products that are somewhere in between soup and smoothies, like protein and plant powders. Specialist Advice CKH Fiscal Services provides specialist advice in navigating the VAT minefield surrounding many specialty food and drink products. This can involve working with producers on product design or making representations to Revenue in respect of current products. We have staff with many years’ experience of working at senior level in Revenue, in the areas of VAT rates for food and drink. Our clients range from small manufacturers to some of the largest food distributors in Ireland today. We have a high success rate in obtaining VAT rulings that reflect the true nature of the products we represent. For further information contact CKH Fiscal Services, 296c North Circular Road, Phibsborough, Dublin 7. Tel +353 (0)1 8600 444; Web www.ckhservices.com. J 45
I BEVERAGES
Improve Your Lauter Performance, Decrease Your Energy Consumption uring brewing applications such as D mashing, transferring and lautering shear force is to be avoided. This is due to the fact that shear force has an increasingly effect on the damage of mash. Nowadays it is commonly accepted that one can avoid shear force by limiting the pump rotation speed to 1000 rpm. Together with the University of Leuven (KUL), Packo Pumps examined if this statement is true. They examined the results of centrifugal pumps during these applications with different impellers (open, semi-open, vortex and channel) at a different rotation of speed. In their research they discovered that the statement is not entirely correct. Yes, rotation speed has an effect, but 2 factors play a bigger role.
The efficiency and the free passage of the pump have a greater effect on the prevention of damage than the rotation speed of the pump. Because the damage of mash decreases, the filtration process also improves, which in turn results in a better productivity. In conclusion the research shows that when you find a balance between efficiency, free passage and rotation of speed of the pump, you are able to get a high productivity with a low damage of mash. Also the efficiency has a positive effect on the energy bill, so a higher productivity is reached with a lower energy cost! For more information about this research visit Packo Pumps at the coming BrauBeviale at Nürnberg. J
Lucozade Ribena Suntory Targets Energy Savings with Wonderware ucozade Ribena Suntory, one of the leading soft drinks businessL es in the UK and Ireland, has partnered with Human Machine Interface (HMI) leaders Wonderware UK & Ireland, to monitor and improve its energy performance. Formed in 2014, Lucozade Ribena Suntory is part of Suntory Beverage & Food Europe. The company’s UK site is a 53 acre facility based in Coleford, Gloucestershire, where it produces Lucozade Energy, Lucozade Sport, Lucozade Zero and Ribena. The factory produces over 1.2 billion bottles of drink each year. Lucozade Ribena Suntory has partnered with Wonderware UK & Ireland as part of the company’s goal to reduce its factory’s energy consumption by 5% year-on-year. In order to make reductions the company required a complete breakdown of site energy usage, so looked for an expert driven energy management solution. Lucozade Ribena Suntory’s mission is to reduce its impact on the environment and work in harmony with people and nature. The partnership with Wonderware will help the company understand its energy consumption in more detail, supporting the business in achieving this goal. The company has now implemented Wonderware System
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Platform, which can be attached to Lucozade Ribena Suntory’s individually metered systems to convert the raw energy data into actionable information, allowing LRS to better understand its energy consumption patterns and costs and to identify potential inefficiencies. Built like an operating system for industrial applications, Wonderware System Platform provides configuration, deployment, communication, security, data connectivity and is capable of connecting to hundreds of field devices and plant systems. Lucozade Ribena Suntory is also using Wonderware’s Operational Intelligence Software dashboards to raise awareness of energy consumption and promote behavioural change. The realtime feedback and live usage data on the dashboards will allow team members to see how their individual actions can have an impact on energy use across the site. This focus on employee behaviour change has already worked for Lucozade Ribena Suntory in the field of health and safety. The company recently announced 365 days without Lost Time Accidents, mainly as a result of individuals taking ownership of health and safety onsite. J
FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
I BEVERAGES
BrauBeviale 2016 – 08-10 November – Nuremberg eaturing the latest developments in raw F materials, beverage production, packaging, logistics and marketing, BrauBeviale is one of the industry’s most important gatherings in the world. BrauBeviale 2016 will be held in Nuremberg between 8-10 November, when over 1,000 exhibitors will be presenting new ideas, innovations and solutions which visitors can experience live in the exhibition halls. BrauBeviale is a must attend event and at the same time a trend barometer for the beverages sector. It presents creative ideas and solution concepts for everyone who is involved in the beverages industry. The range of products on display at BrauBeviale covers the entire process chain. BrauBeviale is a compact but comprehensive exhibition, staged over three days in nine halls to provide an efficient and comprehensive overview of the current market. Here visitors can find out everything about high-quality beverage raw materials and essences, innovative technologies and sparkling ideas for marketing and modern sales concepts within the whole process chain. The spectrum of products and services is completed with interesting logistic solutions and innovations in marking equipment and beverage packaging.
to further and continuation training in the beverage industry. Covering all aspects of the beverage packaging theme, BrauBeviale is presenting a diverse range of packaging materials and packing supplies – from glass, through to cans up to kegs or barrels – sealing systems – bottle caps, swing tops, twist-off caps, corks and much more – along with packing ancillaries such as for example labels, crates, pallets. In addition to this, PET@BrauBeviale is offering attractive solutions for the entire PET value-added chain. In the PETarena – companies will be presenting a diverse range of PET services for small and medium-sized companies and global players. The international, two-day congress PETnology Europe, which is being held directly in the run-up to the fair, will open PET PASSION WEEK. J
International Fair BrauBeviale is an international fair with almost every second exhibitor coming from abroad. The specialist range of products and services on display covers all sectors of the beverage industry including beer, wine, sekt (sparkling wine), spirits, non-alcoholic drinks and liquid dairy products, starting with the selection of suitable raw materials. BrauBeviale also highlights the latest technology in beverage manufacturing from special, optimized plant and engineering for production, filling and packaging of the finished product. Packaging materials and ancillaries along with automation and IT and solutions for coordinated logistics are also featured. BrauBeviale Forum At the heart of the exhibition is the BrauBeviale Forum. Here, on all three days of the fair, interesting presentations and discussions will be presented by experts for experts. The range of themes extends from design right up to the beverage container issue, from packaging up to Creative Beverage Culture, from offers for hotel and catering through FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
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I PROCESSING & PACKAGING
Cibus Tec – 25-28 October, 2016 – Parma, Italy ver 30,000 visitors are expected in Parma from 25-28 October O for the 2016 edition of Cibus Tec, the Italian benchmark for the food processing and packaging industry, which will feature 1,200 exhibitors. Cibus Tec is one of the world’s premier events for technological innovation in the food industry and provides a showcase of the best solutions present on the market – from ingredients to the processing technologies, from packaging to logistics – for all types of products:
• • • • • • • • •
Fruit & Vegetables Milk & Dairy products Meat & Seafood Convenience Food & Fresh Cut Bakery and Cereals Ice cream and desserts Coffee and Single Serve Confectionery Liquid Foods. Some 1,000 buyers from the international food industry, including blue chip companies such as Coca Cola, Fonterra and Unilever, will attend the event. About 95% of the 2014 exhibitors have confirmed their attendance, along with 200 new exhibitors, and a significant expansion (+30%) of the packaging technologies and materials section. In response to the event’s expansion, the new, higher capacity Pavilion 2 has been opened. “At this unique trade fair, international operators can discover the best technological solutions, in the very place that puts them to the most advanced and innovative use in the world - here in Italy and, in particular, in Parma. Cibus Tec is a platform for Italian excellence in food processing and packaging and its technological innovation and customisability, with a strong emphasis on specialisation, sustainable technology and advanced automation,” comments Antonio Cellie, CEO of Fiere di Parma.
ing include BRF (Brazil), Fonterra (New Zealand), Kagome (Japan), Solico and Kalleh (Iran), The Morning Star and Coca Cola (USA), Unilever (UAE), Arcor (Argentina) and Amul (India). Business Matching New promotional tools will be introduced to support business matching. The Cibus Tec Showcase digital platform developed with Koelnmesse Italia means greater visibility for exhibitors before, during and after the show. The Cibus Tec Agenda online tool will enable visitors to request appointments with exhibiting companies. The Innovation Hub integrated portal on the Cibus Tec website will promote the technological innovations exhibited at the show. Cibus Tec is more than an international showcase for the best food processing and packaging solutions. Technology is an essential travelling companion for food companies looking to break into new markets. It is only research and innovation in technology that has enabled Made in Italy food to be available everywhere, whilst maintaining its high quality and wholesome nature. With a 2016 turnover estimated at Eur134 billion (with almost Eur29 billion from exports), the Italian food industry is the country’s second largest manufacturing sector. Over 1.2 billion consumers worldwide buy a Made in Italy product every year and convenience products (ready-made sauces, fresh and frozen toppings, etc) are an ever growing consumer trend, now representing 25% of the agri-food turnover. If excellent Italian produce is to take on the world’s markets, closing in on Germany and France (whose respective 2015 agrifood exports amount to Eur71.1 billion and Eur60.5 billion), it will need the support of technologies to preserve its flavour, freshness and identity - like those that will be exhibited at Cibus Tec from the 25-28 October 2016. J
Workshops An intensive program of workshops with international guests has been organised to address the most current issues in the sector, including the new frontiers of food hygiene and food safety, energy consumption diagnosis and future solutions, water footprint and strategies for reducing water consumption, and the role of ecofriendly technologies in enhancing competitiveness. Production and packaging solutions for ‘free-from’ products as well as eco packaging will occupy a large space. Some of the major international companies which will be attend48
FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
I AUTOMATION
Less Hard Work on the Sausage Packing Line ith an automated solution from W Cabinplant, the future of sausage packing is flexible, gentle and precise. Tales of manufacturers that pay to transport workers to their factory are well known in the food industry. Faced with a shortage of labour and rising labour costs, opportunities for automated packaging are increasingly attractive to many. “We know that the standard of living is going up in many parts of the world. This makes it less attractive to work on the shop floor in a food factory,” says Morten Dissing, area sales manager at Cabinplant, a leading supplier of food processing and packing solutions. “It was this that inspired us to develop our automated sausage depositor”.
Sausage packing has traditionally been carried out on highly labour-intensive machines, where operators ensure sausages are arranged in orderly layers ready for packaging. The Cabinplant sausage depositor takes over this role, quickly adapting to a wide variety of sausage and pack sizes. Future-secure Flexibility In the sausage business, such flexibility is a key word. This is why each Cabinplant solution is sold with a series of depositor tools to cater for present and future packaging needs. “Our design means it takes less than 15 minutes to change over to a new sausage type or pack size, so there is very little production downtime. One operator can easily manage the task,” Dissing explains. Reducing Damage and Give-away For manufacturers, gentle handling is essen-
tial to minimise product damage on the line and rework. Another key issue is ‘giveaway’ – the extra grams of product that manufacturers allow in each pack to ensure the actual weight is never below the weight stated on the pack label. The Cabinplant sausage depositor overcomes these challenges through two exclusive features. One is the vibrating action used to transport and align sausages on the machine. While conventional mechanical conveyors cause up to 5% product damage, this is virtually eliminated by the vibrating mechanism. Optimising Pack Weight The other is the multi-head weighing machine that not only ensures the right number of sausages in each packaging, but also accounts for small variations in the weight of each sausage. In this way, sausages are selected from the weighing channels and combined in portions of optimum weight. “Through the use of an accurate weighing system, the average sausage weight can be reduced without risk of failing to meet the stated pack weight,” says Dissing. He gives a real-life example: “If the average weight is reduced by, say, 1.5g per sausage, then giveaway for a pack of six is reduced by 9g. Over a year, the total product saving is close to 30 tonnes.” In other words, 30 tonnes are no longer given away for free.
adaptable, layout-friendly solution that can satisfy most customers’ needs for a tailor-made solution. In his experience, customers are positively surprised by the high efficiency and throughput compared to the number of operators on the line. “Most sausage manufacturers talk about capacity in terms of kilos per hour. Our system can achieve a similar capacity to traditional labour-intensive lines – in some applications, even higher. And they need only a few operators to run at this high capacity,” he comments. With less downtime, give-away and waste on the line, manufacturers can look forward to a flexible and future-proof sausage-packing operation with a fast return on investment. That’s an automation opportunity worth exploring. J
Capacity - A Positive Surprise Cabinplant project manager Allan Hansen Nissen has focused on developing an FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
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I CEREALS
Is Revitalised Demand For Hot Cereals and Premiumisation Enough to Ward Off Potential Cereal Killers in the UK? espite falling volume sales, the UK D breakfast cereals market is forecast by market intelligence provider Key Note to exhibit market value growth of 12.9% between 2015 and 2019. The market rose by 3.9% in market value in 2014. Growth can be positively attributed to several factors, such as the resurgence of the hot cereals sector and heightened demand for premium products; however, ultimately it remains highly dependent on the ongoing impact of high inflation on retail prices. Breakfast cereals enjoy extensive brand awareness; the industry is evocative, having played a prominent role in consumers’ younger years cemented on breakfast tables. However, the industry has been confronted by several problems, not least a depleting consumer base as the result of a mass exodus triggered by the widening multitude of alternate breakfast options, such as breakfast drinks and biscuits. Highly Popular Breakfast cereals remain highly popular among British consumers, upheld for their superior source of energy and nutritional fortification. However, the industry is changing as breakfast cereals become
context of falling volume sales, a dwindling consumer base and heightened health concerns, it is plain to see why the market grows more competitive as brands scramble to secure growth in an ever more saturated marketplace.
increasingly absent from shopping baskets in line with changing eating habits and consumer demand. The market has responded accordingly and cereal aisles have dramatically changed in appearance, driven by demand for health, convenience and nutrition. According to Key Note, over the past few years product choice has shifted from frivolously packaged, excessively sugary and brightly coloured boxes to ‘natural’, unadulterated cereals in quaint, fresh packaging laden with nutritional information and advice. This shift has been most apparent in the children’s subsector, which has faced mounting concern among parents about sugar content as awareness grows of matters of diet and health, catalysed by worsening childhood obesity. So, in the
NPD and Marketing Therefore, in the face of difficult market conditions it is essential that the market remains dynamic, committing ongoing investment to new product development and marketing. This has been the source of much recent market growth - from brand extensions to hot cereals to convenient formatting - and has allowed the breakfast cereals market to remain on its toes in the face of adversity. Key Note expects innovation to continue as a principal determinate of success in the breakfast cereals industry. There are a few interesting developments in the market, from the rise of the eating out breakfast occasion to the ongoing consolidation of breakfast alternatives. The manner in which the industry can harness these forces and exploit them is of utmost importance. Changing market forces will continue to open new avenues of growth; however, these will be limited by a long-term fall in volume sales. J
Pioneer Foods Expands UK Presence ne of South Africa’s leading food companies, Pioneer Foods, is O making its mark in the UK following the official opening of its new Bokomo UK facility in Orton Southgate, England. Situated less than two kilometres from the previous Bokomo UK factory, the new facility has been built from scratch and was designed specifically to fit the requirements of a breakfast cereal business. “This new facility allows us to significantly increase our capacity as we continue to produce the popular and high quality Granola, Crunch, Crisp, Muesli and Porridge breakfast cereals for which Bokomo UK is synonymous for,” comments John Hiles, chief executive of Bokomo UK. “Of all the new features that the new facility offers, the potential to further expand our operation is perhaps the most exciting.” He adds: “With enhanced capacity as a result of focused produc-
tion lines and world class packing capabilities, the business has space to grow and drive further value for the Pioneer Group’s UK operations in Bokomo UK’s new home.” J
FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
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I CEREALS
CPM Wolverine Proctor – A Total Solution Supplier For Breakfast Cereal Manufacturers By Robin Holding, Commercial Director, CPM Wolverine Proctor Ltd he breakfast cereal industry sector has T seen a fairly steady growth over the last few decades with new markets such as Asia and Eastern Europe developing a taste for UK and western style foods. However, in recent times, the major cereal manufacturers have been challenged by calls for recipe changes, on-the-go product varieties and now, drinkable versions of what hitherto were traditional market favourites. This presents a great challenge to the cereal R&D teams and, further upstream, to the machinery manufacturers. Clearly, we need to work together to develop new processes and products to be able to satisfy consumer demand, but there can often be a trade-off between what is desirable and what is practical or cost-effective. This is where it is particularly important to develop an effective dialogue between the marketing, R&D and supplier’s engineering personnel, so that ideas can be explored, analysed and then discounted or pursued as appropriate. CPM Wolverine Proctor Ltd has been supplying processing machinery to the food industry since early last century and continues to do so on a global basis. We have manufacturing facilities in Europe and the USA and our customers are becoming progressively more reliant on us as a total solution supplier, partly because they have had to reduce their own engineering and R & D resources to remain competitive, but also because they value the depth of experience
Dryer feed end.
that we have built up over the years and around the world. We have product development facilities available in both the UK and USA and we encourage our customers to carry out secure lab trials when developing a new product with us. Project Management and Engineering Resources
In order to meet demand, we have developed our project management and engineering resources across the board, bringing in new design initiatives and process knowledge, allowing us to draw on experiences that may have come from unexpected applications in other industry sectors and enabling us to offer a truly turnkey supply, from raw material intake right through to finished product packaging. For all types of breakfast cereals, we are able to offer complete plants based on traditional batch steam cooking or extrusion cooking, drying and tempering, flaking and shredding, baking and toasting, coating and decorating. Our recent acquisition of TSA Griddle Systems now enables us to add to the breakfast capability with waffles and pancake systems, in addition to our tried and tested granola and cereal bar lines.
ject. This saves huge amounts of time and money because potential interference problems are caught before any metal is cut. At the detailed engineering level, hygiene continues to be a major driving force for our new design features, benefitting the cereal manufacturer in areas such as washdown, cleaning and drainage, minimising downtime and avoiding cross-contamination, energy wastage, etc. Naturally, we do not profess to manufacture every machine that we supply, but by teaming up with other machinery manufacturers and specialists, we can offer cereal manufacturers a “one-stop shop” for everything from raw material handling right through to finished product palletization, all managed by a dedicated project management team. Preferred Machinery Supplier
Our continuing drive to be the preferred machinery supplier means that we are actively encouraging our customers to talk to us about what they like and dislike, listening to their ideas and identifying the priorities for their business. Only then can we hope to meet and exceed their expectations by supplying them with the optimum solution. We are proud to be a major supplier to many of the major breakfast cereal manufacturers around the world and we look forward to continued success with them, as well as with new players in the future, whatever their product lines might be. J
Complete Plant Design
A shredding line.
Having embraced the latest in computer graphics and software, we use “Inventor” packages to design a complete plant in 3D and can ensure that it will fit into an existing factory without problem by digitally scanning the facility at the outset of a proFOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
3D CAD image of a cereal cooker.
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I SNACKS
Over 40% of Young Consumers Snack Regularly ver a third of consumers globally say they snack regularly, with O the figure rising to just over 40% for young people aged 18-34, as the practice of modular eating becomes more accepted as an alternative to eating three main meals a day, according to consumer insight firm Canadean. The company’s latest report finds that consumers snack for a variety of reasons such as the functional need for an energy or nutritional boost, the psychological need to de-stress or indulge, and needs dictated by occasion, such as watching a movie, attending a sporting event, or socializing with friends. As more consumers turn to snacks to fulfil a wide range of needs and occasions every day, the potential opportunities for snacking brands are enormous right across the health-indulgence and sweetsavory spectrums. Katrina Diamonon, Principal Consumer Insight at Canadean, explains: “While it is important for brands to acknowledge and address the snacking needs of all consumers, it is particularly crucial to understand the motivations of younger consumers. Not only are they more frequent snackers, but their purchase behaviours and preferences will strongly influence other current consumers and also subsequent generations as they pass on these traits to their children.” Canadean finds that a range of rational and emotional needs beside hunger can be addressed through snacking, and these reasons differ according to age. As millennials tend to prioritize meat in their diets more highly than their older counterparts due to its perceived health benefits, manufacturers should capitalize on the
meat snack segment and explore new opportunities. Katrina Diamonon continues: “Manufacturers are increasingly experimenting with a range of proteins, formats, and gourmet flavors to elevate consumption from convenience-store snacks to an exciting taste experience and even credible meal replacement. Improved sourcing transparency and ethical production of such offerings is also enhancing premium credentials.” J
I SNACKS
Healthier Children’s Snack Solutions Promise to Please Both Kids and Parents rla Foods Ingredients has developed a suite of protein and calciA um-rich snacking solutions for kids that offer a healthier alternative to chocolate bars and other popular children’s snacks. According to research, snacks now account about one quarter of the calories American children consume. In tandem with this, there is growing concern over obesity rates among children, which means the role of snacking in their diets is now under greater scrutiny than
Arla Foods Ingredients has developed a suite of protein and calcium-rich snacking solutions for kids.
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ever before. As a result, demand is increasing for kids’ snacks that taste great and offer good nutrition – which is not always an easy balance to achieve. To enable manufacturers to create healthier, tastier snacks for children, Arla Foods Ingredients has launched a selection of new product application solutions. All have been benchmarked against existing kids’ snacks options to ensure they represent a superior option in terms of improved nutrition. Among the solutions in the range is a delicious and easy-to-eat 35g ‘dairy bar’ that offers as much calcium per serving as in one glass of milk. It is 20% protein and low in calories. Benchmarked against a typical chocolate bar, it contains one third less energy and, since more of the calories come from protein, energy release in the body is optimised. This helps youngsters to feel fuller for longer than they would with confectionery, where more of the energy comes from sugars. Other innovative application solutions in the new snacking range include a yoghurt bar, a healthier dessert, a carbonised drinking yoghurt and a snack cake with less than 100 calories per serving. The kids’ snacking application solutions have been launched under Arla Foods Ingredients’ Goodness of Dairy campaign. This highlights how dairy ingredients are key to tapping into growing consumer demand for food that is natural, healthy and delivers great taste and texture. J
FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
I SNACKS
GoodMills Innovation Offers Solutions For Veggie and Gluten-free Snack Concepts nacks have evolved from being a simple between-meal treat to an everyday part S of modern life, particularly for ‘Millennials’. An extensive snacking habit is an expression of their modern day lifestyle. Take the first meal of the day, for example. Breakfast has already migrated from the kitchen table to the commute in the form of nutritious breakfast drinks or cookies. And as the distinction between snacks and meals gets narrower, consumer requirements are changing as well. Issues such as nutrition, clean label and ‘free from’ are playing an increasingly important role.
Texturates in the form of flakes provide a stable structure and a meat-like texture.
Going Meat-free The veggie segment is no longer niche and meat-free alternatives are a key industry driver. Vegetarians, vegans and flexitarians – those who intend to reduce their meat consumption – have merged into one recognizable target group. As Innova Market Insights put it: “Flexitarians reimagine meat.” As a result, meat-free options have become incredibly diverse in a short period of time. Thanks to enhanced R&D activities regarding raw materials and processing technologies, new products have come to life that finally meet consumer demand in terms of both texture and taste — aspects that have long been an Achilles’ heel. Snack Fillings and Burger Patties With its portfolio of wheat texturates, GoodMills Innovation offers ingredients for fillings for baked snacks, such as pies or
quiches, and burger patties. Their high water-binding capacity and ability to reduce weight loss during heating offer a number of technical advantages. As a result, because the dough doesn’t soften, vegetable fillings benefit from a pleasant, firm consistency. Furthermore, fillings that don’t shrink adhere to the dough, which prevents the production of undesirable ‘cavities’. For veggie/vegan hamburger patties, coarser texturates in the form of flakes are the best choice. They provide a stable structure and a meat-like texture. Plus, they remain crispy, succulent and appetising even if kept in a warming tray for extended periods. As a valuable source of protein, they perfectly complement vegetarian and vegan diets and, compared with their meat-containing counterparts, products comprising wheat texturates have a better nutritional profile as well as lower levels of cholesterol. Gluten-free Regarding ‘free from’ positionings, glutenfree claims are booming. Initially targeting people suffering from celiac disease or gluten sensitivity, these products are now being used by a far greater population: in fact, more and more consumers correlate gluten-free consumption with a healthy lifestyle and well-being. Based on corn, Masa flours are perfectly suited for the production of gluten-free snacks. As a leading company in grain
Masa flours are perfectly suited for the production of gluten-free snacks.
FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016
The addition of wheat texturates to vegetable fillings results in a pleasant, firm consistency.
refinement, GoodMills Innovation has developed a purely physical process — based on dry grinding — to produce Masa. The technique, compared with traditional methods, offers considerable savings in terms of process water. Supplemental additives such as lime are no longer required, which enhances the final flavour. Masa flours ensure a homogenous particle distribution and, because they’re non-sticky, the doughs demonstrate excellent machineability. Typical applications include tortilla chips and taco shells. But, wishing to examine further uses for Masa-based snacks, gluten-free waffle concepts have also been developed and have performed well in trial runs. Depending on specific requirements, the company collaborates with its customers to develop tailored solutions. Irrespective of whether you prefer a soft or crunchy texture, a hearty filling for lunch or a sweet treat with your afternoon coffee, there’s no limit to GoodMills Innovations’ creativity. For snack applications — like every product range — the innovation process focuses on promoting clean label solutions. Benefiting from state-of-the-art technology, the company’s experts specialise in grain processing using only physical methods, which allows contemporary concepts and clean label products to be developed. For further information visit www.goodmillsinnovation.com. J 55
I SWEETENERS
PureCircle's New State-of-the-art Plant Set to Double Production weetener group PureCircle is building a new processing plant S in Malaysia, which has the potential
excited about bringing this new plant online because the demand for stevia has increased dramatically over the last six years. More specifically, the demand for PureCircle's Zeta ingredients has grown exponentially. This plant will allow us to support the stevia industry in a way that is unmatched by other suppliers." The state-of the-art facility is projected to cost $42 million and is expected to come online in early 2017. J
to double the group's stevia leaf extract production. It will also have a production line specifically for the Zeta Family ingredients, which are for the firm's products like Reb M for fizzy drinks, which have the most sugar-like taste and allow for the biggest calorie reductions. Chief commercial officer Jason Hecker says: "We are extremely
I COCOA
Cameroonian Cocoa Sector Makes Good Strides in Sustainable Production ver 9,500 cocoa farmers in Cameroon have received more than O Eur1.4 million (958million cfa) in premium payments – the largest ever certification premium payments made for sustainable cocoa in the country – under the Cargill Cocoa Promise. These payments directly reflect the growing appetite of customers for certified cocoa products and appreciation for the efforts undertaken by cocoa farmers in Cameroon to become more professional and achieve certification. While Cargill as part of the joint venture Telcar has been training cocoa farmers in Cameroon since 2011, the Cargill Cocoa Promise efforts on the ground have become more advanced in the last year, training nearly 21,000 cocoa farmers at over 600 farmer field schools and building 11 boreholes for local communities to increase access to potable drinking water. By working through these programs, farmers strive for improved profitability and productivity. Another 10,000 new farmers are expected to undergo this training in 2016/2017 and a further eight local communities have been identified for new borehole projects. The premium payments are made to certified farmer cooperatives with 50 per cent going directly to individual members, and the remainder being invested in projects that boost productivity or farm development for the farmer organisation or projects that will benefit the wider community. For Cameroon this has so far included boreholes, 100 scholarships, 10 Cassava grinding machines for women’s groups and credit/discount schemes for crop protection products. The premiums and ceremonies are an incentive for farmers to adopt good agricultural practices and to directly support and influence improvements that will make a difference to their own communities. Premiums are paid by Telcar/Cargill to farmers but represent a contribution from Cargill’s customers that purchase certified products globally. To continuously increase the reach and impact of the company’s 56
program in Cameroon, a key priority of the Cargill Cocoa Promise is to further develop and professionalise farmer organisations. These organisations are are extraordinary multipliers to promote good agricultural practices and behavioural change in rural areas. In March 2016, the Cargill Coop Academy was established in Cameroon, based on the highly successful model in Cote d’Ivoire. The Academy provides business education and is on target to train over 900 executives from 227 farmer organisations over four years. Since its March inception, 60 cooperatives have participated and their leaders have started the 28-day intensive curriculum and yearlong personalised one-on-one coaching. This represents a significant step towards professionalisation of farmer organisations in Cameroon. J
Farmers drying cocoa beans in Cameroon.
FOOD & DRINK BUSINESS EUROPE, OCTOBER 2016