June 2014
Food & Drink Business Website:
www.fdbusiness.com
C o n t e n t s
- 3 C OVER S TORY
- 57 L EAN M ANUFACTURING
The Top 100 food and drink manufacturers in the UK and Ireland.
Kellogg implements efficiency programme to drive growth.
- 15 D AIRY
PAGE 3
- 63 P OULTRY
Emmi achieves broad-based growth in Switzerland and abroad.
Paul Polman, CEO, Unilever.
Strong growth by Moy Park.
P AGE 10
Simon Litherland, CEO, Britvic.
R EGULARS
- 23 S NACKING
Quality & Safety . . . . . . . . . . . . . . . . . 16-21
Mondelez International becomes leaner. PAGE 47 Bottling & Packaging . . 18, 33, 50, 55, 59-61
- 27 I NWARD I NVESTMENT Ireland – the food island – attracts growing inward investment.
Materials & Ingredients . . . . . . . . . 26, 65-68
Peter GioertzCarlsen, new CEO, Arla Foods UK.
Sweetemers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65-68
PAGE 5
Fiona Kendrick, CEO, Nestle UK.
- 29 D AIRY
Processing & Manufacturing . . . . . 35-42, 45 Lean Manufacturing . . . . . . . . . . . . . . . . . . . . . . .37-42
Energy & Environment . . . . . . . . . . . 30 & 43
Dairygold achieves record profits. Logistics & Distribution . . . . . . . . . . . . . . 58
PAGE 63
Janet McCollum, CEO, Moy Park.
- 31 S OFT D RINKS Coca Cola Enterprises investing £1 million a week in British operations.
Managing Director: Colin Murphy Editor: Mike Rohan Group Operations Manager: Sylvia McCarthy Advertising: John Bent & Ian Stewart
- 32 D RINKS Diageo is Britain’s most admired company.
PAGE 7
Production Manager: Sylvia McCarthy
Gavin Darby, CEO, Premier Foods.
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- 47 D AIRY New head for Arla Foods UK as expansion continues.
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- 53 E FFICIENCY & S USTAINABILITY
PAGE 9
Arla Foods aims to provide more nutrition for less emissions.
Ronald Kers, CEO, Muller Dairy UK.
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FOOD & DRINK BUSINESS EUROPE, JUNE 2014
1
COVER STORY
The Top 100 Food and Drink Manufacturers in the UK and Ireland Food & Drink Business Europe presents its nineteenth annual ranking of the top one hundred food and drink manufacturers in the UK and Ireland, and also highlights some of the key corporate developments within the industry during the past twelve months.
T
he food and drink industries in the UK and Ireland are closely linked by historical trading ties and many of the Top 100 food and drink companies having established a strong presence in both market-places. The food and drink industry in the United Kingdom has a turnover of Eur114.1 billion (£96 billion), of which Eur29.7 billion is value added. The industry employs 406,000 people across more than 7,700 companies. Total UK food and non-alcoholic drink exports returned to growth in 2013, rising by 5% to £12.8 billion, after a flat 2012. Ireland and France remain the UK's biggest food and drink export markets. With almost 700 companies employing about 43,000 people, Ireland’s food and dink industry has a turnover of Eur22 billion (£18.5 billion) with value added amounting to Eur6.9 billion. The value of Irish food and drink exports grew by 9% in 2013 to approach Eur10billion (£8.4 bil-
Paul Polman, chief executive of Unilever.
Hovis is a new entry into the Top 100 in 42nd position.
lion) for the first time, representing growth of 40% in the last four years with revenues almost Eur3 billion higher than in 2009. The UK remains the largest export market for Irish food and drink, accounting for 42% of sales worth an estimated Eur4.1 billion in 2013. Ranked according to their most recently available turnover figures, with pre-tax profits also listed, the 2014 Top 100 incorporates companies ranging in scale from Unilever’s refreshment and foods business, which achieved global sales of Eur22.8 billion (£19.2 billion) in 2013, down to Aston Manor Brewery, the UK’s largest independent cider maker, with a turnover of £120.2 million. M&A Activity Overall, merger and acquisition (M&A) activity within the UK food and drink industry slowed during 2013 with deal volumes down by 21%, compared to 2012, as companies remained focused on improving operational efficiency, according to leading business and financial advisory firm Grant Thornton. However, M&A deal volumes recovered slightly in the first quarter of 2014, against the corresponding period last year, as the number of private equity backed transactions increased. The biggest acquisition deal by a Top 100 company during the past twelve FOOD & DRINK BUSINESS EUROPE, JUNE 2014
months is Diageo’s tender offer of £1.13 billion to acquire a further 26% stake in United Spirits, the leading spirits producer in India. Diageo, which is the largest drinks company within the Top 100, has already purchased 27% of United Spirits for £660 million. The move to increase its shareholding in United Spirits from 28.8% to 54.8% is in line with Diageo’s strategy of building its presence in the world’s faster growing spirits markets. The deal has prompted the disposal of Scotch whisky business Whyte & Mackay to Philippines-based Emperador for £430 million. The sale is an attempt to satisfy
George Weston, chief executive of Associated British Foods.
regulatory concerns over the supply of blended whisky arising from Diageo’s £1.8 billion takeover of United Spirits, which bought Whyte & Mackay for £595 million in 2007. Failed Deal The proposed merger between soft drinks producers Britvic and AG Barr failed to 3
to Suntory’s Scotch whisky portfolio, which had been centred on the Morrison Bowmore distillery business. Suntory has also gained entry into the fast growing Irish whiskey sector through the Beam-owned Cooley Distillery. Increasing Overseas Interest Other well-known British brands to change
hands during the past year are Jammie Dodgers, Wagon Wheels, Maryland Cookies, Lyons and Cadbury Fingers, which are produced by Burton’s Biscuit Company (formerly Burton’s Foods). Operating manufacturing sites in Blackpool, Edinburgh and Llantarnam along with a chocolate refinery in Moreton, Burton's Biscuit Company was
Javed Ahme, chief executive of Tate & Lyle.
materialise despite being approved by the Competition Commission. The merger would have resulted in the formation of Barr Britvic Soft Drinks with annual sales of over £1.5 billion. A major soft drinks merger that did proceed resulted in UK-based juice and juice drinks producer Gerber Emig joining forces with Netherlands-based Refresco. The merger has created a leading panEuropean bottler of soft drinks and fruit juices with combined sales of about Eur2.3 billion (£1.9 billion). Another major international deal with implications for the UK soft drinks industry was the £1.35 billion sale of iconic British and international soft drinks brands Lucozade and Ribena by global pharmaceutical and healthcare group GlaxoSmithKline to Suntory Group of Japan. Suntory has since significantly increased its presence in the Scotch whisky industry following its $16 billion (£9.8 billion) acquisition of Beam, the US-based global spirits group. The Beam deal has added the Teacher's, Laphroaig and Ardmore brands
Fiona Kendrick, chief executive of Nestle UK.
Company 1 (1) Unilever (Refreshment & Foods) 2 (2) Associated British Foods 3 (3) Diageo 4 (4) Kerry Group 5 (5) Tate & Lyle 6 (6) Boparan Holdings
Turnover
Pre-tax Profits
Ownership/Status
£19.15b £13.31b £11.43b £4.91b £3.26b £2.88b
£3.29b* £876.0m £3.12b £447.1m £309.0m -£34.9m
7 (7) Glanbia 8 (8) ABP Food Group
£2.01b £1.93bE
£147.8m nd
9 (9) Coca-Cola Enterprises
£1.79b
£258.7m
10 (11) Irish Dairy Board 11 (16) Princes
£1.76b £1.74b
£21.7m £57.1m
12 (15) Arla Foods
£1.72b
£8.4m
13 (12) Nestle UK 14 (14) Bakkavor Group 15 (21) Iglo Foods Holdings 16 (13) Heineken UK
£1.65b £1.65b £1.57b £1.55b
-£11.9m -£16.3m -£34.6m £20.2m
17 (17) Dairy Crest 18 (19) Britvic 19 (18) MolsonCoors Brewing
£1.39b £1.32b £1.30b
£54.2m £108.1m £11.1m
20 (26) United Biscuits (UK)
£1.23b
£174.5m
plc plc plc Irish co-op/plc plc Incorporating 2 Sisters Food Products – Independent Irish co-op/plc Formerly Irish Food Processors - Irish independent Coca-Cola Enterprises, US Irish dairy co-ops Mitsubishi, Japan Arla Foods, Denmark/Sweden Nestle, Switz. independent Permira Heineken, Netherlands plc plc Molson Coors Brewing, US Blackstone, PAI Partners
Source: KEY NOTE, company accounts. * operating profits. Eur = £0.84. Figures in brackets indicate previous year’s rankings.
FOOD & DRINK BUSINESS EUROPE, JUNE 2014
5
acquired by Ontario Teachers’ Pension Plan, the largest single-profession pension plan in Canada, for in the region of £350 million. The sale of Burton’s is indicative of the growing overseas interest in the UK and Irish food and drink industries. For example, US-based organic food processor Hain Celestial has more than doubled the sales of its UK business (Hain Daniels) to $420.4 million (£270 million) in the past 18 months following a series of strategic acquisitions, including Premier Foods’ ambient grocery brands, the Ella's Kitchen brand, a leader in premium organic baby food, and Tilda, a leading branded Basmati
Martin Glenn, chief executive of United Biscuits.
Company 21 (22) Mondelez Foods UK 22 (24) Greencore 23 (28) Moy Park 24 (25) Greene King 25 (20) AB InBev UK
Turnover £1.22b £1.20b £1.20b £1.19b £1.13b
Pre-tax Profits £16.9m £45.2m £33.8m £114.8m £13.4m
26 (27) Tulip
£1.12b
£26.0m
£1.12b
£24.9m
£1.06b £1.04b £995.0m £994.5m
£152.5m -£49.2m £54.8m -£11.6m
£988.6m
£499.6m
£920mE £880.6m £856.2m £848.4m £788.7m £782.9m £767.2m £728.5m
27 (29) Hilton Food Group 28 (-) William Grant & Sons 29 30 31
Holdings (23) Karro Food (31) Cranswick (30) Carlsberg UK
32 (43) Chivas Bros 33 (33) Dawn Meats Group 34 (35) Robert Wiseman Dairies 35 (10) Premier Foods 36 (32) HJ Heinz 37 38 39 40
Manufacturing UK (34) Mars Chocolate UK (38) Marston’s (36) Samworth Bros Holdings (37) Dunbia
and specialty rice products company. Continued Consolidation in Dairy The recent flurry of consolidation within the UK dairy industry, which saw Muller Dairy UK (part of the German Muller Group) acquire Robert Wiseman Dairies, and Scandinavian dairy co-operative Arla Foods merge its UK operations with those of fellow co-operative Milk Link to create the UK’s largest dairy business, prompted two other Top 100 dairy companies to join forces during the year. The Irish Dairy Board’s Adams Foods subsidiary, which is one of the UK's leading suppliers of cheese, has entered a longterm strategic partnership with First Milk, the largest British farmer-owned dairy cooperative in Britain, to establish a fully integrated supply chain for hard cheese in the UK retail, food service and wholesale sectors.
Ownership/Status Kraft Foods, US plc Marfrig, Brazil plc Anheuser-Busch InBev, Belgium Danish Crown, Denmark plc Gavin Darby, chief executive of Premier Foods.
nd -£7.1m £4.4m
Independent Independent plc Carlsberg, Denmark. Pernod Ricard, France Irish independent Muller, Germany plc
£149.9m £99.8m £69.8m £43.0m nd
HJ Heinz Co, US Mars, US plc Independent Independent
Strategic Joint Venture Another strategic joint venture of note involves Premier Foods, which has sold a controlling stake (51%) in its struggling bread business to The Gores Group, a USbased private equity firm, for £30 million. Premier Foods and The Gores Group have agreed to invest a combined £45 million in the joint venture which, together with external financing and cash flow from the
Source: KEY NOTE, company accounts. * operating profits. Eur = £0.84. Figures in brackets indicate previous year’s rankings.
FOOD & DRINK BUSINESS EUROPE, JUNE 2014
Adams Foods will utilise its best-in-class facility at Leek in Staffordshire to cut, pack and market 50,000 tonnes of hard cheese, including branded cheddars, produced at First Milk's award winning Lake District and Haverfordwest creameries. Adams Foods will take on the business for the sales and marketing of this cheese to British retail, food service and wholesale customers. First Milk will continue to manage the sales and marketing of its cheddars to export markets.
7
Growing Optimism The outlook for the food and drink industry in both the UK and Ireland is increasingly positive. According to The Food and Drink Federation, business optimism amongst UK food and drink manufacturers has reached the highest levels seen since 2010. A report from Grant Thornton echoes these sentiments. The report, entitled
‘Hunger for growth: food and beverage looks to the future’, finds that due to increasing export opportunities and improved consumer sentiment at home many UK food and beverage companies are looking to increase investment across areas such as facilities, equipment, IT and product development during 2014. However, it also identifies that rising raw materials prices will remain the biggest challenge for
Ronald Kers, chief executive of Muller Dairy UK & Ireland.
business, will be used to fund plans to invest approximately £200 million in the business over the next five years to improve operational efficiency and to rejuvenate the Hovis brand. The newly created joint venture is called Hovis and for the year ended 31 December 2013 it had sales of £654.6 million and EBITDA of £21.9 million, with gross assets £240.6 million. Hovis employs approximately 3,800 people at ten bakeries, six flour mills and two regional distribution centres across the UK. In addition to the Hovis brand, the company also makes Mothers Pride, Ormo and retailer branded bakery products and supplies flour to a range of customers under its Rank Hovis, Fleming Howden and Holgran trading platforms. Hovis is a new entry into the Top 100 in 42nd position. Girl Power When Janet McCollum succeeded Nigel Dunlop as chief executive of Moy Park, Northern Ireland’s largest food company and the leading poultry processors in the UK, last January, she joined a small but growing band of women heading Top 100 companies. Others include Kate Allum, chief executive of First Milk, Stella David, chief executive of William Grant & Sons; Anna Malmhake, chief executive of Irish Distillers Pernod Ricard, Fiona Kendrick, chief executive of Nestle UK, and Siobhan Talbot, group managing director of Glanbia.
Anna Malmhake, chief executive of Irish Distillers Pernod Ricard.
Company 41 (44) Dairygold Co-op 42 (-) Hovis
Turnover £711.5m £654.6m
Pre-tax Profits £22.9m £21.9m*
43 (40) Gerber Emig Group
£650.2m
-£2.2m
44 (41) Kepak 45 (42) PepsiCo Ireland 46 (47) Edrington Group 47 (49) Young’s Seafood
£650mE £630mE £591.3m £582.7m
nd nd -£106.2m £89.8m
48 (45) Noble Foods Group
£548.5m
£25.9m
49 (46) First Milk 50 (48) Warburtons 51 (53) C&C Group 52 (50) Birds Eye 53 (54) Lakeland Dairies 54 (51) Sun Valley Foods 55 (55) Farmers Boy
£530.0m £523.7m £520.1m £463.6m £458m £451.2m £436.2m
-£7.8m £75.9m £97.6m £73.6m £9.8m* -£8.0m £46.7m
56 (52) McCain Foods GB
£416.5m
£33.2m
57 (56) Heineken Ireland
£400.7m
nd
58 (58) Irish Distillers Group
£380mE
nd
59 (57) Muller Dairy (UK)
£367.8m
£30.8m
60 (59) Faccenda Foods
£365.2m
£5.0m
Ownership/Status Irish co-op The Gore Group, US Refresco Gerber, Netherlands Irish independent PepsiCo, US Independent Part of Findus Group – Lion Capital, UK Independent – formerly Deans Foods Co-operative Independent Irish plc Permira Irish co-op Cargill, US W Morrison Supermarkets plc McCain Foods, Canada Heineken, Holland Pernod Ricard, France Alois Muller, Germany Hillesden Investments
Source: KEY NOTE, company accounts. * operating profits. Eur = £0.84. Figures in brackets indicate previous year’s rankings.
FOOD & DRINK BUSINESS EUROPE, JUNE 2014
9
One such project is being carried out by Edrington, which has unveiled plans for a new Speyside distillery and visitor centre for The Macallan Scotch malt whisky brand, involving capital investment of over £100 million. Edrington owns some of the leading Scotch whisky and rum brands in the world, including The Macallan, Brugal, The Famous Grouse, Cutty Sark and Highland Park. In addition to its core brands, Edrington acquired Snow Leopard vodka in 2013.
The smaller Irish whiskey industry is also gearing up for expansion as export sales continue to grow rapidly. Irish whiskey exports have grown by 220% since 2003 and are now valued at Eur350 million. Market leader Irish Distillers recently opened a Eur100 million extension to its distillery at Midleton and William Grant & Sons is building a Eur35 million stateof-the-art pot still whiskey and malt whiskey distillery in Tullamore. With more than 15 new distilleries cur-
Simon Litherland, chief executive of Britvic.
the sector. Grant Thornton predicts that there will be an increase (a move from 2% to 5% over the next two years) in the number of UK businesses selling at least 25% of their products abroad. Beyond Western Europe, the three key markets being targeted by UK food and beverage companies are China, South East Asia and Africa. Furthermore, the report finds that approximately half of UK respondents expect positive effects from the trend towards locally sourced goods. Indeed, businesses have invested heavily to maintain and improve product integrity and to apply more rigour to their supply chains, some as a direct result of the horsemeat scandal, Grant Thornton points out. Whisky and Milk The Scotch whisky industry continues to lead the export drive. Although the value of Scotch whisky exports were static at £4.3 billion in 2013 - the first time in many years when exports failed to grow in value the industry remains optimistic about its long-term future prospects as Scotch whisky continues to be the premium spirit of choice in developing economies around the world. To support this expected growth the industry has announced investment of an unprecedented scale with £2 billion committed over the next two years, with more than 20 new distilleries planned.
Company 61 (65) Weetabix
Turnover £354.7m
Pre-tax Profits £95.7m
62 (61) Bernard Matthews 63 (62) AarhusKarlshamn UK
£346.4m £340.9m
-£18.1m £22.2m
64 (63) Meadow Foods 65 (60) Burton’s Biscuit Company
£339.4m £333.2m
£9.8m £30.3m
66 (67) Cott Beverages
£298.5m
£10.5m
67 (66) Icelandic Group UK
£291.9m
£5.8m
68 (75) Whyte & Mackay Group
£277.1m
£29.5m
£273.1m £271.5m £270m
£0.2m £35.2m £20.0m*
£265.8m £261.0m £259.9m £254.1m £245.2m £236.9m £232.6m £228.5m £227.7m
£6.3m £4.8m £4.7m £34.3m £63.9m £24.9m £4.2m £12.6m £1.1m
69 (70) Walkers Snack Foods 70 (68) Fuller Smith & Turner 71 (-) Hain Daniels 72 (72) The Real Good Food 73 74 75 76 77 78 79 80
Company (77) Yeo Valley Group (71) Foyle Food Group (74) AG Barr (76) Wrigley Company (73) Danone UK (78) JW Galloway (86) William Jackson & Son (79) Dale Farm
Source: KEY NOTE, company accounts. * operating profits. Eur = £0.84. Figures in brackets indicate previous year’s rankings. James Lousada, chief executive of Carlsberg UK.
10
FOOD & DRINK BUSINESS EUROPE, JUNE 2014
Ownership/Status Bright Food, China Independent AarhusKarlshamn, Sweden/Denmark Independent Ontario Teachers' Pension Plan, Canada Cott Corporation, Canada Icelandic Group, Iceland United Spirits, India PepsiCo, US plc Hain Celestial, US plc Independent Independent plc Mars, US Danone, France Independent Independent United Dairy Farmers Group
facility at its Sun Valley operation in Hereford. The investment will also enable Cargill to expand its capacity to process and supply fresh UK reared chicken as it focuses its UK poultry business on the retail sector and key partners in food service. Note of Concern While optimism is at its highest level for several years, one dark cloud hangs over the bright outlook for the industry. Food and drink manufacturers are facing the prospect of even stronger downward pressure on
already squeezed profit margins as the UK supermarkets continue to cut prices. The latest share figures from Kantar Worldpanel, for the 12 weeks ending 27 April 2014, show British grocery market growth at just 1.9% - the lowest level for at least 11 years. In response to the continued market share gains by discounters Aldi and Lidle, price competition between the big four retailers – Tesco, Sainsbury, Morrisons and Asda - is escalating as they abandon periodic price promotions in favour of everyday low prices. J
Gordon Johncox. Managing director of Aston Manor Brewery.
rently being developed across Ireland, the newly launched Irish Whiskey Association expects the industry to invest over Eur1 billion in Ireland in the next ten years. Major investment in new capacity is also ongoing in the Irish dairy industry as it prepares to process the additional milk production anticipated after the abolition of EU milk quotas in 2015. The industry is planning to increase dairy production by 50% by 2020 with estimated investment of Eur400 million in additional processing capacity required to support this planned expansion. For example, Ireland’s second largest dairy processor, Dairygold, is implementing a phased investment of Eur120 million over an eight years period to incrementally expand its processing capacity by 2020. The Irish Dairy Board recently announced a Eur30 million investment to establish a 50,000 tonne capacity, fully integrated butter production and packing facility at Mitchelstown, County Cork, which will also serve as an innovation centre for the Kerrygold brand which has ambitious expansion plans post the abolition of milk quotas in 2015. Major Capital Investment Across All Sectors Major capital investment projects have been recently announced by many of the Top 100 companies across virtually all sectors. For example, in confectionery, Mondelez International is investing £75 million at the former Cadbury site at Bournville and Eur5 million to expand its chocolate crumb manufacturing plant in Ireland. Warburtons has just received the green light for a new £20 million bakery at Burnely, and Heineken UK is to invest £58 million to expand its HP Bulmer cider production site at Hereford in England. In soft drinks, Coca-Cola Enterprises is investing £52 million in its operations in Great Britain during 2014, taking total expenditure to £227 million since 2011. Within poultry, Cargill plans to spend £35 million over the next three years to improve efficiencies, upgrade technologies and create a state-of-the-art processing 12
Company 81 (-) Halewood International 82 (82) McCormick UK 83 (80) Lactalis McLelland 84 (83) Coca-Cola HBC Northern Ireland
85 (85) Ferrero UK
Turnover £226.0m £215.5m £209.3m
Pre-tax Profits £2.8m £11.4m £1.7m
Ownership/Status Independent McCormick, US Lactalis, France
£193.1m
£2.7m
£184.6m
-£5.5m
Coca-Cola HBC, Greece Ferrero International, Switzerland plc Tata Tea, India Charles Wells
86 (81) Finsbury Food Group £176.6m 87 (69) Tata Global Beverages GB £171.3m 88 (87) Wells & Young’s Brewing £169.9m 89 (88) Menderley Food Group (Tayto)
£6.7m £23.3m -£0.6m
90 (94) Baxters Foods Group 91 (91) R&R Ice Cream UK
£166.0m £157.0m £149.4m
£13.4m £1.8m £21.4m
92 (99) Yoplait UK 93 (93) Dr Oetker UK
£145.4m £145.0m
£24.1m -£2.4m
94 (92) Daniel Thwaites 95 (96) Shepherd Neame 96 (-) Lantmannen Unibake
£136.4m £134.9m £130.2m
-£2.4m £7.1m na
97 (100) Walkers Shortbread 98 (-) Kellogg Co of GB
£123.7m £121.0m
£14.6m £10.1m
99 (-) SA Brain & Co 100 (-) Aston Manor Brewery
£120.7m £120.2m
-£2.1m £2.7m
Source: KEY NOTE, company accounts. * operating profits. Eur = £0.84. Figures in brackets indicate previous year’s rankings.
FOOD & DRINK BUSINESS EUROPE, JUNE 2014
Independent Independent PAI Partners, France Yoplait, France Dr Oetker, Germany plc plc Lantmannen, Sweden Independent Kellogg Company, US Independent Independent
I DAIRY
Emmi Achieves Broad-based Growth in Switzerland and Abroad Swiss dairy group Emmi is expanding its international presence while consolidating its domestic market position. mmi is the largest Swiss milk processor, producing a full range of dairy and fresh products as well as cheese. Emmi is also developing sales internationally where it concentrates on key brands and specialities in established European and North American markets, and increasingly in emerging markets beyond Europe. The primary focus in fresh products is on lifestyle, convenience and health products. In the cheese business, Emmi positions itself as the leading company worldwide for Swiss cheese. Emmi supplies the retail trade, the hospitality and food service sector, and the food industry. The company employs about 5,200 people in Switzerland and abroad. Emmi’s strategy over the medium term is to increase the share of sales from its international business to 50% from a current level of around 43%. The aim is to achieve this growth both organically and through acquisitions, with a stronger focus in future on emerging markets outside Europe.
E
Financial Performance Helped by acquisitions, Emmi increased net sales by 10.6% to SFr3.23 billion (Eur2.64 billion) in 2013, slightly exceeding its own targets. Adjusted for one-time effects, earnings before interest and taxes (EBIT) rose by 9.4 % to SFr160 million,
while net profit increased by 8.1 % to SFr98 million, resulting in an EBIT margin of 4.9 % and a net profit margin of 3.0 % both unchanged year-on-year. A robust performance by established products, support from innovations and the contribution of recently acquired companies combined to allow Emmi to achieve its sales and earnings targets. Emmi expects group sales to grow by 3% to 4% and the net profit margin to remain unchanged in 2014. The growth in sales during 2013 was largely due to Emmi’s expanding international business and an encouraging performance in the Swiss market, which saw organic growth for the first time since 2008. Success factors included Emmi’s Caffè Latte brand, Kaltbach and other cheese specialities in Switzerland and abroad, as well as the newly launched brands ‘Jogurtpur’ (Pure Swiss Yogurt) and ‘good day’ in Switzerland. In the Swiss market, net sales rose from SFr1.84 billion to SFr1.86 billion. The increase of 1.1% is based on positive developments in the three high-turnover segments - dairy products, cheese and fresh products. Switzerland accounted for 56% of group sales. Emmi’s international business increased net sales by 26.0% to SFr1.44 billion. The Emmi Caffè Latte brand performed strongly internationally, particularly in Austria, the UK and Spain. Exports of various cheese specialities including fondue and raclette increased, and the locally produced range in the USA, as well as Chile and Tunisia (cheese, fresh products, dairy products) also performed very well. The international business also benefited from Emmi’s increased stake in Spanish firm Kaiku (from 1 July 2012), the acquisition of the French firm Diprola (from 1 July 2012), the stake in the Dutch firm AVH Dairy Trade (from 1 January 2013), as well as the acquisitions of Käserei Studer FOOD & DRINK BUSINESS EUROPE, JUNE 2014
Urs Riedener, chief executive of Emmi.
(from 1 July 2013) and Rachelli (from 1 August 2013). In local currency and adjusted for acquisitions, growth amounted to 2.0%. Right Direction Urs Riedener, chief executive of Emmi, comments: “Group sales performed according to plan, and in Switzerland we even exceeded our expectations. The encouraging growth in our domestic market is a clear sign that we are steering our product portfolio in the right direction, and that we have set our priorities well.” He adds: “Emmi was able to maintain its profit margin, despite high pressure on prices. This is pleasing and is the result of the focus on core competences, the success of our brand, setting clear priorities and rigorous cost management.” Emmi continues to make strategic acquisitions to strengthen its international business. The most recent deals involved the purchase a 25% stake in US yogurt supplier Siggi, and a 50% stake in Mexideli 2000 Holding, Mexico’s leading importer of speciality cheeses - both for undisclosed sums. J 15
QUALITY
& HYGIENE
DAIRY
I
Storing Cheese at the Right Temperature efore cheese can develop the right flavor, B it must be stored for several months at the right temperature and air humidity. Owing to the high air humidity, not every sensor is suitable for regulating the air conditioning system. Also, the sensors must be calibrated at the right operating point. Kirchberg in Bern stores 18,000 Emmental cheese wheels each weighing about 95 kilograms. After aging for three months, they are transported from the local cheese dairies that make them to the Swiss corporation Emmi AG in Kirchberg. There the wheels mature for six months under precisely defined conditions before they are delivered to outlets in Switzerland and abroad. Every week, the Emmental wheels are brushed and turned in the stores. It is important that the temperature in the hall and the air humidity are just right to prevent the cheese from sweating or exuding fat. In order to safeguard the right temperature and humidity, the cellarers at Emmi use a range of temperature and humidity sensors made by Rotronic. These keep the temperature constant at 11.5 ºC and the relative air humidity at 74%.
Kirchberg is where Emmi Emmental matures.
New Sensors Replacement parts were no longer available 16
for its old sensors, so Emmi decided in favor of the new transmitters from the Rotronic HygroFlex Series 5. Daniel Wüthrich, shop mechanic responsible for the air conditioning system in the store rooms, has come to appreciate the new transmitters, above all because he can easily replace the sensors without having to take off the whole housing. For example, he needs only to remove the old sensors and plug in the new ones, and the system is already calibrated. He does not have to unscrew the whole transmitter. This saves valuable time.
When maturing, Gruyère emits ammonia that the sensor has to cope with.
Calibration at High Air Humidity Sensor calibration is vital for a cheese store. Temperature sensors are normally calibrated at 23 ºC for a relative air humidity of 10%, 35%, and 80%. In other words, the sensor exhibits its greatest precision around this operating point. At this point, it can measure temperature to a precision of ±0.1 C and the relative air humidity to ±0.8%. The more the temperature departs from 23 ºC, the greater the difference in the sensor readings. Above all the air humidity is critical. This soon gives rise to errors on incorrectly calibrated systems. The cheese store has a temperature of 11 ºC and a relative air humidity of 74% (which is over 90% in the second large cheese store for Gruyère), so Daniel Wüthrich regularly calls on the Rotronic technicians to calibrate the sensors at each of the operating points. Gruyère Emits Ammonia When Emmi decided to order the new sensors from Rotronic, the developers were faced with yet another challenge: Gruyère tends to emit ammonia during maturation. The engineers feared that the ammonia could attack and affect the sensors. After a long series of analyses, the developers could give the all clear: the sensors work reliably despite the high concentration of ammonia in the air. One further advantage of the Rotronic meters is the continuous monitoring of temperature and air humidity, even when the technician is absent. When the values exceed the tolerance for longer than an hour, an alert is sent to his cellphone. When, for instance, the drive for an air valve failed, the system reliably signaled the rise in temperature even before FOOD & DRINK BUSINESS EUROPE, JUNE 2014
the cellarers noticed anything. By analyzing the trend values, Daniel Wüthrich could even pinpoint precisely when the air valve failed. Further detailed information on the HygroFlex5 and other Rotronic measuring devices is available at www.rotronic.com J
The HygroFlex5 With freely selectable and scalable analogue outputs, the HygroFlex5 is suitable for a wide range of applications and its digital outputs guarantee full network functionality. The series stands out for its high level of reproducibility and ensures a system accuracy of <0.8%rH and 0.1 K. The HygroClip2 probe can compensate temperature and humidity at over 30,000 reference points, store 2,000 data sets and calculate the current dew point. The chip’s autodiagnostic function performs regular checks, records the sensor status and triggers an alarm if necessary.
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I HYGIENIC STEEL PRODUCTS
Stainless Steel For Food Processing spen Stainless by Canal Engineering Ltd has a long track A record of providing safe, hygienic and long-lasting stainless steel products to the food and drink industry. Drainage systems, wall kerbing and protection from Aspen Stainless provide a total solution for demanding food and drink processing and manufacturing environments. Aspen Stainless has the ability to manufacture and install high quality, durable, stainless steel products to withstand all types of traffic, machinery and equipment being used in the food and drink industry whilst complying with health and safety directives. This makes Aspen Stainless products ideal for bakeries, meat processing and convenience foods to dairies, breweries, bottling and other beverage facilities. Recently Aspen Stainless was chosen to manufacture and install a complete drainage system and wall kerbing in a new bread processing facility for a top fast food chain. After the initial consultation to find out the facilities requirements, Aspen Stainless recommended their heavy duty Colorado drainage channel and covers, which is designed to withstand heavy traffic operating in the area. The drainage channel was accompanied by a number of outlets that trapped waste for efficient cleaning. Further to the drainage system, Aspen Stainless manufactured and installed their double and single-sided internal wall kerb to create separate bread processing and packaging rooms that incorporated walling from others. During the installation, Aspen Stainless worked closely with specialist flooring manufacturers and installers John Lord. Providing John Lord with levelled wall kerb throughout the facility enabled their installation team to provide the fast food chain with a seamless resin floor. With no joints or crevasses between the wall and floor there will be nowhere for bacteria or debris to harbour creating the required hygienic environment for the bread processing. Discover the full range of Aspen Stainless steel products online at www.aspen.eu.com or contact the technical sales team to discuss your bespoke requirements today; +44 (0)115 986 6321 or aspen@canalengineering.co.uk. J FOOD & DRINK BUSINESS EUROPE, JUNE 2014
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I FILLING
Riggs Autopack Keeping On Track at Tracklements iggs Autopack has recently completed R two projects with an established client The Tracklement Company, which is one of the UK’s leading providers of chutneys, dressings and condiments. As part of the company’s on-going investment and expanding production requirements, Riggs Autopack was selected by Tracklements to install a new filling line to accurately dispense a variety of new products and to cope with an increase in demand. The new line incorporated a fully automatic twin head filling machine with interlock doors, selectable dipping head assembly for container neck entry, and clamps to locate the smallest bottle necks within a millimetre tolerance. The filling machine 200 litre hopper was fitted with an agitation system to keep particulates within dressings in suspension. All change parts are quickly and easily detachable to allow for rapid cleaning and fast product change-overs resulting in minimum down time. Riggs Autopack’s filling machines provide highly accurate and reliable filling with quick strip down and simple cleaning features that require no tools and involve minimal parts. Ideally suited for hot or cold fills, these machines have been used by Tracklements in various forms for nearly 10 years. The project scope included a 6 metre continuous running conveyor through the filling machine and a new automatic capping machine suitable for twist-off lids (the capping machine was sourced from a third party supplier, integrated and project managed by Riggs Autopack as part of the scheme). The conveyor was employed to effectively transfer tall, thin and therefore relatively unstable containers through the line, before finally being taken off to the labelling machine. The new line was configured to handle many different shapes and capacity of containers for maximum flexibility of fill. During installation and commissioning, Riggs 18
Autopack worked closely with Tracklements engineering department to optimise the line to meet site working practices to optimise the most efficient production speeds. Production Manager Malcolm Hudson comments: “I am very happy to have worked with Riggs Autopack to obtain what I believe is the best production line set-up, and very pleased with the partnership between the two companies.”
FOOD & DRINK BUSINESS EUROPE, JUNE 2014
Future upgrades are also planned to allow for hybrid filling, by introducing a stop-tofill routine allowing the filling of awkward shaped containers which would otherwise be unstable within a conventional conveyor gating system. During the time on-site, Tracklements also asked Riggs to look at upgrading an existing Riggs Autopack filling line supplied six years earlier. This twin head automatic filling line was used on standard glass jar filling operations and regularly ran at around 32–34 jars per minute. Over time, some of the control enclosures and components were in need of attention and the dated pneumatic control logic was at times limiting performance. Riggs Autopack offered to replace all pneumatic switch gears on the filling machine with electric sensors and upgrade the PLC control to meet current standard routines. Tracklements placed an order for this work and within four weeks the line had been upgraded. It is now running consistently at rates of 62–64 jars per minute on their products. Malcolm Hudson further comments: “Tracklements is extremely pleased with the upgrade. The near doubling of production capacity on this line is extremely welcome as we strive to meet an expanding client list and order book. Riggs Autopack upgraded the line within 4 weeks and delivered immediate performance benefits with no unplanned loss of production time; we were very impressed.” For further information contact Riggs Autopack Ltd on Tel +44 (0)1282 440040, Email info@autopack.co.uk or visit www.autopack.co.uk. J
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I WALLS, FLOORS & CEILINGS
Attractive Resin Flooring in Retail usy retail food and drink environments demand a resin floor B that is durable and low maintenance, yet highly attractive to create a positive shopping experience. John Lord offers a range of decorative resin flooring that incorporate an infinitive variety of coloured ‘flakes’ or quartz aggregates to create unique design opportunities. Along with the wide-range of benefits of resin based systems, a gloss finish creates a vibrant speckled effect that is easy to clean and always looks its best, even in the busiest of stores. From small retail bakeries to large supermarket chains the daily footfall demands a flooring system that is hard-wearing that can ensure the safety of shoppers and staff. What’s more, the retail opening times makes it vital for new flooring systems to be installed quickly and efficiently, with guaranteed reliability to prevent any loss of trading time. Recently, John Lord completed a retail bakery in West Yorkshire that was in demand of a new floor to replace the existing tiling, which looked very tired, unattractive and became slippery under foot throughout the day. After consulting John Lord on the best flooring system to use with regards to their specific requirements, John Lord specified their aesthetically pleasing Acrigard FK range. With a variety of flake and resin colour combinations to complement their brand, the bakery chose Storm for the majority of the floor alongside Slate, which was designed into a curved walkway from the entrance. Installed in the evening, the fast curing resin floor allowed the bakery to be open for business the very next day. The result, a very attractive resin flooring that has the ideal properties for customer safety and cleanability. John Lord takes Total responsibility for the installation of resin floors in all retail environments. From floor design, resin floor formulation and substrate preparation, through to cleaning up and advice, John Lord is committed to meeting the unique requirements of every industry it works in. For the best advice and flooring system for your business, contact the technical sales team today; +44 (0)161 764 4617 or enquiries@john-lord.co.uk. J FOOD & DRINK BUSINESS EUROPE, JUNE 2014
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I FOOD SAFE LUBRICANTS
Increased Output and Reduced Costs in Soft Drinks Production n increase in machine reliability and the A improvement of lubrication management practices in order to maximise output in one of their plants was the objective of a globally active soft drink producer when they approached tribology expert Kl端ber Lubrication. One of the plant's seven bottling lines was chosen for the improvement project. Analysis was undertaken and this
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developed a comprehensive lubrication plan. Following implementation mechanical breakdown was reduced, while output increased significantly. Increased Production Output The plant operates on a three-shift system, 24 hours a day. Theoretical filler speed of the bottling line is 24,000 bottles per hour. Prior to consulting Kl端ber Lubrication, utilisation was 55%: 1,760 cases were bottled per hour, equalling 42,240 cases a day. Kl端ber Lubrication went ahead with its proven Kl端berEfficiencySupport package. Within nine months, production loss due to machine downtime was reduced from 7.4 per cent to 2.5 per cent, resulting in a
FOOD & DRINK BUSINESS EUROPE, JUNE 2014
substantial increase of production output: throughput increased to 72 per cent, equalling 2,304 cases per hour, or 55,296 cases a day - an increase by roughly 13,000 cases or 32 per cent a day. The increased production capability enabled rapid response to order and delivery schedules and a reduced unit cost of manufacture. In addition, the number of different lubricants was decreased from formerly 47 to 26, resulting in lower storage costs as well as a reduced risk of lubricant mix-up; all without compromising lubricant quality and standards. Implementation in Practice The comprehensive approach
of
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KlüberEfficiencySupport includes the lubrication of all equipment throughout the entire bottling line. Klüber Lubrication proceeded in several steps. Based on a comprehensive pre-audit, the objectives to be achieved within a time frame of 12 months were fixed. The exact requirements of all persons involved in the lubrication process were precisely defined for the first time. In addition, intensive training sessions on lubrication matters took place. All this resulted in increased lubricant awareness and increased beverage safety.
A comprehensive lubrication plan and a food-grade lubrication regime for all lubrication points was implemented. Oil analyses were conducted as part of preventative maintenance programme. In addition, storage conditions for the lubricants were improved. Klüber Lubrication also with an HACCP audit (Hazard Analysis and Critical Control Points) by implementing only ISO21469 manufacturing site H1 lubricants. Constant monitoring during the adjustment period ensured that all measures were fully implemented and, if need be, adjusted. Conclusion This case illustrates the significant influence lubrication has on the efficiency of machinery. Typical operating cost reductions for a food manufacturing plant can be more than £100,000 per annum. Implementation time for an advanced lubrication program is approximately six months, with payback in nine to twelve months. For many food processors it’s worthwhile to partner with Klüber Lubrication in order to analyse and adapt lubrication management practices to reduce costs and increase productivity. Klüber Lubrication is one of the world's leading manufacturers of speciality lubricants, offering high-end tribological solutions to virtually all industries and markets worldwide. Most products are developed and made to specific customer requirements. During its more than 80 years of existence, Klüber Lubrication has provided high-quality lubricants, thorough consultation and extensive services, which has earned it an excellent reputation in the market. The company holds all common industrial certifications and operates a test bay hardly rivalled in the lubricants industry. J
Typical operating cost reductions for a food manufacturing plant can be more than £100,000 per annum. Implementation time for an advanced lubrication program is approximately six months, with payback in nine to twelve months. FOOD & DRINK BUSINESS EUROPE, JUNE 2014
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I SNACKING
Mondelez International Becomes Leaner With its coffee activities being split off into a joint venture, Mondelez International is focusing on improving profit margins within its remaining refocused snacks business. ondelez International has agreed to combine its coffee portfolio with DE Master Blenders 1753’s coffee business to create the world’s leading pure-play coffee company with revenues of $7 billion (Eur5 billion). Mondelez International’s coffee business generated approximately $3.9 billion (Eur2.9 billion) in revenue in 2013 with an EBITDA margin in the high-teens. The new joint venture, Jacobs Douwe Egberts, is also expected to have an EBITDA margin in the high-teens. Armed with some of the world’s top coffee brands, such as Jacobs, Carte Noire, Gevalia, Kenco, Tassimo and Millicano from Mondelez International, and Douwe Egberts, L'OR, Pilao and Senseo from D.E Master Blenders 1753, the new company will hold leading positions in more than two dozen countries and have a strong emerging markets presence in the $81 billion global coffee category.
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Greater Focus With greater focus and increased scale, Jacobs Douwe Egberts will be able to operate more efficiently and invest more effectively in innovation, manufacturing and market development to capitalize on the significant growth opportunities in coffee. Mondelez International expects the deal
Mondelez International has agreed to combine its coffee portfolio with DE Master Blenders 1753’s coffee business.
Irene Rosenfeld, chairman and chief executive of Mondelez International.
with DE Master Blenders 1753 to be completed in the course of 2015. Upon closing, Mondelez International will receive aftertax cash proceeds of approximately $5 billion and a 49% stake in the new coffee company. The majority of the cash proceeds will be used to expand Mondelez International’s share repurchase program with the balance used for debt reduction and general corporate purposes. About 85% of the net revenues of Mondelez International’s remaining business will be generated from snacks.
which will run from 2014 to 2018, comprises of approximately $2.5 billion in cash costs and $1 billion in non-cash costs. The restructuring program is intended primarily to cover severance as well as asset disposals and other manufacturing-related one-time costs. Mondelez International expects to incur the majority of the program's charges in 2015 and 2016. The $2.2 billion of capital expenditures to support the restructuring program are already included within the company's previous guidance of approximately 5% of net revenues for the next few years.
Improving Margins Mondelez International plans to reduce operating costs at this predominantly snacks business to best-in-class levels through a $3.5 billion restructuring program that is expected to deliver cost savings of at least $1.5 billion by 2018, providing additional opportunity for margin expansion beyond the US-based group’s revised 2016 target of 15% to 16%. The $3.5 billion restructuring program,
Cost Saving of $1.5 Billion Mondelez International expects the 20142018 restructuring program to generate annualised savings of at least $1.5 billion by 2018. Lower overheads and accelerated supply chain cost reductions are each expected to generate roughly half of the total incremental savings. Overhead reductions will be driven by both lower headcount and non-headcount costs. According to Irene Rosenfeld, chairman
FOOD & DRINK BUSINESS EUROPE, JUNE 2014
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Finn technology is used globally to coat almonds, biscuits, brazil nuts, coffee beans, freeze dried products, fondants, ginger, hazlenuts, malt balls, marshmallows, peanuts, raisins, seeds, fruit, toffee balls, wafers and many more centres with white, milk and dark chocolate and yoghurt
Manufacture
Finn Chocolate Belt Coaters and Polishers +44 (0)151 666 1031 Email: sales@dtg-ltd.co.uk Email: lyn.pitt@dtg-ltd.co.uk www.dtg-ltd.com
Representing the very highest in design, development and manufacture of confectionery machines. The professional skilled and dedicated team work with clients to deliver the required result and the very best return on investment.
Mondelez International to Invest £75 Million at UK Confectionery Site Mondelez International is to invest £75 million on upgrading the Cadbury factory and headquarters at Bournville near Birminghamin the UK. The money will be spent over three years and will entail the installation of new production lines and new equipment. The Bournville factory currently produces some of the company’s most popular chocolate, including Dairy Milk, Creme Eggs and Wispas. According to Mondelez International, the investment will focus on improving capabilities, reducing costs and changes to ways of working that will help to close the competitiveness gap between Bournville and its competitors as well as sister factories in Germanyand Western Europe. Since acquiring Cadbury in 2010, Mondelez International (formerly Kraft Foods), has invested more than £130 million in its UK operations. Bournville is home to the company's Global Centre of Excellence for Chocolate research and development site, so every new chocolate product created by the company anywhere in the world starts life at the Birmingham plant. Meanwhile, Mondelez International is investing Eur5 million to expand its Irish chocolate crumb manufacturing plant at Rathmore in County Kerry. The investment programme, which includes the installation of a new milk evaporator, is designed to improve competitiveness by reducing energy costs and
and chief executive of Mondelez International, the strategic and cost-reduction actions will underscore “our determination to become a leaner, more focused and more nimble global snacking powerhouse.” She adds: “These strategic and cost-reduction
the environmental impact of the plant. The chocolate crumb is used in the manufacturing of chocolate confectionery at the Mondelez factory at Coolock in Dublin, and is also exported to the US, Canada and the UK.
actions will strengthen our core snacking business, simplify our operations and enhance our ability to deliver world-class margins. At the same time, our shareholders will continue to share in the future growth of the coffee category through our ownership interest in an advantaged, more focused coffee company.” Snacking Powerhouse Of course, Mondelez International is also a relatively new business, having been created
in October 2012 after being separated from Kraft Foods’ North American grocery business. Kraft Foods had previously substantially increased its snacking business following the $19.5 billion acquisition of Cadbury in 2010. A world leader in chocolate, biscuits, gum and candy, the streamlined Mondelez International, following the separation of its coffee activities, will own seven billion-dollar brands - Cadbury, Cadbury Dairy Milk and Milka chocolate, LU, Nabisco and Oreo biscuits, and Trident gum. J
DT&G Setting the Highest Standards in Confectionery Equipment T&G Ltd of Merseyside, UK is a comD pany with a 50 year history of excellence in the design, manufacture and supply of confectionery equipment. The company’s FINN name represents the very highest standards in Chocolate Coating and Polishing of chocolate confectionery, from the most delicate and smallest products to the largest bite size confectionery. During the Interpack Exhibition in Dusseldorf this year DT&G was honoured to meet so many clients who the company has supplied globally from Mexico, Iceland, Australia, United States, New Zealand, Singapore and many more, all of whom visited the DT&G stand to confirm their complete satisfaction of the machines which are still in daily operation, some of which were supplied 20 years ago, and to admire
the present design and outstanding level of manufacture. DT&G’s policy is to ensure complete client satisfaction and the very best return in investment. DT&G has the most dedicated and skilled team of designers and engineers along with the services of Carl Gillard, a confectionery consultant, to ensure its machines always deliver the required end product. DT&G is continually looking to improve and innovate its technology and is pleased to be working with design and support from Rockwell Automation ensuring client support throughout the world as, DT&G feels, through its marketing communication the same ethos towards clients is reflected. DT&G Ltd Finn has a research and development programme underway which FOOD & DRINK BUSINESS EUROPE, JUNE 2014
will bring a Sugar Coating machine to the market. Due to the very high standard of design and reliability of DT&G machines, confectioners have requested that the company supplies and manufactures Sugar Coaters. DT&G is a company led by the requirements and demands of the confectionery industry and DT&G is pleased to be developing in this way. DT&G Ltd Finn is proud to supply Mondelez and be part of the ethics and business culture they promote. Ensuring the highest quality products in a sustainable and global community. J 25
Flavours Creating New Markets By Collette Gill, PM Group ince ancient times - the Egyptians S used herbs and spices in their food to improve taste. Flavours are typically added to all sorts of foodstuffs and consumer products from snack foods, ready meals and beverages to consumer health products such as toothpaste. The flavours market today is estimated at Eur9 billion and growing at a rate of 5.3% per annum from now till 2018 according to a recent MarketsandMarkets report. The global market is led by North America followed by AsiaPacific and Europe. Growing demand for flavours and in particular natural flavours in developing countries sees Asia-Pacific now as the fastest growing market. Globally the industry is represented by the International Organisation of the Flavouring Industry (IOFI) based in Switzerland. Regulation (EC) No. 1334/2008 governs the manufacture and use of flavours in Europe today. The list of flavours in the regulation includes over 2,500 substances. This regulation is still being implemented on a phased basis. According to the European Flavour Association (EFFA) the flavour industry in Europe employs 10,000 people in 300 companies and many of these are represented by EFFA. Recognised leaders in the global flavours industry are Givaudan, IFF, Firmenich, and Symrise that combined represent in the order of 55% of the international flavours manufacturing market. Growth is coming from emerging markets such as Brazil, India, China, Indonesia and Turkey which is reflected in the current investment in these countries by the main players and others within the industry segment. Market Developments Beverages still dominate the flavours market with dairy on the increase primarily due to innovation and also cross-over that is being witnessed between juices and dairy, and in addition the westernisation of consumers in Asia but in particular throughout parts of China. Health and wellness is a key driver for flavour manufacturing companies today with more emphasis via end-users (their customers) on natural products. Consumers in a health-conscious space 26
are a range of process technologies employed that are matched to the raw ingredients and desired final product. Traditional processes include Powder Blending, Liquid Compounding / Emulsions, Spray Drying and represent approximately 70% of the manufacturing capacities with the remainder typically produced via Distillation type process streams. In recent times this range has also extended to Fermentation and Extraction technologies. Givaudanâ&#x20AC;&#x2122;s new facility in China.
typically want less salt, less sugar but still want to keep those tastes that they love. There is a move away from producing commodity flavours to developing specific flavours in response to client requirements. A direct reaction to this is the growth of specialised R&D type facilities, which are constructed to develop new products and customised flavours. As a result there is an increasing requirement for more flexible supply chains able to make a wider range of batch sizes (in the order of 50kg batches and up to approximately 3 tonnes) but manufactured to the same high quality standards. With business growth, there is likewise a focused regional development of Greenfield and Brownfield manufacturing facility projects. Capital values range from Eur20 million to Eur150 million, with production/distribution space footprints of 4,000 sq m to 20,000 sq m. Market location is often a key consideration in the decision making process for site selection. Trends Three trends common to many food manufacturers today are also prevalent in the flavour industry, namely the growth of emerging markets, the need for greater traceability and finally a supply chain that stands up to the most stringent requirements of audit bodies such as ISO (International Organization for Standardization), AIB International (American Institute of Baking) and BRC (British Retail Consortium). As flavours can be produced in a variety of formats (liquid, powder or pellet) there FOOD & DRINK BUSINESS EUROPE, JUNE 2014
Design Challenges The nature of process technologies used and the wide range of products manufactured at a flavour production facility present a particular set of design challenges. The HVAC and odour extract and abatement systems are critical to meet GMP (Good Manufacturing Practices) and EHS (Environmental Health & Safety) targets for the facilities. Most of the processes release odours and due to the sensitive nature of the final products these odours can easily cause cross contamination. Also the odours must be contained to provide a safe working environment and emissions reduced to within licensed levels. It goes without saying that any facility that must produce a large range of products and order sizes must also focus very carefully on material and personnel flows to deliver a lean design that minimises the operating cost of the facility. Care must also be taken to reduce handling of sensitive ingredients, intermediates and final products to maintain high quality standards of finished products. The flavour industry with its combination of growth potential, innovation and diversity of products is certainly an exciting area to be involved in. As flavour manufacturers react to market place demands, the challenges on design production facilities will increase. An important ingredient to meeting these challenges is a deep and experienced understanding of the needs of the flavour industry in providing tailor made solutions as existing and future project potential is created. Collette Gill is Deputy Food Sector Head, PM Group, the ENR Top 5 ranked international food engineering specialists. J
I INWARD INVESTMENT
Ireland – The Food Island – Attracts Growing Inward Investment Ireland is achieving considerable success in attracting inward investment from overseas companies into its export-orientated food and drink industry, which has already earned a reputation internationally for producing natural and sustainable, high quality ingredients and products. here are currently 40 multi-national corporations, including indigenous and foreign businesses, operating within the Irish food and drink sector, employing a total of 10,000 people. Ireland’s close trading links with the UK is reflected in the presence of eight British companies with over 4,000 employees. Major international companies such as Danone, Pernod Ricard, Coca-Cola, PepsiCo, Abbott Nutrition, Ferrero, Sysco, Mondelez, Aryzta and Nestlé Nutrition are already using Ireland as a base from which to service European or global markets.
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Huge Potential The Irish food and beverage industry offers huge future development potential for both indigenous and overseas companies. Due to the small size of the domestic market, the Irish food and drink industry is highly exportfocused. Food and drink exports were worth Eur10 billion in 2013, with multi-national companies generating about 35-40% of sales. “We produce enough food to feed 35 million people and we have a population of 4 million. So we are completely export orientated,” explains Michael Cantwell, Divisional Manager – Food at Enterprise Ireland, the Government agency tasked with attracting inward investment into the Irish food and drink industry. The Irish Government’s ‘Harvest 2020’ strategic development plan for growing the Irish food and drink industry envisages expanding exports by 50% to in excess of Eur12 billion by 2020.
Quality ingredients and a strong supply chain have attracted three of the world’s top four producers of infant milk formula to choose Ireland as a manufacturing base.
Enterprise Ireland is investing to support companies that are building additional capacity in areas like dairy processing, distilling and consumer foods. In 2013, Enterprise Ireland support helped to leverage over Eur400 million worth of investment in food processing in Ireland, with around one-third coming from multi-national or foreign-owned firms. Advantages of Ireland Ireland offers numerous advantages as a food and drink production location such as a growing base of high quality, sustainable raw materials for food production, and a strong skills base in food technology and engineering coupled with a pool of talented graduates. Ireland has a well developed infrastructure around food safety, quality and sustainability. It also has a low corporate tax regime and a business-friendly open economy geared for international trade. Indeed, quality ingredients and a strong supply chain have attracted three of the world’s top four producers of infant milk formula to choose Ireland as a manufacturing base, from which they supply up to 15% of the internationally traded supply. R&D Capacity The Irish State has invested and continues to invest heavily in an advanced R&D infrastructure – in partnership with industry - to create breakthrough innovation. For example in dairy, Enterprise Ireland has made a significant investment in building capability in the form of Food for Health Ireland (FHI), a pioneering industry-led research collaboration focused on mining of milk for new functional bio-actives with health and nutrition properties. Kerry Group, the global ingredients, flavours and consumer foods producer, is investing Eur100 million to establish an industry-leading Global Technology & Innovation Centre in Ireland. The new facility will employ 900 people. The development marks the largest single investment in food innovation ever by a company in Ireland. Kerry chose Ireland after considering alternative locations throughout Europe. Ireland is also used as a base for providing FOOD & DRINK BUSINESS EUROPE, JUNE 2014
Ireland offers numerous advantages as a food and drink production location such as a growing base of high quality, sustainable raw materials for food production, and a strong skills base in food technology and engineering.
shared services like regulatory compliance, business analysis and financial administration by over 140 global companies, including Kellogg Company, Coca-Cola and PepsiCo. Industry Expansion The Irish dairy industry is currently expanding milk production and processing capacity in preparation for the abolition of EU milk quotas in 2015. Irish milk output is expected to grow by 50%, offering huge potential for new value-added dairy processing in Ireland to feed growing global demand. Ireland’s existing dairy processors are open to partnerships and joint ventures to optimize the value derived from dairy raw materials. Irish whiskey production is another rapidly expanding sector with investment of Eur1 billion projected during the next ten years. Reinvestment “Attracting new companies is a difficult business as we are competing with the rest of the world but we win our fair share. We win about four major projects a year,” remarks Michael Cantwell. “Where we really excel is in the area of reinvestment by overseas companies in Ireland. Once companies come to Ireland, they tend to stay here.” The most recent example is 2 Sisters Food Group, one of the UK’s largest convenience food manufacturers, which has decided to invest Eur30 million into expanding and upgrading its Green Isle Foods frozen food operations in Ireland. J 27
I DAIRY
Dairygold Achieves Record Profits Having achieved record profits last year, Irish dairy co-operative Dairygold is continuing to expand capacity in its core cheese and dairy ingredients manufacturing activities in preparation for the abolition of EU milk quotas in 2015. airygold is one of Ireland’s largest dairy processors. In 2013, Dairygold increased operating profit by 33% to Eur27.3 million on turnover up 15.9% to Eur847 million. The record operating profit was generated after paying a leading milk price and paying Eur7.5 million in year-end bonuses to milk suppliers and trading customers. The overall operating profit including share trading was Eur27.9 million, an increase of Eur7.0 million on 2012. Dairygold’s earnings before interest, taxation, depreciation and amortisation (EBITDA) of Eur45.4 million on core activities were up 19% on 2012. These strong financial results in 2013 increased the net asset value of the business by Eur23 million to Eur274 million.
of expansion.
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Continuous Improvement The strong financial performance was delivered by optimizing the product and customer mix and by the processing and operating efficiencies achieved following investment in the business and continuous improvement over the last number of years. Dairygold’s individual businesses all contributed to the improved financial performance. In addition, strong returns from international dairy markets helped Dairygold deliver a leading milk price to milk suppliers. The 2013 performance continues the strong recent trend which has seen the operating profit on core activities grow by 131% from Eur11.8 million in 2009 to Eur27.3 million in 2013. Dairygold has during this period, invested Eur113 million in the business, while reducing its net debt from Eur77.9 million to Eur60.9 million.
Jim Woulfe, chief executive of Dairygold.
In 2013, Dairygold recorded its highest ever annual milk intake from its milk suppliers of 959 million litres. This increased volume is seen as a good indicator of Dairygold milk suppliers’ desire for expansion, which is projected to increase by approximately 55% to 60%, based on milk suppliers’ individual forecasts. €120 Million Phased Investment Programme As a farmer owned co-operative Dairygold has committed to accept all the additional milk that its members would produce post quota. In order to facilitate the expected increase, Dairygold is undertaking a phased investment of Eur120 million over eight years to incrementally expand its weekly processing capacity by 18.5 million litres by 2020. Dairygold’s three existing processing sites at Mitchelstown, Mogeely and Mallow have capacity for varying degrees
FOOD & DRINK BUSINESS EUROPE, JUNE 2014
Key Milestone 2013 represented a key milestone for Dairygold’s post quota strategy. The strategy envisages Dairygold building its business on a core cheese and IMF ingredients product portfolio, growing incrementally through an appropriately financed modular investment plan which will support both volume and margin growth. A key focus of the plan is the continued development of the enhanced routes to market, including building strategic customer relationships, both independently and in conjunction with the Irish Dairy Board, for the additional dairy products that the incremental milk volumes will produce. January 2013 saw work begin on phase I of Dairygold’s expansion programme with a Eur33 million investment to develop and expand the co-operative’s Castlefarm facilities. Phase II involving the development of the existing site in Mallow is also underway. This will see the development of new state-of-the-art milk drying facilities capable of producing the full range of milk powders, up to and including, infant milk formula. The Mallow development continues Dairygold’s modular approach which aligns expansion with forecasted milk volume growth and separates the proposed investment into a number of phases. Positive Trend Jim Woulfe, chief executive of Dairygold, comments: “The excellent financial results achieved in 2013 represent the continuation of the positive trend of the past number of years. Our strong financial position, combined with a thought out expansion strategy ensures that the Dairygold business is ready for growth. This will be achieved, both organically in a post quota environment and with strategic acquisitions as appropriate. This will be delivered to facilitate our members’ ambitions for expansion, maximise their income, whilst growing the value of the business.” J 29
I SUSTAINABILITY
Rotork Electric Valve Control Contributes to Coca-Cola Enterprises’ Environmental Improvements otork CVA electric control valve actuaR tion technology is helping Coca-Cola Enterprises (CCE) to increase efficiency and reduce energy costs at its Wakefield production plant. CCE has invested over £100 million over the last five years at the Wakefield site, which is the largest soft drinks production plant in Europe, as part of a long term programme highlighting its commitment to local manufacturing and the development of new technologies. Since installing and acting on the information produced by an Energy Monitoring system, the company has so-far reduced electricity consumption at Wakefield by 13% since 2009.
A Rotork engineer demonstrates the improved control valve performance illustrated by the Rotork CVA actuator’s datalogger.
An important part of the plan involves saving the on-going cost of providing and maintaining an instrument air supply for traditional pneumatic control valve actuation. This is being implemented at Wakefield by the introduction of the Rotork CVA control valve actuator to perform modulating and failsafe valve duties. A recent example is on the production line where the adoption of Rotork CVA technology for a demanding valve duty has considerably reduced the cost of energy consumption when compared with traditional pneumatic actuation with no loss of performance. Andy Reynolds, Automation Engineer at
the Wakefield plant, takes up the story: “We were looking for an alternative to pneumatic control valves in order to remove the need for compressed air as much as possible in the area and reduce costs. Based on average air usage of 2m3/hr for a 3” control valve at £0.05 per m3, the running cost would be £870 per annum. The CVA actuator, using an average of 10 Watts at £0.15/kW, would cost £13 for the same period. This represents a minimum saving of £857 per annum per valve, as this figure does not take into consideration any leaks in the system. “Up to now, electrically actuated valves could not respond fast enough to maintain good pressure control in the bottle filling machine. Rotork were confident that their CVA actuator would not only give a similar performance to our existing valve, but would also be cheaper to run. Their confidence was so high they offered us an actuator on a sale or return basis if it did not meet expectations in any way. “To prove this, the performance of the existing pneumatic control valve on the main
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FOOD & DRINK BUSINESS EUROPE, JUNE 2014
These two graphs show the improved positional accuracy of the CVA actuator in comparison with the pneumatic actuator in the production mode.
product feed into the filling machine was first monitored and recorded. Using an adaptor made at Rotork’s facility in Leeds, the CVA actuator was then fitted to the same valve and connected to the existing 420mA control signal from the PLC. “After running and monitoring the CVA actuator in a 24-7 operation for 1 month, the results from the two actuators were compared. The graphs clearly show that in production mode the CVA performs equally well, if not better than the pneumatic actuator. However, when in CIP (Clean in Place) cleaning mode, the performance of the CVA is much better than the pneumatic. This is because the CVA actuator does not overshoot the set point like the pneumatic actuator does when the set point is lower and back pressure in the circuit is higher when in CIP mode.” Commenting on the work at Wakefield, Rotork UK Site Services Manager Ian Elliott says: “We were asked by CCE to improve the production operation, which has been successfully achieved with the added benefit of a reduced reliance on costly instrument air. We are looking forward to the future with this household name company and the opportunity to introduce our innovative products throughout their global operations.” For further information visit www. rotork.com J
These two graphs show the improved positional accuracy of the CVA actuator in comparison with the pneumatic actuator in the CIP (Clean in Place) mode.
I SOFT DRINKS
Coca Cola Enterprises Investing £1 Million a Week in British Operations Coca-Cola Enterprises is investing £52 million in its operations in Great Britain during 2014 taking total expenditure to £227 million since 2011. he four year investment programme underlines CCE's commitment to manufacturing excellence in Great Britain, with a range of innovations in machinery and sustainable production. Coca-Cola Enterprises is, of course, the largest soft drinks producer in Great Britain. Coca-Cola Enterprises employs 4,000 people across its manufacturing sites and depots in England, Scotland and Wales. In addition to its business in Great Britain, Coca-Cola Enterprises is also the sole licensed bottler for products of The CocaCola Company in Belgium, continental France, Luxembourg, Monaco, the Netherlands, Norway and Sweden. Indeed,.Coca-Cola Enterprises is the world's third largest independent CocaCola bottler.
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The production plant at Wakefield is Europe's largest soft drinks factory.
Economic Impact The manufacturing and selling of CocaCola products in Greta Britain adds £2.4 billion to the economy annually, according to independent socio-economic impact research. Every pound of value Coca-Cola creates supports an additional £8 of value being created across GB economy. Furthermore, each job provided by CocaCola supports a further eight jobs across Great Britain – resulting in total employment of 34,500 people. “At Coca-Cola Enterprises we are proud to be a truly local business with 97% of our products made at our six factories across Great Britain,” says Simon Baldry, managing director of Coca-Cola Enterprises. “Our latest funding pledge shows once
again our desire to invest significantly in the most innovative and efficient technologies available. It forms an important part of our long-term strategy to continue to grow our business sustainably and make a positive contribution to the British economy.” Wakefield Factory For example at its flagship production plant at Wakefield, which is Europe's largest soft drinks factory, Coca-Cola Enterprises recently unveiled a new automated warehouse and plans for significant carbon savings from new on-site energy generation as part of £100 million investment over the last five years. The new £30 million Automated Storage and Retrieval System (ASRS) warehouse is a 34 metre high facility designed to hold and automatically move 30,000 pallets. The state-of-the-art facility doubles the site's storage capacity allowing all manufactured products to be delivered to customers directly, saving approximately 500,000 road miles by HGV trucks per year. Also in 2014, Coca-Cola Enterprises plans to introduce a Combined Heat and Power (CHP) system at the Wakefield factory which will save 1,500 tonnes of CO2 a year - a 5.6% reduction for the site. Further investment will include the development of a new production line dedicated to making the iconic contour Coca-Cola bottle in larger PET packaging, including 1.25L and 1.75L formats. At its Sidcup facility, Coca-Cola Enterprises is installing a new high-speed canning line to expand capacity from 57,600 cans per hour (cph) to 120,000 cph. The new line will be the only multi formatted line in Great Britain to produce both 150ml mini cans, in addition to 250ml slim line cans. Sustainability Coca-Cola Enterprises is committed to minimising the environmental impact of its products and operations, with a particular focus on sustainable packaging and recycling, water stewardship, and energy and climate protection. Coca-Cola Enterprises’ goal is to reduce FOOD & DRINK BUSINESS EUROPE, JUNE 2014
Simon Baldry, managing director of Coca-Cola Enterprises.
the carbon footprint of the drink in the consumer’s hand by a third by 2020 by delivering carbon reductions throughout the entire value chain. It is seeking to minimise its climate impacts by reducing emissions, increasing efficiency and changing the way it sources and uses energy. Packaging is the most visible environmental issue, and nearly 50% of the carbon emissions across the Coca-Cola value chain come from packaging materials. The soft drinks giant is working to reduce its carbon footprint by reducing and lightweighting packaging and increasing the content of recycled and renewably sourced materials. The company is also recycling its own waste, and encouraging consumers to recycle more. In 2011, Coca-Cola Enterprises announced a £15 million joint venture with ECO Plastics to develop Continuum Recycling a plastic recycling facility in Lincolnshire capable of processing 150,000 tonnes of mixed plastics a year. The company is making steady progress and it has been recognised for being the best in carbon management by the Carbon Trust at its annual awards, which highlight the leading performers in Carbon Trust Standard certification assessments. Following a rigorous 12 week assessment process across its entire European operations, Coca-Cola Enterprises achieved a score of 95% for carbon performance, the highest score ever awarded by the Carbon Trust. J 31
I DRINKS
Diageo is Britain’s Most Admired Company With its brands continuing to extend their leadership of the global spirits market, Diageo has been named ‘Britain’s Most Admired Company’ for the third time, and for the second consecutive year. he world’s leading premium drinks company topped a peer review of corporate reputation run by leading UK business magazine Management Today. Diageo is one of only two companies to receive the prestigious award three times since 1994. In addition to winning the overall award, Diageo is also ranked as the top company in the beverages sector. First published in 1994, Britain's Most Admired Company Award offers a unique insight into the components of corporate reputation by recognising key factors critical to business success. As well as being awarded the number one spot twice, first in 2008 and then in 2012, Diageo was also placed second in 2011, narrowly missing out on first place by just 0.60 points. To collate the rankings, board level representatives, analysts at leading City investment firms and City commentators are required to rate the other companies in their own sector on nine criteria. The criteria range from the company's ability to innovate and the quality of its marketing to its financial performance and the strength of its management team. Overall, Diageo was ranked in the top ten for five of these criteria (‘value as a long term investment’, ‘financial soundness’, ‘quality of goods’, ‘innovation’ and ‘ability to attract, develop and retain top talent’). Diageo also took first place in all nine criteria for the beverages sector.
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Continued Leadership Ivan Menezes, chief executive of Diageo,
Ivan Menezes, chief executive of Diageo.
comments: “I am delighted that Diageo has been named Britain's Most Admired Company for the second year in a row, and continued our leadership of the beverages sector. I am also immensely proud that we are one of only two companies to have won this highly respected awards three times - it is certainly a huge honour to be recognised by our peers in this way.” He adds: “This award is testament to the hard work and dedication of every single one of our 36,000 employees around the world, not least my predecessor Paul Walsh, who led the company with such great vision; this award is part of his legacy. As I lead the company into its next phase, reputation is absolutely at the heart of our ambition to become one of the world's best performing, most trusted and respected consumer products companies.”
Brand Strength Diageo has increased its leadership of Impact Databank’s Top 100 Spirit Brands Lists, with its brands holding the number one and number two spots in both the value and volume rankings for the first time. For the seventh consecutive year, Smirnoff and Johnnie Walker have topped the rankings, as the number one brands by volume and value respectively. This year, Johnnie Walker also rose from third to second position in the volume ranking, giving Diageo the top spots in both rankings. Smirnoff remains the number two brand by value. Dominant Position Diageo’s brands dominate the rankings accounting for over 13% of the top 100 by volume and almost 23% of the total retail value generated by all brands in the top 100. Diageo claimed five brands in the top 20 by volume and six brands amongst the 22 brands selling over a billion dollar in the value ranking, more than any other company. Syl Saller, chief marketing officer of Diageo, comments: “We are privileged to be the custodians of such an outstanding collection of world-leading brands. Brands with a diverse and rich heritage, created by entrepreneurs and true visionaries like Arthur Guinness, Vladimir Smirnov and Alexander Walker hundreds of years ago. These brands have shown they can endure the test of time, and I am confident they will thrive for many years to come as they continue to be adored by millions of consumers around the world.” Category Leadership As with previous years, Diageo’s brands also lead the individual spirit categories in the rankings. Johnnie Walker and Smirnoff lead the Scotch whisky and vodka categories – the industry’s two biggest categories by retail value – whilst Baileys and Crown Royal also top the liqueur and Canadian whisky categories by volume and by value. Gordon’s also claims first place in the gin category by volume. J
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FOOD & DRINK BUSINESS EUROPE, JUNE 2014
Rinsmatic â&#x20AC;&#x201C; Rinsers, Blowers and Sterilizers volution Bottling and Packaging Solutions supply an innovative E range of rinsing, filling and capping machines as the UK and Ireland partner of MBF. Since 1997 MBF have been at the forefront of the design and manufacture of bottling equipment for wines, spirits, liqueurs, beers, mineral waters, soft drinks, juices and vinegars. Thanks to constant investment in research and development, the Italian company answers to the needs of the market with a complete and modern range of machines and turrets which includes, among others, the Rinsmatic, rinser-blower-sterilizer, with fixed or penetrating nozzle, for glass or PET bottles. Among the strengths of this machine are the systems for rinsing the bottles with hydro alcoholic solutions or with the filling product. Rinsmatic also includes a system for the recovery and recirculation of the rinsing product, blowing with sterile air and the drop suction system at the end of the process to avoid wetting the outside of the bottle. On request, the machine can also be configured for the rinsing of the bottles through solution with ozone. Rinsmatic can be equipped with MBF patented Universal grippers, which work with bottles of different neck diameters and shapes. The pneumatic drive measures the gripping force, extending the life of the gripper and increasing the range of handled bottles. It is ideal also for heavy bottles. The adjustable arm can grab bottle necks with different shape without requiring any format change. The machine can be equipped with Universal Automatic Star, another MBF patent: the bottle change over occurs simply through the selection of the new bottle directly from the management panel, without operator intervention and without having to change equipment. The universal stars significantly reduces downtime of the line, eliminates adjustment errors, increases operational precision even with bottles next to the limits of dimensional tolerances and offers the possibility of introducing new formats on the line. By constantly improving the quality of processes, the aim of MBF is to provide customers with maximum flexibility and operational simplicity. Less time in setting up and in changeover of product/size combined with innovative technology provide greater operational efficiency, thereby improving quality in manufacturing. In addition to working with MBF for all types of rinsing, filling and capping machines, the full Evolution BPS product portfolio also includes PE LABELLERS for all types of labelling machines; TMG for all end of line machinery; Robino and Galandrino for capsuling and wire-hooding machines; Logics and Controls for a complete range of advanced inspection systems. The superior product range combined with the excellent customer service delivered by the team at Evolution facilitates the ability of Evolution BPS to meet a spectrum of customer needs whether an individual machine or a full turnkey solution - www.evolutionbps.co.uk. J FOOD & DRINK BUSINESS EUROPE, JUNE 2014
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I FOCUS ON IRELAND
Irish Agribusiness – Going For Global Growth By David Meagher, Head of Agribusiness for KPMG in Ireland Ireland’s agribusiness sector is a key component of Ireland’s recovering economy. opulation growth and the increase in middle classes are generating significant demand for food globally. OECD forecasts indicate that the global middle class will almost treble between now and 2030 presenting significant opportunities for Ireland. So what are the key issues for Irish agribusiness in the context of such opportunities? Our recently launched all-Ireland agribusiness survey, conducted by KPMG and the Irish Farmers Journal, incorporates the views of senior decision makers in the agribusiness sector across a wide variety of topics including economic outlook, job creation, growth and investment plans, opportunities and challenges and attitudes towards government support.
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Confidence Levels The results of the survey show that the confidence levels are reasonably high within the sector regarding the ability of Irish companies to take advantage of international markets. However, the results also highlight some key challenges for Irish agribusinesses in a volatile and competitive global marketplace, which continues to be driven by a small number of extremely powerful global corporations. Over two thirds of those surveyed are exporters - with the main destination markets being the United Kingdom (69%), Europe (20%), Middle East/Africa (5%) and Asia (4%). A snapshot of just some of the headline results shows that respondents are very positive about their businesses prospects, with two out of every three projecting their businesses to grow in excess of 3% in 2014. The key drivers of growth include growth in global consumer demand; new product launches & innovation, farm investment and developing new
David Meagher, Head of Agribusiness for KPMG in Ireland
export markets. Mergers & Acquisitions Interestingly, only 17% of respondents considered industry consolidation in the form of mergers and acquisitions as very important. Meanwhile 84% of respondents indicated they were planning significant investment in their businesses in 2014 with over half (58%) planning to fund this investment through reinvestment of profits earned and 30% planning to raise bank finance. Of those investing, 50% indicated they would be investing in capital building projects. However surprisingly, only 10% of respondents indicated they were planning to invest heavily in Research and Development initiatives this may indicate a deficit of investment in this key area for the sector. Employment In terms of employment, almost 70% of businesses surveyed are planning to recruit in 2014, with half of those jobs expected to be in the area of sales and marketing. This underpins the prevailing view that attractive markets exist with our respondents
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FOOD & DRINK BUSINESS EUROPE, JUNE 2014
keen to exploit them. The top three challenges cited by respondents were market volatility (43%), overcoming difficult macro economic conditions (25%) and overcoming the power of large suppliers and retailers (17%). Almost 70% of respondents surveyed were satisfied with Government support for the sector and only 8% indicated they were dissatisfied. The areas where Government scored well included supporting R&D; completing international trade agreements; and developing Ireland’s brand internationally. However respondents highlighted that Government could do more to support the industry in areas such as improving access to finance; reducing red tape and streamlining regulatory bodies were all mentioned as priorities. The outlook for Irish agribusiness is generally positive. Ireland has a growing reputation worldwide for producing high quality food and drink products for which there is growing global demand. The opportunities are significant and the challenges exciting. Our survey presents a timely snapshot of how the sector views these issues and what Irish busineses are planning to do to bring Ireland’s exceptional produce to as wide a market as possible. To download a copy of the survey visit kpmg.ie. J
The outlook for Irish agribusiness is generally positive. Ireland has a growing reputation worldwide for producing high quality food and drink products for which there is growing global demand.
I FLUID HANDLING
Packo IMO-Series For Handling Hot Frying Oil Without Problems! acko has designed a new series of vertical cantilever pumps, type P IMO, for handling liquids which are extremely difficult to seal. A typical application is handling frying oil at high temperature, typically at 180 to 200 C. The IMO design is made without any mechanical seal reducing the down-time because of seal failures! Furthermore, the pump type can be installed next to the installation leading to space saving around the installation. Applications for the use of this pump series include: galvanic industry, hot frying oil, powder coating applications, waste water containing
solids or fibres, etc. The pumps are fully made in stainless steel and are finally electro polished leading to less risk of adhesion when handling sticky liquids. The IMO series is available for flow rates of 700 cu m/h at average pressure. The Packo Pumps are produced in accordance to ISO9001 procedures and the production is done in a state-of-the-art factory located at Diksmuide in Belgium. For more information please contact diksmuide@packo.com or visit www.packopumps.com. J
Packo cantilever pump for frying oil at 200 C.
New Verderflex Dura 5 & 7 Peristaltic Pumps Launched he new 5 & 7 models T extend the range of Verderflex Dura peristaltic pumps with 2 new high pressure low volume hose dosing models for handling less than one litre/hour at 5 or 8 bar with a rugged (re-enforced) hose. The range now boasts dosing/transfer rates of up to 12 cu m p/h. The Verderflex 5 & 7 Dura pumps feature an internal hose diameter of 5mm and 7mm respectively. The range as a whole has been specifically designed for the handling of slurry and sludge like fluids such as those found in the treatment of wastewater, additives in to food and beverage mixing, pigments and inks. Key applications include: • Dosing of lime and other chemical solutions in the treatment of wastewater and sewage; • Dosing of sodium hypochlorite for bacterial remediation; • Acidity control/pH buffering; • Delivery of pigment solution in manufacturing. Specifying a Verderflex Dura pump solves or minimizes a range of problems commonly experienced by engineers. For further information contact visit www.verder .co.uk. J FOOD & DRINK BUSINESS EUROPE, JUNE 2014
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LEAN on US
Increase efficiency whilst minimising production risk A fully integrated solution to:
Minimise Production Waste Improve Quality Consistency Achieve Total Compliance Optimise Production Efficiency Drive Sustained Performance Improvement Factory information screen example.
LEAN - SIX SIGMA - RIGHT FIRST TIME from One Integrated MIS / MES System Through the combined use of:
3 3 3 3 3 3
Statistical Process Control Proactive not Reactive Quality Control Operational Discipline Overall Equipment Effectiveness Short Interval Control Instant Visibility
A few of Harford’s hardware options.
Success Story: One well-known manufacturing client reduced materials wastage by more than £0.5 million and, through improved efficiency, reduced labour costs by nearly £2 million per year.
For a free on site evaluation call Harford on +44 (0)1225 764461 www.harfordcontrol.com sales@harfordcontrol.com
I LEAN MANUFACTURING
Lean, Mean and Green – More Than a Survival Strategy For the 21st Century By Roy Green of Harford Control y all accounts there will be 9 billion B mouths to feed across the globe by the year 2050. With predictions like this you could easily believe that Food Manufacturing is a great place to be.
There are more tools available today than there have ever been, to help food and drink manufacturers improve performance, yet little evidence that companies choose the best tools to help themselves. But with ever more mouths to feed, raw materials, labour and energy costs are bound to increase still further so reduced wastage and improved efficiencies across the food supply chain have become key priorities for optimisation. Manufacturers Can Only Control Usage of Materials, Labour and Energy
Increased Operating Costs Without Increased Selling Prices
Today’s food and drink manufacturers, however, often tell a different story. Where a decade or two ago they had limited product ranges with long production runs and they could put up prices when materials and labour costs increased, most now have huge numbers of SKUs, resulting in frequent product/label changes, short batch runs and special offers. They still suffer materials and labour price rises but with little opportunity to increase prices to their supermarket customers. Those that have been bold enough to ask for price rises have, in many cases, either met with a flat refusal or typically been told: ‘Show us what you have done to improve efficiency, then we’ll consider it’. Yet much inefficiency has been created by increased product portfolios, short batch runs and special offers brought about by the success of retailers’ marketing campaigns. As time pushes relentlessly on, it becomes more and more evident that the only hope for today’s manufacturers is to look inwardly to reduce operating costs, continuously improving their value streams, whilst limiting or eliminating non-value-added activities wherever they see them.
What’s often overlooked in the pursuit of excellence is that manufacturers can only influence efficient usage of three things Materials, Labour and Energy. In most cases the prices they pay for each are beyond their control. The only control managers have is in how effectively they use these costly resources. In order to use them more effectively, better information is required.
which often give inaccurate or next to useless information, especially when it comes to root cause analysis. Any student of lean or six sigma will be quick to tell you that you can only control/improve what you measure and if you don’t measure and accurately report upon root cause, you can’t make sustained improvements. Others again have approached cost reduction from a compliance standpoint and installed (frequently under supermarket pressure) automated label verification systems to eliminate coding and labelling errors. “Surely automated label verification is a good thing if it minimises human error?” Of course, but not if, in so doing, it adds cost to the bottom line A Holistic Approach to Control Creates and Sustains Lean
We have proven time and again that lean manufacturing and operational excellence are
Patchwork Quilt of Data
Even where companies have moved away from the dreaded paper chase and computerised, their efforts too often fail to provide an up to date picture of performance. Some have believed that they can do all that is required through their new ERP system, failing to appreciate that these excellent financial management systems are not factory floor information systems and will not, therefore provide the root cause analysis and instant visualisation so essential to drive performance improvement. Others have bought entry level OEE systems, with some impressive top level graphs, FOOD & DRINK BUSINESS EUROPE, JUNE 2014
only commercially viable when based upon accurate real time information from the whole manufacturing process. Only such a holistic approach ensures that ‘one sector improvement’ doesn’t simply shift the problem/cost elsewhere. Lean Manufacturing is only truly sustainable when control of materials, labour and energy has been effectively optimised. That takes a well thought out, integrated approach to data collection and analysis, together with the understanding, training and support to make improvements happen. J 37
Automated OEE reporting solution Capture accurate, real-time information automatically Analyse, interpret and convert data into meaningful information Record speeds, downtime and reason codes without additional personnel Make immediate and quantifiable improvements by proactively managing potential problems Engage employees in continuous improvement by giving real-time feedback and full visibility of factory via LED boards Machine performance information visualised via customisable reports, accessible to view at any time using internet connected device, such as PC, tablet or Smartphone
Cedar House, Sutton Quays Business Park, Sutton Weaver, Cheshire WA7 3EH Tel: 01928 790444 Email : info@autocodingsystems.com Web: www.autocodingsystems.com
I LEAN MANUFACTURING
Increase Throughput and Reduce Downtime With AutoCoding Systems’ Performance Monitoring Solution xperienced systems integrator, E AutoCoding Systems, has over 10 years’ experience in the FMCG sector offering automation solutions across packaging line operations. Their products comprise a proven range of modular applications, from entry level coding and packaging integrity solutions through to complete set-up and control of all packaging line devices, such as coders, barcode scanners, labellers, metal detectors, check weighers and vision solu-
How do you increase OEE?
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tions. The business benefits offered by AutoCoding Systems’ packaging line solutions include increased speed and reliability of line set-up, reduced job changeover time, reduced risk of human error, and the ability to manage packaging complexities. AutoCoding’s performance monitoring solution, facilitating the visualisation of manufacturing KPI data, is a natural extension of the AutoCoding product, but can also be used as a stand-alone solution. Full visibility of the plant can be achieved via LED boards mounted above the equipment. This gives operators, maintenance staff and senior management the necessary tools to take corrective actions to ensure production is kept at optimum capacity. By identifying and evaluating where problems, performance limitations and constraints exist within processing and packaging applications, companies can minimise waste and increase throughput, whilst reducing operational costs to remain competitive. Manually collected data is often FOOD & DRINK BUSINESS EUROPE, JUNE 2014
Manual Data doesn’t accurately represent Actual Performance.
inaccurate and out of date. Automating the collection of production data ensures the data is accurate, reliable and of good quality. This, however, is just part of the solution. Having the ability to analyse, interpret and convert the data into meaningful and useful information is the second stage of the process. The AutoCoding solution provides highly professional reports to display accurate machine performance information. Whether tracking production counts, scrap rates, giveaway percentages, downtime reasons or shift variances etc, the graphical reports intuitively deliver the information needed to make immediate changes to effectively manage production and automatically alert management to potentially damaging situations. J
I LEAN MANUFACTURING
Free Workshop Highlights Need For Accuracy and Reliability in Weighing Technology he need for highly accurate and depend- ing solutions. HBM has a comprehensive Applications can range from static – where T able weighing technology throughout range of products to meet every require- not-legal-for-trade requirements apply – to the food industry will be the focus of ment whether the demand is for continuHBM’s workshop, which is being held on Thursday, 26th June, at the Williams Conference Centre. Every aspect of food production – from determining the amount of grain in silos through to ensuring the exact quantity of wine in a bottle – demands effective weigh-
ous operation in hostile and potentially explosive atmospheres through to very rapid packaging solutions. The event will focus on a number of different applications using HBM products along with discussions on selecting and implementing the most suitable weighing technology. The main presentations will look at the key principles of weighing technology and, in addition, HBM will have a number of different products available. There will also be demonstrations such as displays highlighting filling and dosing equipment. The importance of weighing accuracy in packaging is an important consideration.
dynamic uses that require different weighing technology solutions. Response speed may be critical in ensuring production lines operate at maximum efficiency. Equally, the hygiene constraints of the food and drink sectors demand additional considerations. The load cell is a common device used for weighing and HBM manufactures a wide range of these, each with different characteristics that impact on their suitability for various applications. HBM is setting new standards in terms of accuracy and functionality with its integrated weighing technology solutions with this workshop event being an ideal opportunity for end users to experience the latest trends. The Williams Conference Centre is located on Station Road, Grove, Oxfordshire, OX12 0DQ. J
I EARLY EQUIPMENT MANAGEMENT
Deliver Capital Projects Faster, Cheaper, Better ost managers and engineers have had M firsthand experience of capital projects that failed to live up to expectation when introduced and needed significant attention during routine operation. The excess capital costs of these troublesome assets can be huge. Opportunity costs are high too. One organisation DAK Consulting supported estimated that improvements in capital project delivery, was enough to recoup the original capital investment during the first year. Early Equipment Management
EEM (Early Equipment Management) is a continuous improvement process that will systematically improve your organisations ability to deliver new product, new equipment and new systems in less time with less resource and higher return on investment.
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The goals of EEM are to deliver flawless operation from day 1 and lowest on-going operational life cycle cost. This is achieved through the use of collaborative project processes to capture latent weaknesses as early as possible and prevent problems from progressing past the current step. • Steps 1 and 2 contain activities to Define the correct scope of the project and involve the right expertise; • During Steps 3 and 4 contain activities to tease out latent design weaknesses and
FOOD & DRINK BUSINESS EUROPE, JUNE 2014
enhance project value to achieve a robust Design; • During steps 5 and 6 contain activities to Refine the operational design and develop internal competence. DAK Consulting’s analysis shows that the difference between an “average” and “simplified” design can be worth a 30% reduction in capital costs. The same analysis shows that “complex” designs can increase capital costs by more than double when compared to the “average” design. That alone is enough reason to take care at the design review stage. However, capital costs are normally a small % of the total life cycle costs so the gains from EEM can be worth as much more. Find out more about EEM or DAK Academy’s EEM training workshop 15-17 July 2014 contact Sue at Sue.Catt@DAK Consulting.co.uk, Tel +44(0)1491 845504 or visit www.dakacademy.com. J
I LEAN MANUFACTURING
Idhammar Focuses on Energy Usage Reduction For OEE and CMMS Users educing waste in all its forms (inventory, R downtime, leaks, paperwork etc) through lean manufacturing, coupled with energy saving campaigns such as ‘load shedding’, ‘switch off’, ‘insulate better’, and ‘heat efficiently’, has until now, helped to considerably lower manufacturing costs and increase profitability. However, escalating energy costs consume an increasingly large percentage (a reported 3090%) of operating and maintenance budgets. In the last decade, the industrial price of gas and electricity has shot up 122% and 94% respectively, so whilst Operational Effectiveness is key to meeting business objectives, it is now vital to adapt lean manufacturing approaches towards Production
Effectiveness by rigorously managing energy usage. Underlining this trend, the manufacturers’ advisory organisation EEF, published survey results in 2014 which highlighted that ‘energy management’ is a Board Level concern, with 96% of UK manufacturers going beyond the basics and increasing investment. “What’s clear is that the vast majority of manufacturers that pursue energy efficiency report that it helps them manage their costs and competitiveness,” says Susanne Baker,
FOOD & DRINK BUSINESS EUROPE, JUNE 2014
Senior Climate and Environment Policy Adviser at EEF. Making every second of production count is no longer enough to stay ahead of the competition. Understanding energy usage across the manufacturing process is key to identifying innovative equipment, processes, and product strategy that will improve energy efficiency. Idhammar Systems have been providing world class OEE and CMMS systems for over 25 years and are now well placed to advise manufacturers on how to use these systems to manage energy usage efficiently and reduce their carbon footprint. Contact info@idhammarsystems to obtain a copy of the recent whitepaper: ‘Production Effectiveness: why energy efficiency is a critical element in the compound measure of profitability’. J
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I LEAN MANUFACTURING
Got Lots of Recipe Changes in One Shift? Reduce Your Operational Costs With IBC Blending atcon specialise in providing M Lean powder handling solutions using Intermediate Bulk Container (IBC) technology, for leading manufacturers around the world. Matcon has seen the food industry face many challenges including an ever increasing product portfolio, ingredient diversity, ethnic demands, allergens and more stringent regulations. Matcon’s customers have become more competitive by adopting Lean solutions through keeping production efficiency and flexibility as high as possible, whilst minimising any scrap or waste, thereby reducing the cost per kilogram of finished product. Central to this is the high OEE (Overall Equipment Effectiveness) of the
Matcon IBC Blender. Mixing of ingredients takes place directly within IBCs and because they are filled, discharged and washed ‘off-line’ it means the Blender can be used batch after batch without stopping
for product changeover or cleaning! To improve the performance of IBC blending and make it more versatile, Matcon offer a high shear blending capability with a supplementary Intensifier. This has proven itself invaluable for the Bakery sector in performing single stage blending, giving a reduced cycle time and improved productivity. Within other Food sectors it also enables the handling of sticky powders or liquid additions. Furthermore it means that a homogenous mix can be achieved when blending the smallest of ingredient inclusions; often less than 0.1%. For further information on how the IBC Blender might help you to reduce your operational costs please contact Matcon on +44 1386 769000 or visit www.matconibc.com. J
Ice Age – Small Inverter, Big Impact itsubishi Electric frequency inverter M with stall prevention ensures improved efficiency and performance in traditional ice cream production. Whatever the flavour – a classic such as vanilla, strawberry or chocolate or an experimental flavour such as orange-basil, lime blossom-caramel or sour cream-cress – the important thing is that the ice cream
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parlour will always be able to serve creamy, firm ice cream. It should melt delicately on the tongue without being watery and it should have an intense yet natural flavour. The traditional method of production used by ice cream manufacturers demonstrates true craftsmanship. Special machines are used to ensure the automated production of ice cream of correspondingly high quality.
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Under no circumstances should an unscheduled stop of the ice cream production process be allowed. If the paddle motor were to stop working and disrupt the kneading and freezing process, the dairy product would no longer be fit for use. Additives such as milk and flavourings as well as water and electricity would then be wasted. In order to eliminate this risk, Kälte-Rudi – the market leader in the manufacture of ice cream machines – installed the compact Mitsubishi Electric FR-E700 series frequency inverter in its Diagonal-Freezer®, first of all on a trial basis. The powerful reliable inverter was a great success and not just on account of its integrated stall protection. Following this experience, the company decided to use the Mitsubishi Electric components in its ice cream machine as standard. In addition, the company plans to use the inverter in other machines as well. J
I WATER & WASTEWATER
EUROTEC WTT – Innovation & Sustainability in Water Treatment urotec WTT specializes in the design, E production and installation of water, wastewater, waste and food process treatment plants. Eurotec’s mission hinges on reducing environmental impact, controlling energy consumption, optimizing investment and maximizing the operational cost-effectiveness of each plant. The solutions are unique for each sector, for each type of treatment and for each customer requirement - every plant and every customer is unique. The company has built over 250 plants in Italy and abroad, and over 50% of its customer have purchased more than one plant from Eurotec WTT. The experience and skills acquired over the years, awareness of and attention to energy saving are the strengths of Eurotec WTT and have led to the development of innovative applications in the field of biomass. Eurotec WTT’s impor-
Anaerobic and aerobic treatment plant for a chicken slaughterhouse.
tant know-how in the installation of water and wastewater treatment systems has permitted the implementation of extremely cost-effective solutions in terms of return on plant investment. Eurotec solutions aim to improve the quality of life and the business opportunities of its customers. The company
studies the best solution for each customer’s economic and structural requirements - the solutions are unique for each sector, for each type of treatment and for each customer. Getting things right beforehand makes life easier afterwards! Since 2011 Eurotec WTT has been a member of RWL Water Group, a water, wastewater and waste-to-energy systems integrator founded by Ronald S. Lauder. With more than 4,000 sites installed in over 70 countries around the world, RWL Water has a reputation for superb engineering and fast deployment – all at an affordable price. The company’s core operations are strategically located in North and South America, the Middle East and Europe to provide rapid response through its network of sales, service, technical and engineering professionals worldwide. J
MATERIALS HANDLING
Spiroflow Unveils New Bin Activator For Difficult Materials piroflow is launching a new bin activaS tor into the UK market that will help manufacturers in process industries such as food, beverage, chemicals, plastic and oil and gas to eliminate material flow problems that can lead to potentially dangerous
blockages in factory piping or tubing applications. Incorporating the latest technology, Spiroflow’s bin activator has integral vibrating blades to maintain a steady momentum and minimise bridging. It is exceptionally well suited to ensuring the steady flow of materials that are hazardous, toxic, require sanitary handling or are simply challenging, such as Titanium Dioxide. The blades are fully adjustable for accurate control of solids, while energy is imparted directly into the materials by the vibrating blades to ensure continuous flow. Effective shut–off is managed with close tolerance blades by the discharger control valve and these can be customised by Spiroflow to fit customers’ own specifications. Manufactured in carbon or stainless steel, making the equipment easy to wash down for applications like food processing and FOOD & DRINK BUSINESS EUROPE, JUNE 2014
beverage bottling, Spiroflow’s bin activator is designed to minimise risk in potentially hazardous or explosive environments. Spiroflow is a world-leading manufacturer of ATEX approved conveying and bulk handling systems that meet regulatory requirements for transporting and handling powders and other materials in environments containing a potentially explosive atmosphere, such as chemicals or oil and gas. In addition to bin activators, Spiroflow is also a manufacturer of bulk bag fillers, Flexible Screw Conveyors, Aero Mechanical Conveyors, Tubular Cable and Chain Drag Conveyors, Vacuum Conveyors, Bulk Bag Dischargers, Ingredients Handling and Weighing Systems. For more information on Spiroflow’s products and services visit www.spiroflow.com or call +44 (0)1200 422525. J 43
I HIGH PRESSURE PROCESSING
Delivery of High Volume HPP Innovation Meets Demand By Fresh Juice and Beverage Producers By Tim Hunter, Avure Technologies Incorporated p until about 25 years ago, heat was choU sen as the pasteurization standard because it was practical and easy to apply to large volumes of product. But when heat is applied to juices and other beverages, shelf stability and sterilization come at the expense of flavor, nutrition, and texture.
If applied properly to the product, HPP allows processors to maintain freshness, texture, flavor and healthy nutrients that are vital to good health. The idea of using high pressure to inactivate spoilage organisms was invented more than 100 years ago. High pressure processing, or HPP, applies even amounts of high pressure (usually around 86,000 psi for 1 to 3 minutes) to all sides of a food product in its final packaging, inactivating harmful bacterial such as listeria, salmonella, and E-coli, as well other spoilage micro-organisms, without harming healthy enzymes or removing vitamins. If applied properly to the product, HPP allows processors to maintain freshness, texture, flavor and healthy nutrients that are vital to good health. Today, HPP has become more practical,
cost-effective and accessible to processors. HPP systems manufacturers, such as Avure Technologies, work to drive broad acceptance of HPP, and continue to increase volume and make HPP more efficient and affordable for every food and beverage supplier. From early systems that could process
With the arrival of the Avure 525L-600, juices and other beverages can be processed at a rate of up to 525 liters per cycle, and 10 cycles per hour (translating to more than 4 tons of processing in an hour). only a few liters of product per cycle, to the very latest large-volume Avure QFP 525L-600 system, HPP is more and more attainable for food and beverage processors of all sizes. With the arrival of the Avure 525L-600, juices and other beverages can be processed at a rate of up to 525 liters per cycle, and 10 cycles per hour (translating to more than 4 tons of processing in an hour). With increasing consumer demand for healthy and delicious foods and FOOD & DRINK BUSINESS EUROPE, JUNE 2014
beverages, processors are working to keep up with demand, either with their own equipment or that of HPP tolling service providers who pressure pasteurize their products before distribution. Many food and beverage manufacturers use a combination of both. Along with the high capacity, reliability and low operating costs desirable in HPP equipment options, processors will need food science knowledge, lab services and assistance with HACCP planning, trials and recipe formulations. Avure, the global leader in HPP solutions, provides this breadth of expertise to help processors of all sizes deliver successful HPP products. A short video presentation on the benefits of HPP to juices and other beverages can be viewed at http://info.avure.com/foodbevbiz. To learn more about HPP and the 525L600 from Avure, go to http://info.avure.com/0114FBB525. J
With increasing consumer demand for healthy and delicious foods and beverages, processors are working to keep up with demand, either with their own equipment or that of HPP tolling service providers who pressure pasteurize their products before distribution.
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I DAIRY
New Head For Arla Foods UK as Expansion Continues International dairy co-operative Arla Foods has appointed Peter Gioertz-Carlsen as the new head of its UK business, which is the largest dairy company in Britain with leading positions in milk, cheese, butter and spreads. hen Peter Gioertz-Carlsen takes up his new role as executive vice president for Arla UK on 1 August 2014, he will replace Peter Lauritzen, who has headed the UK business for the past seven years.
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Peter Lauritzen, chief executive of Arla Foods UK.
Peter Lauritzen has decided to step down as an executive vice president and member of Arla Foods’ executive management group and to take a global role within the dairy group prior to his retirement in 2015. Armed with a powerful brands portfolio that includes Lurpak, Anchor and Cravendale – all ranked among the top 100 grocery brands in the UK – Arla Foods UK is the number one in fresh liquid milk, butter and spreads and dairy ingredients and the UK’s largest cheese manufacturer. Arla Foods UK handles over a quarter of the total milk production in Great Britain and is continuing to expand its milk pool by attracting new dairy farmers along with increasing existing supplies. Indeed, the UK business generates a
quarter of Arla Foods’ global revenues and is the international dairy co-operative’s biggest market ahead of Sweden, Germany and Denmark. Arla Foods recently strengthened its UK business by merging with British dairy co-operative Milk Link in 2012. Of Arla Foods’ 12,600 dairy farmer owners about 2,800 are British. Revenue Growth Reflecting the merger with Milk Link, Arka Foods UK increased revenue by 22% to £2.2 billion (DKr19.2 billion) in 2013 as it continued to consolidate its market leaderPeter Gioertz-Carlsen will become the new head of ship positions. Arla Foods UK in August. With Milk Link now largely integrated, a key objective of the enlarged business is to grow its core cheddar and speciality cheese supports Arla Foods’ co-operative philosobusiness. In 2013, Arla Foods UK negotiat- phy of delivering the highest possible ed the biggest cheese contract in its history. returns to its farmers. Since April 2014, the business has started In addition to setting new standards of supplying 30,000 tonnes of cheddar to efficiency in milk processing and renewable retailer Asda, increasing cheese production energy technology, Arla Foods’ UK busiby 50%. ness is also leading the way in sustainabiliAlso during 2013, Arla Foods UK com- ty, particularly in regard to optimising both menced production at its new fresh milk its packaging and the performance of its dairy in Aylesbury, near London. The new transport and logistics activities. one billion litres fresh milk dairy at Aylesbury, which was established at a cost Optimising Packaging of £150 million, is in line with Arla’s ambi- Arla Foods has been steadily reducing the tious UK growth strategy by providing milk to retailers across the South East of England. Aylesbury is the first zero carbon milk processing facility in the world and incorporates the most advanced process and renewable energy technologies. Completion of the dairy at Aylesbury takes Arla Foods’ total investment in its UK business to over £650 million since 2007. As the most efficient, fresh milk processing facility of its kind in the world, the The Aylesbury dairy is the most efficient, fresh milk processing facility Aylesbury dairy directly of its kind in the world. FOOD & DRINK BUSINESS EUROPE, JUNE 2014
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amount of plastic in its packaging. Packaging – Arla Foods UK uses around 800 million plastic bottles every year – is responsible for approximately 30% of the total annual CO2 emissions of the business. Innovation in milk packaging is playing a crucial role in helping Arla Foods UK to achieve its CO2 reduction targets while also improving efficiency and competitive- Arla Foods has invested over £650 million in its UK business since 2007. ness without compromising on quality and functionality. for the new dairy at Aylesbury. The aim is Arla Foods UK is adopting a new envi- to reduce the weight by 20%, while ronmentally friendly bottle, which weighs increasing the proportion of recycled plastic just 34 grammes and contains 15% recy- to 30%. Indeed, Arla Foods has become a cled plastic. The innovative, ultra-light pioneer in the dairy industry for packaging design will ensure a reduction in packaging innovation. weight of more than 3,000 tonnes per year. The bottle is in line with Arla Foods’ Transportation Design-to-Value programme under its Arla Foods UK has also been minimizing Strategy 2017 development plan. The new fuel consumption and optimizing the perbottle, which sets new standards in eco- formance of its transport and logistics activfriendly design in the UK, is an example of ities. It has developed a trailer that incorpohow Arla Foods is endeavoring to lead the rates a raw milk tanker along with a refrigway in the global dairy industry. erated section for carrying finished dairy An even lighter bottle has been developed products. This allows finished products to
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be distributed by the vehicle which can then collect milk on the return journey to the dairy. Twenty of these new combination vehicles were introduced into the UK during 2013 and Arla Foods is examining the potential for adapting the trailer to comply with regulations and standards in other European countries. Also in the UK, a new milk tanker with additional capacity and a faster collection system, which halves the time taken to take the milk from the farm, is now in service. This reduces fuel consumption and the time spent idling on the farm. Arla Foods plans to introduce this more efficient milk tanker model across all its European markets. Meanwhile, the new dairy at Aylesbury in the UK is testing high efficiency trailers for delivering finished products. Arla Foods has also been testing the use of different fuels to reduce emissions. In the UK, it currently operates 11 dual tractors using both diesel and liquefied natural gas, which have cut greenhouse gas emissions by 15% compared to standard models.
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Change Over “After 44 years of working for Arla, now feels like the right time to plan my future retirement,” says Peter Lauritzen. “Working within the UK business has been one of the highlights of my career having overseen the merger with Milk Link and integration of 2,800 British farmer owners into our European co-operative as well as the delivery of the world’s largest fresh milk facility in Aylesbury and other significant investments.” Peter Gioertz-Carlsen comments: “I feel privileged to be able to join the UK team as it’s such a dynamic and exciting market, offering significant opportunities. Contributing over a quarter of our global turnover, the business has already achieved many milestones including its undisputed number one co-operative position in the UK. I look forward to taking the business from strength to strength.” Peter Gioertz-Carlsen will remain as executive vice president for Arla Denmark until he joins the UK business in August 2014. J
Innovation in milk packaging is playing a crucial role in helping Arla Foods UK to achieve its CO2 reduction targets while also improving efficiency and competitiveness.
I RESEALABLE PACKAGING
Easy-Lock by Aplix Becomes a Global Success plix, Europe’s number one hook and A loop producer, tasked itself with developing a reclose system that consumers found easy and intuitive to use rather than requiring the dexterity of a brain surgeon and a degree in engineering. Aplix’s core business was based on just this concept, supplying fasteners for really tough applications from the military to nappies - fasteners that have to perform when your life depends on it - to when you’re juggling a baby, the shopping and an unexpected guest. Aplix used the same rigorous research
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and development process that it uses for all its high-tech and FMCG applications. “Given our experience in such demanding fields such as aerospace and the military we thought packaging would be an easy win,” says Caine Folkes-Miller, Director of Aplix Group. However Aplix soon discovered that with the complexities of FFS machines and high levels of productivity required that task was far from straight forward. Despite the challenges posed, EasyLock by Aplix was launched in 2010 and was an immediate success with consumers with 80% voting it the easiest reclose for the whole family to use. Easy-Lock by Aplix quickly became a global success with applications being launched in the US, Japan, Brazil and consolidated its position in Europe with key market launches with Arla and Kellogg’s. “Our relationship with Arla really changed the game for us, their commitment to innovation matched our own and this led to some great product launches such as Anchor cheddar,” adds FOOD & DRINK BUSINESS EUROPE, JUNE 2014
Caine Folkes-Miller. “It has certainly been an exciting journey for Aplix, seeing our
products on the shelves being used by such major brands has been very rewarding for all involved in the project.” Aplix now intends to capitalise on the features that made the product so popular amongst consumers - namely its excellent sensory feedback. Aplix will be further developing the range and performance after the successful launch of a heavy duty version for heavier packs in 2012. J
I MOBILE RETAIL FIELD SOLUTIONS
Transforming Retail Execution into Selling Opportunities ood and beverage companies are F realising that staying ahead of the competition means they have to
take remedial steps to improve business. Field representatives get access to critical customer and market data and can answer ad hoc questions, quickly resolve issues and improve store performance.
focus on the in-store activities that have an effect on the retailer’s bottom line. They need to have the ability to drive consistent execution, collect timely, accurate and actionable In-Store Selling Power data and sell in more opportunities at The ability to tell a compelling sales point of sale. And, they must do this story using store-level sales is helping within their current time, talent and companies drive more demand, close financial constraints. more orders and sell more in store. StayinFront specialises in developStayinFront recently introduced ing and deploying a full suite of on PitchBook, a powerful selling tool cloud-based mobile solutions for which lets field reps deliver dynamfield management, retail execution ic, customized, data-driven presentaStayinFront TouchCG® Mobile Retail Execution Software. and direct store delivery. Its software tions by integrating store-level and is designed with industry-specific current market data with multimefunctionality that enables field teams to end sales representatives are able to quickly dia. Reps can calculate ROI, conduct “what work more efficiently, access information and easily perform retail activities and col- if” scenarios and show store buyers videos about their customers and market trends lect targeted information. In addition, Arla of the latest commercial, PDFs of upcomand deliver engaging, data-driven pitches in is using the built-in analytics and agile ing coupons and new promotional displays, store. reporting to access and analyse current facilitating faster, more informed decisions. market data and develop strategies to drive Food and Drink Industry Expertise business in store. Staying Ahead of the Competition Particularly active in the food and beverage Phil Burliegh, Controller at Arla Foods - Wayne Gallaway, Managing Director of industry, StayinFront solutions reflect Sales Optimisation Team, explains: StayinFront EMEA, says: “Our software is expertise gained from two decades of expe- “StayinFront EdgeCG and TouchCG specifically designed to help our customers rience, across multiple continents, deploy- offers us the control, flexibility and func- do more, know more and sell more. We are ing retail applications for companies rang- tionality to make a big step forward in our really pleased to be working with high proing from small independents to large global in store activities. The user interface is easy file global Consumer Goods businesses organizations. to use, the analytical power is excellent and such as Arla Foods, who despite very strong Headquartered in Fairfield, New Jersey, StayinFront’s considerable Consumer results are looking to utilise the most StayinFront operates globally and has Goods knowledge made for an easy deci- advanced mobile and SaaS technology offices in the UK, Ireland, India, Australia, sion.” available in the market to stay ahead of Singapore and New Zealand. StayinFront their competitors.” J earned a reputation for deploying on time Driving Sales with and on budget. Recently, StayinFront was Data selected by Arla Foods to deliver greater vis- Standard operational data ibility and insight and help drive continu- and reporting provide ous improvement in its UK operations. details on field activities and what has happened in Maximising Field Activities store, but the real opportuStayinFront Consumer Goods solutions nity is to have actionable help streamline retail activities and reduce data that can be used to administrative tasks. Arla is using the tech- positively affect the outnology to direct and maximise field activi- come of the current sales ties and manage all of its retail execution cycle. needs in house. Using iPad tablets, front StayinFront’s built-in analytics, dashboards and KPIs give management and field reps real time visibility into promotional compliance, product inventory and competitive PitchBook – StayinFront’s Fact-Based In-Store Selling Tool. activities so they are able to FOOD & DRINK BUSINESS EUROPE, JUNE 2014
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I EFFICIENCY & SUSTAINABILITY
Arla Foods Aims to Provide More Nutrition For Less Emissions Arla Foods is continuing to enhance the efficiency of its complete supply chain, from cow to consumer, while reducing its environmental impact. rla Foods has reduced unted to DKr3.05 pr. kilo its total greenhouse gas compared with DKr2.71 pr. emissions by 11% kilo in 2012. since 2005 and is on To maintain returns to its course to reach its target of owners, Arla Foods has to cutting carbon emissions by remain competitive in global 25% from production, transterms through constantly port and packaging, by 2020 improving efficiency. How (compared to the 2005 baseever, enhancing cost effectiveline). Indeed, Arla Foods’ cliness has to be achieved in a mate impact fell over the past sustainable way. year even though the dairy “We can and we have taken group increased production. a stand on animal welfare, cliArla Foods is also committed mate change, sustainability to reducing the carbon footand other environmental print per kilogramme of milk issues. In Arla, we believe that by 30% at farm level, by 2020 by working with sustainable (compared to the levels of Arla Foods has reduced its total greenhouse gas emissions by 11% since 2005 and is solutions, across the entire 1990). To this end, the dairy on course to reach its target of cutting carbon emissions by 25% from production, value chain, we will increase group has recently launched its transport and packaging, by 2020. our competitiveness,” explains Sustainable Dairy Farming Peder Tuborgh, chief execustrategy, focusing on animals, climate, more than 100 countries and Arla Foods tive of Arla Foods. nature and resources. The new strategy has operates production facilities in 11 counFor example, Arla Foods will invest been developed to further reinforce Arla tries and sales offices in 30. Following a DKr2.2 billion (Eur295 million) across ten Foods’ position as a responsible company series of mergers and acquisitions in recent of its dairy sites during 2014 in line with its and to help the group’s farmers with their years, Arla Foods is currently owned by strategic goal of doubling exports of ongoing work around climate, waste and 13,500 farmers from Denmark, Sweden, European dairy products to growth markets animal welfare. the UK, Germany, Belgium and outside the EU by 2017. The expansion Arla Foods is one of the world’s leading Luxemburg. programme includes projects designed to dairy companies and is also the world’s make Arla Foods’ production even more largest manufacturer of organic dairy prod- Efficiency and Sustainability climate-friendly, with more than DKr125 ucts. The company’s products are sold in As a farmer-owned dairy co-operative, Arla million being invested in projects of this Foods’ key objective is type in 2014. to increase profitability As one of the world’s largest dairy proin the business in order ducers, Arla Foods is well placed to be able to generate higher earn- to offer affordable food products with a ings for the group’s high nutritional value with a low impact on owners in the long-term. climate. In 2013, Arla Foods The environmental impact of different delivered the strongest foods has been discussed by researchers for returns (Performance many years. Recent research into sustainPrice) for its dairy farm- able diets is pointing towards taking the ers in its history. The nutritional aspect into account when it Performance Price indi- comes to considering the environmental cates how much value cost of individual foods. Arla Foods was able to generate from each kilo More Nutrition For Less Emissions of milk supplied to the According to a new study from the company by its co-oper- Academy of Nutrition and Dietetics, milk Arla Foods is committed to reducing the carbon footprint per kilogramme ative owners. The 2013 is one of the food sources that makes the of milk by 30% at farm level, by 2020. Performance Price amo most sense to eat when considering both
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Jais Valeur, executive vice president, Global Categories and Operations in Arla Foods.
the nutritional value and the environmental impact. Furthermore, it is a relatively affordable food product that a growing number of people in the world will be able to include in their daily diets. “We believe that our products play a nat-
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ural and important part of a sustainable suppliers of dairy technology. diet. With a growing population, people’s Arla Foods is already committed to access to safe and nutritious food and our reducing its carbon emissions by 25% from use of the earth’s resources will increasingly production, transport and packaging, by be an issue. This development is a business 2020. The recently launched Sustainable opportunity for Arla and its dairy farmers, Dairy Farming strategy will reduce the carbecause we see ourselves as being part of the bon footprint per kilogramme of milk by solution,” explains Jais Valeur, executive 30 per cent at farm level, by 2020 (comvice president, Global Categories and pared to the levels of 1990). “Among Arla’s owners, we have some of Operations in Arla Foods. Milk and dairy products are a core part the world’s most efficient dairy farmers, of dietary recommendations around the when it comes to reducing carbon footworld, because they are affordable and print per kilo of milk. We are now using accessible, rich in nutrients and provide their farm management procedures and high quality protein and many essential vit- our new research in this area, to help and inspire more Arla farmers and further amins and minerals. Jais Valeur points to the fact that Arla reduce our total emissions,” says Jais Foods will be even more foc used on main- Valeur. J taining the heal th benefits of its products, while continuously reducing its carbon footprint per kilo of milk. This will happen thro ugh investments, research and innovation, in co-operation with the best Arla Foods is continuing to enhance the efficiency of its complete supply chain, from scientists and cow to consumer, while reducing its environmental impact.
FOOD & DRINK BUSINESS EUROPE, JUNE 2014
Boix Europe Makes a Difference etherlands-based Boix Europe speN cialises in supplying Boix packaging machines throughout Europe and is a market leader in forming and gluing both corrugated and solid board open top trays. The company is well known for the high quality and reliability of its machines and for its excellent customer service. Headquartered at Eerbeek in The Netherlands, Boix Europe has sales offices in Germany, Russia and Croatia. From these locations it serves 22 countries in Middle, North- and Eastern Europe. Boix Europe’s service network, manned by specialist service technicians, also covers this region. It is essential for food and beverage processors to work with a reliable machine brand in order to optimize productivity and efficiency. The Boix factory, Boix Máquinaria in Spain, produces its own metal parts so that Boix can guarantee a high quality at all times.
Boix Europe is a service-oriented company and invests in developing long-term relationships with its customers. The company’s services include installation of the Boix machines, maintenance, technical support and the supply of spare parts. Boix Europe carries large stock of spare parts at its plant in the Netherlands in order to ensure fast delivery times. A recent installation completed by Boix Europe was for Kanaan, a leading manufacturer of snack products in Croatia, with a market share of over 40%. Kanaan has production plants at Donji Miholjac in Croatia and at Skopje in Macedonia. Due to increased demand for its snacks, Kanaan decided to automate its packaging process instead of buying erected boxes from different suppliers. A Boix Q-1500 automatic tray erecting machine with a maximum capacity of 1,500 trays per hour was selected and successfully installed at Kanaan’s production facility at Donji Miholjac. The Boix machines is now making trays with a bottom format of 60 cm by 40 cm. Kanaan delivers more than 20 different types of snacks to retailers in Macedonia, Albania, Kosovo, Greece, Slovakia, Czech Republic, Bulgaria, Hungary, Bosnia and Herzegovina and Serbia. J
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I LEAN MANUFACTURING
Kellogg Implements Efficiency Programme to Drive Growth Kellogg Company, the global leader in breakfast cereals, is implementing Project K, a four-year efficiency and effectiveness programme, which is designed to be a catalyst for future growth. n addition to being the world’s leading cereal manufacturer, Kellogg is also the second largest producer of cookies, crackers and savoury snacks; and a leading North American frozen foods company. Kellogg is committed to driving longterm growth within its core cereal business and is also seeking to become a global player in snacks following its recent acquisition of Pringles. “We remains focused on four key areas – cereal, snacks, frozen foods and emerging markets. And these areas will receive even more attention as a result of Project K,” says John Bryant, president and chief executive of Kellogg Company.
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Project K Kellogg will use the Project K initiative to identify significant cost savings throughout its business both in North America and globally. The savings will be invested in brand building to stabilise Kellogg’s core cereal business in key developed markets, as well to build its presence in emerging markets. Kellogg expects that this investment will drive future growth in revenues, gross margin, operating profit and cash flow. Project K will deliver estimated annual savings of between £425 million and $475 million by 2018. However, the cost cutting programme will entail Kellogg trimming its global workforce by 7% by the end of 2017. The focus of Project K is to strengthen existing businesses in core markets, increase growth in developing and emerging markets, and drive an increased level of value-added innovation. The programme will provide a number of benefits. An optimisation of supply-chain infrastructure will include actions designed to increase efficiency and improve margins, including the consolidation of facilities and the elimination of excess capacity. For example, as part of its supply
John Bryant, president and chief executive of Kellogg Company.
chain infrastructural changes Kellogg will close its snacks plant at Charmhaven in Australia, expand its Rayong cereal and snacks plant in Thailand, and close its ready-to-eat cereal plant in Ontario, Canada. Project K will consolidate common processes or business services across multiple regions and functions to increase productivity throughout the global organisation. A new global focus on categories will include the continuation of a process designed to create a regional, category-based model. Kellogg anticipates that Project K will result in total pre-tax charges of between $1.2 billion and $1.4 billion; the programme’s non-cash costs are expected to be between $275 million and $325 million.
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Increased Investment Kellogg plans to use the savings generated by Project K to increase investment in its core markets, particularly in the areas of brand building, innovation, and in-store execution. This will include investment in a number of category-leading activities. Investment will also be increased in Kellogg’s developing and emerging markets, which will include brand-building activities, innovation, and investment in infrastructure such as new R&D resources and increased capacity. Additional investment in Kellogg’s global category teams is expected to increase the effectiveness of marketing, innovation, research and development, and brand-related activities. Adapting to Change “The marketplace is constantly changing and evolving and we must adapt,” says John Bryant. “We remain committed to our core businesses and have great initiatives planned that we believe will drive revenue growth and increasing profitability in the years to come.” Launched towards the end of 2013, the programme is progressing well. For 2014, Kellogg expects to achieve internal net sales growth of around 1% with profits projected to be level or rise by 2% at most. “While Project K is just part of the solution, it is important as its will provide fuel for growth over the next four years. We will not only invest Project K’s savings back into the business, but we will also look to improve the effectiveness of our existing investment. Our goals for 2014 are to set realistic targets and to invest back into our categories and our brands. We’ve got a lot of work to do, but we also see a lot of opportunity.” Kellogg will continue to invest in growth in 2015 and plans to accelerate growth in 2016 and beyond. J 57
I SUPPLY CHAIN MANAGEMENT
Arla Achieves Operational Excellence With OmPrompt s the UK’s number one dairy company A and the leading provider of butter, spreads and cheese, Arla Foods makes 4,000 store deliveries a day to food retailers and foodservice customers across the UK, including many products from other leading consumer goods companies. Prior to the implementation of their OmPrompt customer automation management solution, this complexity in Arla’s supply chain resulted in considerable manual intervention in their order-to-cash processes driven by the sheer diversity of
customer operations, IT systems and document formats. For example, Arla’s customer service team received 1,000 manual orders per week by email, spreadsheet, PDF, and fax, which previously had to be manually keyed into SAP, the central ERP system. With the OmPrompt Order Automation service, clean, valid customer orders are now transferred directly to Arla’s ERP system. You can read more about this no-touch process at http://omprom.pt/arlaorders. In logistics support, one customer alone generated 2,500 electronic proof of delivery and goods receipt notes which had to be checked line by line to identify delivery discrepancies. With OmPrompt, Arla is now able to process 100% of the claims with 70% less resource. Additionally 33% of claims are now automatically validated. This has released valuable resources to focus on investigating and resolving claims and understanding trends. You can read more at http://omprom.pt/arlaclaims.
OmPrompt’s customer automation management services were up and running within weeks and allow Arla to automate a range of transactional processes including manual orders, delivery claims and consumer complaints. OmPrompt's solutions are enabling Arla to reduce operational error, release customer contact staff to higher value tasks and increase customer satisfaction. To learn more about how customer automation management might benefit your business you can download the executive briefing at http://omprom.pt/cam15.J
AEB Solutions Optimise Supply Chain Networks he food and beverage industry T is subject to stringent regulations and operational efficiency is of crucial importance to ensure compliance, maintain quality and deliver on-time service to customers. Kellogg Manufacturing GmbH & Co. KG based in Bremen, Germany, trusts in AEB solutions to support its supply chain operations since 2001. Ensuring regulatory compliance and providing for operational efficiency in the area of customs management, ASSIST4 manages Kellogg’s export customs declarations electronically and conveniently through AEB’s own computing centre. Direct interfaces to Kellogg’s ERP system ensure smooth and accurate data transfers for automated generation of customs declarations and applicable documents.
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AEB is one of Europe's leading providers of software and services for global trade and supply chain management, and has been delivering solutions to customers for over thirty years. The company has over 6,000 customers worldwide and is headquartered in Stuttgart, Germany, supported by offices in the UK, Switzerland, Singapore and the US. AEB’s core product - ASSIST4 - is the comprehensive solution suite for all logistics processes in global business. ASSIST4 offers a complete set of business services for end-to-end logistics, including international goods movements, making it possible to standardise and automate business process-
FOOD & DRINK BUSINESS EUROPE, JUNE 2014
es in supply chain execution. AEB’s solutions create transparency and provide a reliable basis for making the right decisions about the planning, monitoring, control and continual optimisation of supply networks, even beyond the boundaries of the business. The ASSIST4 solution suite offers full functionality via a wide range of modules including Visibility & Collaboration Platform, Order Management, Warehouse Management, Transport & Freight Management, Customs Management and Compliance & Risk Management. Further AEB reference customers in the food and drink industry include Sinalco, Sime Darby, Mars Deutschland, Tate & Lyle Food Systems, Storck, Warsteiner, and more. www.aeb-international.co.uk. J
Thomas Hardy Kendal Upgrades End of Line homas Hardy Brewing and Packaging T has been one of the top contract packers of beers, ciders, soft drinks and FABs for many years, offering brewing, blending and contract filling for many leading household brands that are available on the shelves of the major retailers and pub chains. The company’s Kendal plant currently packs around 150 SKU’s, filling over 40 different bottle sizes. With demand from customers for still further packaging flexibility, the decision was made to upgrade the end of line solution to offer both current and future customers new secondary packaging options. Peter Armstrong, Director of Thomas Hardy Kendal, comments: “Many of our customers were asking us for new packaging solutions and so we have been upgrading the wet end of the line here at Kendal for some time. The original Dimac shrinkwrapper supplied by Aetna UK had
packed over 50 million cases for us and had been a brilliant machine but was now ready for an upgrade. “The project was done in two parts. The first was to provide a solution for replacing the old shrink tunnel but, following customer requests, we needed to be able to offer the additional option of registered or printed film for trays or pads. The second phase was to replace the tray erector and wraparound packer within the existing format of the line, which included linking in a direct feed from our existing Mead Clusterpak machine.” David Walkinshaw, Sales Manager at Aetna UK, says: “We have had a long association with Thomas Hardy since the company was established by Peter Ward. We have equipment in all of their sites therefore when we were approached for this project we were of course hopeful that we would be successful in continuing this long association.” David Walkinshaw continues: “As Thomas Hardy are co-packers, the need for high speed changeovers and flexibility is key to their success and profitability. Once the last bottles of one product
are packed out and palletised at the end of the line, the plant aims to change over their various packers and labellers in readiness of the next product coming off the filler. The improved mechanisms on the Prasmatic TC 500 and Dimac Greenstar F that we installed have definitely facilitated changeovers and help the Thomas Hardy team reduce downtime.” Peter Armstrong adds: “Another issue for us at the time of making the decision to go down the Aetna route again was their ability to offer a machine that could accommodate pack sizes as small as 6 x 275ml bottles whilst still being capable of handling 45 packs a minute, and the new Prasmatic TC 500 was able to offer this capability. Overall this has been a great installation for us and although we have an excellent technical team here that are pretty self sufficient, it is always good to know the Aetna UK after sales and service team are there for us should they be required.” J
I APPOINTMENT
Snowbird Expands Technical Team ast developing Snowbird foods has made its first new senior management appointment F since the management bought the company last year. The fully cooked and frozen sausage and meatballs company has named Stephen Collings as technical manager responsible for product safety, legality and quality. Reporting to him are five quality inspectors, a new product development specialist and a specification technologist. Stephen Collings has spent his working life in the frozen meat industry, latterly in senior technical positions with Tulip Foods and the Tranfield Meat Company. He reports to joint managing directors Philip Paul and Albert McGovern. In internal moves Samantha Farrelly has been appointed new product development manager and Otto Antal as specification co-ordinator whilst Lorena Amad Valesquesa has joined the company as quality auditor. J FOOD & DRINK BUSINESS EUROPE, JUNE 2014
Stephen Collings, technical manager, Snowbird foods.
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I DEPOSITORS & FILLERS
Riggs Autopack Awarded Manufacturer of the Year iggs Autopack Ltd is proud to announce they have been awardR ed the highly coveted ‘Manufacturer of the Year’ at the recent Pendle Business Awards. Riggs Autopack design and build depositors and filling equipment primarily for the food production industry. The company manufacture this market leading equipment at their 50,000 sq ft Nelson factory in Lancashire, and supply to a wide variety of food manufacturers throughout the UK and overseas. As an ISO 9001:2008 registered firm with BenchmarQ Gold customer satisfaction accreditation, a member of the PPMA, and a Rolls Royce plc approved supplier, the company has an enviable reputation for manufacturing high quality machinery. Over the years, Riggs Autopack's equipment has provided improved production rates for a large number of businesses. Clients typically range from small start-up companies and cottage industries, through to multi-national food groups and international factories. The food manufacturing industry is not the only sector in which Riggs Auto pack’s machinery can make an impact in however, as they also supply businesses in industries as varied as the pharmaceutical, chemical, automotive, cosmetic, and adhesives sectors. Having previously been voted Industry Excellence 2012 and awarded Company of the Year for an unprecedented 2 years in a row for 2011 and 2012 by Business and Industry Today, this latest accolade demonstrates how Riggs Auto Riggs Autopack General Manager Nigel Matthews pack has continued to (left) and Design Manager Hamid Bassirat (right) go from strength to pictured with the Pendle Manufacturer of the strength. Year Award. The Pendle Business Awards have fast become one of Lancashire’s most prestigious events in the business calendar. It recognises local businesses which are market leaders in their field. They could be a one-man band with a local specialist trade, a growing small to medium-sized business or a large company with a worldwide reputation. Paul Day, Works Manager at Riggs Autopack, comments: “It’s a fantastic achievement for Riggs Autopack and one we are extremely proud of. We need to build on the achievements of the last twelve months and drive the company forward. Winning Pendle Manufacturer of the Year award is a great achievement and our thanks goes out to all of those involved.” Riggs Autopack’s General Manager Nigel Matthews says: “We are delighted to have received this award. It reflects well on the 60
high level of skill and commitment shown by our dedicated work force over the past 23 years in assisting us to become the business we are today.” “Our challenge now is to keep up the momentum and to continue with our future plans for growth in offering our customers the best in depositors and filling machinery. The Pendle area has a strong heritage of manufacturing and we are delighted to have been given this prestigious award, especially in light of the high calibre of entrants and fellow nominees.” For further information contact Riggs Autopack Ltd on Tel +44 (0)1282 440040, Email info@autopack.co.uk or visit www.autopack.co.uk. J
FOOD & DRINK BUSINESS EUROPE, JUNE 2014
I LABELS & LABEL APPLICATORS
Label Printing as Easy as ‘One, Two, Three’ t shouldn’t take an IT specialist and proIproduct fessional designer to print full-colour labels. Especially small businesses, which don’t have a separate marketing and IT department and can’t afford to let the designs be created by design agencies, need a solution that enables companies to create and produce labels on their own without any difficulties and large investments.
Primera Technology Europe, a leading manufacturer of label printing equipment, offers with its Touch’n’Print solution a new all-in-one print solution that makes the process of label designing and printing as easy as counting to three.
And three is also the number of steps customers would have to follow until the desired label is printed: 1 Select a pre-designed label layout. 2 Choose or type in additional content (e.g. best before date, weight/volume, charge number etc.) and graphics (e.g. barcodes, specific food/drink icons such as the Vegan Flower, Fair Trade etc.). 3 Press the “Print” button. All three steps are simply done on the included all-in-one touch screen shuttle PC, no keyboard or mouse necessary. The label is then printed with Primera’s LX900e Color Label Printer. A print resolution of 4800 dpi guarantees a printout in photorealistic quality and enables customers to add vibrant pictures next to texts, barcodes or graphics and still every detail of that label is razor-sharp. Labels can be printed whenever they are needed and in the required quantity. “We plan on test launching our new Touch’n’Print solution at several upcoming shows all over Europe and hope for some great and constructive feedback from the
audience,” says Andreas Hoffmann, managing director of Primera Technology Europe. “We think it’s the perfect product for businesses that would like to become more independent from third party companies such as design agencies or print houses.” For further information visit www.primeralabel.eu. J
Denny Bros – The Multi-page Labels Specialist enny Bros is a specialist printing business and the proud originaD tors of the Fix-a-Form multi-page label. The company’s multipage labels are used extensively in the food and drink industry as the supermarket environment is increasingly competitive and on-shelf presence is key to creating sales. With the rising costs of getting POS material into shops and food outlets, it has become much more critical to build a culture around the brand on shelf with on-pack ideas and the easiest way to make impulse decisions happen is to flag-up intelligent-CRM messaging by using the multi-page label concept Fix-a-Form. Fix-a-Forms are often used by brand-owners to supply additional information or run on-pack promotions which provide the benefit of quick or instant-access information. These custom-built, on-pack marketing devices can boost sales uplifts, some reported to be as much as 25%. Fix-a-Form multi-page labels allow for the communication of large amounts of text on-pack and provide an all-inclusive, informational tool for products, which can include multiple languages, or to make marketing activities work, including cross-brand promotions. Working in synergy with the host pack, the labels eliminate the need for major artwork changes to the original packaging which can be costly and time consuming, especially where short-lived promotions are concerned. J FOOD & DRINK BUSINESS EUROPE, JUNE 2014
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I
POULTRY
Strong Growth by Moy Park Moy Park, Northern Ireland’s largest food company and the leading poultry processor in the UK, has reported an increase in both revenue and profits for 2013. evenue for the year rose by 10% to £1.2 billion and profit before tax increased from £24.4 million to £33.8million. “The business delivered a strong financial performance in 2013 in what were challenging economic and trading conditions and against a backdrop of high commodity input costs,” says Janet McCollum, who succeeded Nigel Dunlop as chief executive of Moy Park following his retirement at the end of 2013. “The company’s performance reflected the great efforts and contribution of the Moy Park team in expanding sales and controlling costs while investing for future growth.”
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Vertically Integrated Moy Park is a vertically integrated poultry group encompassing parent/broiler hatcheries and primary and further processing factories. The company’s ethos is the production of ‘fresh, high quality, locally farmed poultry’. In addition to a full range of chicken and turkey products, Moy Park also supplies other convenience food products to retailers and food service operators throughout the
UK and mainland Europe. The Moy Park brand is well known throughout Ireland and the UK, and the company also manufactures private label products. The Northern Ireland-based group employs over 11,500 people working across 16 production sites in the UK, Ireland, Holland and France. Strong Growth Moy Park achieved strong growth across both retail and food service channels in the UK, Ireland and Continental Europe during 2013. “We were also very pleased that our own Moy Park brand gained further market penetration in Ireland. Moy Park is now Ireland’s leading poultry brand and is purchased by over 50% of households,” adds Janet McCollum. Moy Park is benefiting from the increasing demand for locally sourced poultry from the major supermarkets in the UK and Ireland. “This, together with underlying market growth reflecting the popularity of poultry meat amongst consumers, has enabled Moy Park to increase fresh poultry and convenience foods sales through successfully growing
Janet McCollum, chief executive of Moy Park.
with both existing and new customers,” she explains. “A major part of our success has been, and will continue to be, our commitment to the production of high quality products and striving to exceed customer and consumer expectations through innovation, food development, consumer insight and category marketing.” Bright Outlook According to Janet McCollum, Moy Park is well positioned for continued growth. “In 2014 and in subsequent years our plans are to continue to grow the business through investment in industry leading farming and operational facilities.” The Moy Park chief executive concludes: “Through great people and strong teamwork, the business is focused on the continued improvement of all of our operations in what remain highly competitive markets. In doing so, we will strive to ensure that our product quality, integrity, people and food safety is amongst the best in the industry. Moy Park has been part of Brazil-based global food group Marfrig since 2008 and plays a key role in the parent group’s strategy of expanding its international presence, growing its market share in
Moy Park is the UK’s leading poultry processor.
FOOD & DRINK BUSINESS EUROPE, JUNE 2014
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existing markets and focusing on higher value-added products. Having access to Marfrig’s international sales network and its broad portfolio of products has provided new growth opportunities for Moy Park. Indeed, Moy Park recently became fully responI
sible for Marfrig’s entire European business. Possible IPO However, Marfrig has indicated that it is considering selling stakes in Moy Park and its Keystone Foods business in the
US in order to reduce debt. If Marfrig decides to proceed with an initial public offering, it will maintain a comfortable majority control and will be able to inject additional capital to support more rapid organic growth in Europe and Asia – including the Moy Park business. J
MARKET FOCUS
Growth in UK Biscuits and Cakes Market Despite Rise in Home Baking ccording to ‘Biscuits & Cakes 2014’, a A new Market Update from market intelligence provider Key Note, the combined value of biscuit and cakes at retail in the UK rose by 3.6% between 2012 and 2013. This growth is impressive given the rising popularity of baking from home. The trend for home baking can primarily be attributed to the popularity of television baking programmes such as The Great British Bake Off, the third season finale of which drew an audience of approximately 9.1 million people when it aired in 2013. Yet the growing popularity of baking from scratch
is restricting potential market performance and has been restricting volume sales of biscuits and cakes in recent years. Consumers have realised that baking is fun as well as being a means of guaranteeing what ingredients have been used, as opposed to relying on complex food supply chains for ready-made products at retail. Despite this trend, the size of the market expanded significantly in 2013 based on 64
two factors. The first is inflation, the rate of which continues to rise. While this is continuing to place financial pressure on a large number of UK consumers, performance in the biscuits and cakes market has been fairly resilient, as consumers continue to treat themselves to relatively low-cost items. This has been exacerbated by manufacturers' growing tendency to exploit seasonal product lines, encouraging consumers to buy impulsively based on limited availability. As such, despite the negative effects, inflation has contributed to an increase in market value. The second factor relates to the growing demand for convenience in the UK market. This has been fuelled by two significant innovations, which continue to bolster year-on-year sales. The first is breakfast biscuits, which offer busy consumers the chance to have a quick breakfast on-the-go. Fierce competition in this new category has led to further flavour innovations, which has increased penetration and product awareness. As such, the healthier biscuits subsector - within which these products are included - has expanded rapidly and continues to lead its respective sector. The second is the popularity of individually-wrapped cake slice multipacks, which also provide consumers with a more conveFOOD & DRINK BUSINESS EUROPE, JUNE 2014
nient means of consumption, as well as enhancing product freshness. This has encouraged sales in the individual cakes subsector and limited the negative impact from the declining demand for whole or large cakes. However given the substantial influence of inflation and innovation on this market in 2013, long-term future growth has the potential to be unstable as the market deals with products saturation and increasing competition from rival markets, such as the confectionery industry. Over the next 5 years, inflation looks set to continue rising and as such, Key Note forecasts total market growth of 14.8% between 2014 and 2018. J
I SWEETENERS
Mastering the Art of Natural Sweetness Using Stevia ate & Lyle arms the industry with an T innovative, low-calorie sweetener from a natural source to take formulations from bittersweet to better sweet. Consumers around the world have spoken – ‘Give us fewer calories and natural options without compromising on the taste of our favourite food and beverages’. Tate & Lyle’s award-winning team of formulators has mastered the complex art of natural sourced sweeteners with its TASTEVA® Stevia Sweetener, a high-intensive sweetener from a natural source that delivers a clean, sweet taste at high sugar-replacement levels.
A two-year comprehensive research study led to the design of the optimal steviol glycoside composition with a great taste. Produced from aqueous extracts from the leaves of the stevia plant through a proprietary process, TASTEVA® Stevia Sweetener breaks new ground in natural sourced sweeteners. It reduces sugar without reducing consumer preference, cuts calories without compromising taste and enables the industry to formulate products to meet global consumer demands for naturalness. Finally, food and beverage companies have access to a natural sweetener solution that enables them to give consumers what they want. But even more interesting is how Tate & Lyle has managed to give manufacturers a stevia sweetener with no aftertaste to conceal. The impact of this solution is further
apparent when formulators understand the consumer appeal of this tasty innovation. No Mask Required Achieving a significant superior taste profile over rebaudioside A 97 and other stevia products was one of Tate & Lyle’s primary objectives to ensure a better-tasting stevia solution. TASTEVA® Stevia Sweetener lacks the bitter aftertaste of stevia that 80% of the population can taste. This key attribute of TASTEVA® eliminates the need to use masking ingredients often required in reduced-sugar formulations. The proof is in the testing. In a consumer test conducted by Tate & Lyle’s sensory team, a 50% sugar-reduced tea drink sweetened with TASTEVA® Stevia Sweetener showed equal liking scores to the full-sugar product. Additionally, over 80% of people who tried TASTEVA® in a strawberryflavoured drink preferred it to ordinary refined stevia sweeteners. Natural and Versatile Low-calorie products come in many forms. Therefore, Tate & Lyle’s team focused on achieving versatility to ensure TASTEVA® Stevia Sweetener could be suitable for use in sugar-free, no-sugaradded and reduced-sugar beverages and foods. Across the spectrum, TASTEVA® allows for significant sugar reduction with substantially clean aftertaste – in fact, in some cases, 50% or greater.
systems such as beverages. TASTEVA® provides companies an efficient highpotency sweetness – 200 to 300 times more potent than sugar. Ease of formulation makes TASTEVA® Stevia Sweetener ideal for a wide range of applications including beverages, dairy, baked goods, confectionery, dressings and sauces, frozen foods, table top, processed fruits and vegetables, snacks and cereals. “Tate & Lyle’s commitment to providing solutions to meet customers’ formulation needs has always been the driving force behind our innovations,” says Abigail Storms, Global Category Director, Sweeteners and Beverages at Tate & Lyle. “The availability of TASTEVA® marks a pivotal moment for the natural sweeteners landscape, arming the industry with a game-changing solution.” Further information available at www.tateandlyle.com or www.tastevasweetener.com. J
Formulating Made Easy Tate & Lyle managed to simplify the complex nature of formulating with stevia. The cleaner taste of TASTEVA® enables companies to formulate in ways they cannot with other refined stevia extracts. Its stability in processing and storage over a wide pH range makes it ideal for use in low-pH FOOD & DRINK BUSINESS EUROPE, JUNE 2014
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I SWEETENERS
Scientific Community Gathers to Discuss Health Solutions at International Sweeteners Association Conference istinguished members of the scientific D community, healthcare professionals and representatives from the low calorie sweeteners’ industry, civil society and policy makers gathered on 2 April 2014, in Brussels to debate solutions to critical health issues facing modern societies.
Conference audience at the coffee break.
This year's ISA conference focused on addressing obesity, diabetes, oral health and childhood obesity - health challenges, which have become critical issues in many modern societies. Over one hundred and twenty experts and delegates exchanged views on the latest innovations and research in the fields of obesity, physical activity and appetite, and food choices. Participants and speakers also engaged in discussions about the role and benefits of low calorie sweeteners in tackling global health challenges. Obesity is on the Rise Opening keynote speaker, Dr Roberto Bertollini from the World Health Organization (WHO), informed conference participants that the WHO estimates that up to 50% of people will be obese in some EU countries by 2030. According to the latest WHO data, obesity is on the rise equally amongst men and women and health behaviours have worsened amongst school-aged children. Today 1 in every 3 children aged between 6 and 9 years old is overweight or obese. In response the WHO has proposed a new European Food and Nutrition Action Plan to improve health and governance of 66
health issues and publish Guidelines on sugar intake later in 2014. Prof Colette Shortt, Chair of the ISA, pointed out that obesity and diabetes - two major health epidemics of modern times demanded attention and response from all stakeholders. She explained that much negative and misleading information exists in the public domain - and that the ISA is committed to ensuring the latest scientific evidence is shared with health care professionals, policy makers and the community. Prof Shortt explained that the ISA conference provides an important platform that enables the scientific community to share the most up-to-date and accurate science and information about the role of low calorie sweeteners in a balanced diet. Further, she pointed out that low calorie sweeteners can be part of the solution and help towards reversing some of the negative health trends emerging across the globe. Education One opportunity identified at the conference was the need to create better information and education programmes to help empower people to make informed choices about their lifestyles and explain to them how the choices impact they make their health and wellbeing. It was also acknowledged that communities of health care professionals, policy makers, civil society and the food industry had to work together to drive changes in community behaviour – and that all players had to be involved in bringing solutions. One important development noted was
Prof Adam Drewnowski.
FOOD & DRINK BUSINESS EUROPE, JUNE 2014
The European Food Safety Authority’s Opinion on aspartame, which was published in December 2013. Following a review of all the available scientific data EFSA reconfirmed that aspartame is safe for human consumption. Importantly, the EFSA opinion provides yet more assurances about the role of low calorie sweeteners in a healthy and balanced eating regime.
Prof James Hill.
Sweet Tastes Conference participants were provided with the latest research on how cultural, gender and age impacted on desire for sweet tastes. Interestingly, in her presentation, Prof Hely Tuorila from the Department of Food and Environmental Sciences at the University of Helsinki (Finland) explained that people are genetically programmed and ‘inherit’ a love of sweetness. Further, she pointed out that sweet tastes have a social and psychological in society. While desire for sweet taste is in the genetic structure of humans, how these preferences are expressed varies according to cultures and learned behaviour. It was acknowledged by the many experts who attended the conference that food culture is changing around the globe and that there are significant links between poverty and obesity. In the United States several studies have drawn linkages between income and dietary choices. Prof Adam Drewnowski from the University of Washington explained to delegates that the use of low calorie sweeteners was linked to people who
Dr Hervé Nordmann asking a question during a Q&A session.
were better educated, had higher incomes and who generally had good dietary habits and more active lifestyles. According to data published in the latest Healthy Eating Index, people who use low calorie sweeteners also consume more fruits, vegetables and whole grains in their diets. This suggests that low calorie sweeteners are a proxy marker for other healthy behaviours. Prof Drewnowski pointed out that low calorie sweeteners form part of a constellation of effort on exercise and diet. Alarming New Trend Research shows an alarming new trend emerging across the world - nearly 50% of
people with Type II diabetes are obese. One strategy to address this is to encourage people to make small changes to their lifestyle. A reduction of just 100 calories per day can make a meaningful difference in weight. In his presentation, Prof James Hill from the University of Colorado explained that small changes to the diet could help people to stabilize and reduce their body weight. For example, eating smarter by consuming 5% smaller portions and moving more can make a big impact of body weight. He explained that low calorie sweeteners offer people with diabetes the chance to enjoy sweet tastes without having to worry about the impact on blood sugar levels. Close to €79 billion is spent annually on dental care treatment in the EU. If this trend continues, experts predict that these costs could spiral as high as €93 billion by 2020. According to Prof Eeva Widström, frequent exposure to fluoride, regular brushing, a healthy diet, avoiding snacking all contribute to improved oral health care. Other scientific research shows that chewing sugar-free gum can help protect teeth in a number of ways - and even reduce the incidences of dental caries. Low calorie sweeteners, she said, can be useful in helping to
maintain oral hygiene. Outlook When looking to the future, the ISA sees the emergence of new dietary trends. Demand for low calorie sweeteners is on the rise. Innovations are being made in new blends of sweeteners and more research being done to identify the health benefits of using low calorie sweeteners. A strong body of scientific evidence suggests that low calorie sweeteners can empower people to make smarter, better, more informed choices about improving their health and wellbeing. J
Prof Greg Whyte.
I APPOINTMENT
Cargill Strengthens its Cocoa and Chocolate R&D Capabilities argill’s cocoa & chocolate business has C appointed Willem van der Meijs to the role of Research & Development Manager. In this new role, Willem van der Meijs will focus on new product development and further establish Cargill’s expertise and knowhow around cocoa and chocolate product innovation.
Willem Van der Meijs, who comes to Cargill from Danone’s Medical Nutrition Division, says: “This is an exciting time to join Cargill and help further unleash the great potential of its products and people. We can see the growing need from within
the industry to constantly and rapidly address evolving consumer demand. This is an opportunity for us to share our innovation capabilities and insights in consumption trends. It is our ambition to partner with our customers to help them achieve their ambitions to create, improve and revise their product and service offerings.” In addition, Cargill’s cocoa & chocolate R&D function welcomes Miriam van Wanroij as the new manager in product and process development (PPD), undertaking fundamental, long-term R&D projects, and Barry Doesburg as the manager coatings and fillings within the technical services team (TS), which engages with customers in new product design. Commenting on the step change taking place in the R&D department, Jos de Loor, President, Cargill Cocoa & Chocolate, says: “The appointment of Willem van der Meijs, along with the other new colleagues demonstrates the resources Cargill’s cocoa and & chocolate business is putting into R&D in Europe. We have an unwavering FOOD & DRINK BUSINESS EUROPE, JUNE 2014
focus on supporting our customers and transforming our knowledge into applied expertise to meet their challenges.” J
Willem van der Meijs.
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PureCircle Reduces Carbon Footprint Intensity 15% ureCircle, the world's leading producer P and marketer of high-purity stevia products announced today it has cut the carbon footprint of its products by 15 percent since last year and is now a quarter of the way to its 2020 carbon footprint intensity goal. PureCircle Director of Corporate Sustainability, Ajay Chandran explains: “This is the third carbon footprint we’ve completed across our supply chain from farming to extraction and purification. The footprint reduction shows the rapid progress we’re making towards attaining our 2020 goals of carbon intensity reduction of 20 percent.” The company has been able to achieve carbon reduction by continuing non-carbon intensive farming and processing practices, optimising production scale and developing innovative products. As a result in the most recent fiscal year, PureCircle sold enough stevia to enable the food and beverage industry to eliminate close to 40,000 MT of greenhouse gas (GHG), which is the annual equivalent of removing 7,000 cars from the road. Ajay Chandran continues: “The exciting thing is there’s a real impact when using PureCircle stevia in a product reformulation - say for instance a 30 percent reduced-calorie beverage. Based on BIER (Beverage Industry Environmental Roundtable) industry research, natural caloric sweeteners are the second biggest driver of emissions outside of packaging. In a 30 percent reduced-calorie, naturally sweetened beverage, PureCircle stevia can have a carbon footprint one-quarter or less than benchmark sugar standards. Therefore using stevia to replace other natural caloric 68
sweeteners has an impact not only on the carbon footprint but also the calorie footprint.” Carbon Footprint The PureCircle carbon footprint was calculated following the GHG Protocol Product Standard – the foremost methodology for product lifecycle analysis of carbon emissions. Elements of the GHG protocol through World Business Council on Sustainability Development and World Resource Institute methodologies were also applied to ensure the methodology met the
highest standards possible. To ensure transparency, a third-party organisation was employed to calculate the carbon footprint. Calculations were computed by Verco, a leading independent carbon footprint expert. The footprint was further peer reviewed by a foremost environmental impact expert, Marcelle McManus, Ph.D., University of Bath, U.K. Briefly, PureCircle’s 2020 goals are to reduce its carbon intensity by 20 percent from its 2011 baseline and enable a cumulative reduction of the food and beverage industry’s: • Carbon emissions by 1 million metric tons; • Water consumption by 2 trillion litres; • Calories in global diets by 13 trillion. FOOD & DRINK BUSINESS EUROPE, JUNE 2014
The 2020 goals serve as an important next step in PureCircle’s sustainability journey, following the company’s publication of its Sustainability Commitment in 2011 and first Carbon and Water Footprint in 2012. Global Leader PureCircle leads the stevia industry with development of a vertically integrated, sustainable and natural supply chain. Stevia is grown for PureCircle across South America, Africa, Asia and the United States where it provides a sustainable cash crop for farming communities. PureCircle has developed a broad portfolio of ingredient solutions and has pioneered such ingredients as Reb A, SG95, and breakthrough proprietary ingredient PureCircle Alpha, as well as PureCircle Flavors. PureCircle has also established joint venture partnerships with sugar industry leaders to innovatively combine stevia and sugar for natural sweetening solutions and locally support customers. These global partnerships include Tereos PureCircle Solutions, with Tereos, and NPSweet with Nordzucker in Europe. As part of its industry leadership, PureCircle pioneered the trust mark Stevia PureCircle®, which educates consumers about the benefits of stevia and provides a strong base of trust for both consumers and food and beverage companies alike. The company also founded The Global Stevia Institute, the leading resource for accurate, science-based information on stevia led by a global advisory board of internationally recognised health professionals. PureCircle’s global headquarters are in Kuala Lumpur, Malaysia. For further information visit www.purecircle.com. J